Today I’m proudly present you How Cryptocurrencies Were Created? The beginning of the history of cryptocurrencies dates back to 1976. Two cryptographers, Whitfield Diffie, and Martin Hellman published the idea and code of public key cryptography, also known as asymmetric cryptography. Without this discovery, there would be no cryptocurrencies. In the ‘1990s, the Internet became an increasingly popular tool for exchanging information. We moved there not only our conversations, but also our wallets, and traditional transfers were replaced by electronic financial transactions.
After the delight of modern solutions, a concern about the security of the data being transferred began and a strong need to guarantee privacy in the network arose. Cypherpunks was the first group that tried to face this challenge. That team began working on a monetary system that would be digital, decentralized and immune to influences of governments and institutions. A system in which units would be impossible to copy, reprint or exclude, and at the same time, to which everyone in the world would have equal and unfettered access.
Before the group of people or the person known by the pseudonym: “Satoshi Nakamoto” created Bitcoin, several similar currencies were created. They became its precursors.
In 1990, David Chaum created Digicash. What’s more, by definition, the currency was to become its own bank and control its funds without supervision from third parties.
In 1998, Chinese engineer Wei Dai created B-Money. A year later, Nick Szabo created BitGold. In this example, we find similarities to the contemporary BlockChain, a publicly available database used to record individual transactions. It was not until 2008 that Satoshi Nakamoto, drawing from the work of his predecessors, published a technical description of bitcoin, the most popular cryptocurrency today. Bitcoin took off on January 3, 2009.
Publication of its source code meant that a few years later hundreds, and then thousands of subsequent cryptocurrencies began to emerge, competing with each other and trying to solve problems that bitcoin was unable to.
I suggest you learn about Blockchain
To be Continued…