WTF is The Blockchain?

You need a few individuals who want to give up on banks or any third party. By mutual agreement, they have details of each other's accounts without knowing the identity of the other parties.

Everybody holds an empty folder with themselves to start with. As they progress, all these individuals will keep adding pages to their currently empty folders. And this collection of pages will form the register that tracks the transactions. 

In a transaction, one person tells everyone in the group that he wants to transfer money to another person. Everyone writes the transaction down, see that the person can indeed transfer the money and has enough balance.

With time, more people want to transfer money to others. Whenever anyone wants to make a transaction, they announce it to everyone, and everyone writes it down on their page. This continues until everybody runs out of space to record transactions, then they take a new page and start again.

Before the page is put away in the folder, it is sealed with a unique key that everyone in the network agrees upon so that no one can make changes. By sealing it with encryption, no one can make any changes to it. This sealing of the page is the crux of this method.

Blockchain can be viewed in the following way: Think of a single page as a Block of transactions. The folder is the Chain of pages (Blocks).