The Creation of Bitcoin and Blockchain
The Story Behind Bitcoin: How Blockchain Changed the World Forever
We have already discussed how the Bitcoin market system works. But have we ever stopped to think about what Bitcoin actually is? Who invented it? In our previous discussion, we learned that Bitcoin is decentralized. But why is it decentralized? Let us explore the real history and mystery behind it.
What is Bitcoin?
Bitcoin is a digital currency that is built upon mathematical principles and cryptographic algorithms. Since Bitcoin's code is based on mathematics, its supply is limited and predetermined. There will only ever be 21 million Bitcoins in existence.
Out of these 21 million Bitcoins, around 20 million have already been brought into circulation through mining. The remaining one million Bitcoins are expected to be unlocked gradually until approximately the year 2040. Therefore, Bitcoin is a limited asset, and it is increasingly becoming a global asset.
It is important to note that mining does not create new Bitcoins. Rather, mining is the process of unlocking Bitcoins from the total supply of 21 million that was predetermined from the beginning. Satoshi Nakamoto designed Bitcoin and placed this supply within the system, from where Bitcoins are gradually released into circulation through mining and halving events.
Mining a Bitcoin block takes approximately ten minutes, and this process becomes increasingly difficult over time due to the halving mechanism.
In 2008, a pseudonymous individual known as Satoshi Nakamoto published the Bitcoin Whitepaper on a cryptography mailing list titled "Bitcoin: A Peer-to-Peer Electronic Cash System." In 2009, Bitcoin was launched, and the first Genesis Block was mined. The first Bitcoin transaction took place between Satoshi Nakamoto and Hal Finney.
In 2010, Bitcoin entered the real economy when 10,000 Bitcoins were used to purchase two pizzas. This event is now celebrated worldwide as Bitcoin Pizza Day on May 22 each year.
In 2011, Bitcoin's value reached parity with one US dollar for the first time. During the same year, Satoshi Nakamoto handed the project over to other developers and disappeared from public view. To this day, nobody knows his true identity.
This raises an important question: Since Satoshi created Bitcoin, could he return and modify the code to create more Bitcoins for his own benefit? If so, how can Bitcoin remain decentralized forever?
The simple answer is No. Even Satoshi Nakamoto cannot unilaterally change Bitcoin anymore.
Why Satoshi Cannot Change Bitcoin
1. Source Forge and the First Release (2009)
In 2009, Satoshi uploaded Bitcoin's source code to Source Forge, an open-source platform where anyone in the world could view and download the code.
2. Migration to GitHub (2011)
Later, Bitcoin's codebase was moved to GitHub under the Bitcoin Core project. GitHub is the world's largest software development platform. Anyone with internet access can inspect, download, and copy the entire codebase.
3. Freedom to Run the Code
The code is not only available for viewing; anyone can run it. By downloading Bitcoin Core from the official website, users can operate their own Bitcoin node and become part of the network.
4. Open-Source MIT License
Bitcoin was released under the MIT License. This means anyone can use, modify, distribute, or even utilize the code commercially. No individual owns exclusive rights to Bitcoin.
Most importantly, no single person can change Bitcoin alone because millions of users collectively maintain and monitor the network.
A Simple Example
Imagine a treasure chest secured by ten different locks, with ten different people each holding one key. If one person wants to open the chest, they cannot do so without the cooperation of the other nine key holders.
Even if that individual unlocks their own lock, the remaining nine locks still keep the chest secure.
Bitcoin operates in a similar way. If one node attempts to modify Bitcoin's rules, the remaining nodes will reject those changes. As a result, the modified version becomes a separate chain, known as a hard fork, while the original Bitcoin network continues unchanged.
This brings us to two important concepts: Blockchain and Nodes.
What is Blockchain?
A blockchain is a decentralized, immutable digital ledger. It stores transaction data in cryptographically secured blocks, which are linked together in a chain.
Because there is no central authority or server, once information is recorded on the blockchain, it cannot easily be altered or deleted.
What is a Node?
A node is any computer or device running the Bitcoin software and connected to the blockchain network.
The primary responsibility of nodes is to verify transactions and blocks according to Bitcoin's rules. Each node stores a complete copy of the blockchain and helps maintain the network's security and integrity.
What is a Miner?
A miner is a specialized participant in the blockchain network that uses powerful computing hardware such as ASICs or GPUs to solve complex mathematical puzzles through a mechanism called Proof of Work.
By successfully solving these puzzles and adding new blocks to the blockchain, miners receive rewards in the form of newly released Bitcoins and transaction fees.
How Do Nodes Communicate Without a Central Server?
Bitcoin nodes communicate through a Peer-to-Peer (P2P) network and a Gossip Protocol.
When a new user installs Bitcoin Core, the software connects to known network nodes through DNS Seeds. Once connected, any new transaction or block received by one node is shared with neighboring nodes, which then relay it to others.
This process spreads information across the entire global network within seconds, similar to how news spreads throughout a community.
Can Someone Destroy or Hack Bitcoin?
The simple answer is No.
Because Bitcoin has no central server, there is no single target that can be attacked to destroy the entire network.
Even if thousands of nodes are temporarily disabled through cyberattacks, the remaining nodes continue operating. To completely shut down Bitcoin, an attacker would need to disable every active node worldwide and permanently eliminate global internet connectivity—an impossible task.
Even if internet access becomes restricted, Bitcoin data can still be transmitted through alternative methods such as satellites and radio signals.
What Happens if Someone Changes Bitcoin's Code?
If someone modifies the Bitcoin Core software and runs it on their computer, they immediately become disconnected from the original Bitcoin network.
This process is known as a hard fork.
The modified computer starts operating on a completely separate blockchain. Since the rest of the network rejects those modified rules, the new chain becomes isolated unless enough users choose to support it.
Example: Bitcoin Cash (BCH)
On August 1, 2017, a disagreement arose within the Bitcoin community regarding scalability.
One group wanted to increase Bitcoin's block size from 1 MB to 8 MB to process more transactions. Another group believed this would compromise decentralization and security.
Unable to reach consensus, supporters of larger blocks launched a separate blockchain called Bitcoin Cash (BCH).
The original Bitcoin network continued unchanged, while BCH became a separate cryptocurrency.
Anyone who held Bitcoin before the fork automatically received an equivalent amount of BCH after the split.
Later, Bitcoin Cash itself experienced further forks, leading to the creation of Bitcoin SV and eCash.
This example demonstrates that a hard fork creates a new chain, but it does not alter or destroy the original Bitcoin blockchain.
What is a Peer-to-Peer (P2P) Network?
Traditional internet services such as Facebook or YouTube rely on centralized servers. Users request data from those servers, which then deliver information back to them.
This is known as the Client-Server model.
In contrast, a P2P network has no central server. Every participant acts as both a client and a server. Each computer communicates directly with others and shares information without relying on a central authority.
Why is a P2P Network So Difficult to Destroy?
1. No Single Point of Failure
There is no central server that can be shut down to disable the entire network.
2. Geographical Distribution
Bitcoin nodes are spread across countries and continents worldwide. Even if one country bans Bitcoin, nodes in other countries continue operating.
3. Self-Healing Capability
If some nodes go offline, the remaining nodes automatically reconnect with others and continue sharing data.
4. Difficult to Block
Because millions of independent devices communicate directly with each other, blocking all network traffic is extremely difficult.
A Simple Analogy
Imagine a building supplied by a single water pump. If the pump breaks, the entire building loses water.
Now imagine every apartment has its own pump connected to neighboring apartments. Even if several pumps fail, water can still flow through the remaining pumps.
That is how a P2P network functions.
Conclusion
From the discussion above, we can understand that Bitcoin is not merely a currency. It is a technological system built on decentralization, transparency, and security.
Its blockchain architecture, node network, mining mechanism, and peer-to-peer communication model collectively create a system that operates without centralized control.
For this reason, Bitcoin is often referred to as "Digital Gold" and continues to attract increasing attention worldwide.
In the next discussion, we will explore why Bitcoin's demand may continue to rise in the future and what role it could play in global geopolitics and economics.
