Blockchain for babies
Think of blockchain technology as a shared, public ledger, much like a potluck dinner. In a potluck, each guest brings a unique dish to share, and everyone can verify who brought what because they’re all at the same table. The blockchain works in a similar way, but instead of food, people share digital information.
Now, imagine a book club where every member has their copy of the same book. It’s easier to trust the words in the book because everyone can cross-verify the content from their copy, right?
That’s precisely how blockchain works – with every participant having a copy of the entire blockchain, fraud or misinformation becomes nearly impossible.
Each time a new transaction happens (like sending or receiving cryptocurrencies), it’s like a new chapter added to this book. It’s essential to mention here that this book (the blockchain) is unique.
Once a chapter (or a block of transactions) gets added, you cannot alter or remove it. This quality of permanence makes blockchain trustworthy and secure.
We hope our explanation of blockchain for babies has given you a better understanding of this revolution.
Vitalik Buterin, who we talked about in our Crypto Titan series, is one of the pioneers who capitalized on this technology to create Ethereum.
In the same series, we also discussed how CZ leveraged the trustworthiness of blockchain to build his crypto exchange, Binance.
The brilliance of blockchain technology lies in its simplicity and transparency. Just like the potluck dinner or the book club, everyone involved can see and verify the transactions themselves, removing the need for a central authority.
This decentralization is a driving force behind the success of individuals like Brian Armstrong, the CEO of Coinbase.
