Ines AissaniIt is now accepted that cypherpunks represent the shadow innovators who are behind the creation of Bitcoin.
You would be wrong to think that Bitcoin was created, as if by magic, following a brilliant idea from the inventor Satoshi Nakamoto. As with many inventions and technological innovations, there is a long research process behind it.
This is exactly what happened with Bitcoin. In the very foundations of Bitcoin technology, we find the thoughts of the cypherpunks.
If today, cryptocurrency and bitcoin have entered our practices, the Cypherpunk movement has something to do with it.
We will then focus in this article on the philosophical and cultural origin of Bitcoin. Who are the people who supported and thought of such a service? What was their goal? Why does Bitcoin still retain traces of the cypherpunk philosophy in its DNA today?
The origin of cypherpunks
We cannot exactly date the origin of the cypherpunk movement. However, we can say that its roots date back to 1970 when the American government published the “Data Encryption Standard” (DES). In fact, cryptographic studies – at that time – was a technological field operated primarily by the military. We were carrying out embryonic studies on the subject between 1970 and 1990.
With the creation of the internet, the cryptographic field is growing.
A few years later, in 1992, three friends Eric Hughes, Timothy May and John Gilmore came together for the first time to give birth to the cypherpunk movement.
Eric Hughes was a professor of mathematics at UC Berkeley. Timothy May worked for the Intel company. Gilmore was a computer scientist and worked for Sun Microsystems (now Oracle).
Originally, the group met monthly to talk about cryptography. Very quickly, Eric Hughes created a newsletter where everyone could subscribe. Thimothy May published at the same time “The Crypto Anarchist Manifesto“. It subsequently became the basis of an ideological reference to the cypherpunk movement.
A community that grew quickly
The movement is starting to attract more and more users. So, the computer programmer and civil rights activist Jude Milhon coined the term cypherpunk. It is at the origin of the popularity of cyberculture and its spread around the world.
She has notably collaborated with cult cyberculture magazines, namely Wired and Red Hirring.
Jude Milhon wanted to make a distinction with the movement already known at the time of CyberPunk. Even if the two movements are similar – philosophically – the big difference lies in the use of cryptography, at the center of cypherpunks. This is why she used the word “cypher” which in English means “encryption”.
The “Cypherpunk Manifesto” by Eric Hughes
Ce document was written and published by Eric Hughes in 1993. It was this document that marked the official beginning of the Cypherpunk movement. The Manifesto recalls that technology must serve the freedom, security and privacy of all users.
The document emphasizes the need to create an anonymous transaction system. This is how user confidentiality can be ensured. This anonymous transaction system would also ensure that people do not have to reveal their identities. All financial transaction systems at that time relied on banks. However, these require identity documents to be able to carry out the slightest transaction.
After this first manifesto, Timoty May published “The Crypto-Anarchist Manifesto” which is a document that further elaborates on the need to use cryptographic technology.
That said, the author makes it clear that not all cypherpunks may adhere to the ideas in the manifesto. It covers the general ideas that drive the community.
His essay will be reproduced in what is called the Cyphernomicon written in the form of an FAQ in which the details of the movement are detailed.
Here is what we can read in the manifesto:
Privacy is necessary for an open society in the electronic age. Privacy is no secret. A private matter is something you don't want the whole world to know, but a secret affair is something you don't want anyone to know. Privacy is the power to selectively reveal oneself to the world.
The quest to preserve privacy is at the heart of cypherpunks’ concerns.
Here is another excerpt:
We, the Cypherpunks, are dedicated to building anonymous systems. We defend our privacy with cryptography, with anonymous mail transfer systems, with digital signatures and with electronic money.
Furthermore, in The Cyphernomicon, the author also exposes the problems associated with the use of cryptography.
It is overall a reference document which clearly shows the ultimate objective of cypherpunk to protect individuals against mass surveillance.
What are the principles of CypherPunks?
The main values defended by cypherpunks can be listed like this:
- Protection of private life : Cypherpunks believe that privacy is a fundamental and inalienable right of individuals. They defend people's rights to communicate, move and exchange information freely. Cypherpunks seek to protect themselves from mass surveillance.
- Use of cryptography: Cypherpunks argue that the use of cryptography should be required to secure communications, protect data, and provide user anonymity. For them, it is an essential tool to protect the privacy of individuals and counter government surveillance.
- Fight against censorship: Cypherpunks are critical of online censorship practices. They view privacy and freedom of expression as inalienable rights and seek to resist attempts to restrict these rights. It is absolutely necessary to be able to publish important information (WikiLeaks is moving in this direction). For example, helping whistleblowers in authoritarian countries to be able to transmit information.
- Preserve your anonymity : Cypherpunks view anonymity as a protective measure against repression and censorship, while recognizing that it can also be used for illegal purposes. (See the website The Silk Road founded by Ross Ulbricht).
- Decentralization: Decentralizing systems and networks reduces vulnerability to attacks, censorship and authoritarian regimes. This also helps reduce security vulnerabilities specific to centralized systems.
Thus, Bitcoin is open source software which fits perfectly into the cypherpunk value code.
What is the cypherpunks' method of operation?
“Cyperpunk writes codes”, that’s the cypherpunks’ slogan.
Concretely, a cypherpunk acts mainly on the internet. Its weapon and tool is cryptography. In 1997, British cypherpunk Adam Back developed Hashcash. It was an anonymous transaction system to limit cyberattacks.
In 1998, the Chinese computer engineer Wei dai proposed the idea of a “B-money”. This was the first time that there was concrete talk of an anonymous and distributed electronic payment system.
Wei Dai and Adam Back were the first two people contacted directly by Satoshi Nakamoto when Satoshi Nakamoto was working on Bitcoin in 2008. Moreover, the b-miney system is noted as a reference in the Bitcoin white paper.
As a reminder: the smallest fraction of Ether is called Wei to give a nod to Wei Dai. Likewise, the smallest fraction of bitcoin is called “satoshi” in homage to Satoshi Nakamoto.
In 2004, the developer Hal Finney used Hashcash software (developed by Adam Back) to create the first proof-of-work system. Satoshi Nakamoto will use proof of work to develop Bitcoin.
What about Hal Finney, he is known for being the very first recipient of Bitcoin when it went live in 2009.
—>Read Hal Finney’s “Bitcoin and Me” letter.
Thus, the scripts written by cypherpunks are always free and accessible to everyone on the internet. They promote the creation and use of open source softwaree accessible and open to everyone. The idea is that technology can be improved and that everyone must be given the opportunity to improve it. The pursuit of profit is not the goal sought by cypherpunks.
We also note that even today, the blockchain has kept this open-source code system. We can even say that if technology continues to evolve, it is largely because the code is open to everyone.
What is their role in the creation of Bitcoin?
As we have just seen in the previous paragraph, the creation of Bitcoin results from numerous research and experiments. Satoshi Nakamoto did not create Bitcoin, ex nihilo.
One of the pioneers in the development of cryptocurrencies is undoubtedly David Chaum. He is the inventor of numerous cryptographic protocols and has strongly influenced the progress of this science. Thus, he is even considered the father of electronic money.
He formulated the theoretical foundations of cryptographic technology. By developing DigiCash in the 80s, he established the first-ever cryptography-based digital currency protocol.
Certainly, DigiCash was not successful but it provided the basis for future attempts in this area. Moreover, in “The Cyphernomicon”, in chapter 12.12, we clearly see the mention of “Magic Money”. We also see the first problems that this raises.
It took a lot of thought and experimental projects before we succeeded in creating Bitcoin. Likewise, many people believe that the success of Bitcoin can also be explained by the financial crisis of 2008. The banking crisis was such that the only alternative was to create a financial system that was not linked to banks.
Who are the most famous cypherpunks?
By definition, cypherpunks are not “known” to the general public. Yes, they are the champions of privacy…
However, some cypherpunks have gained notoriety and sometimes against their will. This is typically the case for Julian Assange. He is the founder of WikiLeaks and he represents the movement well on his own. Moreover, Julian Assange said he joined the cypherpunk movement in 1993.
In its wake, we find Jacob Appelbaum who was one of the (originally anonymous) developers of Tor. This is software that allows access to the dark web. Jacob Appelbaum has been a spokesperson and defender of WikiLeaks.
Bram Cohen is another famous cypherpunk. He founded the peer-to-peer file sharing platform: BitTorrent. In 2017, he co-founded the Chia network with Chia crypto which is an online file hosting solution.
A priori, Satoshi Nakamoto remains one of the biggest names in Cypherpunk. Even if no one knows his identity, we can assume that he was a member of the movement.
Is the Cypherpunks movement still relevant?
As long as we seek to preserve confidentiality and security, then the cypherpunk movement is still relevant. Besides, did you know that the success of NFTs called “CryptoPunk” are wise nods to the CyperPunk movement?
As long as there is the Internet, there will always be people to defend the rights of individuals. The growing appeal of cryptocurrencies shows that cypherpunks have gained ground. However, we see that the ideological origin of Bitcoin is little known. Some people use bitcoin without even understanding the values and principles that motivated its creation.
Thus, in a interview given to Coindesk (and relayed by Reason), Timothy May declared that seeing what Bitcoin has become today (coveted by States and financial institutions), “Satoshi would vomit”…
To go further and deepen your knowledge about the Cypherpunk movement, here are some resources:
- A documentary video series onhistory of Cypherpunk: The dream of a free and borderless world.
- Read the Coindesk article in English on Timothy's thoughts on today's crypto universe.
- Thimoty May's website: Nakamotoinstitute which makes all the founding documents and texts linked to cypherpunk and the creation of digital currencies available to everyone.
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Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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