301.5 Lesson - genesisBlock

Screen: genesisBlock

Headline: The Genesis Block

Reward: 4

Text: It is clear why Satoshi Nakamoto created Bitcoin when we examine the first block of the Bitcoin blockchain, called the Genesis block.

This block was created by Satoshi when he launched Bitcoin in 2009 and includes a reference to banks receiving bailouts following the 2008/09 Global Financial Crisis.

"The Times 03/Jan/2009 Chancellor on the brink of second bailout for banks"

This crisis, in which trust in traditional financial systems was severely damaged, inspired Satoshi to create a digital form of money that does not require trusting third parties for transactions and cannot be debased by a central authority issuing more units.

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QUIZ

Question: Why did Satoshi Nakamoto create Bitcoin?

Answer: To take financial control back from financial elites, giving ordinary people a chance to take part in a decentralized financial system

Feedback: That's exactly right. Take a wild guess what those financial elites think about bitcoin

Correct: true

Answer: To create a digital form of money that could be easily debased by a central authority

Feedback: No, silly. We already have that with fiat. Try again and think about Satoshi's message in the Genesis Block before you answer

Correct: false

Answer: To make it easier for third parties to facilitate transactions

Feedback: Sorry, that's not quite right. While third parties can be useful for facilitating transactions, trust in these intermediaries was one of the issues that Satoshi Nakamoto aimed to address with the creation of Bitcoin. Maybe try again with a different answer.

Correct: false