How Blockchain was Created


Blockchain was created in 2008 by the group of unknown people that go by the pseudonym Satoshi Nakamoto. It was originally created for Bitcoin, the digital currency. Since then, all problems associated with Bitcoin's blockchain have come from bad intention (hacking) and human error (mismanagement), not flaws in the underlying blockchain concepts.

The first work on something resembling a blockchain occurred in 1991 by Stuart Haber and W. Scott Stornetta. By incorporating Merkle trees into the design, the pair created the first cryptographically secured chain of blocks. Because of its ability to allow several documents to be collected into one block, this chain was incredibly efficient.

What's a Merkle Tree?

A Merkle tree (also know as a hash tree) is a tree in which every leaf node is labelled with the hash of a data block, and every non-leaf node is labelled with the cryptographic hash of the labels of its child nodes. Hash trees allow efficient and secure verification of the contents of large data structures. Hash trees are a generalization of hash lists and hash chains.

Merkle trees are used in hash-based cryptography. These can be used to verify any kind of data stored, handled and transferred in and between computers. Merkle trees can help ensure that data blocks received from other peers in a peer-to-peer network are received undamaged and unaltered, and even to check that the other peers do not lie and send fake blocks.

©2018, CMU Contact me