Crypto or Digital currencies are now more common than ever, also known as e-money. Until recently, in order to remove the need for paper money, digital currency lacked stability. This is no longer the case, however, with the rise of the internet and the introduction of blockchain technology. Today, digital money is set to forever change the market. Importantly, all applications of conventional types of money are packed with digital currencies. Via these technologically superior financial alternatives, you can buy goods or pay for services. Digital money offers consumers instantaneous transfers and more market transparency.
As such, more countries plan to unveil some form of digital currency in the next couple of years. Unlike their traditional counterparts, digital currencies only exist on the internet. This new form of money is completely intangible, you can’t touch or feel it. It only exists in the digital realm. Every aspect of their issuance, transfer, and record-keeping is digital. Consequently, you will need an internet supported device to access these funds.
1. History of CryptoCurrencies
The creation of the first definition for digital currencies back in 1983 is credited to an American computer scientist by the name of David Chaum. By 2990, Chaum developed a working model dubbed DigiCash for his theory. The idea had been years ahead of its time. Consequently, the momentum needed to succeed in the market was never acquired. The first documented wide-scale public use of digital currency occurred in 1996. The currency known as e-gold had secured millions of active users until government officials shut it down in 2008. From that point, a myriad of corporate-sponsored digital currencies entered the market. All of these digital currencies encountered a problem known as “double-spend.” Basically, developers struggled to develop ways to ensure that each digital currency could only be spent one time during transactions. This issue saw resolution with the introduction of the world’s first Cryptocurrency “Bitcoin”.