Charlie Lee is the creator of Litecoin, the most popular alternative cryptocurrency. He is currently director of engineering at Coinbase.
I first discovered bitcoin in early 2011.
Like many, I thought it was brilliant. Bitcoin transactions were decentralized, secure, fast, cheap and unlimited.
Let’s break down what this means:
- Decentralized: Thousands of nodes verify and relay all bitcoin transactions.
- Secure: The bitcoin network is secured by millions of dollars of hardware.
- Fast: Confirmations were fast. Zero confirmation transactions are very safe as double-spend attacks are impractical.
- Cheap: You can pay little to no fees. Your transactions will all get mined in the next block.
- Unlimited: At that time, bitcoin block sizes were tiny compared to the block size limit. Transactions being delayed due to block size constraint was unheard of. So there’s effectively no limit on transaction throughput.
The reason why this is the case is due to the brilliant design of Satoshi Nakamoto’s creation. Bitcoin is bootstrapped like a startup: equity is