Blockchain Explained: What It Is and How It Works

[00:02] global financial system operating 24/7 without interruption, without banks, without intermediaries, and without any single entity controlling it. This system is blockchain. In this video, we'll explain what blockchain is, how it works, and the most important companies currently operating that you can invest

[00:17] in. So get ready and pay close attention until the end of the video. The first thing we'll discuss is what blockchain is and how it works. To clarify this for you, my dear millionaire, imagine you live in a small village. This village has a very large ledger where

[00:32] all transactions that happen in the village are recorded, such as who sold to whom, who borrowed how much, and who paid what. But the problem is that this ledger is in the hands of only one person, and if that person wants to change or delete any information in the ledger, no one will know. So, all the villagers came up with a brilliant idea:

[00:48] instead Instead of just one ledger in the entire village, everyone would have a copy. Every time a new transaction occurs, everyone would record it simultaneously. They also created a currency linked to the ledger, calling it, for example, "Naif" (which is my name). This currency is

[01:02] used by the villagers for daily transactions such as buying, selling, paying, transferring, and other dealings. Now, if someone tries to alter, falsify, or tamper with their ledger, the other copies held by the

[01:15] villagers will immediately detect it because it's completely different from the other ledgers. This makes any cheating or manipulation impossible. What the villagers have done here is the same idea as blockchain, or a chain of blocks. A blockchain is a

[01:29] digital ledger distributed across thousands or millions of devices worldwide. Every transaction is recorded in this digital ledger, which is called the blockchain. Its main advantages are transparency and security. Because every copy on the network verifies the data,

[01:45] manipulation or forgery becomes virtually impossible. To make this clearer, imagine for the second time that every house in the village has the exact same ledger. Any sale or purchase that occurs is immediately reported, and everyone writes the same line at the same moment. Instead of a single copy susceptible to error

[02:01] or corruption, we now have many identical copies. If even one copy is tampered with, all the others will detect it instantly. However, the digital ledger is very large, so we divide it into pages. digital ledger is very large, so we divide it into pages.

[02:17] page is called a block. As each block is filled with transactions, new transactions are placed in a new block. Every transaction that occurs in the digital currency is a line within the block, whether it's a purchase, sale, sending, or receiving. The face of

[02:31] this block is... In a transaction list, there's a date and time, a smart seal, and a link to the previous block. This means the new block is linked to the one before it, and so on, until a chain of blocks is formed. That's why

[02:45] it's called a blockchain. So, who closes this page? Before any page or block closes, someone has to prepare it and apply the rules. For example, in networks like Bitcoin, a difficult mathematical puzzle has to be solved. But of course, no one solves these puzzles manually;

[03:00] powerful computers are used. The first computer to solve it gets the honor of closing the page, plus a reward. This is called proof of work, which we usually refer to as an edit. In other networks, like Ethereum and Solana, the choice falls

[03:15] on computers or even a balance as collateral. The larger the balance or collateral and the more it adheres to the rules, the higher its chance of closing. The page takes the block, and we call it Proof of Work, which is proof of ownership. As a regular user, whether you're paying a bill, buying online,

[03:31] or transferring money internationally, you don't need to understand these equations. The important thing is that the transaction is closed within a block and eventually appears in your wallet. Now, let's talk about the seven most important networks currently available that you can invest in if you like. Before I tell you what they are, I advise you to subscribe to the

[03:45] upcoming videos, and also like the video so it reaches as many people as possible and everyone can benefit. We'll start with the first network, the origin of all networks: Bitcoin. Its basic network, the origin of all networks: Bitcoin. Its basic idea is that it's a network designed to store and transfer

[03:59] value without an intermediary. That's why many people call it digital gold. As I mentioned earlier, Bitcoin works using a mechanism called Proof of Work, resulting in very high security and decentralization. So, when should you consider it? As an investment, if your primary goal is

[04:13] long-term growth and preserving the value of your money over the years, Bitcoin is your first choice. However, my advice, and I mean it simply, is that your wallet must contain Bitcoin. Now that we understand what digital gold is, let's move on to the network that transformed blockchain from a mere transaction tool into a platform for running

[04:29] complete applications: the Ethereum network. This network is essentially the global blockchain computer, and I call it "digital silver." Its currency is E, and Ethereum introduced smart contracts to the world, thus opening the door to DV,

[04:43] NFTs, games, and Web 3.0—a complete ecosystem. It operates using a mechanism called Proof of Stake, which I mentioned earlier. It also boasts the largest ecosystem for developers and protocols. The third network we'll discuss is BNP Paribas, a decentralized blockchain system

[04:57] affiliated with the Binance platform. Its digital currency is BNP Paribas, which gives you... A quick and practical entry into the world of Web 3.0 means high speed, low fees, and a system that makes it very easy for both beginners and professionals. Its architecture is divided into two main parts: the first

[05:12] is BNP SmartChain, which is the main blockchain for decentralized markets, DFi protocols, and NFTs; the second part is OPNP, which is the second layer, an accelerated layer for high-volume transactions, suitable for daily payments and resource-intensive applications. As for the network currency,

[05:27] BNP, its role is very practical because you use it to pay network fees (network fees) on BSC and OPNP. Furthermore, if you enable BNP payments on the Binance platform itself, you get a discount on trading fees. Of course, if

[05:41] you don't have the Binance app, you can register and download it from the link in the video description below. The great thing about BNP is that it gives you early access to projects launched on launchball, launchpad, or even MegaDrop. You can also stick

[05:55] it in Shariah Earn on Binance and earn returns from your Solk cards. The fourth network is Solana, and its token is Sol. Solana's motto is "Speed ​​First." We can say that Solana is more like a fast mobile application with near- instant transactions and very nominal fees, making it

[06:09] suitable for gaming and fast trading. Many people consider it one of the Ethereum Killer tokens. The fifth network is Polygon, which offers Layer 2 solutions on top of Ethereum, or you could say it's a side network connected to Ethereum. It has almost the same tools

[06:24] but is cheaper and faster, making it very suitable for daily use, NFTs, gaming, and light DFi without completely abandoning the Ethereum ecosystem. Its token is Bull. The sixth network is Avalanche, which focuses heavily on high final speed and gives you the ability

[06:39] to create a custom subnet for your application or company with your own rules. Your own cryptocurrency is EVEX, and the seventh network we have is Tron. This network is very famous for fast and cheap payments and transfers, and it's heavily used for converting Tether (

[06:55] USDT). However, it's less well-known for smart contracts compared to the other networks. Its currency is TRX. And the last network— if you know what it is, or what you think it is, write it if you know what it is, or what you think it is, write it in the comments below. That's all.