Where Did ‘Nick Szabo’ Code Bitcoin Software? – CHAPTER[1.8]

N.S.A created Bitcoin through Nick Szabo

The email letters that Hal Finney (First person to receive bitcoin transaction from Satoshi. He died in the same year, 2014. Surprisingly Finney is Nick Szabo’s closest friend since 1993..) supplied to The Wall Street Journal in the spring of 2014 and which were written in Jan 2009, has a bitcoin address that Satoshi shared with Finney which has initials matching Nick Szabo’s name.

“Unfortunately, I can't receive incoming connections from where I am, which has made things more difficult. Your node receiving incoming connections was the main thing keeping the network going the first day or two.”

“You can send to my Bitcoin address if you want to, but you won't get to see the full transfer sequence:”

1NSwywA5Dvuyw89sfs3oLPvLiDNGf48cPD

This bitcoin address starts with 1NS as the first two Base-58 capital letters where “1” is the default prefix for Bitcoin pubkey hash while the string that follows after “1” is generated upon desire (Vanity address). In this case the custom address starts with “NS” and not “ns” or “Ns” but both Capital alphabets which looks like a desired abbreviation to:

NSNick Szabo

Instead of writing it as SN to match Satoshi Nakamoto, Nick mistakenly chose NS because the original name is always strongly fed at the back of one’s mind and during instant emailing, keeping your self focused on both the algorithm and secrecy at the same time is quite difficult sometimes. This is where Nick made another big mistake.

Some critics may argue that I am intentionally making a story out of it and the above address could be just an arbitrary address generated by chance? Or that if Satoshi Nakamoto really wished to use his name then he could have simply created a vanity address with his complete surname i.e. 1Satoshi

Let’s use some old school mathematics to prove my stand:

What is a Vanity Address?

Vanity address is valid bitcoin address that contain a custom message in human-readable format. Such as this address: 1MBTki12847iopshWBop2189HJyusqi248 , where MBT is the message encoded inside this public address.

To create a Vanity address you will need to generate and test billions or trillions of candidate private keys, until you get the desired pattern for your bitcoin address.

A base58 encoded bitcoin address is 34 characters long and it consists of numbers between 1-9, uppercase alphabets A-Z (excluding O) and lower case alphabets a-z. The characters excluded are: 0, O, I, and l.

Now lets analyze how many bitcoin addresses can be created with prefix 1Satoshi and how much time is required to create such vanity address using a general purpose desktop computer PC.

We know that an average PC not attached to any specialized hardware such as GPU or ASIC can search approximately 100,000 keys per second.

The search for a pattern like “1Satoshi” (i.e. 8 characters) means searching for an address in the range from “1Satoshi11111111111111111111111111111” to “1Satoshizzzzzzzzzzzzzzzzzzzzzzzzzzzzz”.

So total possible combinations of bitcoin address that can be formed starting with 1Satoshi are: 58(34-8) = 5826 addresses (~ 7.0652549e+45)

Quite a large set of addresses isn’t it? Then why didn’t Satoshi used it then?

Because if he had chosen this vanity address then it would have taken his computer up to 8 months {(587/100000)/60*60*24*30} to find this perfect match out of (587) 2.2 trillion possible addresses!

The table below shows the frequency of a vanity address pattern and search time required to find it on a desktop PC.

Note: I used my mobile phone’s calculator, frequency and time values are estimates, rounded off to the nearest integer.

Length Pattern Frequency Search Time
1 1S 1 in 58 keys < 0.58 milliseconds
2 1Sa 1 in 3,364 < 33 milliseconds
3 1Sat 1 in 195,112 < 1.95 seconds
4 1Sato 1 in 11.3 million < 1.8 minutes
5 1Satos 1 in 656 million < 1.8 hours
6 1Satosh 1 in 38 billion < 4.4 days
7 1Satoshi 1 in 2.21 trillion < 8.5 months

I am sure Hal Finney could not have waited for that long to receive Nick Szabo’s email response!

Thus Nick Szabo chose to create a vanity address using just two characters “1NS” which might have taken his PC less than 50 milliseconds to search the desired public key. Simple math!

If you notice Satoshi Nakamoto’s (Nick Szabo’s) email to Finney in 2009, Satoshi said:

I can't receive incoming connections from where I am

How can basic computer network connections turn to be a headache for a genius programmer like Satoshi (Nick)? Why couldn’t he troubleshoot the network connection issue to allow incoming connections? Or is it that, he was in a highly secured building where computers require special administrative privileges that Nick Szabo didn’t had or could not access? Which secured or secret building could it be, where Satoshi was coding the Bitcoin software?

This takes us to our second most interesting part of the story.

Is Bitcoin The Work Of A Single Man?

Nick Szabo’s 575 forum posts published at bitcointalk.org on a small interval of time from Nov 2009 to Dec 2010, suggests that, Bitcoin is not the work of Nick Szabo alone or a group of independent cypherpunks but an organized secret project backed by the world's best mathematicians, programmers, investors and cryptographers.

The most likely suspect, capable, willing, and motivated to embark on such a massive monetary project could be none but NSA (National Security Agency).
N.S.A headquarters where Bitcoin software was coded

Not everyone around the world knows that NSA is America’s cryptologic organization, tasked with making (encrypting) and breaking (decrypting) codes and ciphers. No one can even reach the level of expertise NSA has in cryptology thanks to its 40,000 employees compromising of the world’s best engineers, physicists, mathematicians, linguists, computer scientists and every other polymath around the world. Yes you heard it right, “cryptology”, the basic science behind cryptocurrencies.

NSA is a high-technology organization with the world’s most powerful super computers that helps it to intercept any communication taking place around the world. It is responsible for global monitoring, collection, and processing of information and data for foreign intelligence and counterintelligence purposes, i.e. Signals Intelligence (SIGINT)

The history of the National Security Agency dates back to 1917, when U.S declared war on Germany in World War I. During that time U.S military intelligence established a code and cipher decryption unit known as the Cipher Bureau. Communication Intelligence (COMINT) helped the United States and Britain to achieve significant successes against Japanese and Hitler’s Nazi Germany diplomatic communications. it was officially formed as the NSA by President Harry S. Truman in 1952

Since then NSA has grown into a massive intelligence organization and is often engaged with global controversies. Every email that you send online via gmail, hotmail or yahoo can easily be read by an NSA employee thanks to the database access. Secret programs gives NSA backdoor access to Apple, Google, Facebook, Microsoft data.

This is one reason why Google and Facebook is banned in China.

Every social media mobile app or web app, can’t do business in Silicon Valley unless NSA is given secret access to the user database. The recent controversy of Mark Zuckerberg selling user data to Cambridge Analytica is just tip of the Ice berg. Things only seem impossible untill the secrets get leaked out.

NSA also has offensive cyber-warfare capabilities, like injecting malware into remote computers. I will explain in Chapter#2 how they helped in launching Ransomeware Attack worldwide using the EternalBlue exploit created by NSA.

Ransomeware attack was a bitcoin publicity stunt made by NSA for Bitcoin promotion to increase its public adoption rate.

NSA's spying, both foreign and domestic, was revealed for the first time to the world by former NSA contractor, Edward Snowden, in a series of disclosures beginning in June 2013.

Today NSA’s headquarter is located in Fort Meade, Maryland, U.S. with over 30,000-40,000 employees and with an annual budget of $10.8 Billion. All these heads are busy 24/7 to spy upon every targeted individual living on the face of the earth. Indeed they invent the toys that we play with and Bitcoin is just one of them.

NSA was already working on cryptocurrencies, publishing its first white paper in 1996, twelve years before Satoshi's white paper was made public in 2008.

Even the hashing algorithm ( SHA-256 hash function ) used by Satoshi, to secure bitcoin is surprisingly designed by NSA back in 2001! No one in the entire bitcoin community can claim, SHA256 is not vulnerable to collision attacks or it has no backdoors setup by NSA.

NSA can afford to hire the best mathematicians and programmers. When any one of them proposes something, only a few people are able to understand the mathematical proof it's based on. A flaw could exist for decades before someone else find it by accident.

As it happened with SHA-1 (created by NSA) when Google found flaws in it by performing a successful collision attack in 2017. Google and CWI was able to publish two dissimilar PDF files which produced the same SHA-1 hash.

A collision attack in cryptography means you can achieve a single hash value using two different inputs or in other words, same output for two different inputs. In layman terms, two different keys for one single lock..

Any guesses when was SHA-1 released?

  • In 1995, a collision was found two decades later..

A silent message for Bitcoin worshippers whose foundation is based on SHA-256, an upgraded algorithm designed and crafted by the same spy agency in 2001.

Only the original programmer of the script knows all backdoors/keys to the encrypted code. NSA is known to bribe institutes like NIST and RSA to include algorithms of its choice. The most popular incident of which is Dual_EC_DRBG.

Dual Elliptic Curve Deterministic Random Bit Generator is an algorithm that was presented as a cryptographically secure pseudorandom number generator (CSPRNG) using methods in elliptic curve cryptography (used in Bitcoin to create private and public key).

Experts and researchers had widely protested this proposed algorithm by NSA, which according to experts included a potential backdoor that only NSA knows.

Despite criticism, NSA succeeded in bribing RSA security with over $10 million to include the algorithm and surprisingly for seven years it was one of the four CSPRNGs standardized in NIST SP 800-90A.

According to wikipedia:

In December 2013, a Reuters news article alleged that in 2004, before NIST standardized Dual_EC_DRBG, NSA paid RSA Security $10 million in a secret deal to use Dual_EC_DRBG as the default in the RSA BSAFE cryptography library, which resulted in RSA Security becoming the most important distributor of the insecure algorithm.

According to Zero Hedge Team:

The NSA has the capability, the motive, and the operational capacity – they have teams of cryptographers, the biggest fastest supercomputers in the world, and they see the need. Whether instructed by their friends at the Fed, in cooperation with their owners (i.e. Illuminati banking families), or as part of a DARPA project – is not clear and will never be known (unless a whistleblower comes forward). In fact, the NSA employs some of the best mathematicians and cryptographers in the world. Few know about their work because it’s a secret, and this isn’t the kind of job you leave to start your own cryptography company.

Even if we ignore this huge amount of circumstantial evidence, still the most surprising evidence is the 1996 paper published by NSA itself, almost twelve years before the introduction of Bitcoin!

"How to Make a Mint: the Cryptography of Anonymous Electronic Cash"

You will be surprised to figure out, how smartly did NSA launch Bitcoin as a test experiment using the Pseudonym of "Satoshi Nakamoto" and by employing Nick Szabo and his entire team.

According to "Crypto Coins News" Website:

The NSA was one of the first organizations to describe a Bitcoin-like system. About twelve years before Satoshi Nakamoto published his legendary white paper to the Metzdowd.com cryptography mailing list, a group of NSA information security researchers published a paper entitled "How to Make a Mint: the Cryptography of Anonymous Electronic Cash" in two prominent places, the first being an MIT mailing list and the second being much more prominent, The American Law Review (Vol. 46, Issue 4 ).

The paper outlines a system very much like Bitcoin in which secure financial transactions are possible through the use of a decentralized network the researchers refer informally to as a Bank. They list four things as indispensable in their proposed network: privacy, user identification (protection against impersonation), message integrity (protection against tampering/substitution of transaction information – that is, protection against double-spending), and nonrepudiation (protection against later denial of a transaction – a blockchain!).

“We will assume throughout the remainder of this paper that some authentication infrastructure is in place, providing the four security features.” (Section 1.2)

It is evident that SHA-256, the algorithm Satoshi used to secure Bitcoin, was not available because it came about in 2001. However, SHA-1 would have been available to them, having been published in 1993.

Milton Friedman, one of the most successful economists, predicted crypto currency in 1999 and NSA had a design built already in 1996. NSA started working on crypto currency ever since Internet was born.

According to Silicon Angle:

The CIA Project, a group dedicated to unearthing all of the government’s secret projects and making them public, has released a video claiming Bitcoin is actually the brainchild of the US National Security Agency.

The video entitled CIA Project Bitcoin: Is Bitcoin a CIA or NSA project? claims that there is a lot of compelling evidences that proves that the NSA is behind Bitcoin. One of the main pieces of evidence has to do with the name of the mysterious man, woman or group behind the creation of Bitcoin, “Satoshi Nakamoto”.

According to the CIA Project, Satoshi Nakamoto means “Central Intelligence” in Japanese.

A Russian lawmaker also claims that Bitcoin is a CIA conspiracy:

Nonetheless, Svintsov’s remarks count as some of the more extreme to emanate from the discussion. Svintsov told Russian broadcast news agency REGNUM:All these cryptocurrencies [were] created by US intelligence agencies just to finance terrorism and revolutions.

Svintsov reportedly went on to explain how cryptocurrencies have started to become a payment method for consumer spending, and cited reports that terrorist organizations are seeking to use the technology for illicit means.

Want to know how secure Bitcoins hashing algorithm is? Read this:

Claims that the NSA created Bitcoin have actually been flung around for years. People have questioned why it uses the SHA-256 hash function, which was designed by the NSA and published by the National Institute for Standards and Technology (NIST). The fact that the NSA is tied to SHA-256 leads some to assume it’s created a backdoor to the hash function that no one has ever identified, which allows it to spy on Bitcoin users.

Cryptography researcher Matthew D. Green of Johns Hopkins University also said:

“If you assume that the NSA did something to SHA-256, which no outside researcher has detected, what you get is the ability, with credible and detectable action, they would be able to forge transactions. The really scary thing is somebody finds a way to find collisions in SHA-256 really fast without brute-forcing it or using lots of hardware and then they take control of the network,”

SHA-256 is used in two major parts of the Bitcoin network:

  1. Mining uses SHA-256 as the Proof of work algorithm.
  2. SHA-256 is also used in the creation of bitcoin addresses.

And finally here is the statement of former CIA employee and NSA contractor Edward Snowden. In an interview at 'The Internet Engineering Task Force 93', he talked on Bitcoin and its flaws and weaknesses.

image9

“Nobody really likes to talk about Bitcoin anymore. There are informed concepts there. Obviously, Bitcoin by itself is flawed. The protocol has a lot of weaknesses and transaction sides and a lot of weaknesses that structurally make it vulnerable to people who are trying to own 50 percent of the network and so on and so forth.”

- CIA Employee and NSA Contractor, Edward Snowden

Why Is Nick Szabo Given a Japanese Pen Name?

The first reason I shared was that since Dorian Prentice Satoshi Nakamoto lived just two blocks away from Hal Finney’s home, this name might have looked interesting to Nick Szabo as it sounded like a good pen name which matched Nick Szabo’s starting letters of his name. (i.e. N & S). So Satoshi Nakamoto translated just perfectly to Szabo Nick.

The first reason is based totally on facts but my second reason could be my mere speculation or imagination that could be completely wrong but this is my best wild guess so far.

My Wild Guess:

Geographical background plays a vital role in diverting people’s attention. Especially when it is Japan which in other words is a military base of USA and a strong political threat to China’s growing economic influence in Asia.

Japan and U.S are military allies and both are free open Markets and strong foes of China and Russia.

Japan is located in Asia and Asia is world's largest and most populous continent. About 60% of all human beings living on earth reside in Asia.

Using an Asian pseudonym for Bitcoin creator means attracting a large audience of 4.436 billion as test objects.

Japan, South Korea, Taiwan and China are nations with average IQs over 104. Having them as test dummies and the lower belt of South Asia (i.e. India) to understand human behavior to this new electronic currency is of immense importance before a One-World Centralized Cryptocurrency is introduced by the banking elite.

Using a Japanese name will also divert the attention of U.S citizens and Europeans away from the Rothschild and Rockefeller families. This is one reason why 73% Bitcoin ATMs are in North America (USA & Canada) and 20% Bitcoin ATMs are in Europe while only 4% are in Asia.

Bitcoin users are more in USA, Canada and UK because they are being brainwashed to believe that Bitcoin is created by an unknown libertarian by the name Satoshi Nakamoto, who hates the fiat based monetary system and who created Bitcoin to free everyone from debts, taxes and inflation.

Surprisingly this tactic is working as people always act like a sheep, believing in any fairy tale that may give them a hope of freedom from financial slavery. Because they always forget, that Devil is the master of all trickery.

Number of Bitcoin ATMS by country

The elites diverted all attention towards Asia because this is the region that has always showed extreme resistance to their bigger plans and agendas. They could have only used Asia’s 4.436 Billion population as test dummies through a decentralized monetary system that could support cross-border transactions without any control of the local government to stop such financial activity.

Thus Bitcoin with a public blockchain is the best suited system, the banking elite could use to achieve their experimental goals. Indeed, Bitcoin is just a test case!

A complete cashless society is all that they are aiming for, to keep all masses under strict financial scrutiny for ultimate global domination through the power of a centralized cryptocurrency.

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