Blockchain-The Super Simple Guide

If children were asked to invent money for themselves, how would they do it?

Imagine a situation where you’re back in kindergarten and each child either has or doesn’t have crayons. The kids with crayons can give them out in exchange for other items of equivalent value

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An imperfect system

Although Miss Juliet does a good job, she isn’t always accurate. Sometimes, it is difficult for her to focus because she is always busy processing school work. Occasionally, she doesn’t write the proper number of crayons traded.

A better system

Here’s the system created by the kids:

Well, guess what?

It already exists and it is called blockchain technology.

The kindergarten story we started off with is merely an analogy to help us understand bitcoin and blockchain without delving into technical details. Now, let’s break the analogy down:

Advantages of bitcoin

By the hour, more and more people are finding the concept of bitcoins interesting. Here are a few reasons why:

  • Bitcoins are divisible.
  • Bitcoins are durable.
  • Bitcoins can be stored.
  • Bitcoins are portable.
  • Bitcoins are transferable.
  • Bitcoins are difficult to counterfeit.

Write your thoughts in the comment section below and if you want to reach out to me say hi at sarthak.acoustic@gmail.com

Written by

Software Engineer @Vedantu, Former Intern @Hackerrank, GSoC @Wikimedia, Former Intern @Vedantu, Codeforces(Expert)

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