In this post, we will see a brief history of the birth of the Bitcoin cryptocurrency and its origin.
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History of Bitcoin
Bitcoin emerged in the middle of the financial crisis of 2008.
In 2008, global markets were in decline and banks were receiving massive capital injections trying to stay afloat.
It was a time of total panic and the world had no visibility of where the global economy was going.
Out of all that panic, on October 31, 2008, a white paper was published, called “Bitcoin: A Peer-to-Peer Electronic Cash System.
That translates to Bitcoin, a user-to-user electronic cash system, and it was published by someone named Satoshi Nakamoto.
In summary, what Satoshi Nakamoto presented in the document was the concept of disintermediation for cash.
That is, that there was no need for a bank, credit card, or any other type of entity in everything that had to be effective user-to-user payments.
The document was published on October 31, 2008, and shortly after that, on January 3, 2009, Satoshi Nakamoto released the Bitcoin software and published what was the genesis block that was the first Bitcoin block where the whole revolution we know today as Bitcoin began.
Bitcoin was not the first attempt
Bitcoin was not the first attempt to create electronic cash and there are even many attempts prior to Bitcoin.
In 1976, Martin Hellman and Whitfield Diffie, two famous cryptographers who are considered to be the fathers of public-key cryptography, published a white paper called “New Directions in Cryptography”.
In this white paper, they presented an idea of using multiple distributed ledgers, something that is now an integral part of Bitcoin.
In 1983, David Chaum published “Ecash” which was a digital currency but was a centralized concept and did not succeed.
In 1997, Adam Back created Hashcash Proof-of-Work, which is the consensus algorithm used in Bitcoin today to keep all the miners’ ledgers in sync.
In 1997, Wei Dai created b-money and in 1998, Nick Szabo created Bitgold, and this was special because Bitgold is almost all that Bitcoin is today, and because of this many people think that Nick Szabo may be Satoshi Nakamoto. Nothing has been proven, but there are many people who think so.