Learn more about the cypherpunks, a group of computer scientists and privacy activists, who inspired the growth of cryptocurrencies and fight for digital freedom in today's digital world.
- The cypherpunks were a group of computer scientists, cryptography enthusiasts, and political activists who emerged in the late 1980s and early 1990s.
- Their goal was to use cryptography to protect individual privacy and liberty in an increasingly online world.
- They believed that the internet should be freely open, without corporate or government intervention, surveillance, and censorship.
- The cypherpunks made significant contributions to driving the development of public key encryption technology, anonymous remailers, and mix networks that have since been used in the development of anonymity networks like Tor.
- Their emphasis on cryptography, privacy and decentralization inspired the growth of cryptocurrencies like Bitcoin.
, a group of computer scientists and privacy activists, emerged in the late 1980s and early 1990s. Back then, the internet was still in its infancy and the potential for online surveillance was becoming increasingly apparent.
The cypherpunks were a movement of computer scientists, cryptography enthusiasts and political activists. The cypherpunk mailing list was created in the early 1990s by three San Francisco Bay Area computer scientists. They were united in their belief that as the world moved increasingly online, the government and other powerful entities would eventually monitor, censor and control the internet. To prevent this dystopian future, they wanted to use cryptography
to protect individual privacy and liberty.
At the core of the cypherpunks' philosophy is the belief that the internet must be freely open, without corporate or government intervention, surveillance and censorship. They saw cyberspace as something that society should share and own equally, not a domain that companies and governments could exploit for private gain and objectives.
The cypherpunks grew out of a community that was fostering the potential of computer networking. Early projects like the ARPANET and Internet Relay Chat (IRC) proved the vast potential for free and open communication that computer technology made possible. However, even the earliest pioneers of this new digital frontier foresaw potential threats to the freedom of the internet. The cypherpunks voiced these concerns and furthered the idea of using cyberspace for the benefit of all rather than for the few.
Their seminal text was Eric Hughes' 1993 manifesto
. It declared:
"Cypherpunks write code. We know that someone has to write software to defend privacy, and we're going to write it."
Hughes' document summarized the cypherpunks' concerns and how they intended to tackle them. Their approach was by using cryptographic techniques to secure communications and financial transactions in the digital world.
The cypherpunks’ goal was to develop cryptographic-based systems to protect personal privacy, censorship-resistant communications, and a commerce and financial system separate from government interference. They made significant contributions to driving the development of public key encryption technology, which allowed secure and private messaging and data transfer over the internet.
One of the most significant tools developed by the cypherpunks was PGP
(Pretty Good Privacy). Created by Phil Zimmerman in 1991, PGP provided an easy-to-use email encryption
software that allowed users to communicate privately over insecure networks. PGP used public key
cryptography and a web of trust to verify the identity of the sender to ensure messages could not be intercepted, read or modified by unauthorized parties.
The cypherpunks also worked on developing mix networks, which used a series of encrypted servers to route messages without revealing their origin or destination. A mix network makes it impossible for anyone, including the server operators, to decipher the content of the messages being sent. Mix networks have since been used in the development of anonymity networks like Tor
, which allow users to browse the internet without revealing their location or identity.
Another contribution by the cypherpunks was the creation of anonymous remailers. Anonymous remailers allowed users to send email messages without revealing the identity of the sender or recipient. The first anonymous remailer, called Mixmaster, was released in 1995. It used a series of servers to break the link between messages and their origin and was one of the first tools that allowed for anonymous communication across the internet.
Overall, the cypherpunks had a significant impact on the development of privacy-focused technologies. Their contributions, such as PGP, mix networks, anonymous remailers and secure operating systems, played a crucial role in protecting privacy online and laying the groundwork for the development of anonymity networks, cryptocurrencies, and other privacy-enhancing technologies.
In many regards, Bitcoin
can be considered the prototypical “cypherpunk coin.” It has the primary characteristics sought by the cypherpunks in a currency; it's decentralized, censorship-resistant, anonymous when needed, and virtually immune to government regulation. Bitcoins are created by a decentralized mathematical consensus of miners and are sent directly peer-to-peer, allowing for a level of decentralization and security not possible with traditional financial institutions. Additionally, Bitcoin transactions are often made pseudonymously
or even anonymously
, allowing for greater privacy and protection from censorship.
, the creator of Bitcoin, was notably influenced by the cypherpunks. The first known reference to Bitcoin was on the Cypherpunks mailing list in November 2008. It was there that someone mentioned a new “electronic cash system” called Bitcoin and invited others to help “make it functional.” Satoshi Nakamoto
envisioned Bitcoin as a way of achieving the cypherpunks’ ideal of a distributed financial system with minimal intermediaries that could support a non-coercive, decentralized political and financial order.
Another founding member of the Cypherpunks was David Chaum
, who created the eCash cryptocurrency and mix network, which would later inspire Bitcoin. Chaum’s early research in the 1980s laid the mathematical foundation of privacy-enhancing techniques and was an inspiration for the development of cryptocurrencies. Other notable members of the cypherpunks include Adam Back
, who invented the Hashcash proof-of-work
algorithm, which was later used as a building block in Bitcoin mining
. Hal Finney
, an early member of the Cypherpunks, was one of the first to reply to Satoshi, and worked closely with the Bitcoin creator. Another infamous cypherpunk, Craig Wright
, claimed to be Satoshi Nakamoto himself on numerous occasions. Nick Szabo
, a computer scientist and cypherpunk, created Bit Gold, considered by many to be a predecessor to Bitcoin. Wei Dai
, who theorized b-money and was cited on the Bitcoin whitepaper, was also a cypherpunk. Finally, Zooko Wilcox-O’Hearn
, who was involved in Bitcoin in the early days and later created Zcash, was also a member.
Since the early days of the internet, and the first crypto war
, cypherpunks' initial concerns about surveillance and centralization of the internet are being amplified in today's digital world — in what some deem as the second crypto war
. The cypherpunks advocated for a future in which users of the internet would be in control of their digital environment.
The movement's emphasis on cryptography, privacy and decentralization, which originated in the concerns about the integrity of digital communications, would later inspire the growth of cryptocurrencies that we are experiencing today. Bitcoin was arguably the first cryptocurrency that embodied the cypherpunks' ideals — however that is coming under siege in what could be the third crypto war
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.