History of cryptocurrency

The emergence of cryptocurrency is already taking over our day-to-day operations. Cryptocurrency is a digital asset that exists in the crypto world, and many call it “digital gold.” But what exactly is a cryptocurrency? You are interested.

It is a digital asset intended to be used as a medium of exchange. Obviously, this is a close substitute for money. However, it uses powerful cryptography to secure financial transactions, check asset transfers, and control the creation of additional units. All cryptocurrencies are either virtual currency, digital currency or alternative currency. It should be noted that all cryptocurrencies use a decentralized control system, unlike the centralized systems of banks and other financial institutions. These decentralized systems operate through distributed book technology that serves a public financial database. Blockchain is usually used.

What is a blockchain?

This is a constantly growing list of related and protected records using cryptography. This list is called blocks. A blockchain is an open, distributed book that can be used to check and permanently record transactions between two parties. To ensure that the block is used as a distributed book, it is managed by a peer-to-peer network that collectively follows the protocol for the approval of new blocks. Once the information is recorded in any book, all other blocks cannot be changed without replacement. Therefore, blockchains are safe in terms of design and at the same time serve as an example of a distributed computing system.

History of cryptography

American cryptographer David Chaum has discovered an anonymous cryptographic electronic money called cash. That was in 1983. In 1995, David did this through Digicash. Digicash was an early form of cryptographic electronic payment that required user software to extract notes from a bank. It also allows special encrypted keys to be assigned before being sent to the recipient. This property allowed the digital currency not to be tracked by the government, the issuing bank or any third party.

Bitcoin was created in 2009 after increasing efforts in the following years. It was the first decentralized cryptocurrency and was created by pseudonymous designer Satoshi Nakamoto. Bitcoin used SHA-256 as a cryptographic hash function (business proof scheme). Following the issuance of Bitcoin, the following cryptocurrencies were also issued.

1. Namecoin (April 2011)

2. Litecoin (October 2011)

3. Peercoin

It is called three coins and many others altcoins. The term is used to refer to alternatives to bitcoin or simply other cryptocurrencies.

It is also important to note that cryptocurrencies are exchanged over the Internet. This means that their use is primarily outside the banking system and other government agencies. Cryptocurrency exchanges include the exchange of cryptocurrency for other assets or other digital currencies. An ordinary fiat is an example of an asset that can be traded with a cryptocurrency.

Atomic Swaps

These are the proposed mechanisms by which one cryptocurrency can be exchanged directly from another cryptocurrency. This means that there will be no need for third party involvement in the exchange of nuclear swaps.