mining

Part 3 of 5. New bitcoins exist because computers race to win a lottery-style puzzle, and the prize is the right to add the next page.

Pete Rizzo investigates the unexplained ~5-day, 8-hour gap between the Genesis Block (January 3, 2009) and Block 1 (January 9, 2009), framing it as one of Bitcoin's enduring unsolved mysteries.

Jameson Lopp shows Satoshi deliberately throttled mining capacity, earning ~1.1M BTC when full capacity could have yielded ~2.19M BTC. Anyone claiming Satoshi was greedy hasn't done the math.

In a podcast interview, security researcher Dustin Trammell (Druid) describes being possibly the second node on the Bitcoin network — seeing only one other node for hours after first connecting.

Reykjavik University researchers published the first peer-reviewed study of the Patoshi pattern in PLOS ONE, identifying two nonce anomalies (P and Z) and finding P in all of the first 64 blocks.

Multiple blockchain analyses estimate that Satoshi Nakamoto mined approximately 1.1 million bitcoins in Bitcoin's earliest days, with the vast majority of these coins never having been spent.

Lerner published The Patoshi Mining Machine, using re-mining to argue Satoshi mined on one high-end CPU scanning 5 nonce subranges in parallel, not on about 50 networked computers.

Whale Alert independent analysis confirmed Satoshi mined 1,125,150 BTC across 22,503 of the first 54,316 blocks, claiming ~48 computers (later disputed by Lerner's single-PC simulation).

Lerner's 2019 post The Return of the Deniers and the Revenge of Patoshi coined the name Patoshi and, from the absence of timestamp inversions, showed the blocks came from one PC's clock.

Tim Swanson's comprehensive interview with Ray Dillinger for the Bitcoin whitepaper's 10th anniversary. Dillinger reveals technical details of his code review, including the floating-point discovery.

Ray Dillinger's full 2018 interview for the Bitcoin whitepaper's 10th anniversary: his 2008 code review, the floating-point discovery, and his views on deflation and mining centralization.

In a LessWrong post, Wei Dai revealed that Satoshi had emailed him about Bitcoin v0.1 in early 2009, but that he ignored it because he was more interested in LessWrong than Cypherpunks at the time.

Four and a half months after his ExtraNonce analysis, Lerner found Satoshi's nonce values had a non-random LSB distribution — a second fingerprint of custom mining software with nonce partitioning.

Sergio Demian Lerner (1972–): Argentine cryptographer and blockchain researcher whose Patoshi analysis identified Satoshi as the dominant early miner, holding ~1.1M BTC and spending almost none.

Sergio Demian Lerner published The Well Deserved Fortune of Satoshi, identifying a distinctive mining pattern (later named Patoshi) linking ~22,000 blocks (~1.1M BTC) to a single miner.

Defines the getblocktemplate JSON-RPC method for requesting a full block template from a Bitcoin node and submitting completed blocks back via submitblock.

Benjamin Wallace's Wired feature — an early major mainstream article on Bitcoin. Traces the whitepaper, mining boom, Mt. Gox hack, and growing pains, ending with Garzik's "We really don't care."

Chinese entrepreneur (1986–). Translated Bitcoin whitepaper into Chinese (2011), co-founded Bitmain (2013), backed Bitcoin Cash with hashpower (2017), later founded Matrixport and Bitdeer.

RHorning advocates for UI tools to adjust fee schedules and mining policies, noting that free transactions currently work but may not be sustainable long-term.

The bitcoin.org FAQ: Bitcoin's peer-to-peer design, coin generation, why mining margins shrink as value rises, and wallet and transaction basics. Drafted by Malmi, maintained by both him and Satoshi.

Satoshi outlines the economic model of Bitcoin, explaining that rational market prices reflect expected future value, and compares production cost dynamics to commodity pricing.

Bitcoin's first price was a production-cost estimate. Satoshi predicted in 2010 that market price would come to dictate production cost — not the reverse. The arc from 2009 to modern models.

NewLibertyStandard publishes the first exchange rate for Bitcoin: $1 = 1,309.03 BTC ($0.000764 per BTC), calculated from the electricity cost of mining — a rudimentary but historic first valuation.

In earlier answers compiled for Malmi, Satoshi weighs Bitcoin's energy use against banking's costs and names the tension between economic liberty and conservation.

Satoshi explains Bitcoin's proof-of-work mining, halving schedule, and fixed supply to Joerg Baach and Sepp Hasslberger, comparing it to a precious metal with predetermined supply and varying value.

Trammell confirms his IP is static, agrees to CC publicly, says he'll join bitcoin-list, reveals he started mining as an investment after Hal Finney's message, and discusses micropayment uptake.

Trammell shares his IP for Satoshi to send coins, says proof-hashes is open for posting, names the challenge of getting people to value bitcoins, and compares mining to a roulette wheel.

Satoshi informs Trammell that bugs are fixed in v0.1.3 and offers to send him some coins via the send-to-IP feature. The payment became one of the earliest known direct Bitcoin transfers.

Trammell asks what prevents the most powerful node from generating the majority of bitcoins — one of the earliest questions about mining centralization.

Trammell reports two issues upgrading from v0.1.0 to v0.1.3: the old process wouldn't exit, and all four generated coins showed 'Generated (not accepted)' — likely orphans from the communications bug.

Trammell tells Satoshi about his proof-hashes Google Group, gives feedback on the credit field display, says he is running v0.1.1 and will upgrade, and offers to help test new features.

Satoshi replies to Dustin Trammell, explaining the coin maturity system and recommending an upgrade to version 0.1.3 which had stabilized the software.

Dustin Trammell's first email to Satoshi after running the Bitcoin alpha. He reports how it ran, mentions a public timestamp service, and asks about coin maturity (new coins showing 0.00 credit).

Information security researcher from Austin, Texas, among the first to run Bitcoin after release. Emailed Satoshi on January 12, 2009 and received 25 BTC — an early person-to-person transfer.

The first known tweet about Bitcoin. Hal Finney posted 'Running bitcoin' two days after Bitcoin v0.1 was released, on January 10/11, 2009. He was the first known person other than Satoshi to run it.

Hal Finney congratulates Satoshi on the first alpha and his famous thought experiment: if Bitcoin becomes the dominant payment system, each coin would be ~$10M — early mining a 100M-to-1 payoff bet.

In 2008 Satoshi wrote that only coin creators would eventually need to run nodes. Mining did leave ordinary computers; nodes did not. Who runs the nodes at 25,489 reachable addresses, and why, unpaid.