How to explain Blockchain Technology to your family

-=How does Bitcoin technology work?=-

To make it easier to explain how the Technology behind BITCOIN works, I’ve created the explanation model below using a classroom as an example.

Imagine a BINDER (like these one, that you can add / remove papers) where the registration of any type of transaction is done.
Transaction Example: Silvio sends 10 units (of anything) to Arthur.
When a transaction takes place, it is in a QUEUE, waiting to be registered in this BINDER.

The STUDENT is responsible for taking the transactions of this QUEUE, verifying that Silvio has the 10 units, writing that 10 units have been withdrawn from Silvio’s account and added to Arthur’s account, and writing this transaction in the lines of the PAPER of BINDER.

When the PAPER reaches its limit, that is, the lines available for writing are finished, the STUDENT adds a new PAPER to the BINDER, so that new transactions are recorded.

To add this new PAPER, the STUDENT needs to solve a MATHEMATICAL PROBLEM, which is based on the information of the registered transactions (e.g. Silvio, Arthur, 10 units) in the current PAPER.
The result of this MATHEMATICAL PROBLEM generates a code that will be written to the new added PAPER.
In this way all PAPER of the BINDER have a sequential link between them, much like a chain.

In a classroom, all STUDENTS have a copy of this BINDER, and there is a competition to know who is the fastest STUDENT, the one who first accomplishes the task of:
- Take the transaction of QUEUE;
- Confirm Silvio’s balance and withdraw the amount to enter into Arthur’s account;
- Write this transaction in the PAPER of the BINDER;
- Solve the MATHEMATICAL PROBLEM;
- Insert the new PAPER into the BINDER.

To confirm that the winning STUDENT did all the above tasks, the TEACHERS will validate if the result of the MATHEMATICAL PROBLEM is correct.
Being all confirmed, this winning STUDENT receives some PRIZE and its PAPER is copied and inserted in the BINDER of all the other STUDENTS and TEACHERS.

In this way, everyone in the room always has the same updated copy of this BINDER.

So you can ensure that no STUDENT can cheat by inserting false transactions, because if that happened, the MATHEMATICAL PROBLEM would present an error, nor that a STUDENT changes past transactions, since he would have to change the BINDER of all other STUDENTS and TEACHERS.

—
Translating the terms from the example:
BINDER = BLOCKCHAIN
QUEUE = MEMPOOL
PAPER = BLOCK
STUDENT = MINERADOR
MATHEMATICAL PROBLEM = PROOF OF WORK
TEACHERS = FULL NODE
PRIZE= BITCOINS

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