The Cypherpunks: The group that sparked a crypto revolution

‍The Cypherpunks, pioneers of the crypto anarchy movement, played an instrumental role in laying the foundation for the use of cryptography-enabled revolutionary digital technologies, including cryptocurrency. 

The Cypherpunks: The group that sparked a crypto revolution
Article by
Michael Naftaliev
Date Published
November 23, 2023

The Cypherpunks, pioneers of the crypto anarchy movement, played an instrumental role in laying the foundation for the use of cryptography-enabled revolutionary digital technologies, including cryptocurrency.  While the discussions within the group carried significant weight and left an enduring impact, the name's playful origin was a humorous fusion of the words "cipher",  a method or algorithm used to encrypt and decrypt data, and "cyberpunk," a genre of science fiction emerging in the 1980s. The name is credited to author, civil rights advocate, and programmer, Jude Milhon. Today, the term refers to individuals who advocate for the use of strong cryptography and privacy-enhancing technologies as a route to social and political change. 

Before the 1970s, cryptography was predominantly employed by military and intelligence organizations. It was during this period that Whitfield Diffie and Martin Hellman pioneered the concept of secure and private online communication with the development of public-key cryptography, notably the RSA encryption algorithm. The foundation of Cypherpunk ideology can largely be attributed to the work of cryptographer David Chaum in the 1980s. Chaum explored groundbreaking concepts such as anonymous communication, digital cash, and the development of foundational privacy-enhancing technologies, including the creation of blind signature systems.

In late 1992, a diverse group of enthusiasts and visionaries, including Eric Hughes, Timothy May, and John Gilmore, converged to form a small but passionate collective. This group consisted of scholars, mathematicians, computer scientists, engineers, and like-minded individuals. Their monthly meetings in the San Francisco Bay Area is where they refined a shared vision crystallized in Eric Hughes' 1993 publication, "A Cypherpunk's Manifesto." The document emphasized the indispensability of privacy in the digital age, challenging the assumption that governments or large organizations would willingly grant it. Instead, it championed the idea that individuals must actively protect their privacy, with the Cypherpunks ready to craft the necessary code.

“The people in this room hope for a world where an individual's informational footprints—everything from an opinion on abortion to the medical record of an actual abortion—can be traced only if the individual involved chooses to reveal them; a world where coherent messages shoot around the globe by network and microwave, but intruders and feds trying to pluck them out of the vapor find only gibberish; a world where the tools of prying are transformed into the instruments of privacy. There is only one way this vision will materialize, and that is by widespread use of cryptography.” - Eric Hughes, 1993

The Cypherpunk mailing list, initiated in 1992 and amassing 700 subscribers by the mid 90s, played a central role in these discussions. It provided fertile ground for rigorous debates on the public policy implications of cryptography, spanning mathematics, cryptography, computer science, and profound political and philosophical discourse. The group used a system of distributed nodes to ensure the mailing list’s resilience years before years before Bitcoin implemented similar principles in its network. In early 1997, Jim Choate and Igor Chudov introduced the Cypherpunks Distributed Remailer, a decentralized network of mailing list nodes designed to mitigate vulnerabilities inherent in centralized architectures.

Notable figures like Marc Andreessen, Julian Assange, Adam Back, Bram Cohen, Hal Finney, and the enigmatic Satoshi Nakamoto were just some who actively participated in the Cypherpunk mailing list. Their discussions spawned influential projects like Bitcoin and WikiLeaks and the rise of decentralized autonomous organizations (DAOs). Bram Cohen went on to found BitTorrent, while Marc Andreessen founded Netscape, a popular web browser during the early days of the internet, before establishing the highly successful tech venture capital firm, Andreessen Horowitz (A16Z).

Despite the groundbreaking concepts, experiments and influential movements that emerged from the Cypherpunks mailing list, such as smart contracts, to name one of many, the productivity of the Cypherpunks movement was often hindered by internal disagreements and diverging viewpoints among its members. These disputes ranged from debates over the prioritization of privacy features to fundamental differences in political ideology. Such disagreements, at times, led to fragmented efforts and slowed progress within the movement, as finding a consensus on key issues proved challenging, ultimately leading to a loss of momentum and cohesion within the movement.

In the current landscape of applied cryptography and blockchain technology, discussions on privacy, security and decentralization of traditional systems among communities of enthusiasts, developers, and a wide variety of other stakeholders have evolved significantly from the early days of the Cypherpunk movement. Blockchain technology, with its features of decentralization, transparency, and cryptographic security, can support crypto-anarchic ideals when applied in certain contexts, such as in decentralized cryptocurrencies or autonomous smart contract platforms. DAOs give opportunities for communities to experiment with novel protocols and members to come to consensus on proposed systemic improvements spanning many industries as they propose and vote on various initiatives, including funding proposals, protocol upgrades, and strategic directions. Participants have harnessed the power of decentralized governance systems, on-chain voting mechanisms, and open public forums. As a result, there is now a means for effective collaboration and efficient realization of ideas, together with control systems for the allocation of resources among distributed groups of value-sharing legal and natural persons. On-chain governance models serve as prominent examples of how blockchain communities are taking an accountable, collective and inclusive approach to shape the future of decentralized ecosystems. We’ve come a long way, and there is work yet to be done.


On Thursdays, we invite you to be a part of our journey through the pages of blockchain history. Our Throwback Thursday series is dedicated to shining a light on the creative minds and revolutionary concepts that have shaped our digital world. We'll uncover the remarkable ideas, celebrate the successes, and learn from the failures that have collectively defined our modern digital landscape.

Part 1- 1978 - Crypto Roots and Merkle Trees

Part 2- 1982 not 1984 - Blind Signature's and Chaum's Legacy