History of Blockchain
Blockchains will replace networks with markets. - Naval
What exactly is Blockchain?
A blockchain is a disseminated network that comprises computer systems associated with the Internet, which all together keep the account of transactions. In the Blockchain, one record is dispersed and protected across the system. Each computer in the group approves the exchanges. However, nobody has power over the network, not like various clients functioning in a centralized network.
A blockchain incorporates a sequence of blocks, which are information units used to store value-based data of the organization. To add a block into a blockchain, these steps ought to occur:
When an exchange is performed, then it should be confirmed by a group of computer networks. The exchange should be compiled in a block; after getting approval from the network group. The digital signature of the sender and the receiver and the dollar’s value has to be stored in a block.
A block should be given a hash to separate it from different blocks. This block additionally contains data of the hash of the newest added block into a blockchain. When hashed, this block can be put into the Blockchain.
After the inclusion of a new block in the Blockchain, the complete information of this exchange will be public, and any user in the network can explore this exchange data, for example, who sent it? Who received it? Who added this exchange to the block? When did the exchange occur? And so on. The information is apparent and auditable yet not editable.
A block is only digital data. A “chain” is characterized as a common information base. In this way, when we say Blockchain – we intend to discuss the digital data which is kept in a public data set.
History of Blockchain
Let’s discuss the timeline of blockchain evolution:
1991: In 1991, researcher scientists named Stuart Haber and W. Scott Stornetta introduce Blockchain Technology. These scientists wanted some Computational practical Solution for time-stamping the digital documents so that they couldn’t be tempered or misdated. So both scientists together developed a system with the help of Cryptography. In this System, the time-stamped documents are stored in a Chain of Blocks.
1992: After that in 1992, Merkle Trees formed a legal corporation by using a system developed by Stuart Haber and W. Scott Stornetta with some more features. Hence, Blockchain Technology became efficient to store several documents to be collected into one block. Merkle used a Secured Chain of Blocks that stores multiple data records in a sequence. However, this technology became unused when the Patent came into existence in 2004.
2000: In the year 2000, Stefan Konst published his theory of cryptographic secured chains, plus ideas for implementation.
2004: In the year 2004, Cryptographic activist Hal Finney introduced a system for digital cash known as “Reusable Proof of Work”. This step was the game-changer in the history of Blockchain and Cryptography. This System helps others to solve the Double Spending Problem by keeping the ownership of tokens registered on a trusted server.
2008: After that 2008, Satoshi Nakamoto conceptualized the concept of “Distributed Blockchain” in his white paper: ”A Peer to Peer Electronic Cash System”. He modified the model of Merkle Tree and created a system that is more secure and contains the secure history of data exchange. His System follows a peer-to-peer network of time stamping. His system became so useful that Blockchain become the backbone of Cryptography.
2009: After that, the evolution of Blockchain is steady and promising and became a need in various fields. In 2009, Satoshi Nakamoto Releases Bitcoin White Paper. Blockchain technology is so secure that the following surprising news will give proof of that. A person named, James Howells was an IT worker in the United Kingdom, he starts mining bitcoins which are part of Blockchain in 2009 and stopped this in 2013. He spends $17,000 on it and after he stopped he sells the parts of his laptop on eBay and keep the drive with him so that when he needs to work again on bitcoin he will utilize it but while cleaning his house in 2013, he thrashed his drive with garbage and now his bitcoins cost nearly $127 million. This money now remains unclaimed in the Bitcoin system.
2014: The year 2014 is marked as the turning point for blockchain technology. Blockchain technology is separated from the currency and Blockchain 2.0 is born. Financial institutions and other industries started shifting their focus from digital currency to the development of blockchain technologies.
2015: In 2015, Ethereum Frontier Network was launched, thus enabling developers to write smart contracts and dApps that could be deployed to a live network. In the same year, the Linux Foundation launched the Hyperledger project.
2016: The word Blockchain is accepted as a single word instead of two different concepts as they were in Nakamoto’s original paper. The same year, a bug in the Ethereum DAO code was exploited resulting in a hard fork of the Ethereum Network. The Bitfinex bitcoin exchange was hacked resulting in 120,000 bitcoin being stolen.
2017: In the year 2017, Japan recognized Bitcoin as a legal currency. Block.one company introduced the EOS blockchain operating system which was designed to support commercial decentralized applications.
2018: Bitcoin turned 10 in the year 2018. The bitcoin value continued to drop, reaching the value of $3,800 at the end of the year. Online platforms like Google, Twitter, and Facebook banned the advertising of cryptocurrencies.
2019: In the year 2019, Ethereum network transactions exceeded 1 million per day. Amazon announced the general availability of the Amazon Managed Blockchain service on AWS.
2020: Stablecoins were in demand as they promised more stability than traditional cryptocurrencies. The same year Ethereum launched Beacon Chain in preparation for Ethereum 2.0.
Who is behind Blockchain technology?
It is essential to learn about the historical background of Blockchain for Blockchain supporters and Blockchain prospects. Thus, to help readers to comprehend the Blockchain advancement, let us learn the history of this technology:
1991-2008: Creation Period of Blockchain Technology
Blockchain emerged in 1991 when W. Scott Stornetta and Stuart Haber deliberated what the world has come to know as a “Blockchain.” Their early work included shaping a cryptographically secured blockchain where nobody could alter timestamps of records.
In 1992, they updated their technique to consolidate Merkle trees that improved proficiency hence providing the assortment of more reports on a solitary block. Nonetheless, in 2008, the term “Blockchain” began to acquire importance when Satoshi Nakamoto ingrained his idea of Blockchain in the blockchain space.
Satoshi Nakamoto is credited as the master of blockchain innovation. There is not much knowledge about Nakamoto as individuals speculate he could be a single person or a group that molded Bitcoin, the primary application of digital roster technology.
