My Crypto Rat Hole Stories: Notes On Satoshi's Whitepaper(Part 1)

As the title says, I am in a bit of a rat hole right now. 

Like most 24 year olds, I saw Bitcoin years ago, chose to go hangout with women instead, and their goes that. 

After being reintroduced to the space about a month ago, I have really found myself trapped in a state of amazement and curiosity. 

After spending my fair share of time on Crypto clickbait videos and signing up for all of the wrong trading platforms LOL 

I finally started looking into the technology. And I can't seem to stop. 

I am not saying this is a bad thing just figured I would share my story. 

Below are my notes and attached pictures of my notes on the original Bitcoin Whitepaper 

Bitcoin: A Peer To Peer Electronic Cash System

• A pure peer-to-peer 'e-cash' would remove the need for intermediaries and financial institutions 
  • Transactions between two parties no longer need a 'supervisor' 
  • No Middle Man-P2P
• Digital Signatures are part of the solution
  • But they do not solve the 'Double-Spending' Problem 
• This Paper proposes a solution:
  • A Peer-to-Peer network that timestamps transactions by hashing them into an ongoing chain of hash based Proof-Of-Work (POW), thus forming a record that cannot be changed without redoing the proof of work. 
    • The longest chain provides the Proof of Work 
    • As long as a majority of CPU power is controlled by 'good' nodes we are fine 

1. Introduction 

"Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments"

• This system has inherent weaknesses since it is using the Trust Based Model 
• Non Reversible Transactions are impossible 
• Banks and FinInst. are forced to act as mediators
  • As cost of mediation increases it increases things such as transaction cost
    • Limites minimum practical transaction sizes
• Possibility Of Reversal leads to inherent need for more trust from merchants
  • "Hassling them for more information than they would otherwise need."
• Fraud Is Expected and Accepted as unavoidable 
• Using cash fixes this, but no payment mechanism exists to make payments over a communications channel without a trusted party. 
• A system based on Cryptopgraphic Proof over "Trust" is necessary. 

"In this paper, we propose a solution to the double-spending problem using a peer-to-peer distributed timestamp server to generate computation proof of the chronological order of transactions."