Bitcoin Forum

Blockchain is a buzz word that seems to dominate much of the crypto economy nowadays. It's like the bread and butter of every crypto-related project.

And in bid to help non-crypto experienced people around, why not we try to explain the advantages of blockchain in simple ways? I hope many of you will follow suit.

First off, among the many advantage of blockchain is the removal of the middleman that paved way to the so called peer-to-peer transaction (or payment).  What's the simple explanation?

Traditionally, an online payment is done with the help of a bank that serves as a middleman. For Person A to pay Person B, the bank will receive the deposit from Person A and confirm the amount is available to Person B and records that transaction on their database in a centralized manner.

Blockchain disrupted this method by allowing Person A to transfer directly to Person B without a bank or payment gateway involved. But how does it work?

Simple, to confirm that the transaction proceeded and is valid, the transfer is broadcasted to the network (the so called miners) and is needed to be confirmed a number of times.  Once confirmed, this particular record is saved network wide (which makes it decentralized). And this record could not be overturned by anyone, not Person A nor Person B, nor by a miner or a group of miners (that makes the blockchain immutable).

And these are few of the simple explanation i came up with.  I believe that simplifying things from a very technical explanation will help build a stronger crypto community and a great boost to the crypto economy too.

I'm sure a lot of you have better ways of explaining the advantages of blockchain technology, it would be great to hear them.

The blockchain is not only virtual currency, you already know other applications of Blockchain technology!
The blockchain is usually known only as the basis of Bitcoin. However, Blockchain has the advantage of being able to transmit data bypassing intermediate units, increasing efficiency, and speed of operation. The blockchain network consists of multiple independent points capable of linking information but is only added when there is a consensus of all points. This is a highly secure network as soon as a part of the system collapses.
Blockchain has the potential to become a powerful technology in the future. The unmatchable characteristics of blockchain technology create a trust without the need for a centralized organization such as a company or an organization to establish that trust.
One of the most effective areas of application of Blockchain technology is banking and finance. Blockchain also supports trade, agriculture.
In addition, blockchain 2.0 or above supports the "smart contract" feature - smart contracts can be used in many cases, minimizing errors during the process. Eliminating intermediaries, the agriculture sector will generally save a lot of money for expansion.

The blockchain really eliminates the middle man,but most of the people are forced to believe that a middle man is needed in order to have more trust and avoid mistakes.
Are the majority of cryptocurrency exchange platforms a "middle man"?Is Lightning Network created to be some sort of a "middle man"?

A simple example is the following:

Currently when you send money to someone you need to use a service to so that. Someone or an entity that can verify that you have money in your account and your recipient has an account to receive the money. That someone or entity (let's call them a third party) facilitates the transaction. They have no interest in the transaction other than to pass it from you to the recipient, while taking a fee for doing this simple task. Blockchain technology removes the need for this third party to exist when conducting financial transactions.

Thank you and appreciate your time and simple explanation for blockchain. I'm sure that blockchain will be the backbone of many industry in the near future. Even government is going to benefit a lot for this technology in order to promote trust and avoid corruption. Imagine removing the middle in many transactions in the Government who actually the reason why corruption is rampant. Thank you blockchian, your the technology that will serve the public.

Apart from decentralized exchanges which do nothing but serve as a platform for people to connect with each other, every single exchange is a de facto middleman.

The Lightning Network is simply a second layer solution built on top of the blockchain to decrease demand for on-chain confirmations. It may involve some 3rd parties in certain routing scenarios, but they can't touch your funds anyway so they can't be considered middlemen in the vein of payment processors. You also have the option of opening a direct channel with the other party to make it purely p2p.

Middlemen may be necessary in certain scenarios (like traditional banking), but Bitcoin and the Lightning Network were built in such a way that they're completely unnecessary.

             A blockchain is a digital,decentralized public transactions ledger for Bitcoin that was developed by an unknown person named Satoshi Nakomoto on the year 2008 ,he invented blockchain technology in order to avoid the double spending problem of Bitcoin . In traditional currency transaction is run by a third party interference that is the bank takes control in it but in the transaction of Bitcoin there is no intermediaries and the Blockchain keeps all the ledger with secure.

simplifying the understanding of the word bitcoin and blockchain will lead to increased liquidity. in fact, you do not need to take it so seriously, because it is a simple technology, it will take time, and we will use it ourselves is not noticeable for yourself

I think the advantages of blockchain in Bitcoin are decentralized systems and also blockchain is known as backbone technology behind bitcoin with a simple analogy to facilitate understanding.

In our most used traditional transection complete by helped of third party but in this technology there is no need of third party. That’s mean it’s allow to transect on a decentralized server.

Blockchain have many advantages as like it’s a open source technology developer can get the chance to develop their work its have transparency. The transactional cost is very low, transaction is also fast.

Simply blockchain is the technology which will have great impact and I think it will be used everywhere in future. I think people will understand this simple technology by time and they will also accept crytpos.

Blockchain technology provides security and it is the backbone for bitcoin. Without blockchain no transaction will complete properly.

The main advanatage of block chain is, it eliminates the middle man from any financial transactions. It is very trust worthy system and also helps to minimize the errors during the process. In future it will do great as a technology.

For fiat money we need another party like bank when transactions are occurs but on the other hand for this digital money we don't need any third party. Blockchain provides security when transactions are occurs.

I agree with you, you have given a simple explanation for Blockchain. And beside it, I think Blockchain technology will be the main solution for many modern industries. Because instead of corruption it has expressed faith and confidence.

Very good explanation. Technical explanations can be very difficult for non-tech types to absorb. I'm very non-tech, so I speak from experience. Well done.

The main advantage that we got from the block chain is, it removes the middle man while conducting any financial transactions. It also minimizes the errors during the process. It also promotes trust. This technology is going to serve more in the future.

This is another very simple and good explanation. It's very clear and understandable

For me, blockchain is a way people can transact without any center or a governing intermediary. By this, people is not obliged to trust a central organization for a transaction but can trust one another through the system.

Due to all the unique features that blockchain provide a lot of institutions including governments of different countries are right now moving to blockchain technology. Blockchain is secure, transparent, irreversible which means it is perfect for storing records, which is why Colombian government is utilizing blockchain technology to record the land ownership over blockchain. There are more examples like these which you can find on the web.

That's an interesting post. The blockchain technology is basically a growing list of blocks that arranged using cryptography. So, it can keep the history of previous transaction through the distributed ledger. It is built to provide decentralization, transparency and liquidity in the market.

Blockchain is a important technology now-a-days. Many company benefitted by this technology and hope in future many government used to adjacent with this technology.

The blockchain is a concept that will change the world economy, I guess. Though it is not possible overnight, Blockchain concept will merge with the current banking system. And by the days, gradually and slowly, it will make the banking and other financial systems under decentralized network which will change the world.

Wow thanks, now i'm more understand with blockchain.
Never seen someone explained as simple as this.
I wish i had smerit to give but i don't have it anymore :')

Here’s the blockchain explained for dummies:

Imagine the blockchain as a digital database, just like an Excel spreadsheet.
This database is typically shared across a large network containing many computers (known as “nodes”) and it is completely public. I say “typically” because it can technically be formed by any number of nodes. The more nodes, though, the more secure it is — that’s why it’s good to have a large number of nodes running the blockchain!
Every time the network makes an update to the database, it is automatically updated and downloaded to every computer on the network.
Blockchain technology is secured with cryptographic techniques, making it near impossible for hackers to make changes to it. The only way to make changes would be to hack more than half of the nodes in the blockchain, which again, is why it is more secure to have more nodes/computers running the blockchain.

Blockchain provides full security of data which I found the best feature among all other features that are being talked about. Due to the decentralized nature of blockchain it is impossible to trace data of sender and receiver which has made it popular among a lot of people. There was a safety concern regarding illegal dealing but that have also drastically reduced recently.

Bitcoin and blockchain are often explained from a very technical point of view, using a vocabulary full of technicalities which often presume knowledge which is not widespread nor in the feasible range of understanding for many. Messages need to be adopted to the intended audience, and if one of the aims of all this thechnology is to be mass adopted, it requires product maturity, technical excellence and easy concept explanation.

The OP’s post may seem simple to some here on the forum, but I’m pretty sure we’d be surprised by the number of readers that need to grasp the concepts in an easy manner with non-technical explanations.

To be honest, Blockchain is one of best technology over time in terms of many things related to projects especially in the field of cryptocurrency. But the problem that many countries do not know the real value of this technology and how it can improve the economy and even the infrastructure. On the other hand, it is certain that through  the Blockhain  technology you can take a shortcut way for the sucess of your project.
In my opinion,  It is essential to put Blockchain in education  on the schools. it is very important, and I think that this will happen when the countries will recognize Bitcoin.

The records that are stored in blockchain are irreversible. So, once a data is stored in blockchain regarding the transaction, it is impossible for someone to erase or edit it. So, there remains zero chance of such scams or fraudulent cases happening. That is another point I want to add beside yours.

Blockchain is new technology which provide decentralized server. Every crypto adjacent with this technology. And it’s helped to avoid third party.

Blockchain has five significant advantages over existing payment networks, due to which in the future it could become a widespread technology in the financial services industry and other industries: Transparency; Reduced transaction costs; Acceleration of settlements on transactions; Decentralization; User-managed networks.

Just simple for me, i'm using crypto because it's simple and it's fast and easy to use.
And ofcourse it's decentralized, that's my main reason using crypto

Blockchain is the revolution. It is working as the underlying technology and it's just great. It can defeat the traditional system in many aspects because it is faster and more secure.

That is precisely what makes the blockchain an amazing technology, the fact that you do not have to place your trust on some third party, it is faster, cheaper and tamper-proof

It makes the whole transaction system easier. I am a big fan of this technology. The decentralized feature has made it more unique. It is now widely accepted in different sectors.

Blockchain enables the creation, storage and transmission of things of monetary value online. Blockchain executes these processes in an exceptional way by ensuring that maximum safety, transparency, trust and others.

The advantages of blockchain technology can not be explained in limited words. It is one of the finest technology of modern era. The transparency feature is really great.

The advantages of blockchains are so many. Transparency is one of it’s best features. Blockchain keeps the records of the transactions made by the crypto users and the good part is it could be visible by everyone.

Thanks for your post. The biggest advantage of bitcoin is it does not require the involvement of any third parties or if you could say there is no presence of middle man in BTC. So that means the entire control is on you.

Blockchain always aims to ensure the security of their users. They use encryption method so each transaction needs a secret key to encrypt the data and to validate the authenticity of it. So blockchain is very protected.

Very well said in making the common to understand blockchain will be one of the greatest step ever taken to create awareness and expand the community of crypto users. Let's continue the awareness and we will be happy for it.

This is a well drafted article and this is a very nice explanation as regards blockchain technology. This technology is going to be very helpful to governments and individuals in all ramifications ranging from payments , elections, development, etc and ensures fairness on all areas.

Blockchain technology are more secure and potential. it is more essential in digital trading world. it provide better services. it will make easy and fast our transaction. its future are more bright.

In what ways do you see it being better than a database that has the option to allow it's data to be reviewed publically? Bitcoin of course is good, but other uses for the technology seem to be pretty lackluster and unnecessary so far.

People are more interested and trust blockchain technology. it make faith and potential crypto world. it is more essential in digital trading platform. it will help to transparency and make secure our digital money.

blockchain technology are more advance and transparent. it will make easy our daily transaction. it will make secure our digital money. it is more essential and probable. its future are good.

understanding the word bitcoin and blockchain
I think about the superiority of blockchain in Bitcoin is a decentralized system and also blockchain is known as backbone technology
and blockchain will cause an increase in liquidity. actually, you don't need to take it seriously, and because this is simple technology, it will take time
and Blockchain allows for the creation, storage and transmission of things from the value of money online. Blockchain executes this process in an extraordinary way

blockchain is the latest technology that used now in digital currency. by using blockchaain technology our transaction is safe mainly it removes the middle man problem. that's why people have faith on blockchain technology.

we are known with the blockchain technology when bitcoin use it in prroper way. it have a feature which i like most that is smart contract it makes our transaction more easier.

Blockchain is a decentralized public transactions digital ledger which is used not only for Bitcoin but also for other digital aspects. Blockchain is a great technology for developing modern world.

Using Blockchain technology, we can avoid the problem of double cost of Bitcoin. And the good thing is that the blockchain technology removes the third party to manage financial transactions.

I reckon the fee of using blockchain is getting reduced slowly today.So the condition will back to normal soon.But this is most tough days for bitcoin because who bitcoin investors are chocked due to high fee and congestion in network.

We always think that there is no third party when it comes to blockchain financial transactions but from your explanation of how blockchain really operate it is like the miners still serve as third party just like our traditional banking system, the difference is that blockchain transaction is faster and miners cannot query your transaction except you do not have enough balance.

That's a good explanation. But it is amazing how many misconceptions there are about blockchain out there. I saw a commenter on an Internet forum recently doubting blockchain, saying that it would lead to more corruption. This person was convinced that if the wrong power got control of blockchain, there will be rampant corruption. How do you explain to people that this cannot be the case as there is too much accountability? The transparency is one of the USPs of Blockchain and here's someone doubting. It's frustrating.

Such a great explanation from you. It helps us understand  about these things in crypto world. Blockchain is the one needed by any companies  for lesser  expenses and a faster  financial transactions .This is a no middleman or any organisation involve between any transaction of two parties . It is one of the best technology happened into this world to help eliminate corruptions. 

The blockchain truly dispenses with the center man,Blockchain disrupted this method by allowing Person A to transfer directly to Person B without a bank,even at that the middle man is needed,But in this case is not so.Without blockchain no transaction will complete properly.

A blockchain is a digital and blockchain is the technology which will have great impact to everyone that we will used in daily and the advantage of that is Bitcoin are decentralized systems and its open source technology developer can get the chance to develop their work its have transparency and without blockchain no transaction will complete properly.

The removal of the needs on third-party or what they call middle-man is truly a great idea and can lessen the hassles and transactions fee over the internet or in the physical world. However, some institution and government agencies don't really like it cause it may kill the economy and largely affect the banking system worldwide.

I thought I could only see this kind of post on other social media platforms like facebook, twitter, and Instagram.

I don't think this guy is legit, First of all, I know that if you invest 0.2 BTC there's no possible way to get instant profit 0.5 in just a span of one

week or days. I'm nothing against you bruh but I think your account is shady and possibly a dummy account on this forum.