A Summary of Satoshi Nakamoto's White Paper
Satoshi Nakamoto begins his famous White Paper with a short introduction of why an electronic peer-to-peer cash system is necessary, emphasizing that the majority of payments made online are through large financial institutions that permit you to make these transactions, but said payment systems or more implicitly, fiat money (Money issued by central banks or governments) is having a trust failure and the costs of making transactions with said electronic fiat money sometimes do not favor those merchants, Satoshi Nakamoto explains how cash does not have this problem as it is an exchange between two peers, but it still has the problem that it is issued by a trusted third party, Satoshi explains how a currency that is based on cryptography can impersonate the trust factor and secure payments more effectively, eliminating fraud and protecting both the buyer and the merchant.
In the following lines of the white paper, Satoshi explains how transactions would work in this new payment system called Bitcoin, and providing a solution to the famous problem of double spending without, in this case, there being a trusted third party who can verify that there has been no a double expense, in this case, the operation of the blockchain solves this problem, for more details of this section check the entire document.
Satoshi also explains in one of the sections how the famous Proof-of-work system works, which is very similar to the Hascash devised by Adam Back, in order not to go into very technical details, the proof-of-work consists of a consensus system of the network through which new transactions and new blocks are generated which are validated by the network's miners, in the technical document, Satoshi Nakamoto also details how to ensure that the first mining users of the network focus on protecting it rather than on attack it for their own benefit and take over it, since in the most initial stages of the project, is when the network would be most vulnerable to this type of attacks.
In another section, Satoshi Nakamoto explains what the miners' incentives will be for keeping the network afloat and functioning correctly, and also to ensure that it is maintained over time while the project is developed, detailing that the incentives would be both the new coins generated by transaction block, such as incentives for commissions on transactions carried out by network participants that said miners would charge.
Satoshi continues to explain many technical aspects of the network such as the privacy that the network will have, the value dividend, disk space, and other aspects. I recommend all Bitcoin lovers to study this document since they will be able to find many things that they may never have seen before. were raised about Bitcoin or will it extend your knowledge about how Bitcoin works and its true purpose, or the purpose that Satoshi Nakamoto was looking for with the project, the document can be found in many parts of the internet, Bitcoin.org is one of these sites.
