Catarina Ferreira (Master’s student in European Union Law at the School of Law of the University of Minho)
1. The blockchain technology
Blockchain is commonly known as the underlying technology used in Bitcoin. This “new” and revolutionary technology, whose roots are ancient, has been introduced (as we know it) in 2008 when Satoshi Nakamoto released the Bitcoins’ white paper. In the white paper, Nakamoto presented a decentralized payment model based on cryptography and using blockchain technology. This idea would allow a move forward from the traditional model, based on trust and relying on an impartial third, and achieving currency decentralization (being possible to perform direct transactions between two parts).
It cannot be denied that blockchain is a new paradigm, a new information technology with tiered technical levels and multiple applications for any form of asset, going beyond the financial sector. Nowadays, blockchain’s impacts are being compared to the ones that followed the development of the Internet. So, understanding what is blockchain and the ideology behind it, is a requirement for those who want to apply the law without damaging the technology.
Before clarifying what blockchain is, it should be noticed that since Bitcoin’s blockchain many others have arisen. Nonetheless, there are commonalities between all blockchains, and in this work, we’ll be discussing all those commonalities and not a specific blockchain.
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