By Natalie Lord
As cryptography went from being a simplified communication to a more complex one, it became more prevalent in the financial arena, with a specific term “financial cryptography” created. The term “financial cryptography” is used for applications in which financial loss could result from subversion of the message system.
Financial cryptography differs from traditional cryptography in that it has been used in the main part for military and diplomatic purposes. It incorporates the algorithms and mechanisms needed to protect financial transfers, further to the creation of new forms of money and has a broad scope of application.
Dr David Chaum, an American computer scientist and cryptographer, was a key figure in the integration of cryptography into the financial sphere. He invented the “blind signature” which is a special form of a cryptographic signature that allowed virtual coins to be signed without the signer seeing the actual coin. It enabled a form of digital token money that couldn’t be traced. This form is sometimes known as digital currency.
Digital currency is a type of currency that’s available in digital form as opposed to physical like banknotes and coins. Its properties are similar to the physical form but enables instantaneous transactions and borderless transfer-of-ownership. Some examples of digital currency include cryptocurrencies, virtual currencies and central bank issued money, including digital base money. These currencies operate in the same way as traditional money to purchase physical goods and services.
Coca-Cola was one of the first companies to encourage the use of virtual currency by allowing people to buy its drinks from vending machines using mobile payments back in 1997. PayPal came along in 1998, followed by other systems, many of which were plagued by problems or scandal.
In 2008, Bitcoin was introduced, marking the start of digital currencies. To date it remains the most widely used and accepted digital currency. Bitcoin and alternative cryptocurrencies are based on cryptographic algorithms which is why although virtual currencies they are referred to as cryptocurrencies.
Phillip Lord, Chief Revenue Officer of Kryptos-X, agrees: “The arrival of Bitcoin and other cryptocurrencies generated the need for a digital exchange. This is where Kryptos-X comes in.”
Tony Mackay, Founder and CEO of Kryptos-X says the launch of a digital marketplace like Kryptos-X will bring a significant change to the financial markets, not dissimilar to the move from floor-based trading to electronic trading.
“What we are trying to do with Kryptos-X is to bring the benefits of cryptocurrency technology to all markets. This will make them more accessible to everyone,” he says.
Kryptos-X is a digital asset market platform which allows consumers and institutions to buy and sell digital assets and currencies including Bitcoin, Bitcoin Cash, Ethereum, Ripple and Litecoin. Its aim is to bridge the technology-based world of crypto and digital assets, and the finance-based world of established, large-scale institutional investors and traders.