What is the history of blockchain technology?

Blockchain technology emerged in the late 1970s when a computer scientist named Ralph Merkle patented hash trees, or Merkle trees. These trees are a structure from computer science for storing data in linked blocks using cryptography.

What is blockchain technology?

Blockchain technology is an advanced database mechanism that allows the transparent sharing of information within a company's network. A blockchain database stores data in interconnected blocks in a chain. The data is chronologically consistent because it is not possible to delete or modify the chain without the consensus of the network. As a result, you can use blockchain technology to create an unalterable or immutable ledger to track orders, payments, accounts, and other transactions. The system has built-in mechanisms that prevent unauthorized transaction entries and create consistency in the shared view of these transactions.

Why is blockchain technology important?

Traditional database technologies pose various challenges for recording financial transactions. For example, consider the sale of a property. Once the payment is made, ownership is transferred to the buyer. Both the buyer and the seller can record the monetary transactions, but neither can be fully trusted. The seller may claim they did not receive the money, even if they did, and the buyer may similarly claim to have made the payment, even if they did not.

To avoid legal issues, a trusted third party needs to oversee and validate the transactions.