The Evolution of Blockchain Technology

The Evolution of Blockchain Technology

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Hack2skill
·Feb 10, 2022·

8 min read

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Innovations are always on the horizon, and it's just a matter of time till we're all elderly folks who can't compete even with the most basic of technology. Blockchain is the latest in a long line of technologies that make us doubt our knowledge.

Blockchain and cryptocurrency perplex the majority of us. Almost any time it happens in conversation, we just claim to understand what our friends and colleagues are talking about. We now exist in a world where your child may attend a crypto summer program.

Blockchain technology has evolved over the early 1990s into one of today's most disruptive and innovative technologies, having the ability to revolutionize every field from finance to production to education.

In this blog, we will go through the evolution of blockchain technology over the years.

INTRODUCTION

Choose any sector, from manufacturing to intelligent machines, and you'll almost certainly come across examples of blockchains in use. Blockchains are making their imprint in all aspects and circles.

In the next years, this technology will be a game-changer. In recent years, blockchain technology has advanced significantly in terms of growth and community usage, with no signs of slowing down.

Although Bitcoin is perhaps the most convenient application of blockchain technology, a rising number of recent users are joining it. Google, Goldman Sachs, Visa, and Deloitte, are all engaging in blockchain initiatives. Among the companies developing blockchain-based services are:

  • Spotify, to in charge of copyright management.
  • IBM, tasked with developing a tracking tool for transportation businesses and retail chains.
  • Eastman Kodak, to develop a storage system for stock pictures.

Bitcoin, the popular cryptocurrency that was originally done off by analysts following the infamous fall of 2018, has witnessed a significant increase in its value in the following year. At the moment, one Bitcoin is worth around Rs 32 lakh.

Bitcoin is generating headlines all the time, with historic levels every month, and it's dragging other assets along with it. So, you may wonder, what has prompted this tremendous price surge amid the epidemic. Covid-19, on the other hand, has been revealed to be a gift in surprise for bitcoin.

Here are the factors that boosted Bitcoin's rapid growth in the Covid-hit year of 2020.

  1. Institutional Adoption
  2. Paypal & Cryptocurrencies
  3. Bitcoin Halving Driven Scarcity
  4. Easy Accessibility To Public
  5. Demand for inflation hedges
  6. Increase legitimacy

Despite several factors that would ordinarily make investors nervous, such as US-China tensions, Brexit, and, of course, an international epidemic, Bitcoin saw a phenomenal surge in 2020.

History or evolution of Blockchain

  • The blockchain timeline from Origin to Maturity
  • In a piece of paper dated October 31, 2008, Satoshi Nakamoto proposes bitcoin and blockchain.
  • Following that, on 3 January 2009, the 'Genesis Block' - the first bitcoin operations – was mined.
  • The very first bitcoin transaction is initiated on January 12, 2009. (between Hal Finney and Satoshi Nakamoto)
  • October 31st, 2009 The Bitcoin Trade, the first bitcoin trade, is founded.
  • On the 22nd of May, 2010 for the first time, bitcoins were also used to buy an item: two pizzas were purchased for 10,000 bitcoins ($25 at the time, almost $46 million in November 2017).
  • On February 9, 2011, Bitcoin's currency value equals that of the US dollar.
  • After that, Bitcoin's market value exceeds $1 billion in March 2013.
  • June 2013 The first major virtual currency theft: 25,000 bitcoin stolen from Bitcoin Forum founder’s wallet
  • The month of June 2013 The first significant virtual currency robbery: the creator of the Bitcoin Forum's wallet was robbed of 25,000 bitcoins.
  • Bitcoin was classified as private capital by HMRC in the United Kingdom in February 2014, which means that no VAT would be imposed on bitcoin mining or trade. Mt. Gox, a Bitcoin exchange, has been hacked.
  • In July of 2014, As the very first smart contract, the Ethereum Project is funded by crowdsourcing.
  • NASDAQ launches blockchain testing in April 2015.
  • In September of 2015, R3 is a blockchain technology business formed by a group of financial organizations comprising Barclays, Credit Suisse, Goldman Sachs, JP Morgan, and Royal Bank of Scotland (RBS).
  • In December 2015, The Hyperledger Project is founded by the Linux Foundation.
  • The DAO (Decentralised Autonomous Organisation) achieved a crowdfunding benchmark in May 2016 by collecting more than $150 million (11.5m ethers)
  • The month of June 2016 In a vulnerability assault, the DAO lost a third of its ethers (about $50 million).
  • 1st of January 2017 Seven major European banks have announced Digital Trade Chain, a collaboration to provide a blockchain-based trade financing platform.
  • In April 2017, In Japan, virtual currencies are officially accepted.
  • Bitcoin exchange in July 2017 Bithumb has been hijacked.
  • In August 2017 The total number of bitcoins in existence has surpassed 16.5 million.
  • Switzerland will start receiving bitcoin tax bills in January 2018.
  • In January 2019, Coinstar machines have begun selling cryptocurrencies at supermarkets across the United States.
  • In April 2019, The total number of Bitcoin transactions has surpassed 400 million.
  • Over 80 million unique Ethereum addresses have been produced as of October 2019.
  • The proportion of Ether locked in Decentralized Finance applications hits an all-time peak of 2.7 million Ethereum in November 2019.

Take a look at the following estimates on how blockchain technology will impact various industries across the world.

Blockchain is currently one of the most widely discussed business technologies. From finance and cybersecurity to property rights and healthcare, blockchain technology has the potential to generate huge changes and new possibilities across sectors.

Many market segments have experienced considerable disruptions as a result of the emergence of digital technology during the last decade. The rise of cryptocurrencies, particularly the underpinning blockchain technology that underpins Bitcoin, promises a significant shift in how people interact with financial institutions.

Looking to start in 2022-23, the Reserve Bank of India will issue a digital rupee based on blockchain technology. India will now join a select group of countries that have launched their blockchain currency. This has far-reaching ramifications for the financial sector as a whole and emphasizes India's leadership in digital finance.

In 2021, the worldwide blockchain technology industry was worth USD 5.92 billion, with an annual growth rate (CAGR) of 85.9% predicted from 2022 to 2030. The increased capital investing in blockchain technology startups can be ascribed to the industry's growth.

Circle Internet Financial Ltd., a blockchain tech firm, for example, said in May 2021 that it had secured USD 440 million in investment from major and institutional investors. This money was utilized to help the firm grow both within and outside. The legalization of cryptocurrencies in nations like Ukraine and El Salvador is likely to open up new commercial prospects.

In 2021, the industry grew as a result of the COVID-19 pandemic. The development of a framework for controlling the COVID-19 pandemic relies heavily on blockchain technology. Blockchain technology is being used by several institutions to track the COVID-19 vaccination. This system is being used by two hospitals in Warwick (London) and Stratford-upon-Avon to track the temperature-sensitive COVID-19 vaccines preservation.

Some of the prominent players in the global blockchain technology market are:

  • IBM Corp.
  • Microsoft Corp.
  • The Linux Foundation
  • BTL Group Ltd.
  • Chain, Inc.
  • Circle Internet Financial Ltd.
  • Deloitte Touche Tohmatsu Ltd.
  • Digital Asset Holdings, LLC
  • Global Arena Holding, Inc. (GAHI)
  • Monax
  • Ripple

Blockchain as a technology evolving in the IT industry

Blockchain innovation can change our lives similar to what the Internet once did. I view it as a development of the Internet, an advancement that mirrors the progressions of society itself. The consequence, like with other technology, will be determined by how it is created and used. Increased decentralization and transparency, as well as more confidentiality and individual control of personal data, may be exactly what a more globalized, linked, and unequal society requires right now.

Blockchain is becoming a more widespread technology, as well as the market for it is constantly expanding. The worldwide blockchain technology revenue was $339.5 million in 2017. This market is expected to reach $2.3 billion by 2021. Many organizations and individuals from many areas are now considering blockchain technology that goes well beyond bitcoin and new financial structures.

However, we cannot overlook the numerous problems. The most pressing challenge is scalability, as the present transaction processing rate fluctuates greatly based on a variety of circumstances. The speed and scalability of blockchain systems will be a major emphasis point shortly. Confidentiality will remain a big concern, as it has been with other comparable inventions, despite ongoing attempts to build new models and solutions to improve security.

Final thoughts

Upcoming blockchain trends will be centered on many topics, to continuously improve value for consumers. The corporate view on the blockchain, on either hand, would have a significant impact on the future of blockchain. Many individuals dismissed the potential of blockchain technology usage in many industries.

It has, however, effectively avoided all of the unfavorable assumptions to arrive at a positive condition with blockchain implementations in a variety of use cases. Blockchain technology's potential is strongly reliant on innovation and might provide significant value to businesses. Companies are looking at new methods to exploit blockchain in the future, in addition to the traditional functionality and deployments.

The exact direction and impact of blockchain technology are impossible to foresee. However, we must not overlook its early phases of growth, as well as its accomplishments and mistakes. Following the progress of this nascent technology might help us realize its full potential.

 
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