Nowadays, Investment purposes are not just limited to stocks and real estate, but the term is also saturated with digital currencies and blockchain. Despite a chaotic environment in the mainstream cryptocurrency market, bitcoin is still catching the attention of many.
Bitcoin maximalists think that it is the only authentic virtual coin and other cryptocurrency projects are nothing but a rug pull and scam. Everyone knows the name behind bitcoin, but no one has seen him even after a decade of bitcoin’s release. Bitcoin paved the way for blockchain and decentralized finance to the mainstream market. Unfortunately, the white paper of this virtual coin is not present in each public domain. If you are interested in bitcoin trading check how to keep your bitcoin key safe and secure .
The official copy of bitcoin’s white paper is present only on bitcoin.org. Undeniably bitcoin initiated and blazed this marketplace, but was it the first cryptocurrency? There was evidence of virtual currencies operating in the conventional monetary system. Let’s find out if any of the virtual currency of earlier times was a cryptocurrency or not.
The developer of blinded cash was David Chaum. Blinded cash was not David’s first virtual currency project as he worked on many other projects before this succession. David conceptualized a project similar to the cryptocurrency of these days but with few disparities.
The developer used a blinding mechanism to bring encryption to transactions. David Chaum was also the founder of the first popular virtual coin project, Digi cash. Digi cash did acquire a lot of traction initially, but later, the project faced many challenges, and after operating for years, the company went bankrupt.
Digi cash was web-based money, and developers kept introducing different projects like this. Finally, one of the biggest e-banking companies, PayPal, introduced the concept of web-based money. In short, with the help of PayPal, users were allowed to transfer money from one bank account to another in no time. In no time, PayPal collaborated with one of the famous e-commerce companies of all time and grabbed the limelight.
In short, PayPal is just like the bitcoin of the e-banking industry as, after this company, there were many similar models, but no one has managed to outplace PayPal so far. Elon Musk, a cryptocurrency enthusiast, was one of the founders of this company, and now you know how Elon Musk became interested in digital currencies.
B-money was conceptualized project but never came into live-action. Wei Dai conceptualized this model in the very first place, and it did not resemble cryptocurrency bitcoin at all. However, b-many was a close attempt to formulate a privacy-focused and pseudonymous monetary system. B-money had the features of decentralization just like a standard cryptocurrency model. Moreover, a system just like a smart contract was implicating in B-money.
Bit gold was also a conceptualized model of cryptocurrencies. People confuse bit-gold with the cryptocurrency exchange but bear in mind bit gold is a project proposed by the creator of intelligent contracts. Besides inventing the brilliant contract concept, he also created the consensus mechanism of proof of work. One year before the invention of Bitcoin, Nick Szabo proposed this model, and it was implicating on POW consensus mechanism just like bitcoin.
As per reports, bit gold inspired Satoshi Nakamoto to create bitcoin. Similar to standard virtual coins, bit gold was to serve the purpose of mitigating centralization from the monetary system. However, just like B-money, the concept proposed by Nick Szabo never came into live-action. Nevertheless, bit gold is still an inspiration for many developers who created some of the famous and valuable cryptocurrencies of all time.
Hash cash utilized the consensus mechanism invented by Nick Szabo for the very first time. Hash cash is one of the oldest cryptocurrency-like models, and it was meant to mitigate many challenges in the monetary system.
After operating for a few years, the demand and efficiency of this currency declined. However, Bitcoin still comprises the majority of elements that were present in the hash cash network. Minting of new hash cash also required a massive chunk of electricity, which declined the demand for hash cash. After considering all the possibilities and technologies, Satoshi Nakamoto made the first-ever successful cryptocurrency model.
In short, yes, there were shreds of evidence of cryptocurrencies, but none of these models was a dedicated cryptocurrency.