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Nakamoto Whitepaper - Coggle Diagram
Nakamoto Whitepaper
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Trust based model
completely non-reverable transactions are not really possible, since thrid parties cannot avoid mediating disputes
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Trustless solution
electronic payment system based on cryptographic proof instead of trust allowing any two parties to transact directly with eachother without the need for a trusted third party
transactions that are computationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers
peer-to-peer distributed timestamp server to generate computational proof of chronological order of transactions, the system is secure as long as honest nodes collectively control more CPU pwoer than attacker nodes
Double-spending problem
costless duplication is not a desirable trait in money. It would not be desirable to have a monetary system which allowed anyone to duplicate their money at will. This is the Double Spend Problem: how can a receiver of digital money be sure that the money they were sent was not simultaneously sent to someone else? How can all members of a monetary network be sure others are not duplicating their money at will?
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