When many people hear the word “blockchain,” the first thing that comes to mind is cryptocurrency. If you are one of them, you are not alone. Understanding what blockchain is and how it works can feel like learning a new language. But this does not have to be the case.
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GOBankingRates gave this prompt to ChatGPT: “I’m 12 years old, explain what blockchain is.” This is what he said.
It’s like a notebook that everyone can see
“Imagine your entire class has a notebook that’s placed in the middle of the room. Every time someone borrows a pencil or eats a snack, they jot it down in that notebook,” ChatGPT said. “Once it’s written, it stays there forever. No one can go back and change it. That way, there’s no debate about who did what, because the notebook tells the truth and everyone has the same copy.”
Notebook is blockchain. “It keeps a record of events or transactions that is open for everyone to see and impossible to change,” ChatGPT said.
ChatGPT provided a simple metaphor that explains what blockchain does. As Coinbase describes it, a blockchain, at its most basic level, is a list of transactions. For example, with Bitcoin, the blockchain contains a record of every transaction made with the crypto.
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It is built one block at a time
ChatGPT continued to explain how blockchain works. “The notebook isn’t just a long list. It’s made up of ‘blocks’, like a few pages. Each block contains a bunch of notes or transactions. When a block is full, it’s closed and sealed forever. Then a new block is started,” it explained.
According to ChatGPT, the most important part is how each new block is connected to the block before it, like a chain. It says, “If someone tries to mess with an earlier block, it will mess up all the blocks that come after it. That’s what keeps everything secure.”
there is no teacher in charge
ChatGPT continued the comparison of classroom and blockchain. Usually, if there is a problem in class, the teacher will intervene and find a solution. ChatGPT said that there is no teacher in charge of the blockchain. In short, everyone is in charge.
“Instead, everyone in the class has to check the notebook and agree on what is true. If a majority of people agree that something is true, it is added to the notebook. This is called ‘consensus,’ and it is how the blockchain remains fair and accurate without the need for a central authority,” it explained.
Indeed, as Coinbase explained, blockchain is a peer-to-peer network, meaning it is not centralized or maintained by any large organization like a bank.
It’s not just for cryptocurrencies
Many people think that blockchain is only for Bitcoin and cryptocurrencies. While it is true that digital currencies use blockchain, ChatGPT said it is useful for other things as well.
“People use blockchain to keep medical records secure, keep music and art from being copied, and even vote in elections. Wherever you need clear, trustworthy records, blockchain can help. And once you get past the big words, it’s actually a super honest notebook that everyone can trust,” it explained.
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