Blockchain - Simply explained
Updated: May 10
The thing about blockchain is, it is new. In fact, very new. We could bore you with the details of how crypto-currency works with words like ledgers, cryptography, timestamps, hash, protocol, peer-to-peer etc. It is too technical an explanation really, it teaches how certain models of blockchain work but not necessarily the concept or the idea behind it. Which is why we have chosen to write 'Blockchain - Simply explained' for you.
Now look at lego blocks. Imagine each block has the exact same information as the rest of the block. Now communication between the blocks are encrypted and to change the information in one block, you have to change the information in all of the blocks. So in terms of currency and ledgers, it seems like a pretty stable model since to manipulate the information in one block, you would have to manipulate all of them. This does not make it completely safe, but it is still a better model than our current one, where your bank knows how much you have and that's about it. If your bank forgets you have money there, who's to say where it really went. Dryness of that explanation aside. What blockchain really represents, it the decentralisation of information. Like a decentralized internet. As a concept, it is promising. Let's say driverless cars all have all the maps of every road on earth. All it needs is just the GPS signal to move and not much else. The information inside the car cannot be manipulated unless all of the cars agree that the information is valid, let's say a new road is found and it updates all the other driverless cars with this new information, or if there is a road closure etc.
Right now, if a tech guy is reading this, he is scorning and thinking this is not accurate. Who is writing this article. Chances are this tech guy is just book smart about blockchain and not much of anything else. Because blockchain is a new form of internet communication and validation of information. It's first truly usable application is in the form of crypto-currency. But this concept will be expanded and broadened in years to come. No longer does information have to be in servers, storage capacity will come to a point that all of the information on wikipedia could be on your phone, on all phones in fact. And if the information in wikipedia works as a blockchain, this would ensure the accuracy of the information since it is susceptible to bored teenagers who wish to write something funny about someone. I know I've done that before. Which is why I can't edit Wikipedia pages anymore.