These days, cryptocurrency investment has been a trend. It is one of the most profitable investment, as well as the most fluctuating investment tool. But how does it came to the world? If you are interested in the cryptocurrency trading, it won’t hurt to learn about the history of cryptocurrency and digital currency.
A brief history on the Cryptocurrency
Many attempts to make cryptocurrency started during the dot-com boom in the 1990s. Including Flooz, Beenz and DigiCash, but they all ended in failure. The causes of such failures have existed, for example, fraud, financial problems and conflicts between company employees and representatives.
These failed efforts to issue digital currency had one thing in common: they adopted a reliable third-party approach. That means the companies behind the attempt have verified and facilitated transactions. But after these companies went bankrupt, the digital cash system pretty much seen as a failure for some time and no one paid attention.
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How Bitcoin came to the surface, and the cryptocurrency trading
Then in early 2009, an anonymous programmer nicknamed Satoshi Nakamoto (meaning multiple programmers in Japanese) introduced Bitcoin for the first time. Satoshi called it the “peer-to-peer electronic cash system”. This is a 100% distribution system with no central server or central administrator present. The concept was almost in the same form as the P2P network for file sharing.
The most important issue that the payment network needs to address is how to cope with double spending. This is a fraud that requires spending the same amount twice.
The traditional solution to this is that a trusted third party (central server) keeps records of all balances and transactions. However, the problem with this method is that it requires a central administrator who is familiar with the details of the money transactions and the personal information of individual users.
Continue reading in the second part of this article.
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