October 31, 2008, marks the birth of Bitcoin as we know it today after Satoshi published a paper titled: Bitcoin: “A Peer-to-Peer Electronic Cash System.”
The Bitcoin whitepaper explains the problem with centralized electronic payment systems like banks and financial institutions while also proposing how a tamper-proof, decentralized peer-to-peer protocol solves the issue.
Put simply, Satoshi’s solution in the paper was to completely eliminate the centralized third-party system, which will allow people to become their own bank and transact with each other without relying on a “third-party” to process the transaction.
The proposed protocol is built on a cryptographically secure system that lays the foundation of what is known as the back-bone of cryptocurrencies today – blockchain technology.
