Tuesday, November 4, 2014

Original White Paper of Satoshi Nakamoto on Bitcoin

Its been a while since i posted an article here on my blog and for a time i wanted to post i considered an original paper that will make great global changes with the financial transaction and here it is, Original White Paper of Satoshi Nakamoto on Bitcoin"

If you want to read the original white paper of Satoshi Nakamoto who is considered the founder of bitcoin  this is the link BITCOIN . No one knew who is or the name Satoshi Nakamoto is a group but the technology is of the highest value in terms of invention. The space to post the original script could not be done caused its nine pages long.  The title of the paper which was posted in November 2008 was "A Peer to Peer Electronic Cash System" 

Here is the original abstract ;

" A purely peer to peer version of electronic cash would allow cash payments directly from one party to another without going to another financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a third party is still reguired to prevent double spending . We proposed a solution to the problem of double spending problem  using a peer to peer network. The network timestamps transactions by hashing them on the ongoing chain of hash based of work, forming a record  that cannot be changed without re doing the proof of work.  The longest chain not only serve as proof of the sequence of  events witnessed but proof that it came from the largest pool of CPU power .  As long as majority of CPU POWER is controlled by the nodes  that are not cooperating  to attack the network , they;ll generate the longest chain and outpace attackers.. The network itself requires  minimal structure. Messages are broadcast of a best effort basis, and nodes are can leave and rejoin the network at will., accepting the longest proof of work chain as proof of what had happened when they are gone. "

As what is described in the abstract ,
1. It is peer to peer transaction meaning its directly person to person without the need for a third party because with a third party there is more added cost . It is an electronic cash payment with a digital signature and its online. 

2. The problem of double spending which is seen as a problem could be solved with a peer to peer network where transaction are time stamps by hashing them on an on-going hash proof of work forming a record that could not be changed without re-doing all the proof of work.
3. The transaction is done with any computer and links to the chain of proof of work . The longest chain is not only a witnessed of events but proof that it came from the largest pool of CPU power. The chain cannot be attacked as long as all of the connected nodes are cooperating otherwise it will repel any attackers.
4. It is a simple structure.