13 years ago, one of the most innovative paper of 21st century on alternative Electronic Cash System also famously known as Bitcoin was first published by an unknown person or group known as Satoshi Nakamoto.
The Blueprint for Bitcoin (White paper) was published with the title Bitcoin: A Peer-to-Peer Electronic Cash System. It anticipated the need for a self-sustaining, self-governing, secured and limited-quantity peer-to-peer online payment system. As a result, on 3rd of Jan 2009 Bitcoin Blockchain came into life and was valued around $0.0008 at the time.
While traditional financial institutions initially saw Bitcoin as a danger, thirteen years of community support and a growing user base have turned Bitcoin into one of the most profitable internet-era enterprises. After the birth of Bitcoin, it has seen a significant growth of 7,749,999,900%. It now trades comfortably over $60,000.
The White paper written by Satoshi Nakamoto proposes a way to dodge double-spending without relying on a third party. The white paper states the use of honest nodes, which affirms the transactions by outstripping malicious actors in terms of raw computer central processing unit (CPU) power.
Intriguingly, the Bitcoin white paper contains 15 “honest” and one “dishonest” mentions, indicating the importance of honest nodes in ensuring transaction credibility.
Satoshi Nakamoto said it this way:
We have proposed a system for electronic transactions without relying on trust. They [honest nodes] vote with their CPU power, expressing their acceptance of valid blocks by working on extending them and rejecting invalid blocks by refusing to work on them.
In the Bitcoin blockchain network, the mining reward as of now is 6.25000000 BTC. When the Bitcoin supply reaches its max (21 million BTC), the Bitcoin community needs to modify its rules to reward miners who affirm the transactions on the Bitcoins’ blockchain.
Despite the strong opposition from traditional financial institutions from all around the world, Bitcoin managed to become the legal tender of El Salvador. The long-term impact of Bitcoin on El Salvador’s bloated economy will determine whether the asset becomes popular in other countries.
Presently, the whole ecosystem of crypto and Bitcoin are attracting more and more investors from all walks of life, making it a viable investment option.
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