Lydian Coinage refers to the first known system of coinage, developed in the ancient kingdom of Lydia around the 7th century BCE. The Lydians created coins made from electrum, a natural alloy of gold and silver, which were stamped with images to signify authenticity and value. This innovation facilitated trade by providing a standardized medium of exchange. The introduction of Lydian coins revolutionized commerce, allowing for easier transactions compared to barter systems. The concept of coinage spread throughout the ancient world, influencing other cultures, including the Greeks and Persians, and laying the foundation for modern currency systems.