Blockchain – in simple terms

A blockchain is a digital, decentralized ledger of transactions. It is called a “chain” because it consists of a series of “blocks” that are connected together. Each block contains a list of transactions, and once a block is added to the chain it cannot be altered.

The transactions that are recorded on a blockchain are typically financial transactions, but they can also be things like votes in an election or even the transfer of medical records.

One of the key features of a blockchain is that it is decentralized, meaning that it is not controlled by any single entity like a bank or government. Instead, it relies on a network of computers to validate and record transactions. This makes it very secure, as it is almost impossible for anyone to alter the records on a blockchain.

Another key feature of a blockchain is that it is transparent, meaning that anyone can see the transactions that have taken place on it. This helps to build trust among the users of the blockchain.

Overall, the goal of a blockchain is to provide a secure and transparent way for people to exchange information or value without the need for a central authority.

Popular examples of blockchain in use:

  1. Bitcoin: This is probably the most well-known example of blockchain. Bitcoin is a digital currency that uses a blockchain to record transactions and prevent double-spending.
  2. Ethereum: This is a blockchain-based platform that enables the creation of smart contracts and decentralized applications (dApps).
  3. Supply chain management: Many companies are using blockchain to track the movement of goods through the supply chain and ensure that they are being sourced ethically and sustainably.
  4. Voting: Some countries and organizations are experimenting with using blockchain to secure and count votes in elections.
  5. Identity verification: Blockchain can be used to create secure and verifiable digital identities, which can be useful for things like online banking or voting.
  6. Real estate: Blockchain is being used to create secure and transparent systems for buying and selling property, as well as tracking ownership.

These are just a few examples, but there are many other potential uses for blockchain technology.