SATOSHI NAKAMOTO
Hello and welcome to our followers and all members of the Binance platform.
In this topic, we will discuss together a somewhat explained translation of what was stated in the paper presented by the godfather of the digital currency world, regarding his Bitcoin currency.
Surprisingly, no one knows for sure who invented Bitcoin.
We only know him by his pseudonym (Satoshi Nakamoto).
Satoshi could be one person, a group of people, or if you believe some of the more outlandish theories, a time-traveling alien or a secret government team.
Satoshi published a 9-page document in 2008 detailing how the Bitcoin system worked. Months later, in 2009, the software itself was released.
To allow online payments from one party to another directly without the need for financial payments to pass through an intermediary financial institution,
A digital cash network based entirely on the peer-to-peer principle has been proposed.
In this network, the signature problem is solved by (signing in an encrypted digital form),
But the ultimate benefit, which is the cornerstone, will be lost if we need a trusted third party to confirm that there is no double spending...
Therefore, a solution to the problem of double spending was proposed.
How to split and merge
(hashing)
For transfers in a chain based on proof of work based on the principle of fragmentation
(chain ofย ย hash-based ย proof-of-work).
This in turn leads to the formation of a chain of transactions that cannot be changed except by re-working it again (proving the validity of the chain of transactions from the beginning).
And the longest chain of transactions just doesn't work.
As a witness to the proof of the network based transfers and events.... but also proves beyond a doubt that it came from the longest chain of CPUs.
And participate in the network in what is called
(NODES).
The larger the majority of CPUs are united in a unanimously formed communication node, the longer the chain of transactions.
This will result in the longest chain of transactions that is immune to hacker attacks.
To do this, the network itself must have a basic infrastructure that relies on the least possible effort used from the network's resources to complete transactions.
Participants in the network can also leave and return to it at any time they want, once they join again.
To the longest chain of transactions based on proof of work this is proof and confirmation of what happened during their absence.
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the introduction:
The process of e-commerce over the Internet has become fundamentally dependent on reliable central financial institutions as a trusted third party.
Between the parties to the transaction, in order to ensure that electronic payments are completed over the Internet in an effective, secure and satisfactory manner for all parties.
While this system works efficiently and effectively in most electronic payments through various communication channels..
However, it still suffers from a fundamental and inherent weakness in such a type of payment, which is the existence of a guarantee for the completion of electronic payments.
Irreversibly, absolutely.
Since financial institutions, which in turn act as a reliable intermediary in completing the exchange, cannot avoid falling into such a technical defect in the electronic payments system.
If payments are to be completed in a secure manner, these institutions must add an additional cost to ensure that such a flaw in the system is avoided.
Which in turn leads to deductions that are often not small from the value of any transaction as a tax to ensure its safe completion.
Making small, everyday transactions difficult to implement in practice.
Another major flaw in the existing payments system is that there is a greater cost that could be incurred if the ability to make electronic payments is lost.
Non-reversible for services provided without the possibility of return.
In general, it is known that in order to activate the return policy feature in various online stores, online store owners must take some precautions.
To secure their side in completing the purchase process, and this often includes requesting some unnecessary and superfluous information.
From their customers, which in turn affects the privacy aspect.
In general, it is actually known that there is no absolutely effective way to reduce such frauds, so accepting a certain percentage of them as a minimum in completing transactions is considered.
Electronic is an acceptable and inevitable matter, as the only safe way to conduct transactions is through paper money between the seller and the buyer face to face.
Therefore, the presence of a trusted third party is imperative in the case of electronic payments through any communication channel over the Internet.
So what we need to solve these dilemmas is to have an electronic payment system that is basically based on the principle of encryption to document and verify transactions instead of having
An external authority, or in other words, a trusted third party to complete transactions in the correct manner. This is to enable any two parties in any transaction to complete it directly without the need for
Providing any unnecessary personal data or even just proof of identity.
By conducting electronic transactions in an encrypted computational manner in the network, confirming them and broadcasting them to all participating parties, and considering them as witnesses to the completion of the transactions, it is possible to protect e-store owners and others from fraudulent operations that take place over the Internet in the current payment system, and it also includes all the mechanisms that work in turn.
To protect the privacy and rights of buyers in any transaction.
In this research paper...
We first present to you the solution to the problem of double spending by using a randomly distributed and decentralized peer-to-peer network.
It is protected by a time stamp for each transaction on the network in order to produce and prove a record of events or transactions arranged chronologically, starting from the oldest, followed by chronological order according to the time stamp principle until we reach the last transaction.
The system remains effective and secure against hacking (by corrupt elements who in turn try to create other chains or records instead of the original ones) as long as
The longest chain of transactions or longest ledger is controlled by the loyal participants of the network by aggregating the most power from their CPUs.
Here ends the first part of the translation of the Bitcoin white paper.
Until I see you in the second part, stay safe๐ฅฐ๐ฅฐ
