Satoshi Nakamoto, who introduced the Bitcoin cryptocurrency into our lives, described the possibility of people sending money to each other without the need for any intermediary in the article titled “Bitcoin: A Peer-to-Peer Electronic Cash System”. Nakamoto, who we still do not know who he is today, is in the conclusion part of this article, in which he also reveals the basic features of blockchain technology: "A system that is not based on trust for electronic transactions." he said. With this system, it has been possible to record Bitcoin transactions in an environment that is not based on trust, without a central authority to establish trust in the parties. This proposed system not only makes electronic transactions more efficient, but also eliminates the costs associated with verification activities that must be carried out by third parties or institutions such as banks and financial institutions.
Nakamoto also revealed the main features of blockchain technology in his article. Blockchain is a public electronic database that records transactions. At the base of the “blockchain” there are blocks that contain data on its name. These data blocks are linked to each other to form a continuous blockchain containing records that cannot be changed. Every computer in a blockchain network keeps track of the entire registry. Therefore, there is not even a single point of failure. The blockchain is “distributed” in a peer-to-peer network. One of the most important features of blockchain is that blockchain networks can be operated without the intervention of a central system.
Since 2008, many technological developments have occurred at a dizzying pace. From 2009, when the first Bitcoin block was created, to 2013, Bitcoin continued to rise in value, but at the same time, cryptocurrencies were banned in some countries such as China and Thailand. Some major fraud scandals had erupted. It was at this time, as a milestone in the blockchain ecosystem, that Bitcoin Magazine co-founder Vitalik Buterin published a Whitepaper proposing a decentralized application platform. With the publication of this prospectus, the foundations were laid for the establishment of the Ethereum Foundation, which started its operations in 2014. It was this development that brought the realization of the potential of blockchain technology to be used for purposes other than cryptocurrency exchange. By introducing smart contracts, Ethereum provided a platform for software developers to build decentralized applications. After Ethereum, the blockchain ecosystem continued to be an interesting technology, although it had its ups and downs.
Blockchain stands out with its reliability, immutability, traceability and transparency in a distributed network. While the new era we have entered with the Covid-19 pandemic has once again revealed the weaknesses of central systems, the basic features of blockchain technology have started to demand even more. Today, blockchain is used in many different sectors such as finance, health, energy and sports, beyond the exchange of cryptocurrencies. Blockchain technology has gone beyond being a concept associated with Bitcoin cryptocurrencies. Governments, businesses, and other institutions are exploring and implementing a new dimension of leveraging blockchain technology every day.
The blockchain, which caps on volatility, has a transparent and reliable electronic base data, emerges as a platform to choose from, where contracts of choice and crypto are generated. A new one is held on an additional day regarding applications such as voting, fundraising, real estate, intellectual property management, internet (IoT), health and digital identity. Today, it says no more to him than the demand for his blockchains. With this speed of development and spread, the blockchain will have a place in our lives as one of the foundations of Web 3.0, which points to a new internet exchange, with smart technologies.