Chapter 3 - Pseudonymous and Privacy

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Chapter 3

Pseudonymous and Privacy

It should be clear to anyone following bitcoin, the creator Satoshi Nakamoto wished to remain anonymous when unleashing a new form of currency into the world.  There are numerous steps this person took to begin with an alias and continue for a time as a private person.  From early communications to the published White Paper, great care was taken not to reveal himself or too much behind his character, including his whereabouts, origin of communications, professional background, or birthplace amongst other characteristics and identifying information.  

Having said this, there are a number of correspondences we know originated from accounts with the pseudonym, Satoshi Nakamoto.  This has led to much speculation but no proven connection with any of the past communications, publications, or otherwise as to who this individual might actually be.  Very little has been gleaned by others as to the person behind the curtain.  In fact, some speculate it’s more than one person or potentially a government entity which speaks to how well he was able to hide the details of his identity.    I can definitively say it is not a group of people nor a government entity and will be described later in this release. 

There is substantial merit as to why so much thought and effort went into this anonymity.  Satoshi Nakamoto knew that if bitcoin, a new form of digital currency, were to take off as a global asset there would be many that would have in interest in the mined coins initially, or worse yet, take issue with it from a government standpoint.  It has the potential to threaten government’s control over its own currency if universally accepted by a global population.  And as discussed later, the banking industry would be fearful potentially of such an application for a variety of reasons we won’t go into here.  That was the initial thought and as time will have it, has actually materialized much along these ways with some governments and banking industries threatened by its existence.  Some are slowly coming around with increased regulations and oversight while others are continuing their resistance to adopting or allowing it.  It's likely governments are getting more and more involved with it as one of those, “if you can’t beat them, join them” conditions.  Motivated by wanting to maintain order over it and be involved in the  potential it offers as well as limit any risks associated with its widespread use in the future.  Additionally, bitcoin could ultimately lead to an alternative store of value and replace gold as some believe it will eventually. 

As governments and financial institutions become more threatened by this new form of currency it would have undesirable implications on the person that created it, potentially.  As time passes, the reasons for anonymity only become more plentiful and this author believes there is substantial reason for it not just initially but for it to continue in some respects.  Not all that has transpired I’m sure was as predicted by Satoshi Nakamoto but perhaps much of it as expected.  For similar reasons, this author finds the need to remain anonymous and has taken steps for that to occur. However, in today’s world it is much more difficult to do much of anything anonymously.  

Anonymity is becoming increasingly difficult.  In the mid-2000s around the time of the White Paper release for instance, one could with little knowledge simply have any number of emails, web sites, and communications in online forums that were cloaked in secrecy.  Today, this has largely changed, and most people are not even aware of the interconnectivity and identifying information being used.  

Large and small corporations as well as governments are making it increasingly difficult, if not impossible, to remain anonymous even for very mundane activities. For instance, email accounts are no longer just logged in with a single password.  They are inevitably linked to phone numbers or addresses or real identification without option. And for those with multiple emails they tend to require being linked to one another now. This has only within the  past several years been the norm and not the exception. 

There are likely many books and writings on the increasing intrusion into privacy but suffice to say it’s probably a combination of government driven and corporations having an increased interest on knowing what people are doing more and more.  Soon it will be unavoidable.  There are work arounds I’m sure as some people will argue and use, but they probably delve into dark areas I'd rather not be familiar with or have knowledge of. All I know is it was once very easy for anyone to be anonymous and now it is very difficult.  The author only describes this at the 30,000-foot level because it is very relevant to the person that is Satoshi Nakamoto.  In today’s world I wonder if it would have been possible to create such a thing as bitcoin, anonymously.  The timing seemed to be just right for Satoshi Nakamoto.  

Often, these intrusive privacy concerns are occurring in very insidious ways.  Cloaked in ways that seem innocent at first glance such as "cookies" being required to be accepted. Even the term “cookie” implies something warm and nice.  But, to look at a web site, any web site running the gambit from sports to gambling to government sites, they all have cookie acceptance requirements before proceeding on through the online site. Grabbing information about the user and in many cases sharing that information with others and between multiple parties.  This sharing of information sometimes occurring in broad ways with large data batches, but sometimes not. It really is quite insidious when you lift the cloak and see what is behind all the information gathering, we are not even aware of, at times. 

With the recent advent of artificial intelligence this intrusive collection of information is becoming increasingly expansive as well as incentivized in value.   Combine this evolution with data breaches and it all becomes ever more concerning. So how does this play into the discussion that is the person that is Satoshi Nakamoto? Because this is part of the need for personal security.  As we lose this privacy, whether it's with one entity or many, or it is shared across governments or private industry, we are losing a piece of ourselves. It all is very disconcerting and affects our safety. It affects all those around us.   Satoshi Nakamoto was aware of all this and logically would take whatever measures necessary to assure the anonymity would stay in place indefinitely. 

The blockchain underpinning bitcoin and how the network of nodes function are set up to work anonymously.   Of course, with the way bitcoin has developed much of that anonymity has dissolved, largely with the introduction of cryptocurrency exchanges.  These exchanges will generally collect every aspect of personal information that your typical banking institution would.  This is contrary, I believe, to the intent that Satoshi Nakamoto originally desired and envisioned.  The idea was to have it decentralized and apart from corporate exchanges, governments, or other entities.   However, even very smart people way down the rabbit hole have found their transactions traced and identity revealed, not all, but most.  The vision has clearly diverged from its onset intent.   I sometimes wonder what Satoshi Nakamoto thinks about the current outcome of that initial vision and where it is headed.  

There's no question in my mind, governments and corporations and everyone in between are able to glean information from users of their web sites, email accounts, social media platforms, gaming or other applications. It's presented as something fairly innocuous.  However, there is much more to be seen and discovered by the public on what and how this information is being used and to what extent. Even as I type this, I've signed away rights for cell phone corporations to glean information off it. Your audio and mine on our phones are extracting background sounds.  Applications from large and small corporations are hearing and using collected audio as well as video.  Your camera on your cell phone is being used routinely.  Some will argue its being compiled into large data sets, but through A.I. or other searches, functionalities have the ability to glean all sorts of information. You've already accepted that in some form or another by accepting the legal agreements on the use of any of your electronic devices. They are all collecting and sharing information within and with external partners, often for financial gain. It’s no accident after talking about something random or taking a photo of something, you will begin seeing a related advertisement on various platforms you visit. All directed at you and based off information gathered from your daily, hourly and by minute real time activities. 

In short, it was critically important that Satoshi Nakamoto create a pseudonym and remain anonymous to this day. Similarly, the author wishes to remain anonymous and have taken steps to this end.  However, there is only so much one can do.    

Some might argue if the author has such a desire to remain anonymous with this sort of knowledge why write a book when one can just be silent?  Well, that is much easier said than done.  When you have knowledge of something very significant it weighs heavily on your soul, your thoughts, your body, your mind.  It’s hard to escape it and really needs a release.  This is why people sometimes disclose traumatic events that happened to them many years earlier.  It’s hard to hold onto over time.  All I can say is I’ve done my best with this regard, and I don’t wish to reveal either Satoshi Nakamoto’s true identity or my own.  

For America, the public is not fully aware just how interconnected and intertwined our lives and our information has become -all within a few short years.  It's becoming increasingly invasive with the advent of artificial intelligence always listening, always viewing our moments in real time and preserving that information in cloud-based data banks. This is no longer future dystopian type hypothetical stuff or some far out conspiracy theorist ideas.  Any person can verify it for themselves.  Simply try to create something online in private now.  Virtually everything is now linked to your identity.  Your emails are all linked to your identity, your visits to web sites, anything done online all traceable to who you are.   Your government identification all linked to the various forms. Even your facial recognition is linked to many aspects of other things.  Try taking a trip anymore without having your face scanned.  In the background it is all being collected and stored in data farms or the “cloud”.

Just as we should have the right to free speech and say things within certain limitations, we should have the right to privacy if we choose also  within certain limitations.  In both cases, some might argue the pendulum has already swung too far having widespread implications.  With irreversible adverse impacts on each and every one of us and our freedoms.  Where does this trend go from here?  In the opinion of this author, we as a society have surely gone beyond the intent of our forefathers when they drafted the U.S. Constitution.  All this discussion of privacy is in fact relevant to Satoshi Nakamoto and the purpose behind the vision that is bitcoin.  These commentaries on free speech and privacy are not intended to be political statements or advocacy for certain policies, but rather provide some foundation to what Satoshi Nakamoto was thinking as his vision was being developed and ultimately released for global consumption. 

Privacy is as needed as free speech in maintaining personal freedoms.  There is much talk these days about the need for free speech.  I would suggest these rights are being threatened in both free speech and privacy.  There is bias in media and whether that includes intentional censorship or incidental screening of information it is happening in America and many places around the world. Free speech goes to the heart of personal freedoms and maintaining a free world. And like free speech , being able to maintain one's privacy also goes to the heart of a free world. When the government wants to invade every aspect of our lives with no limitations that becomes a threat to democracy.  Of course, there is a need for balance and limitation.  Going to extremes on anything including free speech and privacy does not serve humanity or the prospect of societal transformation for the better.  A global digital currency and its transformational possibilities can have similar impact on our freedoms as free speech and privacy rights.

As it relates, Satoshi Nakamoto introduced bitcoin at a time where it was possible to do so in a private and anonymous way. Today, I would argue this would be much less likely to have occurred in this way.   Governments and corporations alike are ever increasing their attachment to what each of us are doing at any moment in time. There is largely no avoiding now, and it has eroded our freedoms. Free speech and privacy are two areas that will continue to be debated by peoples of all nations with varying degrees of freedom and limitations.   I believe these freedoms, and not the financial gain, was the impetus behind bitcoin for Satoshi Nakamoto.