In India, more than 200 millions of people don’t have bank accounts among 1.3 billion people. The bank even takes a 15 percent commission for each payment. To address these problems, India’s prime minister announced that he would implement a “demonetization” policy, an attempt to prevent black money and a step toward digital finance.
There were many problems in the financial sector, but there were also problems in the logistics and distribution process.
Around November 2015, a massive poisoning incident occurred in Chipotle, a famous U.S. franchise. The incident led to class-action lawsuits and a boycott began, with 43 stores closing. However, the cause of group poisoning was not found because of the unclear distribution process and supply chain in investigating the delivery process.
The possibility and effectiveness of technology were mentioned whenever a number of problems occurred, including leakage of personal information on Facebook.
Before an understanding of technology, the terms ‘Digital currency’ and ‘’ are often used interchangeably.
It is easy to understand that “” among “Digital currency(e-money),” which collectively refers to cyber-money managed by a centralized agency, is money in the decentralized environment of the . Understanding of the relationship between and may be possible if there is an understanding of technology.
So how did the start of digital money go?
DigiCash
In 1983, David Chaum, a cryptologist at UC Berkeley, founded DigiCash. DigiCash has used public key & private key mechanism to make tracking impossible from issuing banks, governments, and third parties. Encrypting the identity of the sender and recipient, it enabled them to identify who they were sending, tried to sell their licenses to the bank, but went bankrupt.
HashCash
In 1997, Adam Back introduced the concept of proof of work (POW) to devise a method to prevent the spam mail. Only when a mail sender can find a specific value by using computer operation, can it send an email to reduce spam.
B-money
In 1998, Wei Dai published a b-money with a distributed digital currency system with anonymity. Although it suggested -like principles such as currency issuance through PoW and transaction verification, they were not actually used. But Satoshi Nakamoto referred to B-money in a white paper as the first to refer to it as a reference.
Published at Tue, 30 Apr 2019 07:11:59 +0000
