Blockchain consists of two words, namely “block” which means group, and “chain” which means chain. This reflects the way it works which utilizes computer resources to link blocks to simplify the execution process of transactions.
Now, let’s get into the short history of blockchain! Quoted from a book entitled Blockchain for Dummies written by Manav Gupta, it is explained that initially, blockchain was formed and developed to meet a great need for a system that works more effectively, efficiently, cost-effectively, is more secure, and is proven safer to perform. task in the form of recapitulating various financial transactions that occur in the future.
The idea of ??using blockchain itself was formed in the year nineteen hundred and ninety-one, at which time, there were two authors, namely Stuart Haber and W. Scott Stornetta, who published a journal entitled Journal of Cryptography: How to Time Stamp a Digital documents.
The person behind this technology, which was created with bitcoin, is known by the pseudonym Satoshi Nakamoto. In the year two thousand and nine, Nakamoto, a mysterious figure wanted a decentralized, permanent and publicly accessible means of recording the creation and distribution of every bitcoin. Unlike the money produced by a central bank, which is still in the form of traditional money, the existence of bitcoin is slightly different, in that bitcoin does not have a central authority, and does not have a party working to control it.
Even though Nakamoto designed blockchain as a public ledger, it wasn’t long before permission-backed blockchains controlled by specific companies or groups emerged. This legal blockchain was initiated by Nicholas Weaver, a senior researcher at The International Computer Science Institute.
The company also uses it to do various things, such as manage pharmaceutical information, track shipments of goods, and trace the origin of food.
Additionally, Catherine Tucker, a professor at the MIT Sloan School of Management, sees tremendous potential in blockchain technology. He finds it most useful for managing digital currencies and tracking health data, as well as insurance.
Citing Entrepreneur magazine, so far people have mined more than eighteen million out of a total of twenty one million bitcoins in existence, and every transaction in Bitcoin has been recorded on the blockchain.
Without relying entirely on a central authority in terms of supervision, obtaining verification, approving transaction requests, and processing money income, bitcoin actually prefers to do all of this using a network with a peer to peer connection.