- Cryptocurrency is used to establish an electronic payment system based on cryptographic principles in an encrypted form.
- From 1983 to 1995, American cryptographer and inventor David Chaum introduced the concept of cryptographic digital currencies,
which are named Ecash and Digicash.
The history of cryptocurrencies started in the 1980s, when a decentralized payment system started, which is not controlled by any central authority. Many inventors were involved and introduced a modified form of cryptocurrency, and this evolution has seen technological innovations, regulatory challenges, market fluctuations, etc.
Why Cryptocurrency?
- The inventors strongly believe that cryptocurrencies have existed for over a decade and will have significant growth in the future, proven by their leading role in technological advancement.
- Crypto has several purposes that can help an individual earn money and access specific utilities.
Evolution of Cryptocurrency
- Before 1980s: During this period, numerous inventors, cryptographers, and researchers like David Chaum explored
the concept of decentralized digital currencies.
- 1983-1995: During this period, an American cryptographer and researcher David Chaum introduced a type of cryptographic electronic money known as “ecash”.
Later in 1995, it was implemented by him through Digicash.
- 1996: In 1996, the National Security Agency published a paper named “How to Make a Mint: The Cryptography of Anonymous Electronic Cash”, which described the system of cryptocurrency.
- 1998: In 1998, Wei Dai, a computer engineer described “b-money”. Soon after Nick Szabo a computer scientist and a cryptographer described “bit gold.” They all are the same as other cryptocurrencies.
- 2009: In January 2009, a pseudonymous (a fictitious name) developer Satoshi Nakamoto created “Bitcoin”. It refers to the concept of decentralized, peer-to-peer digital currency.
- 2011-2012: In April 2011, Namecoin was created, later in October 2011, Litecoin was released, and after that in August 2012, Peercoin was created. These all are used as a cryptographic function for proof-of-work.
- 2014-2018: On August 6, 2014, the UK government decided to discuss with the experts for a study on cryptocurrencies. They wanted to know that cryptocurrencies are useful for the UK’s economy. The result of that study was published in 2018.
Majesty’s Treasury
- 2021-2022: In June 2021, El-Salvador, became the first country, which accepts Bitcoin as a legal tender (is a form of money).
- In August 2021, Cuba decided to officially accept the cryptocurrency like Bitcoin.
- In September 2021, the government of China declared that all cryptocurrency transactions are illegal. This made a significant impact on the breakdown of cryptocurrency.
- On 15 September 2022, “Ethereum” the world’s second largest cryptocurrency was introduced in an upgraded version.
- On 11 November 2022, A company called FTX Trading Ltd. A trading business went out of business because it could not pay out its debts, which had wider effects on the financial world.
Cryptocurrencies has experienced a lot of difficulties which happened multiple times like in 2011, 2013, 2014, 2015, 2017, 2018, 2021-2023. This pattern of rapid growth and then a decrease in value is sometimes called a bubble, and it has happened a few times in the history of cryptocurrencies.