Kristen Bouchrara
Apr 25, 2022
The term blockchain was coined by early bitcoin developers, who referred to the technology as a "proof-of-work" chain. Hal Finney produced the word during a forum discussion about how much time it takes to download Bitcoin's "block chain".
History
On November 9, 2008, a year before being diagnosed with ALS, Hal Finney wrote:
"It is mentioned that if a broadcast transaction does not reach all nodes, it is OK, as it will get into the block chain before long. How does this happen - what if the node that creates the "next" block (the first node to find the hashcash collision) did not hear about the transaction, and then a few more blocks get added also by nodes that did not hear about that transaction? Do all the nodes that did hear it keep that transaction around, hoping to incorporate it into a block once they get lucky enough to be the one which finds the next collision?"
Hal Finney and his contribution to blockchain technology The word blockchain is a compound word formed from two words: block and chain. Bitcoin is based on blockchain technology and is sometimes referred to as a digital or virtual currency because it does not have a physical form. Instead, bitcoin is created through a process called mining. Miners are rewarded with bitcoin for verifying and adding transactions to the public ledger, commonly referred to as the blockchain. Hal Finney was also the first to join Satoshi in mining bitcoin. He asked many good questions to gain a deeper understanding of the technology and its applications. He also ran bitcoin software on the first day it was released and continued to contribute to the project until his untimely and far too early death in 2014 from ALS.
What is Bitcoin, and how is it related to blockchain?
Created in 2009 by the still anonymous Satoshi Nakamoto, Bitcoin is the first decentralized cryptocurrency, as it is not subject to any government or financial institution. Thus, the term bitcoin refers to both the cryptocurrency and the blockchain technology that powers it. Today, blockchain is considered one of the most innovative and transformative technologies in the world. And bitcoin is still at the forefront of this technological revolution.
The bitcoin network is a peer-to-peer payment system that runs on a decentralized blockchain. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger, originally called a proof-of-work chain, but thanks to Hal Finney it's now referred to as a blockchain.
Bitcoins can be used to buy goods and services online, or they can be held as an investment. Bitcoins are traded on exchanges and can also be converted into other currencies.
Bitcoin is the most popular cryptocurrency in existence, due to its “proof of work” consensus mechanism and being the original cryptocurrency.
The impact of blockchain is just beginning A 2020 survey conducted by HSB indicated that 36% of small to medium businesses in the United States accept Bitcoin payments. "Block chain" has been revolutionary and continues to revolutionize the way we buy, store value, invest, borrow, create, entertain, and communicate. This decade will be historical in the changes we will see in so many areas of our lives. Please comment on how you think blockchain and cryptocurrency is changing your life or how you see it changing lives in the future.