{"id":3578,"date":"2020-05-05T06:30:57","date_gmt":"2020-05-05T06:30:57","guid":{"rendered":"https:\/\/paybis.com\/blog\/?p=3578"},"modified":"2024-04-10T13:33:27","modified_gmt":"2024-04-10T13:33:27","slug":"bitcoin-whitepaper-explained","status":"publish","type":"post","link":"https:\/\/paybis.com\/blog\/bitcoin-whitepaper-explained\/","title":{"rendered":"Bitcoin Whitepaper Explained – Understanding the Basics"},"content":{"rendered":"

If you ever wanted the <\/span>Bitcoin whitepaper<\/span><\/a> explained in layman\u2019s terms, you are in the right place.\u00a0<\/span><\/p>\n

The goal of this post is to educate you about Bitcoin and the vision behind it. To do this, I will go through all the aspects covered in the whitepaper written by its creator, Satoshi Nakamoto.\u00a0<\/span><\/p>\n

Moreover, we will break down some of the complicated terminologies and explain it in a simple manner. This way, even without any technical knowledge, you should be able to understand Bitcoin\u2019s importance in today\u2019s financial world.\u00a0<\/span><\/p>\n

So, let\u2019s begin with the basics.\u00a0<\/span><\/p>\n

Bitcoin whitepaper explained – the basics\u00a0<\/span><\/h2>\n

In this section, I will first analyze the introduction of the whitepaper, as it will help you understand the idea behind the original cryptocurrency<\/a>.<\/span><\/p>\n

In 2008, when the paper was published, Satoshi realized the impact of the rise of internet commerce on the global economy. But he also understood out that all these transactions had to go through a trusted third party – in this case, banks or centralized payment systems.<\/span><\/p>\n

A problem was born. You see, up to this point, trust was an essential part of digital transactions. We need trust to avoid transaction reversals and minimized fraud. Furthermore, to build trust, merchants and banks require even more personal information from customers.\u00a0<\/span><\/p>\n

To combat this issue, Satoshi introduced Bitcoin as the first digital representation of value. No participant is able to copy, double-spend coins, or reverse transactions. People would be able to send this digital currency directly to one another, without the use of a middleman.\u00a0<\/span><\/p>\n

And instead of relying on trust, Bitcoin relies on computer calculations to make digital transactions safe and peer to peer reliant.<\/span><\/p>\n

Finally, to secure the network, Satoshi developed an incentivized system, to keep the network safe. Through <\/span>proof-of-work,<\/span><\/a> users that confirm transactions on the Bitcoin network get rewarded with a small amount of BTC.<\/span><\/p>\n

Today, not only is Bitcoin a viable digital currency but, in the progress, it also increased significantly in value. Due to that, it became the ultimate digital asset for storing value.\u00a0<\/span><\/p>\n

But to understand why this came to be, let\u2019s carry on and try to have the main aspects of the Bitcoin whitepaper explained.\u00a0<\/span><\/p>\n

How Bitcoin works\u00a0<\/span><\/h2>\n

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Before we get into the methodology and technicalities of Bitcoin, let\u2019s briefly run over how Bitcoin works.\u00a0<\/span><\/p>\n

So what are some of the features that make BTC so unique?<\/span><\/p>\n