..

The Bitcoin White Paper: Timestamp Server

Written by:
Aaron Goldstein
Published on:
Apr/07/2021

Continuing to review the series of dialogues between Dr. Craig S. Wright and Ryan X. Charles, where they discuss the Bitcoin White Paper line-by-line, we come to the section concerning the Timestamp Server. Dr. Wright is the inventor of Bitcoin and the Chief Science officer at nChain while Ryan is the founder of Money Button. 

 

In short, a timestamp server is a way to document when an event occurred as well as prove that at some point the transaction existed. This process of using electronic timestamps has been utilized for decades for everything from credit card transactions to bank transfers.  

Prior to electronic timestamps, Dr. Wright refers to the process of using a notary. Good notaries recorded the data in a book and maintained that information for future reference as needed. The integrity of the information was at risk of loss perhaps due to physical damage to the book such as a fire or other unforeseen risks. 

There are two basic types of timestamp servers. One is using a trusted third party and the other is distributed trust using hash headers. When it comes to Bitcoin, the nodes aka Bitcoin miners, are a distributed set of timestamp servers. These timestamp servers take a hash of a block that has been timestamped then post or distribute it publicly. Each of the timestamps include the previous timestamp in its’ hash creating a chain, therefore reinforcing the one before it. All of which takes place automatically using the Bitcoin system that is in place. 

The security within Bitcoin actually requires a large amount of SPV nodes (not the actual Bitcoin mining nodes) across the network to be used thus widely recording block headers globally. This is how the system is scaled and becomes more secure by having the information spread out in more places. The SPV nodes are only storing the block headers of the timestamps which allows them to store more data including any forks or splits. 

A banking system such as SWIFT (Society for Worldwide Interbank Financial Telecommunication), which is an EDI (Electronic Data Interchange), can ultimately be replaced by Bitcoin and scaled. While it does have a widely used set of standards, it is a single key system.  

If the single key is compromised, the entire history of the transaction is compromised whereas Bitcoin using public/private keys and widely distributing them reduces the potential for fraud. Someone gaining your public key can do nothing with it. If someone gets your single SWIFT key, they potentially can access your information and manipulate your account. Additional security issues with using SWIFT to transfer money globally is due to the transactions passing through multiple gateways. 

Video News News

Kentucky vs. Ole Miss Prop Bets October 1

Prop bets for Will Levis and Jaxson Dart as well as the winning margin of victory and double result are available for this game.

Dolphins vs. Bengals game and player prop bets are available

Dolphins vs. Bengals Prop Bets - September 29 Thursday Night Football

The Miami Dolphins vs. Cincinnati Bengals game Thursday night features a betting line of Bengals -3.5.  The line has reached the -4 on occasion this week.

NFL Week 4 Picks and Predictions | Best NFL Odds, Latest News & Free Picks

NFL Week 4 Picks and Predictions | Best NFL Odds, Latest News & Free Picks

Our friends at BetUS have released their 2022 NFL Week 4 picks following a Week 3 that resulted in some seismic shifts in the futures odds for some teams.

"Crazy Eddie" Nephew Sues BetMGM Claiming Online Casino Glitches Led to Losses

Plaintiff is alleging to to have been allowed to gamble in excess of $24 million in 2019 and $5 million during a 6-day period in 2020.  The software provider was just awarded "Most Socially Responsible" by one of the industry's most respected conference organizers.

Big Wins for Sportsbooks NFL Week 3: Chiefs, Bills Losses a Big Help

Big Wins for Sportsbooks NFL Week 3: Chiefs, Bills Losses a Big Help

Drew Butler, Anthony Becht and 2x Super Bowl winner Jonathan Casillas share their betting picks for this Monday Night Football game.

Syndicate