CRYPTOCURRENCIES THAT PRE-DATE BITCOIN
RAZI SALIH
Bitcoin is considered by many to be the original cryptocurrency, as it was the first to resolve the problem of double-spending. However, there were digital currencies of various types that existed before bitcoin.
Smartcards in the Netherlands One of the earliest recorded forms of digital currency was a type of smartcard used by truck drivers in the Netherlands, almost two decades before bitcoin launched. These smartcards were linked to money so drivers could use them instead, to prevent night-time thefts from petrol stations.
Blinded Cash An American named David Chaum established a ‘blinded cash’ system called DigiCash, which encrypted information to facilitate the transfer of value between parties. Many of the concepts used in DigiCash underpin today’s cryptocurrencies, although the company itself went under in 1998.
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PayPal PayPal was at the forefront of the online payment revolution of the 1990s, bringing the world a secure platform through which money could be quickly transferred between parties through a web browser. Bitcoin came along in 2009, underpinned with blockchain technology that created a secure, decentralised ledger system for the first time.
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