Notes

History
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The modern concept of a blockchain can be traced to August 2007, when a white paper by a person or persons using the pseudonym Satoshi Nakamoto was published on the Cryptography mailing list. The paper, titled Bitcoin: A Peer-to-Peer Electronic Cash System, described a decentralized digital currency. The first transaction with bitcoins, known as the genesis transaction, was recorded in January of the following year. Nakamoto, who was not the first to conceive of a peer-to-peer electronic cash system, instead attributed the release of the paper to a group of people whom he knew only as "Satoshi Nakamoto". One such person, a young American programmer named Nick Szabo, actually wrote a paper in 1994 as a Ph.D. dissertation titled "Bit Gold: The First Practical Bitcoin". In April 2008, the domain name bitcoin.org was registered. Satoshi Nakamoto received, worth £22,410.69 in 2015, as a reward for proof-of-work.

Bitcoin's blockchain was forked in 2015 to create Ethereum, an attempt to create an alternative to the Bitcoin protocol. On 28 February 2017, an attack known as the "DAO hack" occurred in which Ethereum was briefly forked again into two separate chains. The larger fork is called Ethereum Classic (ETC), but the Ethereum blockchain continues to operate normally. As of January 2020, the value of the cryptocurrency has grown to over US dollars, making it the first cryptocurrency to have a market capitalization over US$100 billion.

Development

In October 2009, a new bitcoin transaction protocol was announced, called BIP 16. BIP 16 is also known as Replace-by-Fee (RBF). It allows users to specify an executable script (or code) in outputs called a "witness" script, which would be automatically included in new blocks and whose results would override the traditional script (P2PKH) in the block. This makes it possible to create transactions that are only valid under certain circumstances, such as in a dispute resolution system that would ensure a P2PKH-signed payment script could not be overridden. The system relies on 21,000 bitcoin mining nodes to prevent modification of transactions. Each transaction is accompanied by a P2SH script, which binds it to a P2PKH script that can only be redeemed at a particular depth within the block, making it mathematically impossible to change all but the latest version of the script. P2SH was first
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