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Bitcoin, Instrument of Satoshi Nakamoto, World Saviour.
How Bitcoin is Uncannily Unlocking the Existential Problems Facing Humanity.
The Past
In 2008, just after the Banking crash of that year, the mysterious unknown individual, calling himself Satoshi Nakamoto, made public what is now known as the “Bitcoin Whitepaper”, disappearing himself shortly afterwards, without trace, never to be seen or known since.
His paper described an alternative digital monetary system, designed to eliminate the problems we had just experienced with Banks and conventional money.
Before his disappearance, he and some other individuals experimented amongst themselves, forming a small decentralised networked community, testing the first implementations of the Bitcoin code.
At the heart of the code is an algorithm that creates digital tokens; “Bitcoins”, corresponding to the amount of work done to solve a mathematical puzzle.
Each user in the community runs an instance of the code, connected to every other user by a secure peer-to-peer protocol, and every individual can choose to try to solve the puzzle.
Like a brute force attack on something secure, all that is needed for any user to crack a puzzle, is enough computing power, and enough time.
The more computing power, the less time is needed. Higher powered users have a better chance of being first to cracking the puzzle. Only one user can crack a puzzle, after which all users move on to the next puzzle.
Thus each Bitcoin actually requires a certain amount of energy to crack it.
This “Proof-of-Work” activity of solving the puzzles to obtain Bitcoins in return, has become known as “Bitcoin Mining”.
The algorithm is such that at successive milestones, in terms of the number of tokens mined, the mining difficulty throughout the network increases automatically, by making the puzzle more difficult to solve.
The algorithm contains a hard limit of around 21 million which can be produced in total. The puzzle difficulty increases exponentially until then.
