What is SATOSHI
Tokens
1. What is Satoshi?
Introduction to Satoshi (Satoshi Nakamoto) and Bitcoin
Founder: Bitcoin was created in 2009 by an anonymous programmer or group of people using the pseudonym Satoshi Nakamoto.
Basic Concept: Bitcoin is a decentralized digital currency based on blockchain technology and cryptography, used for recording transactions and controlling the creation of new units.
Decentralization: Bitcoin's control is decentralized, achieved through the blockchain, which is a distributed electronic ledger.
Security: The security of the Bitcoin system is maintained by a group of independent individuals known as miners, who confirm the date and time of transactions using their computers according to a certain scheme and add them to the ledger.
Features:
Tamper-Proof: The code is tamper-proof.
Prevent Illegal Use: There are mechanisms in place to prevent users from using units they do not own.
Limited Supply: The market will break down circulating units into smaller parts as needed.
Fast Transfers: Transfer actual value quickly and irreversibly over the internet without the intervention of financial intermediaries.
Decentralized Trading Network: Provides a decentralized trading network that offers security and transaction verification.
Global Public Ledger: Publicly available transaction information stored on the global public ledger, equivalent to the master ledger.
Personal Security: Individual security provided by public and private keys.
Blockchain Technology: Bitcoin uses blockchain technology, which is an advanced database mechanism allowing for the transparent sharing of information in corporate networks.
Miners and Mining: Miners use their own computers to confirm the date and time of transactions based on a certain scheme and add them to the ledger, thus maintaining the security of the Bitcoin system.
Bitcoin Units: The smallest unit of Bitcoin is called Satoshi, with 1 Bitcoin equal to 100,000,000 Satoshis.
2. Who Founded Satoshi?
Satoshi Nakamoto 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 pieces of information about Satoshi Nakamoto:
- November 1, 2008: Satoshi Nakamoto published a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" in a cryptography mailing list.
- January 3, 2009: Satoshi mined the first block in Bitcoin history—the Genesis Block—realizing the "mining" of the Bitcoin algorithm and receiving the first 50 Bitcoins.
- December 12, 2010: Satoshi published the last post on the Bitcoin forum, afterward no longer making public statements and only communicating with a few core developers via email.
- April 26, 2011: Satoshi shut down their email account and has not corresponded with anyone since.
Despite various speculations about Satoshi's true identity, it remains a mystery.
3. Which Venture Capitalists Invested in Satoshi?
According to the provided information, the following venture capitalists or investors have invested in projects related to tokens or blockchain, but there is no direct mention of investing in the specific project "Satoshi," as "Satoshi" usually refers to the creator of Bitcoin, Satoshi Nakamoto, rather than a specific investment project. However, the following investors or venture capitalists have invested in projects related to Bitcoin or blockchain:
Tim Draper: He is a Silicon Valley venture capitalist who has invested in numerous blockchain and smart contract related companies and founded the venture studio Draper Goren Blockchain (DGB) focused on the blockchain field.
Matthew Roszak: He is a co-founder of the blockchain infrastructure provider Bloq, and has invested in over 20 Bitcoin startups, including BitFury and BitGo.
Jean-Louis van der Velde: He is the founder of the token exchange Bitfinex and has previously served as CEO of the stablecoin issuer Tether.
Michael Saylor: He is a co-founder of the software company MicroStrategy, which has heavily invested in Bitcoin as a company financial asset.
Brian Armstrong: He is the founder of the token exchange Coinbase, which is one of the leading cryptocurrency exchanges in the United States.
Find Satoshi Lab: They are the developers of STEPN and have announced a strategic lead investment in the seed round financing of the crypto smart contract wallet Versa.
These investors or venture capitalists mainly 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 operation:
Over-Collateralization: Users must deposit BTC into the protocol as collateral, maintaining a collateralization rate of over 110% to borrow stablecoins (SAT) pegged to $1.
Liquidation Mechanism: When the price of BTC falls and the value of collateral decreases, triggering a collateral rate below 110%, a liquidation mechanism is activated. The protocol will purchase liquidated collateral at a discount using SAT from the Stability Pool (SP) to repay debts.
Stability Pool (SP): SP is the key mechanism for ensuring protocol stability and providing liquidity. When users deposit SAT into SP, it provides corresponding liquidity, triggering liquidation if any user's collateral rate falls below 110%.
Arbitrage Mechanism: When the price of SAT is below $1, arbitrageurs can purchase SAT on the market and use the Satoshi Protocol's redemption mechanism to redeem the equivalent of $1 worth of BTC assets for 1 SAT and sell for arbitrage, driving SAT back to the $1 price.
Minting 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-collateralization, liquidation mechanisms, Stability Pool, and arbitrage mechanisms.
