You’d think that an invention with the potential to drive major transformations across industries and economies is something everyone would be acutely aware of, but the curious thing about disruptive technologies is that the general public doesn’t really notice them. They somehow manage to embed themselves into each and every area and aspect of life and become a ubiquitous part of daily existence to the point that no one notices them anymore.

That’s also the case with blockchain. The technology remains largely inconspicuous as the majority of individuals don’t pay much attention or care to learn more about it. However, while most are looking away, blockchain is slowly and imperceptibly infiltrating the fabric of modern society. You may not be able to see how it works or what it does with the naked eye, but blockchain technology is here to stay, silently spreading throughout the world and producing major shifts along the way.

Most people have heard about blockchain in the context of crypto since this is arguably its most notable application so far. If today we can use crypto as an alternative payment system and trade pairs such as BTCUSDT and other similar digital assets, it’s all because this groundbreaking technology made it possible.

But very few know that this was only the beginning for blockchain. After facilitating the emergence of this novel asset class, blockchain went on to support the development of other innovative applications and solutions in many other domains, and more are certainly bound to come.

Going back to blockchain’s roots

While blockchain’s birth is often equated with Bitcoin’s launch in 2009, things started much earlier than that. Like most technological breakthroughs, there wasn’t a single event that led to its creation and there wasn’t much noise when blockchain was finally introduced to the public. The concept behind blockchain had existed long before Bitcoin and the technology developed gradually over the course of several decades, being made of numerous discoveries and milestones that came together to form what we now call blockchain.

The roots of the technology can be traced back to the works of American computer scientist and mathematician Ralph Merkle. In his 1979 thesis, Merkle introduces the concepts of public-key cryptosystems and cryptographic hashing, which later became crucial components of blockchain technology.

eCash, the digital cash system invented by electronic currency pioneer David Chaum in 1990, represents another stepping stone in blockchain’s development, being regarded as the first attempt at creating a functional form of digital money. Earlier, Chaum had published a dissertation titled “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups,” which is now considered the first proposal for a blockchain protocol.

In 1991, Stuart Haber and W. Scott Stornetta developed a method for timestamping digital documents, while Stefan Konst’s explorations of cryptographically secured chains laid the groundwork for the current blockchain systems.

Hal Finney’s contribution is not to be forgotten as the introduction of reusable Proof of Work (PoW) mechanisms was definitory for the emergence of decentralized networks.

Blockchain as we know it today

All the research and work conducted over the years by scientists in the field of encryption and cryptography culminated in the conceptualization of Bitcoin in 2008. That’s when Satoshi Nakamoto, whose true identity remains unknown, released the Bitcoin whitepaper, detailing the concept of digital currencies and the blockchain architecture that enables them. That’s how the world became acquainted with blockchain technology as we understand it today.

Since it took a while for people to warm up to crypto, acknowledgement and acceptance came slowly for blockchain as well. But in the 16 years since Bitcoin entered the financial landscape, blockchain technology has had time to evolve and expand beyond crypto. The fundamentals have stayed the same: blockchains, regardless of the name they bear, represent distributed digital ledgers able to safely record and track transactions across a network of nodes, through mechanisms based on cryptographic encryption.

However, nowadays, blockchain technology is much more than its constituent parts and the procedures it encompasses, having matured and grown into something much bigger than a crypto-enabling technology.

Since blockchain technology has long ceased to be limited to crypto, we need to explore the fields and areas of activity where it has expanded its applications to see where its power truly lies.

Trustless digital systems – Before blockchain, traditional systems involved intermediaries such as banks, auditors, or brokers who were in charge of facilitating transactions and maintaining trust between different parties. This posed potential risks related to centralization of power and control, corruption, and the manipulation of data, reduced transparency, or potential system failures. None of these perils exist in a blockchain-based system since these ensure a trustless environment where interested parties interact directly with each other, without mediators and all the pitfalls they bring along.

Supply chain management – The complexity of modern supply chains with the myriads of moving parts they comprise makes tracking resources and managing them a significant challenge. Blockchain powered solutions can be a lifesaver in this respect as they can bring enhanced transparency, traceability, and security to supply chain management.

Healthcare – Proper data management plays a crucial role in the smooth running of healthcare operations, from diagnosis and treatments to research and development, and maintaining accurate patient records. Blockchain’s secure storage capabilities can help address many of the data-related issues in healthcare, ensuring rapid access to crucial data while also keeping sensitive information safe from unauthorized access.

Financial inclusion – Powered by blockchain technology, decentralized finance (DeFi) has the potential to create an alternative financial ecosystem focused on accessibility and inclusion. This could change the lives of the 1 billion people still unable to benefit from conventional financial services.

Sustainability and environmental protection – The transparency and that blockchain brings to the table can also be of use in the fight against climate change and the push for more sustainable practices across all industries. Companies in the renewable energy sector in particular can benefit from blockchain integration as it allows them to keep track of their activities in real time.

Final thoughts

The evolution of blockchain from a technology that was mainly associated with crypto to the current powerhouse proves once again that it takes time for an innovation to settle and unravel its full potential. The true value and impact of an invention doesn’t become immediately apparent, but emerges over time as it’s tested, adapted and integrated into various contexts. Blockchain technology may have been confined to the crypto space in the beginning, but it’s now well on its way to quietly transform and improve many key areas of our lives.