Blockchain sounds like a way to keep boats anchored, which isn't a bad analogy, considering what the technology purports to do.
Here are some technical terms that describe how blockchain functions, including Markle trees, distributed ledgers, and cryptographic hashes. However, for simplicity’s sake, a simple analogy that help individuals who are not well-versed in computer science understand blockchain and realize its significance.
Imagine that we are a congressman in government who is involved in creating and passing laws. Whenever any single congressman would like to pass a new bill, it must be voted on by every other congressman in order to make it official. Additionally, whenever a new bill is passed, every congressman is alerted and given a list of the new bills that are passed.
Now, why is this important? If a congressman wanted to pass a bill himself, he couldn’t. If he added a new law to his own copy of the bills, then it would not be valid; everyone else would have a correct copy of successfully passed bills which would contradict the congressman’s altered version.
Similarly, Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain
The idea is that the blockchain creates a universally verifiable, immutable and public record of all the transactions in the chain. Blockchain is, in effect, a high-tech attempt to answer the question: how can we create enough trust between transacting parties peacefully to exchange things of value? Traditionally, trust has been created via intermediaries such as banks, brokers and, ultimately, governments (and armies). In the case of a distributed (or "decentralised") ledger system, the idea is that the need for a central authority is eliminated, since the system is self-reinforcing and self-policing. Moreover, since the records are kept communally in multiple sites, a distributed ledger is much harder to hack into.
Blockchain also has potential applications far beyond bitcoin and cryptocurrency.
From a business perspective, it’s helpful to think of blockchain technology as a type of next-generation business process improvement software. Collaborative technology, such as blockchain, promises the ability to improve the business processes that occur between companies, radically lowering the “cost of trust.” For this reason, it may offer significantly higher returns for each investment dollar spent than most traditional internal investments.
Financial institutions are exploring how they could also use blockchain technology to upend everything from clearing and settlement to insurance.
So let us see the transformation will cause by Blockchain
Since blockchain is decentralized, there are no intermediaries and no need for sharing platforms. You can rent out your home, car or any other connected smart object with no tech giants setting the rules and nibbling away at your profits