The BTC White Paper is a technical document published on the Internet by Satoshi Nakamoto on October 31, 2008. It is a document that talks about the fundamentals of Bitcoin technology.
However, the word Blockchain does not appear in it. The name Blockchain has emerged with the contribution of the BTC community and more than one developer, which was formed during the implementation of the technology and decentralized model mentioned in the White Paper.
What is BTC White Paper? How does it work?
Bitcoin Whitepaper works through the hash function. In order to understand the operation that is intended to be explained in the whole document, it is necessary to consider how hashes, chains and stamps work with each other. In this article, we will explain how all these details work.
Hash Processing Model Defined in BTC White Paper
In fact, the technology of Blockchain is described in the BTC White Paper. However, this name was not used in the document. The developer community, who believed in BTC in the first period, brought this name to the agenda. What is called Blockchain is the Hash operation in the document.
That is, in the White Paper, Satoshi, when translated into Turkish, states, “The software will encrypt transactions through the use of hash functions. The stamps revealed with these passwords are added to the chains.
The operation performed cannot be recycled.” He made the definition. This definition describes both the hash and the blockchain operating model.
What Does the BTC White Paper Provide?
The hashing described in the White Paper establishes a self-propagating pattern in the Blockchain. For example, when the hash function is thought of as a copier, when a paper with 100 words on it is put into print, the paper taken from the output also contains 100 words.
The only difference here is that the copier can make mistakes, but it is not possible to make mistakes in Blockchain, which operates with hundreds of thousands of distributed nodes.
When we go through this example, if the data entering the Blockchain changes, the hash function outputs also change, you can clearly reach the end. The system works quite regularly.
Security Description in BTC White Paper
The definition of security in the White Paper was made in order to avoid the double-spending model altogether. Satoshi has defined a system to prevent risks such as money laundering through double spending. In this system, miners step in.
When an investor makes a transaction, it is seen by the miner community. The miner, on the other hand, follows the method of adding the transaction to the newly created blocks, eliminating the possibility of repeating the transaction to the second.
BTC White Paper and Definition of Transaction Power
It is stated in the Bitcon White Paper that the processing power is not provided through a single hand. Providing processing power also plays a role in making every single step of the blockchain happen correctly.
In the definition, it is stated that the processing power will be provided through the community and those who give the processing power in a cycle will be rewarded.
To put this more clearly, miners use their processing power when competing with each other. This processing power is also sent to the network and used to control the network.
With this simple model, the processing power of miners working on a correct system keeps Blockchain alive. While providing processing power support, BTC production and transaction confirmations bring rewards to the miner.
What is the Main Goal of the BTC White Paper?
The main goal of the BTC White Paper was to explain that a cryptographic investment transaction that completely removes intermediaries, banks, and state central banks and connects two users is possible.
That’s why it was first published on Investopedia.com under the name “Bitcoin: A Peer-to-Peer Electronic Cash System”.
In the paperwork, BTC, a cryptographic currency, is introduced in a model that can be transferred, bought, sold and produced by anyone without a bank.
Although there was no such purpose in the initial publication of the BTC White Paper, it later became an exemplary announcement letter for the exit of all cryptocurrencies. A White Paper is first published for each altcoin that is wanted to be released.
Just like in the BTC White Paper, it announces the qualities, purposes, additional graphics and tables of crypto money to the whole crypto money world with documents.