Yahoo Finance We explained blockchain to kids
Curious kids ask between 73 and 300 questions a day, depending on which research report you’re quoting.
There’s no denying their inquisitive nature.
But while kids might be wondering why the sky is blue, where babies come from and whether they can have a yoghurt, they’re probably not wondering what the blockchain is.
Considered tricky to comprehend by grown-ups, the blockchain is actually surprisingly simple.
New Investor Al Bentley spoke to a number of children to prove this point.
I could use a little more explaining
The blockchain is a global online database and allows us to make transactions and share information all over the world.
For example, a user will request a transaction be made to the blockchain. The transaction will then be recorded and logged by users’ computers around the world, meaning that all users have a record of the transaction, eliminating the need for a central authority like a bank.
“There’s no cheating or hiding on the blockchain,” the CEO and founder of investment app Simply Wall St, Al Bentley explained.
Hmm… I think I could use a demonstration
This is it in a nutshell.
Blockchain technology can be used to track and trace goods along the supply chain to monitor information. By extension, it can be used for tax applications, royalties and licensing, identity management and compliance records.
However, its major benefits come with some significant questions. Who regulates blockchain and who is accountable if something goes wrong? Additionally, as the blockchain grows, so too does the amount of information computers need to store.
Come back tomorrow to read our analysis of blockchain applications.
Now read: Here’s 2 ways retailers like Starbucks and Amazon use blockchain
