Digital Currency - Bitcoin

The idea of a digital currency first appeared in the 90s, there were some promising projects that eventually failed. One of the problems with the early systems that wanted to create a digital currency was the use of trusted third party that were in charge of validating the transaction. Since the 90s the technology had an incredible progress and with that the people are spending more time every year in the digital world.

 

It was just a matter of time since someone had to find a solution to the problems of the digital currency systems developed in the 90s. On 2008 a programmer active on internet under the name of Satoshi Nakamoto published a whitepaper about a "peer-to-peer" electronic cash system and later on 9 January 2009 the open-sourced system described in his was paper was released on the internet. You can ask what he did different from the ideas proposed in the 90s and how can an electronic financial system be used and secured without a big entity (like banks) by the ordinary people.

 

Decentralized networks and blockchain

 

First of all, bitcoin doesn't have a central server that is doing all the work when it comes to transactions. Because this project was introducing as a decentralized network, every participant will have a copy of all the transactions and with the help of the cryptography the nodes (participants of the network) can check and validate the transactions. mitsuzi.xyz/rdc/others/bitcoin-and-digital-currency/476/

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