Bitcoin. A term that needs no introduction. From the dorm rooms of pseudonymous entity called Satoshi Nakamoto to board rooms of the world’s largest asset management companies like Blackrock, Bitcoin has come full circle.

Now that pop culture references of Bitcoin are on the rise, it is time that this asset of the century is also taught in the school curriculum. But until that happens, are you ready to onboard kids and elderly in your families?

No? Here’s something that might help. Today, with absolutely zero jargon, we will try ELI5 how Bitcoin works.

Bitcoin: The Santa’s Fool Proof System

There’s a young kid called Sharry. This chap is 7 years old and wants a dog for Christmas. He has been a good boy for this entire year, so there shouldn’t be a problem. So he does what he does best.

Sharry and His Christmas Letter

To make sure he gets what he wants, Sharry writes a detailed letter to Santa.

He carefully describes the dog’s size, breed, color, and promises to take good care of it. 

But… There’s a catch. Sharry can’t mail the letter himself. So, he gives it to his dad and asks him to send it.

And, just like most dads, his dad hates pets. 

Sharry’s dad, being the sneaky middleman, opens the letter. He doesn’t want a dog in the house, so he replaces “dog” with “baseball bat.” 

When Santa reads the letter, he sees no mention of a dog. So on Christmas morning, Sharry wakes up to find… a baseball bat.

Not what he wanted.

Sharry’s Lesson: The Problem With Middlemen

Sharry realizes that the problem isn’t Santa—it’s the middleman (his dad).

So, next year, he finds a new way to send his letter…

Enter: The North Pole Blockchain

This time, instead of relying on his dad, Sharry uploads his letter to the “North Pole Blockchain.”  

What’s different?

1. Everyone is on the Blockchain – Santa, the elves, Sharry, his friends, their parents. Everyone who has to do with Santa and Christmas is a part of this Blockchain. 

2. One rule? Everytime someone uploads the letter, a copy is shared with everyone on this Blockchain.

Now once Sharry successfully ‘uploads’ his newsletter to this Blockchain, his dad is back in action. This time, Sharry’s dad tries to change ‘dog’ to ‘chair.’

But since everyone has the original copy, his edit is rejected.

So what does Sharry get for Christmas? A dog. Of course!

The Bitcoin Connection:

Now, let’s swap Santa with Bitcoin.

• Sharry = A person who wants to send money.
• The letter = A Bitcoin transaction.
• Dad = Banks and middlemen who manipulate transactions.
• North Pole Blockchain = Bitcoin’s public ledger that everyone can see.
• The failed edit = How Bitcoin prevents fraud.

In the traditional banking system, when you send money, banks control it.
They can block, change, or delay transactions (just like Sharry’s dad changed his wish).

But with Bitcoin, there’s no dad (bank) in the middle.

Instead, every transaction is verified by everyone, and no one can secretly alter it.

This makes Bitcoin secure, decentralized, and unstoppable—just like Sharry’s North Pole Blockchain. 

So, whether you’re 7 years old and asking for a dog, or 30 years old and sending money… Bitcoin makes sure you get exactly what you asked for.

About Persistence One

Persistence One is building the BTCFi Liquidity Hub, enabling fast, near zero-slippage swaps for XPRT, BTC-variants, and BTCfi tokens on Persistence DEX.

BTCFi’s rapid growth has created multiple BTC-related assets, making fragmentation a big challenge. Persistence One will provide a single liquidity hub, simplifying value transfer across the Bitcoin ecosystem.

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