Imagine a digital ledger, similar to a notebook, where transactions are recorded. But instead of being kept in one place, it's shared across many computers worldwide. This notebook is called a blockchain.
Here's how it works:
1. Blocks: Each transaction is stored in a "block." A block is like a page in the notebook.
2. Chain: Once a block is full, it's linked to the previous one, forming a chain. This makes it really hard to change past transactions.
3. Decentralized: Instead of a central authority (like a bank), the blockchain is maintained by a network of computers (called nodes) that check and approve transactions.
4. Security: Once a block is added, it can't be altered. This makes blockchain highly secure and transparent.
Blockchain is used for cryptocurrencies like Bitcoin and Ethereum, but it can also help track anything of value, from money to supply chain data. It’s transforming industries with its ability to provide secure, fast, and transparent transactions.
In simple terms, blockchain is like a public, digital notebook that everyone can see but no one can easily change!