What is the Bitcoin Whitepaper?
The Bitcoin Whitepaper is a document that laid the foundation for the Bitcoin cryptocurrency. This document was distributed by Satoshi, the founder of Bitcoin, on November 1, 2008, in an email to the Cryptography Mailing List.
The white paper was called “Bitcoin: A Peer-to-Peer Electronic Cash System” and was composed of only eight pages. However, these eight pages set out the entire technical basis for Bitcoin, cryptocurrencies in general, and blockchain technology.
Today, this white paper is considered the founding document for digital currencies. The Bitcoin white paper addresses several cryptographic concepts, such as signatures and Merkle or hash trees.
The goal is the creation of a decentralized payment system that is based entirely on a digital currency. This approach is fundamentally different from previous attempts to create a digital currency, because Bitcoin does not need confidence in the activities of a third party.
What sets Bitcoin Whitepaper apart from other digital currencies?
The white paper expressed the idea that verification of transactions should be performed using a proof-of-work algorithm. For this, computing capacities are needed, which are used for the creation of blocks.
These blocks are immutable and chronological, so each transaction in the blockchain is transparent and traceable. Furthermore, the white paper proves that it is not possible to manipulate this blockchain.
This increases the confidence of users, as a third party is no longer needed. The development of the token was led by Satoshi Nakamoto until the end of 2010, when Satoshi disappeared.
Due to anonymization procedures, the true identity of the Bitcoin inventor, whether person or entity, is unknown to this day.