What did Satoshi Nakamoto actually solve?
Bitcoin wasn’t the first attempt at digital money — far from it. Projects like DigiCash, b-money, Hashcash, and e-gold all came before. They had good ideas, but each failed to solve one core problem:
👉 How do you reach consensus in a decentralized network when you can’t trust any single actor? This is known in computer science as the Byzantine Generals Problem — how do distributed participants agree on a single source of truth when some of them might be malicious or unreliable?
Here’s how Satoshi solved it:
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🧩 1. Distributed Ledger with Proof-of-Work
Satoshi used proof-of-work (via Hashcash) to make it costly to propose the next block in the ledger. This deters spam, prevents Sybil attacks (fake identities), and anchors the system to real-world energy.
Each block includes a timestamp and hash of the previous block, creating a chain of proof that is hard to rewrite — a time-based truth record.
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⚖️ 2. Incentive Alignment via Mining Rewards
Bitcoin’s design economically incentivizes honesty.
Miners are rewarded with Bitcoin for proposing valid blocks. If they cheat (e.g., try to double spend or rewrite history), they lose their reward and the cost of energy they spent mining — aligning incentives with network security.
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🔁 3. Decentralized Consensus via Longest Chain Rule
Nodes follow the longest valid chain with the most accumulated proof-of-work.
No need to trust any central coordinator. No single point of failure. Consensus emerges organically as honest nodes converge on the same version of history.
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🔐 4. Trustless Peer-to-Peer Value Transfer
With this setup, Bitcoin enables: • Scarce digital money • Permissionless transactions • Immutable records • No need for banks, governments, or trusted third parties
This had never been achieved before in a functioning, decentralized system.
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🟠 The Breakthrough
Satoshi didn’t invent every part of Bitcoin — he combined known ideas into a novel architecture that finally solved the Byzantine Generals Problem in a decentralized, permissionless environment.
That’s why Bitcoin is so much more than “digital money.” It’s the first working blueprint for a trustless financial system — and the foundation for a future beyond centralized control.
It’s a big loop I’m tying together. But here’s the thread that connects it all:
1️⃣ The Byzantine Generals Problem is about how to coordinate trust when you can’t trust the messenger. Bitcoin solved that — it’s the digital solution to decentralized consensus.
2️⃣ The Byzantine Empire was the longest-lasting empire in history — over 1,100 years. It was nearly impossible to conquer. Why? Because it mastered coordination, logistics, and defense.
3️⃣ The ANZACs at Gallipoli? We sent 1 in 10 Kiwis to die at the literal ruins of that empire. For someone else’s war. A failure of leadership, coordination, and truth.
🟠 Bitcoin ties it all together: It’s the answer to the problem of trust. It’s the digital fortress. It’s a system built not on commands, but consensus.
No emperors. No generals. Just truth.
3 Empires. 1 Truth.
We’ve faced the same problem for centuries:
🧠 How do we coordinate truth in a world where trust breaks down?
From the Byzantine Generals Problem,
to the resilience of the Byzantine Empire,
to ANZACs at Gallipoli — caught in someone else’s war…
We’ve paid the price for broken systems.
But now, for the first time in history,
we have a system that doesn’t need kings, generals, or blind trust.
Just code. Consensus. And time.
Bitcoin is the fortress. The truth machine. Built to last.
Bitcoin meetup this Sat, 4pm @ Andrew Andrew (Auckland Viaduct). Pay in sats, grab a drink, talk sound money. 🍸⚡ #Bitcoin #spendsats
I’ve got a few days free next week in LA, who’s around?
The biggest bitcoin conference in the southern hemisphere?
I’m working on it…
Who’s going to Las Vegas Bitcoin?
People have been telling me they buy from Speed Wallet and Strike too.
They do if Dion has anything to do with it, fucken spammer.
You are spamming people, stop.
nostr:npub1np3k45ep5qkvueq4sq7upk35l787xepnpt8egd6q5vz26ugx2fsqfl4mnu your profile pix.. laughed out loud 🤘
nostr:npub1jmy8weweqzckna0amz7pn0uhhkxx693l7st23829ewmu43yvjsesfp6xcq I saw your shirt like this and want to make a patch for my jacket 😅
Yours is different aye?
12th April at Andrew & Andrew in the Viaduct, accepting bitcoin!
Waiheke workshop on the 19th too.
My 40th Bday next month, 3 - 5 days down the Whanganui River!
Who’s keen to join me?
YouTube.com/@nzbitcoiners
Telegram
https://t.me/NZBitcoinersGroup
FB messenger
https://m.me/j/AbYf_rc8JihmqgPA
https://chat.whatsapp.com/FFUUsgXAkrcHNd3rSZXs46
https://www.Facebook.com/NewZealandBitcoiners
https://www.Instagram.com/newzealandbitcoiners
https://www.linkedin.com/groups/14153188
https://www.linkedin.com/in/freevendormortgagesalehelp
https://www.reddit.com/u/JamesBeaumont77
Waiheke FB Group
https://www.facebook.com/share/g/1YHgBqe4t7
Get ready for Bitcoin ALIVE 2025 on March 8th at the Roundhouse, Sydney! Hear James Check, Piers Cockram, and more on Bitcoin’s future, plus workshops, panels, and a Bitcoin Rap Show. Networking drinks and after-party included. Grab tickets now: https://bitcoinalive.io/ 
Are you actually on the island?
We had a BBQ on Saturday…
Got Signal?!?
New Bitcoin meetup on Waiheke!
Waiheke BTC Republic – a casual way to connect with other Bitcoiners over BBQs and beach swims. No sponsors, no nonsense—just good vibes and great people.
If you’re keen, join the Facebook group. Bitcoin only.