Nakamoto Whitepaper: Points to Consider

Judging from the content of the Nakamoto whitepaper, I can say it is one of the fundamental publications in the crypto industry. It is foundational because it builds the core values of the crypto industry.

The core values are explained thus:

Trustless Value:

Nakamoto believed that trusting the fed had led to manipulation of the currency. As such money should not be put in the trust of an organization nor individual.

Decentralization Value:

To solved the problem of trust and centralization, blockchain helps to decentralized money. When no one person controls the currency and it is validated by nodes it becomes decentralized.

Peer to Peer Value:

A disintermediation of banking system is what the P2P system promises. With it you can do a transaction without the need for a third party such as bank or exchange.

Is crypto exchanges and stable coins part of the vision of Satoshi for the crypto industry?

What is the impact of exchanges and other crypto companies on the original vision of Satoshi Nakamoto?

Reference:
Nakamoto, S. (2009) Open source P2P money, Bitcoin. 2009. Available at: Bitcoin - Open source P2P money (Accessed: December 14, 2022).

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This summary is a great one. I learnt that a disintermediation of a banking system is what the P2P system promises.
Here is the answer to your question if crypto exchanges and stable coins part of the vision of Satoshi for the crypto industry.?
Yes it is. His vision is to take financial control back from financial elites, giving ordinary people a chance to take part in a decentralized financial system.

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The disintermediation of the banking system is a core element of the crypto and web 3. This also gives birth to DEFI and self custody wallets. What I was trying to explain is the fact that does using fiat to peg coin (stable coin) not a merging of the traditional financial system with the crypto system?

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@Progrezz Cryptocurrency, one of its purpose was to create a decentralized money that is not monitored, so bringing all these government regulation policy will not work for it.

Exchanges was not part of the initial plan, and it’s a nice one but, the downfall of most of these exchanges has caused loses for a lot of people and increased the fear in crypto.

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I think there is no way crypto can have a promising future without regulations. However, regulating decentralized technology could be a disincentive for some players. I think there is always a tradeoff. The tradeoff is regulation and less decentralization and on the other hand, no regulation but more decentralization. Although, personally when there is regulations bad actors will be flushed out and investors would be protected.

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According to Brian (Crypto: The Original Vision of Satoshi Nakamoto Plays Out)
Satoshi Nakamoto vision was to disrupt and outwit the banking system and to provide alternative mode of payment for billions of people across the world who were unbanked.

I think the major impact of exchanges and other crypto companies on this vision is that they made Bitcoin more famous and recognized accros the globe. for example, most crypto companies provided Bitcoin as a mode of payment in purchasing stocks and other Cryptocurrencies.

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It is true that crypto exchanges increase the adoption of crypto. However, most people prefer to prefer to save the coins on exchanges than on wallet due to loss of passwords for self custody wallets.

However, the collapse is increasing fears among crypto users

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which aspect of collapse could you be referring to?
The fear of most persons is the Volatility nature of the crypto currency.

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FTX as a Casestudy is an example of how an exchange collapse.

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@Progrezz thank you for this write-up.

Answering the below question,

The vision, outlined in the now famous Satoshi Nakamoto whitepaper, of a private and transparent peer-to-peer electronic cash system, without the need for a trusted third party has been the catalyst for a new way of thinking about how money moves. what do you think?

speaking of collapsed exchange, would you mind sharing your view on why FTX project failed

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I think, discussing that on this thread may be an off topic. However, i will share some insights in this regard.

The major reasons reasons for the collapse of FTX is due to lack of transparency in their financial position and fractional reserve.

Fractional reserve is a system whereby an exchange uses depositor money to engage in other business.

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Is crypto exchanges and stable coins part of the vision of Satoshi for the crypto industry? Below is what I think about the question

Crypto exchanges and stable coins were not part of the original vision for the cryptocurrency industry as outlined by Satoshi Nakamoto, the pseudonym of the person or group of people who created Bitcoin. In the original Bitcoin whitepaper, Satoshi described a decentralized, peer-to-peer electronic cash system that would allow individuals to transfer value directly, without the need for intermediaries such as banks or financial institutions.

Crypto exchanges and stable coins have emerged as a way to facilitate the buying, selling, and trading of cryptocurrencies, as well as to provide stability and reduce volatility in the cryptocurrency market. These developments have helped to increase the adoption and mainstream acceptance of cryptocurrencies, but they may not align with the original vision of Satoshi for a decentralized and peer-to-peer electronic cash system.

Overall, it is difficult to say whether crypto exchanges and stable coins are part of the vision of Satoshi for the cryptocurrency industry, as Satoshi’s original vision was primarily focused on the creation of a decentralized electronic cash system, rather than on the development of additional infrastructure and services related to cryptocurrencies.

What is the impact of exchanges and other crypto companies on the original vision of Satoshi Nakamoto?

The impact of exchanges and other crypto companies on the original vision of Satoshi Nakamoto depends on one’s interpretation of Satoshi’s vision for the cryptocurrency industry.

On one hand, exchanges and other crypto companies have helped to increase the adoption and mainstream acceptance of cryptocurrencies by providing a platform for buying, selling, and trading them.

This has made it easier for individuals to use cryptocurrencies as a means of exchange and store of value, which aligns with the original vision of Satoshi for a decentralized and peer-to-peer electronic cash system.

On the other hand, some critics argue that exchanges and other crypto companies have introduced centralization and intermediation into the cryptocurrency industry, which goes against the original vision of Satoshi for a decentralized and peer-to-peer system.

These companies may also have their own agendas and profit motives, which may not align with the original vision of Satoshi.

Overall, the impact of exchanges and other crypto companies on the original vision of Satoshi Nakamoto is a matter of debate, and different people may have different perspectives on this issue.

All the above answers are based on my view and understanding in regard to what the Nkamoto whitepaper content is all about after due deligency.

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Many of the fundamental queries I had about the cryptocurrency and blockchains in general were answered when I first read the original Bitcoin whitepaper in 2016 written by Satoshi Nakamoto and released in 2008. The paper is an excellent place to start for anyone interested in learning more about the technology, as many knowledgeable blockchain and cryptocurrency experts would attest.
The document offered a peer-to-peer network with public registration of all transactions that cannot be distorted or reversed as a transaction system that doesn’t rely on third parties and eliminates double-spending. Nakamoto makes it clear that a voting process among nodes allows for the modification of the entire network. Each node casts a vote using its processing power, and as long as the majority of the network is made up of trustworthy nodes, the system as a whole is impervious to corruption.
The first and only official document made available on bitcoin was the Bitcoin whitepaper. The first bitcoin transaction occurred in January of 2009. In July of 2010, the digital currency became widely available for purchases and trading. Since the first bitcoin was openly traded about eleven years ago, the global market has been shaken and our pre-existing ideas of money, value, and trust have all been put to the test.

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