Explore the short history of the origin of the blockchain in bitcoin, including a bitcoin explanation.
- Let's talk about the origin of the blockchain.…The fact that the blockchain emerges…as the essential supporting mechanism…for a new digital currency will play an important role…in our understanding of this technology.…The first mention of Bitcoin,…a new form of peer-to-peer electronic cash,…showed up in a paper written by someone…called Satoshi Nakamoto in 2008.…Turns out, this is not a real person's name.…Speculation is that it was a group of writers…who used a pseudonym.…
The mystery of who was behind it continued…with the emergence of Bitcoin in 2009…as open-source software,…a type of software license which allows anyone…to inspect, modify, and enhance it.…The Bitcoin software enabled a digital currency…that could be used without any intermediaries…or governing authority.…This means that currency could pass from person to person…without the need for a bank…or any other financial intermediary.…In this way, it's the opposite…of all other forms of typical currency we know and use.…
Bitcoin is called cryptocurrency…
Jonathan begins by describing some of the current challenges with the Internet, including existing risks and security problems such as identity management. Next, he describes how traditional online databases function, so that you have a basis for how the blockchain redesigns this function. He then describes how the blockchain becomes a potential solution for many of the existing limitations of online databases. Since the blockchain has its genesis in Bitcoin—the digital currency—he provides some background on that too. He also discusses how blockchain technology actually offers new capabilities beyond simply solving old problems. To wrap up the course, Jonathan shares steps you can take in your organization to understand the implications of the blockchain.
- Explain what Captcha does.
- List the core benefits of a traditional database.
- Assess whether Bitcoin requires any intermediaries in a transaction or not.
- Explain why blockchain technology is useful beyond cryptocurrency.
- Identify some ways to reduce the risk of blockchain innovation.