History Of Blockchain

Introduction

Blockchain is a decentralized (distributed) ledger technology that can be used to record transactions across many computers so when one person wants to send money, it goes through the chain.

The early days

The idea behind blockchain technology was described as early as 1991. In that year, Stuart Haber and W. Scott Stornetta proposed a way to use cryptography to record information in a distributed computer system. They called their hypothetical invention “smart contracts,” which is a term used today for smart contracts that run on top of blockchains like Ethereum (more on this later).

In 1993, David Chaum introduced e-cash, which was later renamed anonymous electronic cash (ECash). This system allowed users to send payments directly from one person’s electronic wallet account to another user’s electronic wallet account without requiring any type of third party verification or validation system such as credit card companies or banks who could charge fees along the way;

instead each transaction would be recorded by all participants using cryptography methods so there would never be any need for storage space being taken up unnecessarily by records created outside of normal business hours where people might not want them stored anyway…

Reusable Proof Of Work (RPoW)

In 2004, computer scientist and cryptographic activist Hal Finney (Harold Thomas Finney II) introduced a system called RPoW, Reusable Proof Of Work. The idea behind RPoW is that you can use the same proof of work to prove you did a certain job, and then use it again to prove you did another job.

This means no need for new coins because once they’re found by miners all over the world, they will not be reused again unless there is some reason for them not being reusable — such as if someone else finds one before you do!

Bitcoin network

In late 2008, a white paper introducing a decentralized peer-to-peer electronic cash system — called Bitcoin — was released. This paper described how a solution to the problem of double spending could be implemented using cryptography and mathematics.

The first Bitcoin block was mined on the 3rd January 2009, by Satoshi Nakamoto who created this cryptocurrency as a solution to what he perceived as issues associated with government currency systems.

The first blockchain based on this concept was invented in 2009 by Nakamoto himself and its name is Bitcoin (BTC). It is an open source software project forked from Bitcoind that enables users can send value over the internet without having any middleman or central authority controlling their funds or transactions.

Each transaction takes place between two parties who send each other bitcoins which are then converted into fiat currency at some point during their interaction before finally being converted back into BTC again when they want to spend them again (i’ll come back later).

Ethereum

Vitalik Buterin, a Russian programmer, created the Ethereum project in 2013. The idea behind Ethereum was that it would be a decentralized platform for smart contracts: programs or scripts that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. This is because all code is stored on the blockchain and can be viewed by anyone.

Ethereum’s value proposition was simple: anyone could create their own cryptocurrency and launch an initial coin offering (ICO) to raise capital for their project on Ethereum’s blockchain network.

In 2017 alone there were more than $1 billion dollars raised through ICOs with the majority being conducted by companies associated with Bitcoin or other cryptocurrencies like Litecoin and Ripple which are similar in many ways but not necessarily compatible with each other due to different technical features such as block sizes etc..

Conclusion

Blockchain is a growing technology that has the potential to change the world. It’s not just a fad. It could be the next great paradigm shift in how we do business and exchange information, both online and offline. Blockchain is designed to handle huge amounts of data without compromising security or decentralizing authority over who owns what information.

Anyone can use blockchain technology, whether they are trying to maintain an inventory of their supply chain or create an app where users can send digital currency without having to pay banks high fees charged by credit cards.