Explaining Blockchain to Parents 👨‍👩‍👦

Luffy Sama

Published in

Coinmonks

4 min readDec 20, 2022

Hi there, how’s it going ?

Today I will try to explain you one of the most famous technology called BLOCKCHAIN.

You all might have overheard people talking about Blockchain.
But what does it actually means?

Now if we search for simplest definition from book then we will find this, “Blockchain is a immutable, distributed ledger technology”.

But it’s still confusing for any non-technical person? 😵‍💫

If I happen to tell this definition to my parents, I know they won’t understand it.

So how can I, how can we make everyone understand this to anyone.
After giving thought to it, I came up with what I think as simplest example to explain anyone what blockchain technology is.

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Let’s assume you are out shopping for some clothes. You buy some clothes and now it’s time to pay for them, so you will go pay it with either your debit card or credit card. When you pay using your card what will happen in background is your bank will transfer the amount of money from your account to the other receiving account. Now this whole thing or process is called as a Transaction.

Similar, to you there are millions of people doing this types of transactions daily. Bank stores this transactions as list of records in there database at one place. This is called as Ledger.

Very easy till now right ? Now here fun begins.

All all this ledgers are at one centralised place. The problem with this is being centralised anyone with access to it can come and make changes. I being the bank owner can come and transfer the amount of money from any account to my and clear that transaction without anyone knowing. Scary right ?

The solution to avoid this is making this data immutable so no one can change it no matter what they do. This can be done by using Blockchain.

So, what happens in blockchain is, whatever transactions are happening on the blockchain are captured and forms a Block. This block is then linked to the previous block using cryptographic hash.

Whenever a new transaction is generated a block will be created (also known as minted) and attached to previous block thus extending chain.

This chain does not run on only single computer but it is spread across different computers all over the world. Each computer that runs this chain is called as Node. These all nodes run in sync with each other. This is known as Distributed Ledger Technology.

If anyone with wrong intentions wants to mess with this chain it will be almost immutable.

Why you ask ?
Because The blocks are linked together if anyone tries to tamper with old transaction, the whole chain will get disturbed. As this is not only the single chain but multiple chains running in sync, if one chain seems different it will noticed by everyone and that chain will be discontinued. This is know as following consensus.

If we go through the definition again you can understand it now:
Blockchain is immutable(Cannot be changed), distributed ledger technology (spread across all over the world).

Thanks for reading.

If this blog helped you understand blockchain please share with your friends and family 🤗.

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Explaining Blockchain to Parents 👨‍👩‍👦

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Written by Luffy Sama