Over the centuries, the profits and power of the banks increased with a rising momentum. They also took their place as the most important building block in the processing of capitalism into the marrow of societies. The old bridge of trust, money had found such a beautiful harbor that people could now rely on banks rather than trust money. In this way, money transferred all the trouble and worry on it to the stylish four-walled bank keepers. The process was proceeding with such solid steps that banks kept your existing money or lend you money if you wished. All control of the money began to pass to the banks. Therefore, the monopoly of the economy was gradually transferred to the banks. Money was just a tool now.

Technology, computers and digitalization have begun to influence the whole world at the retail level since the beginning of the 90s. The banks we trusted could now circulate money in seconds and make people spend it instantly. With computers and the internet in our palms, money took its place on the screens. Because we now have internet banking. If I wanted, I could send you money through the bank I work with, without any question marks in my mind. This way, traders and money users could take a big breather!

In this adventure, a pioneer (Nakamoto) came out in November 2009 (this date is very important since there was a great Mortgage crisis in the USA and the world in 2008) and asked the following question:

“Why do we have to trust banks?”

Then he began to give himself the following answers. “What is the most basic function of banks at the moment; perform money transfer and prevent double use (duplication) of money on the screen. Ok very good, I can solve this trust mechanism and double use problem with a certain data network using math and encryption algorithms. So why would we need banks then?”   

Of course, Nakamoto could have achieved this by eventually purchasing a large data storage solution or with data storage systems that he would create in-house. But in the name of it, it was a revolution. The system that he would establish should not be monopolized by anyone, all participants should be responsible for the management. His sole desire was to get participants to be involved in the system by relying on it, rather than relying on him. In other words, he wanted this system to go on like a chain by creating a kind of correlated gear mechanism. So he said to himself:

I'm making all the data public, and anyone can even keep all this data on their own computer!"

Yes, you didn't read it wrong. In the system established by Nakamoto, all data subject to processing was made public. Moreover, there would be participants of the system operating this system. Which is why the title of his article began with "peer to peer" (each participant is depicted when saying pair to pair).

He wanted data to be distributed to everyone, peer-to-peer, because only in this way could he establish an uninterrupted and non-lost data network. “Bitcoin", which we can easily encounter on the internet today, was not only a reward mechanism, but also the first application of blockchain technology, which was derived to enable Nakamoto to operate the system he established. Then the following question may come to your mind:

“What were the participants doing to win prizes?”

Actually, this issue is technically quite complex. However, at the most basic level; The system that Nakamoto built was based entirely on encryption algorithms and high-level mathematical analysis depending on its reliability. Just as calculators need batteries to perform even the simplest operations, Nakamoto needed computer power to perform these complex and heavy operations. Turning this into a win-win relationship in the simplest way, he promised the participants the following:

“Join the Bitcoin system! If you join this system with your computing power, I guarantee to give you this new currency that I have created!”

This is how Nakamoto made the heated proposal. Since 2009, the value of Bitcoin has increased so much that today 1 Bitcoin is equal to 54300 USD. Thus, the first phenomenon of the internet, digital currency was also formed. After 2009, many digital currencies began to be created using blockchain technology. They were named “altcoin”. Now the main question may have come to life in your mind.