Satoshi Nakamoto is the name of the person or group of people who created the Bitcoin project and its reference software, Bitcoin Core. The Bitcoin is a virtual currency introduced in 2009 that has the property to avoid the use of third parties to verify transactions. A user who wants to use bitcoins creates a digital wallet and when he wants to transfer bitcoins to another person or entity his computer or device sends an encrypted electronic message to the general bitcoin network. This network accumulates several payment orders in coded blocks to later decipher those blocks and send each payment to the corresponding digital wallet. This process has a certain delay generated by the process of decoding the transactions. A user makes an encrypted transfer to another bitcoin user and reaches Bitcoin agents, people who are dedicated to deciphering these lines of code of bitcoin transfers. In this way, when the process ends, they know how much to assign to the person receiving the funds. These people carry out the whole process and in return receive a small commission (we call them miners).
Main Characteristics of Bitcoin
• 21 million: the number of units can never exceed 21 million bitcoins.
• Uncensored: no one can ban or censor valid transactions.
• Open source: the Bitcoin source code must always be accessible to everyone.
• Without permission: nobody can prevent participation in the network.
• Pseudoanonymous: it is not necessary to identify yourself to participate in the Bitcoin network.
• Fungible: each unit is interchangeable.
• Irreversible payments: confirmed transactions can not be modified or eliminated. The story is indelible.
Main Advantages of Bitcoin
Main Disadvantages of Bitcoin
• They have a chaotic and disorderly origin.
• Its value is very unstable and that worries economists.
• They need some improvements and advances in terms of security.
• It will be inevitable that public intervention will establish some laws and rules on this
kind of money.
The Most Relevant Events of the First Months of Life of BitCoin
(BTC)
2008 Financial Crisis
In 2008 to overcome the financial crisis that began with the collapse of subprime mortgages in the US, the main Central Banks initiate an extraordinary monetary policy and begin to implement unconventional measures to inject liquidity into the system. The global recession and the sovereign debt crisis in the countries of the European periphery mean that the solidity of the fiduciary currencies backed by governments begins to be questioned. The financial crisis is the perfect storm that plants the seed for the emergence of a new electronic currency, Bitcoin. Since the birth of the internet, there have been several attempts to create a digital currency. However, since digital money is only information, the same tolken can be duplicated and spent twice. The way to solve this problem is for a trusted source to verify if a token has already been spent or not. Although a centralized authority can be created to perform this function, the system is very vulnerable to attacks since there is only a single breakpoint.
Bitcoin The innovation:
Bitcoin solves the problem posed in digital currencies by creating a chain of blocks, a kind of public "accounting" book, in which all transactions are recorded and verified by an extensive and decentralized computer network.
The Bitcoin.org domain was registered in August 2008
In October 2008, the first document that explains the design of Bitcoin is published.
Satoshi Nakamoto
Satoshi Nakamoto is the pseudonym used by the creator or the creators of protocol
Bitcoin Today, his identity is unknown. In mid 2010 Satoshi
Nakamato made his last public contribution to the development of Bitcoin and passed the witness
to Garvin Andresen that today is the visible head of the development of Bitcoin.
2009: The genesis
In January 2009 the Bitcoin network was born with the publication with the launch of the first
Open source of a Bitcoin client.
Satoshi Nakamoto mines the first block of Bitcoins, for which he receives 50 Bitcoins,
Known how block genesis.
The first transaction in Bitcoins is made when Satoshi Nakamoto sends Bitcoins to
Hal Finney.
In October 2009, the first exchange of dollars for Bitcoins was made in the broker
New Liberty Standard. The price of this first transaction is 1,309.03 BTC for a
1 $.
2010 The year of Pizza
For the first time, everyone can buy bitcoins for dollars. The first types
of public exchanges are made at 1 BTC for $ 0.003.
In May 2010, the first purchase in Bitcoins was made. Someone is spending 10 thousand
Bitcoins in buying two pizzas. At the current exchange rate of $ 1,000 in 2013, the two pizzas cost about 10 million dollars.
In July 2010, Mt Gox started his services as a bitcoin broker and soon he became the broker with the highest purchase / sale volume of Bitcoins.
In August 2010, the first major vulnerability in the Bitcoin protocol arises. Until then, transactions were not verified before being included in the block chain. This allowed users to overcome the restrictions of Bitcoin and create an indefinite number of Bitcoins.
On August 15 the vulnerability is discovered and 184 billion bitcoins are issued in a single transaction. In a matter of hours the transaction is detected, deleted and the vulnerability fixed. Until today it has been the only vulnerability detected in the Bitcoin protocol.
November 2010. The value of the Bitcoins issued exceeds millions of dollars.
In December 2010, Bitcoin closed the year valued at $ 0.30.
"Today we already know its price, how nice it was to buy at 0.3"
