What is blockchain – Forget the TECH stuff - A simple way to look at it
Imagine you're at a party and you want to make sure no one messes with your coat while you're busy on the dance floor. So you give your coat to a trustworthy friend who then hands it off to another trustworthy friend, and so on. Each person in the chain verifies that they received your coat from the previous person and that it's still in good condition. By the end of the night, when you're ready to leave, you can trust that your coat is safe and sound. Well, blockchain is kind of like that, but instead of a coat, it's a digital record of transactions. Each block in the chain contains information about the transaction, and once a block is added, it can't be changed. So just like your coat was safe in the hands of your trustworthy friends, your digital transactions are safe and secure in the hands of the blockchain.
Let’s look at a simple business case and business value:
Sure! One example of how blockchain can be used in business is to create a more efficient supply chain. Let's say you own a coffee shop and you want to make sure the coffee beans you buy are sustainably sourced. With blockchain, you can create a digital ledger that tracks the entire journey of the coffee beans, from the farm to your shop. Each time the beans change hands, the transaction is recorded on the blockchain and can't be altered. This ensures transparency and accountability throughout the supply chain, and gives you and your customers confidence that the coffee beans are truly sustainably sourced. Plus, the efficiency of the blockchain means that you can track the coffee beans in real time and quickly identify any potential issues or delays.
Who came up with this:
The concept of blockchain was first proposed by an unknown person or group of people using the pseudonym "Satoshi Nakamoto" in a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" in October 2008. The whitepaper described a decentralized electronic cash system that used a blockchain to record and verify transactions without the need for a central authority. This system became the basis for the first cryptocurrency, Bitcoin, which was launched in January 2009. While the true identity of Satoshi Nakamoto remains unknown, their contribution to the development of blockchain technology and the cryptocurrency industry is widely recognized.
The underlying Technology:
To support a blockchain network, a decentralized infrastructure is required. This means that instead of relying on a central authority or server, the network is made up of many nodes, each of which maintains a copy of the blockchain ledger. These nodes communicate with each other to validate transactions and reach consensus on the state of the ledger.
The internet plays a critical role in supporting blockchain networks by providing the underlying communication infrastructure that enables nodes to communicate and share information with each other. Most blockchain networks operate on the internet, and the nodes use the internet to transmit data, validate transactions, and reach consensus.
Additionally, the security of a blockchain network is often reliant on the internet as well. Most blockchain networks use cryptography to secure the data on the blockchain, and this encryption is based on the security protocols of the internet. Without a reliable and secure internet connection, it would be difficult to maintain the integrity of a blockchain network.
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