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Writer's pictureMasharee S

History of Blockchain

Updated: Mar 23, 2022


The History timeline of Blockchain



Who create Blockchain?

:In 1991,

Stuart Haber and W. Scott Stornetta created the timestamp for digital document to protect it from reformation and this is the concept of the Blockchain system.

Stuart Haber and W. Scott Stornetta

In 1992,

Merkle trees or Hash tree system was nominated to use as technology that can store file or documents into the block. But for some reason this system didn't use in the real world.

Hal Finney

In 2004,

Hal Finney create the Reusable Proof of Work system and in time later, it became a prototype of Proof of Work system that use for Bitcoin.






Who started to use the blockchain system?


: In 2008,

name of an unknown person or unknown organization called Satoshi Nakamoto had reveal the paper about Bitcoin, the decentralized digital currency that use blockchain technology to record the transaction by timestamping.

The first ever Bitcoin transaction happened when Satoshi Nakamoto had sent 10 bitcoin to Hal Finney.


The beginning of the Smart Contract

: After the Blockchain technology had invented another generation had come to develop the current system called Smart contract.

The smart contract help to run the transaction automatically within the right condition, because of the Smart Contract Blockchain become fully decentralized.

And Decentralized Application or dApp also had invented in this era.


But Proof of work system had a cons about the resource that use too much of energy and the delayed of transaction or bottlenecking, so the upcoming generation was created to solve the problem of Scalability.


The beginning of the Proof of Stake

: The 3rd generation blockchain has develop into Proof of stake system.

Why it better? Because this system didn't need to invested a lot of resources!



How does it work?

It work by put the money in the system for exchanging the right to proof the transaction randomly each person each block these people called the validator.

There role are forge or minting the new block which is similar to the mining method of proof of work.

If there are mistake occur in the system such as reformation the block, the validator who take care of the block will lost their own gas fee as a punishment and the system will randomly choose the new validator.

The Proof of stake system is better than Proof of work in term of "fast proofing transaction" example like in chain Cardano that use Proof of stake can proof ADA coin within just 40 second.



The next generation of blockchain?

: Not guarantee yet but the next gen has been predicted that AI will collaborated with Blockchain.



Review the Blockchain history

: Stuart Haber and W. Scott Stornetta started the concept of blockchain.

Hal Finney create the prototype of Proof of work.

Satoshi Nakamoto create the first generation of the blockchain system which Proof of work and use it for transaction only, the first digital coin in blockchain system is "Bitcoin".

The 2nd generation of blockchain is Smart Contract the beginning of the dApp and Ethereum chain.

The 3rd generation is Proof of Stake system, the beginning of Cardano chain and more.

The 4th gen is not confirm yet.




Reference

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