Table of Contents
Whether a beginner or an expert in cryptocurrencies and blockchain, you must have heard about BitGold, the precursor of Bitcoin and smart contracts.
Many know about BitGold and Smart contracts as the foundation of today’s cryptocurrency sector, but do you know the brilliant mind behind these concepts?
Although he is not as popular as industry leaders like Vitalik Buterin, Satoshi Nakamoto, or Erik Voorhees, you can trace many of these concepts back to him.
Sometimes, he has been suspected to be the anonymous Satoshi Nakamoto. This great mind is Nick Szabo.
Nicholas Szabo (Born on April 5, 1956) is an American computer scientist, legal scholar, and cryptography expert known for his research in smart contracts and digital currency.
Nick graduated from the University of Washington in 1989 to earn his first degree in computer science and later received a Juris Doctor degree from George Washington University Law School.
Creating BitGold and His Contributions to Blockchain Technology
In the early 2000s, Szabo worked on designing an online currency called BitGold, which the crypto community believes to be the predecessor to Bitcoin. He got inspiration from how gold maintained its value because it can’t be forged.
Nick Szabo then opined that if someone could create a virtual gold that cannot be forged, such assets would have a standard value.
Some months later, Nick Szabo expanded the idea of BitGold via a post in his blog. This idea is widely regarded as the forerunner of Bitcoin.
Most digital currencies solve the Double Spending problem by giving some control to a central authority, which Szabo wanted to avoid accepting as a solution.
Hence, he worked on BitGold to solve the problem so that the decentralization of the cryptocurrencies would not be compromised.
Szabo created BitGold as a solution for shortcomings in the traditional financial systems of records. In the end, the project wasn’t completed.
Introducing The Concept of Smart Contracts
Nick proposed the concept of smart contracts in the mid-1990s and is best known for it.
In 1998, he published a paper titled “Smart Contracts: Building Blocks for Digital Free Markets,” credited as the first formal description of smart contracts.
This paper introduced the concept of using blockchain technology to enforce contractual obligations. He described them as computerized transaction protocols that execute the terms of a contract.
In essence, smart contracts are computer programs that can self-execute the terms of a contract when certain conditions are met.
Smart contracts are built on a blockchain platform, which is a distributed ledger technology (DLT). This means that the contracts are stored and replicated across multiple computers in a network.
All contract terms are held in a secure, decentralized environment. They can automate various activities, such as payments, escrow, information exchange, etc. They can even be used to facilitate digital asset trading.
The advantage of using them is that they are secure and transparent. Both parties involved in the transaction can trust that the terms of the contract will be executed as written.
Moreover, since the contracts are stored on a blockchain platform, they are immutable, meaning they cannot be changed or tampered with.
Smart contracts are still in the early stages of development, with many challenges to overcome before becoming mainstream.
However, the potential of the technology is undeniable, and many believe that it will revolutionize how we do business in the future.
Nick Szabo’s Net Worth
Nick Szabo’s net worth is estimated to be around $5 million. Popular as a computer scientist and cryptographer, Szabo is widely regarded as the father of cryptocurrency.
He made the most of his fortunes from his career as a computer technology expert and cryptographer.
His libertarian sentiments on economy and finance made him conceive of a virtual currency.
According to Nick Szabo’s idea, this virtual currency would reduce exposure to the centralized financial system.
Nick Szabo’s details about his wealth remain obscure, but his influential research into decentralized digital currencies and self-executing code has brought him recognition.
Is Nick Szabo Satoshi Nakamoto the Creator of Bitcoin?
Due to his numerous works in blockchain and attempt to build the first decentralized digital currency, BitGold, many have wondered if Nick Szabo is the creator of Bitcoin, a claim he has consistently denied.
His vast knowledge of the technicalities of blockchain and smart contracts and the similarities between BitGold and Bitcoin have caused many to believe that Nick is Satoshi Nakamoto.
Even though he has denied being the inventor of Bitcoin, the editing of the date of the Bit Gold proposal is intriguing, as is a slip of the tongue Nick Szabo made in an interview with Tim Ferriss.
When talking about second-layer solutions, he can be heard saying,
‘I’d definitely go for a second layer, I mean, I designed Bitco… gold with two layers.’
Although numerous people have been suspected to be Satoshi Nakamoto, only a few come close to fitting into the shoes, including Nick Szabo.
