Imagine a giant digital spreadsheet that keeps a record of all transactions ever made. This spreadsheet is not stored in a single place but is duplicated and stored on multiple computers worldwide. Instead of one person or organization controlling this spreadsheet, it is maintained collectively by a network of people called miners.

When someone wants to make a transaction, such as sending or receiving money, they create a new “block” on the spreadsheet. This block contains information about the transaction, like the sender, the receiver, and the amount transferred. Before this block can be added to the spreadsheet, it needs to be verified by the miners.

The miners work together to validate the transaction and make sure it is legitimate. They use complex mathematical algorithms to solve puzzles, and the first miner to solve the puzzle gets to add the block to the spreadsheet. Once the block is added, it cannot be changed or tampered with because it contains a unique code that connects it to the previous block.

Since the spreadsheet is duplicated on multiple computers, everyone in the network has a copy of it. This means that if someone tries to alter a transaction on their copy, it won’t match the copies held by others, and the alteration will be rejected. This makes the system very secure and resistant to fraud.

The blockchain technology is often associated with cryptocurrencies like Bitcoin because it was originally created for that purpose. However, its potential applications go beyond digital currencies. It can be used for various purposes, such as tracking ownership of assets, verifying the authenticity of documents, or ensuring the transparency of supply chains.

In simple terms, blockchain is like a digital ledger that records transactions, and because it is maintained by a network of computers, it is secure, transparent, and decentralized.