What is blockchain technology and How does it work

What is Blockchain Technology?

Blockchain is like a digital notebook shared among a group of friends. Each page in this notebook is a “block,” and all these pages together make up the “blockchain.” Every time you add a new entry, everyone in the group gets a copy. This means no one can secretly change anything without everyone else noticing.

Blockchain is essentially a database that is shared across a network of computers. Each entry, or transaction, is stored in a block. These blocks are linked together chronologically to form a chain, hence the term “blockchain.”

Here’s why blockchain is special:

  1. Decentralization: No single person is in charge. Instead, everyone in the group has an equal say. It’s like having a democracy for your data.
  2. Transparency: Everyone can see what’s written in the notebook. No sneaky business allowed!
  3. Security: Entries are locked with a super-strong password (cryptography). Once something is written, it’s nearly impossible to change.

How Does Blockchain Work?

Blockchain operates like a series of steps in a game:

  1. Starting the Game: Someone decides to make a transaction, like sending money or signing a contract.
  2. Broadcast to the Group: The transaction is shared with everyone in the network (your group of friends).
  3. Validation: Everyone checks if the transaction is legit. It’s like when you all agree that the new entry is accurate.
  4. Creating a New Page: The validated transaction is added to a new page in the notebook.
  5. Linking Pages: Each new page is linked to the previous one with a special code (a cryptographic hash). This ensures no one can secretly rip out a page or alter the notebook.
  6. Sharing the Updated Notebook: The updated notebook is shared with everyone, so everyone has the same version.


In simple terms, blockchain is a safe, shared notebook that everyone can trust. It gets rid of the need for a middleman, making things faster and more secure. Whether it’s for money transfers, tracking goods, or even in healthcare, blockchain has tons of potential.

And hey, if you ever wanted to play a game where everyone’s the referee and no one can cheat, blockchain is the way to go!

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