If you've tried investigating this mysterious thing called blockchain, you'd be forgiven for stepping back in horror at the opacity of the jargon often used to shape it. So, before we dive into what cryptocurrencies are and how blockchain technology can change the world, let's talk about what blockchain really is. You can also get more information about blockchain via https://kiliki.club/.
Image Source: Google
Simply put, blockchain is a digital transaction log, unlike the registers we have used to record sales and purchases for hundreds of years. The function of this digital book is actually almost identical to a traditional book because it records debits and credits between people. This is the basic concept behind blockchain; the difference is who keeps the books and who controls the transactions.
In traditional transactions, making payments from one person to another requires some kind of intermediary to facilitate the transaction. Say Rob wants to transfer £20 to Melanie. He can give cash in the form of a £20 note or use a banking app to transfer money directly into his bank account. In both cases, the bank is the intermediary that verifies the transaction: Rob's balance is verified when he withdraws money from an ATM or verified by an app when he makes a digital transfer.
The bank decides whether to proceed with the transaction. The bank also keeps records of all transactions made by Rob and is fully responsible for updating them whenever Rob pays someone or receives funds in his account. In other words, the bank holds and controls the books and everything flows through the bank.