History of Blockchain and How it Works!

Blockchain technology was originally created back in 2008 when a person or a group of people under the alias Satoshi Nakamoto invented the technology. Blockchain was originally created to serve as public ledger for the cryptocurrency bitcoin to ensure that no one alters the cryptocurrency or duplicates it. Satoshi Nakamoto is still an unknown person or group even after years of the blockchain technology being wildly successful. Blockchain has completely reinvented and improved how we process transactions to ensure that they are secure and valid.

It is important to understand exactly what blockchain is, where most people understand it as a ledger it is also important to understand how this technology actually works and what makes it so revolutionary. The main purpose being that it is a public ledger that is used to record any transactions and to ensure that the data recorded in the public ledger cannot be changed or modified without altering other data in the blockchain. This is achieved by using a peer-to-peer network and a distributed timestamping server this helps remove the potential possibility of reproducing a digital currency like bitcoin infinitely. Blockchain uses blocks that have valid transactions that are then hashed and then encoded into a hash tree which allows for efficient and secure verification for giant data structures. From each block within the blockchain houses a cryptographic hash of the previous block in the chain that linked to one another. Therefore, by using this process you can confirm the validity of the previous block and the block that is previous to that one and so on all the way to the original block. Blocks also use an algorithm for scoring different versions of the history of a block, a block with a higher score is supposed to be seen as the improved version of the block. Once a peer in the blockchain receives a higher scoring version it will then overwrite its own database and then transmit to the peers that there has been an improvement made.

Blockchain is very innovative but the technology that was used to create it was not brand new instead it was a combination of technologies to make this idea truly come to life. First technology that blockchain used was private key cryptography this was used to prove ownership of a digital currency like bitcoin and to verify that the owner is the person with the private key. Another technology that blockchain uses, is a peer-to-peer network the reason being that there must be authorization to be able to assess if you have the permission to access a resource. A peer-to-peer network also helps improve security and reduces the risk of any centralized corruption by having the blockchain be on a distributed network. Using these two technologies together along with the blockchains own protocol it is able to have authorization and authentication in a public ledger that cannot be altered without changing the other subsequent blocks in the blockchain.

Blockchain can also be used in many other important things besides cryptocurrencies. For starters blockchain is fantastic for transferring money that out performs what banks have been able to do, with banks sometimes taking days for transactions, using blockchain technology to transfer money can take a matter of seconds. Another great use of blockchain technology would be for making sure that there is no voter fraud. Currently, it has been proven that you can still hack into voting machines, creating a voting method online using blockchain technology could help streamline the process as well as ensure that no data has been altered. Blockchain technology is also great for the medical field for record keeping. For a long time, the medical community has been trying to move away from keeping records on paper to having records stored digitally. Blockchain could help keep perfect records of patients as well as help strengthen the security of a patient’s identity. Another way that blockchain could help would be by helping keep a secured list of registered guns in a country. This would be used to ensure law enforcement of who owns guns even when someone moves from state to state and could even help keep track of the guns that are sold privately. Blockchain could also help keep track of prescription drugs and keep a secured list of who the medication is for. Which could help ensure that people that are picking up the drugs are getting the correct medication.

Blockchain technology is very important and has helped progress many different fields. With blockchain being able to verify any data within the list, by ensuring that if one block gets modified it will modify the blocks that it is linked to all the way to the original block. As well as being able to authorize anyone by making sure that they can access the resource that they want to, by having a decentralized network. Blockchain technology is not limited to just cryptocurrencies is has plenty of applications. From being able to form a list of records for the medical field to keep better track of patient info while at the same time making sure that it is secure; to creating an online voting system that could help ensure that the votes have not been manipulated. Blockchain technology has helped improved and updated many important tools in the past ten years.