🔗🔗Understanding Blockchain: A Beginner's Guide🔗🔗
Imagine you have a notebook where you write down every single transaction that happens in your group of friends. For instance, when Alex lends $10 to Jamie, or when Jamie pays $5 to Taylor.
This notebook records every transaction so that everyone knows who owes whom and how much. Now, imagine that instead of just you keeping this notebook, everyone in the group has a copy of it, and whenever a transaction happens, it gets recorded in everyone's notebook simultaneously. This way, no one can cheat or change the records because everyone else would see the discrepancy.
This, in essence, is how a blockchain works. But let's dive a bit deeper into the details.
❓What is a Blockchain?❓
💸A blockchain is a digital ledger that records transactions across many computers in such a way that these transactions are secure, transparent, and cannot be altered. Here are the key components:
1. Blocks: Imagine our notebook is divided into pages. Each page is a block. A block contains a list of transactions.
2. Chain: These blocks are linked together, like the pages of our notebook being glued together. Each block is connected to the previous one, forming a chain. Hence the name, blockchain.
3. Decentralization: Instead of a single person keeping the notebook, everyone in the group has a copy. This means no single person has control, and everyone can see the transactions.
4. Security: Each block has a unique code called a “hash” and also contains the hash of the previous block. If someone tries to change a transaction in one block, it would change the hash, and everyone would immediately notice because the hashes in their notebooks wouldn’t match.
#BlockchainLifeAwards2024 #informationuseful #LearnTogether #EducationalContent
