What is a blockchain and what’s blockchain technology? Explained to your grandmother before explaining it to you.
Explained to your grandma:
Picture you and your four closest friends all possessing a notebook. These notebooks are unique as they document every significant transaction or occurrence that takes place within your group. Whenever a person makes a purchase, lends cash, or simply comes to an agreement, all of you record it in your notebooks simultaneously. However, the guideline is this: prior to any writing, all must concur that it truly occurred.
Currently, every page in your notebook symbolizes a block and the whole notebook a blockchain. When a page is complete, it’s sealed, and you proceed to the next one. However, there’s a twist — each subsequent page includes a distinct reference to the prior one, resembling a unique stamp that connects them. If a person attempts to secretly modify an outdated page, the link gets disrupted, and everyone quickly realizes that something is amiss.
Even if one of you misplaces their notebook, it’s fine since everyone else maintains the identical record. This ensures that no individual can dominate or influence the records. It’s a system founded on trust, but it doesn’t rely on trusting a single individual — since the entire group ensures integrity.
That’s the essence of blockchain: it functions as a shared, secure, and immutable method for recording information. Rather than depending on a single authority, the whole network of contributors guarantees that everything remains equitable and clear.
Explained to you:
Blockchain is a decentralized, distributed ledger technology that records transactions in a secure, transparent, and tamper-resistant way. Each record (or transaction) is stored in a block, and these blocks are linked together in chronological order to form a chain — hence, blockchain.
What makes it powerful? Three key things:
- Decentralization: Unlike traditional databases controlled by a single entity (like a bank), blockchain runs on a network of nodes (computers) that maintain identical copies of the ledger. This removes the need for intermediaries and makes the system more resistant to manipulation.
- Immutability: Once data is recorded in a block and added to the chain, it cannot be altered. This is enforced through cryptographic hashing, which ensures any change to a previous block would invalidate all subsequent ones.
- Consensus Mechanisms: Transactions aren’t added to the blockchain randomly. The network follows specific rules (like Proof of Work or Proof of Stake) to agree on which transactions are valid. This ensures security and prevents fraud.
Blockchain isn’t just about Bitcoin. It’s revolutionizing industries like finance, supply chain management, healthcare, and even digital identity verification. The idea is simple: trust the system, not a single authority.
If you are still confused but on a higher level, I’ll recommend you some youtube videos, here you go:
In the next blog, I’ll been diving into the use cases of blockchain technology.
