I came across a video where a guy gave an incredibly fun analysis of cryptocurrency and blockchain technology, and I feel it will help our newbie a lot to understand this concept. This is how the analysis goes:
Imagine you have a friend named John who has a business partner in a faraway country and needs money today for a business venture,
So, John goes to the bank and says " I have a friend in Spain who needs money today, can you help me send it to him?" And they said " John, we can help you but it will take us 7 to 10 business days I'm sorry. And John starts freaking out and is like, what am I going to do because my friend needs this?
And here is when crypto comes in and says," I heard you needed to send money overseas today, well what you can do is buy a coin from us and we will send it immediately, it's almost as an email.
And John is like, that sounds good but don't email get hacked?
And they are like, yeah John, but we are a little bit different because, every time you make a transaction, we keep your receipt, and not only do we keep it, we organize it in a way that it cannot be altered and what we do is that we store in a file called a ledger and then we put your file in a digital vault which is called the blockchain.
And we will copy this ledger over thousands of different computers across the world so if someone says, John, didn't pay or they are trying to hack you, all we have to do is to look at all the other computers Around the world and we will see very quickly that this person is the one that wasn't playing fair and we can keep your money safe that way.
And so everybody is happy because it's not backed by banks or the government and John has the opportunity to send money instantly internationally and he feels more secure because he knows he is safe by this technology called the blockchain technology that is monitored by thousands of different computers that is always online"
I hope this helps someone.
