A currency according to wikipedia comes from the latin word, “currens” which means “in circulation” in English. In the most specific word currency means money in any form when in actual use or in circulation as means of exchange. Throughout the ages there has been all kinds of things used as medium of exchange.
Before money was used, people used barter which is a system where people exchanged goods and/or services they had with the goods or services that they needed/wanted. Now because of barter’s inefficiencies, the idea of a standard medium of exchange began to emerge. Cowry shells, grains, metals, etc., began to be used as currency. Metals like gold and silver eventually emerged because of their durability but one of the flaws was the safety of storage especially when travelling from one location to the other. There were criminals and bandits that robbed people of their precious metals.
Eventually receipts of the amount of metals that were deposited with a third party began to be used as an exchange. These receipts represented the amount of these precious metals that was kept by wholesaler shops. Since people did not have to carry the actual metals, this was a lot safer means to transact. People will exchange these receipts for goods and services and they will be able to be turned in for the metals. Eventually these turned to promissory notes or bank notes. These bank notes were guaranteed by the deposits of the precious metals. These wholesalers that kept these deposits suddenly realized that as long as everyone did not claim the metals at the same time, they could issue more of these promissory/bank notes. This was how the fractional reserve system of banking got invented though that was not what it was called at the time. Eventually when people realized that there were more of these notes showing up, this led to the inflation or devaluing of these promissory/bank notes. Most people demanded their metals and the last people to figure out this Ponzi scheme were left holding the bag or you will say the bag of “worthless promissory/bank notes.”
Centralized government bodies called central banks adopted this same system. At first, this was backed by gold since this was the most stable means of exchange for most metals. As time progressed, the backing of the paper money, restricted how much money these central banks could print and eventually all currencies were backed by nothing except the government and mostly by decree or force. This was how fiat came to play.
Fast forward to this day and there have been so many currency crises caused by the non-stop printing of money. The United States has been the worst of this printing though every nation has participated in this scheme. Since the dollar is the world reserve currency, it has been spared from kind of inflation that has happened in countries like Zimbabwe and presently Venezuela, where the inflation rate runs in the millions of percentages.
Anyway, a guy or group of people saw how the printing of money was happening in the last 2008 global recession and the Bitcoin white paper was released where people can be able to exchange value without third parties or governmental bodies. This was groundbreaking! In the genesis transaction of the guy or group of people called Satoshi Nakamoto, was embedded, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This message was the reason of the creation of Bitcoin. Initially, this was accepted by geeks and people that were involved in the dark web but this eventually went main stream.
The demand for this new form of money grew so much that scaling this currency became contentious and eventually led to many forks of the Bitcoin code since it was open source and anybody can use the source code to spin off a fork of the code. One of the things that also came up with this demand was the amount of fees for the transactions. Initially Satoshi’s vision was for this new form of money to be electronic cash so that people could transact with very low fees with good speed and without any barriers. At the height of the cryptocurrency bubble, fees were outrageous and transactions took days to happen. Personally, at that period, I converted my Bitcoin to Ethereum or Litecoin and then sent my transactions because of the ethereaum transaction fees were lower. Eventually the Ethereum fees skyrocketed because of this new app called cryptokitties that congested the network. I stopped using Ethereum and only used Litecoin for most of my transactions.
Block One, the creators of EOSIO sofware already saw this and envisioned free and fast transactions and started the creation of the EOSIO software months before this big bubble. When the blockchain went live, the free and fast transactions took effect but people that did not hold their private keys quickly found out that they had to pay to get EOS accounts and there were other issues but the free and fast transactions is still the greatest aspect of EOS today. Some guys that helped launch EOS decided to fork the EOSIO software and put certain things in place to deal with some of the issues and came up with Telos. One of those things will be providing free Telos accounts.
When the Telos network goes live, anybody will be able to get free accounts and also be able to have fast and free transactions just as if you were transacting with physical cash to anybody. Think about it; when you are giving physical cash to anybody, do you have to pay any fees for that transaction? No! This is what Telos will be. A form of currency just like physical cash but using the power of cryptography and the blockchain. I am pretty excited in the future of this new form of money!
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