The Emergence of Digital Currency

The Emergence of Digital Currency

By Jones William & D. S. Mitchell

“Cryptocurrency is a digital or ‘virtual’ currency that uses cryptography for security,”  Wikipedia

Who is Satoshi Nakamoto?

The first of two milestones in the development of cryptocurrency took place in 2008 and 2009.  The domain name was registered on August 18th, 2008.  In 2009, a programmer/inventor known only by the pseudonym, Satoshi Nakamoto announced he had found a way to build a decentralized digital cash system.  The mysterious “Satoshi Nakamoto” published a paper “Bitcoin: A peer-to-peer Electronic Cash System”.  In his paper Nakamoto described a totally decentralized digital currency, with no server or central authority, thus setting the ball rolling for the emergence of digital currency.

Minimizing Duplication

Digital currencies use extremely complex encrypt sensitive data transfers to secure the units of exchange. In this regard, digital currency developers build complex code systems based on advanced computer engineering and mathematics principles. This approach renders them almost impossible to break, thus minimizing chances of duplication. The adopted protocols for digital currencies also help mask the identities of cryptocurrency users, thus making it difficult to attribute fund flows and transactions to specific people.

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