Mohan Rajpurohit
Blockchain
(in simple terms)
Mohan Rajpurohit
Imagine there's a big book where everyone
in your neighbourhood writes down
everything they own and every transaction
they make with their neighbours.
Let's call this book a Ledger.
Mohan Rajpurohit
Now, this ledger is not kept in one person's
house or with the local authorities.
Instead, copies of this ledger are kept with
multiple people in the neighbourhood, let's
say 10 different people.
Mohan Rajpurohit
Whenever someone wants to make a new
entry in the ledger, like "I sold my old
bicycle to Raj for 500 rupees," they have to
inform all 10 people who have copies of the
ledger.
Mohan Rajpurohit
These 10 people then
check if the transaction
is valid (like, do you
really own that bicycle,
and does Raj have 500
rupees to pay you?).
If the transaction is valid, all 10 people
update their copies of the ledger with this
new entry.
Mohan Rajpurohit
This way, everyone in the neighbourhood
has a record of who owns what, and every
transaction is recorded in multiple places,
making it very difficult for anyone to cheat
or change the records.
Mohan Rajpurohit
This concept of a
distributed, transparent
ledger maintained by
multiple parties is the
core idea behind
blockchain technology.
Mohan Rajpurohit
Instead of a neighbourhood ledger,
blockchain is like a huge, global ledger that
records transactions of cryptocurrencies like
Bitcoin or other digital assets.
Mohan Rajpurohit
In blockchain, the people who maintain
copies of the ledger are not individuals, but
computers spread across the world.
Mohan Rajpurohit
These computers constantly check and
validate new transactions, and once a
transaction is confirmed, it becomes part of
the blockchain, which is a permanent,
unchangeable record.
Mohan Rajpurohit
This makes blockchain very secure and
transparent, as no single person or authority
controls the records, and everyone can see
the transactions that have taken place.
The trustless trust that revolutionizes how
we transfer value.
Keep up for more such content.
Mohan Rajpurohit