Bitcoin Creator Mystery: Szabo or NSA?

New Documentary Sparks Renewed Interest

The mystery surrounding the identity of Bitcoin's creator, Satoshi Nakamoto, has once again garnered attention due to the forthcoming release of an HBO documentary. This has led to the publication of a report by 10x Research, which revisits two prominent theories. One theory suggests that cryptographer Nick Szabo is the creator, while the other points towards the involvement of the United States National Security Agency (NSA).

Nick Szabo: The Cryptographer Behind Smart Contracts

Nick Szabo is a significant figure in the history of cryptocurrency, known for his work on "smart contracts" in the 1990s and his proposal of "Bit Gold," a precursor to Bitcoin. 10x Research emphasizes Szabo's influence, noting that his decentralized concept of Bit Gold closely aligns with the core architecture of Bitcoin. Despite Szabo denying any involvement with Bitcoin, the research firm points out similarities in writing style and philosophy between Szabo's blog posts and Nakamoto's 2008 white paper on Bitcoin.

On Polymarket, Szabo has surpassed cryptographer Len Sassaman as the frontrunner to be identified as Satoshi Nakamoto in HBO’s upcoming documentary. Bettors have placed 27.9% odds on Szabo being identified as Bitcoin’s pseudonymous creator, followed by Sassaman at 14% and Blockstream CEO Adam Back at 4.3%. Sassaman initially led with as high as 68% odds, but these dropped when the documentary’s producer revealed that he confronted the person he believes is the real Satoshi Nakamoto, ruling out Sassaman who passed away in 2011.

NSA: Nakamoto’s Secret Alias?

The report also explores the possibility of the NSA's involvement in the creation of Bitcoin. The NSA's 1996 research paper “How to Make a Mint: The Cryptography of Anonymous Electronic Cash” provided the basic framework for what eventually became Bitcoin. Furthermore, on March 5, 2001, cryptographer Glenn Lilly filed the “Device for and method of one-way cryptographic hashing” patent while working for the NSA. The patented technology was “the widely used secure hashing algorithm (SHA-256),” an algorithm used “in the hash function and mining algorithm for the Bitcoin protocol.”

HBO's Big Reveal or Szabo-tage?

Even with extensive research, no definitive proof links either the NSA or Szabo (or any other entity) directly to the creation of Bitcoin. Markus Thielen, founder of 10x Research, suggests that “the real Satoshi might need to make a public statement, particularly if they decide to sell the Bitcoin they hold.” He also believes that the HBO documentary will likely fall short of proving Nakamoto’s identity, leaving it up to the “true Satoshi” to provide conclusive evidence. It's worth noting that one Satoshi pretender, Craig Wright, was recently found not to be the mastermind behind Bitcoin and was instead found guilty of perjury by a United Kingdom High Court judge.

Bottom Line

The mystery of Satoshi Nakamoto's identity continues to intrigue the world. Whether it's Nick Szabo, the NSA, or someone else entirely, the truth remains elusive. As the HBO documentary approaches, it will be interesting to see if any new evidence comes to light. What are your thoughts on this enduring mystery? Share this article with your friends and continue the discussion. Don't forget to sign up for the Daily Briefing, available every day at 6pm.