The development of major institutions and establishments have been made by factual groundbreaking specialized inventions that have invariably left a lasting mark in the world today.
Some of these inventions include; the printing press which led us to a scientific transformation, the uncovering of electricity which gave light to the world, radio signals that transformed the method in which data was passed down to the masses and finally the world wide web that totally floored the manner in which we interact with available information.
And so, over time and during the little space of a decade, Bitcoin has emerged with a likely rowdy and advanced development on the monetary world. However, the technology behind it has moved further to transform a large number of sectors in the world economy.
Bitcoin’s whitepaper was launched into the world on the 31st of October. The whitepaper basically gives a lengthy description of how the Bitcoin protocol would function. The whitepaper was dubbed “Bitcoin: A Peer to Peer Electronic Cash System” and was distributed on a private mailing list.
It was written by Satoshi Nakamoto who is known as the anonymous founder of Bitcoin. The identity of Satoshi is unknown, and so no one can tell if it is a single person or a group of persons.
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Overview Of The Bitcoin Whitepaper
Satoshi’s whitepaper; Bitcoin: A Peer to Peer Electronic Cash System was divided into four distinct sections. It comprises of an abstract, introduction, methodology and a conclusion.
While the abstract is basically the summary of the entire white paper, the other sections will be explained shortly.
In the introductory part of the whitepaper, Satoshi basically argues about the issues involving purchasing and trading goods online as it depends on financial establishments and these establishments assume the role of intermediaries to process the diverse transactions.
While the monetary institutions that assume the role of intermediaries to hasten the transaction delay by solving issues and battling fraud, it increases the cost of these transactions. With this, Satoshi brought to light the computerized payment system strictly dependent on code. This enables two individuals to communicate with one another without an intermediary.
This part of the whitepaper is divided into sections that are basically about the idea of Bitcoin such as;
- Transactions: This section involves a sender passing the Bitcoin forward by digitally signing previous transactions of the bitcoin including the public key of the receiver of the bitcoin.
- Timestamp Server: This section outlines the software used to timestamp data electronically.
- Proof of Work: This section simply demands proof that a particular number of works have been executed by the system.
- Networking: This section basically analyses the system and processes of Bitcoin’s network.
- Incentive: This section outlines the rewards used to keep the system trustworthy and eliminate any idea of fraudulent activities
- Reclaiming Disk Space: This section outlines the allocation of memory
- Simplified Payment Verification: This section outlines how payments can be easily verified
- Combining & Splitting Value: Here, Satoshi analyses how coins are divided into diverse parts before being passed further
- Privacy: This section outlines how transactions are publicly declared, but the owners remain anonymous
- Calculations: It outlines the advanced understanding of algorithms
Satoshi Nakamoto finally puts an end to his or their work by drawing the attention of individuals interested in the major features of Bitcoin. Some of which are the seamless transactions without the interruption of an intermediary and the electronic signatures.
Wrapping It Up
The Bitcoin whitepaper basically outlines a system that displaces the demand for Government regulations or central authorities such as banks to hasten transactions. This whitepaper however introduced the world to the first-ever cryptocurrency – Bitcoin.
The complete Bitcoin whitepaper can be downloaded from here
Disclaimer: This post has been contributed just for educational purposes and should not be regarded as financial advice of any sort.
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