Blockchain Origins: from Bitcoin’s genesis to ARXUM
Just like the World Wide Web was the continuation of internet technology, Blockchain now is the new evolution of the same technology. While it’s becoming more popular since its conceptualization in 2008, the Blockchain story started in the 1990s. Blockchain’s narrative is strong. It tells us why it is the right time for this technology to become part of our lives, and part of the manufacturing ecosystem.
WORLD WIDE WEB
In 1991, the first chain of blocks secured by a modern cryptographic algorithm was designed. It was made in order to avoid that timestamps of documents were tampered with or backdated. Then, at the advent of email spamming in 1997, Hashcash used a proof-of-work algorithm (the same system Bitcoin uses), to verify the liability of emails. It also acted as a “cryptographic anti-spam plugin” for mailers.
These initial applications caused a reflection upon digital liability and trust. One year later, in 1998, the first crypto-currency system came with “b-money”.
Every participant of b-money had to maintain a (separate) database with data on how much money belonged to each participant. The people participating created money by broadcasting the solution to a computational problem, as a reward. Very similar to Bitcoin, but it didn’t come at the right time.
The first generation of Blockchain
The financial crisis of 2008 was the perfect time to provide a new system of money that wouldn’t have the shortcomings of regular currencies. Blockchain provided a solution for the need of digital trust, thanks to its transparent, time-stamped and decentralized distributed database stored in the public space. Bitcoin and the first generation of Blockchain were born.
The second generation of Blockchain
Blockchain is to Bitcoin what the Internet is to emailing. Cryptocurrency is one of many properties that Blockchain exhibits simultaneously. Thus, the creation of a second-generation programmable Blockchains started, allowing users to write more sophisticated functions. This brought the best of the Blockchain and users could make easier, safer, and more trustable applications.
In this context, ARXUM becomes relevant since the manufacturing industry’s problem is the high cost of order processing between assembling, manufacturing, transportation, prosumers, and inventors. This cost is industry-wide and makes customization prohibitively expensive.
Like Bitcoin and Blockchain provided a new system of money when the current one was problematic, ARXUM’s Production Protocol on the Blockchain provides a new way of manufacturing, and acts as a:
- Peer-to-Peer Network: connecting scattered businesses in the manufacturing industry.
- Transaction Platform: the ARXUM Connection Box is an IoT-device already up and running, allowing to perform transactions on the Blockchain. For example, direct transactions of customers to manufacturers for customized products.
- Distributed Accounting Ledger: tracking every transaction ever processed. For example, to protect product ownership.
- Decentralized Database: storing and securing important information in smart contracts, like Intellectual Properties (blueprints).
- Trusted Marketplace: ARXUM’s Production Network benefits from the Blockchain and smart contracts to make it a decentralized and secured marketplace.
Cryptocurrency: ARXUM’s AX token are used to run every smart contract. One benefit of using the AX token is the 25% discount on transaction fees.