With Bitcoin achieving phenomenal success in 2017, 31st October marks the completion of Nine years since the Bitcoin White Paper was released by Satoshi Nakamoto, the anonymous creator of ‘Internet of Money’. The document which was targeted at subscribers to the cryptography mailing list tried to describe Bitcoin as a dynamic technology based on the core architecture of the world’s foremost decentralized and peer-to-peer monetary structure. Bitcoins could be used for enabling online payments by weighing down on the power of internet without any third party involvement such as any corporate entity or the government.
The brilliant paper issued by Nakamoto sums up the basic attributes of Bitcoin in the first few sentences as follows:
“[Bitcoin] a purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work.”
Since its January 2009 release, the decentralized network began transforming the society’s perception of money and the holistic functioning of financial system. Initially Bitcoin had to struggle with just a handful adopters like that of Hal Finney who completed the first ever Bitcoin transaction with just 10 Bitcoins. Presently millions of people across the globe are making use of similar protocol to power up everything from real estate to online betting. This has paved a way for better banking opportunities without having to undergo the glare of regulators. Satoshi Nakamoto had stated that, “sorry to be a wet blanket. Writing a description for (bitcoin) for general audiences is bloody hard. There’s nothing to relate it to.”
The decentralized cryptocurrency devoid of any rulers is considered as ‘people’s money’ since it imparts sovereign freedom to individuals for doing whatever they deem fit with their money. Although it has been increasingly used to illegally channel funds and defraud unsuspecting investors, Bitcoin was created by relying on the mathematical conjugations. This stands in deep contrasting hues when compared to the modern day’s untrustworthy banking system. “What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party,” explains Nakamoto’s paper.
On its 9th anniversary more and more people are lining up to become a part of the glorious Bitcoin bandwagon. The price of Bitcoin has already toppled over the $6000 barrier and BTC worth Billions are being swapped worldwide with every passing day. More than a thousand protocol copycats have made use of Bitcoins technology in one way or the other. Altcoins worth $78 Billion are being traded in bulk on a daily basis. This has led many people to hold the view Bitcoin is changing our society as a whole much like the evolutionary growth of Internet in the last few decades.
Bitcoin aficionados round the globe look up to Satoshi’s paper as the holy grail of crypto world which shall live on forever acting as a guide for newcomers with a holistic yet easy to apprehend summary of every little secret the crypto world houses along with a sneak peek into the future possibilities. Nakamoto concluded the paper by stating that, “We have proposed a system for electronic transactions without relying on trust. ” Nine years hence, the Bitcoin rocket seems to be going all strong with no chance of slowing down anytime soon.
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