Cypherpunks: A Movement for Privacy

In the world of cryptocurrencies, the Cypherpunk movement is often mentioned when discussing the origins of Bitcoin (BTC). But why? What role did it play in the creation of the pioneer of cryptocurrencies? And, most importantly, what does it entail exactly? Let’s explore some answers together.

What is the Cypherpunk movement?

The term “Cypherpunk” is a blend of “cypher,” meaning “encryption,” and “punk,” which refers to rebellion. It was coined by developer and activist Jude Milhon in 1992, inspired by the term “cyberpunk,” a science fiction genre characterized by immersive worlds and reformist protagonists.

The Cypherpunk movement consists of thinkers, developers, researchers, and activists dedicated to preserving freedom of expression and privacy through cryptography. Cypherpunks share an ideology blending crypto-anarchy and libertarianism.

Crypto-anarchy advocates anonymizing communications in cyberspace to limit governmental control over information. Libertarianism advocates for a self-governing society that respects individual liberties, including free speech, free trade, free movement, respect for private property, and the abolition of taxes, among others.

At its core, the Cypherpunk movement seeks to reinvent social, economic, and political systems by developing enduring technological solutions based on cryptography.

Additionally, in recent decades, with organizations like WikiLeaks, Cypherpunks have taken on the role of whistleblowers. Their aim is to expose abusive actions by governments, influential individuals, and private enterprises to the public.

What are their origins?

Abusive data collection and restrictions on cryptographic use

In the 1980s, computer advancements were remarkable. The internet was emerging, and computers were becoming more commonplace in American households. However, concerns arose about how these tools might be exploited by governments.

At that time, some academics and activists feared that the U.S. government would use the new communication network to intercept and collect confidential data. They were concerned that computerization could threaten internet users’ privacy and the protection of their personal information, potentially leading to restrictions on free speech.

Moreover, strong encryption was considered a munition at the time. Consequently, U.S. regulations prohibited its export and restricted civilian use on the web.

In 1985, computer scientist and cryptographer David Chaum published “Security Without Identification: Transaction Systems to Make Big Brother Obsolete.” Among other things, he discussed concerns about the internet, particularly regarding the loss of control over confidential information. Chaum predicted that computers would use transaction data to deduce consumer habits in the future. To counter this, he advocated for a decentralized system based on cryptography to ensure user privacy.

The creation of the mailing list

During this period, Chaum’s ideas deeply influenced Timothy May, an electronics engineer and former employee of Intel. Starting in 1988, May began promoting these ideas through his “Crypto Anarchist Manifesto,” distributing it as brochures at conferences and other themed events.

In September 1992, Timothy May, Eric Hughes, and John Gilmore formed a discussion group to enable techno-anarchists to exchange ideas on various topics.

Their interests included cryptography, mathematics, computer science, politics, philosophy, currency, etc. Despite occasional debates and differing opinions, community members shared a commitment to privacy and individual freedoms.

Naturally, this led them to explore ways to circumvent regulatory limits on strong encryption and use cryptography to thwart state surveillance of internet communications.

Over time, the mailing list attracted more participants, forming a highly active community. By 1994, it had 700 subscribers, growing to nearly 2,000 by 1997. During the peak of the Cypherpunk forum’s activity (December 1996 – March 1999), an average of 30 messages were sent per day.

Throughout this period, Cypherpunks could freely communicate about their projects using cryptography tools like PGP, developed in 1991 by computer scientist and cryptographer Phil Zimmerman, which encrypted emails.

What is the Cypherpunk Manifesto?

On March 9, 1993, Eric Hughes published “A Cypherpunk’s Manifesto.” This document serves and continues to serve as a reference manual for the ideological thinking that drives the Cypherpunk movement.

“Privacy is necessary for an open society in the electronic age. Privacy is not secrecy. A private matter is something one doesn’t want the whole world to know, but a secret matter is something one doesn’t want anyone to know. Privacy is the power to selectively reveal oneself to the world,” it reads.

In his manifesto, Hughes argues that privacy entails the ability to choose which information to share and with whom.

He contends that strong cryptography should not be solely controlled by the military, as it allows for a deep expression of the desire for privacy.

Moreover, Hughes calls for reclaiming control over personal data. He proposes a dynamic approach aimed at fostering a variety of new technologies to support Cypherpunk causes. Ultimately, the goal is to create a fully autonomous virtual ecosystem free from centralized platforms. Like his predecessors, he advocates for the creation of anonymous systems for transactions and communications, digital signatures, and even a decentralized digital currency.

“We must defend our own privacy if we expect to have any. (…) We must come together and create systems which allow anonymous transactions. (…) Past technological protections did not provide strong intimacy, but electronic technologies allow it,” he writes in his narrative.

Additionally, Hughes emphasizes the need to create applications that are both free and distributed to facilitate achieving these goals.

What is the connection between Cypherpunk and cryptocurrencies?

As we can see, the ideologues behind the Cypherpunk movement had dreamed for decades of an autonomous digital currency that would allow them to completely detach from existing social organization.

Within the community, several scientists attempted to implement it. However, they faced technological and sociocultural challenges that hindered their efforts in this direction. Nevertheless, these various attempts ultimately led to the emergence of cryptocurrencies.

• In 1990, David Chaum launched Digicash, an anonymous electronic currency system that allowed people to withdraw money from their bank using an application and spend it untraceably through encryption keys.
• In 1997, Adam Back invented HashCash, a proof-of-work mechanism designed to combat spam on internet forums.
• In 1998, Wei Dai published an essay introducing b-money, an anonymous and distributed electronic cash system. This platform already incorporated fundamental blockchain ideas: proof of work, transparent ledger, reward distribution, collective accounting, transaction authentication, etc.
• In 2004, building on the HashCash algorithm, Hal Finney created a reusable proof-of-work system (RPOW).
• In 2005, Nick Szabo launched BitGold. Considered one of Bitcoin’s precursors, BitGold incentivized validators to use their computing power to solve complex mathematical puzzles and earn rewards. Moreover, its market value depended on the amount of resources (infrastructure, electricity, etc.) deployed for its production. Today, this parameter partly influences the price of certain digital assets.
• In 2008, Satoshi Nakamoto introduced Bitcoin, drawing inspiration from HashCash and b-money, among other sources. Indeed, based on these writings, it appears that Satoshi was a member of the Cypherpunk movement, or at least shared its ideals.

Which Cypherpunks made history?

Cypherpunks were committed to developing technologies to prevent state incursions into citizens’ privacy.

Over time, they developed a variety of solutions used in everyday life. Among the most prolific outside of those mentioned earlier are:

• Tim Berners-Lee, the creator of the internet: An advocate for decentralization and a staunch supporter of privacy, Berners-Lee supported the use of cryptography to encrypt emails and web traffic.
• Julian Assange: Founder of WikiLeaks, a nonprofit organization founded in 2006 that exposes certain social and political realities unknown to the general public to ensure global transparency.
• Ben Laurie: Created the SSL encryption protocol to secure connections to web servers (1998) during the rise of the internet.
• Tatu Ylönen: The brain behind the SSH secure remote access protocol.
• Jacob Appelbaum: One of the key developers of the TOR anonymous web browser.
• Bram Cohen: In 2001, he created the BitTorrent peer-to-peer file-sharing protocol.
• Shafi Goldwasser: Known for her work in cryptography, including research into generating highly secure random numbers. This contributed to the development of advanced encryption standards (AES, ECDSA, …).
• Richard Stallman: Founded the Free Software Foundation. This association promotes the distribution of open-source software to enable anyone to freely access their source code.
• Ron Rivest: Alongside Adi Shamir and Len Adleman, he invented the RSA public-key encryption system. He also originated the RC2, RC4, and RC5 symmetric-key algorithms and co-created RC6.

Conclusion

Long before the movement was formalized, the principles underlying Cypherpunks were championed by several specialists. While the pioneers of this ideology proposed solutions, newer generations have endeavored to implement them in reality.

Today, as we can see, the impact of Cypherpunks on privacy and freedom issues is immense. The same goes for Bitcoin, whose logo even attests to the Cypherpunk movement’s influence on it. But the battle is far from over. The evolution of technologies is bringing forth new threats to confidential data. Therefore, the community must continue to expand and escalate efforts in developing preventive solutions.