What is SATOSHI
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1. What is Satoshi?
Satoshi (中本聪) and Introduction to Bitcoin
Founder: Bitcoin was created in 2009 by an anonymous programmer or group of people using the pseudonym Satoshi Nakamoto (中本聪).
Basic Concept: Bitcoin is a decentralized digital currency based on blockchain technology and cryptography, used to record transactions and control the creation of new units.
Decentralisation: Control of Bitcoin is distributed, implemented through blockchain, which is a distributed electronic ledger.
Security: The security of the Bitcoin system is maintained by independent individuals known as miners, who use their computers to confirm the date and time of transactions according to a specific scheme and add them to the ledger.
Features:
Immutability: The code is immutable.
Prevention of Illegal Use: Mechanisms are in place to prevent users from using units they do not own.
Limited Supply: Combined with the market's ability to subdivide circulating units into smaller parts as necessary.
Fast Transfers: Transfer actual value quickly and irreversibly over the internet, without the need for financial intermediaries.
Decentralised Trading Network: Provides a decentralised trading network that offers security and transaction validation.
Global Public Ledger: Publicly available transaction information stored in a global public ledger, equivalent to a master ledger.
Personal Security: Personal security provided by public and private keys.
Blockchain Technology: Bitcoin uses blockchain technology, which is an advanced database mechanism that allows for transparent sharing of information within a corporate network.
Miners and Mining: Miners use their computers to confirm the date and time of transactions according to a specific scheme, adding them to the ledger, thus maintaining the security of the Bitcoin system.
Bitcoin Units: The smallest unit of Bitcoin is called Satoshi (聪), where 1 Bitcoin equals 100,000,000 Satoshis.
2. Who founded Satoshi?
Satoshi Nakamoto (中本聪) is the founder of Bitcoin, but their true identity remains unknown. There are various speculations and theories regarding their identity, but none have been confirmed. Here are some key information about Nakamoto:
- November 1, 2008: Nakamoto published a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" on a cryptography mailing list.
- January 3, 2009: Nakamoto mined the first block in Bitcoin history – the Genesis Block, achieving the "mining" of the Bitcoin algorithm and obtaining the first 50 bitcoins.
- December 12, 2010: Nakamoto published the last article on the Bitcoin forum and thereafter ceased public communication, contacting only a few individuals from the Bitcoin core development team via email.
- April 26, 2011: Nakamoto shut down email and has not corresponded with anyone since.
Despite various speculations about Nakamoto's true identity, it remains a mystery.
3. Which VCs invested in Satoshi?
Based on the information provided, the following venture capitalists or investors have invested in cryptocurrency or blockchain-related projects, but there is no direct mention of investing in the specific project "Satoshi," as "Satoshi" typically refers to the creator of Bitcoin, rather than a specific investment project. However, the following investors or VCs have invested in Bitcoin or blockchain-related projects:
Tim Draper: He is a venture capital pioneer in Silicon Valley, having invested in numerous blockchain and smart contract-related enterprises and founded the venture studio Draper Goren Blockchain (DGB) focused on the blockchain space.
Matthew Roszak: He is a co-founder of the blockchain infrastructure provider Bloq, and has invested in over 20 Bitcoin startups, including BitFury, BitGo, and others.
Jean-Louis van der Velde: He is the founder of the cryptocurrency exchange Bitfinex and has served as the CEO of the stablecoin issuer Tether.
Michael Saylor: He is a co-founder of the software company MicroStrategy, which has purchased a significant amount of Bitcoin as corporate financial asset.
Brian Armstrong: He is the founder of the cryptocurrency exchange Coinbase, which is one of the leading crypto exchanges in the United States.
Find Satoshi Lab: It is the developer of STEPN and announced a strategic lead investment in the seed round fundraising for the crypto smart contract wallet Versa.
These investors or VCs primarily invest in projects related to Bitcoin or blockchain technology, rather than directly investing in the specific project "Satoshi."
4. How does Satoshi operate?
The Satoshi Protocol is a dollar-stablecoin protocol based on Bitcoin (BTC), aimed at providing liquidity for BTC. Here are the key points of its operating mechanism:
Over-collateralisation: Users are required to deposit BTC into the protocol as collateral, maintaining a collateralization rate of over 110% to borrow the stablecoin SAT pegged to $1.
Liquidation Mechanism: When the price of BTC falls, reducing the value of the collateral and bringing the collateralization rate below 110%, a liquidation mechanism is triggered. The protocol uses discounted SAT from the Stability Pool (SP) to purchase the liquidated collateral and repay the debt.
Stability Pool (SP): The SP is a crucial mechanism for ensuring the stability of the protocol and providing liquidity. Users deposit SAT into the SP, which provides corresponding liquidity, triggering liquidation when any user's collateralization rate falls below 110%.
Arbitration Mechanism: When SAT's price is less than $1, arbitragers can purchase SAT in the market and redeem it through the Satoshi Protocol's redemption mechanism, exchanging 1 SAT for an equivalent $1 worth of BTC assets and selling them for profit, encouraging SAT to return to $1.
Minting of SAT: Users can mint SAT by depositing BTC as collateral and paying a fixed annual interest rate of 4.5%.
In summary, the Satoshi Protocol ensures the price stability and liquidity of the SAT stablecoin through over-collateralisation, a liquidation mechanism, Stability Pool, and arbitration mechanisms.
