People are constantly looking for ways to multiply any beneficial action. Regardless, it took them a long time to realize how outdated the traditional fiat currency system is. With the development of information technology, people have learned to perform calculations on an incredible scale. Already in the early 90s of the 20th century, cypherpunks began to actively discuss various options for introducing cryptography into the financial sphere. Read this article if you wish to know, how the history of cryptocurrency developed. If you need professional advice on your fintech development case, I would recommend free consultation from blockchain expert developers.
First Ideas of Electronic Money
So, Timothy May of Intel Corporation proposed to get rid of traditional money in favour of anonymous and independent currencies. By this time, Whitfield Diffie and Philip Zimmermann had already developed public-key encryption. In 1998, Wei Dai developed the concept of electronic B-money. In his opinion, such a financial system is able to exempt people from taxes and exclude the influence of a government. This project never became a reality.
Then the programmer Nick Szabo developed a currency that requires some work to be done. For example, solve cryptographic equations and send the result to the same computer participants in the network. This traces the features of the concept of bitcoin, but the project is not devoid of many cons, such as vulnerability to double spending and the full lack of anonymity.
Satoshi Nakamoto Move
In 2008, the mysterious Satoshi Nakamoto introduced to the world the technology of decentralized blockchain networks, which combines anonymity, security and independence as well. After that, he showed a project of a virtual currency that can exist on the basis of this technology. This innovation marked the final frontier in the development of cryptographic payment system concepts, as well as the beginning of a new age of financial security and independence.
First Crypto Trades
Satoshi Nakamoto was ahead of his time. Ordinary people had little idea about what it is and why it is needed. This was interesting only for IT geeks who, after a series of security protocol updates, decided that the project was ready for release to the world of common people. Less than a year later, they established the initial value of the coin. The first trading took place on the New Liberty Standard exchange, where just over 1,300 bitcoins could be bought for just $1.
2 Pizzas For $630 Million
In mid-2010, there was a case that never ceases to amaze, when the coder Laszlo decided to pay with bitcoin for pizza. It cost him about $ 25, which at that time was the equivalent of 10,000 bitcoins, whereas in the spring of 2021 it was already more than $600 million.
Value and Capitalization Growth, the First Big Thefts of Bitcoin
The beginning of 2011 was marked by a lot of positive news, causing a confident rise in the asset price. Also, the capitalization exceeded $10 million dollars and hackers became interested in the bitcoin. The more frequent cases of theft of coins from users’ wallets due to the large number of errors found in the bitcoin code did not allow the price of an asset to grow noticeably. But by mid-autumn, its value went up against the background of significant events in the cryptocurrency world.
After the news on Slashdot told about Bitcoin, Its price skyrocketed several times, but its capitalization was still quite small. There is news about the first trading with deposition on the Mt.Gox exchange. In the summer of 2010, a completely new platform for trading crypto-assets Mt.Gox was opened. This was a turning point and served as a starting point for the further rapid development of the cryptocurrency market.
Use the Opportunities Provided by DLT
At the time of the cryptocurrency fever, the idea of finance and the possibilities of distributed ledger technology has changed. Previously, thousands of people knew about cryptocurrency. Millions of people know about it today. Coins have become giant assets, and the demand for them is such that the market is ready to swallow and digest almost any supply.
The most common crypto is Bitcoin, but the altcoin market is also expanding daily. Today, anyone can not only mine cryptocurrency but also create their own. Many new projects combine different technologies, protocols, and blockchains in one system.
But crypto is only one of the many uses for distributed ledger technology and one of its varieties is blockchain. Take advantage of the great opportunities these technologies can bring to your business. Invite the team of professional developers to complete any task related to the DLT application – from developing a new cryptocurrency to cross-currency systems – and became the market leader.