{"id":1251,"date":"2019-10-31T07:20:14","date_gmt":"2019-10-30T23:20:14","guid":{"rendered":"https:\/\/www.btse.com\/blog\/?p=1251"},"modified":"2023-03-07T10:56:02","modified_gmt":"2023-03-07T10:56:02","slug":"3-things-you-didn-t-know-about-the-bitcoin-white-paper","status":"publish","type":"post","link":"https:\/\/www.btse.com\/blog\/3-things-you-didn-t-know-about-the-bitcoin-white-paper\/","title":{"rendered":"3 Things You Didn’t Know About the Bitcoin White Paper"},"content":{"rendered":"
\u201cI\u2019ve been working on a new electronic cash system that\u2019s fully peer-to-peer, with no trusted third party. The paper is available at http:\/\/www.bitcoin.org\/bitcoin.pdf\u201d<\/a><\/span><\/em><\/div>\n

– Satoshi Nakamoto, 2008<\/p>\n

The Bitcoin white paper, to this day, stands as one of the most (if not the m<\/em>ost) significant pieces of literature in the cryptocurrency space. Providing a high-level overview \u2013 and something of a blueprint \u2013 for Bitcoin and its numerous forks, Satoshi\u2019s 2008 document has undoubtedly cemented its place in history.<\/p>\n

Just nine pages long and made up of 12 short sections, the white paper delivers a concise summary of the Bitcoin protocol, albeit in broad strokes: you won\u2019t find any actual Bitcoin code or implementation details, but rather an introduction to various concepts \u2013 transactions, proof-of-work, incentives, etc.<\/p>\n

In the following piece, we\u2019ll take a dive into some of the things you may not know about the seminal paper.<\/p>\n

 <\/p>\n

#1 Blockchain? What\u2019s a Blockchain? <\/strong><\/h2>\n

It\u2019s strange that the word \u2018blockchain\u2019 is not mentioned once, considering that Bitcoin spawned a billion-dollar industry revolving around the technology. Whilst the data structure is one that we recognize as central to Bitcoin (i.e. a distributed, append-only ledger, using proof-of-work to extend the chain), Satoshi has never referenced it as such \u2013 not in the paper, and not in any of his posts over the next few years.<\/p>\n

<\/div>\n

As can be seen in the above chart, \u2018block\u2019 and \u2018chain\u2019 are some of the most-used words. Their amalgamation in the form of the mighty \u2018blockchain\u2019 buzzword that dominates the space, however, is nowhere to be seen.<\/p>\n

Also conspicuously absent is your top leader\u2019s second favorite word: decentralization.<\/em><\/p>\n

 <\/p>\n

#2 Digital Cash, or Digital Gold?<\/strong><\/h2>\n

The title of the white paper\u00a0\u2013\u00a0Bitcoin: A Peer-to-Peer Electronic Cash System <\/em>\u2013 has been at the heart of Bitcoin\u2019s most divisive schism. It was clear from the whitepaper that Satoshi had initially set out to create precisely that: cheap, trust-minimized money that could easily be transmitted digitally. Whether his stance would have changed as it grew in popularity over the past decade, we\u2019ll likely never know.<\/p>\n

Those around in 2017 will no doubt remember the vociferous arguments around scalability (i.e. whether it should be done on-chain, by increasing the block size, or off-chain, with payment channels). The ensuing split led to the creation of Bitcoin Cash, which, as the name may indicate, aims to remain true to the peer-to-peer cash vision. As regards Bitcoin, it is increasingly being understood not as a medium of exchange, but rather as a settlement layer for high-value transactions, and as a scarce asset akin to gold that should be held, rather than spent.<\/p>\n

 <\/p>\n

#3 The Precursors<\/strong><\/h2>\n

Bitcoin combines ideas and technologies that long preceded it, many of which have emerged from cryptography or cypherpunk circles. Key figures that have influenced the design of the protocol are:<\/p>\n