Next January will mark the 10th birthday of Bitcoin and the first mention of the name Satoshi Nakamoto, its creator and blockchain pioneer. Remember when it first launched?
Maybe you thought Bitcoin and blockchain were a fad that would die out as quickly as they appeared. Maybe you thought they had potential but remained on the fence. Maybe you invested in them - but we’ll assume that if you’re reading this article, you hopped on the train a bit late.
Regardless of where you stand, the birth and growth of Bitcoin and the blockchain have lessons for everyone, but more so for those who want to make their mark in the blockchain world. If that’s you, take notes and learn from Satoshi Nakamoto’s moves himself.
A Little Background on Satoshi
If there’s one thing everyone knows about Satoshi Nakamoto, Bitcoin’s and the blockchain’s creator, it would be the fact that he’s (or she or they) is unknown and hence, mysterious. The name is merely an identity used to label the person (or people) who created the blockchain and the native cryptocurrency. It’s still not known exactly who’s behind the Bitcoin.
There is speculation that Satoshi is from the U.K. (despite the Japanese name) due to his use of British English and flawless grammar. He has been labelled by some collaborators as “weird, paranoid and bossy” due to his painstaking approach to coding. But there are few theories about who Nakamoto really is.
Hal Finney - A late, computer scientist who pioneered the concept of cryptocurrency and received the first Bitcoin transaction (which would make it strange for him to be the creator). He passed away from ALS in August 2014.
Nick Szabo - A computer scientist, legal scholar and cryptographer known for his research on digital currency. He’s also credited by many as the creator of the term “smart contract”.
Dorian Nakamoto - A trained physicist and who ended up working as a systems engineer, Dorian has been cited as the likeliest person behind the Satoshi Nakamoto persona. His birth name is Satoshi Nakamoto, he’s Japanese-American and has political views that align with the creation of Bitcoin. However, Dorian himself clarified the speculation as a being a case of mistaken identity.
Craig Wright - A computer scientist and businessman who has claimed to be Satoshi Nakamoto himself, although there is skepticism over his claims and overall involvement in the project.
There are several other individuals whom journalists and media personalities have linked to the pseudonym, but no one has come forward with convincing evidence yet. But for the purpose of this article, let’s not get hung up on history here. With Satoshi Nakamoto, who they are as a person is interesting, but what’s more important about them is what they did and how they did it.
The Lessons To Learn From Satoshi Nakamoto
Whoever, Satoshi Nakamoto is, his creation and rollout of the world’s first successful blockchain contains gems that you’ll want to emulate as an aspiring blockchain entrepreneur or professional. The lessons can be drawn from two main areas: the technical side and the business side.
Technical Lessons to Learn From Satoshi Nakamoto
Being the grandfather of cryptocurrency development, Satoshi can teach you much in terms of actually developing a cryptocurrency or any blockchain application. As a matter of fact, Bitcoin and its accompanying code and documents have become a textbook in the creation of digital currency. Bitcoin is used to define both the blockchain protocol “Bitcoin” (capital B) and “bitcoin” (lowercase b) the native cryptocurrency of the Bitcoin blockchain. The cryptocurrency, bitcoin is integral to the operation of Bitcoin as an incentive to keep miners honest and prove their innocence by participating in Proof of Work to arrive at a consensus, which in turn results in the minting of new bitcoin. It is also arguable that bitcoin is the first application of blockchain. It is seen as a store of value application, but can also function as an application for value transfer.
Either way, bitcoin is considered an application on the Bitcoin blockchain.
Build Your Website and Secure Your Platform
The first official appearance of Bitcoin dates back to August 2008, when the domain name Bitcoin.org was registered online. Apart from this, there was no website or any other platform on which bitcoin existed. It was nothing but a name at the time.
There’s a quick and short lesson to learn here from this: get started early and don’t sweat all the details (just yet). Get your idea registered even if it’s not fully developed - you’ll have plenty of time to stress over the more technical aspects of your application as time progresses.
Create a Solid White Paper
From the time of Satoshi’s seminal white paper to now, a blockchain and cryptocurrency project comes to life when the creator writes a white paper. Just as a refresher, a white paper is a document that serves as an “authoritative report giving information or proposals on an issue”.