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Bitcoin & Blockchain: Pretend Money and Complicated Ledger?

Bitcoin & Blockchain: Pretend Money and Complicated Ledger?
Photo by Jievani Weerasinghe / Unsplash

If you're reading this, chances are you've heard of blockchain and bitcoin before. But in case you haven't, let me break it down for you: a blockchain is a fancy, overly-complicated way of keeping track of things, and bitcoin is pretend money that only exists on the internet.

Now, you may be wondering why on earth we would need such things. Well, let me tell you, the world of finance is confusing and complex, and blockchain and bitcoin are here to save the day! By using a decentralized and distributed ledger, blockchain ensures that transactions are secure and transparent.

But don't just take my word for it. The fact that people are willing to invest real money (well, as real as bitcoin gets) into these virtual assets should be proof enough of their worth. Plus, think of all the fun we can have with bitcoin memes and blockchain jokes. I mean, who doesn't love a good "How do I convince my grandma to invest in bitcoin?" meme?

In all seriousness, though, blockchain and bitcoin have the potential to revolutionize the way we conduct transactions and handle money.

But, Lavneet your explanation of the Blockchain and Bitcoin was not very helpful, We still can't wrap our head around it, what exactly it is?

I get you, I got carried away in my initial explanation. But hear out this conversation I had with my friend Sachin.

Sachin: Blockchain is an overly-complicated way of keeping track of things.

Me: Yeah, that's one way to put it, but seriously, Blockchain is a decentralized and distributed ledger that allows for secure and transparent record-keeping. Decentralized means that no single entity or person controls it, and distributed means everyone owns the copy, so no worry of downtime like banks.

For example, let's say you want to buy that fine bottle of single malt from me. We can use blockchain to securely and transparently record the transaction without the need for a third-party intermediary like a bank

Sachin: Ok. And what about bitcoin?

Lav: Bitcoin is a digital currency that runs on the blockchain. So, for example, if you want to pay me for that whiskey using bitcoin, we can use the blockchain to securely and transparently record the transaction without the need for a bank to process it.

Sachin: Ah, I see. But is it secure?

Lav: Transactions are secure and transparent, thanks to the open nature of blockchain. Plus, there's no central authority controlling it, so it's resistant to censorship and tampering.

Blockchain and Bitcoin are powerful technologies that have the potential to revolutionize the way we conduct transactions and handle money. Blockchain offers a decentralized and distributed ledger for secure and transparent record-keeping, while bitcoin is a digital currency that allows for fast and efficient global payments without the need for intermediaries.

While there are still challenges and uncertainties surrounding the widespread adoption of these technologies, their benefits make them worth exploring in. With continued development and innovation, blockchain and bitcoin have the potential to greatly impact the financial world and beyond.