Technology

Who Created Bitcoin and Why?

About 13 years ago, a mysterious group or individual named Satoshi Nakamoto published a white paper describing Bitcoin as a software system. Initially, many people and organizations did not pay much attention to Bitcoin. Today Bitcoin is worth over $1 trillion. Cryptocurrency has become a phenomenon and proponents believe it will transform the financial network worldwide.

However, the creator of Bitcoin remains a mystery. Many people are still wondering who Satoshi Nakamoto is and why they created Bitcoin. On October 31, 2008, Satoshi sent out a white paper to cryptographers explaining Bitcoin as a new electronic payment system. Many people didn’t care about Satoshi’s identity, and many group members were skeptical of the idea.

Developers and cryptographers like Nick Szabo, Wei Dai, David Chaum, and Hal Finney tried and failed to create virtual cash over a decade ago. However, Satoshi launched Bitcoin on January 9, 2009. Satoshi sent Mr. Finney the first Bitcoin transaction.

In the early days of the Bitcoin network, Satoshi sent messages through email and message boards. However, in December 2010, Satoshi stopped sharing anything publicly or speaking to developers.

Satoshi Nakamoto’s real-life identity

Although Satoshi handed over the management of the project to Gavin Andresen, no one knows his real identity. This developer did not share anything personal in private and public messages that developers and cryptographers later published. Currently the world has nothing biographical about Satoshi. Every message Satoshi shared was about the Bitcoin network and its code.

This developer used a website and two email addresses, but service providers blocked the identity of the person who registered them. Satoshi is a ghost in a time when anonymity is so difficult. No public information about Satoshi is available to the world.

Still, Bitcoin has one million coins generated by a miner in its first year. And nobody has moved them since. Based on current bitcoin value, these coins are worth around $55 billion. If they belong to Satoshi, this mysterious being is among the richest people in the world.

However, people assume that Satoshi only controls 1 million of those bitcoins, and a private key is required to transfer them.

Why Satoshi Nakamoto created Bitcoin

According to his white paper, Satoshi created Bitcoin to introduce a trusted cash system. The idea was to remove intermediaries or third parties that people traditionally need to transfer money. Aside from increasing the cost of transferring funds, third parties cause inconveniences. Therefore, traditional money transfer is costly and inconvenient due to the involvement of third parties. Today you can buy bitcoin on a platform like www.chesworkshop.org/bitcoin-loophole/, receive your digital coins and use them in a cross-border transaction the same day. With fiat money, the process would take longer and entail higher fees.

Another reason Bitcoin was created was to give people greater financial control. Many people blamed conventional banks and governments for the 2008 economic crisis. In response, Satoshi introduced a financial system that would require intermediaries such as governments and banks. Bitcoin is a trusted system that does not require users to know each other’s identities in order to conduct transactions.

Bitcoin depends on proof-of-work, where miners solve mathematical puzzles to generate new tokens. Ideally, this virtual currency uses mathematical algorithms to validate transactions without a central authority like a bank.

Bitcoin’s creator remains anonymous more than a decade after the cryptocurrency’s inception. However, Bitcoin proves its relevance by solving some of the problems people and institutions face when using fiat money. Bitcoin transactions are faster, more affordable, and more secure. Therefore, acceptance of this cryptocurrency is gradually increasing around the world. Some people believe that bitcoin will eventually become a global virtual currency.

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Fry Electronics Team

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