A Brief History of the Blockchain… In Case You’re Still Wondering! – Crypto mode
Blockchain technology is set to change the world.
From data transfers to payments, contracts and other digital interactions, blockchain can revolutionize the way we interact with the world and each other.
But are you familiar with how this idea came about?
Don’t worry if you’re still confused – with so much happening in such a short amount of time, it can be hard to keep up!
Here is a quick overview the origins of blockchain to help you understand this innovative technology.
Chapter 1: Promising Beginnings
The original blockchain was conceptualized by an anonymous person or group of people known as Satoshi Nakamoto in 2008.
Nakamoto’s vision was to create a “pure peer-to-peer version of electronic cash”, which would allow online payments to be sent directly from one person to another without the need for a third party (such as a bank or credit card company).
To do this, Nakamoto developed a new type of database or a distributed ledger, which is a database that is spread over several computers.
This ledger would keep track of all transactions that occur within a networkand each transaction will be verified by the network participants (or “nodes”) before it can be added to the ledger.
This did Bitcoin the first digital currency that fixed the double spend issue (spending the same money twice) without the need for a central authority.
Chapter 2: Blockchain 2.0 is born
Until 2014, blockchain and currency went hand in hand. But that all changed with the launch of Ethereum, a decentralized platform that runs smart contracts: applications that run exactly as programmed without the possibility of fraud or third-party interference.
Ethereum took Nakamoto’s vision one step further and allowed developers to build decentralized applications (or “dapps”) on top of the blockchain. This gave rise to the “tokenization” of assets, which is the process of representing real-world assets (such as real estate or shares in a company) with a digital token.
You can build anything on the ETH blockchain system – there are now decentralized bonds, Ethereum casinos (with provably fair algorithms), legal documents and more… And there are other networks doing it now too.
Chapter 3: Blockchain goes mainstream
Blockchain’s potential was further realized when large companies and financial institutions began to get involved.
Take Walmart, for example, which recently launched one supply chain system based on blockchain technology. By 2020, more than half of respondents in one Deloitte study consider it a top strategic priority.
Banking giant HSBC also completed one blockchain based trade finance deal in early 2020, and other banks will follow suit.
Chapter 4: The Future of Blockchain
The possibilities of blockchain are endless. In the future, we may see blockchain being used for power everything from identity management and data security to voting systems and self-driving cars.
What is certain is that blockchain is here to stay, and its potential is only just beginning to be realized.
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