Why can't you hold Bitcoin? It's because you don't know its value!
The white paper will help you truly see the essence of the cryptocurrency market and understand the true value of Bitcoin!
Here are the core contents of the white paper and their translation:
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The full title of Bitcoin's white paper is (Bitcoin: A Peer-to-Peer Electronic Cash System), published by Satoshi Nakamoto in 2008. This white paper is concise yet profound, consisting of only 9 pages, but it laid the foundation for the entire cryptocurrency industry.
Core Translation of Bitcoin White Paper (Abstract Version)
Title
(Bitcoin: A Peer-to-Peer Electronic Cash System)
Abstract
A completely decentralized peer-to-peer electronic cash system allows for direct transactions between users without the need for any third-party financial institution.
1. Introduction
Traditional online payment systems rely on trusted third-party intermediaries, which, although effective, lead to the following problems:
High transaction costs
Payments cannot be completely reversed, leading to fraud risks
Bitcoin aims to solve these issues through technological means, enabling payments to be completed directly on a basis of complete trust.
2. Transactions
The process of transactions is similar to a digital signature chain:
Each transaction combines the hash value of the previous transaction, the receiver's public key, and the sender's signature.
The receiver uses their private key to verify the transaction's validity.
3. Timestamp Server
The timestamp server packages transaction data into a 'block' and records it on the blockchain in the form of a hash value. Each block is linked to form an immutable ledger.
4. Proof of Work
The Proof-of-Work mechanism is used to create blocks:
Miners find a hash value that meets specific conditions through computation.
Resources are consumed through computation to ensure network security and data immutability.
5. Network
The Bitcoin network operates through the following steps:
1. Users broadcast transactions to the entire network.
2. Miners collect and validate transactions.
3. Miners who successfully complete the proof of work can add new blocks to the blockchain.
4. All nodes accept the longest chain as the main chain.
6. Incentive Mechanism
Miners earn Bitcoin rewards through mining, ensuring that network participants have the incentive to provide computational power to maintain the system's operation.
7. Disk Space Savings
By only storing block header data instead of all transaction data, storage space is saved while using Merkle Trees to verify transactions.
8. Simplified Payment Verification (SPV)
Ordinary users do not need to store the complete blockchain data, only verify the block headers to confirm transaction authenticity.
9. Conclusion
Bitcoin, as a completely decentralized peer-to-peer electronic cash system, offers a new solution for achieving secure, low-cost, irreversible transactions.
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The original text of the white paper can be read on the official Bitcoin website. It is recommended that every investor entering the cryptocurrency space not only read the white paper thoroughly but also understand the underlying technical principles and logic, so they can truly see the essence of the cryptocurrency market and avoid blindly chasing highs and lows.