Imagine you have an apple and you give it to me. Now I have the apple, and you don't. It's easy to know that the apple is mine because you have it in your hand, and I saw it pass from you to me. We don't need anyone else to tell us that the apple is mine.

Now, if instead of an apple, we're talking about a digital currency like Bitcoin, it's a little more complicated. How do you know that the digital currency I gave you is yours and only yours? I could have made copies of the currency and given it to other people as well.

To solve this problem, there's something called a blockchain, which is like a giant ledger where everyone records their transactions. If I give you a digital currency, everyone in the ledger knows and records it. That way, I can't give you a currency I don't have or give it to someone else at the same time.

So, Bitcoin is like a digital currency that lives in this giant ledger, and everyone can see who has it at any given time