What are ‘cryptos’ and the blockchain?
Imagine a digital web, much like the internet; a global network of people’s computers acting as nodes in the Bitcoin universe.
You decide to send 1 Bitcoin across the internet to a friend. Unlike a real coin, a Bitcoin is a digital string of numbers and letters that carry with it ALL the information of every transaction it has EVER been involved in.
You transfer your Bitcoin to your friend, much as you would with Internet banking, except that rather than a bank having to deal with intermediaries to move that money, your little bundle of Bitcoin information enters the network and is sent out to EVERY node in the web.
These nodes verify the transaction and once enough nodes agree that your Bitcoin is legitimate, the information of that transaction becomes the next block in a chain that has tracked every Bitcoin transaction ever. That Bitcoin is now owned by your friend and it only took a few minutes to arrive and was practically free.
This chain (or distributed ledger) is public and indelible, providing transparency, and is protected and powered by its decentralisation.