To be serious: Blockchain was first launched as a public ledger for all Bitcoin transactions. It’s a continuous chain of data blocks, meticulously lined up according to certain rules. The structure of various blockchains can differ, depending on the type of cryptocurrency, but they pretty much perform the same functions and have similar characteristics. Blockchain frees users from intermediaries, handling transaction registration, identity verification, and contract execution.
How does it work?
► You want to send money.► This operation gets recorded in a specific block, meaning the sender’s wallet, the recipient’s wallet, the amount (which is digital, of course), and so on. Since it’s just numbers that require a private key for decoding, the transaction remains anonymous.
► This block is sent out to all computers in the network.
► These computers check that neither you nor your recipient is a shady character and that the money you're sending hasn’t been flagged in any suspicious activities.
► If everything checks out, the block gets added to the chain of other blocks. Voila! You’ve got yourself a blockchain!
► And the money arrives at your friend's account!
Sure, if you spell it all out, it sounds lengthy, but in reality, the operation takes mere minutes—or even seconds—depending on how savvy you are with your device. And all this without banks or those notorious postal services, with their endless requirements, delays, and frankly outrageous fees.
Now, let’s say you decided to send money to someone for services, a product, or just as a gift. If they're within arm's reach, you just hand them the cash. But what if you’re operating online? There are all sorts of institutions to help with that, but then you’ll get tangled up in identity verification, whether you can even send money to the country where the recipient is, and all that jazz...
In short, a thousand and one questions pop up before you can get that money sent. And money itself can be pretty tricky too. How do you know that those bills you use to buy bread today didn’t just yesterday finance some shady transaction in the alley? Sure, I’m exaggerating, but it’s not unimaginable.
Advantages of Blockchain (or why everyone is obsessed)
► Decentralization: No big boss can mess everything up.► Transparency: Everyone sees everything, but no one knows who you are (like at a masquerade ball).
► Security: Взломать блокчейн намного сложнее, чем найти иголку в стоге сенаHacking blockchain is harder than finding a needle in a haystack.
