Three Lessons Learned From The Bitcoin Standard

The first widely used, real-world example of a decentralized digital money was the Bitcoin Standard. It was created to improve transaction privacy and anonymity for Bitcoin.

2012 saw the project's debut on GitHub by an unidentified individual or group going by the name Satoshi Nakamoto. Hal Finney, an early Bitcoin developer and cryptography researcher who collaborated with Nakamoto on the first Bitcoin software, posted a message on a forum that gave rise to the project's concept.

Finney had discovered that you could make each transaction seem to have come from a different IP address than the one before it, thereby hiding the fact that you were transmitting bitcoins via a peer-to-peer network. Even while it would be difficult to connect any two transactions unless someone made a deliberate effort to do so, it would be able to identify the addresses that were used the most often over time, which might be helpful in the effort to identify and apprehend criminals or deanonymize users.

Nakamoto made the decision to include Finney's concept into the Bitcoin protocol, generating a unique keypair for each new user who signed up on an exchange that allowed them to purchase or sell bitcoins for conventional currencies like dollars. This configuration made transactions possible.