It was in January, 2009 that Nakamoto had rolled out the bitcoin software as an open-source code, which marked the global introduction of the Bitcoin cryptocurrency system.
Satoshi Nakamoto
Cryptocurrency has taken the world by storm. But the mystery behind its origin still haunts many. Bitcoins now are heavily traded worldwide.
In 2008 an individual or a group of individuals known by the name of 'Satoshi Nakamoto' introduced the concept of a cryptocurrency by publishing a paper titled 'Bitcoin: A Peer-to-Peer Electronic Cash System' on the domain named bitcoin.org.
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It was in January, 2009 that Nakamoto had rolled out the bitcoin software as an open-source code, which marked the global introduction of the Bitcoin cryptocurrency system. But Satoshi Nakamoto after accumulating about a million Bitcoins in the network vanished without any notice or warning in 2011.
Although Bitcoins took the global financial market by storm and has been performing as the leading cryptocurrency, the anonymity of Satoshi Nakamoto and the unexpected disappearance still remain an unsolved mystery.
Beginning of Bitcoins
The Bitcoin activity went underway when on 3rd January 2009 Nakamoto created the Bitcoin Network and mined the first block of the chain. The concept of removal of intermediaries such as the financial institutions and Governmental regulatory authorities were key features, which attracted investors and markets towards the Bitcoin cryptocurrency system. Its peer-to-peer encrypted transaction and a public ledger known as the 'Bitcoin Blockchain' attracted millions.
Three days after creation of the Bitcoin network, the first official transaction of the Bitcoin took place when Finney downloaded the software on its release date. However, Satoshi soon handed over the Bitcoin network and control of the source code to Gavin Andresen, and disappeared.
Here are some of the reasons why we think Satoshi Nakamoto remains anonymous:
Bypassing attention of regulatory authorities
Since the Bitcoin network eliminated the existence of a third party (supervisory or regulatory), it attracted many criminals and illegal business parties. This could be a vital reason why Nakamoto chose to remain anonymous. Learn more about bitcoin network existence with third party https://bitcoinera.app/
More than a decade before the invention of cryptocurrencies, Liberty Dollar, a private currency, was formed in 1998, by an individual named Bernard Von NotHaus. The currency thrived for some time, but its mining operation was searched by multiple regulatory authorities and consequently shut down. After legal proceedings against Bernard, the currency was shut down due to the fact that it was created privately with an intent to devalue the official currency of the US.
Another private currency which had been in the same league was e-Gold. In 2007, it was suspected of an illegal activity since it did not have a proper database system on its transaction details. The creator of this currency was arrested and the digital currency was shut down. Thus, the regulatory clampdown against previous alternative currencies in the past may have led Satoshi Nakamoto to hide his identity and eventually leave the network.
The market for bitcoin is vast, and its use extends to both legal and illegal users. Although, the users of fiat currency may indulge in illegal activities too, there is always an involvement of a third party regulatory authorities in the transactions. Cryptocurrencies, however, have been prevalently used at dark-net markets as methods of payment, as bitcoins were initially used by illegal traders at Silk Road. Ross Ulbricht, the creator of another dark-net market, was sentenced to life imprisonment for aiding the trade of drugs and other banned objects.
Therefore, Satoshi Nakamoto might have faced a similar fate if he had not gone anonymous.
A Prerequisite for Decentralization
Satoshi Nakamoto's Bitcoin system was inspired by the exclusion of any third party in the network transactions, e.g. regulatory bodies or the government. The mental framework of Satoshi Nakamoto can be gauged from the following excerpt from 'The Complete Satoshi: What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.'
Given Satoshi's clear intentions here, it's probably true that maintaining his anonymity was necessary to make sure Bitcoin remained a truly decentralized creation.
Satoshi Nakamoto was rather a collaboration
Another possibility is that Satoshi Nakamoto may not have been an individual, but rather a group of interlinked individuals. When the whole Bitcoin network is reviewed, it seems rather far-fetched that a system with such minute intricacies and cross-disciplinary details was created by just an individual. The whole network is now worth billions and it seems hard to believe that there was just one individual behind the whole concept and its execution.
One of the major factors which creates suspicion regarding the claim of the bitcoin network's creator is the fact that Satoshi Nakamoto claimed himself to be a middle-aged Japanese. Also the first original document written on the bitcoin system was in English, while his email was traced back to Germany. This inconsistency and diversity of information make it clear that there were people of different nationalities involved in this project.
These facts led some authorities to believe that the BTC Network is in reality a collaboration of several individuals or entities. Due to the interdisciplinary amalgamation of the system, people now believe that such an intricately engineered masterpiece network could not be created by a single individual.
Final Word
Although Bitcoin has managed to stay in the market and successfully emerge as the leading cryptocurrency for more than a decade now, there is no trace of its founder. Many investigating authorities have tried finding the individual and failed, which might strengthen the theory that Satoshi Nakamoto may not be an individual, but a group of individuals. Regardless of the anonymity of Satoshi Nakamoto, Bitcoin has successfully penetrated the market and remains the best digital currency in the world. Perhaps the reason behind its success is the anonymity itself. Who knows!
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