For those who have been conversant with investments, cryptocurrency and banking over the last decade, blockchain has proven to be an innovation worth of recent century. The term “Blockchain” refers directly to the technology behind bitcoin, which is the first digital currency used for transactions. It is a decentralized, distributed ledger. Although the primary purpose of the invention was to act as a digital currency, the digital community is now developing numerous other purposes for the technology.
Bitcoin is also referred to as digital gold as to date, and the currency is worth billions of US dollars. Blockchain is undoubtedly a great innovation, as is the great scientist who invented it, Satoshi Nakamoto.
This digital coin is a ledger of economic transactions, streamlined to keep track of everything in value, not just financial transactions. It is a continuing list of blocks, also called records, which are linked through cryptography. Every block contains an encrypted hash of the previous block, a timestamp and transaction data (generally illustrated by a Merkle tree root hash). Blockchain is essentially a type of payment rail which was the first digital currency to solve the double-spending problem without the need for a regulatory authority. The very first work secured on a chain of blocks was by Stuart Haber and Scott Stornetta in the year 1991. Their main aim was to incorporate a system where timestamps could be very secure.