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Writer's pictureCrypto News Point

Happy Birthday, Bitcoin! Satoshi Nakamoto’s White Paper Turns 11 Today

Today, on October 31, Satoshi Nakamoto had released the Bitcoin Whitepaper, which has come a long way over the past 11 years. While everyone is busy carving their pumpkins, this Halloween, crypto enthusiasts have another major cause for celebration with Bitcoin, the world’s first cryptocurrency.

However, the White Paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” was published by elusive visionary Satoshi Nakamoto on October 31, 2008. 

On October 31, 2008, Satoshi Nakamoto, who was identified as a mysterious person, filed a paper to the cryptography mailing list stating:

“I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party.” Satoshi Nakamoto

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Bitcoin White Paper

The nine-page paper outlined the design and justification for a digital currency with the intention of doing what no other attempt could do before: create an anonymous, trustless, decentralized currency.

Likewise, the protocol represented a cryptographically-secured system, based on a Proof-of-Work algorithm, in which Bitcoins (BTC) are “mined” for a reward by individual nodes and then verified by other nodes in a decentralized network.

This system contained the possibility of overcoming the need for intermediaries such as banks and financial institutions to facilitate and audit transactions, a major disruption to a siloed, monopolized field of centralized financial power.

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The proof-of-work protocol was developed from Dai Wei’s B-money in order to enforce a ‘one CPU one vote’ policy as outlined by Nakamoto in his white paper.

Unlike traditional fiat, Bitcoin was also designed to be a deflationary currency, meaning that there will only be a limited amount of them that will ever exist, specifically 21 million, 18 million of which have already been mined.

So, eleven years on, Bitcoin is consistently setting new records for its network hash rate, a measure of the overall computing power involved in validating transactions on the blockchain at any given time. 

As of the middle of this month (October), network data revealed that since the creation of the very first block on the Bitcoin blockchain on January 3, 2009, known in more technical language as its “genesis block” — miners have received combined revenue of just under $15 billion. 

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However, the figure includes both block rewards — “new” Bitcoins paid to miners for validating a block of transactions, as well as transaction fees, which broke the $1 billion mark this week.

Similarly, Bitcoin’s first-ever recorded trading price was noted on March 17, 2010 — on the now-defunct trading platform bitcoinmarket.com, at a value of $0.003. 

As of August 2019, 85% of Bitcoin’s supply in circulation had been mined, leaving just 3.15 million new coins for the future.

Thus, the transfer of wealth and mining revenue continues to increase as does the number of Bitcoin wallets and the fundamentals look set to continue.

Source: en.bitcoinwiki.org | satoshi.nakamotoinstitute.org | newsbtc.com | cointelegraph.com

 
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