Working of Blockchain Technology With Example

ABSTRACT:
Working of Blockchain With Example
To understand Blockchain working, let’s take an example, imagine you & your friend bet $50 on the colour of car your third friend would buy, you bet it for white & your friend bets it for Red. There are three ways to deal with this bet:

You can trust each other in your words.
You both can turn it into a contract. Where in this contract both of you are prone to pay the amount and if anyone takes a foot back winner will get additional money to cover the legal expenses? This method doesn’t seem to be a good method to deal with transactions.

Both of you can involve a third party into your deal and both will give $50 to that trusted third party and at the end, the winner would receive all the money by the third party.

If we consider both first and second case, they do not seem to be appropriate because of the reason:

You can’t trust each and every person u bet as each and every one is not a friend of your and even if he is you can’t risk it.

Getting into a contract is also not a conventional way because this technique will require a lot of time and money, which is not appropriate to invest if the reward money is too less.

The Blockchain technology makes sense because it offers you with the liberty of this third party which is relatively safe, fast and economical too.

Have a look at the advantages and disadvantages of Blockchain (https://data-flair.training/blogs/advantages-and-disadvantages-of-blockchain/)

[READ THE FULL ARTICLE]