History Of Cryptocurrency

Johnpaul Ifechukwu

One of the key factors in the development of modern cryptocurrencies and blockchains is cryptography, the science of creating codes and cyphers for secure communication. However, the development of the cryptographic methods utilised today has a very long history. People have used cryptography to send information securely since the dawn of time.

The fascinating development of cryptography that led to the sophisticated and cutting-edge techniques used for modern digital encryption is detailed below.

The Origins Of Cryptocurrency In The Past:

Ancient cryptographic methods are known to have existed, and the majority of the earliest civilizations seem to have used cryptography in some capacity. The most fundamental type of cryptography, symbol replacement, can be found in writings from both Mesopotamia and ancient Egypt. The tomb of an Egyptian nobleman named Khnumhotep II, who lived about 3,900 years ago, contained the earliest known instance of this kind of cryptography.

The Knhumhotep inscription’s symbol replacement was done not to hide information but to make it more linguistically appealing. Around 3,500 years ago, a Mesopotamian scribe used cryptography to hide a recipe for pottery glaze that was used on clay tablets, which is the earliest known instance of cryptography being used to protect sensitive information.

Cryptography was frequently used to safeguard crucial military information in later periods of antiquity, and it continues to do so today. Messages were written on parchment laid over a cylinder of a specific size in the Greek city-state of Sparta to encrypt them, rendering them unintelligible until the recipient wrapped it around a cylinder of a similar size. The use of coded messages by spies dates back to the second century BC in ancient India.

Roman cryptography was arguably the most sophisticated in the ancient world. The Caesar cypher, a well-known example of Roman cryptography, included moving a predetermined number of letters down the Latin alphabet in an encrypted message. A receiver may successfully decipher the otherwise unintelligible message if they were aware of this procedure and how many places to move the letters.

Middle Ages And Renaissance Developments:

Although substitution cyphers, of which the Caesar cypher is one example, continued to be the norm throughout the Middle Ages, cryptography gained importance. The study of cracking codes and cyphers, known as cryptanalysis, started to catch up to the still-relatively-rudimentary field of cryptography. Around 800 AD, the eminent Arab mathematician Al-Kindi developed a method called frequency analysis that made substitution cyphers susceptible to decryption. For the first time, anyone seeking to decrypt encrypted communications has access to a means for doing so in a systematic way, necessitating future development in cryptography for it to continue to be helpful.

The polyalphabetic cypher, invented by Leone Alberti in 1465, is said to be the answer to Al-frequency Kindi’s analysis method. A message is encoded using two unique alphabets in a polyalphabetic cypher. The first alphabet is the one in which the message is written in its original form, and the second is the alphabet in which the message appears after being encoded. Polyalphabetic cyphers significantly improved the security of information that was encoded when used in conjunction with conventional substitution cyphers. The frequency analysis method was useless unless the reader was aware of the original alphabet used to write the message.

Information was also produced during the Renaissance, including a well-known early binary encoding system created in 1623 by the renowned polymath Sir Francis Bacon.

Modernization In The Last Century

The field of cryptography science

over the years, progressed steadily. Thomas Jefferson proposed a huge cryptographic advance in the 1790s, but it may never have been realised. His creation, the cypher wheel, was made up of 36 letter rings on rotating wheels that could be utilised for complicated encoding. The Second World War would see the use of this notion as the foundation for American military encryption since it was so far ahead of its time.

The ideal analogy would also be seen during World War II:

encryption sometimes referred to as the Enigma machine. This Axis tool, similar to the wheel cypher, uses moving wheels to encrypt messages, making it almost hard to decipher without another Enigma. The Enigma encryption was ultimately broken with the aid of early computer technology, and the successful decoding of Enigma signals is still regarded as a crucial element of the final Allied triumph.

The Development Of Computers:

Cryptography has significantly improved since the analogue era. Much critical equipment and computer systems currently use 128-bit mathematical encryption, which is far more powerful than any antique or mediaeval cypher. Computer scientists started working on a brand-new kind of cryptography called quantum cryptography in 1990 to once more raise the amount of security provided by contemporary encryption.

Cryptographic methods have also been used more recently to enable cryptocurrency. Hash functions, public-key cryptography, and digital signatures are just a few of the sophisticated cryptographic methods used by cryptocurrencies. Authenticating transactions and ensuring the security of data kept on blockchains are the main purposes of these systems. The elliptical Curve Digital Signature Algorithm (ECDSA), a specific kind of cryptography, serves as the foundation for Bitcoin and other cryptocurrency systems, adding additional security and guaranteeing that only the legitimate owners of money may utilise them.


In the last 4,000 years, cryptography has advanced significantly, and it is unlikely to slow down any time soon. Cryptography will keep developing as long as sensitive data has to be protected. Although some of this science’s most cutting-edge methods are being utilised in bitcoin blockchains today, cryptographic systems have a long history that dates back far further than that.

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