How To Explain Blockchain to Your 7-Year-Old

Even adults find it difficult to understand blockchain; so how do you explain blockchain to your child?

Credit: Inc. Magazine

You've just got back from work. You put your bag on the table and collapse into the couch. Just as you do, your 7-year-old son runs into your arms to greet you. As soon as he's done, he pulls out a question that you've barely wrapped your head around. “Mummy, what is blockchain?” How would you respond to your 7-year-old kid?

Blockchain technology is a revolutionary piece of technology that holds the potential to change the way we see the world. However, it's not more than 14 years old. As with any modern technology, a lot of people will struggle to understand it. Even some people who are currently using blockchain in one way or the other do not know how to explain it. 

At DABA kids, one of the things we love to do for fun is to break down complex concepts. But before we do, let’s define blockchain. As soon as we do, we will show you how to explain blockchain to your kids in a way they'd understand. This is important because your kids will continue to ask questions until they can understand. You probably will not get any rest until they do. 

Investopedia defined blockchain as “a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format.”

Blockchain is a digital ledger that contains documentation of transactions. These transactions are divided into blocks. Every block has a number of transactions that will make it complete. As soon as it is complete it is added to the previous block and these blocks that are added to each other form a chain. That is why it is referred to as the blockchain. 

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Confusing, right? 

So how do you explain this to your 7-year-old without the technical jargon?

Remember that if you must explain to kids, you have to use illustrations they are familiar with. This time, we will use a book, and a bit of magic. You can find a book around the house to explain it. Then you can put all the knowledge of magic they have learned from Hogwarts. 

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Tell him that blockchain is like a magical big book. Everybody has a copy of this magical big book. Once you sell something to somebody, the details of that transaction are automatically written inside this magical big book. As soon as the details of this transaction are written inside your own big book, it magically appears inside the big book that belongs to everybody. That way, even if you are in America and someone writes something in their big book in London, you'll immediately see it where you are. 

Tell him that because of this book, someone cannot steal from you or accuse you of stealing from them. Everybody can see what everybody is buying or selling. You can also use this book to find the original owner of any item that has been sold. How cool is that? 

Finally, tell him that because everyone can see what is written in the book, Blockchain allows people to trust themselves. 

And this is how to explain blockchain to your 7-year-old. Ask him to explain it back to you so you are sure they understand.

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Are you a parent reading this? Do you want to learn more ways to groom your child in a tech-driven world? Do you want to position your child for the future? Then register for the DABA Kids Prelaunch Event with Parents coming up on Saturday, March 26, 2022. Visit www.dabakids.com to sign up now.