Cryptocurrencies

What is the History of Bitcoin, Blockchain, and Cryptocurrencies?

The history of Bitcoin can be traced back to the turmoil of the 2008 Great Recession as distrust of banks and their role in the financial system grew. An individual or a group of people going by the name Satoshi Nakamoto issued a white paper to address the centralized control of money and the trust required in handling citizens’ cash.

Cryptocurrencies such as blockchain technology have been around longer than you may have imagined, but they didn’t catch much attention until 2009. The concept emerged in 1983 when American cryptographer David Chaum outlined the earliest form of anonymous cryptographic currency in his published conference paper. You can get more details of the pros and cons of Bitcoin investment and What is the History of Bitcoin, Blockchain, and Cryptocurrencies here.

The idea was for a currency that would be untraceable and sent without passing through any centralized entities, i.e., banks. Chaum later established Digicash, which developed the first cryptocurrency: eCash.
eCash: the first cryptocurrency

The idea of the first-ever cryptocurrency was that it could be transferred privately without the interventions of any middle party, i.e., a bank. The safety factor of this private transfer is very similar to the modern-day cryptocurrency.

The information contained by eCash was encrypted between the two individuals through Chaum’s “binding formula.” The blinded or digital cash bore a signature of authenticity and could be transferred without traceability.
eCash was Chaum’s first ever form of cryptographic electronic money. Despite DigiCash going bankrupt in 1008, the formulas used by the company were used to develop more digital currencies in the later years.

The beginning of bitcoin

E-Gold, Bit Gold, BMoney, and Hashcash are a few notable mentions in the journey of formation of bitcoin. However, Bit Gold, designed in 1998, is deemed to be the direct precursor of Bitcoin. Nick Szabo’s design of Bit Gold, combined with Chaum’s work, turned into something very similar to the present-day Bitcoin.
Despite launching so many new cryptocurrencies, the problem of double-spending without the presence of a central authority remained. It wasn’t until a mysterious group published a white paper named “Bitcoin– A Peer to

Peer Electronic Cash System.”

In the Bitcoin white paper, the working of the Bitcoin blockchain network was explained. When they bought Bitcoin.org on August 18, 2008, the publishers did business on the Bitcoin project.
Even though it’s not the focus of this article, it’s important to note that Bitcoin and all other cryptocurrencies wouldn’t exist without blockchain technology, which at its most basic level means making data structures that can’t be changed.

The fluctuations

Bitcoin went up to $1.06 in February 2011 before returning to about 87 cents. In the spring, the price went up partly because Forbes wrote about the new “cryptocurrency.” From the beginning of April to the end of May, bitcoin went from worth 86 cents to worth $8.89.

After Gawker wrote a story about the currency’s popularity among people who sell drugs online on June 1, the price of Bitcoin went up by more than three times in a week, to about $27. The value of all bitcoins on the market was close to $130 million. But by September 2011, the price was back to about $4.77.

In 2012, the price of Bitcoin went up steadily, and in September of that year, the Bitcoin Foundation was set up to help Bitcoin grow and become more popular. Ripple was also started that year. At the time, it was called

OpenCoin, and the project started getting funding the following year.

In 2013, the price of bitcoin kept increasing because of problems at the federal, criminal, regulatory, and software levels. On November 19, its price went as high as $755, but the next day it fell to $378. By November 30, it had gone back up to $1,163. This, however, was the start of another long-term crash, and by January 2015, Bitcoin was back down to $152.

Bitcoin: A Worldwide Phenomenon

Bitcoin prices went from $434 in January 2016 to $998 in January 2017 in a steady climb. In July 2017, a new version of Bitcoin’s software was approved. The goal was to support the development of the Lightning Network, a layer-two scaling solution, and to make Bitcoin safer.

Unlike Bitcoin, Ethereum: A new member that lets other platforms launch and run on its chain. Each forum can have its cryptocurrency and use cases. This was a model that many new blockchains, like Cardano, Tezos, and Neo, which came out around this time, copied.

Bitcoin, with the fastest growth, has taken the world by storm. The bitcoin trading software is a well-known name among these kinds of software. It is notable for automatically swapping cryptocurrencies with other traders, which helps them take advantage of currency value changes. Investors can also easily keep track of current prices and trade currencies whenever they want to.

Conclusion

Even though the volatility of cryptocurrencies can be both appealing and dangerous, the technology behind them, blockchain, has the potential to change many parts of our society. Blockchain technology could be used in almost every aspect of the economy, making it easier and cheaper to exchange money, keeping your money safe so that only you can get to it, or getting an accurate quote for your insurance.

Julia

Julia A. Robert is an associate admin in Efogator Media Networks; she is the chief editor, website designer & customizer; a prolific content re-writer, she is in charge of all our guest posts.

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