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History of the digital currency .. Bitcoin is not the first

2018-12-11 10:19 am | Resource: Crypto Section | No Views : 147

History of the digital currency .. Bitcoin is not the first The creation of Bitcoin in 2009, the birth of the first digital currency, to achieve widespread adoption worldwide, however, the concept of secure digital currency has existed since the 1980s, and there have been several previous attempts that directly inspired the creation of Satoshi Nakamoto for Bitcoin.

DigiCash

In 1982, computer scientist David Chaum issued a paper entitled Blind Signatures for Untraceable Payments, which outlined an alternative to electronic transactions that reached retailers at the time. His paper was one of the first proposals for digital currency in history.
DigiCash
He continued working on his proposal and eventually launched a company called DigiCash in 1990 to market the ideas in his research. In 1994, the company launched its first e-cash deal online.
DigiCash transactions were unique at this time, because protocols such as blind signatures and public key encryption were used to enable identity concealment. As a result, third parties were prevented from accessing personal information through online transactions.
Despite the new technology, DigiCash was not profitable, and made a bankruptcy in November 1998, before selling it in 2002.
Chaum believes that DigiCash entered the market before the e-commerce was fully integrated with the Internet, which led to the problem of chicken and eggs. In an 1999 interview he said: "It was hard to get enough merchants to accept it, so you could get enough consumers to use it, or vice versa."

Bit Gold

Bit Gold was an attempt to create a decentralized digital currency proposed by computer scientist Nick Zabo, widely regarded as the inventor of smart contracts. Bit Gold was not actually implemented in practice but is a direct introduction to Bitcoin due to technical similarities.
Bit Gold
Zabo did not like the fact that traditional financial systems require a lot of confidence to conduct transactions, leading to issues such as fraud and theft. Bit Gold is designed to provide a more reliable model of transactions, based on the economic characteristics of gold while increasing security.
Bit Gold is similar to Bitcoin, because Bit Gold planned to implement a consensus-style consensus mechanism where computing power is used to solve encrypted puzzles. The solved puzzles are then sent to a peer-to-peer network that is fault tolerant to the Byzantine errors with each puzzle associated with the public key of the solution.
Encryption fragmentation is then used to link the solution of the last puzzle to the next puzzle. This method is designed to secure sets of transactions because network users will have to agree to previous puzzle solutions before they can solve new solutions.
The biggest difference between the Bit Gold proposal and Bitcoin is the fact that Bitcoin has successfully solved the double-spending problem. For example, the double spend is $ 10 from the BTC for lunch, and the same $ 10 from BTC for another treatment later in the day. This problem was a major obstacle to early projects because the digital currency is simply represented as data that can be copied.
Most forms of digital currency use central authority to track account balances to combat the problem of double spending, but Zabo wanted to simulate the characteristics of safety and confidence in gold, which do not rely on central authority.

Hashcash

Hashcash initially proposed in 1997, by British coding expert Adam Buck, "a mechanism to sabotage the systematic exploitation of unregulated Internet resources such as e-mail, and he elaborated the idea in a paper entitled Hashcash-A Counter-of-Counter Counter-Measure In 2002.
HashcashEssentially, the problem that Hashcash aimed to solve was the widespread distribution of spam. The back solution was to ask an e-mail sender to use a small amount of CPU power to solve a puzzle before sending e-mail.
For a regular email user, this little amount of CPU power is negligible, and in the worst case it may delay sending an email for a few seconds.
However, for spammers trying to send thousands of e-mails per minute, the combined CPU power required for each e-mail is large enough to make that behavior impossible. SPAMmers will have to pay the electricity costs associated with the required accounts if they continue to send spam.
Satoshi Nakamoto pointed to Hashcash in the Bitcoin worksheet, saying, "To implement a distributed peer-to-peer distribution server, we will need to use a system similar to Hashcash for Adam Buck."

B-money

B-money was a proposal for the system of "anonymous electronic cash and distributed" created by the computer engineer Wei Day in 1998. Dae wrote an article in 1998 and set his idea and sent it to the cypherpunks email list.
B-money
In his article, Dae proposed two protocols, the first of which was known to be impractical because it required "intensive use of an unambiguous and unambiguous broadcast channel" but would serve as a motive for Protocol II.
In Protocol I, it is proposed to provide evidence of the work function as a means of creating funds, proposed as a possible application of the Hashcash technology for the work manual discussed in the section above.
Also, the transactions will be broadcast to all participants in the network and everyone will track the amount of money per account. Dai then explained the possibility of concluding contracts with compensation in case of debt default, and the presence of a third party as an agreed arbitrator.
The second protocol was different from the first because only a subset of network participants (servers) is used to track the amount of money owned by each account.
Given that the servers must be trusted, Dai wrote that a mechanism is needed to keep them honest. His idea was to make each server deposit a certain amount of money into a special account for use in fines or possible rewards to prove misconduct.
The format of transactions that were broadcast on the network was the same as in Protocol I, with the additional expectation that the transaction participants would verify that the message was received and processed by a selected subset of the servers at random.
In the 2010 forum, Satoshi Nakamoto stated that Bitcoin, "is the proposed application of Boye's B-money, Cypherpunks in 1998 and the proposal by Nick Sabo Bitgold.

Cypherpunks and the philosophy of the stateless currency

Cypherpunks is a group of activists who advocate the use of K privacy enhancement techniques such as Cryptography for Social and Political Change K in 1992 founded by Eric Hughes, Timothy C. May, and John Gilmore, a small group of microscopes who meet personally in San Francisco, and adopted the name "Cypherpunks".
Cypherpunks
The Cypherpunks email list was created in the same year as an active forum for technical discussions on topics such as blindness, mathematics, computer science, politics, and philosophy.
Cypherpunks generally hold liberal political views and many believe in the idea of ​​anarchism maligned in Timothy C.'s book. May in "Anatomy of the Anarchist Anarchist" (1992).
The new technologies "will completely change the nature of government regulation, the ability to impose taxes and control economic interactions, and the ability to maintain the confidentiality of information, but will change the nature of trust and reputation."
The technology of this social and economic revolution has been theoretically present since the 1980s, but the next 10 years will bring enough additional speed to make ideas economically viable and can not be effectively stopped.
In 1993, Eric Hughes issued a statement on behalf of Cypherpunk, which defined the basic principles of Cypherpunk. Some of the most important phrases were:
"Privacy is essential for an open society in the electronic age."
"Privacy in an open society requires anonymous transaction systems." So far, cash has been the main platform. "
"Privacy in an open society also requires encryption - if I say something, I want it only by those who plan it."
"We can not expect governments, companies or other large organizations that do not give us privacy to benefit."
"Cypherpunks is dedicated to building anonymous systems, we defend our privacy with encryption, with anonymous mail routing systems, with digital signatures, and with electronic funds."
Cypherpunk is directly responsible for digital currency creation, blockchain technology, and Bitcoin. All four founders of the aforementioned Bitcoin precursors (Adam Buck, Nick Zabo, Wye Dae and David Schum) were from Cypherpunks who were the first to propose their ideas through the mailing list.
Satoshi Nakamoto mentioned a number of Cypherpunks in the Bitcoin worksheet, first announcing the creation of a white paper collection and creating the configuration through the mailing list. In addition, many early Cypherpunks became the core developers of Bitcoin.

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