This new revolutionising wave famously called web 3.0 is all around the internet. Everyone is talking about bitcoins, cryptocurrencies, blockchain. But you might be wondering what the heck blockchain is? In this blog post, i will try to explain blockchain in very basic terms which even a 5 year old can understand. Slowly as you will proceed reading I will increase little bit complexity.
Blockchain Technology basically helps in Trade. Because of this technology, you can trade with anyone around the globe, without knowing about him personally and without any intermediate party (like banks or other companies).
For eg: Let’s say you want to sell your smartphone. Currently you will use platform like ebay which acts as an intermediate between you and the person to whom you want to sell. The payments might be processed via some bank which will cost you or/and the other person some money. Now because of blockchain, you will be able to sell your smartphone to that person without actually involving ebay or any other bank in between. That’s blockchain explained on very basic level.
Lets level up a bit. Blockchain is basically a network of computers called nodes which all have same history of transactions. So instead of one company or a database which holds all the information, now the information is spread across whole of the network. Whenever a transaction occurs, that is validated by everyone and is put ahead in that history of transactions in that network. All the transactions are encoded using a technique called cryptography.
Please note that blockchain is not only about Bitcoin. Because it is in news all over, people think blockchain means bitcoin. Bitcoin is simply a digital currency which is build using blockchain technology. There are many use cases being build over which we can basically trade any asset using blockchain.
Well this was a very basic surface level, small drop idea from a vast ocean of depth of technicalities in blockchain. But I hope you got to know very basic idea about this revolutionising concept which is surely gonna shape our world in coming 5–10 years.
Thanks for reading