How to explain Blockchain Technology to your family

[Silvio_Carlos_Junior]

Hi Guys,
To make it easier to explain how the Technology behind BITCOIN works, I’ve created the explanation model below using a classroom as an example.

If there is an error or suggestion, please feel free to comment.

-=How does Bitcoin technology work?=-

Imagine a BINDER (like these one, that you can add / remove papers) where the registration of any type of transaction is done.
Transaction Example: Silvio sends 10 units (of anything) to Arthur.
When a transaction takes place, it is in a QUEUE, waiting to be registered in this BINDER.

The STUDENT is responsible for taking the transactions of this QUEUE, verifying that Silvio has the 10 units, writing that 10 units have been withdrawn from Silvio’s account and added to Arthur’s account, and writing this transaction in the lines of the PAPER of BINDER.

When the PAPER reaches its limit, that is, the lines available for writing are finished, the STUDENT adds a new PAPER to the BINDER, so that new transactions are recorded.

To add this new PAPER, the STUDENT needs to solve a MATHEMATICAL PROBLEM, which is based on the information of the registered transactions (e.g. Silvio, Arthur, 10 units) in the current PAPER.
The result of this MATHEMATICAL PROBLEM generates a code that will be written to the new added PAPER.
In this way all PAPER of the BINDER have a sequential link between them, much like a chain.

In a classroom, all STUDENTS have a copy of this BINDER, and there is a competition to know who is the fastest STUDENT, the one who first accomplishes the task of:
- Take the transaction of QUEUE;
- Confirm Silvio’s balance and withdraw the amount to enter into Arthur’s account;
- Write this transaction in the PAPER of the BINDER;
- Solve the MATHEMATICAL PROBLEM;
- Insert the new PAPER into the BINDER.

To confirm that the winning STUDENT did all the above tasks, the TEACHERS will validate if the result of the MATHEMATICAL PROBLEM is correct.
Being all confirmed, this winning STUDENT receives some PRIZE and its PAPER is copied and inserted in the BINDER of all the other STUDENTS and TEACHERS.

In this way, everyone in the room always has the same updated copy of this BINDER.

So you can ensure that no STUDENT can cheat by inserting false transactions, because if that happened, the MATHEMATICAL PROBLEM would present an error, nor that a STUDENT changes past transactions, since he would have to change the BINDER of all other STUDENTS and TEACHERS.

Flowchart


—
Translating the terms from the example:
BINDER = BLOCKCHAIN
QUEUE = MEMPOOL
PAPER = BLOCK
STUDENT = MINERADOR
MATHEMATICAL PROBLEM = PROOF OF WORK
TEACHERS = FULL NODE
PRIZE = BITCOINS

External Link: https://medium.com/@silvio.carlos/how-to-explain-blockchain-technology-to-your-family-92a0c530525

Donate:
BTC: 1AZjPoiWavKBP9SZHGZQMu8vrgUaEnDQxb
ETH: 0x46638E60DEc179e651e5D64E2F1488Cc8C99F08f

[Gerci]

First you have to explain what blockchain is, what bitcoin is to your family, how the performance of a blockchain business, you should explain in detail and clearly, so as not to arise doubts in your family about blockchain.
What is Blockchain?

The Bank records all the financial transactions they make in a 'ledger' (or 'ledger'). Decades ago, this ledger may be in the form of hundreds of dusty old books. Each new phrase that appears in the ledger is a record of a new transaction. These records are now digitized, but the ledger is still owned and controlled by a bank.

Blockchain is unique because this ledger is not managed by a single organization or party. Instead, the general ledger record is publicly distributed and managed by thousands of computers in the world at the same time. You can see all the transaction notes here-check it out, it's amazing.

This public accessible and public ledger is the main force of Blockchain. Every computer on the network can make new notes about new transactions, said Oscar Darmawan, President Director of Bitcoin Indonesia. When a transaction is recorded in this global ledger, it is impossible for anyone to remove the transaction records.

Why is this important?
Blockchain makes payment transactions happen and recorded without using a ledger managed by a bank. Initially, this is important for Bitcoin (the first currency in circulation using the technology), but now the general ledger technology can be used and applied to anything.

As the famous capitalist venture Marc Andreessen wrote: "For the first time, Blockchain gives an Internet user the opportunity to send a unique digital property to other Internet users. The transaction can be guaranteed safe, and everyone can know that a transaction has taken place and no one can resist the fact. "

Oscar Darmawan even recorded his wedding day in Blockchain's big book by putting his marriage promise into the many transactions that took place in the technology, to show that their promise will be forever recorded in a digital book that will not be changed by anyone.

How can Blockchain affect the government?

Maybe say goodbye to the central bank of the United States, the Federal Reserve?

If a government uses Blockchain to record all kinds of agreements or transactions, it would be impossible for someone to commit an act of corruption, Oscar Darmawan said. No single computer is capable of altering transactions already recorded in Blockchain, so "smart contracts" using this technology can pinpoint and pinpoint where their money flows-which will be a much better form of accountability than they are today . A company will not be able to falsify its account. All remittance transactions from government agencies will be recorded.

This system can also have an impact on the current central bank system, said a minister from the British government. Speaking to Wired Magazine, Minister Matthew Hancock said that "in a country where a currency needs a central bank to regulate its circulation in order to manage the country's economy, the central bank is definitely needed ... But most importantly, when people can already pay each other in currency which are not connected and fixated on the geographical location of a particular country, then the need for central banks will also be reduced. "

[24core]

I remember reading about several different methods of teaching bitcoin to kids or elders.

I like your method but there can still be some changes to simplify it even further.

[Silvio_Carlos_Junior]

First you have to explain what blockchain is, what bitcoin is to your family, how the performance of a blockchain business, you should explain in detail and clearly, so as not to arise doubts in your family about blockchain.
What is Blockchain?
...

@Gerci, You're absolutely right.
There are many other things that need to be explained before talking about the dynamics of the Blockchain.
This text attempts to explain the flow of Blockchain to lay people (like kids or elders).

I remember reading about several different methods of teaching bitcoin to kids or elders.

I like your method but there can still be some changes to simplify it even further.

@24core, I will try to simplify it.
Do you have any suggestion?

[stompix]

When the PAPER reaches its limit, that is, the lines available for writing are finished, the STUDENT adds a new PAPER to the BINDER, so that new transactions are recorded.

To add this new PAPER, the STUDENT needs to solve a MATHEMATICAL PROBLEM, which is based on the information of the registered transactions (e.g. Silvio, Arthur, 10 units) in the current PAPER.
The result of this MATHEMATICAL PROBLEM generates a code that will be written to the new added PAPER.

I stopped reading after this.
Piece of advice, before you try to explain something to somebody make sure you have a damn clue what you're talking about.

Nobody waits for the blocks to be full, it all depends on the speed of which the block is mined.
With 0 tx in the mempool and a block solved 2 seconds after the first it will be probably be empty.
The solving of the block has nothing to do with the transactions in the block.
Miners don't verify transactions , it's nodes that do this.

So, do the world and BTC a favor and stop explaining things you don't know and at the same time asking for donations for twenty lines of text.

[kaizerblitz]

By showing some of the videos stuffs in bitcoin on youtube and helps a lot explain to my family of what's technology today.

[jseverson]

I'm not dissing on your effort, because there was obviously a lot put into it, but this is still way too complicated. If you're explaining this to family then there's no way they need a representation of every single step. Heck, I'd bet majority of Bitcoin holders themselves don't know half of what you're talking about.

Just tell them it's public ledger of every single transaction that gets passed on to everyone so it's near impossible to attack unlike centralized tech like servers. Chances are they're nowhere near technical enough to grasp the inner workings, and if they are, then they'd learn much better if they read up themselves.