History of Crypto-Currency

In October of 2008, Satoshi Nakamoto (presumably a psuedonym) published a paper proposing the use of a peer to peer network doing “proof-of-work” calculations to establish a form of electronic cash. This became known as BITCOIN. All fiat currencies rely on some form of trust to maintain stability. This trust is often based on a national economy. BITCOIN establishes trust through cryptographically calculating a chain of digital signatures that form a ledger of transactions. Bitcoin became operational in January of 2009 when the first electronic client wallet was created and the first bitcoin units were released.

BITCOIN uses a hashing algorithm known as SHA-256. In September of 2011, a new crypto-currency concept was proposed that used a different kind of calculation based on Key Derivation Functions (KDFs) that is called Scrypt. In October of 2011, several variations of Scrypt based coins were launched, including LITECOIN. By March of 2013, there were three new crypto-currency coins that were derivatives of LITECOIN. By April of 2013, there were seven derivatives of LITECOIN. By May of 2013, there were thirty four.

You can explore the historic spawning of alternate crypto-currency coins in this interactive map tool: Map of Coins – [mapofcoins.com]

SEE ALSO:
History of Bitcoin – [historyofbitcoin.org]
Bitcoin Virtual Money

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