Blockchain for Dummies: Part 1
Unchaining the complex for non-techies
Blockchain. The beloved buzzword now used by most CEO’s, crazed investors and my grandparents — but what exactly is blockchain?
You’ll hear phrases like “ THE Solution!” or “The Next Internet!” — but is it a hyped word or a revolutionary solution?
Let’s dive into it.
An overly simple breakdown of blockchain: a block and a chain. Each block contains a list of records and many blocks linked together create a chain.
Okay, so what are these records? Records are anything that document a transaction of any economic value e.g transfer of money.
That’s it? So what makes blockchain unique? Here’s where it get’s interesting. A blockchain operates as a decentralized and distributed ledger. Decentralized meaning, well, a lot of things: inclusive participation (anyone anywhere can join), efficiency (no middle man) and a consensus (everyone must approve transaction). Each transaction is distributed across a network of independent computers, also known as nodes. And finally the Ledger being a recording of all transactions. Together, these elements create a recording system that is non-corruptible: transactions cannot be modified or deleted. See Figure 1 below.
In the next article we will discuss who makes up this network, why its decentralized and if it really is unhackable.
Hope this helps!
Cheers,
Camille
