The birth of bitcoin
Since the pandemic, we see that the world has shifted to a new norm where we would like to encounter people online rather than meeting them physically like we usually do; perhaps a small chat on the side of the street or the usual cup of coffee. More than that, our way of conducting conventional business has also shifted more towards incorporating features like Artificial Intelligence, Big Data, the Internet of Things (IoT) and the list goes on, to facilitate and manage the interoperability of data that is created by it.
The new norm of interacting with people through data has created enormous inputs and outputs of data flowing on the internet and, according to recent findings, it suggests that there is over 1,000 exabytes of data where 1 exabyte equals 1 billion gigabytes is stored and flows on the internet. The experience has led to everyone sharing the same concern about the problem of storing and managing data, despite the fact that there are current studies into adopting it with various methods, particularly using quantum computer — and, without a doubt, it will take years for everyone to own a quantum computer.
The evolution of blockchain technology has provided humanity with an opportunity to strengthen and provide a solution to the massive data storage problem, as it can serve as the bedrock of global record-keeping systems. Everyone is adopting a peer-to-peer connection that provides transparency and privacy to every individual, which may also be the key to a decentralized world.It was created under the pseudonym Satoshi Nakamoto by the anonymous creator of the online cash currency, Bitcoin. A brief history of blockchain:
1991
A cryptographically secured chain of blocks is described for the first time by Stuart Haber and W Scott Stornetta
1998
Computer scientist Nick Szabo works on ‘bit gold’, a decentralised digital currency
2000
Stefan Konst publishes his theory of cryptographic secured chains, plus ideas for implementation
2008
Developer(s) working under the pseudonym Satoshi Nakamoto release a white paper establishing the model for a blockchain
2009
Nakamoto implements the first blockchain as the public ledger for transactions made using bitcoin
2014
Blockchain technology is separated from the currency and its potential for other financial, interorganisational transactions is explored. Blockchain 2.0 is born, referring to applications beyond currency
The Ethereum blockchain system introduces computer programs into the blocks, representing financial instruments such as bonds. These become known as smart contracts.
Bitcoin’s function
Nakamoto created bitcoin as a peer-to-peer form of cash that could be sent without the need for a central bank or other authority to operate and maintain the ledger, much like physical cash can be. While bitcoin was not the first proposed online currency, it addressed a number of issues and has been by far the most successful and one of them is data storage. The blockchain is the backbone of Nakamoto’s bitcoin ledger; the first and largest blockchain is still in use today, orchestrating bitcoin transactions.
The second era
Other blockchains power hundreds of “altcoins” — alternative currency projects with slightly different rules — as well as truly unique applications, such as:
- Ethereum is the second largest blockchain implementation, after bitcoin. Ethereum not only facilitates the distribution of the ether cryptocurrency, but also the storage and execution of computer code, enabling the use of smart contracts.
- Ripple is a real-time gross settlement system, currency exchange, and remittance network built on top of a distributed ledger.
