Blockchain Debunked!

As a web3 enthusiast, I know you've come across the word "Blockchain" on several occasions.

In fact, while you stay consistent in the world of web3 and crypto, you will encounter multiple mentions of the same word almost everyday. Maybe in your sleep too, like me...

But what really is this term and why is it special? That's exactly what we will cover here. Now...

What is Blockchain?

Simple, it’s a series of concrete blocks tied together by a gigantic caterpillar chain. Yup, that’s blockchain.

Oh, wait…that's absolute nonsense. My bad I didn’t realize I was already on camera. Let’s try that again.

Have you ever taken records of your transactions?

Bagged that Nike Air killer wear at $599 while returning from the park. Tipped the waitress $20 for a smooth service, and managed to get everything on paper, nicely documented.

That's what banks do. They keep records of every bit of financial transaction in what's called a financial ledger.

Now, imagine taking that ledger, making it digital, and sharing it with everyone involved—except it’s super secure, and no one can mess with past records. That’s the idea behind blockchain.

In short: It's a record.

In this case, a blockchain is a record of transactions made in the world of cryptocurrency. Practically, imagine when Peter withdraws some USDC token from his crypto wallet to go touch grass or..transfers a percentage of his Bitcoin to my wallet lol.

Each of these transactions from withdrawal to transfer are stored in a blockchain, permanently. But here's the fun part: it's stored as a block - which brings us to a quick review of the words "block" and "chain"

Block: is the form the data takes when stored. Think of it like a digital box of information.

Chain: is what links all the blocks together forming an unbreakable connection

So, whenever a transaction is executed...be it sending crypto to a friend, paying for coffee, or hypnotizing Peter into a Bitcoin donation, it takes on a block-like form, gets stored, and links up with other pre-existing blocks via chains.

Hope that wasn't too much to take in?

Essentially, that's what a blockchain is: a chain of blocks. Not too hard right? So now we get it. A blockchain stores crypto transactions and yada yada.

But wait, what then makes a chain of blocks special?

Well, a lot makes a blockchain special, and to mention a few:
➟ Decentralization
➟ Transparency
➟ Security
➟ Immutability

Don't sweat it. We gonna dig deeper into these features in a bit. But first? sip some water.

Alright let's dive in.

Decentralization: In blockchain, instead of trusting one central authority (like a bank or exchange), control is spread out among multiple systems, or nodes. That way, no single party has full control, making it more secure and resistant to failure.

Transparency: In the blockchain world, everything is open for anyone to see. Every transaction that happens is recorded on the blockchain and can be viewed by anyone in the network.

It’s like the most honest record keeping ever where no wrong dealings can hide.

Security: Security on the blockchain is top-tier. Every transaction is encrypted and linked to previous ones in a way that’s nearly impossible to break.

It’s like trying to break into a vault that’s been guarded by a thousand lasers and an army of K-9s.

Immutability: Once something’s written on the blockchain, it’s there for good. You can’t go back and change it.

This is huge for ensuring that no one can alter the history of transactions, making blockchain the most honest record-keeping system.

To complete it's divinity, let's compare the traditional banking system the blockchain system side-by-side.

Now, don’t get me wrong, the fiat/traditional system has its perks, and it has been the backbone of financial systems for centuries. But when we really fact-check it against blockchain’s powers, some of its flaws start to show such as:

➟ Zero transparency(banks control everything)
➟ Centralization
➟ Zero immutability(transactions can be altered)
➟ Poor security and many more.

We could dive deeper into the comparison but hey, I'm afraid I can't. Scared the CBN president might show up in the middle of my sleep for sparking an anti-fiat movement of web3 cultists.

Maybe I'll make that deeper comparison on the next article after I've signed my will(oh gosh, now I've gotta get a lawyer lol). But yea, that's it.

A basic, edible explanation of "Blockchain".

What did I miss? Think it covers the essentials?