So you want to learn all about this Blockchain Craze going on 😎 huh ?
No Problem, we are here to shed some light on this for you. Let’s start by understanding what Blockchain is?
Ok, so here is what you need to know!
“The practical consequence […is…] for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.” — Marc Andreessen, American entrepreneur, investor, and software engineer. He is the co-author of Mosaic, the first widely used Web browser; co-founder of Netscape; and co-founder and general partner of Silicon Valley venture capital firm Andreessen Horowitz.
Let’s try and understand Blockchain like this:
So, when you vote have you ever wondered whether your ballot is actually counted?
If you meet someone online how do you know they’re who they say they are?
When you buy coffee that’s labelled fair trade what makes you so certain of its origin?
To be sure really sure about any of those questions you need a system where records could be sorted, facts can be verified by anyone, and security is guaranteed. That way no one could cheat the system by editing records because everyone using the system would be watching. Systems like this are on the horizon and the software that powers them and it’s called a blockchain.
- Blockchains store information across the network of personal computers, making them not just decentralised. This means no central company or person owns the system, yet everyone can use it and help run it. This is important because it means it’s difficult for any one person to take down the network or corrupt it.
- The people who run the system use their computer to hold bundles of records submitted by others, known as “blocks”, in a chronological chain.
- The Blockchain uses a form of math called cryptocurrency to ensure that records can’t be counterfeited or changed by anyone else.
You’ve probably heard of the blockchains first killer app: a form of digital cash called Bitcoin that you can send to anyone, even a complete stranger.
Bitcoin is different from credit cards, PayPal, or other ways to send money because there isn’t a bank or financial middlemen involved. Instead, people all around the world help move the digital money by validating other’s Bitcoin transactions with their personal computers, earning a small fee in the process.
Bitcoin uses the Blockchain by tracking records of ownership over the digital cash, so only one person can be the owner at a time and the cash can’t be spent twice, like counterfiet money in the physical world can. But Bitcoin is just the beginning of Blockchains.
In the future, Blockchains that manage and verify online data could enable us to launch companies that are entirely run by algorithms, make self-driving cars safer, help us protect our online identities, and even track the billions of devices on the Internet Of Things. These innovations will change our lives forever and it’s all just a beginning.
Hope you liked this simple explanation of Blockchain for non tech people and also anyone who has been hearing about Blockchain everyone. If you liked this, please, hit the ❤ button below.