History of Blockchain:The concept of Blockchain was first introduced in 2008 with a publication of : “Bitcoin- A peer-to-peer Electronic cash system”, a paper by an anonymous person or group named Satoshi Nakamoto (A pseudonym and till date no one is sure as to who it is).Blockchain was then practically implemented in 2009 as a core component of the digital currency, Bitcoin. It served as a digital public ledger which would store all the transaction data on the network.On January 12 2009, the first Bitcoin transaction took place between Hal Finney and Satoshi Nakamoto and on October 12 2009, #bitcoin-dev is registered as a discussion topic on freenode IRC (an open source project forum) and the conversation grows.The Bitcoin market is established in October 31 2009 and it allows people to exchange paper money for Bitcoin. This is when people begin to recognize it as a digital currency. In May 2010, the first Bitcoin purchase was of 10,000 bitcoins for a pizza. The cost at that time was $25 and today, it is about $ 120000000. By November 210, participation in the Bitcoin marketplace increases the market cap to exceed $1M USD. By Febuary 2011, BTC continued to increase in value and reached parity with USD ($1 USD= 1 BTC) and by March 2013, BTC market surpasses $1B USD. 10 times the growth in less than 3 years!Satoshi claimed to have solved the problem of ‘Double spend’ in digital currency using the blockchain technology in Bitcoin. Double spend is basically the idea of spending digital currency in two places. This is a problem which is unique to digital currencies since it can be replicated or produced again easily. This would not be an issue is case of physical currencies since they cannot be easily replicated and the parties involved in the transaction can easily verify them. In case of digital currency, there is a risk that the holder of the currency could make a copy of the digital token and send it to the merchant or someone else while retaining the original.Bitcoin became the first digital currency to have solved this problem of double spend without requiring a third party or a trusted administrator.Satoshi Nakamoto disappeared from public (that is from Bitcoin forums, papers and code contributors) in 2011. Bitcoin however continued to be developed and marketized by the community which was focused to address various other issues in the code, even in his absence. Bitcoin is used by millions of people for payments, including growing remittances market and its market capitalization hovers between $20-$25 Billion US Dollars.It was in 2014, that people realized Blockchain can be separated from the currency and can be applied to various other use-cases. This is when the attention shifted from Bitcoin to Blockchain. Almost every major financial institutions in the world is researching on blockchain now and some 15-20% of banks are expected to be using blockchain in the current year.
August 29, 2019 0 Comments