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History Of Blockchain Technology, The First Days Of Blockchain Technology

The basis of digital currencies is blockchain technology. This technology allows customers to reach a consensus on this network without the need to trust each other.

The first days of blockchain technology

The idea for blockchain technology dates back to early 1991, when research scientists Stuart Haber and W. Scott Stornetta provided a practical computational solution for time-labeled digital documents that could not be modified or manipulated.

The system uses an encrypted blockchain to store time-labeled documents. In 1992, Merkel trees were included in the design, making it more efficient by collecting multiple documents in one block. However, blockchain technology was not used at the time, and its patent expired in 2004, four years before Bitcoin was born.

Proof of reusable work; The entry of blockchain technology into the field of cryptocurrencies

In 2004, Hal Finney, a computer scientist and cryptographer (Harold Thomas Finney II), introduced a system called RPoW, proof of reusable work. The system worked by receiving a proof-of-work or non-exchange hash proof-based token, and instead generated an RSA-signed token that could be passed from person to person.

RPoW solved the problem of double spending by registering ownership of tokens on a reputable server designed to instantly verify users around the world.

RPoW can be considered as a prototype and a significant first step in the history of cryptocurrencies.

Bitcoin Blockchain Network

In late 2008, a white paper called Bitcoin – a decentralized electronic cash system – called Bitcoin – was sent to an encrypted email list by a person or group using the nickname Satoshi Nakamoto.

Instead of using a trusted hardware computing function such as RPoW, the protection against double spending on Bitcoin is done by a decentralized peer-to-peer protocol for tracking and verifying transactions based on the hash proof-of-work algorithm. In short, bitcoins are “extracted” by individual miners for a reward using a proof-of-work mechanism and then validated by decentralized nodes in the network.

Bitcoin protocol based on hash cache

 Bitcoin protocol based on hash caching proof algorithm

On January 3, 2009, Bitcoin was created when its first coin was mined by Satoshi Nakamoto and was then rewarded with 50 bitcoins. The first Bitcoin recipient was Hall Finney, who received 10 bitcoins from Satoshi Nakamoto in the world’s first Bitcoin transaction on January 12, 2009.

Atrium Blockchain

In 2013, Bitcoin Magazine developer and co-founder Vitalik Buterin stated that Bitcoin needed scripting to build decentralized applications. Unable to win the approval of the Bitcoin community, Vitalik began developing a distributed blockchain-based computing platform, or Atrium. This platform has a script feature called Smart Contracts.

Smart contracts are programs or scripts that are placed and executed on the Atrium blockchain. For example, they can be used to perform a transaction if certain conditions are met. Smart contracts are written in specific programming languages ​​and are collected in bytecodes. Then, a fully decentralized Turing virtual machine called the Atrium Virtual Machine (EVM) can read and execute them.

Developers are also able to build and publish applications that run within the Atrium blockchain.

These applications are commonly known as DApps (decentralized applications).

Hundreds of DApps are currently running in the Atrium blockchain, including social media platforms and financial exchanges.

Atrium’s currency code is called ether. This currency code can be transferred between accounts and used to pay the computing power fee used when executing smart contracts.

Today, blockchain technology is considered by the mainstream and is used in various cases that are not limited to cryptocurrencies.