I am starting a series on understanding crypto specially for newbies in field of like me to get full understanding of this new emerging digital field, let me tell you i am not a heavy tech guyso if i make any mistakes let me know in comments. SO LETS START !
History of cryptocurrency ?
Before going into that more complex tech stuff, our today's topic is to know some interesting historical facts of cryptocurrency. Like?
How it came in to existence ?
Who invented this?
And some more.........
So let me tell you the cryptocurrency, never intended to invent as a currency.it was emerged as a side product of another invention. Satoshi Nakamoto, who is the unknown inventor of Bitcoin said in his announcement of Bitcoin made in 2008, that he developed “A Peer-to-Peer Electronic Cash System“.
why satoshi think of this to be developed ?
Because n the nineties, there have been many attempts to create digital money, but they all failed for reasons such as reasons for their failures, such as fraud, financial problems and even frictions between companies’ employees and their bosses and many more. These systems are centralized because there are servers entities, there is a trusted third party to handle transaction which keeps record balances and transactions and they have control of your funds and with all your personal details on hand.
A decentralized System came into existence ?
After seeing all the centralized attempts fail, Satoshi tried to build a digital cash system without a central entity. Like a Peer-to-Peer network for file sharing.This decision became the birth of cryptocurrency In a decentralized network like Bitcoin, in this network there is a Blockchain -which is a public ledger of all transaction that ever happened within the network, available to everyone. Therefore, everyone in the network can see every account’s balance.
Every transaction is a file that consists of the sender’s and recipient’s public keys (wallet addresses) and the amount of coins transferred. The transaction also needs to be signed off by the sender with their private key. All of this is just basic cryptography. Eventually, the transaction is broadcasted in the network. Within a cryptocurrency network, only miners can confirm transactions by solving a cryptographic puzzle. They take transactions, mark them as legitimate and spread them across the network. Afterwards, every node of the network adds it to its database. Once the transaction is confirmed it becomes unforgeable and irreversible and a miner receives a reward, plus the transaction fees.
Sources
Article Source 1: https://blockgeeks.com/guides/what-is-cryptocurrency/
Article Source 2: https://cointelegraph.com/bitcoin-for-beginners/what-are-cryptocurrencies/amp