Terry The birth of cryptocurrency is like a heart-pounding rugby offense, with “star players” such as Jom, David and Sabo rushing for each touchdown, but always falling short of the “touchdown”.
The invention of asymmetric cryptography and the development of peer-to-peer networking technology by Shawn Fanning and Shawn Parker, who founded Napster, made it possible for Bitcoin to emerge. These two technologies allowed for the creation of a distributed transaction book that was broadcast to the entire network in a call-to-question mechanism, with network nodes constantly checking incoming data to avoid tampering.
The final difficulty is the “double payment” problem. The “double payment” cloud has been hovering over the cryptocurrency since its inception. In fact, the solution is ready-made, is Adam Back (Adam Back) in 1997 invented the hash cash (Hash Cash) algorithm mechanism. But at first, it was designed to limit spam and denial-of-service attacks.
In 2004, Hal Finney took over the baton from Back and improved the Hash Cash algorithm to “Reusable Proofs of Work”. His research was based on the academic work of Dahlia Malkhi and Michael Reiter: Byzantine Quorum Systems.
All the technology was mature enough for Satoshi Nakamoto to complete a “touchdown” in 2008. He introduced RPOW (Reusable Proof of Work) to cryptocurrency, and like Bolt running into a rugby field, it took off with great force and Bitcoin was born. Satoshi Nakamoto explains how the RPOW mechanism can be used to solve the Byzantine General problem. RPOW eliminates the need for a central “timestamp” server, eliminating the problem of unlimited re-consumption of bitcoins by those with bad intentions by attacking the central server.
None of the three key technologies – asymmetric encryption, peer-to-peer technology, and hash cash – were invented by Satoshi Nakamoto, but he was the one who finally took the crown. This is not so much luck as it is the fact that Satoshi Nakamoto has all the right ingredients to invent Bitcoin: he is a “rugby player”, a “track and field ace”, and, most importantly, a master programmer who can put his ideas into action. Satoshi Nakamoto is like the Steve Jobs of the cryptocurrency world, who has been able to take the best of each field and use it to his advantage.
As David said afterwards, “To develop Bitcoin, you have to: 1) think very deeply about money; 2) understand cryptography; 3) think that a system like Bitcoin is theoretically possible; 4) have enough motivation to develop the idea into a real product; 5) have good programming skills to keep the product secure; and 6) have enough social skills to create a successful community around the product. product to create a successful community. There are very few people in the cryptography community who can meet the first three requirements.”
Satoshi Nakamoto’s first appearance was on November 1, 2008. On that day, a new post appeared in the secret discussion group “Cryptography Mail Group”: “I am developing a new electronic money system that is completely peer-to-peer and does not require the intervention of trusted third parties.” The post is signed by Satoshi Nakamoto.
Such an electronic money system has been the dream of cryptopunks for decades, and many have tried and failed. The most positive reaction at the time was skepticism, as cryptographers had seen too many grand plans from low-level novices, and their instinctive reaction was skepticism. Many people said that such a system was impossible to implement, and that even a cryptographic genius like David Cholm had failed, let alone a nobody.
Satoshi Nakamoto chose the time of the 2008 global financial crisis to unveil Bitcoin to the world, describing his innovation by saying, “The fundamental problem with traditional money is trust. A central bank has to be trusted not to devalue a currency, but historically that trustworthiness has never existed. Banks must be trusted to manage money well and keep that wealth circulating in electronic form, but instead they use money to create credit bubbles that shrink private wealth.”
In contrast to the cryptopunk article, the language of the Bitcoin Genesis paper is remarkably calm and depoliticized, with no words of government or sovereignty appearing in the text, and only describing Bitcoin as a payment system distinct from traditional finance.
Two months later, on January 3, 2009, Satoshi Nakamoto announced the birth of Bitcoin by releasing the first version of the open source Bitcoin client. He also “mined” 50 bitcoins, and the block that produced the first bitcoins was called the “Genesis block”.
During the global financial crisis, Satoshi Nakamoto focused his suspicion and anger on the banking institutions, but as with his trolling of the U.S. government with birthday codes, he humored British Chancellor of the Exchequer Darling without a word of warning, writing in the Genesis block, “That was when the Chancellor of the Exchequer stepped in for the second time to defuse the banking crisis.” The Chancellor of the Exchequer’s dilemma was thus permanently recorded on the blockchain. The word “second time” is more of an adjective than a quantitative one, which is very graphic.
Nine days later, Satoshi Nakamoto transferred a single bitcoin to cryptographer Hal Finney. That transfer was worthless at the time, but it left a huge mark on the cryptocurrency story. It was the first time in human history that a peer-to-peer transaction was made without a trusted third-party financial institution.
The community affectionately referred to Finney as “Satoshi Nakamoto’s Watson” because when the telephone was invented, the first call was from Bell to his assistant Watson: “Watson, get over here, I want to see you.” In August 2014, Hal Finney died in Arizona after a five-year battle with acromegaly. Tribute to “Watson”!
A cryptocurrency is a digital currency created through code. A cryptocurrency is a digital asset and a decentralized system that allows secure online payments. Significantly different from traditional fiat currencies, they operate autonomously outside the confines of conventional banking and government systems. However, you can buy and sell them like any other asset now. You can also trade the price movements of various cryptocurrencies through CFDs now.
Cryptocurrencies fall under the umbrella of digital currencies, alternative currencies and virtual currencies. They were created to provide an alternative payment method for online transactions. However, cryptocurrencies are not widely accepted by businesses and consumers yet, and their prices are so volatile that they are not suitable as payment methods now. As a decentralized currency, its development is not overly constrained or influenced by governments, while the cryptocurrency economy is monitored by peer-to-peer internet protocols. The individual units that make up a cryptocurrency are encrypted data strings encoded to represent one unit.
Cryptocurrency is a digital or virtual currency backed by an encryption system. They enable secure online payments without third-party intermediaries. “Encryption” refers to the various encryption algorithms and encryption techniques used to protect these entries.
Cryptocurrencies can be mined or purchased from cryptocurrency exchanges. Not all e-commerce sites allow cryptocurrency purchases. In fact, cryptocurrencies, even as popular as Bitcoin, are rarely used in retail transactions. However, the skyrocketing value of cryptocurrencies has made them a popular trading tool. To a limited extent, they are also used for cross-border transfers.
Cryptocurrencies use cryptography to secure transactions and regulate the creation of other units. Bitcoin is the original and the most famous cryptocurrency, launched in January 2009. Today, more than 5,000 cryptocurrencies are available for trading online.
