Blockchain technology is somewhat reminiscent of a ledger or an Excel spreadsheet. However, this notebook is available on the internet and can be viewed by everyone. Consider the information in this ledger, one row represents one transaction – like Ali sending 5 Bitcoins to Ayse. This transaction is added to the next empty line of the ledger and everyone can see this transaction.
Now, imagine that this notebook is in a place where everyone can see it. This means that anyone can see all transactions in the ledger. However, once a transaction is added to the ledger, it cannot be modified or deleted. This means that the ledger (blockchain) is secure.
Let's explain the decentralized structure of blockchain technology with another example. Imagine that you are playing a game and all the rules and scores of the game are controlled by a referee. However, one day the referee became ill and could not manage the game. This is exactly where blockchain comes into play. Blockchain replaces the referee and controls the rules and scores of the game. However, the blockchain is not controlled by one person or institution, but rather by all players. This means that if one player tries to cheat, all other players can see it and reject the fraudulent transaction.
Finally, blockchain technology enables transactions to be processed quickly and efficiently. Imagine, you want to send money to a friend, but the bank is closed. With blockchain, you can perform this transaction immediately because the blockchain operates 24/7 and transactions are usually completed within minutes.
