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prompter
Can you explain how blockchain works in simple terms?
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0e77e895-e051-4343-a46a-1fb836e6ebe2
assistant
Sure, I'll do my best to explain how blockchain works in simple terms.

At its most basic level, a blockchain is a digital ledger that records transactions in a secure and transparent way. Think of it as a shared spreadsheet that multiple people can access and edit, but once something is recorded, it can't be altered or deleted.

Every time a transaction is made on a blockchain, it is verified and added to a "block" of transactions. Each block is then cryptographically secured and linked to the previous block, forming a chain of blocks - hence the name "blockchain". The blocks are stored on multiple computers or nodes in a decentralized network, making it very difficult for any one party to manipulate the system.

In order to add a new block to the chain, it must be validated by the network of nodes using complex mathematical algorithms. This process is called "mining" and it requires a lot of computing power. Miners are incentivized to participate in the network with rewards in the form of cryptocurrency.

Once a block is added to the chain, it becomes part of a permanent and transparent record of all transactions on the blockchain. This makes it very difficult for any one party to commit fraud or manipulate the system, since any changes would have to be approved by the entire network.
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15fc7e5e-c81d-48d5-90f2-2b26dfb6a784
prompter
Could you make it simpler? Like, using bullet points summarizing everything?
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8a473ba6-fd35-4a25-909f-ebfbd2dc6cf0
assistant
Here are the simplest bullet points that explain how blockchain works:

- Blockchain is like a digital ledger that records transactions.
- Each transaction is a block that is added to the chain of blocks, forming a chain of transactions.
- Once a transaction is added to the blockchain, it cannot be changed or deleted. This makes it a secure and reliable record.
- To add a block to the chain, it needs to be verified by a network of computers called nodes.
- Nodes use complex algorithms to ensure that the new block is valid and authentic.
- Once the block is verified, it is added to the blockchain, and a unique code is created to represent it.
- This unique code is called a hash, and it ensures that the block cannot be altered without detection.
- The blockchain is decentralized, meaning it is not stored in a single location, and all nodes have a copy of the chain.
- This decentralization makes it nearly impossible for hackers to compromise the blockchain.
- Blockchain can be used for many applications, including cryptocurrencies like Bitcoin and Ethereum, as well as supply chain management and voting systems.