Introduction
Blockchain technology and distributed database technologies have become key technological enablers in distributed transaction and ledger systems, opening new opportunities for open-source digital platforms and services. Open source software is developed as a public collaboration and made freely available, attracting a wide variety of developers, especially in the IT industry. Making blockchain stuff happen takes a village of programmers, old-timers, brainy thinkers, and rule-makers working together; it means delaying implementation.
Blockchain environments are fully distributed systems for cryptographically capturing and storing an immutable, consistent, and linear event log of transactions between networked actors. They process monetary transactions and ensure transactions comply with programmable rules in the form of "smart contracts." Blockchain is described as "the trust machine," taking care of trust issues between individuals.
Blockchain technology provides a viable alternative to eliminate middlemen, lowering operational costs and increasing the efficiency of sharing services. It allows people to carry out transactions without the need for a central or trusted arbitrator. The world's most fundamental commercial interactions can be re-imagined with blockchain technology, allowing for new styles of digital interactions in trust-free sharing services.
Flashback
Blockchain technology was invented in 1991 by Satoshi Nakamoto. Its decentralization aspect ensures no one is in control of anything, enhancing digital trust. Since then, the technology has evolved, leading to new applications that make up blockchain history.
The starting point of the blockchain idea was an attempt to handle the issues of the financial crisis, however, the author kept it secret till 2009. The initial publishing of blockchain design was in a paper co-authored by Stuart Haber and W. Scott Stornetta, which provided a peer-to-peer network with cryptographically protected data blocks. They later upgraded the blockchain system to incorporate Merkle trees, enabling more documents to be collected on a single block in 1992.
Changes
Phase 1:
In the initial stage, (Blockchain 1, which spanned from 1991 to 2013). Bitcoin emerged essentially in 2008 as the first application of Blockchain technology setting up the basis for a bank-less payment system which can be operated without centralized institutions. It is considered the first widely used, scalable, and decentralized cryptocurrency network that depends on cryptographic proofs of work, digital signatures, and peer-to-peer networking. Since then, numerous applications have emerged, all leveraging the principles and capabilities of digital ledger technology.
Phase 2:
Blockchain Phase 2 (Contracts) began between 2013 and 2015, with Ethereum being developed by VitalikButerin. This new public blockchain allowed for the recording of contracts and expanded its functionalities from a cryptocurrency to a platform for developing decentralized applications. In 2015, Ethereum launched and became one of the largest applications of blockchain technology, supporting smart contracts for various functions.
In 2015, Linux Foundation initiated Hyperledger, an open source blockchain project that aims at boosting performance and reliability of these systems for transglobal business transactions. In 2017, EOS, a company published a paper by the title "EOS - Blockchain Protocol Powered by EOS as the Native Cryptocurrency," which was aiming to encourage the deployment of decentralized applications through an autonomous corporation.
Phase 3:
Phase 3 of Blockchain began in 2018 and focused on applications. Antshares is one of the applications(blockchain platform) launched in China in 2014 then branded as Neo in 2017, it is open source and decentralized with support from Alibaba CEO Jack Ma. It is an optimized cryptocurrency platform aimed to provide zero transaction fees and unique verification processes. Monero,Zcash and Dash blockchains were created to address security and scalability issues.
Effects
Blockchain is a chain of digital ledgers that are chronologically linked and replicated in a distributed database, with information added as blocks and never deleted. Each block is protected by cryptographic algorithms, and only authorized ones can access the information.
The computational architecture of blockchain technology creates a wide range of potential uses, such as facilitating peer-to-peer payments, managing records, tracking physical objects, and transferring value via smart contracts without a third party or manual reconciliation. The improvement in computer processing power and networking between computers have substantially contributed to the breakthroughs in the utilization of blockchain, whereas the monopolization of smartphones has made digital wallets meaningfully and abundantly used. Moreover, there are IoT (Internet of Things) and AI (artificial intelligence) applications made to assist in automation for storing massive data used for blockchain projects.
Blockchain applications are commonly used with cryptocurrencies, which use public-key cryptography as a security measure and to prevent counterfeiting transactions. Blockchain technology can be seen both as a technical and economic innovation, offering solutions where there exists a need for a reliable record of transactions in a decentralized environment where not all parties can be fully trusted.
The blockchain economy is a scenario and potential future environment where cryptocurrencies will replace current monetary systems globally. With blockchain-based asset transfer, personalized financial and government services might be better tailored to individual needs. Blockchain technology currently revolutionizes the storing, management, and transfer of value between digital identities in many economic sectors.
The Future of the Blockchain Market Report predicts that blockchain will contribute as much as $120 billion worldwide between 2018 and 2024, with mainstream adoption highly probable. The new decentralized transactional model that blockchain facilitates is likely to have a strong impact on the digital economy and global e-commerce. While blockchain technology is heavily affecting the financial sector, new industry leaders are emerging, including financial services, energy, industrial products, healthcare, and utilities.
Conclusion
Blockchain is shaking up the world economy by putting everything digital i.e. economics, finance, legal and public services. It's like a public ledger that records all your transactions, keeping them safe and secure. Finance gurus using blockchain to uplift society and the world's economy. Blockchain technology has been utilized in a variety of areas to deliver solutions to tangible problems and build a ‘third industrial revolution’. However, after all doubts and fears have been proven arguable, the pros and cons of the technology remain under discussion. The path to blockchain technology’s future seems promising because of huge funds poured into development, developers, firms, and investors. The position, therefore, has to be built on sound methodology and always predict possible negative outcomes for the management.