First published on CoinMarketCap:
Want to know what the Bitcoin whitepaper is all about? We understand this document can be overwhelming. Our guide breaks down each section in simple terms, making it accessible to everyone.
The Bitcoin whitepaper has served as the blueprint of the cryptocurrency and blockchain sectors since 2008 when it was first published on a cryptography mailing list by an enigmatic individual or group called Satoshi Nakamoto.
Titled “Bitcoin: A Peer-to-Peer Electronic Cash System”, the whitepaper served as an antidote to the global banking crisis of 2008, which the genesis block of Bitcoin referenced months later by including a famous newspaper cover. A number of overleveraged banks collapsed during the subprime mortgage crisis and ultimately got bailed out by their governments, while thousands of retail investors and homeowners lost everything.
The newspaper cover added to the Genesis block
Choosing this dramatic failure of the banking system as its main focus, the Bitcoin whitepaper proposes an ambitious new decentralized digital cash system that did not rely on traditional financial institutions, instead using cryptography to ensure the security and authenticity of transactions. It proposed the use of a proof-of-work system, incentives and a timestamp server to prevent double-spending and maintain the integrity of the network…