Bitcoin white paper is 13 years old: the journey so far


13th anniversary of the birth of Bitcoin (Bitcoin) Just as the world continues to respond to global pandemics, inflation concerns, Amazing memecoin fanatic trend And more and more institutions adopt the cryptocurrency field.

On October 31, 2008, Satoshi Nakamoto released the Bitcoin white paper to the cryptography mailing list hosted by Metzdow. The Metzdow mailing list is managed by a group of cypherpunks and is full of ideas aimed at creating a form of digital currency: some of them are even referenced in the Bitcoin white paper.

Satoshi’s white paper appeared in a message titled “Bitcoin P2P Electronic Cash Paper”, in which Satoshi Nakamoto explain His digital currency is completely peer-to-peer (P2P) and can be traded without a trusted third party. Through a peer-to-peer network, Bitcoin solves the double-spending problem.Bitcoin also allows network participants to remain anonymous and pass Proof of work (PoW) Consensus algorithm.

At that time, the white paper was not received as people expected, knowing what they know today. Only a few people saw Nakamoto’s email and responded to their thoughts and concerns about Bitcoin.

In an interview with Cointelegraph, Leo Matchett, co-founder and CEO of Decentralized Pictures, a non-profit organization that supports independent filmmakers, stated that the Bitcoin white paper “is the origin of a new era of monetary sovereignty” and added, “Satoshi Nakamoto Station On the shoulders of giants, problems that the predecessors could not solve are solved.”

Matchett further believes that the white paper “is indeed the beginning of a new era in the world currency system” because it “proposes the idea that decentralization is more valuable than centralization.” In fact, the Bitcoin idea attempts to solve many problems, including counterfeiting, steep ramps, and counterparty risk.

Run bitcoin

After sharing the white paper on the cryptography mailing list, discussions around the file began to grow slowly but surely, and the Bitcoin network was launched in early 2009. At that time, it has been involved in the development of leading encryption products in cooperation with PGP.

Hal Finney is famous in the cryptocurrency field for participating in the first Bitcoin transaction and becoming the first person to run a copy of the network through a node after Satoshi Nakamoto. After setting it up, Finney tweeted that he was “running Bitcoin.”

The cypherpunk passed away in 2014 due to complications of ALS. His body was cryopreserved by the Alcor Life Extension Foundation. describe He collaborated with Satoshi in a forum post, and he revealed that he started mining BTC on “block 70 or so”, and after some communication, Satoshi sent him 10 BTC to test whether the network is working properly.

At that time, there was no space requirement on the blockchain, so the transaction was successfully processed with an additional fee of 0 BTC. 10 BTC was worthless at the time, but this transaction helped fix some of the early errors of BTC.

The first Bitcoin transaction clearly showed that the network is effective. Although there is still a lot of work to be done to reach today’s level, this is the first step in the right direction. One year later, in 2010, the first commercial Bitcoin transaction will take place.

Two pizzas worth more than $600 million

On May 18, 2010, the developer Laszlo Hanyecz created a post on the Bitcointalk forum supply 10,000 bitcoins “buy a few pizzas”. Hanyecz suggested that if they gave him two large pizzas (even homemade), they would pay another forum member in coins.

The post was questioned because 10,000 BTC was not worth the cost of two pizzas at the time, or anywhere near it. It was not until May 22, after follow-up, that Hanyecz reported that he “successfully traded pizza with 10,000 bitcoins.”

At the time, despite the low value of Bitcoin and the small size of the community, one user pointed out that “a great milestone has been reached”. This day is now called “Bitcoin Pizza Day” in the cryptocurrency community.

The first commercial Bitcoin transaction led to the creation of an ecosystem now worth more than 2 trillion U.S. dollars and proved that Bitcoin has many use cases to consider. Bitcoin was used as a true medium of exchange for the first time in history.

An industry worth trillions of dollars

The price of cryptocurrencies will rise over time, partly because of their adoption and partly because speculators want to profit from their incredible volatility. In the process of all this, a new business was born and eventually became a large asset class.

In an interview with Cointelegraph, Miha Grčar, head of global business development at the cryptocurrency exchange Kraken, said: “No one can predict the wave of change triggered by the release of a 9-page PDF.”

Grčar said that the Bitcoin white paper presents the vision of a digital currency that can be used as a store of value and a medium of exchange independent of centralized control. According to him, its potential has not been fully released:

“Facts have proved that this is a breakthrough of such great historical significance and significance. Even if 13 years have passed, we have hardly touched the surface.”

He said that Bitcoin has triggered “the paradigm shift that now supports a trillion-dollar industry” and has shown the world a better way. “Sovereignty, finance, and personal freedom are all in the clutches of corrupt and outdated socio-economics. Coexistence with the outside. A system plagued by insiders, cronies, and behind-the-scenes exchanges.”

As can be seen from the first commercial Bitcoin transaction, the value of BTC is not always clear.Cryptocurrency has experienced a major collapse in its history, and Declared “death” more than 400 times Popular media and analysts.

According to statistics, the market value of Bitcoin currently exceeds $1.16 trillion Cointelegraph Markets ProAlthough most people hope that they would have heard of this cryptocurrency in 2010 or 2011 and used the investment to invest in it and accumulate wealth, most people may not have seen how big BTC will become.

Early Bitcoin investor Greg Schoen posted a now-famous tweet in May 2011. When the cryptocurrency was trading at $0.06, he sold 1,700 BTC for $0.30 because he could have Sell ​​his bitcoins for 8 dollars. Since a BTC is currently trading at more than 61,000 USD, his 1,700 BTC is now worth more than 104 million USD. It’s a pity indeed.

The rise of Bitcoin is supported by a thriving industry full of innovations that has seen cryptocurrency exchanges start trading on the Nasdaq exchange, and corporate investor Who recognizes that BTC can be used Diversify your investment portfolio and hedge against inflation.

Earlier this year, El Salvador officially passed the country’s Bitcoin law, becoming the first country in the world to adopt Bitcoin as legal tender. Effective September 7Salvadorans can use cryptocurrency through a government-launched wallet called Chivo. Lightning Network, The second layer of scaling solutions.

In an interview with Cointelegraph, Javier Moro, chief product officer of Bitso, a Latin American cryptocurrency exchange, pointed out that El Salvador’s move is “rooted in hopes for a better future for Salvadorans” and its success will depend on the knowledge of cryptocurrencies in the country.

More is yet to come

In early October, the first Bitcoin exchange-traded fund (ETF) was launched in the United States. ProShares Bitcoin Strategy ETF began trading on the New York Stock Exchange under the ticker symbol BITO.It became The second largest trading volume fund It was recorded in the first appearance.

In a statement sent to Cointelegraph, Ron Levy, CEO and co-founder of the blockchain consulting firm The Crypto Company, stated that the Bitcoin white paper “lays the foundation for a decentralized industry beyond what anyone thinks is possible.”

He said that the next leap in this field is “clear laws and regulations on what cryptocurrencies can and cannot do.” However, it is clearly unclear what the outcome will be, because all new technological breakthroughs face resistance from established mechanisms.

Brittany Laughlin, executive director of the Stacks Foundation, which connects decentralized finance (DeFi) and the Bitcoin network, told Cointelegraph that Bitcoin has gone a long way from being merely a store of value because it “is now available on Bitcoin Establish smart contracts and welcome millions of BTC holders to enter the world of DeFi, NFT and true ownership.”

It is worth noting that Satoshi Nakamoto seems to predict that other blockchains can use tokens to represent asset ownership, which they called “domain objects” at the time. Satoshi’s example is a token that represents domain rights for one year.

As Grčar said, mankind has only just begun to scratch the surface of the technological capabilities of Bitcoin and blockchain. So much so that our development today seems to be the idea of ​​Satoshi Nakamoto, the creator of Bitcoin.

The Bitcoin white paper makes the idea of ​​a decentralized network feasible and proves that even a short nine-page document can change the world in such a radical way that it may be difficult to understand even at this moment.

Although it is not clear whether more countries will adopt BTC as legal currency in the future, or whether interest in Bitcoin ETFs will diminish, it is clear that Bitcoin will continue to exist and serve as a store of value and a medium of exchange. Only 13 years after this idea was first proposed. Imagine what will happen in the next 13 years.