Blockchain technology explained to your grandma

Blockchain technology explained in plain English: a way to pay without banks

Let’s assume you go to the supermarket and have $100 with you. You buy what you need and go to the cashier and say:
– I will pay this check through an email to my bank, where I urge them to withdraw $100 from my account and pay you. This email will serve as a digital I.O.U. that will be paid, 100% guaranteed.

Final thoughts on the blockchain technology explained

Therefore, in a nutshell, blockchain is an immutable distributed set (or ledger) of records, stored in blocks that contain validated I.O.U.s. These blocks are chained to each other, so — with proper authorization — anyone can trace any transaction to the very beginning, removing the chance of foul play and fraud. Various blockchain projects like Ethereum or Ripple have varying protocols, yet in general, the architecture remains the same.



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