How I would explain blockchain to a four year old child

I didn't know how blockchain works, till I studied A little intro of how blockchain technology works.

What is Blockchain? Blockchain is a decentralised technology that performs transactions from a peer to peer network.

Blockchain is a method used to keep information safe, transparent, and tamper-proof by using a decentralized network of computers to maintain a shared digital ledger.

Blockchain deals with real world cases too. The fundamental principles of blockchain are;

Cryptography: Cryptography is a method of securing data from an unauthorised access. It helps keep your information safe and private; just like your passwords, cryptography makes it unreadable and inaccessible to anyone who doesn't have the key (details) to decode it. Imagine you have a digital course, but your course is only accessible to people who pay for it. So your customers(prospects) can only access it using their money (That's their password or key or code to get access to your course. Security).

Often times you hear blockchain is a decentralised network. Today the underlined word is decentralised network

Let's see how decentralised Blockchain is😂

Decentralised network: As the name implies, it has no central authority or a third-party like the govt or bank. Blockchain operates on a system of computers making it hard for anyone to control. You don't have to rely on any authority to validate your transactions. Picture this, decentralization in blockchain is playing a football game with your friends on a team without a referee(third-party). Now instead of having a referee, everyone in the game just keep up with the rules. In a normal setting where you'd have a referee, the referee controls everything like the banks do😭 but in a decentralised system, no one is in control. Everyone keeps an eye and follow the rules because its a team. So no cheating😂

Consensus mechanism:Just like banks are able to validate your transactions in the financial system. Blockchain uses mechanisms like Proof of Work(PoW) or Proof of Stake (PoS) which helps to prevent fraudulent activities. This way, it is easy to spot fraudulent activities

Distributed ledger: Blockchain operates on a system of computers. Blockchain maintains a shared and public ledger of all transactions across its network. Since these ledgers are shared, they can also be duplicated and shared and this brings about transparency and an inability to be tampered🙂

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