Steemit Crypto Academy [Beginners’ Level] | Season 3 Week 6 | Satoshi Nakamoto, Wei Dai and Cryptocurrency Units of Measurement.

1 Who is Satoshi Nakamoto?

The name Satoshi Nakamoto is an anonymous name that is used by Bitcoin cryptocurrency creators. Albeit the name Satoshi Nakamoto is frequently synonymous with Bitcoin, the real person represented by the name hasn't been discovered thus leading numerous people to consider likely that it is a pseudonym for a person with a distinct identity or a group of people. It is however possible that Satoshi Nakamoto may not be an actual person considering the name possibly being a pseudonym for the inventor or inventors of Bitcoin who request or desire to stay anonymous.

For most people, the name Satoshi Nakamoto is the most mysterious character as far as cryptocurrency is concerned. To date, it remains unclear if the name points to a person or a group of people. The only known thing is that in 2008, a paper was published by Satoshi Nakamoto which jumpstarted the process of developing cryptocurrency.

In 2010, the involvement of Nakamoto with Bitcoin, however, ended. The incapability to insert a face to the name has led to notable supposition as to the identity of Nakamoto’s, especially as there is an increase in the number, notoriety, and popularity of cryptocurrencies.

2 Write on two claims/theories of Satoshi Nakamoto’s identity.

Nevertheless the real face behind the name Nakamoto has not been attributed to a person or persons that can be proven, it is roughly calculated that the value of bitcoins under the control of Nakamoto — which is believed to be nearly 1 million in number — may go beyond $50 billion in value. Considering that the possible highest limit of the generated number of bitcoins is 21 million, Nakamoto's stake of 5% of the entire bitcoin holdings has significant market power. Distinct people have been proposed as the actual or genuine Satoshi Nakamoto, nevertheless, none have been without question and beyond doubt proven to be Nakamoto.

The identity of bitcoin's founder - Satoshi Nakamoto - is one of its most enduring mysteries as little is known about him.
Nakamoto is imperative to the bitcoin ecosystem further away from his status as a founder. In addition, he is a philosophical frontman of sorts and often invoked among proponents of cryptocurrency debating the future developments of bitcoins.

Despite many efforts to reveal his identity, Nakamoto has proven elusive. Distinct people have been proposed as the actual or genuine Satoshi Nakamoto, nevertheless, none have been without question and beyond doubt proven to be Nakamoto. Here are four candidates:

Nick Szabo has perseveringly without variation or change denied the links connecting him to being Satoshi Nakamoto. However, when he's writing on bit gold is analyzed displays similarity with the original Bitcoin white paper. Furthermore, being amongst the very first to systematically investigate or delve into Bitcoin makes him a top contestant to the face behind Satoshi Nakamoto.

In March 2014, Newsweek identified Dorian Nakamoto as the creator of the currency. Promulgation of the article was the reason for a hullabaloo in the crypto and wider tech community, as this was the very first time there would be an attempt by a mainstream publication to learn the identity of the founder of bitcoin.

In addition, Newsweek claimed various similarities between Dorian Nakamoto and Satoshi Nakamoto. For instance, both purportedly held libertarian leanings as well as Japanese connection. Dorian who is Japanese-American, a graduate of physics from California Polytechnic, worked on classified defence projects. The author of the article in addition claimed Nakamoto stated he was no longer connected with bitcoin by participation or association and that he had turned it over to other people.

Later, Dorian Nakamoto disclaimed connection with the quote and claimed that he had wrongly understood the question. Dorian told the Associated Press, that he got nothing to do with it. Notwithstanding, the media circus wasn't without profit for Dorian Nakamoto. An online campaign realized more than 100 bitcoins on behalf of Dorian Nakamoto. The fund was a way of saying thanks by the bitcoin community’s”. Dorian Nakamoto in April 2014 came into view in a YouTube video alongside Andreas Antonopoulos the fundraiser to express gratitude to the bitcoin community for their support.

Craig Steven Wright is an Australian computer scientist as well as a businessman who, has in an open and public manner claimed to be the prime part of the team that invented bitcoin, as well as the identity behind the pseudonym Satoshi Nakamoto. Much of the media and the cryptocurrency community considered these claims are as untrue.

Two investigations having the same direction or tendency by Gizmodo and Wired in December 2015 alluded that Wright may have been the inventor of bitcoin. The BBC and The Economist published articles on May 2, 2016, asserting that Wright had digitally signed messages making use of cryptographic keys made during the early days of the development of bitcoin. The keys are in an inextricable manner linked to bitcoins blocks which are known to have been mined or created by Satoshi Nakamoto.

Harold Thomas Finney II is considered to be the pioneer and developer of Bitcoin currency Bitcoins story would not be complete without the mention of Hal Finney and his extraordinarily good contribution in the direction of its development as well as worldwide recognition and acceptance.

It is widely believed that he is Satoshi Nakamoto who brought in Bitcoin transactions that could exclusively take place between two persons. It is also believed that he lay concealed behind the made-up name. He could be worried about the sudden backward movement of the establishment. This is on the account that the concept was a challenge to the US Dollar. His revolutionary ideas guaranteed Bitcoins taking off and their universal acceptance as such.

His quotes on the efficacity of cryptocurrency have been acting as an instrument in inserting the credibility of Bitcoins. Although he wasn't the real inventor and author of this futuristic currency - he never actually claimed so - nevertheless Bitcoins would never have been transformed into is likely to be effective and applicable to real situations had it not been to Hal Finney’s rapid and proactive approach.

Hal made the very first Bitcoin transaction in consequence of that strongly communicating his own firmly held belief in the practical use and real-term value of this unparalleled cryptocurrency. He consequently guaranteed to transform it into reality. Initial scepticism diminished with speed when he becomes the first person to purchase Bitcoins. He additionally worked on its software to guarantee its authenticity and acceptability, he is however the most mysterious personality in the world of cryptocurrency.

3 Who is Wei Dai?

Wei Dai is a member of the cypherpunk community and a cryptographer, renowned for his contributions to the field of the con. He will be remembered in the world of cryptocurrencies for putting up a key precursor proposition for Bitcoin just before the establishment, beginning or creation of Satoshi Nakamoto and for the crypto library crypto ++".

The career works of Wei Dai started when he was a programmer in TerraSciences, an Acton, Massachusetts company. Dai worked at this company on security solutions development and the secure communication of control stations targeted at the oil and gas industry.

Afterwards, Wei Dai was part of the Microsoft Cryptography Research Group Company, which is located in Redmond, Washington. In the course of his work at Microsoft, he took part in the study, design and implementation of encryption systems for specialized applications. It was during that time when he registered the patents 5724279 y 6081598. Both patents targeted optimizing encryption algorithms within the Microsoft technology stack.

This was a proposal made by Wei Dai for the design of a distributed and anonymous electronic cash system. In November 1998, Dai published it on the cypherpunks mailing list and in this proposal, he expounded two ways to carry out his system.

The first proposal was the use of a Proof of Work (PoW) as a means by which money is created. To achieve this, b-money may use Hashcash to carry out the mining for b-money. Nevertheless, the design of the first protocol was impracticable, as a result of the need for synchronous channels. This situation impedes its execution in real environments divided into portions and dispensed in all parts of the world.

The second proposal expounded the use of a subset of servers, that maintain the accounts. These servers are responsible for publishing, managing and verifying the transaction data. For their part, the participators that carry out transactions substantiate their balances via the network. In addition, the system maintained the possibility of substantiating that inflation wasn't abused. For a server to be able to carry out its functions, it is supposed to have a certain amount of money as collateral. Should the server be dishonest, this guarantee would serve to a certain extent to compensate for the damage. At this point, the system Dai proposed is very akin to the scheme Proof of Participation (PoS).

4 What is the current value of Bitcoin on the day you are performing this task? Calculate the USD value of one satoshi of the current value. (Show full working and to 3 s.f).

As at the timeof this post, the value of Bitcoin is $39,258.62 according to coinmarketcap

(Screenshot from coinmarketcap site)

Solution

1 BTC = $39,258.62 and
1 satoshi = 1/100000000 x 1 BTC
1 satoshi = 1/100000000 x 39,258.62
∴ 1 satoshi = $0.0003925862
1 satoshi = $0.000393 (to 3 s.f)

5 What is the current value of Ether on the day you are performing this task? Calculate the USD value of one Gwei of the current value. (Show full working and to 3 s.f).

At the time of making this post, the value of ether is $2,614.23 according to coinmarketcap

(Screenshot from coinmarketcap site)

Solution

Since 1 Ether = $2,614.23 and
1 Gwei = 1/1000000000 x 1 Ether
1 Gwei = 1/1000000000 x 2,614.23
∴1 Gwei = $0.00000261423
1 Gwei = $0.00000261 (to 3 s.f)

6 Transfer 0.001 Steem to an account. Then send 0.0001 steam. Show what happens and state why.
(Screenshots with username tag).

When i entered the digit 0.001 steem i was able to do my transaction seamlessly as seen in the first and second screenshots which was successful.

But when I entered the digit 0.0001steem an error message came up immediately, telling me that "Use Only three digits of Precision".

This tells us that the steem Blockchain has a number of digits the system can conveniently process when we want to transact from it. Three digits is the maximum decimal digits acceptable by the steem Blockchain.

Thank you Prof for this opportunity to participate.