Cryptocurrency is a digital asset that inherently act as an exchange medium
using the technology of cryptography to safely secure it’s concerned transactions resulting in control of the newly generated additional currency units
and subsequently verifying the asset transfer.
If we look back at the history of cryptocurrencies, Satoshi Nakamoto, the
pseudonymous inventor of Bitcoin, never had the intention of inventing a
cryptocurrency viz. Bitcoin. Nakamoto, made an announcement in late 2008
about Bitcoin, he mentioned about the development of an electronic cash
system based on peer to peer.
“Announcing the first release of Bitcoin, a new electronic cash system
that uses a peer-to-peer network to prevent double-spending. It’s completely decentralized with no server or central authority”.
– Satoshi Nakamoto, 09 January 2009, announcing Bitcoin on SourceForge.
Nakamoto, took along the concept of digital cash and added a dimension of
decentralization, after the concept of digital money failed in 90’s decade :
“ … after more than a decade of failed Trusted Third Party based systems (Digicash, etc), they see it as a lost cause. I hope they can make the
distinction, that this is the first time I know of that we’re trying a nontrust based system”.
– Satoshi Nakamoto in an E-Mail to Dustin Tram
The problems faced in this system were double spending and consensus
system to verify without having a central authority in control. In a network
having decentralized perspective, there is no particular server. Thus, every
single unit of node or network fulfil this promise of completing the job. The
network works on the basis of every single peer having a list of all transactions to verify and check regarding the validity and of forthcoming transactions and minimise the risk of double spending. The proposed consensus
included a set of rules, most of which regard transaction’s validation and
transaction’s block. The latter are transaction groups close in time, cryptographically concatenated to compose the blockchain, that led to birth of