Blockchain Explainer : To a non Finance person
Blockchain is a way of storing information in a way that makes it very difficult to change or hack. It is a shared database that is maintained by a network of computers. Each computer in the network has a copy of the blockchain, and all the computers agree on what the current state of the blockchain is.
Blockchain is made up of blocks, which are groups of data. Each block contains a timestamp, a link to the previous block, and the data itself. The blocks are linked together in a chain, hence the name "blockchain."
To add new data to the blockchain, a miner must solve a complex mathematical problem. Once they solve the problem, their data is added to the blockchain. The data is then shared with all the other computers on the network.
This process makes it very difficult to change or delete data on the blockchain. If someone tries to change the data, all the other computers on the network will know that the data has been tampered with.
Blockchain is a powerful technology that has the potential to revolutionise many industries. It is still in its early stages of development, but it has the potential to change the way we store and share data.
Here is an example of how blockchain could be used in the real world:
Imagine you want to buy a car. You could use blockchain to track the ownership of the car. The blockchain would store information about who has owned the car in the past, and when it was sold. This would make it much more difficult for someone to sell you a stolen car.
Blockchain could also be used to track the history of a product.
For example, you could use blockchain to track the origin of a food product. This would make it easier to avoid products that have been produced in unethical or environmentally harmful ways.
Blockchain is a powerful technology that has the potential to make our world a more transparent and secure place. It is still in its early stages of development, but it has the potential to change the way we live and work.