How can blockchain be explained to ‘a grandma’? It’s not about gender, age, or relationship specifically, but being able to explain blockchain in a simple, accessible way is important.

Here’s what I wrote to a family member a few weeks ago. Let me know your thoughts. Any additions or suggestions?

“Thanks for asking! Blockchain is a new technology that was invented in 2009 to enable the transfer of value over the internet. Over the past 30 years, we’ve seen how the internet has spread all over the world and given access to information, changing our world in unexpected ways. Similarly, blockchain’s ability to transfer value might have profound impacts, although we’re still exploring the possibilities.

 

At its core, blockchain allows parties who don’t trust each other to transact without needing an intermediary. This means a person can digitally send a payment in-person at a cafe to buy a coffee, or to another person across the world, without using banks or credit card companies. This technology could also significantly alter how banks interact with each other both domestically and internationally, as well as how they relate to central banks, simplifying and reducing the cost and speed of transactions.

 

But blockchain’s potential extends beyond just money to include anything that holds value; it could be used in the settlement of stocks and securities, the transfer of property ownership, and is already being used in ticketing for events and art. Essentially, any process including value that requires an intermediary, or has settlement times, could benefit from this technology, making transactions easier and faster. Blockchain uses a type of math called cryptography to secure these transactions. This is why the term ‘crypto’ is sometimes used.

 

The first form of value transferred using blockchain technology was Bitcoin. Its success and functionality have inspired many to explore its use in other areas.”