The Origins of Modern Cryptocurrency

NAVASU Investing in Cryptocurrency

The Origins of Modern

Cryptocurrency

The Origins of Modern Cryptocurrency

It is generally accepted that Bitcoin was the first cryptocurrency.

This definition came about mainly due to the advent of the innovative blockchain technology underpinning Bitcoin, which resolved several key issues prior digital currencies had faced. However, there were attempts made to create cryptocurrencies long before Bitcoin surfaced.

Electronic Cash in the Netherlands As many as 20 years prior to the creation of Bitcoin, an electronic cash system was introduced in the Netherlands whereby truck drivers were issued with smartcards to pay for petrol at night. This was introduced following a spate of thefts at late-night petrol stations. This is recognized as one of the earliest versions of electronic cash and a forerunner of digital currency.

Blinded Cash Blinded Cash was an early example of a token-based currency using encryption to secure transactions. Although DigiCash – the original company – went bankrupt, this idea formed the basis of later cryptocurrencies.

Hashcash Hashcash was a popular form of electronic currency in the mid-1990s, whereby users could generate and distribute new coins through a proof-of-work algorithm.

Many innovations developed through the Hashcash system ended up being utilized by Bitcoin.

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