Hey everyone. Welcome back to the course. After defining what blockchain is, let's look into the history of the blockchain. Let's start with how everything began. The first known attempt at cryptocurrencies occurred in Netherlands in the late 1980s. In the middle of the night, the petrol stations present in the remote areas were being raided for cash, and the operators were unhappy about the situation.

But the petrol stations had to stay open overnight, so that the trucks could refill. Someone in the Netherland had a bright idea of putting money into smart cards, and so electronic cash was born. truck drivers were given these cards instead of the money and the stations were now safer from the robberies. David charm an American cryptographer, who was already investigating Electronic cash, came to know about Netherlands situation and decided to move to the country in the late 1980s. Working with CW why he started Digi cash, which was the first internet money invention. Unfortunately, due to some missteps, his company filed for bankruptcy in 1998.

Apart from digital currencies, other ways to safeguard information has also been introduced. A structure similar to that of blockchain has been mentioned in a research paper, which was published in 1991 by haber and store netta. With the topic, how to timestamp a digital document. According to that paper, a client sends a document for a time stamping tour Time Stamping server, and the server signs the document with the current timestamp. Also, the server will link the document to the previous document, the pointers point to a specific data and not the location of the document. So if the data is changed, the pointer would become invalid.

It ensure no one could tamper with the data that had was passed through the server. learning and improving over the previous mistakes, Satoshi Nakamoto published a white paper Bitcoin a peer to peer electronic cash system. The paper claim that it had a solution to the double spending problem in digital currency using a peer to peer network. The main aim of the paper was to build a peer to peer version of digital currency that would enable people to spend it directly without it going in a financial institution. It was a huge innovation that allowed the user to transact directly without relying on a third party. In the year 2009.

The digital cryptocurrency Bitcoin was made available Satoshi. He released the concept of Genesis block with 50 coins, which later became part of the Bitcoin peer to peer network. Bitcoin also brought in the idea of blockchain. Around 2014 attention shifted from Bitcoin to blockchain. The world realize that the blockchain can be separated from the currency and can be applied to various other use cases. This has led to the current testing and adoption period of the blockchain.

Bitcoin was just the beginning of the implementation of blockchain sooner developer named vitalik butyrin, who was the initial contributor to the Bitcoin code base became frustrated with the limitations of the Bitcoin in the year 2013. He decided to start his chain by learning and fixing the limitations of Bitcoin. He launched the initial version of aetherium In the year 2015, which was called helium. It was started with the functionality of smart contracts that can automatically perform logical operations. This was based on a set of criterias established over the blockchain. In other words, smart contracts are the mirror commitments for the legal contracts, and they can act in a similar way as your legal contracts.

For example, you can create a smart contract to bet on tomorrow's weather. Let's say you and your friend are going to bet with this contract. Both of you will predict and upload your guests through the smart contract with the betting amount over the blockchain, where it becomes immutable. The digital currencies sent to the contract will be permanently held till the next day. Once the corresponding day arise, the smart contract would change Whether you have won the prediction of whether better or not, if your prediction is correct, then the smart contract will automatically disperse the winning money to your account. Now, let's look at the timeline and see how blockchain is evolving.

The concept of distributed computing started in 1990, but it was before its time, so it was not properly accepted. It came into Limelight in 2009, when an anonymous person named Satoshi Nakamoto created Bitcoin and introduce the concept of the blockchain, which is a distributed ledger maintained by anonymous consensus by the year 2011 and 12. The deployment of cryptocurrencies in applications related to cash started to take shape, and people begin to use Bitcoin and other cryptocurrencies to transfer funds in the 2012 and 13 the currency transfer and digital payment system went mainstream, were top industry started making their financial transactions using Bitcoin and other popular currencies. By the year 2014, financial markets and applications started seeing the use of blockchain beyond cash transactions small, but distributed applications came into being like the upload of land records, or KYC process over the blockchain. In 2015, the smart contracts were introduced with aetherium blockchain.

And that opens up a very innovative and effective way of creating decentralized applications on top of the blockchain. In the same year, other blockchains also came to rise which were more inclined towards the enterprise solutions, like hyper ledger and our three coda these enterprise blockchain also introduced the permission blockchain concepts, which can be efficiently utilized by the government and enterprises to integrate their legacy systems with the blockchain. By the year 2016, and 17, the market started developing on top of the blockchain and new protocols begin to emerge. Currently, we are in a period of adoption and conceptualization with the aim of stability in the coming years. Top 60% companies of the Fortune 500 has accepted blockchain as the next big thing after the internet. And almost 90% of the banks throughout the world are working towards employing blockchain in their existing systems.

That's all about the history of blockchain. In the next session, we will see how blockchain works. Thank you for attending the session. If you have any queries do email us at info at the rate, we two blocks.com