While cryptocurrency has only recently become a popular term in finance, it has been around for a long time. Before names like Bitcoin, Ethereum, and Litecoin even existed, there were attempts to create a decentralized currency.
David Chaum, a respected cryptographer, launched ECash, an anonymous system in the 1990s but it failed. Chaum built the system on currently existing government financial principles and infrastructure like credit cards.
RPOW, BitGold, B-Money were also created but failed. Cryptographers could not get past specific challenges that they faced at the time.
The first challenge was how to achieve true decentralization and the second was the issue of double spending. The prevention of double spending meant the use of a third-party clearing house.
This wasn’t acceptable because to achieve the type of innovative digital finance they wanted, the system had to be independent of any institution. In 2008, cryptographers finally stumbled on the information they had been searching for when an anonymous contender released the blueprint for a digital currency known as Bitcoin. Read more from dailyhodl.com…
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