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The history of fireworks goes back thousands of years to China during the Han dynasty (~200 B.C.), even long before gunpowder was invented. It is believed that the first "firecrackers" were likely chunks of green bamboo, which someone may have thrown onto a fire when dry fuel ran short.
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Gunpowder was first discovered sometime during the Sui and Tang dynasties (~600-900 A.D.) in China. It was most likely discovered accidentally by alchemists. Over time, chemists discovered that the key to the vigorous burning of gunpowder was the fact that saltpeter was rich in oxygen, which it released as it burned. They soon figured out how adding more saltpeter to the mixture made it burn faster,therefore it made more powerful explosive and louder when used in firecrackers.
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By the 10th century, the Chinese began using them for military purposes. The Chinese used their gunpowder to create a variety of explosives, including crude bombs and "fire arrows" - bamboo firecrackers attached to regular arrows and shot at the enemy. Eventually, however, the aim shifted from scaring the enemy to actually inflicting harm.
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The Italians had been fascinated with fireworks ever since the explorer Marco Polo brought back firecrackers from the Orient in 1292. During the Renaissance in Europe (1400-1500), the Italians began to develop fireworks into a true art form. Since this was a period of artistic creativity and expression, many new fireworks were created for the first time.
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Settlers brought fireworks over to the Americas around the 1600s, where they continued to be used to celebrate special occasions and to impress or scare off Native Americans. Now, fireworks are used to celebrate lots of different things such as the end of festivals and carnivals, Australia Day, New Years Eve and weddings.