The origin of cryptocurrencies
Its origin is in the 80s when the movement Cypherpunk He was betting on the use of cryptography as a means for social and political change.
In 1990 : David Chaum developed a form of digtial money called Digicash. This was electronic money centralized that allowed to carry out anonymous and secure transactions. But seven years later, Adam Back devised Hashcash based on proof of work to reduce spam and DDoS attacks. This software was the one who laid the foundations for the security and mining protocols of the cryptocurrencies of the future. Later, Wei dai would design b-money. This was a virtual currency that used a very advanced crypto mining scheme. Although this project was never completed, b-money is considered by many to be the world's first cryptocurrency.
But it was in 2008 when Satoshi Nakamoto, from whom the real identity is unknown, public the bitcoin whitepaper. This was the birth of the first fully decentralized currency, the Bitcoin. To achieve this, Nakamoto relied on blockchain technology through proof of work devised by Adam Back, using Hashcash. Thus, Satoshi proposed to use the SHA-256 algorithm, as a function hash of cryptography and a system of Proof-of-Work (PoW). Furthermore, Bitcoin was limited to an issue of just 21 million coins.
Since then, technology has caught and captured the attention of the entire world. Currently there are thousands of different cryptocurrencies, each one created in order to improve technology. However, there are few cases that have achieved this objective and reached a high audience and users. We talk about cases like Ethereum, Bitcoin Cash, Dash, EOS, Monero, Grin o ZCash. Each of these cryptocurrencies have very particular characteristics with which they seek to improve their presence throughout the world. A healthy competition that seeks to provide the best that this technology can offer in all corners of the world.
What makes them an invention without equal?
Since the invention of this type of digital money, many specialists have talked about them and their unique characteristics. One of these specialists is Jan Lansky. Lansky did a work entitled Possible State Approaches to Cryptocurrencies“, Presented in 2018 in which it describes these digital currencies in the following way:
- The system does not need a central authority. Thus, its status is maintained through a distributed consensus.
- The system maintains all units and their owner.
- The system defines whether new units can be created. In this case, the system must define the circumstances of its origin and how to determine the owner of the new units.
- You can only secure ownership of a unit to a user cryptographically.
- The system allows unit transactions, in which the owner of said units is changed. A transaction can only be made if the current owner of these units can be proven.
- If two transactions are made on the same units, the system only executes one of them.
In this series of characteristics, the nature of cryptocurrencies and those that make them what they are are enclosed. In other words, any digital currency system that meets these requirements can be considered a cryptocurrency in its entirety.
The future of cryptocurrencies
The future of cryptos is bright. Since its creation in 2008, they have gone from being a simple curiosity to being a very important global economic force. One driven by creativity and the birth of new projects and technologies thanks to the Initial Coin Offering (ICO). But not only that, they have shown that another form of economic control is possible. One where the economy does not respond to the interests and manipulations of power groups, but is completely free and decentralized. A form of economy where scourges like uncontrolled inflation have no place.
But in addition, they have also opened the doors to an economy that reaches everyone in the world. It is no longer necessary for a person to have a bank account to send or receive money. A simple cryptocurrency wallet It is enough and surplus for such a task and to manage any digital asset of this nature. This opens the doors to a true global financial revolution, of which we are only just beginning to witness. Imagine that in the future you decide to buy a car or a house. It would only be enough to access one DAPP, request a loan by guaranteeing your coins and almost instantly your loan is approved. No need for paperwork, going to a bank and huge waiting times. This is just a sample of the immense power of cryptocurrencies, the blockchain and what we can expect in the future.
But the revolution does not stop there, in fact, it is possible to imagine an even more revolutionary world. One where everything connected to the Internet can interact with others safely. One where no matter what country you live in, you can access products and services anywhere in the world and pay without complications. This is the power of cryptocurrencies. A power that tells us that their future is assured and that we are just beginning to build it. Despite this, the world of cryptocurrencies mobilizes millions of dollars daily throughout the world and continues to strengthen. This gives us an idea of the current relevance of the cryptocurrency market.