Because of sudden surge and volatility in bitcoin prices, there is a lot of interest in blockchain (the technology behind bitcoin and other cryptocurrencies). But understanding blockchain is a little overwhelming even for IT nerds. Blockchain is significant not only for financial transactions, but also for any B2B/B2C/C2C transaction and thus it can disrupt most of the future businesses. I will try to explain it in easiest way.
A Barter System
Centralized Ledger System (e.g. Bank)
Blockchain based Distributed Ledger
You can read volunteers as miners, magical number as nounce value.
In a nutshell, blockchain provides 3 benefits-
Eliminate third party admin/ regulators and still enables to do transactions between mutually distrusting parties
Provide a transparent chain of records
Avoid data tampering/ fraud
We have covered a significant ground about blockchain in this explanation. If you have liked the explanation, please clap for me. Thanks!
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