Evolution : Blockchain Technology

5 min readMar 30, 2020

Sometimes ago this word was new for us but as we start work with Blockchain technology and we enriching our knowledge day by day about it, we now know little more about this technology. Today we are discussing about the blockchain technology and how it works and how we use it. Let’s start...

Blockchain Technology is work behind all Cryptocurrency. Let’s understand with this example: Two friends leaving far away from each other and they want to money transfer each other. As today they trust in the third party which is the bank and they transfer the money by bank. In this bank transaction possibility one is, Bank takes higher charges for transferring the money as compared to the cryptocurrency second is hackers will steal online you money and third is poor data recovery there is only a single copy of transaction data if its loss it, it can’t be recover. And this problem is solved by bitcoin and blockchain technology

What is Blockchain Technology?

Blockchain is a list of records which store data publicly and in chronological order.

Blockchain is a distributed database of immutable records called blocks, which are secured using cryptography. Here we can say that one the data is recorded, it cannot be changed, it cannot be altered that is attributing to the immutable Blockchain.

A block is a record book which contains the details of transaction data

Block consists of four primary details.

1. Hash of the previous block

2. Transaction data

3. Nonce

4. Hash

This is the basic concept of Blockchain. Different cryptocurrencies use different hashing algorithms like Bitcoin has SHA256, Ethereum has ETHASH.

Types of Blockchain

There mainly three types of Blockchain

Public Blockchain
Private Blockchain
Consortium Blockchain

Now let’s discuss all the three one by one.

1. Public Blockchain

A public Blockchain as its name suggests is the blockchain of the public, meaning a kind of Blockchain which is-‘ for the people, by the people and of the people’
Here no one is in charge and anyone can participate in reading/writing/auditing the blockchain. Another thing is that these types of blockchain are open and transparent hence anyone can review anything at a given point of time on a public Blockchain.
But a natural question that comes to our mind is that when no one is in charge here than how the decisions are taken on these types of the Blockchain. So the answer is that decision making happens by various decentralized consensus mechanisms such as proof of work (POW) and proof of stake (POS) etc.
Example: Bitcoin, Litecoin, etc.

2. Private Blockchain

A private Blockchain is a restrictive or permission blockchain operative only in a closed network.
Private Blockchain is usually used within an organization or enterprise where only selected members are participants of a Blockchain network.
Here the consensus is achieved on the whims of the central in-charge that can give mining rights to anyone or not give at all.
Thus, a private blockchain is similar in use as a public Blockchain but has a small and restrictive network.
Private Blockchain networks are deployed for voting, supply chain management, digital identity, asset ownership, etc
Examples: Multichain and Hyperledger projects (Fabric, Sawtooth), Corda, etc.

3. Consortium Blockchain

Consortium Blockchains are sometimes considered a separate designation from private Blockchains.
The main difference between them is that the consortium Blockchain is governed by a group rather than a single entity.
This collaborative model offers some of the best use cases for the benefits of Blockchain, bringing together a group of “frenemies”- businesses that work together but also compete against each other.
They are able to be more efficient, both individually and collectively, by collaborating on some aspects of their business.
Participants in consortium blockchain could include anymore from the governments to the central bank, and bank to supply chains. No single entity Rights to change in the Blockchain system.

Evolution of Blockchain Technology

1991

The first work on a cryptographically secured chain of blocks was described in 1991 by Stuart Haber and W. Scott Stornetta. They wanted to implement a system where document timestamps could not be tampered with.
In 1992, Bayer, Haber and Stornetta incorporated Merkle trees to the design, which improved its efficiency by allowing several document certificates to be collected into one block.

2008

The first Blockchain was conceptualized by a person (or group of people) known as Satoshi Nakamoto in 2008.
Nakamoto improved the design in an important way using a Hashcash-like method to timestamp blocks without requiring them to be signed by a trusted party and introducing a difficulty parameter to stabilize the rate with which blocks are added to the chain.
The design was implemented the following year by Nakamoto as a core component of the Cryptocurrency bitcoin, where it serves as the public ledger for all transactions on the network.

2012

Developed by the US-based technology company Ripple Blockchain Labs Inc. in 2012.
Ripple Blockchain is a real-time gross settlement system (RTGS), currency exchange, and remittance network.
The most distinguishing feature of Ripple Blockchain is its build schematics.

2013

Ethereum was proposed in late 2013 by Vitalik Buterin.
Ethereum proposed to utilize Blockchain technology not only for maintaining a decentralized payment network but also for storing computer code which can be used to power tamper-proof decentralized financial contracts and applications.
Ethereum applications and contracts are powered by ether, the Ethereum network’s currency. read more about Ethereum click here.

2014 -2020

Many blockchains came out between 2014 to 2020 and all blockchains use-cases are different. Thus in this period, the Blockchain industry developed very well.

in this period's lots, up blockchain comes out, inbuilt some major popular blockchain is like Neo, Cardano, Tron, Binance and many more.

Evolution of Blockchain Technology is one of the biggest changes ever made in the cryptocurrency future. Blockchain technology is the one who responsible for decentralized the transaction and provide a high level of security. To make the cryptocurrency world better and better periodically such changes are made by researchers and developers to enhance the scalability and security and making large market of cryptocurrency in the recent financial economy. Also, there are numbers of supportive element and tools which makes the digital money world better.

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