CryptoSeries: 1. Evolution of Electronic Currency & its Systems
Updated: Oct 12, 2019
Before the modernized era of crypto-currencies and whatnot, there was a time when there was no conceptualization of crypto but a very sweet and simple concept of electronic cash which actually paved the way for what we now know as the crypto-currency.
The incubatory period of the e-cash was supposedly in the year 1983 conceptualized by David Chaum for which he raised the amount of 10 million dollars, it was precursory method of cryptographic payment which like today’s bitcoin transactions, completely anonymous. The tech was new and promising after raising the aforesaid amount Chaum started the new company named Digi Cash, with the dot com burst in the eighties the company thrived and gave new mechanism of payment. The payment crypto-system used was a Rivest-Shamir-Addleman which is better known to us as the RSA payment system, it used a public signature scheme which is used to authenticate the payment without any additive or hidden conditions, the messages passed betwixt the payment was completely hidden to the third party and also the link between credit and debit was not shown. The tech promised a utopian world of privacy in the payment schemes. But with every uprise there comes a time of fall and soon with the increment in the sophistication of the web, the ignorance of the public increased with no regard for the privacy whatsoever. The public started surrendering themselves to the will of the corporate, the era of conversion of people into data bank arrived. Company Digi Cash became bankrupt in the year 1998 and was sold to the company called e-cash.com. The (.com) burst was a promising era but it took its toll on Digi Cash.
With the Digi Cash gone there was nothing which protect the public from hovering eyes of the government and corporate. There were many companies in the nineties which promised such degree of anonymity but eventually they failed.
2000’s was paving in and the need of the hour was to provide a system with the potential to protect us from the perpetrators. The cryptographic systems were outdated something new was to be invented or at least the proposal of something new was needed, the paper written by the Japanese scholar or scholars under the alleged pseudonym of Satoshi Nakamoto named “Bitcoin- Peer to peer payment methods” in the year 2009 the origin of the original author and the incubator still remains a mystery. However, this method has proven to be a boon for all the privacy lovers. The crypto-system is kind of multilayered in the Bitcoin transactions they are namely public key signatures, SHA-256 or 255, etc. not going into the technicalities of the system, it has proven to be the safest and fastest method of transaction known to the man. The system is completely decentralized. It is not prone to the attacks by the perpetrators. The currency is completely untraceable the address shown on the payment desk of the receiver as well as the sender is somewhat like an alphanumeric character, something like this “10ab2qa3nj4nej3njwj4w”. This information presented to the respective users is encrypted to the highest degree maintaining the secrecy of both ends, the only information presented which actually make sense is the ledger which include the transaction details about everyone who is part of the ledger meaning, the information is present publicly but in such a format that cannot be read by humans but the only factor which joins the nexus between transaction is the time and nothing else is present there. However, this is the most controversial subject matter of discussion.
Prajanya Raj Rathore,
Symbiosis Law School - Hyderabad.