Bitcoin whitepaper explained – the basicsby Dominique V. King Promotions
Learn about the paper that introduced Bitcoin to the general public, and get a good fundamental understanding of the way it works. Recommended Features
- Fully Digital
- Bitcoin can not be copied
- There is a limited supply of Bitcoins
- Bitcoin is Decentralized
Review on Bitcoin whitepaper explained – the basicsIn this section, I will first analyze the introduction of the whitepaper, as it will help you understand the idea behind the original cryptocurrency.
In 2008, when the paper was published, Satoshi realized the impact of the rise of internet commerce on the global economy. But he also understood out that all these transactions had to go through a trusted third party in this case, banks or centralized payment systems.
A problem was born. You see, up to this point, trust was an essential part of digital transactions. We need trust to avoid transaction reversals and minimized fraud. Furthermore, to build trust, merchants and banks require even more personal information from customers.
To combat this issue, Satoshi introduced Bitcoin as the first digital representation of value. No participant is able to copy, double-spend coins, or reverse transactions. People would be able to send this digital currency directly to one another, without the use of a middleman.
And instead of relying on trust, Bitcoin relies on computer calculations to make digital transactions safe and peer to peer reliant.
Finally, to secure the network, Satoshi developed an incentivized system, to keep the network safe. Through proof-of-work, users that confirm transactions on the Bitcoin network get rewarded with a small amount of BTC.
Today, not only is Bitcoin a viable digital currency but, in the progress, it also increased significantly in value. Due to that, it became the ultimate digital asset for storing value.
But to understand why this came to be, lets carry on and try to have the main aspects of the Bitcoin whitepaper explained.
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Created on May 5th 2020 05:47. Viewed 298 times.
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