Chapter 1 – A History of Money,
Cryptocurrency, and Blockchain
The concept behind establishing a permanent, decentralized ledger, like
blockchain, was first discussed in 1991. However, the first actual
blockchain implementation was designed in 2008, by Satoshi Nakamoto. It
was his initial design that was used as the underpinning technology that
runs the digital currency known as bitcoin.
The blockchain that was engineered by Mr. Satoshi serves as the public
ledger for all bitcoin transactions. Bitcoin, if you don't already know, is a
digital currency that is now worth roughly $16,000, that runs on blockchain
technology. The most wellknown blockchain on the market today is that for
Bitcoin, with the Ethereum blockchain coming in a close second.
The technology that allows bitcoin to serve as a digital currency, as a store
of value, and as a medium of exchange is blockchain because bitcoin
transactions are recorded in a blockchain ledge. This means blockchains are
not limited to running bitcoin; rather blockchain application can span the
entire gamut of trade, finance, healthcare, legal operations, records
management, gaming, online exchanges, probability, and more.
Before you can get started understanding blockchain technology, you have
to know how it fits in with our current currency and digital currency.
Money
Money is nearly as old as humanity. Many books have been written on the
subject. One that is worth checking out if you are interested in the matter is
The Ascent of Money: A Financial History of the World by Niall Ferguson.
Money, to work, has to be both a store of value as well as a means of
exchange. In the past, we've used many different items for money, including
gold, silver, cattle, beads, and salt. No matter the form it takes, money has
to execute these two essential functions. Also, there has to be trust that
these roles can be fulfilled by the money.
Cryptocurrency
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