Is Bitcoin Really The First Cryptocurrency To Be Known?
04 Sep, 2022
Cryptocurrencies were around before Bitcoin, although they weren't well-known until after its 2009 introduction. The business DigiCash introduced eCash as the first cryptocurrency in 1990. Cryptographer David Chaum came up with the concept and started the business. In 1983, he published a paper with the title "Blind Signatures for Untraceable Payments."
Cryptography is used to manufacture and trade a type of digital asset known as Crypto. As it is created using intricate computer codes, it differs from fiat currency like metal coins or paper money.
It is essentially invisible and cannot be physically held or kept, unlike ordinary money.It is a virtual money, and an encryption technique is used to create a unique form of payment system.Instead of being controlled by a single entity, it is managed by a decentralized network of data ledgers and blockchains.Click here to read more about the benefits and drawbacks of cryptocurrency.
Let's now discuss e-Cash, our first cryptocurrency.
eCash – The OG of Crypto
American cryptographer David Chaum suggested a private and secure method of transferring electronic money in 1983. His plan was to employ a token money, similar to today's Cryptos, that could be used for private transactions between individuals.
Chaum created a method referred to as the "blinding formula" to encrypt data sent between individuals. This formula made it possible to manipulate the money without leaving any traces and allowed for the secure transmission of "Blinded Cash" between people.
Afterwards, Chaum established DigiCash to make his idea a reality. The business created eCash, the first-ever cryptographic electronic money. Although going out of business in 1998, DigiCash left behind concepts, formulae, and encryption tools that were fundamental to the creation of subsequent digital currencies.