A new HBO documentary aired on October 8 claims to have uncovered the true identity of Satoshi Nakamoto, Bitcoin's elusive creator. This announcement has reignited speculation about the cryptocurrency's origins.
Leading rival American cryptographer and computer scientist Nick Szabo has emerged as a leading contender. Though another intriguing possibility is also in sight - the NSA theory.
Nick Szabo is Satoshi Nakamoto?
The HBO film claims that Szabo first made contributions to blockchain technology in the early 1990s, before Bitcoin ever started. 1989 saw Szabo graduate from the University of Washington with a computer science degree. Later on, George Washington University Law School awarded him a Juris Doctor.
Szabo first proposed the idea of "smart contracts" in 1994 This creation sought to use codes to provide digital transactions legal certainty. Since then, smart contracts have become pillar of the more general blockchain scene.
Szabo proposed a digital currency called "Bit Gold" in 1998. This concept shared several key features with future Bitcoin. For instance, Bit Gold was designed to be entirely digital and operate without intermediaries. The proposed currency solved the double-spend problem using proof-of-work. However, Bit Gold relied on a quorum of addresses for consensus, rather than computing power. This approach potentially left it vulnerable to Sybil attacks, experts say.
Szabo explained his motivation for Bit Gold: "A long time ago I hit upon the idea of bit gold. The problem, in a nutshell, is that our money currently depends on trust in a third party for its value." He added, "As many inflationary and hyperinflationary episodes during the 20th century demonstrated, this is not an ideal state of affairs." This reasoning closely mirrors the rationale behind Bitcoin's creation.
A decade after Szabo's Bit Gold proposal, Satoshi Nakamoto published the Bitcoin white paper in October 2008. The similarities between the two concepts have not gone unnoticed. Speculation about Satoshi Nakamoto's identity is almost as old as Bitcoin itself. Several candidates have emerged over the years, but Szabo remains one of the most popular theories.
The HBO documentary's claim has sparked renewed interest on prediction markets.
On Polymarket, a leading platform, Szabo has taken a commanding lead as the potential Satoshi. Szabo's odds are in the double digits, while all other contenders remain in single figures. This shift indicates growing confidence in Szabo as a serious candidate.
The case for Szabo as Satoshi Nakamoto rests on several factors. His invention of Bit Gold, which shares conceptual similarities with Bitcoin, is a key piece of evidence.
Szabo's broader contributions to blockchain and cryptocurrency demonstrate his technical expertise. This background lends credibility to the theory that he could have created Bitcoin.
Author Dominic Frisby, in his book "Bitcoin: The Future of Money?", notes similarities between Szabo's and Satoshi Nakamoto's writing styles. Both also referenced economist Carl Menger in their work.
Szabo is known for his strong stance on privacy. This aligns with Satoshi Nakamoto's rumored inclination towards anonymity.
Unlike some who claim to be Satoshi, Szabo has regularly denied being the Bitcoin inventor. For some of the supporters, this denial has ironically strengthened their case.
NSA Created Bitcoin?
The HBO documentary explores another intriguing theory. It raises the possibility that the National Security Agency (NSA) was involved in the development of Bitcoin.
This theory is based on the fact that the NSA is well-known for its proficiency in cryptography. The underlying technology of Bitcoin is highly congruent with the agency's research in this area.
Bitcoin was based on ideas presented in a 1996 NSA research article. "How to Make a Mint: The Cryptography of Anonymous Electronic Cash" laid out a blueprint that was reminiscent of Bitcoin's architecture. An important patent was filed by an NSA cryptograph on March 5, 2001. Researchers were interested in the "Device for and method of one-way cryptographic hashing" patent that was held by Glenn Lilly.
As stated in the patent, "The United States of America as represented by the National Security Agency" is the named assignee. This signifies that the patent is owned by the government.
The National Security Agency (NSA) is the rightful owner of this cryptographic technology.
The report by 10x Research emphasizes how crucial the patent is to the evolution of Bitcoin.
The publication states that the "widely used secure hashing algorithm (SHA-256)" is the patented technology. The protocol that Bitcoin uses this algorithm is vital.
The Bitcoin mining algorithm and hash function rely on SHA-256. It is an essential part of the cryptocurrency's safety system.
All royalties on this patent have been waived by the NSA. Datatracker has verified this decision, so the technology can be used widely.
There has been a lot of conjecture about the link between NSA studies and the technology behind Bitcoin. Nevertheless, there is no evidence that the NSA had any hand in creating Bitcoin.
It is yet unknown Satoshi Nakamoto's actual identity. Still, the forthcoming HBO documentary promises to open a fresh chapter on this ongoing mystery.
Speculation keeps rising as the world of cryptocurrencies waits for the documentary to premiere. The possible unmasking of Bitcoin's inventor could have broad effects on the sector.