The history of Blockchain – Industrial Revolution 4 Lab (IR4LAB)
We will do so by taking a deep dive into the history of Blockchain and how it came about, so let’s begin.
The prospect of a world in which all text, audio, pictures, and video documents are in digital form on easily modifiable media raises the issue of how to certify when a document was created or last changed.
The problem is to time-stamp the data, not the medium. In many situations there is a need to certify the date a document was created or last modified. The first form of Blockchain was published by W. Scott Stornetta and Stuart Haber; they have created a cryptographically secured chain of blocks that doesn’t allow anyone to tamper with the timestamps of the documents. The two creators ended up building a distributed immutable ledger.
The next important step in the Blockchain evolution was the creation of the RPOW “Reusable proof-of-work”, the RPOW protocol allows a user to create a token by providing a proof-of-work string signed by his or her private key.
The server keeps a record of this transaction and registers the token as now belonging to the private key underlying the recipient public key. This protocol solves the problem of double spending. It does this by keeping a record of ownership on the network’s server.
In 2008, a white paper was released by a person or a group of people named Satoshi Nakamoto. The white paper proposed a system that replaces the need for central authorities like banks and financial institutions to facilitate transactions.
Bitcoins are “mined” for a reward using the proof-of-work mechanism by individual miners and then verified by the decentralized nodes in the network. If we pause right there and look at the year when the white paper was published we will astonishly realise that 2008 is the year of the financial crisis.
This global financial crisis is assumed to be the inspiration for Satoshi Nakamoto to develop another option of currency which would not require trust in a centralized institution, one year later, the first Bitcoin was mined by Satoshi Nakamoto.
Well after all this reading, maybe you are hungry, how about some pizza? You should be asking yourself what’s the relation between Bitcoin and pizza, no worries we will share with you the secret.
The first Bitcoin transaction was a pizza order, to be precise, two large pizzas were ordered on May 22nd 2010 from papa john’s pizza in Florida using Bitcoin, the amount of this transaction was 10000 Bitcoin, this amount is worth US$ 102,400,000 in today’s price, the most expensive Pizza ever!
After the Bitcoin market cap surpassed 1$ billion USD, exactly on March 28th 2013, companies and scientists became fully aware of the elemental technology “Blockchain” that has the ability to lead to a future revolution in many fields.
In the same year, 2013, a white paper made its appearance, Vitalik Buterin creates what it’s called “Ethereum Project”. In an interview on the Business insider, Vitalik Buterin was asked “What was the biggest issue with Bitcoin that you were trying to fix with Ethereum?” His response was that the Bitcoin has too limited functionality, and he wants to increase the power of the system by making it more general purpose and applying it to Blockchain.
We have to say that Ethereum is a platform that’s built specifically for creating smart contracts.
When you look closely you will find that Blockchain have multiple generations. The first one was the Bitcoin, the second one is Ethereum and the latest is a bunch of new projects. The main attributes of this third generation are wider functionality and better design that allows avoiding such problems as poor scalability and interoperability.
For example we have CARDANO; it is a decentralized public Blockchain and cryptocurrency project and it is fully open source. Cardano is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed. It is the first Blockchain platform to evolve out of a scientific philosophy and a research-first driven approach.
When you see how governments and enterprises are investing big on Blockchain as they look to inspire innovations and applications, you will realise that the Blockchain technology will have a really bright future. We are all excited to see what the next generation of Blockchain will be.