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Blockchain Technology Explained in Easiest way

Block Chain Technology Explained in Easiest Way

Blockchain explained in easiest way- Let’s imagine you are a singer. You finished recording a song and posted it online or sent it to a friend. Basically what you did was creating duplicates of the same file. One held by you, the other by your friend and another million more by your fans.

This is what happened, when you share something online or sent it to a friend.

This is perfect and it is how internet works best, because the files/informations you shared, you will still have it, and the files you downloaded legally/illegally will still be available for others to take benefit of it.

However when it comes to money related, its not good. Imagine you sent $10 to a friend, immediately he receives the $10 and at the same time you are still having the same $10. He then sends your $10 to another friend of his and so on and so forth. This lead to devaluation of that $10

This is how blockchain will regulate and fix this problem. Blockchain is a technology underlying cryptocurrency, in which the $10 can only be used once and not be duplicated ( it means that once you sent $10 to a friend, you will not be having that same $10, and your friend can then send it to his friend, and his friend to his his friends and so on).

Isn`t it like Paypal or some Shanghai based FinTech company that went public 2 days ago?

It may look like it, but its not exactly like it. In Blockchain, there will be no regulator.

Picture this, you are in Seoul, Korea and you want to send some money to me (because you are able to finally grasp the idea of Blockchain) all the way here in Russia.

You need to wait till morning, go to the bank, deposit some money, and because there is no Won(Korean currency) – Rubles (Russian Currency) direct conversion. The bank requires you to go through this process Won → USD → Rubles. They will reap a huge amount of commission for the conversion rate as well as performing cross-border transaction will charge you another 9–10%. It will take 5–7 working days before i can receive the money.

With blockchain, we eliminate the intermediary.

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Who will play the role as the intermediates?

-Users of this system.

Collectively all users of blockchain will act as an intermediate. They store every transactions and in turn will play as book-keepers or auditors for all transactions taking place. This way, it will be impossible to be hacked ( the hacker needs to hack every computer to make even the slightest change, even then the hack could be reversed).

With the use of this integration system. You can in the future, as an artist link your account to the song you recorded, each time someone wants to play it, or depending on how many times the song is opened or downloaded, you will be paid automatically. Through the concept of blockchain.

It is still at its infancy stage. However the growth and the application may revolutionize how transactions/banking or even our society works today.

Blockchain explained in easiest way by G.RAJPUT Sir 


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