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MEMORYLESS PROCESS

In this email, Satoshi Nakamoto responds to a series of technical queries about the Bitcoin system. He clarifies misunderstandings and provides further insight into the mechanisms of Bitcoin.

Nakamoto explains the transaction process, emphasizing that only the buyer signs a transaction and there’s no blinding involved. He also clarifies that Bitcoin doesn’t rely on identities or recourse, but on prevention of double-spending. He further explains the role of the proof-of-work chain in resolving conflicts between two competing chains, each containing a different version of the same transaction.

Nakamoto also addresses the concern about the domination of the fastest nodes in the network, explaining that the proof-of-work is a memoryless process, and the chance of finding a solution at any time is proportional to a node’s CPU power. He also mentions that nodes will be incentivized to include all transactions they can due to transaction fees.