In 2008, an unknown person or group named Satoshi Nakamoto published a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System". This 9-page document laid the foundation for the entire cryptocurrency industry.
The Problem: Trust
Traditional payments rely on third parties like banks to verify transactions. This creates a single point of failure and requires trust in these institutions.
The Solution: The Blockchain
Satoshi proposed a decentralized network where every transaction is recorded on a public ledger (the blockchain). This ledger is maintained by a network of computers (nodes) rather than a central bank.
Key Concepts
- Decentralization: No central authority controls the network.
- Proof of Work: A mechanism to prevent spam and secure the network.
- Limited Supply: Only 21 million Bitcoins will ever exist.
Today, Bitcoin is more than just digital cash; it's a store of value and a hedge against inflation.