- Blockchain is a system where records of transactions made in bitcoin or other altcoin are maintained across a multitude of computers that are linked throughout a peer-to-peer network.
- The main difference from a traditional database is in the way that it stores information. The blockchain stores data in blocks that are chained together.
- Each new piece of data comes and is stored in a fresh block. Once this block is filled with data it is chained to the previous block in chronologic order.
- Different types of data can be stored on a blockchain but it’s mostly used as a ledger for made transactions.
- Bitcoin uses blockchain in a decentralized way where one person cannot have control, and all users collectively control it.
- Decentralized blockchains are immutable and the data entered is irreversible. Each transaction is permanently recorded and viewable to everyone.
A great video explanation of Blockchain technology
History of Blockchain Technology
Blockchain was originally envisioned all the way back in 1991 by two people. W. Scott Stornetta and Stuart Haber. Their first work even involved working on a cryptographically secured chain of block, where no one could tamper with the timestamps of the documents placed there.
In 1992, they upgraded this system to incorporate Merkle trees.
What are Merkle Trees?
A Merkle Tree is a tree in which every leaf node is labeled with the cryptographic hash of a data block, and every non-leaf node is labeled with the cryptographic hash of the labels of its child nodes.
This technology enhanced the efficiency and the collection of more documents on a single block.
The importance of Satoshi Nakamoto
In 2008 Blockchain started to get its relevance, thanks to one person or group known as Satoshi Nakamoto. While Satoshi Nakamoto is credited with the idea of blockchain technology, not a lot of people know about him, and many speculate that there is an entire team that went by that name.
Satoshi Nakamoto conceptualized the blockchain in 2008 from where the technology has evolved and found its home in many applications, not just cryptocurrencies.
The person or the team also released the first whitepaper about the technology back in 2009, where details were provided as to how well it was equipped to increase the level of digital trust.
So, while blockchain technology was originally conceptualized and developed in 1992, it truly found its relevancy in 2008 with the creation of bitcoin.
So let’s talk a little bit about what exactly Blockchain is…