Why did Satoshi come up with a concept of Bitcoin in the first place?
What kind of problems was he trying to solve? What has been the biggest factor for the global adoption of Bitcoin?
Satoshi's white paper offered the world a solution to a question that has been unanswerable by the traditional banking system we're using today, which is, "how do you transfer value between two people without a trusted intermediary in the middle?"
Satoshi asserted, "what is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other."
Bitcoin allows two people to trade value through a blockchain system in ways that are more efficient, more open, and more secure.
We will unpack that a little bit more. Meet me again in our next lesson, "How Bitcoin Works"
So how does Bitcoin allow us to trade value without the help of a middle man? Bitcoin network is run by a technology called blockchain. It is defined as a decentralized, distributed and immutable ledger.
Blockchain is decentralized in a way that allows all the historical transactions to be recorded on a public ledger. This eliminates the need for a trusted intermediary that records and verifies the transactions for us, such as banks.
Blockchain is distributed so that anyone to be a part of the network globally. It is a public ledger which means all network participants can track and assess bitcoin transactions in real time. It is a network of peer-to-peer computers scattered across the world.
Blockchain is immutable, which means the transactional data entered is irreversible. The records permanently remain and cannot be altered nor destroyed. Learn more about the immutability of Bitcoin in our next lesson, "Can we trust Bitcoin?"
How do you trust a new person? Well, it will take time. A stranger becomes a friend when enough time is spent to get to know that person. Going through some difficult times together to test whether the relationship could still stand is also essential.
The same goes for Bitcoin. Considering the fact that it’s been less than 10 years since Bitcoin was widely adopted, it is a relatively unfamiliar system than the traditional banking system used for centuries.
Bitcoin, could still feel like a stranger to many of us. According to a survey by the Harris Poll, more than 1 in 10 American adults have never heard of cryptocurrencies such as Bitcoin, Ethereum and Dogecoin.
News that we hear about Bitcoin, which are mostly about volatility of the price,
regulations in countries, and even hacking incidents could also make us feel more nervous.
What we need is a deeper understanding of Bitcoin. Let's keep digging. Next time, we will compare Bitcoin with the traditional banking system.
How do you trust a new person? Well, it will take time. A stranger becomes a friend when enough time is spent to get to know that person. Going through some difficult times together to test whether the relationship could still stand is also essential.
The same goes for Bitcoin. Considering the fact that it’s been less than 10 years since Bitcoin was widely adopted, it is a relatively unfamiliar system than the traditional banking system used for centuries.
Bitcoin, could still feel like a stranger to many of us. According to a survey by the Harris Poll, more than 1 in 10 American adults have never heard of cryptocurrencies such as Bitcoin, Ethereum and Dogecoin.
News that we hear about Bitcoin, which are mostly about volatility of the price,
regulations in countries, and even hacking incidents could also make us feel more nervous.
What we need is a deeper understanding of Bitcoin. Let's keep digging. Next time, we will compare Bitcoin with the traditional banking system.
#Bitcoin
#Bitcoin #Blockchain
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