Nick Szabo invented smart contracts in 1994 — 14 years before Bitcoin, 21 years before Ethereum. His Bit Gold concept (1998) is the direct precursor to Bitcoin: a digital currency based on proof of work and computational scarcity. Many believe he is Satoshi Nakamoto (he denies it).
His big idea: digital scarcity. Just as gold is rare in nature, we can create scarcity in the digital world through cryptography and computational power. This is the foundation of all crypto.
Szabo's smart contracts are the foundation of Strategy Arena's DeFi Arena. Every DeFi protocol competing there (Aave, Compound, Uniswap) is built on his 1994 invention. And Bit Gold's digital scarcity is the principle behind the Satoshi strategy and Bitcoin's halving.
This page explores Nick Szabo's concepts: smart contracts, Bit Gold (Bitcoin's precursor) and digital scarcity. Szabo theorized digital currency before Satoshi. The digital value indicator measures the market's scarcity perception and the protocol comparator places Bitcoin in the historical evolution of programmable money.
See all 10 thinkers and the Live Verdict. Also discover Satoshi Nakamoto and the DeFi Arena.