Blockchain’s History

 

Blockchain isn’t simply a database; it’s a new technological stack with ‘digital trust’ that’s changing the way we trade currency and information over the internet by eliminating the need for ‘gatekeepers.’ Check out our post for a more comprehensive and in-depth look: A Quick Overview of Blockchain Technology by blockchain development services. 

 

The history of blockchain extends back further than you would think, but we’ve reduced it by addressing four key questions:

 

Who Created Blockchain Technology?blockchain development services

In 1982, cryptographer David Chaum devised the first blockchain-like technology. Stuart Haber and W. Scott Stornetta published a paper on Consortiums in 1991.

 

After deploying the world’s first digital currency, Bitcoin, Satoshi Nakamoto created and deployed the first blockchain network.

 

Different Blockchains

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Blockchains are divided into four categories:

 

  1. Distributed ledger technology

Anyone who wants to request or confirm a transaction can use public blockchains, which are open, decentralised networks of computers (check for accuracy). Those that validate transactions (miners) get rewarded.

 

Proof-of-work nor proof-of-stake consensus procedures are used in public blockchains (discussed later). The Bitcoin and Ethereum (ETH) blockchains are two instances of public blockchains.

 

  1. Individual Blockchains

Permissioned blockchains are not public, and access is limited. The system administrator must provide authorization for others to join. They are usually centralised and managed by a single body. Hyperledger, for example, is a permissioned, private blockchain.

 

  1. Consortiums or Hybrid Blockchains

Consortiums are centralised and decentralised blockchains that combine public and private blockchains. Energy Web Foundation, Dragonchain, and R3, for example.

 

Keep in mind that there isn’t universal agreement on whether these concepts are synonymous. Some people distinguish between different, while others believe they are interchangeable.

 

  1. Sidechains (n.d.)

A sidechain is a chain that runs in the opposite direction of the main chain. It enhances scalability and efficiency by allowing users to move digital content across two separate blockchains. The Liquid Network is an instance of a sidechain.

 

Let us begin with a simple explanation not exaggeration.

 

We built ledgers as a civilization to record information, and they have a wide range of uses. In real estate, for example, ledgers are used to keep track of when improvements were done or the home was sold. In bookkeeping, ledgers are also used to record all of a company’s transactions.

 

To keep track of transactions, most bookkeepers use double-entry bookkeeping. Although it is an improvement over single-entry accounting, which lacks openness and accountability, double-entry bookkeeping is not without its flaws: Because entries are recorded independently, it is impossible for one party to check the records of the other.

 

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Traditional ledger records are extremely easy to meddle with, allowing you to simply change, remove, or add records. As a result, you’re less inclined to believe the data is correct.

 

By upgrading the old accounting model to triple-entry bookkeeping, public blockchains tackle both of these difficulties – and the way we trust – by cryptographically sealing transactions on the blockchain. This results in a tamper-proof record of transactions, which is kept in blocks and confirmed by a distributed consensus method.

 

New blocks are added to any chain using these consensus procedures. Proof-of-work (PoW), sometimes known as “mining,” is an example of a consensus process.