Simplest most way one could Understand what the heck is all this hype about Cryptos:

Many People are going Crazy over Cryptos but only a few know the Concept.

Let's Understand :

Alice and Adam are friends, Alice has a Blue pen. Alice now gives the pen to Adam for a 1$.

Try to Understand what happens here.

When Alice Gives Adam the Blue pen, there is no requirement of a witness to confirm that Alice gave her blue pen to Adam, as Adam already has the pen with him.

This Person to Person exchange makes the need of any third party irrelevant.

Now in this Process, Alice no longer possess the apple and so she has no control over it.

Adam has the apple now.Alice now writes in her ledger that she received a 1$ from Adam for the Pen she sold.

Now let's try a different example in a digital way.

Alice has an mp3 audio file and she wants to give it to Adam for a 1$.

She sends the mp3 file to Adam through E-mail.

There is a situation here though, what if Alice makes multiple copies of the Audio file and keeps it safe on her computer? She could earn as many dollars as many copies she has by selling it to different people.

There is another problem here.Alice tells Adam that she sent the mp3 file in his e-mail.Adam Pays Alice a 1$.Adam goes home and checks his e-mail but there is no mp3 received.

Adam Calls Alice but she confirms that she has sent it and she doesn't know why he didn't receive the mp3.Even if the witness is a ledger, the digital ledger stored in a computer could be hacked and the value of anything could be changed.

This is a common problem with digital transactions.There is the requirement of a witness.But what if there is a witness and the witness lies.

To counter all these Problems Crypto was Invented and here is how crypto addresses these Problems and how it actually works.

How Crypto Works:

Think 100 people attend a transaction ceremony.

Here Alice is going to give Adam the mp3 file and the ledger Alice has is now with 100 members attending the ceremony and when Alice does the transaction with Adam the ledgers in 100 computers of the 100 attendees update in real-time.

This way if one of the 100 people wanted to cheat the ledger and change the value in his system, the entire network of 100 will reject, as 99 ledgers say something different.Now he has to be Barry Allen a.k.a the Flash to change the values physically in each computer at the same time.Now when these 100 attendees help in keeping the ledger safe and carrying out the transactions, they receive a reward in the form of cryptos and that is the way cryptos gets Generated. These 100 people are the millions of computers spread across the planet.And the mp3 is an example of bitcoin or Steemit and many other Crypto currencies.

I am more than grateful to help , if you have any queries hit me in the comment section.

Regards,Dave.

Didn't yet Understand what the heck is Crypto and how it works?

Simplest most way one could Understand what the heck is all this hype about Cryptos:

Let's Understand :

How Crypto Works: