If you think that bitcoin is the first cryptocurrency to be created in the history of time, perhaps there is a knowledge gap in your information.
Yes, cryptocurrencies existed even before bitcoin, but there were some issues because they did not reach public attention. Bitcoin was introduced in 2009 among the people, and it received widespread recognition by the people of the modern world. However, due to the lack of digitization and means to get information, people could not get the details of the cryptocurrencies created before bitcoin. Therefore, the concept of cryptocurrency and cryptography came before Bitcoin in 1990. Cryptographs named David launched an official paper, and it was named as the blind signature for traceable payments. It was back in 1983, and he launched the company DiGicash in 1990, which became the first cryptocurrency company in the world.
However, the company did not get much hype due to the lack of internet availability worldwide, and people were unaware of this new technology. It led to the downfall of this technology, but several other attempts were also made to create crypto coins. But, all these attempts failed until and unless bitcoin was created in 2009. It is well known as the first cryptocurrency globally, but there were other digital tokens before the existence of bitcoins that we don’t know about. So, this is something that we will be enlightened about today. We will mention some of the most crucial details regarding the evolution of cryptocurrencies before bitcoins in the history of time. If you are looking for a reliable trading platform to start your trading journey, Bitcoin Motion will help you.
It was in 1983 that cryptography decided to launch the electronic form of money. The basic idea behind launching the electronic form of money is to ensure that cryptocurrency transactions can take place privately and that individuals can make them happen. There was no third-party involvement or central authority required to make those transactions. Therefore, David became the first person to evolve the concept of electronic cash, which is considered to be similar to modern-day cryptocurrencies like bitcoin.
The basic formula that is used for the development of this digital cash was blinding. It is a cryptographic technique to pass the transaction between two individuals. The primary name she gave to his cryptocurrency was blinded cash, which can be transferred from one person to another by keeping the transactions safe and secure. Moreover, every transaction has its signature, which refers to its authenticity. Moreover, unlike Blockchain technology today, it was highly free to modify. Therefore, the transactions you upload once on the system of David could also be modified, which is an additional plus point in the traditional crypto coin.
Even though it was one of the most incredible concepts of cryptocurrencies in the history of time, the concept was not very well accepted by the people. Also, it was practiced for several years to create the electronic form of cash, but the company went bankrupt in 1998. Therefore, the creator of that particular digital token had to put down the idea, but many others followed his concept. The encryption technique and other formulas for creating digital cash were taken up by the other companies which had the means to make this dream a reality.
Other early cryptos
After the E-cash, another significant cryptocurrency attempted to evolve was E-gold. Dr. Douglas Jackson and another creator decided to create an electronic form of money connected to gold in 1996. The digital currency was capable of allowing people to transfer the ownership of gold between individuals. Moreover, if it has to be done with the parties, it is also very much possible, but this concept will not be a complete success. Nevertheless, this concept became very popular among money laundry practitioners and had to be put down as soon as possible.
Bit gold is another prevalent cryptocurrency concept launched before bitcoin, and it became the basis for the creation of bitcoin in the future. The name was a bit cold, and it used the same technology as the Blockchain does for bitcoin. However, there were a few differences; it facilitated peer-to-peer networks and ledger technology. In addition, cryptography was used, and mining operations were also required for this money. Therefore, it is considered the most similar digital token to the BTC time.