History of Blockchain Technology & Cryptocurrencies
Nowadays, blockchain is the latest technology in data science. It is the great revolution of the 21th century. In the 20th century, the concept of blockchain technology was first introduced. Satoshi Nakamoto was the inventor of this technology. It is the platform of digital cryptocurrency. Moreover, cryptocurrency is the medium of exchanging currencies over the internet. Therefore, for exchanging the currency, you must need proper technology. Blockchain is mainly that type of technology. It provides secure, trustable, and distributed transactions. Now, I would like to explain in detail about blockchain technology.
What is Blockchain Technology?
Blockchain is mainly a database that records all transactional information. This technology helps to understand the history of assets. Also, it is a distributed and decentralized database system that allows creating hashing. Every hash consists of some numbers and letters. Moreover, all transactional record or information is transferred block by block within a chain. So, I can not delete or rewrite the information. Only I can see the real sequential history of any assets. Also, it is called a digital ledger. Because, in this technology, the owner can provide digital signatures for validation purposes, and this technology is safe from all types of tempering.
So, blockchain technology is one type of digital technology that creates a platform for storing transactional records. This information is stored as a block by block, and these blocks connect each other like a chain. The whole mechanism is controlled in a public database as well as the information is shared among various computers in a network. Also, in this technology, all information is stored depending on the actual purchase. So, everyone only can see these records, but they do not modify or update any records.
History of Blockchain Technology
In the 1991’s, first, the world got the flavor of blockchain technology, but then many of them did not know the appropriate use of this technology. Since 2008, this technology has become more popular, and people have realized its benefits.
From 1991 to 2008, I consider the early years of this technology. First, they invented a cryptographically secure chain, and this chain has consisted of some blocks. Also, in this chain, no one can not modify these documents.
In 1992, for updating this system, they incorporated the Merkle trees process. After incorporating these Merkle tree procedures, they got a more effective and upgraded system. For that reason, they can be able to collect more information within a single block.
In 2008, this technology turned on a new journey with the help of a person or a group of people namely Satoshi Nakamoto. He is the builder of this blockchain mechanism. But there is no source to understand details about him. Some of them believe that he was the person who worked on Bitcoin, and it is the first application of digital ledger technology. After that, people invented many applications, involving this technology.
In 2009, Satoshi Nakamoto launched the first whitepaper of this technology. Also, in this whitepaper, he described the details about this technology. Moreover, he mainly established digital ledger technology, and this technology is based on Bitcoin cryptocurrency. After establishing this, he handed over this development to the core developer, and then the history of blockchain mainly begins.
Now, I would like to describe the evaluation of blockchain technology.
Phase 1- Transactions
Bitcoin Emergence
From 2008 to 2013, I considered the first phase of this technology. It is the phase of innovating Bitcoin. Here it is necessary to understand that Blockchain and Bitcoin are not the same things. Bitcoin is the first application of blockchain technology. Also, Bitcoin is the first invention of cryptocurrency. It is the process of an electronic peer to peer transaction. In this phase, he created the genesis block, and the other blocks were extracted from this. As a result, these blocks create the largest chain, and it holds lots of transnational information. So, this phase is considered the primary stage of digital ledger technology.
Phase 2- Contracts
Ethereum Development
From 2013 to 2015, I considered the second phase of this technology, and this is the phase of developing Ethereum. There is no doubt about the blessing of Bitcoin, but it has some limitations. For solving that, the concept of the phase Ethereum arises. It is another achievement of blockchain. Moreover, this phase can perform several functionalities without being peer-to-peer interconnection. Also, using a function, it can be able to record people’s assets and contracts. After that, the developer added many features that can be able to support smart contracts for performing various functions. So, it performs an efficient role in developing blockchain technology.
Phase 3- Applications
The Future
From 2018 to the present, I consider the third phase of this technology. This is the phase of applications of the blockchain. In recent years, I found some limitations of Bitcoin and Ethereum. So, at present, the developers have tried to solve these issues. They invented NEO, which is the first open-source decentralized blockchain platform. At first, this application launched in China. Also, the developers include IoT technology with this field for getting a more effective system. Then, they get an optimized blockchain platform due to the use of the internet of things. In this phase, this technology has become more secure and scalable.
How does Blockchain Technology work?
In this section, I will try to discuss how blockchain technology works properly. Moreover, this technology consists of mainly three components: blocks, nodes, and miners. Now, in the following section, I would like to explain these three components.
Blocks
Every chain mainly consists of some blocks, and each block contains lots of information. Moreover, every block has three important factors. These factors are:
- Each block contains various data or transnational information.
- There is a 32-bit whole number that is called the nonce. When any block is created, then the nonce is automatically created. After that, it creates a block header hash.
- The hash is joined to the nonce, and it is a 256-bit number. Moreover, the hash starts with a huge number of zeroes.
After creating the first block, a nonce creates a cryptographic hash. So, the verified data are stored in the block as well as the nonce and hash are conjoined together for performing the task properly.
Miners
Every miner helps to create new blocks in the process called mining. Moreover, every block consists of a unique nonce and hash. Again each hash is referred from the previous hash. So, this is not an easy process in the large chain. Also, finding the appropriate nonce is a tough task for every miner. They use special software for solving an extremely complicated problem.
After that, using this software, they can find out the real nonce that creates an accepted hash. Besides, there are lots of nonce-hash combinations available because every nonce is only 32-bits, and every hash is 256-bits. So, it is difficult to find out the real one. After finding the golden nonce then, they will be able to add it in the chain.
Therefore, manipulating this technology is a more difficult task because, when you change any blocks then, it will have to be modified for all upcoming blocks. If everything is maintained properly, then every block would be mined successfully and perform its task appropriately.
Nodes
In blockchain technology, any electronic or smart devices play the role of a node. Also, this technology has a decentralized system. So, anyone can not maintain this as his personal choice. It has mainly a distributed ledger system that helps to connect the nodes within the chain. Moreover, these nodes help to maintain the copies and perform the network functionalities.
Furthermore, in this technology, every user has its unique alphanumeric identification number that helps to complete the transactional operation. Moreover, blockchain is a transparent system. So, using this technology, everyone can easily check and view their transactional history.
Application of Blockchain Technology
Mainly blockchain technology was built for considering the cryptocurrency medium. But now, this technology is used in various fields. Though, many people do not know the proper use of this technology due to the proper knowledge about this. So, for that reason, I would try to explain the applications of blockchain.
Medical Sector
Using this technology, you can keep a record of all patient-related information. Also, you can store these pieces of information and can share these with all sectors. Moreover, everyone only can see this information, but they can not modify it. Using this technology, can record various historical data like age, gender, etc. that helps to identify the patient’s problem easily.
Agriculture Sector
You can store all agriculture and cultivation related data or information using this technology. Also, farmers can get these pieces of information anytime and anywhere easily. As well as, they can understand the weather information, the nature of seeds, the type of soil, bugs and fungus related information, etc. Moreover, using this technology, they can easily track the customer’s demand and selling price. So, using this technology, farmers can easily understand these pieces of information. After that, using these instructions, they can be prepared themselves.
Banking Sector
This technology plays a vital role in reducing corruption. Using this technology, you just can see the transaction report. Also, you can not rewrite or delete any information. So, it serves a platform that ensures a secure activity. You also can deal with international payment using this platform. Moreover, it can reduce the number of intermediaries and fraud transactions. So, this technology can decrease these extra costs in the international payment transferring process.
Financial Sector
It can improve capital markets. Because this technology is faster for clearing and adjustment. Also, it can help to manage the cross-border trade. Moreover, this technology can allow a large number of transactions smoothly and efficiently. Therefore, this platform can reduce human error and increase work efficiency.
Payment Processing System
This technology helps to transfer payment safely and securely. It provides various solutions against numerous problems of money transferring. Also, this platform can help to transmit remittance data securely. Moreover, in this process, when any changes will occur to any node then, it will need access to other nodes. As a result, when a buyer or seller modifies any transaction then, everyone can understand this. So, it is the most secure and scam-free payment processing platform.
Food Industry
Using this technology, you can understand the life-cycle of any food. Also, this technology can help you to keep records and track any package of food. So, customers can get pure and fresh food due to this technology.
Smart Contracts
In the Ethereum phase, this technology develops smart contracts. They developed a decentralized platform that provides a smart contract system. Also, this smart contract system allows only authentic users. Moreover, this system does not allow any downtime, censorship, fraud, or third-party interference.
Supply Chain Management System
Using this technology, you can keep a real-time record and track of all goods. Moreover, you can easily understand the life-cycle of goods within the supply chain. So, this technology provides a way of tracking data and storing it for further use dynamically and efficiently.
Cybersecurity
The great advantage of blockchain technology is that it can reduce the risk of single-point failure. Also, this technology allows encryption methods for transferring data. Moreover, it can provide high security and privacy.
Big Data
Using blockchain technology, all information can be verified continuously. Thus, it helps to manage the field of big data. Moreover, this technology plays an important role and acts as a tool for storing big data.
Cryptocurrency Trading
Now, I would like to share with you how this business is growing so much. For this, I studied a software company, and I am working for them. They work with blockchain technology and creating cryptocurrency trading software, MLM and cryptocurrency exchange platforms, and ICO software. Mainly these three types of software used to trade that’s why I mentioned them. Since I saw the company closely and they are doing well and definitely I’ll recommend you but you have to judge before taking any decision, I shared them for learning purposes.
Cryptocurrency is one of the best revolutions within the present world. it’s referred to as a digital currency that’s being produced & managed by blockchain technology. Because it is the result of technology, there’s a huge auto-set arithmetic logical coding project(software) associated with it. However, the thousand dollar question is what’s cryptocurrency trading software?
Cryptocurrency trading software may be a set of code that’s designed to manage every aspect of crypto trading. Crypto trading business module is the combination of functions like cryptocurrency buy, sell, exchange, pair-exchange, analysis, investment, etc. Crypto trading software is being made for handling these functions.
How will it help you?
Making Offer: Users may make a sale or offer for a specific coin upheld by the stage. The accompanying parameters are often set for every offer:
Starting Trade As a purchaser or merchant, you’ll choose between the rundown of accessible offers from the commercial center with which you’ll start an exchange. some of the highlights of exchange incorporate.
Buy & Sell: Trading on p2p may include purchasing/offering cryptographic sorts of money with the capacity to pay or get installments in differing measures of the way. As an example, an excellent many of us wish to get a coin reciprocally for any of the accompanying classifications of installment. Be that because it may, the overseer can include or evacuate supported the world of their business.
Conclusion
In the present world, blockchain technology is a marvelous technology in the blessing of data science. Moreover, this technology can provide a more updated, trustable, and authentic platform. So, blockchain technology will be the best cryptocurrency platform in the future.
