Today we want to tell you an interesting fact related to the origin of cryptocurrencies. Surely, you already have more than clear that 2009 was the year of the launch of the Bitcoin and that, following this path, thousands of new virtual coins have been created, but what happened before all this? How did Bitcoin end up like it is right now? At what point was the blockchain revolution?
Blockchain revolution? This is how it all began
Bitcoin. Virtual currency. Independent. Decentralized. With a current value of around 10,000 euros. 2009, year of the change. 2010, first real transition with a bitcoin to pay for two pizzas. It was with B-Money and Bit Gold of Wei Dai and Nick Szabo in 1998 when it was definitively introduced the notion of digital capabilities for the management of cryptocurrencies.
Its creator, Satoshi Nakamoto, gave a very important step to pull the shift lever in the financial world, introducing the possibility of decentralization. And not only that, but also the option to grant the power that society deserves on its own money.
The arrival of HashCash in 1997
Did you know that long before it was carrying out the launch of the first cryptocurrency there had been other decentralized progress already? Adam Back did it. This doctor specialized in communication sciences has been recognized for his work in cryptographies and for his role in the cypherpunk, among others.
He created a decentralized system of verification of transactions applied to emails, something similar to the current system of verification of Bitcoin transactions. He pressed the button of change and triggered what several years later would be a real revolution blockchain.
This system receives the name of HashCash, and it is probably the star product of its creator. It is a kind of measure against spam in emails and blogs. "Back devised this technology based on valuation via processing or combating junk mail, which was a document presented in 1992 by the experts Cynthia Dwork and Moni Naor", according to Academy Bit2me.
Its operation is based on applying a text encoding through a label created by the HashCash algorithm in the header of the e-mail that you want to send. What is the advantage of all this? It seems that if a certain user uses its processor to generate this seal, it is hardly likely to be a spammer. In short, it's an effective way to identify whether it is a spam or not.
Other cryptographic projects made by Adam Back
It must be said that HashCash became proof of work (PoW) as a legacy of the Bitcoin. Nakamoto followed a path designed by various members of the cypherpunks. But this was not the only product that was developed, so take a look at these other projects of Back:
- PGP (Pretty Good Privacy) signature system. Back presented together with Ross Anderson 'Eternity-USENET', a service conceived to publish information censorship-resistant.
- It is a space for the cryptographic community. It dates from 2003 and it is a benchmark website for the cryptographic community to have different developers of systems focused on privacy and anonymity.
- C-lightning. A technology designed to promote the development and technology of Bitcoin and the Blockchain.
Adam Back, present in the Bitcoin’s white paper
Did you know that Satoshi Nakamoto was inspired by HashCash to design his cryptocurrency? He wanted to know if the protocol could be applied on a larger scale, and it seems that he did. Back was one of the few people who could communicate with it. Meanwhile, thousands of professionals around the world are working to improve the possibilities of virtual currency and apply them in society.
Many cryptocurrencies make up the world of the blockchain revolution to make our universe a better place. More secure and transparent.