Beginners Guide Part 2/3 - What is Bitcoin? With Harry Sudock - WBD631

Harry Sudock is Chief Strategy Officer at Griid. In this
interview, we discuss what Bitcoin is: specifically, on what
ideological foundation was it developed, what problem was it
designed to solve, how it solves that problem, and why is it the
best technical solution for solving that problem. It’s a tl;dr of
the basic technical features underpinning Bitcoin.


- - - -


This is the second in a series of special What Bitcoin Did shows
aimed at opening people up to Bitcoin. In the first episode, we
learnt that Bitcoin is a new form of money. In this episode, we
discuss what functions Bitcoin performs, which differentiates it
from other forms of money. We then discuss the technical
innovations that enable it to achieve these functions. In
essence, this show focuses on what Bitcoin is.


Bitcoin is rooted in the cypherpunk movement that developed in
the late 1980s centred on the US. As digital technology started
to proliferate, its capacity to track and record digital activity
became readily apparent. Concerned computer scientists,
mathematicians and cryptographers acted to develop systems aimed
at protecting individual privacy, despite a concerted government
that sought to control the development of privacy-providing
technology.


The cypherpunks movement included extensive work by many to
develop anonymous digital cash. But, despite some incredible
breakthroughs, none of these efforts had any material success. It
was not until the pseudonymous Satoshi Nakamoto brought numerous
strands of all this work together that a viable anonymous and
uncensorable digital currency was born.


The innovation centres on four key pillars: a clear and immutable
monetary policy ensuing both scarcity and transparency; a proof
of work consensus mechanism that provides decentralised security
to the system; a difficulty adjustment, which ensures the
issuance rate is highly predictable; and finally, its design
considerations aimed at prioritising decentralisation.


To the uninitiated, these four key pillars may seem as merely
interesting innovations. But, once comprehended, the
effectiveness and elegance of Bitcoin’s design is truly
breathtaking. The software has worked, day in and day out, for
over 14 years, without being hacked. And, it’s all without a
leader, or a clearing house, or a central committee dictating
policy. Quick, uncensorable and private global settlement. By
open-source code. Satoshi Nakamoto is the genius of our times.