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Blockchain as a distributed ledger

Imagine that we have a large ledger where all financial transactions are recorded. In a normal situation, such a book could be in a bank, and only the bank would have access to this information. In the case of the blockchain, this book is not stored in one place. Instead, it is copied and stored on multiple computers around the world. Each of these computers is called a node.

Analogy: Imagine a group of friends who decided to keep a shared expense log. Instead of keeping one journal with one of them, each of the friends keeps a copy of the journal. Every time one of them makes a record, everyone else makes the same record in their logs.