The history of the emergence of cryptocurrencies

We can say that cryptocurrencies and near pay card began with bitcoin. It was in the article about him that the term “cryptographic currency” was first used.

At the same time, cryptography itself was invented long before the appearance of these digital assets. Strictly speaking, this science is about four thousand years old. Cryptography in the modern sense was born in the late 1970s.

In 1983, American scientist David Chaum came up with an anonymous cryptographic electronic money, which he called ecash. In 1989, he created the Digicash payment system. In 1995, he managed to create the first electronic currency – the same ecash.

The transactions were anonymous thanks to the cryptographic protocols that Chaum invented for his company. Together with them, he created the first elements of the blockchain, which were later described in detail in the technical documentation of bitcoin.

Unfortunately, in 1998 Chaum’s company went bankrupt and he sold it. According to the founder, at that time, e-commerce was not fully integrated into the Internet. The company was essentially ahead of its time.

Another important person in the history of cryptocurrencies is computer engineer Wei Dai. In 1998, he published an article in which he described b-money (“money that cannot be regulated”) and the Proof-of-Work algorithm. His findings were used, among other things, to create bitcoin and other cryptocurrencies. By the way, the smallest subunit of ether, wei, is named after Dai.

The first decentralized cryptocurrency appeared in 2009 – this is Bitcoin. It was created by a person or group of people under the pseudonym Satoshi Nakamoto.