It all started with the two names David Chaum and Stefan Brands who are computer scientists who first proposed the idea of digital cash in the 1980s, from there the idea of a digital currency was born. However, a useful and well-liked type of cryptocurrency wasn’t offered until the invention of Bitcoin in 2009.
Satoshi Nakamoto, a mysterious person or group, is credited with creating Bitcoin. A decentralised digital currency that would enable internet transactions to be delivered directly from one party to another without the need for a central authority was described by Satoshi in the Bitcoin white paper.
The use of a blockchain, a decentralised ledger, to track and verify transactions, was the main invention of Bitcoin. A network of computers rather than a single entity maintains the distributed database known as the blockchain. Without requiring a third party to mediate the transaction, this decentralised framework enables transparent and safe exchanges.
Numerous additional cryptocurrencies have been established after the creation of Bitcoin. Since they are alternate forms of Bitcoin, these are frequently referred to as “altcoins.” The fundamental concepts of decentralised control and the use of a blockchain to track and verify transactions are shared by all altcoins, even though they may have distinct features or functions upon usage.
Over 5,000 altcoins have been developed since the invention of Bitcoin. Some of them are Bitcoin forks like Litecoin that have made minor changes to the original code, while others are entirely unique cryptocurrencies that were created from nothing like Ethereum.
The acceptability of cryptocurrencies as a valid form of money and investment has increased substantially in recent years, along with their appeal. But there has also been controversy around the usage of cryptocurrencies since certain governments and financial institutions are worried about their potential for criminal behaviour and lack of regulation. But to cadre this many countries have come up with their regulatory bodies to keep a check on this.
The UK’s Financial Conduct Authority, Australia’s AUSTRAC, Japan’s Japanese Virtual Currency Exchange Association (JVCEA) in 2020 are the part of the regulatory bodies to keep a check on any of the illegal activity involving virtual assets, if it is done by any exchange. The Toronto Stock Exchange now lists many Bitcoin exchange-traded funds (ETFs) that were approved in Canada, making it the first country to do so.
So, the use of cryptocurrencies continues to expand and change in spite of these debates.