Explaining Blockchain to Kids
Frustrated with his life delivering burritos for tips, Amir is lured by an entrepreneurs talk about ‘Make your money work for you’ and gets into Crypto. He soon finds out that he’s being used by the crypto bros!
The boys are joined by Jackson Shembekar. He shares how he’s made 7 figures in crypto and why he’s intrigued by NFTs/web3. & more!
What is Blockchain?
Blockchain is the backbone of cryptocurrencies like Bitcoin, but it’s also widely used in different sectors to foster transparency, security and trust. It’s a special kind of database that securely records transactions in blocks of data and is immutable through cryptography.
It’s spread across a network of computers so that it’s difficult for any one computer to control all the information. This allows it to verify information quickly and accurately.
It’s also more affordable than paying for a third party to verify a transaction. For example, when Matt sells his car to Joe, he might have to pay a lawyer to transfer ownership over the deed. But if the transfer was recorded on a blockchain, they could cut out the middleman and save money. This is how blockchain makes business more efficient, transparent and trusted. It’s becoming an essential part of the digital world.
What is the future of Blockchain?
A blockchain is an incorruptible digital ledger that can be programmed to record not just financial transactions, but virtually everything of value. From product inventories, to state identifications, to deeds to homes, the potential is enormous.
Blockchain is already being used in business to reduce the risk of fraud and mistrust, save time, cut costs, and create tighter security. For example, companies can use blockchain to track the origins of food products as they travel around the world, potentially preventing contamination and even saving lives.
Blockchain is also being used to track the ownership of digital assets, such as music and artwork, enabling people to trade and sell these items without a middleman. This could be particularly useful in developing countries where stable currencies and financial systems are rare, reducing costs and providing new opportunities for global commerce. The future looks bright for this revolutionary technology.
How to explain Blockchain to a child?
When explaining Blockchain to kids, it’s important to keep in mind that the technology is new and still evolving. Use age-appropriate language and visuals to help them understand the concept. For example, younger children might find it easier to understand the blockchain process by comparing it to a jigsaw puzzle. Each time a transaction is verified and added to the blockchain, it’s like putting another piece in the jigsaw puzzle.
It’s also helpful to explain the decentralization of the blockchain network. All of the information is recorded across numerous computers simultaneously, making it difficult for a single person to hack the system and manipulate data.
It’s also important to talk with your children about the risks involved with investing in cryptocurrencies. The value of cryptocurrencies can fluctuate significantly, and there are many scams associated with the industry. Be sure to educate your children about the differences between reputable sources and ill-informed chatter or outright scams.