How do you explain blockchain and cryptography to a non-technical audience?

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Blockchain and cryptography are two key concepts that underpin many applications of modern technology, such as cryptocurrencies, digital identity, and smart contracts. But how do you explain these complex and abstract ideas to a non-technical audience? In this article, we will try to simplify and illustrate some of the basic principles and benefits of blockchain and cryptography, using analogies and examples that anyone can relate to.

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1 What is blockchain?

Blockchain is a system of storing and transferring information in a distributed and decentralized way. You can think of it as a ledger or a record book that is shared and updated by many participants, instead of being controlled by a single authority. Each entry or transaction in the ledger is verified and encrypted by a network of computers, called nodes, using cryptography. These transactions are grouped into blocks, and each block is linked to the previous one by a unique code, called a hash. This creates a chain of blocks, or a blockchain, that is secure, transparent, and immutable.

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Micah Giszack, MBA

Propane Marketing Manager @ Foster Fuels
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Why is the blockchain so potentially revolutionary? Think of the blockchain as a permanent record book that nobody, not even the person who added to it, can change later on. If you send $10 in cryptocurrency to a friend, the blockchain records that transaction and keeps it forever. While your friend could refund your money, there’s no way to hide the original transaction. This kind of technology is already being used in journalism to show a permanent list of changes and redactions made to an article. That way, readers can still see the most up-to-date info, but the publishers can’t go back and change information secretly.

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2 What is cryptography?

Cryptography is the science and art of creating and using codes to protect and communicate information. It involves two main functions: encryption and decryption. Encryption is the process of transforming information into a secret and unreadable form, using a key or a password. Decryption is the reverse process of recovering the original information from the encrypted form, using the same or a different key. Cryptography is used to ensure the confidentiality, integrity, and authenticity of information, especially in digital contexts.

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Faraz Alam

Experienced Project Delivery Manager | Driving Cross-Functional Teams to Deliver Complex Projects | Expert in Strategic Planning, Process Improvement, & Stakeholder Management for Telecom Domain
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Cryptography is not only related to Crypto currency. It is embedded to your daily life like you add more security on your credentials and messages. For example; Your social media platform app like WhatsApp etc or your online banking.

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Vivek Muthuswamy

PKI | SSL/TLS | HSM | ADCS | ACME | DATA ENCRYPTION
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Cryptography is a practice of securing information by converting it into a code, so only authorized people can read it. It's like using secret codes to keep information private and safe.

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3 How does blockchain use cryptography?

Blockchain uses cryptography in several ways to achieve its goals of security, transparency, and immutability. First, it uses encryption to protect the data stored in each block, making it difficult for anyone to tamper with or falsify. Second, it uses hashing to generate the unique code that links each block to the previous one, creating a chain of evidence that proves the history and validity of the ledger. Third, it uses digital signatures to verify the identity and authorization of the participants in the network, ensuring that only legitimate and approved transactions are recorded.

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4 What are the benefits of blockchain and cryptography?

Blockchain and cryptography offer numerous advantages for various domains and applications. For example, in financial services, these technologies enable the development of digital currencies, such as Bitcoin and Ethereum, that are independent of traditional banking systems. They also enable the implementation of smart contracts, which are self-executing agreements that are enforced by the blockchain, eliminating the need for trust and third parties. Furthermore, blockchain and cryptography can be used to create and verify digital identities, such as passports, licenses, and certificates, that are stored and controlled by users rather than centralized authorities. In addition, these technologies can be used to protect and share personal data with consent and privacy. Lastly, blockchain and cryptography can be used to track and trace products across the entire supply chain from the source to the destination, ensuring the quality, authenticity, and sustainability of goods. They also enable the automation and optimization of processes such as inventory management, payments, and audits which can reduce costs and risks.

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5 How can you learn more about blockchain and cryptography?

Blockchain and cryptography are fascinating and evolving fields that offer many opportunities for learning and innovation. If you're looking to explore these topics further, there are various online resources and courses available to help. For instance, Coursera offers a free online course titled 'Blockchain Basics', which introduces the fundamentals of blockchain technology and its applications. CryptoZombies is another great option, providing an interactive online game that teaches Solidity, the programming language of Ethereum. Additionally, Khan Academy provides free video tutorials and exercises on cryptography and computer science.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Jeffrey Loya

CTE Teacher * Career College Exploration * General Employability Skills * Principles of Business Marketing & Finance
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Blockchain is like a digital ledger that helps to securely store & transfer info or assets, like money, over the internet without the need for a middleman, like a bank. It is a decentralized system, which means that everyone can see the info, but no one person or organization controls it. Cryptography is like a secret code that is used to make sure that the info stored & transferred on the blockchain is kept private & secure. It involves the use of mathematical algorithms & keys to scramble & unscramble info, making it unreadable to anyone who doesn't have the correct key. This ensures that all transactions are verified & authenticated before they are added to the ledger. Together, they make online transactions safe & reliable for everyone.

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Faraz Alam

Experienced Project Delivery Manager | Driving Cross-Functional Teams to Deliver Complex Projects | Expert in Strategic Planning, Process Improvement, & Stakeholder Management for Telecom Domain
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One of the biggest concern of Blockchain networks is scalability. When the number of users and transactions increases, the time and computational power required to process transactions also increase, leading to slower transaction speeds. Second big concern is the complexity, most of the blockchain interface is not a user friendly for average and non technical users.

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How do you explain blockchain and cryptography to a non-technical audience?

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1 What is blockchain?

2 What is cryptography?

3 How does blockchain use cryptography?

4 What are the benefits of blockchain and cryptography?

5 How can you learn more about blockchain and cryptography?

6 Here’s what else to consider

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