Blockchain technology originated in the academic paper proposed by Stuart Haber and W. Scott Stornetta in 1991. The two suggested using private key signatures and timestamping in signing digital documents and verifying data integrity to make backdating and tampering impossible. In 2008, Satoshi Nakamoto adopted the blockchain concept to develop bitcoin. With his paper title “Bitcoin: A Peer-to-Peer Electronic Cash System,” he presented the idea and its components and advantages to enhance digital trust.
A year later, the Japanese inventor created and launched the Genesis Block – the first of its kind – that started the cryptocurrency movement and the fintech revolution.
Blockchain is a database technology that paved the way for the emergence of bitcoin Philippines. It supports cryptocurrency Philippines by collecting and storing electronic data on one’s computer system.
For context, bitcoin and blockchain are different things. Bitcoin is a decentralized peer-to-peer digital payment. It is one of the many blockchain-powered cryptocurrencies used for more secure, traceable, transparent, and efficient trading. Everyone can access bitcoin as it does not have centralized regulatory authority. Aside from that, despite not requiring documentary requirements, expect risks and hefty fees-free cryptocurrency experience.
Contrarily, the blockchain system records cryptocurrency transactions in blocks while ensuring security through unalterable cryptographic signatures.
It works by grouping data into blocks, chaining them as one, and duplicating the chain among multiple parties. Every block in the blockchain has three essential elements: data, hash, and the previous block’s hash. The data is the date, cost, participants, and other transaction details, while the hash acts as the block’s fingerprint. Each block has a unique hash generated depending on its content. When changes occur in content, the hash of the block changes as well.
The sequential order changes when one tries to tamper with a block as blockchain creates irreversible chains of fixed data blocks. Thus, the system’s characteristic of stamping the previous block hash to the new block makes tampering with the timeline of data a difficult and close to impossible task.
But for the past decades, blockchain tech evolved as applications used for different yet beneficial purposes that get past its common association with cryptocurrencies. Various industries are now exploring their untapped potentials.
Financial institutions are researching and developing blockchain as an alternative for friction-less consumer banking, trade finance, lending, and other transactions to reduce delays and serve the best interest of their customers. Pharmaceutical companies are also integrating blockchain in their operations to trace products, prevent counterfeits, and locate recalled products in a matter of seconds. Insurance businesses use blockchain and smart contracts to automate their processes to improve speed, prevent fraud, and reduce costs.
Blockchain tech continues to undergo monumental innovations after catapulting bitcoin and cryptocurrencies in the trading industry. Such progress will open more opportunities in the future crucial in providing better and secure services.
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