A simple way to explain blockchain to the clueless

[contentcreators]

Hi, I came across a really good simple explanation of blockchain recently and thought I'd share.

I'd like to know what you guys think and would love to hear your simple explanations.

So, imagine you live in a village. There's 1 guy in the village who is in charge of all the money. He has a little book and writes every transaction in there.

Now imagine that a rich guy in the village (maybe he's hunched over and has a huge wart on the end of his nose) wants to get even richer, so he bribes the guy in charge.

The head honcho scribbles out and replaces a few figures and so the system has been easily corrupted. Not good.

Now, imagine that you and every other person in the village has a copy of that book, and every time a transaction is made, everyone writes it down.

This system is much more difficult to corrupt. To fiddle the books you would have to get hold of every single copy and change it. Not an easy task.

and that's a very basic explanation of how a blockchain works.

Thoughts?

 

[hasan7707]

Went above my head. Perhaps start with the formal definition?

 

[contentcreators]

Went above my head. Perhaps start with the formal definition?

Oh dear! The whole point was for it to go below your head!

 

[Gogol]

A much better explanation

 

[contentcreators]

A much better explanation

That's great but how would you explain it to a child? Or someone who isn't technical at all? I just think that there's a huge educational hurdle that needs to be overcome if the masses are going to accept cryptocurrencies.

 

[Gogol]

That's great but how would you explain it to a child? Or someone who isn't technical at all? I just think that there's a huge educational hurdle that needs to be overcome if the masses are going to accept cryptocurrencies.

Watch the video, if someone understands what a hash is, he/she can understand blockchain. By the way, does a child really need to understand what blockchain is?

 

[artur core]

Hi, I came across a really good simple explanation of blockchain recently and thought I'd share.
I'd like to know what you guys think and would love to hear your simple explanations.
So, imagine you live in a village. There's 1 guy in the village who is in charge of all the money. He has a little book and writes every transaction in there.
Now imagine that a rich guy in the village (maybe he's hunched over and has a huge wart on the end of his nose) wants to get even richer, so he bribes the guy in charge.
The head honcho scribbles out and replaces a few figures and so the system has been easily corrupted. Not good.
Now, imagine that you and every other person in the village has a copy of that book, and every time a transaction is made, everyone writes it down.
This system is much more difficult to corrupt. To fiddle the books you would have to get hold of every single copy and change it. Not an easy task.
and that's a very basic explanation of how a blockchain works.
Thoughts?

Not the guy here you should explaining that (5 years crypto experience) but for me it sounds logical.

 

[contentcreators]

Not the guy here you should explaining that (5 years crypto experience) but for me it sounds logical.

Cool, I was trying to explain it the most simple way possible. Think it needs work though.

 

[islandman1010]

So if I am a very clever hacker all I need to do is interrupt and corrupt the very first transaction before it get sent in milliseconds around the chain and I have successfully altered every book out there and they wouldn't know because they are checking against each other. .

 

[RyanCipriano]

Blockchain is a very innovative technology and your explanation is pretty accurate. The only problem with these type of ledgers is "double-spending". Solving this problem without increasing the energy cost is the biggest challenge for blockchain.

 

[weshare]

Imagine that there's a tickets seller
These tickets can make you have many discounts at a bazaar

Now you know the benefits
You buy them in bulk for cheaper price from the seller
Then you sell them higher

Later on people know the benefits and try to buy bulk like you
But the seller increase the price much higher than before
There's no other choice since he's the only seller available

Since then people are competing against each other instead of visiting the bazaar itself

And you know what will happen after the bazaar is closed

 

[awesomewebsites]

I liked the way you explained it.

 

[contentcreators]

Blockchain is a very innovative technology and your explanation is pretty accurate. The only problem with these type of ledgers is "double-spending". Solving this problem without increasing the energy cost is the biggest challenge for blockchain.

Thanks, I think the biggest challenge is education. Most people haven't a clue how revolutionary blockchain could be for the way we exchange value.

 

[contentcreators]

So if I am a very clever hacker all I need to do is interrupt and corrupt the very first transaction before it get sent in milliseconds around the chain and I have successfully altered every book out there and they wouldn't know because they are checking against each other. .

lol good luck hacking SHA-256!

 

[swiftcs]

nice explanation bro, really liked it

 

[contentcreators]

nice explanation bro, really liked it

Thanks, it's not an easy thing to explain, I tried my best! Now go tell your grandma all about it