Basics What is a Blockchain?

Image you’re doing a favor for your brother and you write down in a book, that you did just 1 favor for your brother and that your brother owes you one. You do not give him any money or other things, you just write down the transaction:

  • You did 1 favor for your brother.

In order to keep stuff secure and in order to provent your brother from cheating, you copy this book 3 times and give your parents and your sister one copy.

  • You now have 1 Block.

From this moment onwards, all preceeding transactions (additional favors) will be written down on all 4 books and will only be valid, if they are actually written down in all 4 books. A long chain of favors.

  • Concrats, you now have a blockchain.

From a Business perspective, a blockchain suits any cases, where secure transactions are required. And the most obvious and popular of course are financial transactions.

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