Part 1 - Tracing the Roots: A Look at the History of Web3 Technologies like Blockchain and Distributed Ledger Systems

Understanding Web3 technology may be complicated for some people, especially if they are unfamiliar with ideas like distributed networks, cryptography, and decentralized systems.

People not well-versed in computer science or similar subjects may need to be more conversant with the complicated technical concepts and phrases used in these technologies.

Furthermore, the field of Web3 technologies is continually growing, with new concepts and advancements being made every day. People may find it challenging to stay current on advancements and grasp how these technologies function.

Thus, we will examine the evolution of web3 technologies and how they all started and learn about some key features of web3 technologies. So let's dive into the definition of web3 technologies and the role they play.

Definition of Web3 technologies and their role in the evolution of the internet

Decentralized technologies, commonly referred to as Web3 technologies, are a group of technologies that transport and store data through decentralized networks.

These technologies are intended to be distributed, which means they function on a network of computers that cooperate to keep the system's integrity rather than being controlled by a single body.

Web3 technologies, regarded as the internet's next generation, have the potential to change various industries by providing safe and open systems for data sharing and archiving. The following are some of the main aspects of Web3 technologies:

Web3 technologies are decentralized:

Which means a single entity does not manage them. Instead, they run on a computer network that cooperates to keep the system's integrity. Greater openness and security are made possible due to their resistance to censorship and manipulation.

Immutability:

Web3 technologies are the best for storing and distributing sensitive or significant information because they use cryptographic methods to ensure that data kept on the network cannot be removed or modified.

Inability to be trusted:

Web3 technologies do not rely on a central authority or other reliable entity to conduct transactions or confirm data accuracy. They substitute sophisticated algorithms and agreement processes to maintain the system's integrity. They are, therefore, perfect for situations where trust is a concern.

A wide range of businesses, including finance, supply chain management, identity verification, and more, stand to benefit from Web3 technologies.

As a result, they are likely to have a significant impact on how the internet develops and how we use it. But what, then, is the history of decentralized technologies? We will find out soon.

A brief overview of the history of decentralized technologies

When peer-to-peer (P2P) networks were first created in the late 1980s and early 1990s, the idea of decentralized technologies was already in existence. Decentralized technologies did not, however, receive widespread attention until the launch of Bitcoin in 2009.

A fascinating person or group known as Satoshi Nakamoto developed Bitcoin, the first real-world application of blockchain technology. Bitcoin's key innovation was using a decentralized network to create a digital currency independent of any governmental or financial authority.

There have been several advancements in the area of decentralized technology since the introduction of Bitcoin. A few of the significant dates are:

The launch of Ethereum in 2015 broadened the possible applications of decentralized technology beyond only digital currency and introduced the idea of smart contracts.

In 2017, there was an increase in the number of initial coin offerings (ICOs), which provided a new way for startups to raise capital by issuing their tokens on a blockchain.

The rise of decentralized finance (Defi) in 2020 has resulted in a new wave of financial sector innovation using decentralized technologies.

The growing use of decentralized technologies by businesses and governments for a variety of applications, such as supply chain management, identity verification, and voting systems.

So then, the field of decentralized technologies is still in its early stages, and we expect more evolution and innovation in the coming years.

The Early Years: Before 2009

Description of early attempts at creating decentralized systems

Throughout the internet's history, there have been several attempts to build decentralized systems. Among the earliest examples are:

Peer-to-peer (P2P):

networks were one of the first decentralized systems to receive public notice. They were established in the late 1980s and early 1990s. P2P networks enable the development of decentralized applications like file-sharing apps by allowing users to interact with one another directly without the requirement of a centralized server.

Napster:

One of the first P2P file-sharing platforms to achieve broad popularity, Napster was introduced in 1999. Although it was ultimately taken down for violating copyright, it opened the way for future P2P file-sharing platforms like BitTorrent.

Freenet:

One of the earliest decentralized networks created to allow for anonymous communication, Freenet, was built in the late 1990s. It was made to withstand surveillance and used a P2P network to enable users to post and access material without needing a centralized server.

Gnutella:

Another P2P file-sharing system that became well-known in the early years of the internet was Gnutella, which was created in the early 2000s. It wasn't easy to shut down since it was decentralized and lacked a central server.

The development of more sophisticated decentralized technologies like blockchain and distributed ledger systems was made possible thanks to these early attempts to create decentralized networks. To fully understand these technologies better, we should consider what blockchain is all about.

Introduction of blockchain technology

Without a centralized authority, secure and open systems can be created using decentralized and distributed ledger technology. Stuart Haber and W. Scott Stornetta first discussed it in a 1991 paper, but it was put into practice in a real system with the advent of Bitcoin in 2009.

Blockchain technology uses a network of computers, or "nodes," to maintain a distributed ledger. Each node maintains a duplicate of the ledger, and new transactions are entered into the ledger by consensus, a procedure where the nodes agree on the legitimacy of the transaction.

As soon as a transaction is entered into the ledger, it is included in a block with other transactions and connected cryptographically to the preceding block to form a chain of blocks or blockchains.

This makes it very challenging to change the transaction history because doing so would require changing every block in the chain.

Blockchain technology, due to its decentralized and secure nature, is a popular choice for a wide range of applications other than digital currency, such as supply chain management, identity verification, and voting systems.

Another exciting thing to know is that Bitcoin has an impact on decentralized technologies; how do we know that? Check out part two of my next article to learn more about the release of bitcoin and its impact on web3.