Question-11: Who is Satoshi Nakamoto?

Answer: This is not known, whether he is an individual or group of people. However, the first whitepaper named “Bitcoin: A peer-to-peer Electronic Cash System” was published and author name was “Satoshi Nakamoto”.

Question-12: What was the main purpose for the Whitepaper published by Satoshi Nakamoto?

Answer: The main aim was to create a digital currency that could operate without any connection to a bank or central government, and to build a more transparent financial system that could prevent the catastrophic events of the financial crisis from ever happening again.

Question-13: What was the main featured proposed by Bitcoin initially?

Answer: Following are the main features, proposed by Bitcoin

• Online Transactions must be secured.
• Use cryptography for securing transactions.
• Sending very small amount securely.
• Creating money outside of government system.
• Use Proof-of-work to verify and validity of digital funds. And this should be a mathematical problem which can be solved using computational power.
• Double spending: it means risk of double spending should be falsified via duplication.
• Hashes: This is a fixed size fingerprint for different size of data.
• Nonces: Using a random number you should be able to ensure that a particular communication can only be used once.

Question-14: What is mint based currency model?

Answer: Usually, government-based currencies use the mint-based model, in that case there is one central authority known as mint, which verifies a particular transaction cannot be double-spent. And currency must be returned to the mint and that is periodically destroyed in order to create new currency.

Question-15: Why and how Bitcoin whitepaper wants that mint-based central authority is not needed?

Answer: Bitcoin whitepaper suggests that this should be accomplished without a single central trusted party and for that any transactions must be publicly announced. And there should be a system of participants to agree on a single history of the order in which they were received. The payee needs proof that at the time of each transaction, the majority of nodes agreed it was the first received.