Nakamoto's Riddle: The story of Satoshi and the search for the creator of the first cryptocurrency

Who is Behind the Pseudonym Satoshi Nakamoto

For over ten years, the identity of the Bitcoin developer remains one of the most intriguing mysteries of the crypto community. Although Bitcoin was introduced in 2009, its creator has never revealed their true identity. Many researchers and journalists have attempted to solve this mystery, proposing various theories about who might be behind this revolutionary project.

The first suspect in 2014 was a 64-year-old American of Japanese descent, Dorian Satoshi Nakamoto, who worked as a programmer in Los Angeles on secret defense projects and in financial technology companies. However, he promptly denied this version.

Later, researchers turned their attention to Hal Finney, a cryptography expert who was the recipient of the first-ever Bitcoin transaction. Despite the coincidences, Finney categorically denied any involvement until his death in 2014.

Computer science scholar Nick Szabo also made the suspect list. Researchers from Aston University analyzed his writings and compared them with the Bitcoin white paper, finding significant parallels. However, Szabo also dismissed these claims, and no convincing evidence has ever emerged.

In 2015, entrepreneur Craig Wright claimed that he was the one who developed Bitcoin, becoming the first among all contenders to not outright deny involvement. However, when concrete evidence was demanded, his claims fell apart, and refutations appeared within online communities.

Some also proposed the theory that the creator could be programmer and former detective Dave Kleiman. However, this version also lacked sufficient confirmation.

What is Satoshi and Its Role in the Bitcoin Ecosystem

The word satoshi is not only part of the creator’s name but also the smallest unit of BTC measurement. The idea of dividing Bitcoin into smaller parts belonged to Satoshi Nakamoto and was implemented in the protocol from the very beginning, although practical use appeared much later.

In September 2009, the cryptocurrency’s value was extremely low — 5050 bitcoins were worth just $5.02, so dividing the currency made little sense. By November 2010, the price rose to $0.5 on the Mt.Gox exchange, and a crypto forum user under the nickname ribuck first proposed introducing a standardized minimum unit — 1/100 BTC. The proposal was ignored at the time, as there was no need yet.

A turning point came in February 2011 when Bitcoin’s price doubled and first reached $1. It was during this period that ribuck again suggested introducing small monetary units, and this time the community agreed. These units were named satoshi in honor of the creator of the digital currency.

However, the developers chose a ratio different from traditional fiat systems. If a kopeck in the ruble system is 1/100, then one satoshi equals 0.00000001 BTC — that is, one hundred-millionth of a Bitcoin. This decision indicates that even in the early days, developers foresaw the potential for the asset’s value to grow.

Hierarchy of Bitcoin Divisions

The modern division system looks as follows:

• 1 BTC (bitcoin) — full unit
• 0.01 BTC (bitcent)
• 0.000001 BTC (millibitcoin)
• 0.00000001 BTC (satoshi) — smallest divisible unit
• 0.00000000001 BTC (millisatoshi) — theoretical unit

The existence of satoshi is necessary for practical convenience in everyday calculations. Given the rapid increase in Bitcoin’s price, it would be extremely inconvenient to evaluate the cost of goods and services in whole or even fractional BTC. Satoshi allows users to work with understandable and manageable amounts.

Ways to Obtain Satoshi

Since satoshi is a part of Bitcoin, methods of acquiring it are no different from ways of buying BTC:

On cryptocurrency exchanges — the most traditional method, where you can exchange fiat currency or other crypto assets for BTC, which is then divided into satoshi.

Through online exchangers — services specializing in currency exchange between different systems.

On P2P platforms — direct transactions between users without intermediaries.

In cryptocurrency wallets — some applications offer built-in exchange functions.

Via mining — extracting new Bitcoin blocks. However, this is currently a highly costly activity with a high entry threshold, requiring significant investments in equipment and electricity.

Why the Identity of Nakamoto Remains Unrevealed

Despite numerous investigation attempts, the true identity of Satoshi Nakamoto has not been uncovered. Each of the proposed candidates had compelling arguments in their favor, but none provided irrefutable proof of involvement in Bitcoin’s creation. This mystery continues to intrigue the crypto community and researchers worldwide, leaving room for new hypotheses and theories.