The celebration of the 13th anniversary of the Bitcoin Whitepaper (BTC) has arrived as the world continues to grapple with the global pandemic, fear of inflation, the dizzying trend of memcoin mania, and the growing institutional use of cryptocurrency.
On October 31, 2008, Satoshi Nakamoto released the Bitcoin White Paper for the crypto mailing list hosted on Metzdow. Metzdow’s mailing list was compiled by a group of cryptographers and was filled with ideas aimed at creating a form of digital currency, some of which were cited in the Bitcoin White Paper.
Satoshi’s white paper contained a post titled “Bitcoin P2P Electronic Paper Money,” in which Nakamoto explained that his digital currency is a fully digital peer-to-peer (P2P) currency and does not require any trusted third party for the transaction. take place. With a peer-to-peer network, Bitcoin has solved the problem of double consumption. Bitcoin also allowed network participants to remain anonymous and was protected using the Proof of Work (PoW) consensus algorithm.
At the time, the White Paper was not received in the way people expected, knowing what they know today. Only a few people have looked at our Nakamoto email and responded with their thoughts and concerns about Bitcoin.
Leo Matchett, co-founder and CEO of Decentralized Pictures, a nonprofit that supports independent filmmakers, told Cointelegraph that the Bitcoin White Paper “is the beginning of a new era of monetary sovereignty,” adding, “Satoshi was on his feet. the shoulders of giants and the problem is that its sweetness could not be what it was before. ”
Matchett also argued that the White Paper “was indeed the beginning of a new era for the world’s monetary systems” because it “gave rise to the idea that decentralization is of greater value than centralization.” In fact, the Bitcoin idea tried to solve many problems, including fraud, severe regression, and counterparty risk.
After the White Paper was posted on the cryptography mailing list, discussion of the document slowly but surely began to grow with the launch of the Bitcoin network in early 2009. At the time, Hal Finney, a ransomware who worked with PGP to develop innovative cryptographic products, was already in use.
Hal Finney is best known in the field of cryptography for his involvement in the first Bitcoin transaction and for being the first person since Nakamoto to launch a copy of the network through a node. After setting up, Vinnie tweeted that he was “running bitcoin.”
Cypherpunk, who tragically died in 2014 as a result of complications from ALS and his body was frozen by the Alcor Life Extension Fund, described his work with Satoshi in a forum post where he revealed that he had started mining BTC in Block 70-something and “, after some correspondence, sent Satoshi 10 bitcoin to him to check if the network was working or not.
There was no demand for space on the blockchain at the time, so the transaction was processed with a 0 BTC fee associated with it. At the time, 10 BTC was useless, but the transaction helped fix some mistakes in the early days of BTC.
The first Bitcoin transaction made it clear that the network is working, and while there is still a lot of work to be done to get to where it is today, it was the first step in the right direction. A year later, in 2010, the first commercial Bitcoin transaction will take place.
$ 600 million + pizza
On May 18, 2010, developer Laszlo Hanets posted a post on the Bitcointalk forum offering 10,000 bitcoins for “a few pizzas”. Hanets offered to pay in coins to another forum member if they brought him a large pizza, which might even be homemade.
The message was met with skepticism, as 10,000 bitcoins at the time were not worth or were close to the price of two pizzas. It wasn’t until May 22, after follow-up action, that Haniec reported that he had “successfully exchanged 10,000 bitcoins for pizza.”
At the time, despite the decline of bitcoin and the small size of the community, one user noted that “an important milestone was reached.” This day is now known in the crypto community as “Bitcoin Pizza Day”.
Bitcoin’s first commercial transaction created an ecosystem that is now worth over $ 2 trillion and has proven that Bitcoin has a number of uses to consider. For the first time in history, Bitcoin was used as a real medium of exchange.
Industry with a multi-billion dollar turnover
The price of the cryptocurrency will rise over time, partly because of its adoption and partly because of speculators who want to profit from its enormous volatility. In the midst of it all, new businesses were created that eventually grew into a large asset class.
Speaking to Cointelegraph, Micha Growar, head of global business development at cryptocurrency exchange Kraken, said: “No one could have foreseen the tidal wave of change caused by the publication of the 9-page PDF file.”