History of Cryptocurrency
Digital currency was introduced in the early 1980’s by computer scientist David Chaum. In 1995, Chaum introduced eCash; the first digital currency which utilized blind signatures and managed to partner with a Missouri bank. After three years and 5,000 customers, eCash was dissolved. In 1998, an unimplemented cryptocurrency named bit gold was theorized, lying the groundwork for future cryptocurrencies.
Bitcoin was the first modern cryptocurrency. It was introduced in 2009 by an unknown person or persons under the pseudonym Satoshi Nakamoto. Nakamoto authored The White Paper; a nine page document detailing the functions of Bitcoin. The White Paper is still the basis for the operation of most cryptocurrencies. In 2010, Nakamoto stepped away from Bitcoin, and Nakamoto’s true identity remains unknown.
What is the Blockchain?
Blockchain is a digital ledger that records the transaction history of a cryptocurrency. The blockchain records when the cryptocurrency was made, the information of each sale, and the purchase of each unit.
The blockchain itself is a growing list of records, called blocks, which are linked and secured with encryption codes. Each block contains an encoded signature from every block that came before it. New blocks are constantly created and added to the blockchain. A block can be made every few minutes to every few seconds (depending on the type of cryptocurrency). Blockchain technology is very secure because it cannot be modified without the encoded signature from every previous block.
The blockchain is decentralized, meaning there is no one space on the internet where all cryptocurrency is stored. The blockchain allows for peer-to-peer transactions meaning that cryptocurrencies can be sold directly from one person to another much like wiring money only without a bank.
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