Quote from: ImNotHerb on January 09, 2013, 01:13:12 AM

I have some questions that have to do with how new blocks are created and how the total number of bitcoins is ultimately limited to 21 million. I vaguely understand that new blocks are created through "solving a cryptographic problem" and that this takes an immense amount of computing power. But what I don't understand is what the cryptographic problem they solve is or how it was made part of the blockchain.

Wow, you don't ask for much, do you. This is a huge topic. Please start by reading the whitepaper...

http://bitcoin.org/bitcoin.pdf

And come back with more specific questions....

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Could the entire 21 million BTC blockchain technically be solved only from information that was in the very first block or whatever algorithm is used for BTC?

No.

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Would it be possible (in theory) for all of the information to be known by the creator/Satoshi by having a private key or something that forms the basis for the blockchain?

No.