History of blockchain
Stuart Haber and W. Scott Stornetta, two research scientists, first discussed blockchain technology in 1991. So that digital papers could not be altered or retroactively time-stamped, they sought to develop a computationally feasible approach. To store the time-stamped papers, they create a system based on the idea of a chain of blocks that is cryptographically secured.
Merkle trees, which were integrated into the design of the blockchain in 1992, increase the efficiency of the technology by enabling the collection of several documents into a single block. In order to make a "secured chain of blocks," Merkle trees are employed. It kept a number of data records, each of which was linked to the one before it. This chain's most recent record includes the chain's history. The patent for this technology expired in 2004 since it was never used.
The first decentralised blockchain was conceptualised by a person or group of persons identified as Satoshi Nakamoto in 2008. By timestamping blocks without requiring them to be signed by a third party, Nakamoto significantly improved the design. He also added a difficulty parameter to control the rate at which blocks are added to the chain. The invention was put into operation the following year by Nakamoto as a fundamental part of the cryptocurrency bitcoin, where it functions as the network's central public record for all transactions.
The size of the Bitcoin blockchain file, which contains a history of every transaction that has ever taken place on the network, hit 20 GB in August 2014. (gigabytes). The size of the bitcoin blockchain increased from roughly 30 GB in January 2015 to 50 GB and 100 GB in January 2016 and 2017. At the start of 2020, the ledger size had surpassed 200 GB.
What is blockchain?
A sophisticated database system called blockchain technology enables transparent information sharing inside a company network. Data is kept in blocks that are connected together in a chain and stored in a blockchain database. Because of the inability to delete or amend the chain without network consensus, the data remains chronologically consistent. In order to manage orders, payments, accounts, and other transactions, you can utilise blockchain technology to establish an unchangeable or immutable ledger. The system features built-in capabilities that prohibit unauthorised transaction submissions and create consistency in the common view of these transactions.
Define blockchain
Blockchain is a decentralised, immutable database that makes it easier to track assets and record transactions in a corporate network. An asset might be physical (a house, a car, money, or a piece of land) or intangible (patents, copyrights, branding, and intellectual property). In a blockchain network, practically anything of value may be recorded and traded, lowering risk and increasing efficiency for all parties.
Why is blockchain important?
For storing financial transactions, traditional database methods present a number of difficulties. Take the sale of a property, for instance. The property belongs to the buyer once the money has been exchanged. Both the buyer and the seller can independently keep track of the financial transactions, but neither source can be relied upon. Both the buyer and the seller can claim that they have paid the money even when they haven't, and both parties can readily deny doing so.Transactions must be monitored and verified by a dependable third party to prevent potential legal problems. The existence of this centralised authority not only makes the transaction more difficult, but it also establishes a weak spot. Both parties could experience a compromise if the primary database suffered.
Blockchain eliminates these problems by developing a decentralised, unchangeable mechanism for transaction recording. In the case of a real estate transaction, blockchain generates separate ledgers for both the buyer and the seller. All transactions are subject to both parties' approval and are automatically updated in real time in both of their ledgers. Any tampering with earlier transactions will taint the entire ledger. These characteristics of blockchain technology have made it useful across a range of industries, including the development of virtual currencies like Bitcoin.
Types of blockchain
- Public blockchains,
- Private blockchains,
- Consortium blockchains
- Hybrid blockchains.
What is public blockchain?
Everyone is welcome to join and take part in the essential operations of the blockchain network on a public blockchain. The self-governed, decentralised aspect that is frequently praised when discussing blockchain is made possible by the fact that anybody may read, publish, and audit the current actions on a public blockchain network.
What is private blockchain?
A private blockchain is one that only certain users can access and use, and which is often solely used by the entity to which it belongs. A mix of public and private blockchains known as a "permissioned blockchain" allows for the granting of rights and privileges to various users.
What is consortium blockchain?
With each financial institution having its own private blockchain, a consortium blockchain enables a pre-selected group of nodes to manage the consensus process.
What is hybrid blockchain?
A hybrid blockchain is frequently described as a fusion of both public and private blockchains. It combines key elements of both public and private blockchains, and by combining the best features of both, it creates transactions and data that are private.