“Blockchain solves the problem of manipulation”
— Vitalik Buterin
Simplified Meaning:
Blockchain technology is designed to keep records secure and honest. Think of it like a digital ledger, or a special book that everyone can see and add to, but no one can change past entries. This makes sure that no one can cheat or lie about the information stored there. For example, if you were collecting money for a school trip, and you used a regular notebook to write down who paid, someone might secretly change the amounts later. However, if you wrote everything in a book that everyone could see, each person would know it’s accurate and trustworthy because no one can alter the old records. Blockchain does the same thing but with computers. It keeps financial transactions or other important data transparent and secure from tampering. So, if you use blockchain for transactions, you can feel confident that no one can manipulate the records to steal or deceive. This is especially helpful in areas like finance, where trust and accuracy are crucial. By using blockchain, people can make sure that records stay true and dependable, reducing the chances of fraud and corruption.