Learning Bitcoin Part -1

Over the next few weeks, we will learn the basics and fundamentals of bitcoin.

Today we will be talking about the origin of bitcoin.

Who created Bitcoin?

This is one of the well-guarded secret and mystery.
No one actually knows who created bitcoin, but we have a name attributed to it - Satoshi Nakamoto.
This Person or Collection of persons authored a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System, on October 31, 2008.
This whitepaper was posted on the cryptography mailing list below is the original content of the email.

I've been working on a new electronic cash system that's fully

peer-to-peer, with no trusted third party.

The paper is available at:


The main properties:

Double-spending is prevented with a peer-to-peer network.

No mint or other trusted parties.

Participants can be anonymous.

New coins are made from Hashcash style proof-of-work.

The proof-of-work for new coin generation also powers the

network to prevent double-spending.

Bitcoin: A Peer-to-Peer Electronic Cash System

Abstract. A purely peer-to-peer version of electronic cash would

allow online payments to be sent directly from one party to another

without the burdens of going through a financial institution.

Digital signatures provide part of the solution, but the main

benefits are lost if a trusted party is still required to prevent

double-spending. We propose a solution to the double-spending

problem using a peer-to-peer network. The network timestamps

transactions by hashing them into an ongoing chain of hash-based

proof-of-work, forming a record that cannot be changed without

redoing the proof-of-work. The longest chain not only serves as

proof of the sequence of events witnessed, but proof that it came

from the largest pool of CPU power. As long as honest nodes control

the most CPU power on the network, they can generate the longest

chain and outpace any attackers. The network itself requires

minimal structure. Messages are broadcasted on a best effort basis,

and nodes can leave and rejoin the network at will, accepting the

longest proof-of-work chain as proof of what happened while they

were gone.

Full paper at:


Satoshi Nakamoto

On 9 January 2009, Nakamoto released version 0.1 of the bitcoin software on SourceForge, and launched the network by defining the genesis block of bitcoin (block number 0), which had a reward of 50 bitcoins.


Bitcoin is combination of existing Technology

Bitcoin is not something which has popped up out of blue, but it was combination of various technologies which lead to it.

Below are a few technology inventions that “Satoshi Nakamoto” uses, mentions, and gives credit to via his whitepaper:

  1. digital cash technology and protocol called ecash by David Chaum and Stefan Brands

  2. “proof of work” system called hashcash by Adam Back for spam monitoring and control, which was eventually built upon by Hal Finney, who created a reusable proof-of-work protocol

  3. distributed scarcity system built upon “b-money” created by Wei Dai

  4. technology called “bitgold” by Nick Szabo that proposed a mechanism for market inflation control

The key point to mention all of the above-mentioned folks have denied being Satoshi Nakamoto or being part of the group being called “Satoshi Nakamoto”

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