Satoshi Nakamoto, this mysterious and fantastic name, broke the existing pattern of the global financial system, created a new economic system, and opened a new era of cryptocurrency. However, this pseudonym has not been revealed until now; if it is not intentional, I believe that based on the current reconnaissance capabilities of various countries, it is not difficult to find this person.
I also have reason to believe that Satoshi Nakamoto, who does not want his identity to be revealed, must be hiding some ulterior motives and purposes.
Putting aside his different identity, I would like to talk about what this mysterious figure did that made people look up to him so highly.
In 2008, Satoshi Nakamoto published a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System", which detailed a decentralized digital currency - Bitcoin. So, what is the content of this paper and what is the main purpose of his paper? Bitcoin has created a new digital economy industry, and this article will reveal it to you one by one.
Satoshi Nakamoto’s creation was not worth two pizzas at the time
Satoshi Nakamoto's innovation was that he proposed a new digital currency - Bitcoin. At that time, the concept of digital currency was not new, but Satoshi Nakamoto's innovation was that he used blockchain technology to achieve decentralized currency issuance and transactions. Blockchain technology is a distributed database technology with the characteristics of decentralization, high security, and high transparency. Through blockchain technology, Bitcoin has achieved global currency transactions without borders without centralized institutions and managers.
A currency that does not rely on the issuance of a central agency did not seem to attract much attention at the time, except as a toy. The value orientation of the physical world is often hoped to be realized through a certain purchasing power. Bitcoin obviously did not have this strength at the time. Isn’t the American programmer who spent 20,000 bitcoins to buy two pizzas an example?
Compared with Manner employees, at that time, it was unknown how much labor of Manner employees could be bought with 20,000 bitcoins, and it might not be possible to buy any at all.
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The content of the paper may be a bit boring, but it is worth a glance (free guidance homepage introduction)
The main contents of Satoshi Nakamoto's paper "Bitcoin: A Peer-to-Peer Electronic Cash System" include the following aspects:
1. Digital signature: In order to ensure the security of Bitcoin transactions, Satoshi Nakamoto adopted digital signature technology. Digital signature technology is a security mechanism based on asymmetric encryption technology that can ensure the authenticity and non-repudiation of transactions.
2. Blockchain: Satoshi Nakamoto proposed the concept of blockchain, which records Bitcoin transactions in a series of blocks and connects the blocks in series to form an unalterable transaction record. The application of blockchain technology makes Bitcoin transactions highly transparent and secure.
3. Proof of Work: In order to prevent problems such as double spending, Satoshi Nakamoto designed the Proof of Work mechanism. Proof of Work is a method of ensuring network security through computing power competition. By solving complex mathematical problems, miners can get Bitcoin as a reward.
4. Network consensus: Satoshi Nakamoto proposed a currency issuance mechanism based on network consensus. Under the network consensus mechanism, the issuance and transaction of Bitcoin do not require centralized management, but rather the security and stability of the Bitcoin network are maintained by computers around the world.
At that time, it had no meaning except for the "toy" function.
In the early days when Satoshi Nakamoto proposed Bitcoin, its application was very limited. In 2009, the first block of Bitcoin, the Genesis Block, was mined, which marked the official launch of the Bitcoin network. However, in the first few years, Bitcoin did not receive widespread attention and application.
I don’t know if Satoshi Nakamoto ever thought of giving up during this period. He had 1 million bitcoins in his hand, but it seemed that he could do nothing. If you were in this situation, you would be scratching your head.
It was not until 2010 that a programmer exchanged 10,000 bitcoins for two pizzas, which was considered the first transaction in the history of Bitcoin. Since then, Bitcoin has gradually entered people's field of vision. However, this period did not represent the normalization of the value of Bitcoin, but was a great irony.
It was not until the popularity of Bitcoin gradually increased that more and more companies and individuals began to accept Bitcoin. In 2014, Microsoft announced that it would accept Bitcoin as a payment method for its online store. After the news was released, Bitcoin soared by 10%. It really is you help me, I help you. Slowly in the years that followed, taxis, hotels, etc. in some countries and regions also began to accept Bitcoin payments. But for us, the popularity of using Bitcoin for payment is far less than everyone imagines, and it even seems to be just a gimmick.
His influence only exists in the early stages of technological innovation.
The emergence of Bitcoin has a profound impact on the global financial system. As a decentralized digital currency, Bitcoin challenges the traditional currency issuance and trading model. Globally, Bitcoin trading and circulation do not need to rely on any centralized financial institutions, let alone people who maintain the operation of financial institutions. This saves a lot of money. It reduces transaction costs and improves transaction efficiency.
This may be a good thing, but it is not a good thing. For a country with a large population like ours, full automation is not something worth promoting. You cannot expect tens of millions of undergraduates to find "flexible" jobs every year. You cannot expect all undergraduates to work as clerks in Manner coffee shops. So sometimes, pure high technology is not a good thing. We cannot consume the achievements of the next 100 years in advance.
The emergence of Bitcoin has promoted the development and application of blockchain technology. Blockchain technology is not only used in the field of cryptocurrency, but also widely used in finance, supply chain, Internet of Things and other fields. Especially in the field of charity, I think it will be great if it is applied, why put it in this field? Think about it yourself. It cannot be tampered with, and the transaction is open and transparent. Think about it! Think about it! How can there be Guo Meimei and the Children's Charity Foundation? Everything can be overdrawn, but trust and conscience cannot be overdrawn.
The emergence of Bitcoin has also triggered a series of regulatory and legal issues. Due to the decentralized nature of Bitcoin, Bitcoin has become a tool for some illegal transactions and money laundering. These incidents have intensified, increasing the difficulty of regulation. How to effectively regulate cryptocurrencies has become an issue that needs to be resolved urgently.
Satoshi Nakamoto's Bitcoin paper opened the first year of cryptocurrency history and had a profound impact on the global financial system. The emergence of Bitcoin not only changed people's payment methods, but also promoted the development and application of Web3.0 blockchain technology, such as the emergence of Binance Coin. If future regulatory and legal issues are resolved together, it can play a greater role in the future, but I hope it will not replace it, but go hand in hand. We don't want more people to lose their jobs because of it, and "flexible employment".