The white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System envisioned the need for a self-governing, secure and limited-quantity peer-to-peer online payment system. On Jan. 3, 2009, the Bitcoin network was launched. Each Bitcoin cost $0.0008.
A growing user base and the support of the Bitcoin community have transformed bitcoin into one of the most profitable investments for the internet age. After experiencing a gradual appreciation of 7,749,999,900% since its launch, Bitcoin now trades at a stable value of around $60k.
According to the Bitcoin white paper, there is a way to prevent double-spending without having to trust a third party. This is achieved by utilizing “honest” nodes which are able to confirm transactions by overpowering the bad actors in terms of raw central processing unit (CPU) power.
In fact, the Bitcoin white paper mentions 15 “honest” and one “dishonest” node, explaining the importance of honest nodes to ensure transaction credibility. As Satoshi Nakamoto put it:
“We have proposed a system for electronic transactions without relying on trust. They [honest nodes] vote with their CPU power, expressing their acceptance of valid blocks by working on extending them and rejecting invalid blocks by refusing to work on them.”
Mining block number 707542 of the Bitcoin blockchain yielded 6.25000000 BTC as reward.
In order to change the existing rules to incentivize the miners that confirm Bitcoin transactions on the blockchain, as Bitcoin gradually approaches the hard cap, or maximum supply, of 21 million BTC, the community of developers will need to modify the existing rules. According to the whitepaper:
“Any needed rules and incentives can be enforced with this consensus mechanism.”
Anthony Pompliano, an entrepreneur from Crypto Twitter, joins the celebration.