Cryptocurrency

Who invented Bitcoin and how did it all start?

Who invented Bitcoin and how did it all start?

No one has probably missed the attention cryptocurrencies, and then in particular Bitcoin, received especially in the past year. But where does Bitcoin come from and who invented the currency?

Perhaps the most mythical BitcoinThe currency and the development of the technology behind it is that – even today – it has not been determined who or who is actually the creator behind the phenomenon.

2008: A brief background to the origins of Bitcoin

The year was 2008 when a so-called white paper regarding a new digital currency by name Bitcoin was published on Internet. One white paper (in Swedish white paper) is, in short, a type of overview of what is being introduced, why it is needed and how it works. Bitcoins white paper had the sender Satoshi Nakamoto. But more than that, it was not revealed who was actually behind the introduction of the system.

Bitcoin - White Paper - Excerpt
The introduction to Bitcoin’s white paper published by Satoshi Nakamoto in 2008. The entire document can be read at https://bitcoin.org/sv/bitcoinartikel. Something I really recommend doing if you are interested in technology.

Apart from a few enthusiasts who directly jumped on the project, not much trust was given at this stage Nakamotos new, digital currency. Nevertheless, it all really started on the third of January the following year (2009) when the first so-called “block” in Bitcointhe block chain was extracted. Want to read more about how Bitcoin-the technique works, I recommend taking a look at my article about just that, you will find it here.

Although some parts of the technology behind blockchains already introduced it was only with the advent of Bitcoin the so-called Byzantine general problem (from English Byzantine Generals problem) received a solution. Simply put, the problem lies in the fact that no matter how good a system may be, there is always a risk that if enough people decide to destroy for the others, they will also be able to do so. For something to work, it is thus necessary that enough people trust each other, agree on everything that is done and also double-check each other to see that no one is fiddling with anything.

How this would be solved in a purely practical way when it came to cryptocurrencies, so far no one had managed to figure out.

Nakamotos solution to the problem came to be known as Proof of Worksystem. Which in short is a type of control system to ensure that all users in a network both work to create it together and also agree that everything that is done is correct. More about Proof of Work you can read in the article on blockchains and Bitcoin.

2011: Satoshi Nakamoto disappears

During Bitcoins had two first years of life Satoshi Nakamoto been available to drive the development of the system, discuss any question marks and in other ways assist the technology. In April 2011, then – what would become – a final message emerges from Nakamoto where he writes that he means that Bitcoin-the project is now in good hands and that he has moved on to work on other things. After this, no one has officially heard anything more from Satoshi Nakamoto.

Bitcoin - Creator - Nobody Knows
Nobody knows where Satoshi Nakamoto actually went. Or for that matter even where he was from the beginning.

If we fast forward ten years, to today’s date, have Bitcoincurrency currently has a total value of approximately $ 820 billion. Based on that, it’s pretty cool to Satoshi Nakamoto (whoever he or they were) for two years managed to introduce a new, completely digital currency which without any control from authorities or similar bodies today has grown to a value of almost 1 trillion dollars.

2012 and onwards: Several people are singled out as, or pretending to be, Satoshi Nakamoto

So soon Satoshi Nakamoto disappeared from Bitcointhe scene (and even before) started the speculation about who or what was actually behind the name. The people below are the ones who have received the most publicity when it comes to theories about who is behind the currency.

Craig Wrigh

The person who has received the most attention recently is without a doubt the Australian programmer and entrepreneur Craig Wright. No one has pointed him out as Satoshi Nakamoto. Instead, he himself has come up with what he considers to be proof that he was the creator Bitcoin. However, none of this evidence has been sufficient to substantiate his claims. Many have also gone out and openly criticized Wright to be a fraudster, including the co-founder of the world’s second most popular cryptocurrency and network, Ethereum, Vitalik Buterin.

The latest spectacle (yes, I choose to be so biased) from Wright is that he seems come to sue the current owner of bitcoin.org (known only as “Cobra”) For copyright infringement regarding the publication of Bitcoins white paper. As Wright means that he created and thus owns.

Nick Szabo

Nicke Szabo is a scientist in the field of data and has worked with cryptography for many years. He introduced in 2009 an idea for something he called Bitgold. A technology not entirely different from what it is today Bitcoin. Bitgold however, was never launched. Although Szabo seemed to have plans to do so. He later went out denying that he would be Nakamoto. Something some seem to believe. Others not.

Adam Back

Adam Back is one of the people mentioned in Bitcoins white paper and has based on this, as well as his collaboration with Satoshi Nakamoto, pointed out by many as just Nakamoto self. Something he denied.

Hal Finney and Dorian Nakamoto

Perhaps the most interesting candidate for who could be behind the pseudonym Satoshi Nakamoto where Hal Finney from California. Slippery was the first person ever to receive one Bitcointransaction and then from no less than just Satoshi Nakamoto. Slippery was also one of the first to see the potential in Bitcoinproject and began to communicate directly with Nakamoto as soon as he heard about the idea of ​​the currency. The two then collaborated for a relatively long time and helped to develop Bitcoin.

In a (very sad but awfully worth reading) article from Forbes reports the reporter Andy Greenberg about how he in 2014 makes contact with and Hal Finney to try once and for all to find out who the creator behind the cryptocurrency actually is. After many turns back and forth, it seems clear that Slippery only felt Nakamoto digitally and never even knew who it actually was.

Something that stands in contrast to this is that in Throat physical proximity there was a man by name just Satoshi Nakamoto (he was called for Dorian Nakamoto but his full name was Dorian Prentice Satoshi Nakamoto). The theories here indicated that it was either Dorian Nakamoto that was Satoshi Nakamoto. Alternatively it was Hal Finney who had borrowed the name when he created Bitcoin. Both of these theories have been denied by both Slippery and Dorian. Dorian Nakamoto went out in 2014 and testified that he had nothing to do with it Bitcoin to do at all.

Regarding the speculations about whether Hal Finney where Nakamoto these remain (for the time being) with his death in August 2014, caused by ALS (amyotrophic lateral sclerosis). With his passing chose Slippery to become cryogenically frozen with the hope of a cure for ALS in the future can see the light of day.

Why did Satoshi Nakamoto disappear and what does that mean for Bitcoin?

Exactly why Satoshi Nakamoto officially withdrew Bitcointhe scene may never emerge. The last Nakamoto did before handing over all code and other documents to others Bitcoindeveloper was to remove its own name from Copyrightpart and dedicate the copyright to “everyone Bitcoin-user”.

If you look at how the whole concept is meant to work – that is, no one has more influence than anyone else – it is not difficult to find several reasons why it could actually be good for the currency that there is no known creator. Perhaps the most obvious reason is that control of the currency by authorities and other political bodies will probably be more difficult if no one is actually behind it. Above all, this can be important if (or when according to some) the currency begins to intrude on the ordinary, so-called fiat currencies (normal money).

Another reason stems from the fact that for the value of the currency, it is probably not very good if a single person’s statements have the opportunity to influence the exchange rate and its value. Something that, for example, got the founder of the cryptocurrency Litecoin, Charlie Lee, att sell all their Litecoins year 2017.

The above further spills over a little into the reason that without a creator there is no natural person who has to endure an enormous amount of publicity and pressure from various (more or less) legal sources. Something that would otherwise be guaranteed to affect the value of the currency.

Will we ever know who created Bitcoin?

If, as I said, you have to trust the whole idea behind it Bitcoin It seems likely that part of the plan behind the currency, and the change it may create, was also to never disclose who actually introduced it.

Personally, I do not think based on this that we will ever know exactly who or what Satoshi Nakamoto where or is. And somewhere I want to believe that both Bitcoin and the whole crypto-world may even feel best because there is no explicit creator. If, on the contrary, there is something that can directly contribute to the cryptocurrencies finally getting the spread predicted by many, it is probably the mystique behind the uncontrolled – but potentially stable – currency. It came from nowhere and no one at all but changed the whole economic system as we knew it.

The above is of course just pure speculation on my part. But it’s hard not to when the cryptocurrency world is, after all, both as exciting and yet difficult to understand as it is. Or as John Oliver expressed it in a, now somewhat classic, description of Bitcoin in his show Last Week Tonight from 2018 ”Bitcoin is everything you do not understand about money combined with everything you do not understand about computers”.

What do you think about the creator of Bitcoin? Will we ever know who started the whole carousel?

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