FinancialCentre Reports- Solving the Satoshi Nakamoto puzzle


London, UK, 7th Dec 2021, The name behind the world-famous bitcoin is Satoshi Nakamoto. He was a cryptographic expert and it is said that he is a computer programmer in the US intelligence service and had experience in many cyber technology companies since his graduation.

Autumn 2008, a paper named “Bitcoin: A peer-to-peer Electronic Cash System” was posted on the web by Satoshi Nakamoto. This paper described the basic idea of Bitcoin, which is a decentralised P2P electronic cash system. If people transfer money to any other nodes in the network, one node pays all these transactions to others simultaneously, so each node can confirm all these transactions are valid by checking them roughly at once.

This P2P module uses Hashcash as PoW (Proof-of-Work). FinancialCentre Broker Troy Deloitte told us that Hashcash is originally a PoW system for e-mail spam control, which makes it possible to know whether the sender has done enough computational work for sending an email. This Hashcash concept can be used as PoW in Bitcoin and other P2P module designs.

In December 2008, Satoshi Nakamoto announced that he would release a program as open-source soon. In the first month of  2009, the first version of the Bitcoin client appeared and it is said that Satoshi mined the first 50 bitcoins using his computer at that time. He had been accumulating bitcoins since then to avoid the centralization of this system by using only his own nodes.

Satoshi Nakamoto disappeared suddenly in 2010 and this event makes people think about who he really is and what he is doing now. However, some people say that he died as early as 2008 because of some disease although there is no evidence to prove it. As Bitcoin’s inventor left the community suddenly, Satoshi has not provided any information regarding details of Bitcoin’s protocol. Once he left, the main table was turned over to Gavin Andresen, the former lead developer and now principal scientist at the MIT Digital Currency Initiative (DCI). But Satoshi’s expectation that people would try many alternative P2P networks like Git shows his viewpoint on the issue.

Recent developments

Craig Wright is an Australian computer expert who claimed he was Satoshi Nakamoto. In May 2016, Wright posted a blog that described how he found proof that only the real Satoshi could have created Bitcoin. Supporters of Wright claim that a series of posts and emails between Wright and IT security expert Dave Kleiman prove beyond doubt that they were involved in the creation of bitcoin.

He recently announced that he was Satoshi, but this announcement is still doubted by many experts because currently, there is no significant evidence to prove that it is true. According to a court case in West Palm Beach, Fla. Ira Kleiman, brother of Mr David Kleiman (Computer Security Specialist) said that his brother together with Mr Wright developed the world-famous digital currency and hence he is entitled to half of Mr Wright’s wealth.

Mr Deloitte says that this is undoubtedly one of the greatest mysteries of our time and what is more interesting is that it might never be revealed. He added that the greatest fear of Satoshi Nakamoto might have been the fear of being prosecuted by the government, which could have forced him to hide his identity. His idea was to decentralise the currency and make it independent of the central bank, but he could not implement this plan himself in Australia.

It is said that Satoshi Nakamoto was involved in many cyber technology companies in Silicon Valley since graduating from college. We can assume that he used his experience to create Bitcoin initially as a type of experiment for people around the world to become aware of cyber currency, which is a form of commodity. Bitcoin’s price skyrocketed in 2016 and this made many people want to know about Bitcoin. Bitcoin has been around for nearly 9 years since its release and Satoshi Nakamoto would have wanted it to be decentralized by now.

Impacts

In the end, Bitcoin was created by a mysterious person and its progress depends on many people’s efforts. No matter who Satoshi Nakamoto is, his idea that we do not need any bank or central authority will last forever.

The younger generation is growing up with the Internet and they prefer virtual currency. In this way, it is not difficult to predict that the position of fiat currency will be undermined over time by digital currency. Mr Nakamoto’s idea could be realised in the future because today people already prefer virtual currency over fiat currency. So far, there is no evidence that Satoshi Nakamoto is dead or has abandoned his digital currency, but if he does leave it one day, this might mark the end of an era. We can only hope that Satoshi Nakamoto will reveal himself one day. With evidence of his identity, there would be no more speculation about the world’s most interesting cyber currency.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.