History of Crypto Coin and Development of Digital Money

MR JIM | Crypto Coin , is the current Prima Donna, this Digital Currency has advantages that conventional currency does not have. The rapid advancement of technology affects all lines of human life, including the field of currency (currency). The presence of currency in digital form seems to strengthen evidence that virtual payments in the current era have started to be needed.

What is Cryptocurrency ?

Cryptocurrency or crypto currency is a form of digital finance that is not physical in nature. Unlike cash, which we can touch and feel, cryptocurrencies have absolutely no tangible form at all.

Lately the name crypto coin has become increasingly popular in cyberspace since the world's billionaires are actively trading using this one currency. Then actually, what is crypto coin ? Are crypto coins real even if they can't be touched? What are the advantages of playing crypto coins ?

Check out the following explanation.

The Origin of the Appearance of Crypto Coin

Crypto coin is a digital asset that is created and designed to act as a medium of exchange by using strong cryptography for transaction security, control of the process of creating additional units, and verification of asset transfers. Sounds complicated, right? 

Simply put, this crypto coin is digital money that can be used to transact in a cryptographic system. However, even though crypto coins function as a medium of exchange, in Indonesia there is no legality that permits crypto coins as a legal means of payment.

First Introduced by David Chaum

1983 was the beginning of the emergence of a cryptographic digital currency called e-cash. The initiator was a cryptographer from America named David Chaum. It was only in 1995, David Chaum implemented this idea in the form of Digicash ( digital cash ). 

At that time payments using a cryptographic system required user software to be able to withdraw notes from the bank and then designate an encrypted key to be able to send it to the recipient. As a result, transactions cannot be tracked by anyone, including the government or other third parties.

At the beginning of its emergence, this crypto coin was not regulated by government regulations because it was only considered as an alternative means of payment. After all, this currency also has no physical form so it doesn't need to be taken seriously.

The Appearance of Bit Gold Introduced by Nick Szabo

In 1998, a character named Wei Dai published a description of b-money which was characterized as a distributed digital cash system. This kind of financial model was classified as sophisticated at that time, which was still dominated by conventional finance.

Shortly thereafter, someone named Nick Szabo introduced bit gold, which is one type in the form of bitcoin. Bit gold requires its users to follow an integrated cryptographic work system. The complexity of the existing system makes crypto coin enthusiasts only come from certain circles.

Developments in Digital Finance Late 90s to Early 2000s

Advances in the digital world in the late 90s to early 2000s prompted the creation of various e-money systems. The most prominent and enduring is PayPal e-money, which was founded by a famous entrepreneur, Elon Musk. 

Thanks to PayPal, digital finance is entering a new era and is starting to be recognized as a legitimate online-based payment instrument. Then the emergence of crypto coins in various models and variations is unstoppable.

Latest Crypto Coin Developments

In 2008, crypto coin found a bright spot after a character named Satoshi Nakamoto came with his book, Bitcoin – A Peer to Peer Electronic Cash System. This book became the starting point for the rise of crypto coins and various discourses about cryptography emerged. 

A year later, Satoshi officially released a crypto coin called Bitcoin to the public. Exchange (trading) Bitcoin began to do a lot. In 2010 there were even more crypto coins in other forms. Since then, crypto coins have experienced a significant increase in value.

Crypto Coin Mining System

In the world of cryptocurrencies, mining is the validation of transactions. People who successfully mine, will get a new crypto coin as a gift. These rewards serve to reduce transaction costs by providing complementary incentives that contribute to the processing power of the network. 

Mining crypto coins certainly cannot be done with an ordinary computer because it involves complex computational systems and algorithms. But if you already recognize the formula, it's easy to make transactions. 

Usually crypto coin miners work in certain groups, although some work alone. Within a team, there is a division of resources and processing power. If you have made a profit, it will be divided among the people according to the portion of the division of labor. 

Abroad, such as China, several times there have been bans on bitcoin mining and other virtual currencies. As a result, many miners migrate to other countries in order to continue to operate data centers. 

Widely Used Types of Crypto Coins

Currently there are many types of crypto coins circulating in cyberspace. The most famous currency is of course Bitcoin. But besides that, there are many other types. It is even estimated that there are thousands of crypto coins that are used as cryptographic currency. Some of them are Litecoin, Ethereum, Dogecoin, Stellar, Monero, Tethre, Cardano, Tron, and so on.

The number of crypto coins around the world today can be said to be large, but they can also be classified as rare. Since bitcoin was first released, there have been at least more than 4,000 alternative bitcoin variants. When the value increases, people will flock to mining crypto coins. As a result, the number in circulation is limited.

When the amount is limited, some people will trade (exchange) at a certain price. At first glance, the trading system using crypto coins is similar to stock trading because the concepts are similar.

It's just that crypto coin prices tend to fluctuate. That is, when it is rising, the person who owns it can make a lot of profit in the blink of an eye. But when the price is down, it can fall as low as possible. 

Crypto coin also has a wallet that functions as a store of public and private keys. That is, this wallet stores addresses that can be used to receive or issue crypto coins. Simply put, like an ATM at a conventional bank. 

Cryptocoins in Indonesia

Recently, crypto coin has experienced a significant increase after Elon Musk legalized Bitcoin payments for Tesla product transactions. People who were previously unfamiliar with cryptocurrencies are starting to dare to try it. 

Previously, crypto coin "miners" in Indonesia made transactions clandestinely. After Bappebti (Commodity Futures Sector Trading Supervisory Agency) issued regulations that allowed cryptocurrencies, only then did people dare to transact openly.

The development of crypto coin values from time to time begins to be monitored. Like the value of physical currency, the value of crypto coins also attracts the attention of some circles of society. For example, in May 2021, a number of crypto coins such as Polygon and Litecoin experienced an increase so that transactions on that day also increased.

The value of Polygon experienced a price increase of up to 30.38 percent in just 24 hours. This value when used as dollars (USD) per chip is equivalent to USD 2.03 (around IDR 29,000). Imagine how profitable it would be to have lots of “mined” Polygon pieces.

However, crypto coins involve a fairly complex IT understanding and are not necessarily understood by all people, let alone lay people. Therefore, before really getting into the world of cryptocurrency , it would be better to find as much information as possible about how this digital currency works. 

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