It is a milestone that the crypto community can always look forward to. A birthday to celebrate as you’re still cleaning up after your New Year’s Eve party. So get the balloons out because today is the day Bitcoin turns fourteen. To help you celebrate this milestone, BeInCrypto is taking you on a quick jaunt through the currency’s storied history.
Bitcoin (BTC) first appeared in Satoshi Nakamoto’s Bitcoin Whitepaper, which was first published on October 31, 2008. The paper, called ‘Bitcoin: A Peer-to-Peer Electronic Cash System,’ laid out the basic tenets of the Bitcoin network. Namely, it was to be decentralized on a blockchain and would operate independently of any financial institution. No central bank and no central server. The anonymous programmer designed it to be moderated by code, computers, and the people who used it.
Satoshi’s project was also how the vast majority of the world came to know the concept of Proof-Of-Work. Which, until recently, was the favored consensus mechanism for blockchain-based cryptocurrencies. The Proof-of-Work algorithm wasn’t created by Bitcoin, as is widely believed; it merely propelled it into the mainstream.
The concept first appeared in a 1999 academic essay by Ari Juels and Markus Jakobsson called “Proofs of Work and Bread Pudding Protocols.” In the essay, the authors describe it as “a protocol in which a prover demonstrates to a verifier that she has expended a certain level of computational effort in a specified interval of time.”
Bitcoin introduced the concept of ‘mining’ as a competitive task and added an economic incentive in the form of a coin reward. Satoshi mined the first block of Bitcoin on January 3, 2009, less than four months after the whitepaper was published. Fourteen years ago this week.
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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