What is blockchain and how does it work!
(A simplified explanation that makes you understand blockchain without a headache 👇)
Blockchain is a reliable global ledger
1. Imagine a shared ledger containing all digital money transfers:
Who sent? Who received? How much?
The ledger is not with one person; all participants in the network have a copy, and everyone sees all transactions (but without knowing the true identities of the people)
2. Why can't anyone cheat? 🔒
Each new page in the ledger (block) is linked to the previous page with a special code (like a mathematical puzzle). If someone tries to change old data, the code breaks, and everyone knows something is wrong!
3. Who verifies the transactions? ⛏️
There are dedicated people (we call them "miners") who can solve mathematical puzzles using powerful computers.
Example: If you send 1 Bitcoin to your friend, the miners first verify that you own it, and after 10 minutes it appears in their wallet!
4. Why is blockchain amazing? 🚀
No intermediary: You don't need a bank or a transfer company
Transparent and secure: All transactions are recorded, and tampering is nearly impossible
Complete control: Your money is under your management (no entity can freeze it)
5. Is blockchain only for currencies? No! 🌍
It is also used in:
Electronic voting (to avoid fraud)
Tracking shipments (know the source of the product from the farm to the market)
Smart contracts (agreements that execute themselves automatically)
Important note 🧠
Speed varies by type of blockchain:
Bitcoin ≈ 10 minutes per transaction
