How Bitcoin's peer payment system was revealed 11 years ago

On October 31, 2008, on the eve of Halloween, Satoshi Nakamoto released the white paper on bitcoin. Since then, the revolutionary design of the network has changed the lives of many people and transformed the way we view money today.

Read also: China ranks 35 cryptographic projects as President Xi pushes Blockchain

White Paper on the 11th Anniversary of Bitcoin

Eleven years ago today, at 14:10 Eastern Standard, Satoshi Nakamoto published the Bitcoin white paper on the Cryptography mailing list. The service used was a Pipermail mail service hosted on metzdowd.com, managed by a group of cypherpunks. The title of the mailing list message called "P2P Bitcoin Electronic Paper" and Nakamoto explained that he was working on a new fully peer-to-peer electronic payment system, without a trusted third party. The anonymous creator also revealed that the document was hosted on the bitcoin.org site.

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The first group of people Satoshi introduced to his project was cypherpunks using the Cryptography mailing list hosted on metzdowd.com.

Nakamoto stressed in his email that the main property of the protocol was that "double expenses are avoided with a peer-to-peer network". He pointed out that there were no third parties or trusted third parties and that "participants could be anonymous" when they chose to be. The first e-mail explained that "the new parts are manufactured from a Hashcash-style work proof and that proof of work for the new generation of parts also allows the network to prevent double spending . "

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On the eve of Halloween, on October 31, 2008, Satoshi Nakamoto released for the first time the Bitcoin White Paper. More than a decade later, more than 3,000 digital currencies had existed since the initial launch of Bitcoin.

The announcement of the white paper on Bitcoins was not a big deal at the time. In fact, only a small number of people witnessed the message and responded to it. So, three days later, on November 3, 2008, he decided to redraft the mailing list by proposing the new published document. The inventor Bitcoin mentioned some of the things that were said in the previous post published on Halloween. Some people had responded to Satoshi at the time and an individual seemed to like this idea, but he did not think Bitcoin could evolve. Nakamoto dismissed the problem of scale and said, "Long before the network reaches such a high potential, it would be prudent for users to use Simplified Payment Verification (Section 8) to check for duplicate spending. , which only requires the chain to block the headers, or about 12 KB per day. Only people trying to create new parts would need to manage network nodes. Nakamoto continued:

At first, most users were operating network nodes, but as the network grew beyond a certain threshold, it was increasingly left to specialists with server farms made up of specialized hardware. . A server farm only needs one node on the network and the rest of the local network connects to that node.

"P2P networks seem to have held up well"

Nakamoto also discussed concepts such as Moore's Law and told the person that it would take several years for the network to become extremely gigantic. "From here to here, sending two HD movies over the Internet probably would not seem like a big deal." The same day, Nakamoto again responded to some theories of attack that could be associated to dishonest knots. Nakamoto again mastered his art and quickly replied that if a "bad guy mastered the network", the minor should go beyond the system and it would be a bit like "bouncing a check". should buy something from a merchant, wait for it to be shipped, then master the network and try to get his money back. I do not think he could make as much money trying to create such a carding system as he could by generating bitcoins, "said Nakamoto.

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If you do not read the Bitcoin white paper, you can read it here.

More than ten years later, the Bitcoin network and the cryptocurrency ecosystem have grown massively. More than 3,000 digital currencies are listed on market-capitalized websites and about a quarter of a trillion dollars in digital value are held by people around the world. Satoshi Nakamoto's newspaper and the network put online the following January have created a wealth system that transcends borders, governments and corporate control. Nakamoto pointed out two days after his third email that Bitcoin was only an effective tool and was not the miracle cure for the monopoly force system that still exists in society.

"You will not find a solution to the political problems in cryptography," Nakamoto said on November 6. "But we can win a major battle in the arms race and win a new territory of freedom for several years. Governments are doing well at cutting off centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be doing fine. "

Until then, his predictions were true and Bitcoin ushered in a new form of currency and a taste of true laissez-faire. People have been able to use bitcoins and many other crypto-currencies to circumvent state laws, sanctions, capital controls, and help those in need of unrestricted funds. Since the birth of cryptographic money, many other ideas stem from technological innovation and people are focusing on creating platforms such as decentralized exchanges and concepts that use evidence of non-knowledge. The white paper on the 11th anniversary of Bitcoin is a reminder of how powerful Nakamoto's invention is and continues to transform the world of finance as we know it.

If you have not read the Bitcoin white paper you can read it in full here and if you want to know more about the digital currency revolution, you can Start here.

What do you think of Satoshi Nakamoto's publication of the Bitcoin white paper 11 years ago today? Tell us what you think about this topic in the comments section below.


Image credits: Shutterstock, the Bitcoin white paper, the Cryptography and Pixabay mailing list.


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Tags in this story

Bitcoin Inventor, Bitcoin Inventor, Bitcoin Network, Bitcoin White Paper, Cryptography Mailing List, Cypherpunks, Halloween, Miners, Knots, October 31, Pipermail, Satoshi Nakamoto, Scaling, SPV

Jamie Redman

Jamie Redman is a financial journalist who lives in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about bitcoin, open source code and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols that are emerging today.

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