Abstract
A purely peer-to-peer version of electronic cash would enable direct online payments between parties without intermediaries like financial institutions. While digital signatures partially address this, the reliance on a trusted third party to prevent double-spending undermines the core advantages. This whitepaper introduces a peer-to-peer network solution to the double-spending problem.
Transactions are timestamped by hashing them into a continuous chain of hash-based proof-of-work, creating an immutable record. Altering this record would require redoing the proof-of-work. The longest chain validates both the sequence of events and the majority CPU power backing it. Nodes controlling most CPU power naturally extend the longest chain, outpacing potential attackers. The network operates with minimal structure—messages are broadcast optimistically, and nodes can freely join or leave, syncing to the longest chain upon return.
Core Concepts
- Peer-to-Peer Electronic Cash: Eliminates intermediaries for direct transactions.
- Proof-of-Work: Secures the network by making transaction history tamper-resistant.
- Decentralization: Nodes collectively maintain integrity without central authority.
Key Innovations
- Double-Spending Prevention: Solved via consensus and cryptographic hashing.
- CPU Power as Security: The longest chain reflects honest majority effort.
- Network Resilience: Adapts dynamically to node participation changes.
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FAQ
Q: Why is the Bitcoin whitepaper significant?
A: It laid the groundwork for decentralized digital currency, solving long-standing issues like double-spending without centralized control.
Q: How does proof-of-work secure the network?
A: By requiring computational effort to validate transactions, making attacks economically unfeasible.
Q: Can Bitcoin’s design scale globally?
A: While challenges exist (e.g., transaction speed), layer-2 solutions like the Lightning Network aim to address scalability.
Translations
The whitepaper is available in multiple languages, including:
- Japanese
- Chinese (Traditional & Simplified)
- Vietnamese
- Italian
- Hebrew
- Spanish
- Russian
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Note: External links to translations have been removed per guidelines.
### Keywords
1. Bitcoin
2. Whitepaper
3. Satoshi Nakamoto
4. Proof-of-Work
5. Decentralization
6. Peer-to-Peer
7. Double-Spending
8. Blockchain