Delving into the Astonishing History of Blockchain's Global Impact - Technology Org | By The Digital Insider

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Blockchain technology has revolutionized the world. From cryptos to smart contracts to the whole concept of eliminating brokers and middlemen in the chain, the world has yet to see what blockchain can deliver. People have been asking when did blockchain start and other questions in an attempt to understand this technology. Here we will take you through a historical journey of blockchain evolution where we will explore how it started and the path it has taken to reach where it is today.



The birth of blockchain


If you ask most people when blockchain technology was invented, a majority will tell you 2009. According to Chronology Crypto, this is the year when Bitcoin was developed. Actually, to most people, there is no difference between Bitcoin and blockchain. As blockchain experts will tell you, there is a big difference between the two. Bitcoin was developed out of blockchain technology.


This means that it existed before 2009. Its history can be traced way back to 1982 when David Chaum, a cryptographer proposed a protocol in his paper titled “Computer Systems Established”. Further studies on cryptography were done by W Scott Stornetta and Stuart Haber. The two introduced the concept of timestamps describing a system that cannot be tampered with or changed. In 1992, Haber, Bayer, and Stornetta added a Hash tree in the design to improve efficiency through the collection of document certificates into one block. 


In 2008, a person who is associated with the development of Bitcoin conceptualized the first decentralized system. Satoshi Nakamoto through a white paper improved the design using the Hashcash to timestamp. This introduced a parameter that was hard to decipher leading to stabilization of the rate through which new blocks are added into the system. The design that Nakamoto developed was implemented in 2009 leading to the birth of the first cryptocurrency, the Bitcoin.


The words block and chain had been used separately all along but eventually, a new one was created and became the name of the new technology. Blockchain came to be adopted in financial services among other areas in 2016. Since then adoption has increased although it has been slow due to the negative reputation that was created due to the inability of people to distinguish between the technology and Bitcoin as a cryptocurrency.


What is blockchain?


Now that we have a brief overview of how this technology has evolved, let’s get a deeper understanding of what it entails. Blockchain is a method of storing and managing data securely and transparently. It takes the form of a digital ledger that is distributed in computers called nodes.


Each of the nodes on the network has a copy of this digital ledger. To make any changes in the ledger, there must be a consensus among the networks. The fact that there must be a consensus makes it hard for one node to make some changes in the ledger. Collusion is also not possible as the blocks are linked, and the verification process is carried out by all networks. These features make it hard to tamper or hack data in the system.


In simple terms this is how the system works:



  • A node initiates a transaction such as crypto-payment, this is what happens in betting platforms that accept cryptocurrencies. 

  • The transaction is announced to the network

  • Miners in the networks through complex computation verify the transaction and add it to the block. The miner who verifies the transaction is awarded cryptocurrencies

  • The block is added to the system which is a public record of all the transaction

  • Once a transaction has been added to the system, it cannot be altered; this making it safe


Application of blockchain


In the course of understanding how the system has evolved, we appreciate that blockchain adoption has rather been slow. However, its adoption has been rising fast in the recent past. It started with financial institutions but now has spread in different sectors including health and education.


In the betting sector, this system has become widespread due to its security, anonymity and low transaction fees. By using the Bitcoin bookmakers list by MightyTips.com one can largely insure themselves against manipulation. The brand provides sufficient information that allows users to appreciate the benefits associated with the use of cryptocurrencies in betting. In addition, players no longer need to link a bank card to their account number, confirm their account and additional details. The blockchain operates only with the cryptocurrency wallet number. And the transparency factor helps players to receive the won funds faster, because all transactions are done instantly and without the participation of third parties.



Characteristics of blockchain technology 



  • Decentralized: this means that it cannot be controlled by any one entity 

  • Security: the fact that any alterations must be verified means that it is difficult to hack

  • Transparency: All transactions are public and can be seen by all, this makes it hard to tamper or interfere, a feature that helps in building confidence

  • Immutability: Perhaps this is the feature that makes the system unique, the fact that any transaction that has been added cannot be changed or deleted.


Blockchain is still in its infancy. However, it has the potential to change how many sectors operate. In the few years that the tech has been in place, different sectors have witnessed phenomenal changes.


What has changed since its adoption?



  • In 2017, Bitcoin came to be recognized in some jurisdictions as a legal currency, including Japan, the Eurozone as well and 15% of the global banks using blockchain in some operational areas.

  • In 2018, Bitcoin hit a decade since its creation. Its value had previously risen to astronomical levels but this year, it started to decline. The decline in value due to several factors including, its ban by several institutions.

  • 2019 saw research and development taking center stage as more organizations embraced the technology

  • Research carried out in 2020 by Deloitte revealed that incorporation of the system had increased gradually to reach 40-55% 

  • 2021 saw Bitcoin reaching an all-time high value of $ 70k and its market capitalization surpassing $ 3 trillion

  • 2022 saw increased uses of non-fungible tokens

  • 2023 has been a mixed fortune year; Bitcoin stabilized after a crash in late 2022. There was the collapse of exchanges such as Coin Base.


Blockchain will continue to evolve as its adoption increases. It is an area to watch. It will revolutionize varied sectors in a way that will lead to the creation of new opportunities. Learning about the system and incorporating it into already existing platforms will add value not only to individuals but also to businesses.


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Published on The Digital Insider at https://bit.ly/3tOMLd0.

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