Blockchain explained in a simple way

When two or more computers are connected as partners with equal access and control to a set of information, they are said to be in peer-to-peer, when this information is about cryptocurrency, then is called blockchain. Blockchain is a record of transaction which is copied and shared among all the computers in the peer-to-peer network. This records are stored in a digital book called a ledger or block, a network of such blocks is called a chain or blockchain. The cryptographic information stored in the block keeps maturing with time and data.

Every participants in the Blockchain network have cryptographic keys to encrypt or decrypt each transaction information. The participants (also called nodes) in the network are aware of each other, they are also aware when a new node is added or removed.

Information, data and records on a blockchain are secured in such a way that it is difficult to hack or cheat. A number of transactions are stored in each blocks in the chain across the network. A transaction record is added to all participants ledger every time a new transaction is made, and these records are like mathematical constant which cannot be changed. DLT or distributed ledger technology involves multiple participants who manages the distributed database. Therefore, blockchain is a data management system.

The diagram above explained the properties of distributed ledger technology, I won't write more on the properties as I want to keep this post on defining blockchain.

Blockchain can be an agreement of goods transfer between just two parties, money transfer between two individuals, transfer of ownership or any other simple agreement or transactions.