Explaining Blockchain Technology to Layman

Imagine two friends living far away and would like to transfer money using blockchain technology

The blockchain is a decentralized system of secure and trusted distributed databases

Which records and shares the transaction details across many nodes(computers) so that the data is not modified

Note: Blockchain was introduced to timestamp digital documents and prevent tampering of records.

In simple terms, a chain of blocks that contain information is called blockchain

When a transaction occurs, its related information is recorded into a block

What is Blockchain technology?

Blockchain is a distributed database of immutable records called blocks, which are secured using cryptography.

Note: Once the data is recorded in a blockchain, it cannot be modified.

What is a block?

A block is a record book which contains the details of transaction data. It consists of,

• Hash of previous block: It holds the hash value of the previous block.
• Transaction data: It contains the details of several transactions. Nonce: A nonce is a random value which is used to vary the value of hash.
• Hash: A hash is a alphanumeric value which is used to identify a block.

Blockchain is revolutionizing the World

• Decentralised computing:

The leasing out of CPU or storage in return for rewards issued in the form of a token.

• Finance:

Instant and secure payments without the need for any financial institution.

• Citizenship:

Identification information can be stored on the blockchain

• Smart contracts:

A contract where execution is guaranteed once certain criteria has been met. This occurs without the need for a third party.

• Advertising:

Advertisers can connect with users who have a keen interest in their products and services, and in return, reward the user with tokens.

• Medical:

A blockchain for health records, which speeds up applications and medical procedures