Nick Sabo is Satoshi Nakamoto. So it says in one of the hypotheses about the identity of the creator of bitcoin. Szabo himself denies this, although it was he who developed the predecessor of all cryptocurrencies – Bit Gold 20 years ago. Here’s what is known about this cryptogeny.
Nick Szabo is a programmer, legal scholar and cryptographer who coined the term “smart contract” and the Bit Gold concept.
Szabo received his degree in computer science from the University of Washington and his doctorate in law from the George Washington University. In addition, he is Professor Emeritus at Francisco Marroquín University in Guatemala.
In fact, Szabo made a huge, albeit indirect, contribution to the creation of Bitcoin technology. The decentralized digital currency Bit Gold, whose concept he proposed, is the predecessor of the Bitcoin architecture. And many believe that it is Sabo who is the legendary founder of Bitcoin Satoshi Nakamoto, although he himself constantly refutes these rumors.
Very little is known about where Sabo lives, where he is from and how old he is. We don’t know anything about him other than his views on technology and economics.
Nick Szabo defined smart contracts 14 years before Bitcoin. His debut in the cryptosphere dates back to 1996, when he published an article in Extropy magazine, “Smart Contracts: Building Blocks for Digital Free Markets.”
According to Szabo’s definition, a contract is “a set of mutual agreements, which is a traditional form of fixing the obligations of the parties.” Here’s what he writes:
“The fundamental principle behind smart contracts is that different types of contractual obligations (for example, liens, liabilities, clarification of property rights, etc.) can be digitally recorded so that non-compliance will cost the violator too much. “
Szabo also predicted that the digital revolution will fundamentally change the way people make contracts, and even questioned whether traditional contracts would still be used in the coming virtual era.
Szabo formulated four main objectives of contracts, which, according to him, will be better implemented in smart contracts: observability, verifiability, confidentiality and enforceability.
Smart contracts became popular after the creation of the Ethereum platform, which uses the Solidity language to compose them.
In 1998, Szabo formulated the concept of Bit Gold – a way to turn bits and computing resources into something of value.
Bit Gold arose from the fact that Szabo considered the existing financial system to be imperfect and did not approve of the use of precious metals as currency.
“It would be great to create a protocol that, with a minimal role for a third party, creates non-counterfeit valuable bits that can then be securely stored, translated, and probed without the need for intermediaries. That would be bit gold, ”Szabo wrote in his article on Bit Gold.
Szabo saw Bit Gold as a kind of reserve currency, created on computer hardware using the Proof-of-Work algorithm.
The main principles of the Bit Gold system proposed by Szabo are described below.
Szabo posted this text on his blog in December 2008, copying it from an article he wrote in 2005. A month later, Satoshi Nakamoto released the bitcoin source code on SourceForge and mined the first bitcoin.
Although the Bit Gold project was never implemented, it is one of the first attempts to create a decentralized digital currency and the immediate predecessor of the Bitcoin protocol proposed by Satoshi Nakamoto.
Bitcoin and Bit Gold
According to the CoinCentral website, there are many similarities between the Bitcoin architecture and the Bit Gold project, especially in the technical part related to conducting transactions and ensuring the reliability of the decentralized network.
Both Bitcoin and Bit Gold use the PoW consensus algorithm, where computing resources are used to solve cryptographic problems. The resulting solutions to these problems are then processed by the peer-to-peer network.
A cryptographic hash chain is created, which links the solution of the last task to the next task, thereby confirming the blocks of transactions. This process of fixing transactions in the system is the same for Bitcoin and Bit Gold.
Nick Szabo is almost as mysterious as Satoshi, and many believe that he and the creator of Bitcoin are one and the same person. Someone even conducted a numerological analysis of the names of Satoshi Nakamoto and Nika Sabo and established a correlation between them.
The New York Times has also suggested that Nick Szabo is probably Satoshi Nakamoto, although he himself has repeatedly denied these claims.
An expert known as Sky Gray studied the writing style of Nick and Satoshi and stated that Sabo is the main contender for the role of Nakamoto. She has published a detailed comparative textual analysis of texts written by the creator of bitcoin, hiding under the pseudonym Satoshi Nakamoto, and the scientist Nick Szabo from George Washington University.
A Medium article provides additional arguments for this hypothesis. According to this text, “Sabo and Satoshi use practically the same words to explain why bitcoin has value.”
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