Blockchain is a revolutionary technology that has the potential to transform industries and societies. But what is it, and how does it work? Introducing blockchain to your non-tech family members can be quite a challenge. But fear not, you’re not alone in this endeavour. In this guide, we aim to demystify blockchain and its potential in a language that anyone can understand. We even had conversations with our mums to ensure we’ve got you covered. So, rest assured that even your (grand)ma will grasp the concept with ease.

So, what exactly is blockchain?

Blockchain is more than just a buzzword floating around tech enthusiasts. It’s the innovative technology behind Bitcoin and other cryptocurrencies, also known as Distributed Ledger Technology (DLT). A blockchain is a digital ledger that records transactions by connecting individual records, known as blocks, in a single list or chain. It is commonly used for recording digital transactions, and each addition to the chain is verified by multiple peers in a peer-to-peer network.

This decentralised network guarantees that a single entity cannot add invalid transactions or blocks to the chain, ensuring the validity of each transaction before it is added to the chain.

But how does it actually work?

Blockchain relies on a decentralised network of computers worldwide to validate and record transactions. These computers, known as nodes, collaborate to verify the transaction’s validity and add it to the blockchain, creating a secure and transparent record of all transactions. Each block is linked to the previous block with a cryptographic hash, which ensures the chain remains unbroken and every block is permanently recorded. Since all subsequent blocks must be changed first, it’s almost impossible to alter past transactions on a blockchain.

That sounds interesting, but what are the benefits?

Blockchain brings forth a wide range of benefits, including enhanced security, transparency, and efficiency. By utilising a decentralised network, blockchain eliminates the necessity for intermediaries, such as banks or governments, to verify transactions. This can result in faster and more affordable transactions, along with increased transparency and accountability. In addition:

Decentralised technology is the future because it empowers individuals to own their data without the interference of middlemen.

With blockchain, individuals have more control over their personal information and can ensure it remains secure and private.

How does blockchain apply to everyday life?

The innovative nature of blockchain allows it to tackle a significant hurdle in human interactions: trust. It shifts trust from individuals or organisations to the technology itself. As a result, individuals and groups can exchange value without having to rely on trust in each other or even knowing each other personally. This seamless collaboration is made possible by the cutting-edge record-keeping approach of blockchain. It has diverse applications across various industries, ranging from finance to healthcare to supply chain management. For instance, blockchain can track the origin and movement of goods in a supply chain, ensuring ethical and sustainable production. It can also securely store and share medical records, granting patients control over their data and reducing the risk of data breaches.

How does blockchain apply to everyday life?

Tell her this:

Blockchain is like a digital book that keeps track of transactions. Imagine a shared notebook that everyone can see, but no one can change what's already written. Each transaction is like a new page added to the end of the notebook. Once it's written, it can't be erased or altered. This way, everyone can see what's been added and trust that it's accurate.

If your mum still finds the concept a bit hazy, feel free to slide into our DM on Twitter because we’re here to answer all your questions.

If you’re eager to learn how we’re harnessing the power of blockchain or if your mum is curious, we understand. Check out our to dive deeper into the possibilities!

You might like these too