Understanding Cryptocurrencies

P

eople’s interest in cryptocurrencies and blockchain technology has increased in the last few years. In itself, blockchain technology has the potential to change entire industries, but is currently in a relatively early stage of development.

With the digitalisation of technology, the idea of ​​cryptocurrencies emerged as a decentralised system for anonymous cryptographic electronic money.

The first description of such an idea under the name e-cash was made by the American cryptographer David Chaum back in 1983. 

Only 12 years later, in 1995, he managed to realise his idea for e-cash through Digicash – an early form of cryptographic electronic payments that required custom software to withdraw funds from a bank and use specific encrypted keys to send them to a recipient. 

The idea was for the digital currency to be untraceable by the issuing bank, the government or a third party.

As we have shared so far, cryptocurrencies are registered in a decentralized shared register called a blockchain. 

Each transaction is recorded in it and all participants in the network have access to it. Each registry entry, each transaction is checked repeatedly to eliminate the possibility of error or fraud. And it is in this activity that the diggers participate.

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