When talking about the first crypto currency, there are several different options available, including Bitcoin and e-gold. However, the real question is: Which one is the first? Here’s a quick history of the four most popular cryptocurrencies: Bitcoin, Hashcash, e-gold, and Digicash. Let’s see how each one differs from the rest. Read on to find out more about these currencies.
Hashcash
Hashcash is a crypto currency. It was invented in 1997 by Back and based on the concept of proof-of-work. The proof-of-work method relies on a trick called hashing. However, hashcash is different from Bitcoin in several ways. Instead of using a central authority, the currency relies on users to generate the hash function. The proof-of-work function is distributed, and its success is tied to the number of users and their contributions to the community.
Adam Back, a computer hacker and crypto expert, invented HashCash in 1997. The purpose of his invention was to reduce the amount of spam that was distributed over the Internet. Spammers were abusing email accounts. Initially, it was free to send email, but soon enough, sending thousands of messages per second was easy. The proof-of-work system was designed to prevent such abuses.
Bitcoin
Bitcoin was the first cryptocurrency, but it wasn’t the first one. It took more than two decades before the concept of digital currency became widely accepted. Earlier attempts were Bit Gold and eCash, two digital currencies that arose out of American cryptographer Nick Szabo’s concept. They both relied on a decentralized network and cryptography to ensure that funds were transferred securely. Bitcoin eventually took the world by storm, and it has since become the most widely-used digital currency in the world.
Since Bitcoin’s inception, there have been several successful cryptocurrencies. The most popular is Bitcoin, which reached a high of more than $1,000 in January 2017. After that, it fell to about $300 and failed to regain the all-time high. As the price of Bitcoin grew, a new crop of cryptocurrencies popped up. These new currencies are known as altcoins and are often attempts to improve on the original design of Bitcoin. Namecoin and Litecoin were two of the first altcoins, and there are now over a thousand cryptocurrencies in circulation. And as Bitcoin climbed higher, the world began to see Bitcoin’s potential.
e-gold
Originally launched in 2007, e-gold was the first crypto currency.
It was developed by a mysterious man named Satoshi Nakamoto and is still technically active today. However, it no longer accepts new accounts or transfers of e-gold. In the wake of the 9/11 attacks, the perception of cryptocurrencies changed dramatically. All cryptocurrencies were viewed as a target for total control. This view didn’t sit well with e-gold, and it didn’t help it when Europe went the other way. European internet businesses moved operations to the USA instead, as there was less evidence of bad things happening there.
In 2006, e-gold was serving active customers from more than 100 countries and settled more than 3 billion USD in P2P payments annually. At its height, e-gold was backed by 3.8 tons of real gold. The company went on to make changes to its services to prevent illegal activities. Today, e-gold is available in several international currencies. Despite the risks, it’s still the first crypto currency with a high user base.
Digicash
Before Bitcoin, the crypto currency known as Digicash first emerged in 1997. It pioneered the use of public and private keys and digital wallets. After it was established, it went bankrupt in 1998. Nevertheless, the crypto currency is still considered to be a breakthrough, and some of its technology has been used today. In addition to its innovative use of private and public keys, DigiCash also provides services like digital wallets, which are now
widely used.
Before DigiCash was launched, its management tried to convince banks to adopt the crypto currency. It had long-term negotiations with Citibank, which eventually moved towards other projects. Then, the companies had to develop special software to enable users to send and receive digital currency payments. These banks were hesitant to embrace the technology at first, but eventually agreed to the project. This allowed consumers to use the crypto currency for everyday purchases, such as paying for a concert.