——Answering the concepts in the article “Invite Satoshi Nakamoto to Welcome the new world”
Zhu Weisha September 8, 2024
This section continues to discuss the characteristics of the basic concepts of the Bitcoin system and blockchain. Although the initial version of the Bitcoin system has only more than 10,000 lines, it is profound. It represents humanity’s advanced ideas and development direction. Technology involves as little detail as possible so that everyone can understand. This section mainly involves the Bitcoin system’s trustlessness.
What trust does Bitcoin remove?
72. No need for banks to keep our funds
The Bitcoin ledger is distributed and stored on thousands of nodes responsible for keeping the user’s Bitcoin. Trusting any custodian node is unnecessary, and the program automatically synchronizes all node ledgers. The number of backup nodes far exceeds any centralized cloud storage project, and there is no risk of funds being misappropriated or banks going bankrupt. The credibility of data storage exceeds that of banks. Theoretically, there is the possibility of quantum brute force cracking of encryption technology, but the bank’s encryption will be cracked if Bitcoin can be cracked. It is a spear and shield problem.
73. Remove trust in banks as transfer parties
Bitcoin does not have banks as intermediaries. During the transfer process, the machine automatically completes the transfer and bookkeeping. Banks also have electronic transfers, both automatic during the transfer process. However, banks control the user’s ledger, may inquire about large transfers, and have additional powers over user funds. The Bitcoin system has almost no power. It only has the privilege of bookkeeping, so transaction records with low transaction fees may be postponed.
74. Remove trust in banks as verifiers
Banks have a function to verify funds and transactions. The Bitcoin system is verified through a program, and the subsequent 6 random nodes verify the block.
75. Remove trust in the current financial system
The Bitcoin system is flat, with only point-to-point settlement and no concept of clearing, and can be free from the current financial system. The emergence of Bitcoin is untrusted in the current financial system.
76. Remove trust in the bookkeeper
Due to the verification of 6 blocks and incentive mechanism, cheating blocks will be excluded, and there is no need to trust the bookkeeper.
77. The meaning of removing third-party trust
In the context of blockchain, removing third-party trust means excluding banks and other financial institutions from the transfer process. It makes the trust required in the transfer process as small as possible. However, the Bitcoin system always has trust in third parties. Although the trusted party does not participate in the transaction, it is still an indispensable part of the system. The next topic is what kind of trust is needed.
#BTC #DW20 #Satoshi @DW20 @soghita326134 @zhuweisha21
