Explaining blockchain to a 5-year-old

3 min readFeb 3


If you are new to blockchain and want to know more about it but keep getting overwhelmed with all the jargon, we have your back. Read on to understand blockchain in simple terms and make the most of it.

Blockchain is a digital ledger that records transactions. It is a chain of blocks, where each block contains information about the previous block. This information is stored on many computers all over the world, and each computer can access the information. The information on the blockchain is protected by encryption so that no one can change it.

Let’s understand it from the point of view of a 5-year-old. A blockchain is like a special notebook that lots of people share and use to keep track of things that are important to them. Every time someone wants to add something new to the notebook, they have to ask their friends to help them. Then, all the friends check the notebook together to make sure everything is correct.

Once they all agree that the new thing is okay, they write it down in the notebook and they all keep a copy of it. This way, everyone always has the same information and no one can change it without everyone else knowing.

Think of a ledger as a notebook where you write down what you spend your money on. The blockchain is like a digital version of this notebook that is shared with many people. Each time you make a transaction, it is recorded in the blockchain. This way, everyone can see what transactions have been made and how much money is left.

The blockchain is a decentralized system, which means that there is no one person or organization in charge of it. This makes it very secure because if one person or computer tries to change the information, the rest of the computers will see it and stop them.

The blockchain is also transparent, meaning that everyone can see what is happening. This helps to keep everyone honest because everyone knows what is going on and can see if someone is trying to cheat.

Blockchain is used in cryptocurrency to create secure and transparent transactions. When you use cryptocurrency, your transactions are recorded in the blockchain. This means that your transactions are protected by encryption and can be seen by everyone on the network. This helps to prevent fraud and makes the whole system more secure.

So, now that you are all clear about what blockchain is and what it does, you can easily start your crypto journey. NeoFi is the perfect way to get your feet wet in the cryptocurrency world. Featuring an easy-to-use platform designed with simplicity in mind, NeoFi makes buying crypto a breeze — no matter what level of experience you have with digital currency.

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About NeoFi

NeoFI is a crypto-investment solution designed to automatically help every scale investor diversify their investment portfolio and risks. NeoFi relies on NeoFi baskets to help investors invest in their preferred niche with a single click.

NeoFI is working to onboard the next billion users to the cryptocurrency space. The project believes that its efforts will revolutionize the world of cryptocurrencies and level the playing field in the market by offering more tools to retail investors in the market.

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