A cryptocurrency is a type of digital or virtual currency that uses cryptography for security and uses a computer network to act as a medium of exchange independent of a bank or governmental authority. Cryptocurrency (crypto) uses advanced cryptographic techniques and a blockchain technology to secure transactions, control the creation of additional units, and verify the transfer of assets. Counterfeiting and double-spending (the use of the same cryptocurrency coin or token toward more than one transaction) are almost impossible due to cryptographic security and blockchain technology.
A Brief History of Cryptocurrency
The Early Experiments (1980s–2008)
Although the concept of a digital currency had existed since the 1980s with ideas like DigiCash and B-Money, these projects were only successful in developing their own systems but did not gain popularity across a wider population due to several reasons, including technical issues and a lack of regulatory framework.
The Creation of Bitcoin (2009)
The beginning of what we now know to be the cryptocurrency movement began in 2009 with the development of bitcoin by a person or group of people known as Satoshi Nakamoto. The key difference between bitcoin and all other previous digital currencies was that Nakamoto introduced a decentralized ledger system (the blockchain) that could record every transaction publicly and without authorization to all parties. As such, the issue of centralized control and the costs associated with it were eliminated with bitcoin. Bitcoin introduced the idea of limited supply (21 million max coins) and created digital scarcity for the first time.
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