Blockchain
ELI5 - What is blockchain and is it safe? How?
Imagine you're playing a game with friends where you keep track of who owes what instead of using cash. You all write down debts and credits after each round. Once everyone agrees the list is correct, you move on. At the end of the game, you add up the list to see who owes or is owed money.
Blockchain is like this game's record-keeping leger, but digital and more secure. Instead of friend's names, it uses long digital addresses and private keys (like secret passwords). Introduced with Bitcoin, blockchain records every movement of a cryptocurrency to account for its current ownership.
Each new record on the leger, called a "block," needs everyone's agreement before joining the chain. While this was done by verbal agreement in our game, consensus is reached by something called "proof of work" in Bitcoin. Because Bitcoin's transactions require significant CPU (computer) power to organize, reorganizing the list is nearly impossible to fake. Bitcoin users called "miners" loan CPU power to the network to help organize the blockchain, keeping it secure, and receive Bitcoin compensation in return.
By drollparadox7655 9 months ago
Blockchain
ELI5 - What is blockchain and is it safe? How?
Blockchain, first introduced with Bitcoin, is a digital ledger shared across a network of computers. Each entry, called a block, records transactions, like sending or receiving digital money, with a unique, secure code. When a new transaction happens, it's added to a new block linked with a code to the previous one, forming a chain. This linking makes it nearly impossible to change past transactions without altering the entire chain, ensuring security.
Imagine it as a game where solving complex puzzles (mining) earns you points (cryptocurrency). When you spend or transfer points, that transaction gets recorded in the notebook. Everyone has a copy of this notebook, so cheating is hard because you'd need to fool everyone at once, which is practically impossible due to the puzzles' complexity.
This system allows for transparent, secure exchanges without needing a middleman, like a bank, making blockchain a revolutionary way to manage and verify transactions in a trustless environment.
By Alex 7 months ago
