The idea of blockchain came through the emergence of cryptocurrency. However, lot of people do not have an inkling about it. Hence, in this article, I am going to explain blockchain in the simplest of terms such that anybody can understand it.
What is Blockchain?
Blockchain, as we can see, comprises of two words: block and chain. To visualize it, think of Lego blocks that are stacked together such that it makes a chain of Lego blocks. Now, if that block is a digital ledger which contains information about various transactions and anytime there is a new transaction, a new ledger with updated information is stacked onto the previous ledger creating a chain, then that is blockchain. You can think of it as a universally digital ledger that everybody has a copy of, such that it is transparent, decentralized, and corruption-free.
The concept seems simple enough, so why the buzz? Let me give you an example. As a Nepali in foreign land, sending money back home time to time through the widely available remittance websites is a common practice. However, during this process, the remittance company takes a percentage cut of the money being sent and also there is always a sense of insecurity in the back of our mind if the money is safely going to reach our family. With the help of blockchain technology, we can eliminate the middleman which is in turn reduces the additional cost and increases the security due to the direct transaction between the two party.
This concept, in general, can be implemented in any kind of transaction which has value.