Blockchain for dummies
Blockchain technology is nothing but a consensus mechanism for conducting transactions without any “middleman” persona (organization or people) of authority we can trust.
Let me explain with an example:
How about creating a shared address book of your globally spread out family members?
Let us assume nobody stepped up to manage the address book, to make sure the latest information is always available. You want a mechanism that would add the changes to the family address book and takes a consensus from all the family members before adding.
Wish granted! — Blockchain is the technology that provides you this consensus mechanism.
Family members register into this system and will receive the first copy of the family global address book (Ledger) with address and contacts information (Block1). If any address change (Block2) happens.For example your aunt moved. The new address (Block2) will be added to the address book (Ledger). The global address book will now have both the old entry and the new entry ( Block1 +<linked>+Block2). This happens only after the rest of the family members have a consensus on the proposed entry(Block2)
If the addition request to the global family address book is by a hacker or a non-family member then the transaction is denied. This mechanism is autonomous and will safeguard the trusted family address book’s information. This mechanism of linking the blocks ( adding information to the address book) with consensus is the blockchain technology.
- There is no requirement of a family member (middleman) to maintain the address book
- All the additions are recorded, you cannot delete entries from the family address book ( immutable)
- Your copy of family address book is kept up2date with the latest information autonomously
NAME: BALARAM K TIDHI