This episode introduces Bitcoin, a peer-to-peer electronic cash systemthat aims to eliminate the need for trusted third parties in online transactions. It proposes a solution to the double-spending problemthrough a decentralized, timestamping server using a proof-of-work system. Transactions are recorded in a public, chronological blockchain, making it computationally impractical for attackers to alter the history if the majority of the network's computational power is controlled by honest participants. The system offers incentives for nodes to support the network and describes mechanisms for privacy and simplified payment verification. Ultimately, the paper presents a robust and secure framework for digital currency that operates without relying on traditional financial institutions.

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