Nakamoto Institute [21BTC]

<font size="14" color="#bfffffff"></font><font size="13" color="#ff999999">Corp Diplos: </font><font size="13" color="#ffd98d00"><loc><a href="showinfo:1383//2118554604">Bitcoiner</a></loc></font><font size="13" color="#ff999999">, </font><font size="13" color="#ffd98d00"><a href="showinfo:1375//2120580219">Katrina Irken Shikkoken</a></font><font size="13" color="#ff999999"> <br><br>Bitcoin: A Peer-to-Peer Electronic Cash System<br> Satoshi Nakamoto<br> satoshin@gmx.com<br> www.bitcoin.org<br><br>Abstract. A purely peer-to-peer version of electronic cash would allow online<br>payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.<br>We propose a solution to the double-spending problem using a peer-to-peer network.<br>The network timestamps transactions by hashing them into an ongoing chain of<br>hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. <br>As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers.<br>The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.</font>