Blockchain Technology Explained in Fewer Than 200 Words

All financial institutions have a ledger. This ledger includes all withdrawals and deposits to calculate the total amount of money in a bank. The use of financial ledgers for record keeping is a crucial part of accounting.

But here is the twist: this ledger is kept solely in the bank. Once any threat happens to that ledger, all the financial transactions are gone! If financial transactions can't be recorded, the bank is prone to crises. Also, this ledger is subject to manipulation or fraud. This can be used to deceive investors into believing the bank is more profitable than it is.

In Blockchain technology, this ledger is not stored in one location but distributed across various supercomputers across the world. Once any transaction happens, it is instantaneously recorded on the supercomputers connected by nodes using encryption.

In this form, this decentralized ledger can't be hacked or manipulated. The goal of blockchain technology is to allow digital information to be recorded and individually distributed but not edited. It is the foundation for immutable ledgers, or records of transactions that cannot be altered or deleted.

Here is a visual representation of how Blockchain Technology works:

For a more in-depth article about Blockchain, check out my article on Why Blockchain is Important?

And there you have it, Blockchain Technology in less than 200 words...

Yours in Satoshi's Rabbit hole,

Emmanuel Nwaka.