What is blockchain? How does it work in practice? A simplified Explanation
alok1 (40) in cryptocurrency • 2 hours ago
Hello Friends,
My today's article is for those who are new to the crypto world and are yet confused-what blockchain is and how it works? Here is an article I found on the web that explained it in a very simple way.
What is Blockchain?
Currently, most people use a trusted middleman such as a bank to make a transaction. But blockchain allows consumers and suppliers to connect directly, removing the need for a third party. It uses cryptography to keep exchanges secure and provides a decentralized database, or “digital ledger”, of transactions that everyone on the network can see. This network is essentially a chain of computers that must all approve an exchange before it can be verified and recorded.
How does it work in practice?
In the case of Bitcoin, blockchain stores the details of every transaction of the digital currency, and the technology stops the same Bitcoin being spent more than once. for a simple explanation check the image below.
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Why is it so revolutionary?
The technology can work for almost every type of transaction involving value, including money, goods, and property. Its potential uses are almost limitless: from collecting taxes to enabling migrants to send money back to family in countries where banking is difficult.
Blockchain could also help to reduce fraud because every transaction would be recorded and distributed on a public ledger for anyone to see.
Hope you liked it. Do share comment and upvote.