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Bitcoin: Peer-to-Peer Cash System

This document proposes a peer-to-peer electronic cash system called Bitcoin that allows for online payments directly between parties without a financial institution by using a proof-of-work chain of hashed blocks to timestamp transactions and prevent double-spending in a decentralized network where the longest chain represents a consensus of the network.

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nur azizah
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75 views1 page

Bitcoin: Peer-to-Peer Cash System

This document proposes a peer-to-peer electronic cash system called Bitcoin that allows for online payments directly between parties without a financial institution by using a proof-of-work chain of hashed blocks to timestamp transactions and prevent double-spending in a decentralized network where the longest chain represents a consensus of the network.

Uploaded by

nur azizah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Bitcoin: A Peer-to-Peer Electronic Cash System

Satoshi Nakamoto
satoshin@gmx.com
www.bitcoin.org
Abstract. A purely peer-to-peer version of electronic cash would allow online
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.
We propose a solution to the double-spending problem using a peer-to-peer network.
The network timestamps transactions by hashing them into an ongoing chain of
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. 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. 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.

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