The first paragraph of the Bitcoin white paper directly addresses a fundamental issue in electronic commerce: the inefficiency and costliness of processing small, casual transactions through third-party intermediaries.
The core problem is that the reliance on financial institutions as trusted third parties makes such transactions impractical. When intermediaries are involved, transaction costs increase, making low-value, everyday exchanges economically unviable. This issue forms the foundation of Bitcoin's purpose as outlined in the white paper.
Bitcoin's purpose, then, is to provide a system that facilitates small, casual transactions directly between parties without the need for trust in an intermediary. The idea is not simply to remove third parties but to do so in a way that specifically enables transactions that would otherwise be too costly or cumbersome due to fees and processing requirements associated with traditional financial systems.
Bitcoin achieves this purpose by creating a decentralized network that removes the need for trust in a central authority. Instead, it relies on cryptographic verification to enable transactions to occur directly between users at minimal cost, bypassing the expense and inefficiencies imposed by intermediaries. By eliminating the need for a trusted third party, Bitcoin makes low-value, frequent transactions feasible and economically practical, addressing the specific problem identified in the opening paragraph of the white paper.
In stark contrast to Bitcoin’s intended purpose of enabling small, casual transactions without intermediaries, BTC has evolved into something entirely different. High fees on the BTC network have rendered the system impractical for low-value exchanges, directly opposing the original vision laid out in the white paper. Instead of supporting direct, economical transactions, BTC’s fee structure forces users to seek alternatives for practical usability.
As a result, many users are compelled to store their BTC on third-party exchanges or "bucket shops," where they rely on centralised entities to facilitate transactions. This reliance on intermediaries for holding and managing funds reintroduces the very problems Bitcoin sought to solve: dependency on third parties, increased costs, and vulnerability to restrictions or failures of centralised systems. BTC, therefore, fails to meet the standard set by the original Bitcoin concept, as it can no longer function as a practical, peer-to-peer cash system for everyday transactions.
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S. Tominaga AKA CSW
Nov 3, 2024
https://threadreaderapp.com/thread/1852923902881939939.html
https://t.me/S_Tominaga/1808
The core problem is that the reliance on financial institutions as trusted third parties makes such transactions impractical. When intermediaries are involved, transaction costs increase, making low-value, everyday exchanges economically unviable. This issue forms the foundation of Bitcoin's purpose as outlined in the white paper.
Bitcoin's purpose, then, is to provide a system that facilitates small, casual transactions directly between parties without the need for trust in an intermediary. The idea is not simply to remove third parties but to do so in a way that specifically enables transactions that would otherwise be too costly or cumbersome due to fees and processing requirements associated with traditional financial systems.
Bitcoin achieves this purpose by creating a decentralized network that removes the need for trust in a central authority. Instead, it relies on cryptographic verification to enable transactions to occur directly between users at minimal cost, bypassing the expense and inefficiencies imposed by intermediaries. By eliminating the need for a trusted third party, Bitcoin makes low-value, frequent transactions feasible and economically practical, addressing the specific problem identified in the opening paragraph of the white paper.
In stark contrast to Bitcoin’s intended purpose of enabling small, casual transactions without intermediaries, BTC has evolved into something entirely different. High fees on the BTC network have rendered the system impractical for low-value exchanges, directly opposing the original vision laid out in the white paper. Instead of supporting direct, economical transactions, BTC’s fee structure forces users to seek alternatives for practical usability.
As a result, many users are compelled to store their BTC on third-party exchanges or "bucket shops," where they rely on centralised entities to facilitate transactions. This reliance on intermediaries for holding and managing funds reintroduces the very problems Bitcoin sought to solve: dependency on third parties, increased costs, and vulnerability to restrictions or failures of centralised systems. BTC, therefore, fails to meet the standard set by the original Bitcoin concept, as it can no longer function as a practical, peer-to-peer cash system for everyday transactions.
• • •
S. Tominaga AKA CSW
Nov 3, 2024
https://threadreaderapp.com/thread/1852923902881939939.html
https://t.me/S_Tominaga/1808
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