Simply, What is Blockchain?
‘If you cannot explain it simply you do not understand it’; in layman’s language I am going to explain what Blockchain is. First, we consider two basic terms i.e. Bitcoin and Blockchain
- Bitcoin is digital money
- Blockchain is the technology that enables the movement of digital money from one entity to another.
By this we understand that bitcoin is not blockchain, rather bitcoin runs on blockchain.
Blockchain attempts to solve some problems that are in our traditional way of doing things by using various principles that we will consider one at a time:
- Money Transfer. Blockchain is an open public ledger distributed across a network of nodes so that everyone can see all the transactions and nodes validate them. It is distributed and exists in many nodes i.e. (each ledger has its copy of transaction or chain of events) on the network thus removing dependency on any third party.
Lets keep in touch as we discuss the rest of the principles.