From Blockchain to IOTA the big picture
The full article was originally published by Markus on Medium. Read the full article here.
We have received a message from many people to go back to the basics of the developments of Blockchain to IOTA,. The reason is that many people are beginners and also others lost in the current technical details. That’s why we just go a step back to the reasons for the developments. What developments are important to understand today’s situation. I would like to write some basics with this article as well as a brief overview of Blockchain, Bitcoin, ICO’s and BIG DATA. The developments of IOTA will be summarized and I will give a small outlook.
Blockchain: The detachment from a centrally controlled banking world
The first idea of a digital currency based on cryptography dates back to the end of the last millennium, namely the year 1998. At the time, Nick Szabo published his ideas for a purely digital currency and spoke of “bit gold” in this context. 10 years later, in 2008, the world economic crisis is in full force — the housing bubble in the United States has burst, other countries are following suit. On 15 September, the events reach their peak as the big US bank Lehman Brothers collapses. As a result, the financial crisis forces states to save the survival of banks such as UBS or Commerzbank with large sums of money.
The debt of many states rose to staggering heights. Companies such as General Motors filed for bankruptcy, the insurance company American International Group is being nationalized. In October of this year, the International Monetary Fund estimated the decline in the value of mortgages at a total of 580 billion US dollars. The conventional banking system seemed to have failed for the time being, and if you ask me, the flood of money that has been pumped into the markets since then is actually intensifying this. A new even bigger crisis of the traditional financial system seems inevitable. That was the time in 2008 when a new concept was introduced — a crypto currency. The foundation stone for Bitcoin was thus laid ten years ago. Someone under the name “Satoshi Nakamoto” published a paper describing the principles for autonomous digital money. It was a revolutionary idea: no central bank control, no national borders.
The solution of many problems! It may be speculated that the development of this blockchain was an out-of-control plan B of governments should the global banking system collapse completely. The banking system, however, has survived thanks to state aid.