“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” This is the opening sentence of the abstract of Satoshi Nakamoto’s white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System. With this, the first cryptocurrency, bitcoin, came into existence in 2008.
Since then, bitcoin has been under the microscope. However, it has survived despite being criticized, rebutted, banned, all the while developing a core following of supporters. The responses towards bitcoin have been mixed – sometimes more negative than positive – but amid the skepticism, its underlying technology started to gain attention. Thus, bitcoin not only paved the way for a cryptocurrency revolution, but it also brought with it an intriguing technology which runs it – the blockchain.
While blockchain has been introduced by bitcoin, the fact that it can be used independent of it has created enthusiasm to experiment and work on this great innovation. Blockchain works on ‘distributed ledger technology,’ which slices out the need of a neutral authority to check or certify ownership to clear transactions which reduces the transaction time, offers high speed and makes records meddle-proof. The figure seen further