Bitcoins <\/p>\n
Sixteen years ago today,\u00a0Hal Finney<\/a>\u00a0received the\u00a0first-ever Bitcoin transaction<\/a>. The 10-coin receipt from Satoshi Nakamoto was a simple process and just \u201ca test,\u201d but it marked another early leap of faith that helped spark the Bitcoin revolution and cemented Finney\u2019s place in Bitcoin history.<\/p>\n Since\u00a0Bitcoin transaction records<\/a>\u00a0are public and immutable, you can still find the\u00a0record of this historic transaction<\/a>\u00a0on any blockchain explorer.\u00a0<\/p>\n Already well-known at the time as a cryptography activist and one of the inventors of PGP, Finney created the first \u201creusable proof-of-work\u201d system for digital tokens in 2004. Requiring machines to validate data transactions by performing complex computational tasks would later become the backbone of\u00a0Bitcoin\u2019s consensus mechanism<\/a>.<\/p>\n Finney might have made an even larger contribution to Bitcoin development, but just a few months after that first transaction, he was diagnosed with amyotrophic lateral sclerosis (ALS) and stepped back from his Bitcoin work. The disease would slowly take away his physical abilities over the next five years. His mind remained very active, and in 2013, he wrote the equally-legendary forum post \u201cBitcoin and me<\/a>\u201d (when Bitcoin became a frequent media topic). It describes in detail his early thoughts while remaining characteristically humble about his role. Hal Finney passed away in August 2014, aged 58.<\/p>\n Hal Finney\u2019s other significant contribution to Bitcoin<\/strong><\/p>\n In addition to receiving the first-ever transaction on the Bitcoin network, Finney is also legendary in Bitcoin lore for being the first person to respond positively to the Bitcoin concept. The canonical\u00a0first mention of Bitcoin<\/a>\u00a0is a post from Satoshi Nakamoto on the Cryptography Mailing List in October 2008, announcing the publication of the Bitcoin white paper.<\/p>\n The first three responders were curious about the idea, but doubted it could work:<\/p>\n \u201cWe very, very much need such a system, but the way I understand your proposal, it does not seem to scale to the required size.\u201d \u2013 James Donald<\/p>\n \u201cThe good guys have vastly less computational firepower than the bad guys. I also have my doubts about other issues, but this one is the killer.\u201d \u2013 John Levine<\/p>\n \u201cI think the real issue with this system is the market for bitcoins. Computing proofs-of-work have no intrinsic value.\u201d \u2013 Ray Dillinger<\/p>\n It\u2019s worth noting that these were, and still are, valid concerns in Donald\u2019s case. The scaling issue, in particular, would continue to haunt Bitcoin and has only been solved by the BSV development team after many years of hard work, bitter public spats, and, eventually, two\u00a0hard forks that split the network into warring tribes<\/a>. A popular lament of all Bitcoiners is to imagine how much more useful Bitcoin could have become over the past 16 years if so much energy had not been wasted on arguments over Bitcoin\u2019s structure.<\/p>\n Though these arguments continue, Bitcoin still at least has the potential to change the world (rather than just the fiat-denominated bank balances of its large bagholders).<\/p>\n Anyway, back to Hal<\/strong><\/p>\n The fourth mailing list response from Finney began with \u201cBitcoin seems to be a very promising idea.\u201d While he had several questions about aspects of the system he didn\u2019t yet understand, the white paper piqued his interest enough to get involved a few months later.<\/p>\n \u201cSorry about all the questions, but as I said this does seem to be a very promising and original idea, and I am looking forward to seeing how the concept is further developed.\u201d<\/p>\n On January 11, 2009, following Satoshi\u2019s public release of v0.1 of the Bitcoin protocol software, Finney posted what has become Bitcoin\u2019s most-famous tweet:<\/p>\n \u201cI\u2019ve noticed that cryptographic graybeards (I was in my mid 50s) tend to get cynical,\u201d he wrote of those first reactions a few years later. \u201cI was more idealistic; I have always loved crypto, the mystery and the paradox of it.\u201d<\/p>\n He continued assisting Satoshi in those early days by giving advice, reporting bugs, and contributing code. Those contributions, as well as his initial vote of confidence, have made him one of the most revered figures in the Bitcoin world. While not Satoshi himself, he is the first publicly identifiable individual associated with Bitcoin\u2014at least, that everyone can agree on.<\/p>\n Watch: Teranode is the digital backbone of Bitcoin<\/p>\n