The NSA released a paper to the MIT mailing list and the American Law Review in 1996 that appears a twin to Bitcoin, according to the Crypto Coin News yesterday. The release of the ‘How to Make a Mint: the Cryptography of Anonymous Electronic Cash” existed before the 1998 Satoshi Nakamoto white paper to metzdown.com.
The paper listed items essential to make the digital currency for acceptance were: network privacy, secured user identification and what is known today as a blockchain- the validation of the entry on the blockchain released globally. The blockchain eliminated duplication as a theft of the currency, double spending and denial.
In 1996 the algorithm cited for the cryptocurrency was developed in 1993, 18 years prior to the Satoshi Bitcoin algorithm of 2011 used by the Bitcoin Foundation. Electronic currency was cited in 1983 by David Chaum who wrote of ecash. Chaum advocated a currency to bypass government and banks without knowing the identification of the individual transaction owner.
The 1993 paper spoke of coins and tokens, also a predecessor to Satoshi Nakamoto bitcoin description. The question has arisen if Satoshi Nakamoto was an NSA member. The government does publish algorithms for the public use in a stable format. The question asks if the value of bitcoin will remain and be utilized with its blockchain. Blockchain technology synonymous with Bitcoin technology has begun a future of its own, since it can translate too many financial areas, government and legal usage.
Nobel laureate economist Milton Friedman wrote of an electronic currency in the late ‘90s. He stated his belief, “I think that the Internet is going to be one of the major forces for reducing the role of government.” He also noted that it would receive disapproval and fear from the banks and government monetary systems. Friedman considered governments as “collectivism” which were too powerful and far reaching in their power.
Friedman spoke of ecash and stated, “The one thing that’s missing, but will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B, without A knowing B or B knowing A.” He knew that governments would be against this privacy and overriding government control.
While Friedman supported the removal of the Federal Reserve Board he knew that electronic cash would bring both the good and the bad, such as a Silk Road money laundering scheme. Freidman proposed an automatic system that adjusted the money supply. Friedman was an economist prophet with a vision reaching reality in this decade.