Nick Szabo

In 1998, Szabo developed a decentralized digital currency algorithm, which he called digital gold (bit gold). ^{[8] [9]} This idea was not put into practice, but was called the “direct predecessor of the Bitcoin architecture” ^[10] .

According to the bit gold algorithm, network participants invest their computing resources to solve a cryptographic problem . The solutions found are distributed over the bit gold network, are included in the open transaction registry and are tied to the public key of the participant who solved the problem. Each solution becomes part of the next task, thus creating a growing chain. This property of the system makes it possible to verify transactions and timestamps, since participants cannot begin work on a new task until most agree to make a decision on the previous one. ^{[11] [12] The} open transaction register has a certain property of reliability in conditions of distrust of the parties, which is considered in the framework of the so-called problem of the Byzantine generals .

Designing a system of electronic money inevitably has to solve the problem of double spending . Data can be easily copied. In most systems, this problem is solved by transferring some part of the control over the system to a central authority, which keeps track of the state of accounts of participants. This decision was unacceptable for Szabo: “I tried to reproduce, as far as possible in cyberspace, the characteristics of security and trust like in gold, mainly the lack of the need for a central proxy.” ^[eight]

In 2008, someone known as Satoshi Nakamoto ( Satoshi Nakamoto ) published a description of the Bitcoin system. Nakamoto's identity remains a mystery, leading to the emergence of guesses and a long list of people suspected of being Nakamoto. Sabo is on this list despite his denial. ^[13]

Investigation by finance writer Dominic Frisby has uncovered indirect evidence, but he himself admitted there is no evidence that Szabo is Satoshi. ^[14] Speaking on television, he said: “I have come to the conclusion that there is only one person in the whole world who has such a breadth of such specific knowledge, and that’s him ...” ^[15] In July 2014, Sabo wrote in an email to Frisbee: “Thank you for letting me know. I’m afraid that you are mistaken in exposing me as Satoshi, but I’m used to it. ” ^[14]

Nathaniel Popper wrote in The New York Times that “the most convincing evidence points to a reclusive Hungarian-American named Nick Szabo.” In 2008, before publishing Bitcoin, Szabo wrote a comment on his blog about his intention to bring his hypothetical currency. ^[one]

In 2015, in the Ethereum system, also based on the blockchain , one of the fractional parts of the ether token was named szabo.