Transition to Web3 - Course 3 | Transactions and Bitcoin
Satoshi Nakamoto, a person or persons, wrote the Bitcoin white paper in 2008 and invented Bitcoin.
Nakamoto’s starting point was money transactions: We trust banks to process payments, but there are some weaknesses in this trust-based model:
- Transactions can be changed by the bank later because there may be disputes.
- Because of the fear of potential changes in payments, merchants collect too much information on their customers.
- Banks increase transaction costs or may simply reject transactions.
💡 To overcome these challenges, Nakamoto suggested a purely peer-to-peer version of electronic cash: Bitcoin. This section will explain
- How you can store transactions in the blockchain
- How digital money is transferred from one person to another
- How Bitcoin is created
📚 Bonus: If you want more background, you can read Nakamoto’s original white paper below. If it seems confusing, don't worry! We'll explain everything.