How the 90s Laid the Groundwork for the Rise of Blockchain Technology

How the 90s Laid the Groundwork for the Rise of Blockchain Technology

Blockchain technology has been around for just over a decade. But the seeds to its revolutionary potential were sown in the 1990s with the development of various technologies that led up to the birth of bitcoin, blockchain’s most famous offspring.

The 90s were a pivotal decade in technological advancements, and the foundations were laid for the digital currency revolution that blockchain helped facilitate. Here are some of the key events that took place in the 90s that enabled the rise of blockchain technology:

1. The internet

The internet emerged as a game-changer in the 1990s. Suddenly, people throughout the world could connect with each other in real-time, and the possibilities for new digital technologies were limitless. The internet became a place for e-commerce and brought a whole new way of doing business.

2. Cryptography

Cryptography was already in existence before the 90s, but the decade saw significant improvements in the field. People began to see the value of encryption, and more research and innovation went into it. This technology paved the way for safer and more secure online transactions.

3. Digital Signatures

Digital signatures were invented in the 1990s to enable authentication of digital documents. Digital signatures act as electronic fingerprints that verify the authenticity of documents and transactions. This innovation was vital to the development of blockchain technology.

4. Triple-Entry Accounting

In 1994, an Italian businessman, Antonio Facciloli, proposed a new accounting concept, triple-entry accounting. It is the process of adding a third entry to a transaction that records an additional entry, thereby creating a more transparent and secure accounting system. Triple-entry accounting laid the foundation of blockchain’s decentralization, which thrives on transparency and security.

5. Hash Functions

Hash functions were invented in the early 1990s. A hash is a unique code generated from an input message that can verify the authenticity of data. It enables immutability, a core attribute of blockchain technology.

Conclusion

The 90s were a crucial decade in the development of blockchain technology. The emergence of the internet, cryptography, digital signatures, triple-entry accounting, and hash functions made it possible for blockchain to become a reality. When Satoshi Nakamoto created bitcoin in 2009, he built on the foundations laid by these innovations, and blockchain technology was born. The impact of blockchain may still be in its early stages, but the groundwork laid in the 90s has enabled it to become one of the most significant technological advancements of the 21st century.