History crypto

The Internet is one of the most misunderstood inventions. At the very moment when it seems that he is ready to offer us something new, it appears. The Internet is developing gradually and we do not even notice a lot of small changes until we suddenly realize that Wikipedia has become the main source of information that we communicate with Skype and began to store documents not in the computer but in the Google Drive storage.

We are starting to use a tool because it is interesting and promises something new. At some point it becomes a part of our daily life, and it seems to us that he was always with us. Once I traveled around the city peeking into a paper map, and now I use Google services and I can not even remember when and how I switched to them.

At some point, money began to become “digital”. They developed, penetrating the Internet deeper, until they appeared completely virtual forms, namely, crypto-currencies. However, the transition from Visa and PayPal to crypto-currencies was not as simple as we expected. Traditional payment services and crypto-currencies differ so much that some people still can not understand the essence of new money and their advantages over traditional fiat money.

Like Internet services, crypto-currencies are becoming more widespread. Every day there are new cryptosystems and shops accepting crypto-currencies. Sooner or later we will begin to perceive crypto-currencies as a given – it’s only a matter of time.

Around the crypto-currency for six and a half years of their existence formed a whole mythology. It includes the mysterious creator Bitkoyna Satoshi Nakamoto, a historical pizza whose value at the current rate is quite comparable to that of a small country, a giant leap and the subsequent drop in Bitcoin’s rate, the collapse of the infamous Mt.Gox stock exchange, the multimillion thefts, and the equally large losses of bitcoynes stored on discarded hard disks. Any subculture includes such cases, but not they form a story. In this first part, we will recall the real history of crypto currency since the day Bitcoyne was created before the crypto, which began in 2013.

2009-2010 – the birth of Bitcoin

Bitcoin 0.1 was released on January 9, 2009. Versions from 0.1.0 to 0.1.5 were supported only by Windows 2000, Windows NT and Windows XP. Soon after the first release, Satoshi started to bring the client to his senses. He fixed several small network errors and the communication protocol of the nodes and, in collaboration with several other developers, made the client more user-friendly.

Almost a year later, in December 2009, Bitcoin 0.2 was released, which supported Linux. The community began to take a more active part in the development of Bitcoin. In addition, this release took advantage of multi-thread processing to generate blocks (until then only one thread was used). This significantly increased the efficiency of mining on multi-core processors, such as Intel Core Duo or Quad. Another important achievement was the development of the JSON RPC API, which allowed third-party services to interact with Bitcoin and the network underlying it.

During this period Bitcoin was known only to a very small group of its developers and early users. In November 2009, a forum appeared at bitcoin.org, which later turned into Bitcointalk. This caused the growth of Bitkoyn’s popularity: the community began to be replenished with new members who began to offer new ideas and create groups for their implementation.

Together with enthusiastic responses, Bitkoyne received many critical reviews. For example, as a result of the analysis of the principles of its work, several defects were found in it. Around the same time, the idea of ​​commissions for transactions was introduced, and people began to discuss the possibility of tracking coins.

In the summer of 2010 Bitkoyn 0.3 was released. The number of its users grew, and with it the complexity of mining also grew. Then there were proposals for more efficient use of computer resources for mining – for this began to use graphics processors graphics cards. User ArtForz created on the basis of OpenGL hash-farm of GPU and generated its first bitco-block.

On August 6, 2010, a serious vulnerability was detected in the Bitcoin protocol: transactions were not properly checked before being added to the block, which allowed to circumvent the economic limitations of the protocol and create an unlimited number of bitcops. On August 15, this vulnerability was attacked: in one of the transactions, more than 184 billion bitcoins were generated, which were sent to two addresses. Within a few hours, this transaction was tracked and removed from the lock-up, after which the error was corrected and the network was transferred to an updated version of the bitco-protocol. This is the only serious vulnerability in the history of Bitcoin, which realistically managed to use hackers.