Ten years ago, a Plan that described the way to a digital currency and you also missed the name: Bitcoin circulated on the Internet for the first Time. The copyright of this Instruction, nobody knows until today.
His Name is Satoshi Nakamoto, he is probably sitting somewhere in Japan. Its existence, but unproven. The Instructions for Bitcoin, which has signed this mysterious author with this name. To this day, nobody knows whether it is a single person or a group of programmers. His or her goal, anyway, in the midst of the greatest financial crisis, it is clear that A digital money system, the banks and Central banks redundant.
Satoshi led the development of Bitcoins by the end of 2010. As long as you could read his posts and discussion litters in Online forums. Then he just stopped posting and disappeared from the (virtual) image area. No one had met Satoshi Nakamoto in the real world, ever. When he went online, he used the method always Anonymization. The identity of the inventor of Bitcoin is one of the large Internet puzzle. A spirit of the myths. It is clear, however: Satoshi Nakamoto has defined the birth of Bitcoin. And he is the father of virtual currencies, which are based on the principle of a Blockchain.
And how does it work?
The principle is easiest to understand if you look at the vulnerability of the current monetary system: a third party, a Bank, or Central Bank, which confirmed that money is available and the user is allowed to change. An account at a savings Bank, or Bank insured that a payment of rent or any sum of money can change hands. In the last instance, the Central Bank ensures that the money is really available.
The Problem of the Bitcoin copyright looks exactly herein: Always a third instance is needed to create trust: in Order to guarantee that the same money cannot be used twice. This is a Problem that Satoshi will deal with the Bitcoin technology. The solution is not: We rely on a centralized third instance, but act in public. All participants in the Bitcoin money system have the same information with regard to the distribution of the money. Simple: Each participant has stored at any time on his computer, how the money is distributed currently.
The Blockchain is a network in which all parties Involved use the same Software. This Software collects the information about the distribution of the Bitcoins in blocks. A new transaction takes place, it is Packed with all the preceding in a new Block to the existing blocks. For security reasons, the blocks are encrypted. These rows of blocks form a chain – hence the Name Blockchain.
Since all the participants can equally have access to the information within the network and verify the Blockchain as a sure that anyone Who wants to manipulate you would manipulate the linked history of the transactions, if possible, on all computers. And the is excluded – as of today – virtually.
The Australian Craig Wright claimed 2016 to be Satoshi Nakamoto remained, however, the evidence guilty
And the is also safe?
However, even in the brave new digital world, nothing is for free. While banks and Central banks have to use in the real world, many people and resources to ensure the safety and security of the system, gobble up Bitcoin transactions tons of energy. Responsible for the so-called “Miner”, prospector. This Computer will have to solve certain puzzles. Who is faster than all the others, it is allowed to append a data block to the chain. For the computational effort there is a reward in the Form of Bitcoins. While it is difficult to calculate the amount of required energy. However, a Dutch researcher has recently calculated that the expense for the Bitcoin Mining already corresponds to the annual energy consumption of Ireland.
In addition, the Lack of a Central Bank also has a downside: There is no instance, which pursues the goal of stable prices. Investors were able to learn the euphoric or painful as the price of Bitcoin shot up late last year in the regions of $ 20,000. And then, almost as violently, back SAG. And finally, Criminals can use the basic anonymity of the system to make illegal transactions.
Can I use the technology as well, if I have no Bitcoins?
In any case, the Blockchain technology in a smaller scale. And that is exactly what many companies are currently working on. You can make the technology usable, for example, an unmistakable stamp Were to impose – they make up about fake for sure. The pharmaceutical corporations like Merck to the test. Contracts are on the basis of the Blockchain technology in a tamper-proof design. And they can be associated with an automatic performance of the contract.
AXA has introduced insurance as a first, a Blockchain-based insurance for flight delays. The System automatically checks the official delay tables for flights. And then responds, also automatically, as soon as a flight of more than two hours late. The customer has nothing to report and nothing more in the way forward: The compensation power, as follows, defined in the contract automatically in Euro, not in Bitcoin.