Who Invented Bitcoin?
It is important to begin at the beginning in order to understand how bitcoin works. It is fascinating to ask the question “Who created bitcoin?” because, despite all the digging done by journalists and members the crypto community, the creator of bitcoin remains anonymous ten years after its invention.
- In late 2008, the principles of Bitcoin were first presented in a whitepaper published online by Satoshi Nakamoto or a group.
- Although this paper was not the first to propose digital money, it did draw on computer science and cryptography. However, it was an elegant solution to the problem establishing trust between different online entities. This is where people can be hiding (like bitcoin’s creator) or physically located on another side of the globe.
- Nakamoto created a pair interconnected concepts: The bitcoin private key, and the blockchain ledger. You can control bitcoin by using a private key, which is a string of random numbers and letters that unlocks the virtual vault containing your purchase. Every private key can be tracked in the blockchain, a virtual ledger.
Bitcoin was a breakthrough in Computer Science
It solved a fundamental problem in internet commerce: how can you transfer value between two individuals without having a trusted intermediary (like an institution bank)? The invention of bitcoin solves this problem. It allows financial transactions to be made across borders without the need for intermediaries (such as banks, credit-card companies or lenders) and it can even be used by governments. It allows any two people, regardless of where they may live, to send each other payments without having to go through those gatekeepers. This creates an open financial system that can be more efficient, free and innovative. This is bitcoin in a nutshell.