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— CH. 1 · INTRODUCTION —

David Chaum

~7 min read · Ch. 1 of 8
8 sections
  • David Lee Chaum, born in 1955, sketched the blueprint for digital privacy long before most people had an email address. In 1982, the same year he finished his doctorate at the University of California, Berkeley, he submitted a dissertation that quietly contained nearly every technical idea behind what would later be called the blockchain. He described how untrusting parties could reach consensus, how that history could be chained in blocks, and how that chain could be stamped immutably in time. He even included the code to run it. The only piece missing from what Satoshi Nakamoto would later publish in the Bitcoin whitepaper was proof of work.

    Before bitcoin was a word, before Tor was a browser, before cryptocurrency was a category, Chaum had already invented the underlying tools. He is called "the father of online anonymity" and "the godfather of cryptocurrency." Those are heavy titles. This documentary asks how one person earned both of them.

  • Chaum was born into a Jewish family in Los Angeles, California, and made his way to Berkeley for graduate school in computer science. His 1982 doctorate was not a narrow technical exercise. The dissertation, titled "Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups," addressed something fundamental: how do you build a system that works correctly even when the people running it do not trust each other?

    That same year, 1982, Chaum did something else that would shape academic cryptography for decades. He founded the International Association for Cryptologic Research, known as the IACR. The organization went on to become the primary body organizing scholarly conferences in cryptography. Chaum then moved into teaching, holding positions at the New York University Graduate School of Business Administration and at the University of California, Santa Barbara. He also built a cryptography research group at CWI, the Dutch National Research Institute for Mathematics and Computer Science, based in Amsterdam. That Amsterdam connection would prove important within the decade.

  • In 1983, Chaum published a paper introducing two intertwined ideas that would define his reputation. The first was a workable scheme for secure digital cash. The second was the cryptographic tool that made it possible: the blind signature.

    A blind signature works by obscuring a message before a signer touches it. The signer puts a valid signature on something without ever seeing its contents. The result can still be verified against the original unblinded message, exactly as any ordinary digital signature can. For digital cash, this matters enormously. Chaum's scheme let a user withdraw digital currency from a bank and spend it without the bank being able to trace the transaction back to that user.

    These ideas became something historians of computing describe as the technical roots of the Cypherpunk movement, which took shape in the late 1980s as a loose community of activists who believed cryptography was a political tool for protecting personal freedom. In 1988, Chaum extended the digital cash concept with colleagues Amos Fiat and Moni Naor, adding a mechanism that allowed transactions to happen offline while still detecting any attempt to spend the same unit of currency twice.

  • In 1990, Chaum founded DigiCash in Amsterdam, the company built to turn his research on electronic cash into a commercial product. Four years later, in 1994, the company sent what is recorded as the first electronic payment. The product, called eCash, was the first digital currency to be issued by a company.

    DigiCash did not survive the decade. In 1998, the company filed for bankruptcy. In 1999, Chaum sold off the remaining assets of DigiCash and ended his direct involvement. The collapse left the question of why a genuine technical breakthrough failed to become a lasting business. Chaum had the ideas ahead of their time; what he could not do was build the commercial infrastructure that would eventually make those ideas work for the mass market. That work would be left to others, who would arrive roughly a decade later.

  • In 1981, a year before his dissertation, Chaum published a paper proposing something he called mix networks. The idea is elegant. A group of senders encrypts their messages and submits each one, along with its intended destination, to a server. That server accumulates a batch, then shuffles and re-encodes the messages before passing them along to another server, which does the same. By the time the messages reach the final server for decryption and delivery, no outside observer can determine which sender produced which message.

    Mix networks became the conceptual ancestor of Tor, the anonymizing web browsing tool. Chaum himself has advocated making every internet router effectively a Tor node. In 1988, he extended this line of thinking with a different approach to anonymous communication, a system called a DC-Net, which is a technical solution to what he named the Dining Cryptographers Problem. DC-Nets later became the foundation for a software tool called Dissent. In 2017, Chaum published a description of a new variant of mix networks, and a real-world implementation called cMix eventually became the data transmission layer for the messaging platform xx messenger.

  • By 1989, Chaum and Hans van Antwerpen introduced a new category of cryptographic tool called undeniable signatures. Unlike standard digital signatures, which anyone can verify, an undeniable signature requires the participation of the original signer to confirm its validity. A signer can therefore control who can verify their signatures. The catch is that silence cannot serve as denial. If a signer wants to claim a signature is fake, they must run a formal disavowal protocol to prove it.

    In 1991, Chaum and Eugene van Heyst went further with group signatures. In this scheme, any member of a defined group can sign a message on behalf of the entire group without revealing which individual did so. Anonymity within the group is protected, but not absolutely. An appointed group manager holds the power to revoke a signer's anonymity if a dispute requires it. Each of these tools addressed a different real-world tension between the need to authenticate information and the need to protect identity.

  • Chaum's 1981 paper on mix networks included an application that is easy to overlook: the first proposal for a voting system that is end-to-end verifiable. The system kept individual ballots private while allowing anyone to confirm that the final tally was accurate.

    In 1991, Chaum introduced SureVote, which allowed voters to cast ballots from an untrusted device, a process he named "code voting" that later appeared in remote voting systems including Remotegrity and DEMOS. In 1994, he proposed the first in-person electronic voting system in which voters could cryptographically confirm that their ballot had not been altered or read by the machine recording it. Subsequent proposals brought cryptographic verification to paper ballot systems, producing Prêt à Voter, Punchscan, and Scantegrity. The city of Takoma Park, Maryland, used Scantegrity in its November 2009 election, which became the first public sector election run using any cryptographically verifiable voting system. In 2011, Chaum proposed Random Sample Elections, a system in which a verifiably random subset of anonymous voters casts ballots on behalf of the full electorate.

  • Chaum's accumulation of honors has tracked the growing recognition of how foundational his work was. In 1995, he received the Information Technology European Award. In 2004, the IACR, the organization he founded in 1982, named him an IACR Fellow. In 2010, the RSA Conference honored him with the RSA Award for Excellence in Mathematics. In 2019, CWI, where he had built his Amsterdam research group, awarded him the honorary title of Dijkstra Fellow. The University of Lugano gave him an honorary doctorate in 2021.

    In 2020, Chaum founded xx network, a privacy-focused blockchain platform. In 2021 he launched xx coin, a cryptocurrency abbreviated XX, designed to offer both user privacy and resistance to quantum computing attacks. In 2019, he spoke at the fifth Ethereum developer conference in Japan. In July 2024, he appeared on a panel at the Plasmacon conference at the United Nations University in Tokyo alongside Vitalik Buterin, co-founder of Ethereum. Chaum, who lives in Sherman Oaks, Los Angeles, remains active in the field he did so much to create, with quantum resistance now among his stated design goals.

Common questions

Who is David Chaum and why is he important to cryptography?

David Lee Chaum, born in 1955, is an American computer scientist and cryptographer widely recognized as the inventor of digital cash and a pioneer of privacy-preserving technologies. He is called "the father of online anonymity" and "the godfather of cryptocurrency" for contributions including blind signatures, mix networks, and a 1982 blockchain protocol proposal that preceded Bitcoin.

Did David Chaum invent blockchain before Bitcoin?

Chaum's 1982 Berkeley dissertation proposed every element of the blockchain found in Bitcoin except proof of work. The dissertation described achieving consensus between untrusting nodes, chaining consensus history in blocks, and immutably time-stamping that chain, and included code to implement the protocol.

What was DigiCash and what happened to it?

DigiCash was an electronic cash company Chaum founded in Amsterdam in 1990 to commercialize his research on digital currency. It sent the first electronic payment in 1994 and issued eCash, the first digital currency from a company. DigiCash filed for bankruptcy in 1998, and Chaum sold off the company in 1999.

What is a blind signature and who invented it?

A blind signature is a cryptographic technique introduced by David Chaum in 1983 that allows a signer to sign a message without seeing its contents. The resulting signature can still be publicly verified against the original unblinded message, enabling untraceable digital payments.

How are mix networks related to Tor and who invented them?

David Chaum invented mix networks in a 1981 paper. The system routes encrypted messages through a chain of servers that shuffle and re-encode them, preventing any observer from linking senders to recipients. Mix networks are the conceptual ancestor of Tor, the modern anonymous web browsing tool.

What was the first public election to use a cryptographically verifiable voting system?

The city of Takoma Park, Maryland, used a system called Scantegrity in its November 2009 election, making it the first public sector election run using any cryptographically verifiable voting system. Scantegrity was one of several cryptographic paper-ballot systems proposed by Chaum.

All sources

50 references cited across the entry

  1. 1journalOn the Origins and Variations of Blockchain TechnologiesAlan T. Sherman, Farid Javani, Haibin Zhang, Enis Golaszewski — January–February 2019
  2. 2webThe Father of Online Anonymity Has a Plan to End the Crypto WarAndy Greenberg — Wired Magazine — January 6, 2016
  3. 5inline|
  4. 10newsEurocrats Do Good PrivacyMarc Rotenberg — May 1, 1996
  5. 11webIACR FellowsIACR
  6. 16bookAdvances in CryptologyDavid Chaum — Springer — 1983
  7. 19citationProceedings on Advances in Cryptology – CRYPTO '88D. Chaum et al. — Springer-Verlag — 1990
  8. 20webEFF:
  9. 21newsRequiem for a Bright IdeaJulie Pitta — 1 November 1999
  10. 23bookAdvances in Cryptology — CRYPTO' 89 ProceedingsDavid Chaum et al. — 1990
  11. 25bookAdvances in Cryptology – EUROCRYPT '91David Chaum et al. — 1991
  12. 35citationComputer Security – ESORICS 2005D. Chaum — 2005
  13. 39citationCryptographic voting debutsLarry Hardesty — 2009-11-13
  14. 42reportComputer Systems Established, Maintained, and Trusted by Mutually Suspicious GroupsDavid L. Chaum — University of California, Berkeley, Electronics Research Laboratory — February 22, 1979
  15. 43bookAdvances in CryptologyD. Chaum — Springer — 1985
  16. 44bookSelected Areas in CryptographyAnna Lysyanskaya et al. — Springer — 2000
  17. 46bookAdvances in Cryptology – CRYPTO '91T. P. Pedersen — Springer — 1992
  18. 47bookAdvances in Cryptology – CRYPTO '87D. Chaum et al. — 1988
  19. 48bookAdvances in Cryptology – Proceedings of CRYPTO 82Plenum Press — 1983
  20. 49bookAdvances in Cryptology – Proceedings of Crypto 83Plenum Press — 1984
  21. 50bookAdvances in Cryptology — CRYPTO' 88David Chaum et al. — Springer New York — 1990