Blockchain Technology was introduced in 1991 by researcher scientists Stuart Haber and W. Scott Stornetta. These researchers desired a computationally viable solution for time-stamping digital documents so that they could not be tampered with or misdated. So, using Cryptography, both scientists collaborated to create a system. The time-stamped papers in this System are stored in a Chain of Blocks.
Merkle Trees then formed a formal corporation in 1992 by modifying a technique developed by Stuart Haber and W. Scott Stornetta. As a result, Blockchain Technology became efficient in storing multiple documents to be collected into a single block. Merkle employed a Secured Chain of Blocks to sequentially store several data records. However, when the Patent was issued in 2004, this technology was rendered obsolete.
Satoshi Nakamoto is widely regarded as the creator of blockchain technology. persons believe Nakamoto could be a person or a group of persons that worked on Bitcoin, the first application of digital ledger technology. In 2008, Nakamoto created the initial blockchain, from which the technology has evolved and found its way into various uses other than cryptocurrencies. In 2009, Satoshi Nakamoto published the first whitepaper on the technology.
He explained in the whitepaper how the technology was perfectly suited to enhancing digital trust because to the decentralization component, which meant that nobody would ever be in control of anything. Since Satoshi Nakamoto left the scene and delegated Bitcoin development to other core developers, digital ledger technology has progressed, leading in new applications that comprise the blockchain History.
In layman's terms, Blockchain is a secure peer-to-peer distributed ledger that is used to record transactions across multiple computers. The contents of the ledger can only be updated by adding another block that is connected to the prior block. It can also be seen of as a peer-to-peer network that runs on top of the internet.
In layman's or business words, blockchain is a platform that allows users to conduct various transactions without the requirement for a central or trusted arbitrator. The constructed database is transparently shared among network participants, allowing anyone to access its contents.
The database is managed independently via peer-to-peer networks and a time-stamping server. Each block in a blockchain is structured in such a way that it refers to the prior block's information. The blocks that make up a blockchain store batches of transactions that have been approved by network participants. Each block includes a cryptographic hash of the block before it in the chain.
Stefan Konst released his theory of cryptographic protected chains, along with implementation suggestions, in the year 2000. Hal Finney, a cryptographic activist, presented the "Reusable Proof of Work" mechanism for digital currency in 2004. This was a watershed moment in the history of Blockchain and Cryptography. This system assists others in resolving the Double Spending Problem by registering token ownership on a trusted server.
Satoshi Nakamoto envisioned the notion of "Distributed Blockchain" in his white paper "A Peer to Peer Electronic Cash System" after that in 2008. He adapted the Merkle Tree paradigm to produce a more secure system with a safe history of data exchange. His system employs a peer-to-peer time stamping network. His approach became so useful that it became the foundation of cryptography.
As one of the earliest contributors to the Bitcoin core, Vitalik Buterin is among a growing list of developers who thought Bitcoin had not yet reached that point when it comes to exploiting the full capabilities of blockchain technology.
Concerned about Bitcoin's limits, Buterin began developing what he envisioned as a customizable blockchain capable of performing a variety of services in addition to serving as a peer-to-peer network. In 2013, Ethereum was born as a new public blockchain with more functionality compared to Bitcoin, a development that has proven to be a watershed moment in Blockchain history. Buterin distinguished Ethereum from the Bitcoin Blockchain by enabling the recording of other assets such as slogans and contracts. The new functionality increased Ethereum's capabilities beyond cryptocurrency to include a platform for developing decentralized applications.
The Ethereum blockchain, which was officially introduced in 2015, has evolved to become one of the most important implementations of blockchain technology due to its capacity to allow smart contracts that perform multiple purposes. The Ethereum blockchain technology has also succeeded in attracting an active development community, resulting in the establishment of a real ecosystem. Because of its capacity to handle smart contracts and decentralized apps, the Ethereum blockchain processes the most daily transactions. In the cryptocurrency arena, its market cap has also surged dramatically.
The year 2014 is seen as a watershed moment in blockchain technology. Blockchain technology is divorced from currency, resulting in the birth of Blockchain 2.0. Financial institutions and other companies began to shift their focus from digital money to blockchain technology development. The Ethereum Frontier Network was created in 2015, allowing developers to create smart contracts and decentralized applications (dApps) that could be deployed on a live network. The Linux Foundation established the Hyperledger project the same year. Japan recognized Bitcoin as a legal currency in 2017. The EOS blockchain operating system, developed by Block.one, was designed to allow commercial decentralized apps.
In 2019, Ethereum network transactions surpassed 1 million per day. Amazon has announced the wide availability of its AWS Managed Blockchain solution. Ethereum's consensus process has moved from Proof of Work (PoW) to Proof of Stake (PoS). The original Ethereum mainnet combined with the Proof-of-Stake Beacon Chain. It now exists as a single chain. The energy usage of Ethereum has been lowered by 99.95%.
The Linux Foundation revealed an open-source blockchain Umbrella project in 2015. They named it Hyperledger, and it is still used for collaborative development of distributed ledgers today. Hyperledger, led by Brian Behlendorf, aims to encourage cross-industry collaboration for the development of blockchain and distributed ledgers. Hyperledger promotes the use of blockchain technology to improve the performance and reliability of existing systems that facilitate global commercial transactions.
EOS is the creation of a private corporation block.One emerged in 2017, with the publication of a white paper outlining a new blockchain system powered by EOS as the native coin. Unlike other blockchain protocols, EOS attempts to imitate real-world computer characteristics such as CPU and GPU. As a result, EOS.IO serves as both a smart contract platform and a decentralized operating system. Its primary goal is to promote the adoption of decentralized apps through the use of an independent decentralized corporation.
A blockchain's essential components:
- The technology of distributed ledgers.
- Immutable records.
- Smart contracts.
- Each transaction is logged as a "block" of data as it occurs.
- Each block is linked to the ones that come before and after it.
- Transactions are linked in an irreversible chain.
- Greater trust.
- Increased security.
- increased efficiencies.
The future of Blockchain technology is bright, in part because governments and businesses are investing heavily in order to promote innovation and applications. It is becoming increasingly evident that one day a public blockchain will be available for anybody to utilize. The current advancement of Blockchain Technology has boosted the demand for Blockchain expertise. Businesses are also embracing Blockchain in order to reap the benefits of Blockchain applications.