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Stornetta and Nakamoto Invented Bitcoin

(p. C18) In 1990, the physicist Scott Stornetta had a eureka moment while getting ice cream with his family at a Friendly's restaurant in Morristown, N.J. He and his cryptographer colleague, Stuart Haber, had been thinking about the proliferation of digital files that accompanied the rise of personal computing and the ease with which files could be altered. They wondered how we might know for certain what was true about the past. What would prevent tampering with the historical record--and would it be possible to protect such information for future generations?

The sticking point was the need to trust a central authority. But at Friendly's, an answer came to Dr. Stornetta: He realized that instead of a central record-keeper, the system could have many dispersed but interconnected copies of a shared ledger. The truth could never be typed over if there were too many linked ledgers to alter.

Drs. Haber and Stornetta were working at the time at Bellcore, a research center descended from the legendary Bell Labs. The pair set out to build a cryptographically secure archive--a way to verify records without revealing their contents.

. . .

. . . there is no mistaking their crucial contribution. When the founding document of bitcoin was published in 2008 under the name " Satoshi Nakamoto "--a pseudonym for one or more scientists--it had just eight citations of previous works. Three of them were papers co-authored by Drs. Haber and Stornetta.

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The Nakamoto paper revolutionized the foundational work of Drs. Stornetta and Haber by adding the concept of "mining" cryptocurrencies. It created financial incentives for participation in retaining and verifying parts of the blockchain ledger.

For the full commentary, see:

Amy Whitaker. "The Eureka Moment That Made Bitcoin Possible; A key insight for the technology came to a physicist almost three decades ago at a Friendly's restaurant in New Jersey." The Wall Street Journal (Saturday, May 26, 2018): C18.

(Note: ellipses added.)

(Note: the online version of the commentary has the date May 25, 2018.)

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