Hello and welcome to our followers and all members of the Binance platform.
In this topic, we will discuss together the second part of the somewhat explained translation of what was mentioned in the presented paper.
From the godfather of the world of digital currencies, especially Bitcoin
SATOSHI NAKAMOTO
Let's get started
Satoshi Nakamoto says in the section on transfers:
In our paper, we define digital currency as a connected chain.
From encrypted digital signatures to any transaction.
So every owner of the currency who wants to transfer it to another person must make an encrypted digital signature on the previous transaction.
In the public ledger, including in its signature the receiving party's public key and adding all this data at the end of the longest chain of encrypted digital signatures, which we considered to represent the currency here.
At the same time, the receiving party can verify that the transaction has been made by checking the public record.
With a series of encrypted digital signatures which in themselves represent proof of ownership.
There remains the problem that the receiving party still needs a way to ensure that the currencies paid have not been
The owner spends it twice (double spending problem)
A common solution to this double-spending problem is to trust a third party as a
A central authority responsible for issuing currency and is directly responsible for verifying and examining all transactions.
Electronic and secure against double spending.
The main problem with this popular solution is that the fate of the entire financial system is in the hands of the institutions that mint the currency, meaning that all transactions to be considered valid must pass through that minting authority only.
This is not a solution in a peer-to-peer payment system.
If we still need to solve the problem that the receiving party still needs a way to ensure that the currencies
The money paid was not double spent by the owner.
For this purpose and to solve the problem of double spending, we propose in this paper that the solution is that the first attempt to spend the currency
It is the only one that will be recognized so it does not matter how many subsequent attempts to spend the same coins again.
Since the only way to complete any transaction and consider it valid or not is for the issuing house to be
(The central authority trusted as a third party in any transaction)
Fully aware of all previous transfers, if the proposed solution also suggests having a cheque house that is aware of all transfers
The one to be performed is the one that determines which transaction arrives first.
For this purpose and to solve the problem of the need for a third party
As a medium for recording and examining transactions, we find that the solution is to publicly disclose all transactions in a single public record for all transactions on the network, and for this record to have a time stamp character.
(Timestamp Server).
A working mechanism must be put in place that ensures that all participants in the network agree unanimously on a single public record of transactions.
Which have been completed and will be added to this record later in the series.
In other words, the receiving party of the transaction only needs to prove that the time of receiving the transaction is the actual time.
Agreed upon by the vast majority of network participants.
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3. Time stamp server
(Timestamp Server)
As we mentioned earlier in the solution to prevent double spending, we proposed that each transaction be accompanied by a timestamp.
Its own. Here's how it's done.
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When making transfers on the network, all private data is placed in what is called a block.
Then, when the block's validity is proven and its correct hash is created.
This is where the timestamp server comes in, putting a timestamp on the hash of each block.
Then publish it publicly to the rest of the network participants, as is the case with daily newspapers.
If the time stamp server proves or its function is to prove that the data is correct, you must say:
At what time was her hash created?
Each timestamp placed on the data to create the hash also includes the timestamp of the previous block's hash.
As part of it, they form a connected chain of blocks that contain data related to the transfers in addition to their fingerprint, or what is called a chain. With each new addition to the chain, the validity of the data preceding it in the chain is confirmed and strengthened.
Here ends the second part of the translation of the Bitcoin white paper.
Until I see you in the second part, stay safe🥰🥰
