Cryptocurrencies are now emerging as popular trading commodities. Known as digital money, these revolutionary currencies are used instead of fiat money for numerous exchanges. Now that the cryptocurrency revolution has begun, knowing its history could be helpful. But first, what is cryptocurrency?
Cryptocurrency is a highly complex code system that can encode valuable data transfers and facilitate their safe exchange. Advanced mathematics and computer programming is used to create these cryptocurrencies. As a result, deciphering or ‘hacking’ cryptocurrencies is virtually impossible.
Cryptocurrencies is built on a highly encrypted platform that consists of blocks that are linked to each other in a chain, or ,blockchain technology. These blocks have a record of all transactions that have ever been conducted on a certain network. The blockchain contains every transaction since the first cryptocurrency was ‘mined’ by a miner and added to the network. The miner is a person who uses complex mathematical functions to unearth, or ‘mine’, a cryptocurrency.
The blockchain technology is decentralized and the online ledger is shared with everyone who owns a particular cryptocurrency. Any additions or transactions of currencies are validated by everyone on the blockchain network.
A quick history of cryptocurrencies
In 2008, the elusive Satoshi Nakamoto published a white paper called ‘Bitcoin – A Peer to Peer Electronic Cash System’. He created the first decentralized system of money after previous attempts at centralized digital money, B-Money and Bit Gold, had failed.
In 2009, the Bitcoin software was made publicly available and the first miners added coins to the decentralized network.
By 2010, mining had become less popular than trading Bitcoins. At first valued at little over a cent, Bitcoin cost around $27 by the beginning of 2010.
In 2011, owing to the popularity of Bitcoin, several alternate cryptocurrencies called altcoins began to appear. The altcoins tried to upgrade the Bitcoin program with better speed, easier interface or some other aspects. Namecoin and Litecoin were some of the first altcoins that paved the way for thousands more.
In 2013, Bitcoin faced an all time low with prices staggering around $300. People who invested in Bitcoins feared that the currency had come to an untimely end. However, they were proved wrong. In two years, the prices had climbed back to $10,000.
2013 also saw the rise of Ethereum, a smart contracting based cryptocurrency proposed by Vitalik Buterin. Ethereum used the currency Ether to provide services of smart contracts, which are virtual contracts, and created a platform on which more decentralized apps, or DAAPs could be created. Ethereum was the first coin to launch an Initial Coin Offering, or an ICO. ICO’s provide means for start-ups to launch their businesses without the hassle of raising initial capital. The ICO’s are purchased by investors in return for future services or for future exchange against existing cryptocurrencies.
In 2014, a few untrustworthy cryptocurrencies and exchanges scammed their users. In January, Mt. Gox, then largest Bitcoin exchange, went offline with 850,000 Bitcoins. Today, those Bitcoins would be worth around $5 million USD. The incident is one of the reasons for today’s skeptism towards cryptocurrencies.
In 2017, more and more money flowed into the cryptocurrency industry and the market cap on all cryptocurrencies reached $300 Billion USD. The public grew more aware of the merits of blockchain technology and dealing in cryptocurrencies. Bitcoin hit a value of $10,000 USD.
Today, in 2018, a bunch of potentially destructive regulations have had no impact on the cryptocurrency market. Banks are now scrambling to partner with the crypto market and the public is forming a clearer opinion about the crypto market. Blockchain technology, which was invented for cryptocurrencies, is also finding its way into other sectors.
In 2018, Feelium enters the market as a tokenized platform to make transactions simpler and secure. Feelium tokens can be used to facilitate smart contracts and optional escrow services through a Quick Access Token which acts as a private key to authenticate transactions which is provided on purchase. Feelium has several additional features such as cloud storage and private key retrieval.
The pre-ICO sale of the Feelium is live now, check out www.feelium.co.
Take part in the world’s cryptorush; support platforms like Feelium today!
