The cryptocurrencies world is broad and fascinating. Although more than 1 000 virtual currencies are currently circulating on the Web, the origins of this concept are still unknown to many. Let us guide you through the beginnings of this revolutionary concept.
Leading Indian bitcoin exchange Unocoin has partnered with Blockchain, the company behind popular bitcoin wallet
The first cryptocurrency blueprints were developed in 1998, but never officially launched on the market. One of them was created by Nick Szabo, Bit Gold, and the other, B-money, was envisioned by Wei Dai. At the peak of the global financial crisis of 2008, the concept of modern cryptocurrencies emerged. During this economic catastrophe, many banks around the world abruptly plummeted and had to be rescued by governments, at the expense of taxpayers.
Some countries had a tough time getting back on their feet after this crisis, and some others are still in the financial healing process, almost 10 years later. This event underscored the fragility of the modern monetary system, of which the health relies on banks and other traditional financial institutions to which we must entrust our money. The people’s trust in the traditional financial institutions and in the government is undermined. People want to use their money at their convenience and stop paying astronomical fees to banks that yield minimal returns on investments.
The idea of a completely decentralized (without any central authority) and entirely consumer-controlled cryptographic currency emerged in the light of the 2008 financial crisis. Cryptocurrencies is a solution in response to a collective problem.
The cryptocurrencies concept relies on cryptographic techniques and on the blockchain technology, which allows for anonymous, free of charge and easy transactions. It is a tailor-made computing technology; an international, incredibly powerful shared infrastructure that can transfer funds and represent the ownership of property. It enables developers to store registries of debts or promises, move funds according to precise instructions (like a will or a contract) and many other potential actions, all without implicating a third party.
On a blockchain, anyone can set up a node that replicates the necessary data for all nodes to reach an agreement and be compensated by users and application developers. This allows for the users’ data to remain private and for decentralized applications. More and more businesses turn to this technology, which continuously gains popularity. Various countries from Latin America, Southeast Asia and Africa issue strict regulations on currency control, and consumers are turning to user-friendly and cost-effective solutions rather than to traditional financial institutions. Little by little, the general population is adopting the options that cryptocurrency allows for and is becoming aware of the potential profit that it can generate.
The cryptographic currency is a potential remedy to a disease that is slowly weakening people’s financial health all around the world. This technology could lead to a new era and to a global revolution, just like the Internet in the 1990s. The cryptocurrency market is blooming, and its possible uses are endless