From the Beginning to the Present: A Brief History of Bitcoin

Most people have heard of Bitcoin so far, probably because it reached the mainstream media two years ago. Since then, Bitcoin has been a very frequently discussed topic around the world, especially in online conversations where those who are willing to learn more about cryptocurrencies and the crypto scene appear.

Who is the founder?

Bitcoin began its journey more than a decade ago, in October 2008, when its creator Satoshi Nakamoto published the manifesto “Bitcoin: A Peer-To-Peer Electronic Cash System”. In that work, Nakamoto, whose identity remains a mystery to this day, sets out plans for how Bitcoin’s blockchain network(a chain of blocks as digital information) will function, and that moment is practically the very beginning of a climb all the way to the top.

First Bitcoin payment

In January of the following year, Nakamoto translates what he promised in the manifesto. He did this by excavating/mining the first block(which means that he mathematically processed the data from the first block in a chain array of blocks, ie blockchain), which became known as the genesis block. Only a year later, in May 2009, Bitcoin network user Laslo Hanjec paid 10,000 BTC(Bitcoin, digital coins) for two drinks, which went down in history as the first purchase made with a script currency.

The emergence of other cryptocurrencies

In the period between 2011 and 2013, the Bitcoin network is growing more and more, and at one point its value is equal to the US dollar. This period also represents the time when the first cryptocurrency rivals, Litecoin and Ripple, appeared, which were weak competitors.

Somewhere around 10 digital currencies can soon be found on the scene, and that number has multiplied hundreds of times since then. However, Bitcoin still remains the dominant cryptocurrency, which is reflected in the fact that one lesser-known “wallet” for cryptocurrencies is used by as many as two million people in at least 40 countries around the world.

The further path of Bitcoin

In 2014, the value of Bitcoin dropped dramatically – by over 50%. This was one of the biggest blows to the young cryptocurrency market and crypto scene and it took about two years for the price to recover. The decline in value was largely due to the enormous theft-hacking of cryptocurrency exchange offices, and such attacks still pose a great threat to many of them.

Bitcoin also has competition

Since 2016, work began on the network of Ethereum, the main rival of Bitcoin, which is responsible for the invention of the so-called “smart contracts“. Also, we experienced 2017 when the spotlights of big media houses lit up the crypto scene thanks to the rise in the value of Bitcoin, where at one point it was sold for about $20,000, and along the way probably over 6000, 7000 digital currencies were created(no one knows the exact number, many of them are inactive projects).

Institutions towards Bitcoin

Bitcoin and the blockchain technology behind it have also managed to leave an impression on other areas, where many industries and business models now recognize the benefits that this technology brings.

Bitcoin and blockchain gambling are developing rapidly, becoming more popular and managing to provide advantages that other payment methods, systems and platforms of different characters, value transfers and information simply cannot.

Also, there has been some progress in the banking and finance sector, as P2P(peer to peer) networks for loans have emerged, as well as real solutions to some of the banking problems that are also attracting more and more interest. Bitcoin started its adventure a little over a decade ago, but just have started.

What Is Bitcoin BlockChain?

Blockchain has only existed for ten years and has started to expand. You can do so much with it that most people don’t really know how to put it in simple words.

Blockchain makes commerce better and reliable. Depending on your goals, you can give them one application or another. One of them turns out to be Bitcoin blockchain, the coin that’s changing the crypto world.

Although Bitcoin wouldn’t exist without Bitcoin, most people never hear it unless they research. They hear it on the news and online media, and how bitcoin is going off the charts.

But Bitcoin isn’t a trading trend. It bases on real advancements with true market value. If we know how blockchain works, it can help us understand what Bitcoin how it will do in the future. Because blockchain is here to stay.

Why Is Blockchain Valuable?

International commerce would be inefficient without institutions. Without banks, there would be a lot of friction with the transfer. Why should we trust each other?

Instead, we rely on an institution to make secure transfers. It adds other privileges, such as buyer-seller protection, money lending, and interest.

But you still need to trust your bank and pay fees for their brokerage service.

Blockchain creates secure transactions, so we won’t need anybody in the middle to monitor. Apart from making transfer cheaper, it prevents banking and accounting fraud.

What Is A Bitcoin BlockChain

1. You buy or sell something online.

2. A computer network verifies it. Each transaction is sequential and comes with data to identify the previous transaction. If they don’t match, they cancel the transfer.

3. Block-chaining. A transaction block has three parts: the previous block signature, your transaction data, and your one-time signature. If the last-block signature matches, they approve it and chain your transaction block.

Mind that the verification steps become more secure as more people use blockchain. For further security, each block has 10-30 minutes to verify before it cancels.

A Blockchain transaction can take ten to thirty minutes to complete. But once it does, nothing will undo it.

What BlockChain Has To Do With Bitcoin

With Blockchain, buyers and sellers can trade with confidence. Because of how it’s built, you only need the block identity.

Blockchain is public, but could be anonymous? That’s what makes a bitcoin blockchain different.

Since it’s designed to be unhackable, there’s no harm in making transactions untraceable.

Bitcoin encrypts the data to protect it, but it’s relative to the number of validations you get. Does it matter if you get ten checks, six, three…zero?

“Imagine you want to buy Bitcoin for $3000 cash with a peer. How do you coordinate to protect the payment?

The trader will send $3000 in BTC to your crypto-wallet, and computers start to verify it:

  • 0 checks. No security unless you trust the person.
  • 3 checks. Verified for most cases (+75%)
  • 6 checks. Highly secure (+90%)
  • Up to 30 checks. Maximum (~99%)

The more validations, the safer. After six, you can pay the other person.”

Blockchain has many applications. What we see with Bitcoin today is a demonstration of how powerful it can be — which only leaves us wondering what will be the next big thing.