Chapter 2: History of Blockchain

Some call blockchain, among other things, a trustless internet system, the Internet 2.0, and an opportunity to democratize access to information and financial resources, specifically providing options outside of traditional fiat currencies. This chapter focuses on the background and history of blockchain and specific blockchain-based applications for different economic sectors. Before that discussion, the chapter examines blockchain's evolution. Like any technological tool, the current form of blockchain technology is the result of previous iterations, prior failures, and iterative steps that jointly led to its current state. Although originally designed as an alternative to the current financial infrastructure, blockchain technology has accelerated rapidly as evidenced by current developments including stablecoins and central bank options. The purpose of this chapter is threefold: (1) to outline the foundations of blockchain technology, (2) to discuss influential trends and topics in this space, and (3) to examine how blockchain technology may influence the broader economy moving forward.