Since the early days of internet computing, researchers and scientists have envisioned a protocol that would facilitate the exchange of true digital currency. However, as is common in the realm of science, this idea took time to materialize. In fact, despite notable attempts to create electronic currencies in the 20th century, the concept remained a mere dream until the advent of Bitcoin in 2009.
Fast forward to today, and there are thousands of technologies claiming to meet the initial definition of cryptocurrency or have transcended these limitations to create something entirely new. While individual claims may vary, cryptocurrencies share many common characteristics as a class of computational protocols. For instance, they all emerged from the need for enhanced digital privacy and the aspiration to eliminate third parties from digital exchanges.
Although Bitcoin currently stands as the most well-known cryptocurrency, they all leverage similar foundational building blocks.
Common characteristics of cryptocurrencies typically include:
Borderless: Cryptocurrencies enable sending and receiving transactions from anywhere in the world.
Durability: Cryptocurrencies can be utilized repeatedly without degradation.
Irreversible: Transactions cannot be reversed, and units cannot be spent twice.
Permissionless: Creating a wallet and owning cryptocurrency does not require providing information or obtaining permission.
Pseudo-anonymous: Transactions do not necessitate attaching personal names or identity information.
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BITOY Team
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