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The term "hyperlink" was coined in 1965 (or possibly 1964) by Ted Nelson at the start of Project Xanadu. Nelson had been inspired by "As We May Think," a popular essay by Vannevar Bush. In the essay, Bush described a microfilm-based machine in which one could link any two pages of information into a "trail" of related information, and then scroll back and forth among pages in a trail as if they were on a single microfilm reel. The closest contemporary analogy would be to build a list of bookmarks to topically related Web pages and then allow the user to scroll forward and backward through the list.

In a series of books and articles published from 1964 through 1980, Nelson transposed Bush's concept of automated cross-referencing into the computer context, made it applicable to specific text strings rather than whole pages, generalized it from a local desk-sized machine to a theoretical worldwide computer network, and advocated the creation of such a network. Meanwhile, working independently, a team led by Douglas Engelbart (with Jeff Rulifson as chief programmer) was the first to implement the hyperlink concept for scrolling within a single document (1966), and soon after for connecting between paragraphs within separate documents (1968). See NLS.