Isn’t it just twelve years since October 31, 2008, when Satoshi Nakamoto published a modest nine-page white paper describing a new online payment system called Bitcoin? Depending on where you stand, an unknown alias white paper has either amplified the fintech revolution or, as some believe, “the biggest fraud in history.”
To commemorate the anniversary of the release of Bitcoin: A Peer-to-Peer Electronic Money System, Cointelegraph offered to comment on the author’s ongoing vision. Was Satoshi Nakamoto happy with how Bitcoin and blockchain technology has evolved and evolved over the past 12 years?
James Engle, associate professor at Georgetown University’s McDonough School of Business, told Cointelegraph: “He would be delighted to see his vision evolve and new applications,” said Gina Peters, assistant professor of economics at the University of Chicago’s Department of Economics. – told Cointelegraph.
“The impact of the Bitcoin White Paper (BTC) goes beyond funding,” Garrick Hillman, Head of Research at Blockchain.com told Cointelegraph. “Its impact is worth considering alongside other major technical innovations such as the personal computer and the Internet.”
Will Satoshi be disappointed?
Satoshi’s vision was a P2P system, or decentralized digital money system, as stated in the name of the Storting. The problem with digital commerce, Satoshi wrote, was that she only insisted that “financial institutions relying on third parties to process electronic payments.” It had a congenital weakness. Transactions could be canceled, banks had to settle disputes, and transaction costs were high. Satoshi’s solution is presented in the second paragraph of the introduction to the White Paper:
“An electronic payment system based on encryption confirmation is required, rather than trust, so that two willing parties can conduct direct transactions with each other without the need for a trusted third party.”
In the 12 years since the article was published, the need for P2P transactions – without disturbing third parties – has become a matter of faith among bitcoin users. But on reflection, did this aspect of Satoshi’s vision come true? David Yermak, professor of economics at New York University’s Leonard N. Stern School of Business, told Cointelegraph:
“I think the biggest source of Nakamoto’s frustration will be the growing centralization of blockchain governance in organizations like mining pools and even central banks that are on the verge of launching their own digital currencies. Nakamoto’s job was to challenge the hegemony of centralization. Digital are the central banks themselves. ”
Angel went on to say, “Satoshi would be terrified of the concentrated mining pool policy that currently dominates the Bitcoin protocol.” At the same time, Peters added that Satoshi would be disappointed because “the original bitcoin transactions were not made through peer-to-peer trading, but through brokers from exchanges or central companies.”
Get rid of gimmicks
The problem of fraud has long been associated with digital transactions, and in the Bitcoin whitepaper, Satoshi proposed a way to tackle the classic double-spend problem where criminals use the same currency twice, which is easy to do electronically. currency. He did this by using a “peer-to-peer distributed timestamp server to generate arithmetic data for transaction history.” Thus, Satoshi explained, “Mathematically irreversible transactions will protect sellers from fraud.”
Solving the problem of dual use is today considered one of Satoshi’s greatest achievements. Its Bitcoin blockchain has never been hacked (although this cannot be said for many crypto exchanges that trade BTC). Digital payment scams have yet to be eliminated from the system. Would that scare the founder of Bitcoin?
Angel said Satoshi “would be disappointed that bitcoin did not become everyday means of payment, but instead became a valuable vault for scaring fat cats and tax evaders.” Moreover, Satoshi “would have been saddened by the increased inequality that Bitcoin history has caused, as few early adopters became whales and 99.99999% of the population did not.” However, it is speculated that the creator of bitcoin – whether male, female, or group – wondered about the scale of BTC adoption, as Ermak explained:
“Nakamoto will be amazed at the growth of blockchain projects and the many thousands of digital currencies and tokens created in the form of bitcoins.