Satoshi Nakamoto’s Bitcoin Distribution ‘Fairest’ Possible System, Study Claims
A study by Interchange claims that the system of bitcoin distribution by its founder, with pseudo name Satoshi Nakamoto is fairest system possible.
Released in part by Dan Held, co-founder of Interchange, the findings of the study posit that the Bitcoin distribution processes remain the most honest and equitable to date, particularly in comparison with the methods favored by many of the pre-mined altcoins that exist today.
Despite claims in some quarters that the distribution of other cryptocurrencies outperforms bitcoin, Held’s led study claims bitcoins distribution is still the fairest yet. He argues that the Bitcoin network “continues to challenge mainstream thought” as it soars in popularity.
However, he acknowledges that the protocol is still struggling to shake off gripes about specific aspects of its existence.
He said one of those is that the distribution of Bitcoin wasn’t ‘fair,’ particularly in the earlier stages of network development…(but) Satoshi set out to design the fairest system possible.
Held dives into the earliest days of the Bitcoin protocol, before the concepts of ‘pre-mining’ or ‘insta-mining’ even existed.
Pre-mining is the act mining lots of coins privately; usually in such cases, the developers end up keeping the largest stash of the currency. But Held claims that the message in the genesis block about the chancellor bailing out the banks is an argument in itself against the wisdom of pre-mining.
The study also suggests that Satoshi gave the public a two-month lead time before mining the first block. People such as Hal Finney and others listened to Satoshi right away and began mining the currency.
But as the study claims, it was up to Satoshi and a small handful of miners to keep the nascent network running in those early days. Still it is widely known that this small group of miners also left the mining scene just a few short years after Bitcoin was firmly up and running.
“For the first year of Bitcoin’s existence, Satoshi and other miners couldn’t muster enough hashrate to mine more than 144 blocks/day and trigger an upwards difficulty adjustment,” Held says.
He said that Satoshi mined because the network needed people to do so.
The study continues that Satoshi reduced his percentage of the hashrate in a slow and steady manner. The Satoshi-fingerprinted mining carefully balanced the hashrate of the cluster, with the goal of historically viewable well-meaning intentions — Satoshi initially followed a plan of reducing the hashrate by 1.7 Mhps every five months. But a month after the second such drop abandoned this method in favor of a continuously decreasing hashrate.