Part 1 of Bitcoin white paper Explanation. To start This Series Bitcoin is idle Coin to start . If you are into tech industry, it’s obvious you would have heard about Botcoin. If not , then espescially this blog is for you. It’s late 2008, and the global financial crisis is causing shock waves around the world. Anger at the worldwide banking industry, governments and other centralized authorities has reached fever pitch. Enter a mysterious figure named Satoshi Nakamoto, whose real identity continues to remain shrouded in mystery to this day. Satoshi Releases a white paper Titled : Bitcoin - A peer to peer electronic cash system . In January 2009, the first transaction takes place between Satoshi and Hal Finney, a developer and prominent member of the Cypherpunk movement. And the rest is history. Explanation of Bitcoin white paper : Introduction : To over come the double spending problem and to avoid the scenario like 2008 market crash Sathoshi nakamoto invented bitcoin. In traditional transaction money or anything of value , people and business have heavily relied on intermediaries like banks and government to ensure trust and certainty.

But Bitcoin Works on Blockchain Network . Which assures trust, securitiy, transparency etc. And Thus The Value of Bitcoin then after the invention keep on growing . from 1$ in 2013 to 69000 dollar in November 2021. Satoshi states that :

   “ No mechanism exists to make payments over a communications channel without a trusted party. What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party” 

Transaction : Bitcoin Transaction Works on Blockchain principle . Blockchain : Blockchain is a distributed immutable ledger which is completely transparent. Relation between Blockchain and Bitcoin . [Blockchain] is to Bitcoin, what the internet is to email. A big electronic system, on top of which you can build applications. Currency is just one. For more info about Blockchain principal (Read first Blog about blockchain) .

What about privacy and Security ? When people hear that all transactions are publicially announced, a typical response is - that’s an abuse of my privacy and security! I don’t want my transaction history and identity presented to the world. Don’t worry. While it’s true that all transactions are publicly announced, transactions use cryptography instead of relying on centralized intermediaries to provide security and privacy. What is Cryptography?

Cryptography is just a form of encryption that involves the creation of codes to allow information to be kept secret. It is the cryptographic element of Bitcoin which turns a transaction message into a format that is unreadable to an unauthorized user. (Stay Tuned for part2 explanation about bitcoin whitepaper)