What is Blockchain? What is it Used For?

Are you asking yourself, what is blockchain? Here is the in depth explainer in nontechnical terms.

Imagine a chain of blocks, like a necklace made of interconnected beads. Each block in this chain contains information that needs to be kept in storage. Now, instead of a physical necklace, think of this chain as a digital ledger (like an organised spreadsheet).

There’s no central server controlling it. Instead, the data is stored across many computers all at once.

How Does It Work?

When someone wants to make a transaction, like sending money or recording something important, it gets added to the blockchain.

But here’s the magic: Once it’s in there, it’s pretty much impossible to change. Why? Because all those computers (called nodes) work together to validate and store the information.

More or less, all the computers have to agree that the change is legit. So anyone up to no good would have to break into every single computer to change the digital ledger. It’s hard to imagine how that could even happen.

In this way, it makes the blockchain a perpetual place to store information. This is why people call it “immutable”.

When we say that a blockchain is immutable, it means that once data (such as transactions) is recorded on the blockchain, it becomes permanent and tamper-proof.

The history of transactions stored in a blockchain cannot be altered or changed after its creation. Immutability is one of the defining properties of a blockchain system.

Real-life examples

uses blockchain to keep track of who owns what. Medical records can be stored perpetually on a blockchain, accessible only when needed. Identity documents like passports, driver’s licenses – can all be perpetually stored.

Food supply records can be kept that trace every step from farm to table. Voting using the blockchain is transparent and tamper-proof.

Art and can be recorded on the blockchain, which means that there is proof of ownership of that particular piece.

The Birth of Blockchain

How did it all begin? Back in 2008, an anonymous person (or group) named Satoshi Nakamoto introduced the concept of blockchain when they created Bitcoin, the first-ever cryptocurrency.

Bitcoin is often referred to as digital gold — except you can’t hold it in your hand. Instead, it lives on the internet.

Unlike traditional banks, where a central authority controls everything, blockchain is decentralised. No one single boss calls the shots.

In an ideal world, blockchain is a bridge that connects people, businesses, and even robots.

The Future of Blockchain

Global Trust Network

Here is where most people in the blockchain industry think it is going.

Imagine a world where trust isn’t just a handshake — it’s encoded in digital blocks. Blockchain will create a global trust network where you can verify anything… from the organic origins of your avocado to the authenticity of a rare .

No more shady deals or fake stuff!

Financial Revolution

Banks? Who needs them! Blockchain is already revolutionising finance. Users can send money instantly, without middlemen gobbling up fees. This is expected to increase in adoption. In fact it is already .

Health Records

Doctors and hospitals can access your health data. No more lost files!

Decentralised everything

Governments, voting, social media — everything will be decentralised. No more Big Brother watching. You’ll have a say in how things run. It’s like a digital utopia where power belongs to the people.

Remember, this isn’t sci-fi — it’s the future that is already being built.

What are smart contracts?

Not all blockchains can run smart contracts, which are like a digital agreement. Ethereum, for example, is the rockstar of smart contracts.

, on the other hand, does not have smart contracts, but it is like a reliable old library — it’s great for storing transaction records.

Here’s how smart contracts work. Imagine you’re ordering pizza online. You want the pizza delivered, and the delivery person wants payment. Now, what if we had a magical digital helper — a smart contract — to handle this?

A smart contract is like a digital agreement. It lives on a blockchain. Just like a regular contract, a smart contract sets rules. But here’s the cool part: It automatically follows those rules without any human intervention.

So, you order pizza. The smart contract kicks in: “When pizza arrives, pay the delivery person.”

It happens automatically without the delivery person or the pizza eater doing anything.

Features of smart contracts

Distributed: Imagine all your friends having a copy of the same contract. No one can secretly change it. Everyone’s on the same page!

Deterministic: This means the smart contract always behaves the same way. No surprises! If the pizza arrives, payment happens — every time.

Immutable: Once a smart contract is set — it can’t be altered. No sneaky edits!

Autonomous: No middlemen! The smart contract runs itself. Pizza referee not required.

Customisable: Before launching, you can tweak the rules. Want extra cheese? Customise away.

Transparent: Everyone can see the contract on the blockchain. It’s like a public pizza menu!

NFTs and the blockchain

are digital assets representing unique items — like digital art. Smart contracts handle NFT ownership and verify authenticity.

If you are a creator of NFTs, when someone buys your NFT, the smart contract can be written so that when your art changes hands, the contract triggers a payment to you automatically, like a royalty every time it sells.

Conclusion: The future of the blockchain

Although blockchain technology is still in its adolescence, it has enormous potential for innovation and disruption. Blockchain technology can change how people interact with one another and the environment around them as it develops and scales.

And as cryptocurrency and other digital assets are more widely adopted, Blockchain will become part of the infrastructure of life.