🖧"Blockchain" Simply Explained

The term "Blockchain" is a key concept in DeFi. Satoshi Nakamoto built the first real-world application of a decentralized blockchain with Bitcoin. Many people know about crypto and DeFi; however, very few can wrap their heads around what a blockchain is or how it works. 😶‍🌫️

Those who truly understand a topic can simplify it in such a way that a 5-year old can digest it, or so they say. To put this theory to the test, we asked the community the question, "How do you explain 'Blockchain' to a 5-year old?" We were really surprised at some of the answers submitted. 🙏

Here are the top 5:

• "You're playing a game of Uno with a few friends. The game cards are your data (blocks). Each successive card played is linked to the one before it (chain). Everyone is watching everyone else's move to make sure they are playing by the rules (validators). You don't know what cards each other have (encryption)… The idea is that the Blockchain is a linkage of records and people validating the transactions anonymously." - Reddit user silentaugust.
• "Imagine you and your friends want to trade Pokemon, but the Pokemon are pretend Pokemon - not Pokemon cards. So, you want to keep track of who owns which Pokemon, and know who traded which Pokemon to their friend for another Pokemon. But, keeping it on a piece of paper is difficult, since only one person can see it at a time. Also, a sneaky person could erase and change things to make it so they own all the imaginary Pokemon. Blockchain is just a list of who owns what Pokemon that everyone can see all the time, and no one can erase things to change it. Only the two kids who are trading can agree to trade Pokemon and add a new record to the list. (Might have to explain the term "record", but the rest should make sense)." - Reddit user crunchycode.
• "You can also let 5-year-olds understand better in this way. A has 2 candies, he gave one to his best playmate B, but he gave it to B in front of the whole class, so the whole class knows that A gave one to B and recorded it in his notebook, so B can never deny the candy A gave to him, because the whole class is a witness, this is the blockchain technology." - Reddit user zkw520.
• "It's like owning a book with thousands of copies of the same book worldwide. Only the owners with a copy of the book can add a page to the book, and nobody can erase the content of the book. Therefore making it the go-to place for accurate information." - Reddit user rastafarey25.
• "Imagine, I give you an action figure toy. Billy and his parents see me give it to you. You decide to trade that action figure for Billy's Snack Pack. Billy, his parents and I watch you eat the Snack Pack. Billy owns the action figure, you own a Snack Pack wrapper, and I own nothing but we all witnessed these things happen and understand that took place. Because everyone witnessed me saying that you could have my action figure, it's no longer mine. Because everyone witnessed you trading the action figure for Billy's Snack Pack, it's no longer yours. Billy goes home happy with his new action figure, you're happy with the Snack Pack you've eaten, and I'm just astonished that my friendship means nothing to you. It was a gift and I watched you give it away like it meant nothing... I can no longer give a REAL friend my action figure because I've already spent it. The moral of the story is, a blockchain is a group of transactions that are witnessed by people who run nodes. Once a transaction has been sent, everyone on the blockchain knows and can verify that. It's impossible to create another transaction with the same tokens because you've already spent them." Reddit user -Clayford08-.

Thank you so much for your responses! Your input is helping the space become more transparent and understandable for all. Who knows? Maybe you will use some of these examples when explaining the concept of "Blockchain" to a child. 😉

 🔥Earn Crypto with DeFiner

On Ethereum Network:

On Polygon Network:

💰Start Earning Today💰