What Is Blockchain Technology? A Step-By-Step Guide For Beginners

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What Is Blockchain Technology

The blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it has evolved into something greater, and the main question every single person is asking is: What is Blockchain?

If you find any part of the tech confusing, don’t worry! That’s what I’m here for. To help you wrap your head around blockchain technology, I will explain it like I’m five.

A distributed database: imagine a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.

Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet. In short, we now have digital superpowers – like being able to make agreements with strangers without needing an intermediary (a bank or government). Let’s dive into how these superpowers work more closely…

By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, (Buy Bitcoin)the tech community is now finding other potential uses for the technology.

By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, (Buy Bitcoin)the tech community is now finding other potential uses for the technology.

Imagine a paper ledger into which cash transactions are entered. If someone wants to cheat the system, all they have to do is add more money to their account or subtract money from another account. Although that sounds simple and easy to get away with, it’s not because every transaction is publicly posted on a shared ledger for everyone to see. This public record is called the “blockchain” and contains every transaction ever made in the history of that particular cryptocurrency.

With blockchain technology, you have an unalterable record of all transactions on that blockchain at all times. If a person wanted to cheat, they would have to control more than half (50%+) of all computers on that network to change anyone’s transaction in their favor – this is known as a 51% attack and is extremely unlikely given how much computing power it would take (imagine controlling half of Amazon’s cloud computing services).

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Blockchain technology will become more influential over the next decade.

These changes will be gradual at first, but over time, the technology will become more widespread and influential. While blockchain may not have been a mainstream term in 2017, it will become a more common part of daily life over the next decade.

Blockchain technology is still relatively new, so it’s hard to predict all the ways it can be used. That being said, many industries are starting to explore how blockchain can help them improve their workflows and cut costs. These industries include:

  • Government
  • Healthcare
  • Real estate
  • Legal services
  • Insurance
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We believe in the idea of awesome technology education for your children’s future. Our mission is simple, to create mind-blowing tech experiences that inspire students to create the future. Whether it’s programming their own videogame, animating their own cartoon, or building a robot, our industry professionals can help make your child’s technical and artistic dreams a reality.