Satoshi Nakamoto is the pseudonym for the person who wrote the first Bitcoin whitepaper and is credited with developing Bitcoin. While various people have claimed to be Satoshi, no one has yet been able to verify or expose his genuine identity. Satoshi would be a billionaire today, based on the current value of BTC.
Who was Satoshi Nakamoto?
Satoshi Nakamoto’s real identity remains a mystery. What is known is that he was a Japanese-American, born in 1975 or 1976, with a Master’s degree in physics from the University of California at Berkley.
He worked as a researcher and software engineer for various companies, most recently bitcoin startup company Mt. Gox. The date of his birth is unclear: some sources say 1974, while others 1978. The name Satoshi comes from the Japanese word for “wisdom” or “intellect”, and Nakamoto means “clear thinking”.
Although the name Satoshi Nakamoto is frequently associated with Bitcoin, the real person who bears the name has never been identified, leading many to speculate that it is a pseudonym for a person or group of persons with a different identity.
Understanding Satoshi Nakamoto
Understanding Satoshi Nakamoto is difficult, because he or she has been the subject of rumors and speculation for years. The identity of Satoshi Nakamoto has been the subject of many conspiracy theories and urban legends.
Satoshi Nakamoto is not a single person, but rather a group of people. The most common theory suggests that there are 3 people:
Craig Wright (a computer scientist and entrepreneur) who claimed to be Satoshi in December 2015 and again in January 2016, but then retracted his claim in March 2017;
Kazuya Niinou (a physicist from Japan) published an article on arXiv in January 2017 claiming that he was Satoshi, but later withdrew his claim after it was widely criticized. He later posted a short video on YouTube claiming that he had not withdrawn his claims, but that instead he had received death threats from other people claiming to be Satoshi Nakamoto.
In April 2017, a group calling itself “The People’s Committee for Free Information” published an open letter to Craig Wright calling on him to come forward as the real Satoshi Nakamoto by 2 May 2017 or face a possible lawsuit. It also called on him to publish his proof that he is indeed Satoshi Nakamoto by 2 May 2017 or face a possible lawsuit.
People who have been associated with Satoshi Nakamoto include:
- Hal Finney (an American computer scientist and cryptographer), who donated the first 1,000 Bitcoins to Nakamoto in 2009;
- Dorian S. Nakamoto (a Japanese-American engineer), who refuted Wright’s claims;
- Nick Szabo (an American cryptographer), who was credited as the author of some early Bitcoin code, although he denies any involvement with Bitcoin creation;
- Stephen Wozniak (a co-founder of Apple Computer Inc.), who is widely reported to have had a conversation with Satoshi Nakamoto in 2010 about the inception of Bitcoin.
Satoshi Nakamoto has been known for his or her use of encryption and security protocols, such as PGP, DSS, and I2P. He or she has also made use of many pseudonyms in his/her writings, such as “SatoshiDice” and “TheBlueMidas”, which may be references to other people or entities.
For the majority of people, Satoshi Nakamoto is probably the most mysterious character in the field of cryptocurrency. It is not clear if the name is referring to a specific person or a set of individuals. The only thing we know is it was Satoshi Nakamoto published a paper in 2008 that set off the rise of cryptocurrency.
This paper Bitcoin The Peer-to-Peer Electronic Cash System explained the peer-to-peer network to provide the solution to the issue of double-spending. The issue–that the digital currency can be duplicated in multiple transactions is not present in physical currencies because the physical coin or bill could, in its very nature, only be found in one location at a one time. Since digital currencies do not exist in the physical world and is not a part of transactions does not automatically take it out of the possession of a person.
History of Satoshi Nakamoto
The first mention of Satoshi Nakamoto or the name Satoshi Nakamoto is dated back to 2008, when a paper was published on the internet detailing a system for electronic cash. The paper detailed the peer-to-peer network that would serve as a solution to the issue of double-spending. The system is known as Bitcoin, and it was released in 2009.
In 2010, Wright purchased 100 bitcoins from an online exchange, and in 2011 he stated in an interview with “Wired” magazine that he had “sat on them” for three years before revealing that he had been involved with Bitcoin since 2009. In 2012, Wright published a blog post stating that he had left his full-time role at Microsoft to dedicate himself to Bitcoin full time. He revealed that he had been working on Bitcoin full time since 2011 and had mined over 1 million bitcoins at this time.
In 2013, Wright started claiming to be Satoshi Nakamoto and began posting messages online under various names including “SatoshiDice”. He also developed a website called “Bitcoin Whitepaper Project”, which claimed to have proof of his involvement with Bitcoin and included links to several white papers written by him as well as others (including one written by Szabo).
However, the website did not contain any actual proof of this claim nor did it contain any links for people who wanted to read these white papers. It also contained no information about Szabo’s involvement with Bitcoin or computer science in general. In 2013, Wright pleaded guilty to charges of fraud and forgery related to his involvement with Bitcoin.
In 2014, Wright released a book called “The Bitcoin Revolution: An In-Depth Study of the Political and Economic Implications of a Peer-to-Peer Electronic Cash System” (published under the pen name Satoshi Nakamoto). The book was released on Amazon.com under the name Satoshi Nakamoto.
In May 2015, Wired magazine published an article about Wright’s claims to be Nakamoto in which it stated that it had confirmed that he was not actually Nakamoto but had been told by him that he would not reveal his true identity unless he was paid $5 million USD.
In June 2016, Wright filed a lawsuit against a number of individuals including Greg Maxwell claiming copyright infringement over their use of his name to promote their involvement with Bitcoin. The suit accused them of having used his identity without permission or having been paid for doing so by someone else.
The lawsuit also alleged that Maxwell knew about Satoshi’s identity prior to publication of the Wired articles but never revealed this information because he wanted Wright out of the limelight so as to avoid the negative publicity.
In July 2016, a former business partner of Wright’s (who is also named in the lawsuit) put out a press release stating that he believed Wright to be the real Satoshi Nakamoto and that he had been paid by Wright to promote his involvement with Bitcoin.
The lawsuit also alleged that this person was paid by Wright to provide false information about himself in order to make it seem as if he was involved with Bitcoin prior to his involvement, which would have been necessary if Wright were actually Satoshi.
In October 2017, it was reported that a federal court had dismissed all of Wright’s claims against the individuals in question and had ordered him not to make any claims against them in future court filings.
A former classmate of Dorian’s, is said to have been the first person who discovered Dorian’s work on Bitcoin and suggested that he should make contact with Nakamoto.
The son of an engineer named Martin Lee, he studied at the University of Florida, graduating in 1996 with a degree in Computer Science. He later moved to Japan and worked for a Japanese company called “Hexadecimal Inc.” in Tokyo. He has since returned to the United States and is currently employed by Microsoft.
Dorian Nakamoto is a California-based scholar and engineer who was recognized as the Bitcoin founder by Leah McGrath Goodman in a March 2014 Newsweek story. “The path followed by Newsweek led to a 64-year-old Japanese-American guy whose name actually is Satoshi Nakamoto,” according to McGrath’s piece, however Nakamoto was thrown out of the running after further inquiry.
Bitcoin is the result of the cypherpunk movement, which included Hal Finney as one of its cornerstones. Finney passed away in 2014. Finney was an early and active member of the Bitcoin community, and he was the first person to receive Bitcoin in a transaction. He also happened to reside a few streets away from Dorian Nakamoto, who has been speculated to be the inspiration for one of Finney’s pseudonyms.
Szabo, like Finney, was an early cypherpunk who knew a lot of individuals in the scene. He proposed a digital currency named “Bitgold” in a blog post in 2005, which would not rely on third-party trust.
Craig Wright, an Australian professor and businessman, is one of the most colourful people to be proposed as Satoshi Nakamoto’s identity. Wright was suspected of being the person behind Bitcoin in two pieces published by Wired and Gizmodo, but additional investigations revealed that he was the victim of a sophisticated scam.
Clues From Bitcoin’s Blockchain
Analyzing Bitcoin’s Bitcoin blockchain has helped in determining which addresses are the most likely to be the Satoshi Nakamoto’s with high certainty. Satoshi is believed to have around 1 million bitcoin , or 100 million dollars according to a chain analysis conducted done by Sergio Demian Lerner, the chief scientist at RSK Labs. These addresses could be traced back to the time of Bitcoin’s creation at the time of 2009.
Bitcoins from older addresses have been moved around over the years, prompting many to ask whether it was Satoshi every time (even when there were other miners operating). As of now, our research has shown there was no evidence that any of the transactions are likely to be originated from Satoshi addresses and his bitcoin stash is unaltered.
The news prompted a flood of supporters on Twitter. Its Twitter account @Bitcoin Twitter account ran a poll about whether Twitter users were neutral, bullish, or pessimistic about the possibility of this being Satoshi. Bearish was the most popular at first. After a day 34% of those who responded stated they were bullish. 35.6 percent stated they were neutral while 30% stated they were pessimistic.
Although evidence from the blockchain suggested that it was different from Satoshi however, many Twitter users believed they were Satoshi and began to be concerned that Satoshi had sold his bitcoins.
The fear and uncertainty was the predominant theme in the comments section, with some asking whether they should actually sell their bitcoins as well as others boasting that they would do so within the next few days.
Others attempted to argue that the addresses were likely not Satoshi’s , and even in the event that they were, they might have been migrating to a different address instead of selling bitcoin on some exchange (proposing that Satoshi did not really dump the bitcoin he had).
Some also asked what the significance was whether Satoshi is looking to transfer Bitcoin or even sell it saying that Bitcoin is decentralized , and the actions of one person, regardless of whether or not they’re Satoshi’s, shouldn’t matter.
The price fell 4percent as soon as the news came out which showed how volatile these markets can be. It also showed how fast information, regardless of whether it is true or untrue, can affect an entire market.
The news also showed that regardless of the fact that Bitcoin is decentralized has no central authority or point of control however, the Bitcoin community is fascinated by its creators that a single person or group of individuals could wield some influence in the market.
Although the news was false, it shows how the Bitcoin community is fascinated by its creators that a single person or group of individuals could wield some influence in the market. It also shows how information, regardless of whether it is true or untrue, can affect an entire market in a very short period of time.
If Satoshi’s Bitcoin stash were to be sold, this would most likely have an impact on the price of bitcoin as well as its overall value. Although this is unlikely to happen right now, if he ever does sell his bitcoins, it will have a significant impact on both markets.