The Advancement Of Blockchain-From Bitcoin And Beyond
The development of blockchain can be roughly divided into three stages, marked off by important developments and inventions. Even though the technology has only recently debuted in the grand scheme of the Internet, it's easy to mark its early milestones.
The pseudonym developer of Bitcoin, Satoshi Nakamoto is widely credited for outlining blockchain in its current form. Though ideas were floating in the Computer Science communities, the technology was initially conceptualized to support the Bitcoin network. The technology found varied applications over the course of its development. However, it was designed specifically to advance the horizons for digital currency.
At its inception, blockchain was to be set up as a shared public ledger that could support a cryptocurrency network. Blockchain technology in its present forms relies heavily on the features it was established with and Bitcoin’s blockchain largely remains unchanged.
Satoshi’s idea for blockchain was to make use of 1MB worth of information on transactions, per block. These blocks were placed on a chain through a complex cryptographic verification process, making the placement immutable. Hence, creating a highly secure permanent record.
Contracts – The next development
Blockchain was believed to be a revolutionary technology that had the potential to do more than documenting digital transactions. Innovation was at its prime. The founders of Ethereum, for instance, introduced the idea of smart contracts, which became another milestone for blockchain development.
Contracts in the traditional sense are managed between two entities, sometimes under the oversight of a third mediating entity. Smart contracts, on the other hand, are self-managed on a blockchain. These contracts are actually computer programs that can oversee all aspects of an agreement, from creation to execution. Changes and adjustments within such contracts are updated when conditions are met, such as expiration dates. This holds the potential to manage documentation with no involvement of an outside entity and can be applied to almost all fields of business.
Footsteps towards the future
Blockchains’ biggest challenge remains scaling. Cryptocurrencies have time and again tried to revise their blockchain in order to ensure scalability, improve transaction processing times, and avoid bottlenecking. The next big milestone for blockchain technology will target an easier scalability.
New applications beyond the cryptocurrency industry are also being constantly developed. Blockchain technology has already seeped into the world of supply-chain management effectively. The technology also offers a tremendous level of security given its decentralized verification process, which makes it great for identity management. This mechanism could ideally be used for identity verification. The culmination of blockchain with other adjacent technologies will also give rise to exciting technological developments.
Given the endless possibilities that yet remain to be discovered, blockchain technology could emerge as the biggest boon from the cryptocurrency boom. The era of innovation has only just begun in the world of blockchain technology.