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Author: Admin | 2025-04-28
Without needing to trust or pay a financial institution to administer those transactions. The Bit gold network itself would provide the functionality of accurately tracking user account balances and processing legitimate transactions. Additionally, users are in possession of the private keys to their own wealth (monetary sovereignty.)These characteristics in combination meant that transactions and storing money could take place virtually and independently, removing the dependence from financial institutions.Seamless Operation Across BordersThe traditional financial system has many silos. Sending money across borders can take anywhere from a couple of days to weeks to fully go through. This is because banks must undergo a very rigid and regulated process to send money to other financial institutions before those funds can reach the intended party.Decentralized networks like Bitcoin and Bit gold remove these silos and create the ability to process cross-border transactions within minutes. Again, these benefits were not realized with Bit gold since the model was never implemented, but are currently being realized through Bitcoin’s Protocol.Final ThoughtsAfter discussing the inefficiencies of both precious metals and trust-based financial systems, Nick Szabo puts forth the vision for Bit gold“Thus, it would be very nice if there were a protocol whereby unforgeably costly bits could be created online with minimal dependence on trusted third parties, and then securely stored, transferred, and assayed with similar minimal trust. Bit gold.”Key TakeawaysBit gold was the first feasible proposal of a decentralized financial networkNick Szabo conceived of Bit gold after addressing inefficiencies of the traditional financial system and the
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