Australian entrepreneur Craig Steven Wright has publicly identified himself as Bitcoin creator Satoshi Nakamoto His admission ends years of speculation about who came up with the original ideas underlying the digital cash system

According to BBC Report, Mr Wright has provided technical proof to back up his claim using coins known to be owned by Bitcoin's creator Prominent members of the Bitcoin community and its core development team have also confirmed Mr Wright's claim At the meeting with the BBC, Mr Wright digitally signed messages using cryptographic keys created during the early days of Bitcoin's development The keys are inextricably linked to blocks of bitcoins known to have been created or "mined" by Satoshi Nakamoto Soon after Mr Wright went public, Gavin Andresen, chief scientist at the Bitcoin Foundation, published a blog backing his claim

In December, police raided Wright's Sydney home and office after Wired magazine named him as the probable creator of bitcoin and holder of hundreds of millions of dollars worth of the cryptocurrency, which has attracted the interest of banks, speculators, criminals and regulators Bitcoin is often referred to as a new kind of currency But it may be best to think of its units being virtual tokens rather than physical coins or notes However, like all currencies its value is determined by how much people are willing to exchange it for To process Bitcoin transactions, a procedure called "mining" must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution

For each problem solved, one block of Bitcoins is processed In addition the miner is rewarded with new Bitcoins This provides an incentive for people to provide computer processing power to solve the problems To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new Bitcoins are produced each day There are currently about 15 million Bitcoins in existence

To receive a Bitcoin, a user must have a Bitcoin address – a string of 27-34 letters and numbers – which acts as a kind of virtual post-box to and from which the Bitcoins are sent Since there is no registry of these addresses, people can use them to protect their anonymity when making a transaction These addresses are in turn stored in Bitcoin wallets, which are used to manage savings Bitcoins are now accepted as payment for a vast variety of goods and services – everything from international money transfers to ransoms for data encrypted by computer viruses There are currently about 15

5 million bitcoins in circulation Each one is worth about $449