Missed This Midnight Theory Drop? Let’s Go Back to 1995！

Important Note: This entire narrative is a fictional exploration of an alternate history, imagining a world where digital currencies were developed in the 1990s. The NetToken referenced here is a made-up cryptocurrency, created for the purposes of this alternate historical scenario. The idea of NetToken is used to explore how a digital currency might have emerged in the 1990s, well before the rise of Bitcoin.
By the mid-1990s, the world was on the brink of something extraordinary. Windows 95 had just launched, bringing with it the iconic Start menu and a user-friendly interface that opened up the internet to millions. Websites were simple—text, links, and occasionally a grainy image—but they held the promise of a connected world. Emails crossed continents in seconds, while dial-up modems screeched and whined, signaling the arrival of a new digital era. The future was chaotic, noisy, and full of potential—but it was unimaginable at the time that money could one day flow through these very connections. Netscape Navigator, released in 1994, had become the browser of choice, offering ordinary users a glimpse of the future. It displayed both text and images on the same page, introduced innovations like bookmarks and the back button, and pioneered early efforts at secure browsing with HTTPS—although, at that time, secure online communication and encryption protocols were still in their infancy. These early steps laid the foundation for trust in online commerce, but full-scale adoption of encrypted transactions and secure websites was still years away.
In the 90s, the internet wasn’t just a tool—it was an experience. Netscape acted as the gatekeeper, the portal to a vast and often chaotic digital frontier. But no one imagined that one day, through this very window, money itself could flow.
The idea of a digital currency—money independent of banks and governments—was still beyond reach. However, the technology to make it a reality was already in development. David Chaum, a pioneer in cryptographic research, had already introduced the concept of eCash in the early 1990s. eCash demonstrated that digital money could exist but still relied on central authorities for validation and security. This was an essential first step toward imagining decentralized solutions. Meanwhile, Nick Szabo, another cryptographic pioneer, was laying the groundwork for what would later become Bitcoin. His bit gold, introduced in 1998, was one of the first systems to show that digital money could exist independently of central authorities. Szabo’s work on smart contracts and cryptographic proof helped lay the intellectual groundwork for Bitcoin and similar decentralized digital currencies, which would later redefine how we understand money.
While eCash showed that digital currency was possible, the technological infrastructure of the mid-90s was not ready for fully decentralized systems. The internet, still reliant on dial-up modems and rudimentary networks, lacked the speed and security needed for real-time financial transactions. The introduction of DSL (Digital Subscriber Line) technology in 1995 was a crucial turning point. DSL offered much faster speeds—ranging from 128 Kbps to 1-3 Mbps—compared to the 56 Kbps limitations of dial-up. In areas where it was available, DSL improved internet reliability and speed, which would have greatly facilitated digital transactions. This shift towards faster, more reliable internet connectivity would have made digital currency systems more feasible and sustainable, paving the way for online financial transactions in the future.
However, the development of centralized digital payment systems was already underway. Systems like CyberCash (1994) and Mondex (1990) were built on a central authority model. These early attempts at digital money were a far cry from the decentralization envisioned by Szabo and others, but they demonstrated that the internet could handle transactions and that digital money could function within the framework of traditional financial institutions. One of the first attempts at facilitating online payments was First Virtual, launched in 1994. This early digital payment service allowed users to make secure online purchases by verifying transactions with a personal identification number (PIN), bridging the gap between traditional banking and emerging internet commerce. These systems laid the groundwork for the secure financial transactions that would later support cryptocurrencies, even though they were still dependent on banks and centralized control.
A significant turning point came with the realization that the future of digital money could not rely on central authorities alone. The idea of a decentralized currency, where no single entity could control the system, emerged as a solution to the inherent flaws of centralization. Here, Nick Szabo’s bit gold played a pivotal role. Although it was never fully realized as a working system, it was one of the first concepts to suggest a blockchain-like structure, where transactions would be validated by participants in the network, not a central authority. This decentralized model was essential for the development of Bitcoin, which would later realize Szabo’s vision.
As digital money systems continued to evolve, so did the need for trust. By 1995, SSL (Secure Sockets Layer) technology was introduced to encrypt data transmissions and secure online communications. However, it wasn’t until the late 90s that SSL became widely adopted, providing the foundation for trust in digital transactions. SSL encryption became a crucial component for securing online purchases, banking, and later, the exchange of cryptocurrencies. This development helped foster the trust necessary for online financial transactions and, in turn, set the stage for the rise of decentralized currencies like Bitcoin. For NetToken to have gained any traction, it would have needed to build similar trust, relying on the internet's evolving security infrastructure. As SSL technology became more widespread, the groundwork for secure and trusted digital currency transactions was solidified, making NetToken’s adoption by early users increasingly plausible.
However, one of the most significant challenges for any early digital currency, including NetToken, would have been assigning value to the token. Without an established marketplace or exchange, a digital currency’s value could only be shaped by the adoption and consensus of its users. Much like eCash, NetToken could have found initial value in niche communities of early adopters—those familiar with the technology and its potential. Digital currencies have always relied on community trust and usage to assign value, and NetToken could have followed a similar path, growing in value as its user base expanded. However, the lack of a structured marketplace for digital currencies in the 90s would have made price discovery a slow and difficult process.
Marketing NetToken in the 90s would also have been a unique challenge. The traditional methods—TV ads, print campaigns—would likely have fallen flat for a product as abstract and technological as digital currency. Instead, NetToken would have needed to rely on the power of online communities, where tech enthusiasts and early adopters gathered to share new ideas. IRC (Internet Relay Chat), which started in 1988, Usenet (1980), and other early online forums could have been instrumental in spreading the word about NetToken. These communities were already familiar with digital goods and software exchanges, and a decentralized currency could have fit naturally into these networks, gaining traction among the tech-savvy.
Ultimately, NetToken’s success or failure would have been shaped by the technological and infrastructural limitations of its time. Without widespread access to high-speed internet, reliable security measures, and a trustworthy online marketplace, the idea of a fully decentralized currency would have struggled to gain the critical mass necessary for widespread adoption. But even in its failure, NetToken would have laid the foundation for future digital currencies.
The groundwork for what would become Bitcoin was already being laid by the mid-90s. While NetToken may not have had the infrastructure or the timing to succeed, its conceptual foundations were ahead of their time. In the years that followed, Bitcoin would take many of the ideas that were floating around in the 90s—decentralization, cryptographic proof, digital trust—and bring them to fruition, creating a new paradigm for money and value in the digital age.
For technology to succeed, it must meet the moment. In the 90s, NetToken’s moment was a missed call—the future knocking, unheard and unrecognized. Sometimes, the future doesn’t burst through the door; it waits patiently on the porch until we’re ready to let it in.