A recent report from blockchain analysis and tracking provider Whale Alert revealed this The miner known as Patoshi mined over $ 10.9 billion or 1,125,150 BTC in the early Bitcoin era to protect the network from a 51% attack.
It has been confirmed that Patoshi is the anonymous Bitcoin creator named Satoshi. The first BTC transaction to Hall Finney is one of the first blocks mined by Patoshi, a well-known developer and first contributor to Bitcoin.
Whale Alert was able to come to this conclusion by reviewing previous research by independent researcher and cryptographer Sergio Lerner. Lerner coined the term Patoshi mining when a cryptographic pattern that exposed most of Bitcoin’s early mining was done by someone with access to modified mining software.
The pattern from Patoshi. Source: Whale Alert
In the box above Patoshi’s pattern is visualized and shows that straight lines use Bitcoin’s standard mining software and the “saw-like” lines are attributed to Patoshi.
Using the same pattern, Whale Alert found that the Patoshi miner “adjusted its speed between blocks” to keep the average blocking time at 0.6 blocks per 10 minutes.
Based on the patterns the miner left in part of the code stored in each bitcoin block, Whale Alert also concluded that this early bitcoin mining process consisted of up to 48 computers and one of was responsible for the coordination.
Why is the Patoshi pattern unique?
According to Whale Alert, there are two reasons to adjust speed: either to keep the blocking time close to the 10 minute mark or to protect the network from a 51% attack.
Satoshi kept his hashrate exposure constant at 60% as the network grew, and a 51% attack was a major threat to Bitcoin at the time.how it has been for new cryptocurrencies lately.
It is likely that Satoshi tried to protect the Bitcoin network, but as he became less vulnerable to malicious attacks, he reduced Patoshi’s block creation rate to 1 block for 10 minutes.
Blocks mined from the Patoshi chain for 10 minutes. Source: Whale Alert
Many analysts believe that Satoshi stopped mining at block 54,316 after classifying the network as sufficiently decentralized.. However, there were some irregularities in subsequent blocks that last until May 2010 or the 112,500 block, but cannot currently be confirmed as Patoshi or Satoshi.
Will Satoshi ever sell?
The Patoshi miner’s actions seem meticulously calculated and geared to protecting the network as Bitcoin’s global hashrate increases and mining recovers. The same company is unlikely to want to sell part of the Bitcoin offering, which would worsen the BTC network.. Whale Alert concludes with the words:
“The timing of the decommissioning, mining behavior, systematic slowdown in mining speed, and lack of spending strongly suggest that Satoshi was only interested in expanding and protecting the young network. The bitcoin mined by Patoshi may have been just a by-product of this Efforts, and the rest are unlikely to be spent, although the question remains why Satoshi simply didn’t burn them in this case. “
According to one of the early Bitcoin developers, Satoshi was so afraid of a 51% attack that he even had a GPU ready to defend the network, although it wasn’t used to keep the mining somewhat balanced.
Lerner also believes that the Patoshi miner’s actions were not motivated by financial gains and According to Lerner, “Satoshi will never use his coins.”