The history of Blockchain

 2020-06-18

The history of Blockchain

The foundation technology of cryptocurrencies is blockchain. This technology allows each client on the network to reach a consensus without having to trust each other.

The first day

The idea behind blockchain technology was described as far back as 1991 when researchers Stuart Haber and W. Scott Stornetta introduced a practical, computational solution to timestamp digital documents so they wouldn't be edited.

The system used a string of cryptographically secured blocks to store time-stamped documents, and in 1992, Merkle branches were integrated into the design, making it more efficient. by allowing a block to gather some text. However, this technology was not used and the patent expired in 2004, four years before Bitcoin was found.

Reusable Proof Of Work 

In 2004, computer scientist and cryptographer Hal Finney (Harold Thomas Finney II) launched a system called RPoW, Reusable Proof Of Work. The system operates by receiving an immutable or irreplaceable Hashcash based on the proof of work token, and in return creates an RSA signed token that can then be exchanged directly from this person to another person.

RPoW has solved the problem for double consumption by keeping ownership of registered tokens on a trusted server; This server is designed to allow users around the world to verify accuracy and integrity in real-time.

RPoW can be seen as an initial experiment and is an important first step in the history of cryptocurrencies.

Bitcoin network.

At the end of 2008, the paper introducing a peer-to-peer, decentralized network electronic cash system - called Bitcoin - was posted on the crypto mailing list by a person or organization that took the nickname is Satoshi Nakamoto.

Based on the proof of work Hashcash algorithm, but instead of using a hardware-based calculation function like RPoW, the double-spending protection feature in Bitcoin is provided by a peer-to-peer network protocol for tracking and authentication. transactions. In short, miners "mine" Bitcoin for rewards using a proof-of-work mechanism and then verify with decentralized nodes in the network.

On January 3, 2009, Bitcoin was found when Satoshi Nakamoto dug up the first bitcoin block, giving him a 50 bitcoin reward. The first recipient of Bitcoin was Hal Finney, who received 10 bitcoins from Satoshi Nakamoto in the world's first bitcoin transaction on January 12, 2009.

Ethereum

In 2013, Vitalik Buterin, the programmer and co-founder of Bitcoin Magazine pointed out that Bitcoin needs a coding language to build decentralized applications. Without the approval of the community, Vitalik began developing a new blockchain-based distributed computing platform, Ethereum, with a new cryptographic function called a smart contract.

Smart contracts are programs or scripts that are implemented and executed on the Ethereum blockchain, which can be used, for example, to make a transaction when conditions are met. Smart contracts are written in specific programming languages ​​and compiled into bytecode, which is a decentralized Turing-complete virtual machine, called the Ethereum virtual machine (EVM), which can then be read and enforcement.

Developers can also create and publish applications that run inside the Ethereum blockchain. These applications are commonly known as DApps (decentralized applications) and have hundreds of DApps running on the Ethereum blockchain, including social media platforms, gaming applications, and other financial trading platforms.

Ethereum's cryptocurrency is called Ether; it can be transferred between accounts and used to pay for the computing power used when executing smart contracts.

Summary  

Today blockchain technology is drawing a lot of attention on mainstream channels and has been used for many different applications, not just in the field of cryptocurrencies.