Were you looking for some of interesting facts about Bitcoin? You came to the right place! We gathered some of the most surprising facts about cryptocurrency queen, that you had no idea about!
Is DigiCash Bitcoin’s forefather?
Although, Bitcoin is called the very first cryptocurrency, the history of money based on cryptography goes back to to times, when the concept of creating BTC has not even been born yet. There are very few, that remember about it, but it is definitely worth mentioning. DigiCash can be considered as the ancestor of Bitcoin, although without a use of blockchain technology. It didn’t jump to mainstream and didn’t make such sensation on a market as digital gold did. However, this does not mean that its creation was not a historic step.
Everything started in the early 90s. A young american crypto enthusiast and IT specialist, David Chaum, was working on electronic payment system, that would be undetectable. He shared his theory for the first time in 1983, when his article appeared in scientific journal. At the end of 1989, he founded a company DigiCash.
Until now, it is believed that it was the very first major attempt in creating electronic payment system. You may be wondering, why did DigiCash fell, if it was quite extraordinary? David Chauman wanted transactions to be anonymous. By that, digital currency was founded. It was not controlled by any government financial bodies. DigiCash has released Cyberbucks. A million of coins were created and distributed among the first users and crypto enthusiasts.
DigiCash was meant to ensure safety for Internet transactions. Its success depended mainly on gathering sufficient number of users, who would like to support Cyberbucks and sellers, that accept such payment method. At the same time, it could become a competitor for Visa and Mastercard, which could only accept large amounts by that time. DigiCash was different than these two, because it was projected mainly for growing online retail sector. It was supposed to accept small transactions.
The assumptions implied, that the user would buy digital currency in his bank. The bank would know the amount of transferred money, but would not have any informations about how the money was spent. DigiCash was using so-called blind signature. Transactions were to be placed in a special, digital envelope. The bank was sure, that they are valid, without need of revealing the sender’s informations.
In 1996 Chaum left the company. It was told, that he didn’t manage to find common language with co-workers. It was said, that he became a paranoiac. Such words appeared on the Dutch Next magazine. Two years later, DigiCash announced bankruptcy. What went wrong? According to what company owner says, retailers complained about small amount of users, along with users complaining, that there are no places where they can pay in this way.
DigiCash was not decentralized. The model, that DigiCash was based on, was used by Satoshi Nakamoto in 2008, when he Bitcoin’s whitepaper.
First Bitcoin transaction was a purchase of two … pizzas
Two pizzas were bought for 10 000 BTC. Yes, 10 000 BTC. It was in 2010, when such amount of BTC was worth 25 USD. Currently, with a 1 Bitcoin worth of 6 500 USD, it would be 65 million USD. This event will be forever remembered by the cryptocurrency industry. Bitcointalk user, Laszlo, has significantly overpaid two pizzas, but how could he know, that in less than few years, BTC will multiply its value.
Four years after this historical transaction, he wrote on forum, that he traded 10 000 BTC with an ease. He emphasised, that despite the fact that people call him a fool, it was a great opportunity for him. This event will forever remain in cryptocurrency industry calendars.
First Bitcoin faucet gave away 5 BTC per user
It may be shocking, but it was so in 2010. The creator of website, where a user could collect free Bitcoins is Gavin Andersen. Each of users received 5 Bitcoins. The purpose of this game was to promote cryptocurrencies and Bitcoin itself, because back then, it was not as popular as it is now.
Currently, there is a huge gap between faucets back then and now. For example, websites like Bonus Bitcoin, allows you to claim 5000 Satoshis every 15 minutes. It is about 0,3$, depending on current BTC price. In fact, the website itself gives away less than 5 Satoshis, which are worth almost nothing.
Satoshi is not the smallest Bitcoin unit
Although, most of people believe, that Satoshi is the smallest unit of Bitcoin system, they may be surprised. Of course, Bitcoin is divided to 8 zeros after the decimal point - it is true, but it does not mean, that Satoshis can’t be divided too.
It all comes to the micropayments and The Lightning Network. The unit called Millisatoshi (MSAT) equals one thousandth of Satoshi
1 Satoshi = 1 000 Millisatoshi
1 Satoshi = 0.00000001 BTC
Bitcoin wallet private keys are integers from 1 to 10 to the power of 77
To guess the private key of Bitcoin wallet, we would have to spend a lot of years on it. Speaking more precisely, it would be 10 to the power of 33. It would require a lot of computing power.
Breaking someone’s private key is almost impossible. It is not know, what will the future bring though. Perhaps quantum computer would be capable to solve such mathematical equations. In this case, scientists would be probably working on moving to cryptography resistance and specialized devices to prevent breaking the codes.
FBI agents involved in the Silk Road investigation were criminals?
Do you remember history of Silk Road? It was the largest darknet site ever hiding, where you could buy everything: drugs, guns and so on for Bitcoins. It is said, that creator of this platform was Ross Ulbricht. It was founded in 2011, but it didn’t last long. It was closed by law enforcement two years later
It is interesting fact, that two of Secret Service agents, which were assigned to this case, got closed in jail. As it turns out, they laundered money and obstructed the Silk Road investigation.
Hacker generated 184 billions of BTC
This error occurred on one of the Bitcoin blocks, specifically on the block number 74 638. This led to to creation of a huge number of BTC coins. However, the problem was quickly solved. Within about 5 hours after an event occured, a new Bitcoin version (0.3.10) was introduced.
By that, huge amount of BTC creation got ignored, like they never existed. Bitcoin community accepted this change. It was forked, and removed from blockchain. This even has been called as a value of overflow incident.