One of the technological world’s biggest mystery to this day, is the true identity of Satoshi Nakamoto, the computer programmer (or programmers) who created and developed the digital currency known as Bitcoin. There is much speculation as to whether Satoshi is an actual person, or a collection of individuals using a pseudonym for a consortium of cypherpunk developers that designed wrote and tested the Bitcoin experiment.
The background of Bitcoin
Created in 2009, Bitcoin is a digital currency introduced as open source software by MIT student, Satoshi Nakamoto. On November 2008, a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” authored by Satoshi was posted to a cryptography mailing list, sparking the first ever mention of Bitcoin. In January 2009, the bitcoin network was established after Satoshi Nakamoto mined the genesis block, the first ever block on the chain. Since the inception of bitcoin, the currency has peaked at $19,140.70 USD.
What was the vision of Bitcoin – Decentralized financial system nondependent on banks and corporations
Bitcoin is built on the notion that money is any object or record, that is accepted as payment for goods and services and repayment of debts in a given country or socio-economic grouping. To control the creation and transfer of money, Bitcoin uses cryptography, or mathematical equations rather than relying on governments or central banking authorities. Transfers for loans, sales, purchases or any other methods of payment can be processed by anybody, using a desktop, smart phone, tablet, or laptop. This is all possible without the need for a financial institution to act as an intermediary or recording agent.
Bitcoin is not just money for the internet; it is a programming language that allows for the decentralization of any information system. In order to understand this let’s use the analogy of the internet; which allows any individual admission to a global communication and information network instantaneously. In this same way, Bitcoin is allowing individuals’ instant access to a free global financial network. The implication of a decentralized financial network free from the corruption of third party moderators is overwhelming. Ponder for a moment introducing 7 billion potential consumers to the global marketplace. The possibilities for economic growth and innovation are exponential. This exists because Satoshi Nakamoto, the inventor of Bitcoin, chose to create open source software that gave all users equal say. The power of the Bitcoin network is its users, which currently exceeds the combined computing power of the top 600 super computers on Earth. This equates to a network, which is for all intents of purposes, impenetrable. Essentially, each individual computer acts as a voting node. The validity of the current Bitcoin equation, otherwise known as the block chain, is then determined by the nodes. In order for the block chain to be verified, a majority of the voting nodes must corroborate if the equation is done correctly. This process happens in nanoseconds, meaning not all voting nodes will participate in every given block chain verification.
The Bitcoin protocol not only has the power to shape and influence the future of our global financial network, but also of our voting, our phones, and our cable television. The Bitcoin software can be implemented into any system that is based on an unbiased third-party mediator. As the software is policed by all participating members, the possibility of corruption, or hacking the system is minuscule. Regardless of whether or not the Bitcoin currency ever turns into a legitimate mainstream form of monetary transaction remains to be seen, however the revolution in software that Nakamoto has unleashed has only just begun.
What is a God Protocol – Nick Szabo idea
Imagine a financial system controlled by AI, barred from government or corporation interventions. This would represent everyone in an ideal system in which there is no third-party manipulation.
In 1998, Szabo designed a mechanism for a decentralized digital currency he called “Bit Gold”. Bit Gold was never implemented but has been called a direct precursor to the Bitcoin architecture. Based on the words of Nick Szabo, third trusted parties are security holes. When a protocol relies on third trusted parties, it has to patch the security holes that the mere centralization creates and that can be fairly costly.
What is Faythe, the first god protocol
Introducing Faythe, the first god protocol – an anonymous decentralized movement with human trusted third parties where those parties provide insight or knowledge that cannot be provided by a computer. Faythe aims to fight cryptocurrency censorship, public manipulation and corporations forcing governments to protect them against decentralization. Faythe is currently in pre-ico stage and is open to contributions. Anyone can contribute or join the project, and early contributors will receive FAYTHE tokens as a bonus which can be exchanged for FAYTHE coins after the Faythe public release.
Faythe in the vision of SN for the future
Satoshi envisioned a payment system that was faster, cheaper and irreversible. No financial institution needed. Nor did it need a 3rd party to mediate conflicts either.
“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.’’ – Satoshi Nakamoto.
Decentralization makes sense; the idea of sending payments without going through a financial institution is what Satoshi envisioned. Now that Bitcoin has been in existence for more than nine years, its strengths have been revealed. For a project that was initially ignored and then mocked by the financial world, Bitcoin is amazingly resilient. Bitcoin has demonstrated to the world that blockchain technology works, and, for certain use cases, works amazingly well. It has solved the problem of exchanging money between strangers without resorting to a third party. Blockchain transactions are faster and cheaper than traditional models due to it’s irreversible nature, making it safer and more convenient for online payments. Those of us who have been involved in Bitcoin for years should step back every once in a while, and marvel at its capabilities. It is truly a technological and economic miracle.
However Faythe is about to solve one of the biggest problems that the original blockchain didn’t. Faythe will control the ins and outs and will be able to bridge blockchains in a way that will make everything be able to operate as a complete financial system. The Faythe Alpha Net is already being tested and multiple participants will join before the end of the year.