Lesson 3: "Time Stamp Server" Prove your transaction data

Time-stamp server

The first mechanism for realizing Bitcoin is a timestamp server.

A timestamp server is a mechanism that automatically assigns a time to digital content when it is created.

Time-stamp servers themselves are not a particularly new technology, and are used in a variety of web services to prove that data did indeed exist at that time.

In the case of Bitcoin, a timestamp can be added to transaction data to prevent fictitious transactions from taking place.

As we learned in Lesson 2, each transaction in a chain of transactions is stored together with a timestamp that is assigned to every transaction.

Therefore, as the number of transactions increases, the credibility of the proof that the data existed in the past increases.