#BNBATH880 The Bitcoin white paper is the first foundational document in the history of digital currencies. It was written by a person (or group) under the pseudonym Satoshi Nakamoto on October 31, 2008, titled:
📜 Summary of the Bitcoin White Paper:
The Problem:
Electronic payment systems at that time relied on a trusted third party like banks or transfer companies (PayPal and others).
This mediation causes high fees, delays, and issues with cross-border transactions.
The Solution Proposed by Satoshi:
A decentralized electronic cash system that does not rely on a third party.
How It Works:
Using a peer-to-peer (P2P) network.
All transactions are recorded in a distributed ledger (Blockchain), where each transaction is recorded permanently and transparently.
Transaction validation is done through "Proof of Work" which prevents manipulation and solves the "double spending" problem.
Mining:
Computers in the network compete to solve mathematical problems (Hashing).
The first device to solve the problem adds a new "block" to the blockchain and receives a reward in Bitcoin.
This system gradually issues new Bitcoin.
Limited Supply:
The maximum number of Bitcoins is capped at 21 million coins.
This creates scarcity similar to gold and prevents excessive inflation.
🏛 Importance of the White Paper:
It was the spark that ignited the era of digital currencies.
