concept of Blockchain was first introduced in 2008 with a publication of :
“Bitcoin- A peer-to-peer Electronic cash system”, a paper by an anonymous
person or group named Satoshi Nakamoto (A pseudonym and till date no one is
sure as to who it is).
was then practically implemented in 2009 as a core component of the digital
currency, Bitcoin. It served as a digital public ledger which would store all
the transaction data on the network.
January 12 2009, the first Bitcoin transaction took place between Hal Finney
and Satoshi Nakamoto and on October 12 2009, #bitcoin-dev is registered as a
discussion topic on freenode IRC (an open source project forum) and the
Bitcoin market is established in October 31 2009 and it allows people to
exchange paper money for Bitcoin. This is when people begin to recognize it as
a digital currency.
In May 2010, the
first Bitcoin purchase was of 10,000 bitcoins for a pizza. The cost at that
time was $25 and today, it is about $ 120000000. By November 210, participation
in the Bitcoin marketplace increases the market cap to exceed $1M USD.
By Febuary 2011, BTC
continued to increase in value and reached parity with USD ($1 USD= 1 BTC) and
by March 2013, BTC market surpasses $1B USD. 10 times the growth in less than 3
claimed to have solved the problem of ‘Double spend’ in digital currency using
the blockchain technology in Bitcoin. Double spend is basically the idea of
spending digital currency in two places. This is a problem which is unique to
digital currencies since it can be replicated or produced again easily. This
would not be an issue is case of physical currencies since they cannot be
easily replicated and the parties involved in the transaction can easily verify
them. In case of digital currency, there is a risk that the holder of the
currency could make a copy of the digital token and send it to the merchant or
someone else while retaining the original.
became the first digital currency to have solved this problem of double spend
without requiring a third party or a trusted administrator.
Nakamoto disappeared from public (that is from Bitcoin forums, papers and code
contributors) in 2011. Bitcoin however continued to be developed and marketized
by the community which was focused to address various other issues in the code,
even in his absence.
is used by millions of people for payments, including growing remittances market and its market capitalization hovers
between $20-$25 Billion US Dollars.
It was in 2014, that people realized Blockchain can be
separated from the currency and can be applied to various other use-cases. This
is when the attention shifted from Bitcoin to Blockchain. Almost every major
financial institutions in the world is researching on blockchain now and some
15-20% of banks are expected to be using blockchain in the current year.