The Bitcoin whitepaper, titled "Bitcoin: A Peer-to-Peer Electronic Cash System", presents the concept of a decentralized digital currency designed to eliminate the need for intermediaries like banks. Key ideas include:
1. Peer-to-Peer Network: Bitcoin enables direct transactions between users without relying on third-party financial institutions.
2. Proof-of-Work (PoW): Bitcoin uses PoW to secure the network. Miners solve complex cryptographic puzzles to validate transactions, which are recorded on the blockchain.
3. Double-Spending Prevention: The blockchain ensures that once a transaction is recorded, it cannot be altered, preventing the same Bitcoin from being spent twice.
4. Decentralization: Bitcoin operates on a decentralized network, meaning no single authority or institution controls it.
5. Fixed Supply: The total supply of Bitcoin is capped at 21 million coins, making it deflationary by design.
This system allows users to make secure, transparent, and irreversible transactions without relying on trust in third parties.
