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Blockchain and bitcoin. History of appearance and development

17 August 2017 13:10, UTC

The first mention of blockchain term on the Internet refers to the 1990s. The definition of the payment transaction distribution system is often associated with the bitcoin cryptocurrency.

Today the blockchain is actively used to register any possible events. The technology itself guarantees protection from making changes or deleting existing records with equal access rights for each participant. Database protection, formed by the blockchain, is based on mathematical algorithms.

Who and when created bitcoin and blockchain?

Initially, the principles of the tech were proposed to the public by Satoshi Nakamoto in 2008. Already in 2009, the concept of building a transaction architecture was implemented in a new digital project called “Bitcoin”. The first success of e-currency is based on the exclusion of double costs, since duplication of already made records is impossible. Each section of memory has a timestamp to the action in the system, and it’s also the starting point for creating the next logical chain of events.

What features were put into blockchain technology

The system is characterized by high resistance to failure. This is possible due to the distributed type of information storage. Technology excludes the control body from the process of forming the storage. As a matter of fact, storage of a database is carried out autonomously, due to the capacities of each user. System availability is supported by participants who are online. Technology eliminates overloading by exceeding the number of users running a session. The more participants include their computers — the more stable the blockchain becomes.

It is impossible to repeat the data that is recorded in the system. Each piece of information has its own place, once defined in the system. Verification of any piece of information passes quickly. It is impossible to change transactions for fraudulent activities — the introduction of new information is confirmed by the other participants. If other users don’t confirm the transaction, it is rejected.

Blockchain and bitcoin in dates and numbers

The publication of the first press releases and the registration of the official domain bitcoin.org in 2008 was the first stage of the launch of this project. At the beginning of 2009, the network of bitcoins was put into operation and the first client who wanted to create wallets appeared. At the startup point, coins were distributed free of charge, the reward could be up to 50 bitcoins. In just a couple of years, millions of users have joined the system, who were eager to replenish their wallets through “mining”. All over the world personal computers have been working, calculating new chains of blocks. By the end of 2009, the rate of bitcoins approached the average of 1000 per US dollar.

Further development of the technology in 2011-2013 required serious block technical innovations from the developers, because of notorious cases of hacking the exchanges and the arrests of the black market persons, which attracted public attention. Despite that, due to the strengthening security of the blockchain and key events in the digital world, bitcoin reached a value of more than 1000 USD by the end of 2013 and continued to grow.

Nowadays there is a change in the attitude towards blockchain technology. Officials all over the world start changing their minds about conducting operations in the cryptocurrency, and representatives of the banking sector are seriously considering the concept for transferring transactions to an innovative platform.