fbpx

Who was the first to describe crypto currency

History of cryptocurrency

How and why did the crypto currency appear? Who invented it, and and in what way does it differ from the usual money?

Before the appearance of money people had a natural exchange, which was inconvenient. It was much easier and more understandable to use the equivalent. So, precious metals (gold, in particular) have been used for a long time.

The first money was tied to the value of gold, but people were still reluctant to take paper money in return for an understandable metal. Then they got used to it. Now the majority of the population does not trust crypto currencies, because they are not secured by anything. But for the same dollar, it also does not cost anything.

There is a version that bitcoin was created as an alternative to the US currency, which is constantly depreciating and, as some experts think, is about to burst like a soap bubble.

Atpresent, the dollar is secured only by the debt obligations of the 12 largest private commercial banks that have the status of a federal agency (FRS). This happened on the permission of President Richard Nixon in 1971. Over the next 42 years, the dollar has constantly depreciated, and its value in comparison with the Troy ounce of gold fell 43 times: from $ 58.42 to $ 1220. Inflation of the world’s most popular currency pulls down the money of 44 countries, tied to it since 1944.

The euro, which appeared as non-cash funds in 1999 and in the form of bank notes in 2002, did not become an instrument which to could help to hide from financial turmoil. At first it grew up, but political events make its course fluctuate. The real problem to the single European currency was the English Brexit. It is predicted that after the withdrawal from the UK, Britain will be followed by other countries, which will either knock down or completely kill the euro.

A deflationary currency was required, not tied to the banking policy of depreciating money.

The security concept was proposed in 1983 by David Chaum, an employee of the Computer Science Department of the University of California at Santa Barbara. He put forward the idea of ​​combining anonymity and transparency of payments for all market participants. For that, the scientist suggested using the “blind signature” algorithm. The bottom line is that outside observers are aware of the fact of the transaction, but its details remained only to the direct participants.

The idea of ​​Chaum was developed by his Israeli colleagues. Together they developed protocols for “electronic cash”. The idea of it is that the transaction was confirmed by a third party, the seller confirmed the authenticity of the payment, and the buyer provided proof of sending virtual money.

Long before the appearance of Satoshi Nakamoto, the politico-technological movement of the cypherpunks originated from the mailing lists appeared in the 90th. In 1993, mathematician Eric Hughes published his “Cryptopank Manifesto”. A year later, the writer Timothy May wrote “Questions and answers about cypherpunk.”

The mechanism of creating crypto currency was invented in 1997 by an Adam Beck from England. His idea was to use the Hashcash anti-spam system. The sender, according to his idea, performs many long-term operations, and the recipient quickly checks their authenticity.

In1998, engineer Wei Dai was first to describe the crypto currency called “b-money”. To control the emissions and transactions of this new form of money, he proposed to use cryptography instead of a central control body. “I am delighted with the concept of cryptoanarchy of Timothy May … Cryptoanarchists want not to temporarily abolish governments, but completely abolish them for complete uselessness,” Dai wrote at the time.

In 2005, scientist Nick Szabo offered the BitGold crypto currency, a purely digital payment tool based on the “work proof” algorithm with the borrowing of the RPOW-server idea (“proof of cyclic application”) by Hal Finney.

Later, as we know, the ideas of the predecessors were realized by Satoshi Nakamoto, the creator (or the group of creators) of bitcoin, a virtual currency with open source and anonymous transactions. The method of carrying out operations on the blockade system was borrowed from Chaum and Beck.

Now there are a lot of new crypto-currencies — altcoyins. The vital task of programmers for the further development of virtual money is to accelerate the transfer of data with increasing code while preserving security, openness and anonymity of the process.

One comment on “Who was the first to describe crypto currency”

  1. Николя
    Николя:

    В Україні треба реалізовувати найшвидше ці ваші криптоактиви, особливо на фоні інфляції гривні.

Leave a Reply

Подпишитесь, чтобы получать новости, анонсы и акции Blockchain Forum

Спасибо, я уже подписан