Nick Szabo: cryptographer whose ideas predated the blockchain revolution

When it comes to potential authors of Bitcoin, one name regularly pops up in cryptocurrency community discussions — Nick Szabo. An American expert in cryptography, law, and computer science, he has left an indelible mark on the development of decentralized systems long before Satoshi Nakamoto presented the Bitcoin white paper to the world.

Early Contributions to Cryptography and Blockchain

Szabo’s education includes a degree from the University of Washington in computer science (1989) and a J.D. from George Washington University. However, his greatest fame comes from conceptual breakthroughs rather than formal qualifications.

In 1994, Nick Szabo introduced the term “smart contracts,” proposing a way to transfer legal guarantees into the digital realm via code. This invention became the foundation for the entire modern blockchain and smart contract industry we see today on platforms like Ethereum and other decentralized networks.

Bit-Gold: The Predecessor to Modern Cryptocurrency

Four years later, in 1998, Szabo presented a concept called Bit-Gold — a revolutionary idea of a digital currency that operated without intermediaries and solved the double-spending problem through a proof-of-work mechanism. The architecture of Bit-Gold relied on a chain of cryptographic computations but used a consensus based on a quorum of addresses rather than computational power, which later revealed vulnerabilities to Sybil attacks.

Szabo explained his motivation as follows: “Long ago, I came across the idea of Bit-Gold. The essence of the problem is that current money relies on trust in a third party. The history of the twentieth century has shown numerous examples of inflation and hyperinflation, proving that such a system is far from ideal.”

Cryptography experts unanimously agree that Bit-Gold laid the conceptual groundwork for Bitcoin’s emergence a decade later.

From Theory to Practice: The Birth of Bitcoin

In October 2008, exactly ten years after Nick Szabo shared his Bit-Gold idea with the community, Satoshi Nakamoto published the Bitcoin white paper. The parallels between the two projects are too obvious to ignore, fueling theories about the true identity of Bitcoin’s creator.

Why Nick Szabo Is Considered a Candidate for Satoshi

Arguments supporting the hypothesis that Nick Szabo is Satoshi Nakamoto are based on several grounds:

Technological Continuum. The evolution from Bit-Gold to Bitcoin appears to be a logical development of ideas. Szabo had enough time and expertise to overcome the technical limitations of his initial concept and create a working system.

Writing Style and Worldview. Analysts, including the author of “Bitcoin: The Future of Money?” Dominic Frisby, noted a remarkable similarity in writing style between Nick Szabo and Satoshi Nakamoto. Both referenced economist Karl Menger in their works. Moreover, both demonstrate an obsessive commitment to privacy.

Complete Technical Competence. His work in smart contracts and other cryptographic solutions indisputably demonstrates that Szabo possesses all the necessary skills to develop Bitcoin.

HBO Hints and Current Speculations

The recently released HBO documentary has rekindled public interest in Satoshi Nakamoto’s identity. On prediction markets like Polymarket, odds for various candidates have shifted sharply. Nick Szabo now leads with double-digit percentage probabilities, leaving other contenders (including the previously popular Lene Sassaman) far behind.

Interestingly, Nick Szabo himself consistently denies involvement in creating Bitcoin at every stage. This contrast with those who openly claim authorship confirms a well-known rule in the crypto community: those claiming to be Satoshi are almost certainly not.

The true identity of Bitcoin’s creator remains an open question, but the life and work of Nick Szabo undeniably demonstrate his fundamental contribution to shaping the blockchain ecosystem, regardless of whether he is behind the legendary pseudonym.