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Cypherpunk Holdings – An investment company
Private by design decentralized p2p marketplace
Hi fellas, this is my first ever post on privacy. I recently wrote about the existence of an open source DLT-based decentralized marketplace with a mission to enable free and private trade of goods and services. The marketplace description was posted on another subreddit but I think it's worth posting the description here too. Tbh I cant think of anything that qualifies more as "The intersection of technology, privacy, and freedom in a digital world" I hope my own description of the marketplace and its technology bellow will fuel your interest to read more about it. My even bigger hope is that some of you will decide to become first-hand beta testers as soon as the upcoming v3.0 of the marketplace hits the testnet (eta: a few weeks). You can also use the existing version (currently 2.3.5) of the marketplace to buy or sell products on the publicly accessible single community market there (or just play with it). The marketplace: It is called the Particl Marketplace and its ground breaking V3.0 is set to be released after 3 years of hard development work. The V3.0 will be the first version aimed at a wider public (normies and not only tech geeks). It will allow anyone to create easily decentralized personal storefronts or community markets or simply buy/sell goods on existing markets. The user-created markets/storefronts on the marketplace can be public if the access key is publicly announced on the Particl network or absolutely invisible to anyone that doesn’t know the access key (held by the creator). This is an intentional privacy feature and simply put, if you dont have the market access key (essentially a decryption key) there is absolutely no way to see/detect that some market exists. The marketplace is private by design and decentralized, with no middlemen or intermediaries whatsoever. The trades are protected by a two-way automated escrow via smart-contracts that de-incentivize and penalize dishonest behavior on both sides. In particular, the buy-flow forces the buyer to deposit 1x item value + payment and the seller 1x item value (+ sends item) into a common smart contract. If the buyer receives the product/service and its all good, then he unlocks the escrow so both can get their 1x item value deposits back and the seller receive his payment. The marketplace takes no sales commissions from the storefronts/markets and charges only a tiny listing fee (<0.01$) to prevent product listings spamming. All the marketplace generated fees go to the staking nodes that provide the hardware infrastructure for the p2p network to operate. The network nodes can be public or you can run them as Tor hidden services. The technology: The Particl Marketplace is crypto-agnostic and currently supports payments in BTC, PART, ZCoin (XMR, DAI, NIX, USDC, USDT are next in the pipeline and many more to come). It uses as a settlement layer its native coin PART and own blockchain, which is an up-to-date Bitcoin codebase with added privacy features like CT, RingCT (up to 32 mixins), Stealth addresses, etc. These privacy features are used in combination to keep the financial data, like escrows and transactions, private and most importantly un-linkable to the actual market buys/sells. For the users and markets related data exchange like posted listings, buy/sell flows, encrypted user communication, built-in cryptocurrency exchange, etc, the marketplace uses a DSN, currently its a custom Bitmessage variant called SMSG, which allows metadata stripped encrypted p2p data exchange (no sender, no receiver) Last but not least the marketplace desktop app (Particl Desktop) has a built-in option for using the Tor network via proxy. The important people: The cypherpunks behind Particl Marketplace have been OGs freedom advocates and pioneers in the privacy DLT field. For example, they were the first ever to implement features like RingCT, Bulletproofs, PoS, cold staking, etc on a Bitcoin codebase. Their privacy features implementations have been audited successfully by several respectable academics and security R&D providers, like QuarksLab. The team behind the project has been so far focused on building without any marketing/awareness efforts and thus have remained intentionally in the shadows. The latter is planned to change with the v3.0 release. One of the steps towards that will be the initiation of several long-planned awareness campaigns, like the Vendor Onboarding and Outreach Program, the Particl Academy (an easy to understand and learn about the technology portal) and many more. Me: I am a passionate freedom and privacy advocate that discovered the project 1.5 year ago and since then has become a member of their small but like-minded community ([email protected]/discord). My personal belief is that the Particl Marketplace provides a game-changing/breaking usecase to the world. At the minimum, due to the open source nature of the project, it will be a proof of concept that is bound to shift the global eCommerce paradigm.
Usually, bull markets attract a lot of new investors - although speculators should be the right word here - and as usual, a lot of them are going to be crushed a way or another. First, before putting a single dollar, euro or whatever in the market, you should read a lot to know exactly what you're looking for. Are you here for the tech and/or the cypherpunk ethos ? Great, there's lot of resources out there (my links are cleaned but as always, do your due diligence) :
The Bitcoin Whitepaper, the one and only : bitcoin.org/bitcoin.pdf Since I'm linking to bitcoin.org, friendly reminder to avoid bitcoin.com, owned by a former supporter now con-artist Roger Ver.
Andreas Antonopoulos website : https://aantonop.com Andreas is one of best guys able to educate on bitcoin and its properties, for free, which helps.
Jameson Lopp website : lopp.net Jameson is a member of Bitcoin Core, cypherpunk, also able to educate a lot. His website is full of free resources and other links. You'll have a lot to read.
Hal Finney : he's unfortunately dead but I would advise to read about Hal Finney, the first to receive bitcoin Satoshi. A great cryptographer, the inventor of the first reusable PoW and one of the first bitcoin supporters. You'll be able to find his messages on this old forum Bitcoin Talk, by the way you'll be able to find the first chats about bitcoin on this forum bitcointalk.org
Monero website : getmonero.org Yep, I know it's gonna be controversial to post an altcoin link but personally, I think that Monero (aka XMR) is the only other coin with a big cypherpunk community, decentralized, and able to help newcomers with a great sense of responsibility, since the ethos here is to save privacy.
What Bitcoin Did : of course, Peter is controversial but I love him and I find his former blog and his podcasts very needed because he doesn't oversell himself. Pete knows that he's not a tech guy (like many of us) and just wants to spread the word, I think he does a good job with this.
Now, you've read and you want to put some skin in the game. Several exchanges are acceptable, a lot of aren't, be careful and assume that none really are (know that I won't post any ref links) :
to me, the best, although it's UI is quite old : Kraken €/$/pound/swiss franc on-off ramp
Coinbase and Coinbase Pro Difficult not to mention Coinbase, although I can't stand Brian Armstrong and the way they are doing their best to support scams currently. You should rather use Coinbase Pro if you have to since the fees are much lower.
Binance Binance came later than the previous ones but has managed to take most of the market. Now, you should remember what I said about being careful.
Huobi The biggest chinese exchange and they work closely with chinese official. Again, careful.
Bittrex Once at the top, now somewhere in the limbs.
A lot of new comers came recently like btse, ftx, feel free to try them while always keeping in mind that once your money is on exchanges, it's not yours anymore.
This was for centralized exchanges aka CEX. Talking about custodial, you'll need wallets to store your (bit)coins. Always try to use non-custodial wallets, which means wallets that give you your private keys. This way, if the software goes down, you can always retreive your money. Now, I won't link to all the existing wallets but will advise you to buy hardware wallets (trezor or ledger but there are others) or to create (on off-gap computers) paper wallets you're able to store safely (against all risks, not only robbery but housefire). You also could use your memory with brain wallets but, my gosh, I wouldn't trust myself. For Bitcoin (or even Litecoin), Electrum software can do a good job (but save your keys). AGAIN, DON'T KEEP YOUR SAVINGS ON AN EXCHANGE Now, about trading : it's been repeated and repeated but don't chase pumps and altcoins. Yep, it's probably the fastest way to make money. It's also the fastest to lose it. I won't lie : I made good money during the 2017-bullrun and I took profits but I also forgot to sell some shitcoins thinking it would keep going up, now I'm still holding these bags (although I don't really care). I know that a lot forgot to take profits. Take profits, always take profits, whatever your strategy is. Don't fall for people trying to sell you their bags, for ICOs trying to sell you a product which isn't released yet and obviously, don't fall for people asking for your private key. Also, know that there's two endgames : accumulating bitcoin or fiat. I'm rather in the first team but whatever your strategy is, take profits. (Yes, I know, some will say accumulating ethereum or something else). It's true that a lot of ethereum holders made a lot of money during the last bullrun (ethereum helped me make money too) but I'm really biased in favor of bitcoin (and monero). So, pick your coin but again, do your due diligence. A lot of people here or there will talk about the best tech, the fact that bitcoin is old and slow. I would need another post to go further on this point but know that a lof of air flight systems are old too but reliable. Trustless and reliable is the point here. This is the post from someone who bought bitcoin seven or six years ago, who lost part of them, who spent part of them (but don't regret this at all), who is still learning and I hope it will help others, although it would need a book to be complete.
Yesterday a post of mine got a good amount of attention in this, my favourite, sub. So I have decided to post it here in full... More than mildly, it annoys us that we have the tools to be truly sovereign and yet we continue to submit our ourselves, and our bitcoin, to centralised authorities. "Privacy is necessary for an open society in the electronic age"; yet KYC is demanded before we can trade. "Not your keys, not your coins"; yet millions of bitcoin sit in the vaults of custodial exchanges and wallets. For monetary liberty to be widespread it must be part of the social contract. We must come together to deploy decentralised systems that maintain Bitcoin's promise of sovereignty. These tools already exist and they are improving.
Bitcoin maintains its sovereignty through technological, cryptographic means. First and foremost, private keys provide the only means of control and ownership. Second, and most famously, Proof of Work defends the network against attack. Attackers, however, are not limited to attacking the cryptography or the hashpower in order to limit our sovereignty. They route around and seek any weak links. "Trusted third parties are security holes". We increase the perimeter of defence by eliminating these trusted third parties.
Ethereum is Bitcoin’s Testnet
We will splice the DNA of DeFi into Bitcoin. We will increase Bitcoin's defense perimeter. The tools already exist. Ethereum is our testnet. Let it provide the radioactive pool where mutations are many. Let us observe it as it moves fast and breaks things. We will adopt it's best tools and learn to defend against its worst. Rootstock, a Bitcoin sidechain, can be our CRISPR in this genetic adoption. We will splice the code from Ethereum dapps and improve upon them.
Cypherpunks write code, share code, review code and copy code. Sovereign individuals use this code. Like the X-men's Rouge, Bitcoiners will absorb the superpowers of others. I have been working on a DeFi dapp for decentralised bitcoin trading and lending. Hopefully you will join me, or better yet, compete with me. "Those who would give up Liberty, to purchase a little temporary convenience, will have neither Liberty nor convenience." That will be our code. Onwards.
Hi fellas, this is my first post on the darknet. I read today about the Empire Market and decided to post here about a tech that might help to end this charade of constant exit scams. My post is about a DLT-based open source decentralized marketplace that will hopefully initiate a paradigm shift in the free and private trade between individuals and ends the exit-scams and leaky databases problem once and for all. It is called the Open Marketplace V3.0 and is set to be released after 3 years of hard development work by Particl Project, including one year of public beta testing. My personal belief is that they are releasing to the world a game-changing/breaking product. At minimum, due to the open source nature of the project, this is a proof of concept that is bound to shift the global eCommerce paradigm into DeCommerce. I hope my own description below of the marketplace and its technology will fuel your interest to read more about it. My even bigger hope is that some of you will decide to become first-hand beta testers as soon as the Open Marketplace v3.0 hits the testnet (eta: a few weeks). The marketplace: The Open Marketplace is designed to be private by default and decentralized with no middlemen/intermediaries whatsoever. The trades are protected by two-way automated escrow via smart-contracts that de-incentivize and penalize dishonest behavior on both sides. The Open Marketplace takes no sales commissions and charges only a tiny listing fee (<0.01$) to prevent listing spamming. All the marketplace generated fees go to the nodes that provide the hardware infrastructure for the p2p network to operate. The nodes can be public or you can run them as Tor hidden services. The V3.0 that is set to be released will be the first version open to the wider public. It will allow anyone to create easily a decentralized personal storefront or a community market or simply buy and sell goods on the already existing markets. The user-created markets/storefronts can be visible on the marketplace if the access key is publicly announced or absolutely invisible to anyone that doesn't know the access key (held by the creator). This is an intentional privacy feature and simply put without going into many technical details, if you dont have market access key there is absolutely no way to see/detect that some market exists. The technology: The Open Marketplace is crypto-agnostic and currently supports payments in BTC, PART, ZCoin (DAI, NIX are next in the pipeline and many more to come). It uses as a settlement layer its native blockchain, which is an up-to-date Bitcoin codebase with added privacy features like CT, RingCT (up to 32 mixins), Stealth addresses, etc. These privacy features are used in combination to keep the financial data like escrows, transactions, etc private and most importantly un-linkable to the actual market buys/sells. For the actual user or markets related data exchange like posted listings, buy/sell flows, encrypted user communication, built-in cryptocurrency exchange, etc, the Open Marketplace uses a custom Bitmessage variant called SMSG, which allows metadata stripped encrypted data exchange. Last but not least the Open Marketplace client has a built-in option for using Tor network via proxy. The important people: The cypherpunks behind Particl's Open Marketplace have been passionate pioneers and OGs in the privacy DLT field. For example, they were the first ever to implement features like RingCT, Bulletproofs, PoS, cold staking, etc on a Bitcoin codebase. Their privacy features implementations have been audited successfully by several respectable academics and security R&D providers, like QuarksLab. The team has been so far focused on building without any marketing and thus have remained intentionally in the shadows but the latter is planned to change with the v3.0 release. One of the steps towards that will be the initiation of the long-planned Vendor On-boarding and Outreach Program and the release of the Particl Academy, an easy to understand and learn about the project portal. Me: I am a passionate freedom and privacy advocate that discovered the project 1.5 year ago and since then has become a member of their small but like-minded community ([email protected]/discord).
Stakenet (XSN) - A DEX with interchain capabilities (BTC-ETH), Huge Potential [Full Writeup]
Preface Full disclosure here; I am heavily invested in this. I have picked up some real gems from here and was only in the position to buy so much of this because of you guys so I thought it was time to give back. I only invest in Utility Coins. These are coins that actually DO something, and provide new/build upon the crypto infrastructure to work towards the end goal that Bitcoin itself set out to achieve(financial independence from the fiat banking system). This way, I avoid 99% of the scams in crypto that are functionless vapourware, and if you only invest in things that have strong fundamentals in the long term you are much more likely to make money. Introduction
Stakenet is a Lightning Network-ready open-source platform for decentralized applications with its native cryptocurrency – XSN. It is powered by a Proof of Stake blockchain with trustless cold staking and Masternodes. Its use case is to provide a highly secure cross-chain infrastructure for these decentralized applications, where individuals can easily operate with any blockchain simply by using Stakenet and its native currency XSN.
Ok... but what does it actually do and solve? The moonshot here is the DEX (Decentralised Exchange) that they are building. This is a lightning-network DEX with interchain capabilities. That means you could trade BTC directly for ETH; securely, instantly, cheaply and privately. Right now, most crypto is traded to and from Centralised Exchanges like Binance. To buy and sell on these exchanges, you have to send your crypto wallets on that exchange. That means the exchanges have your private keys, and they have control over your funds. When you use a centralised exchange, you are no longer in control of your assets, and depend on the trustworthiness of middlemen. We have in the past of course seen infamous exit scams by centralised exchanges like Mt. Gox. The alternative? Decentralised Exchanges. DEX's have no central authority and most importantly, your private keys(your crypto) never leavesYOUR possession and are never in anyone else's possession. So you can trade peer-to-peer without any of the drawbacks of Centralised Exchanges. The problem is that this technology has not been perfected yet, and the DEX's that we have available to us now are not providing cheap, private, quick trading on a decentralised medium because of their technological inadequacies. Take Uniswap for example. This DEX accounts for over 60% of all DEX volume and facilitates trading of ERC-20 tokens, over the Ethereum blockchain. The problem? Because of the huge amount of transaction that are occurring over the Ethereum network, this has lead to congestion(too many transaction for the network to handle at one time) so the fees have increased dramatically. Another big problem? It's only for Ethereum. You cant for example, Buy LINK with BTC. You must use ETH. The solution? Layer 2 protocols. These are layers built ON TOP of existing blockchains, that are designed to solve the transaction and scaling difficulties that crypto as a whole is facing today(and ultimately stopping mass adoption) The developers at Stakenet have seen the big picture, and have decided to implement the lightning network(a layer 2 protocol) into its DEX from the ground up. This will facilitate the functionalities of a DEX without any of the drawbacks of the CEX's and the DEX's we have today. Heres someone much more qualified than me, Andreas Antonopoulos, to explain this https://streamable.com/kzpimj 'Once we have efficient, well designed DEX's on layer 2, there wont even be any DEX's on layer 1' Progress The Stakenet team were the first to envision this grand solution and have been working on it since its conception in June 2019. They have been making steady progress ever since and right now, the DEX is in an open beta stage where rigorous testing is constant by themselves and the public. For a project of this scale, stress testing is paramount. If the product were to launch with any bugs/errors that would result in the loss of a users funds, this would obviously be very damaging to Stakenet's reputation. So I believe that the developers conservative approach is wise. As of now the only pairs tradeable on the DEX are XSN/BTC and LTC/BTC. The DEX has only just launched as a public beta and is not in its full public release stage yet. As development moves forward more lightning network and atomic swap compatible coins will be added to the DEX, and of course, the team are hard at work on Raiden Integration - this will allow ETH and tokens on the Ethereum blockchain to be traded on the DEX between separate blockchains(instantly, cheaply, privately) This is where Stakenet enters top 50 territory on CMC if successful and is the true value here. Raiden Integration is well underway is being tested in a closed public group on Linux. The full public DEX with Raiden Integration is expected to release by the end of the year. Given the state of development so far and the rate of progress, this seems realistic. Tokenomics 2.6 Metrics overview (from whitepaper)
Ticker: XSN. Currency type: Coin.
Consensus: Minting Proof of Stake, Trustless Proof of Stake.
XSN is slightly inflationary, much like ETH as this is necessary for the economy to be adopted and work in the long term. There is however a deflationary mechanism in place - all trading fees on the DEX get converted to XSN and 10% of these fees are burned. This puts constant buying pressure on XSN and acts as a deflationary mechanism. XSN has inherent value because it makes up the infrastructure that the DEX will run off and as such Masternode operators and Stakers will see the fee's from the DEX. Conclusion We can clearly see that a layer 2 DEX is the future of crypto currency trading. It will facilitate secure, cheap, instant and private trading across all coins with lightning capabilities, thus solving the scaling and transaction issues that are holding back crypto today. I dont need to tell you the implications of this, and what it means for crypto as a whole. If Stakenet can launch a layer 2 DEX with Raiden Integration, It will become the primary DEX in terms of volume. Stakenet DEX will most likely be the first layer 2 DEX(first mover advantage) and its blockchain is the infrastructure that will host this DEX and subsequently receive it's trading fee's. It is not difficult to envision a time in the next year when Stakenet DEX is functional and hosting hundreds of millions of dollars worth of trading every single day. At $30 million market cap, I cant see any other potential investment right now with this much potential upside. This post has merely served as in introduction and a heads up for this project, there is MUCH more to cover like vortex liquidity, masternodes, TOR integration... for now, here is some additional reading. Resources
So, we have already discussed the prerequisites for the creation of electronic currencies, as well as the appearance of the mysterious Satoshi Nakamoto. Today we will continue with this story. According to Satoshi himself, the idea of creating Bitcoin came to him in 2007. The announcement of the algorithm took place on October 31, 2008, when Satoshi published a «white paper» of bitcoin through the use of electronic mailing lists and sent it to all the addresses contained in the cypherpunk address book. When explaining the letter, he indicated that he had developed a peer-to-peer electronic money system, through which transactions could be performed directly but anonymously between the participants Satoshi called Bitcoin «e-cash» or «electronic cash». Later, in 2011, Forbes magazine published an article entitled «Crypto currency» dedicated to Bitcoin, after which the term «cryptocurrency» became common place for such systems. After the Electronic mailing, Satoshi and the cryptographers who joined him began work on the creation of a «client». In January 2009, Bitcoin 0.1 version was launched. Satoshi’s computer became the first «node», Hal Finney was the second to connect to the Blockchain network. In January the same year, the first block of coins was generated and the first transaction made. Satoshi had sent 10 bitcoins to Hal. In September 2009, the first exchange of bitcoin for real money was made — user Martti Malmi received $ 5.02 for 5050 bitcoins from user ‘NewLibertyStandard’ via PayPal. In fact, this transaction was both a purchase and a sale. In October, the bitcoin exchange rate was determined by multiplying the average computing power used to obtain one coin multiplied by the cost of electricity in the United States, and thus, 1309 bitcoins could be bought for $ 1. In November 2009, a forum was created on the website bitcoin.org where bitcoin enthusiasts could communicate with one another. With the growth in the number of nodes, the complexity of mining had increased, which in turn necessitated the search for newer ways to mine coins. Instead of mining using a CPU, Users began using the GPUs on video cards to improve the efficiency of their devices. During the same period, the user ArtForz created the first mining farm, which was a combination of several video cards constantly engaged in the mining process. On July 17, 2010, the first digital currency exchange’ MtGox’ was created. Only 10 years later with the help of NeuronChain, the first digital currency exchange NeuronEx was created which allows users to make digital transactions of not only cryptocurrency, but fiat money! Now all of the most popular digital currencies are available to transactions on NeuronEx — BTC, BCH, ETH, ETC, LTC, DASH, XRP, Dogecoin, EMC, EOS, BCH, BSV, EURT, USDT, CNHT, XAUT, as well as its own Neuron Coin — NRON. https://preview.redd.it/4lz79yjgevn51.jpg?width=1200&format=pjpg&auto=webp&s=71467a05fae88c600f86c2380f9cd4aedcfa5802 #Finance #NeuronChain #blockchain #NeuronEx #NeuronWallet #CryptoNeuroNews #crypto
Crypto Banking Wars: Can Non-Custodial Crypto Wallets Ever Replace Banks?
Can they overcome the product limitations of blockchain and deliver the world-class experience that consumers expect? https://reddit.com/link/i8ewbx/video/ojkc6c9a1lg51/player This is the second part ofCrypto Banking Wars— a new series that examines what crypto-native company is most likely to become thebank of the future. Who is best positioned toreach mainstream adoptionin consumer finance? --- While crypto allows the world to get rid of banks, a bank will still very much be necessary for this verypowerfultechnology to reach the masses. As we laid out in our previous series, Crypto-Powered, we believe companies that build with blockchain at their core will have the best shot at winning the broader consumer finance market. We hope it will be us at Genesis Block, but we aren’t the only game in town. So this series explores the entire crypto landscape and tries to answer the question, which crypto company is most likely to become the bank of the future? In our last episode, we offered an in-depth analysis of big crypto exchanges like Coinbase & Binance. Today we’re analyzing non-custodial crypto wallets. These are products where only the user can touch or move funds. Not even the company or developer who built the application can access, control, or stop funds from being moved. These apps allow users to truly become their own bank. We’ve talked a little about this before. This group of companies is nowhere near the same level of threat as the biggest crypto exchanges. However, this group really understands DeFi and the magic it can bring. This class of products is heavily engineer-driven and at the bleeding-edge of DeFi innovation. These products are certainly worth discussing. Okay, let’s dive in.
Users & Audience
These non-custodial crypto wallets are especially popular among the most hardcore blockchain nerds and crypto cypherpunks.
“Not your keys, not your coins.”
This meme is endlessly repeated among longtime crypto hodlers. If you’re not in complete control of your crypto (i.e. using non-custodial wallets), then it’s not really your crypto. There has always been a close connection between libertarianism & cryptocurrency. This type of user wants to be in absolute control of their money and become their own bank. In addition to the experienced crypto geeks, for some people, these products will mean the difference between life and death. Imagine a refugee family that wants to safely protect their years of hard work — their life savings — as they travel across borders. Carrying cash could put their safety or money at risk. A few years ago I spent time in Greece at refugee camps — I know first-hand this is a real use-case. https://preview.redd.it/vigqlmgg1lg51.png?width=800&format=png&auto=webp&s=0a5d48a63ce7a637749bbbc03d62c51cc3f75613 Or imagine a family living under an authoritarian regime — afraid that their corrupt or oppressive government will seize their assets (or devalue their savings via hyperinflation). Citizens in these countries cannot risk putting their money in centralized banks or under their mattresses. They must become their own bank. These are the common use-cases and users for non-custodial wallets.
Let’s take a look at some of the strengths with non-custodial products.
Regulatory arbitrage Because these products are “non-custodial”, they are able to avoid the regulatory burdens that centralized, custodial products must deal with (KYC/AML/MTL/etc). This is a strong practical benefit for a bootstrapped startup/buildedeveloper. Though it’s unclear how long this advantage lasts as products reach wider audiences and increased scrutiny.
User Privacy Because of the regulatory arbitrage mentioned above, users do not need to complete onerous KYC requirements. For example, there’s no friction around selfies, government-issued IDs, SSNs, etc. Users can preserve much of their privacy and they don’t need to worry about their sensitive information being hacked, compromised, or leaked.
Absolute control & custody This is really one of the great promises of crypto — users can become their own bank. Users can be in full control of their money. And they don’t need to bury it underground or hide it under a mattress. No dependence, reliance or trust in any third parties. Only the user herself can access and unlock the money.
Now let’s examine some of the weaknesses.
Knowledge & Education Most non-custodial products do not abstract away any of the blockchain complexity. In fact, they often expose more of it because the most loyal users are crypto geeks. Imagine how an average, non-crypto user feels when she starts seeing words like seed phrases, public & private keys, gas limits, transaction fees, blockchain explorers, hex addresses, and confirmation times. There is a lot for a user to learn and become educated on. That’s friction. The learning curve is very high and will always be a major blocker for adoption. We’ve talked about this in our Spreading Crypto series — to reach the masses, the crypto stuff needs to be in the background.
User Experience It is currently impossible to create a smooth and performant user experience in non-custodial wallets or decentralized applications. Any interaction that requires a blockchain transaction will feel sluggish and slow. We built a messaging app on Ethereum and presented it at DevCon3 in Cancun. The technical constraints of blockchain technology were crushing to the user experience. We simply couldn’t create the real-time, modern messaging experience that users have come to expect from similar apps like Slack or WhatsApp. Until blockchains are closer in speed to web servers (which will be difficult given their decentralized nature), dApps will never be able to create the smooth user experience that the masses expect.
Product Limitations Most non-custodial wallets today are based on Ethereum smart contracts. That means they are severely limited with the assets that they can support (only erc-20 tokens). Unless through synthetic assets (similar to Abra), these wallets cannot support massively popular assets like Bitcoin, XRP, Cardano, Litecoin, EOS, Tezos, Stellar, Cosmos, or countless others. There are exciting projects like tBTC trying to bring Bitcoin to Ethereum — but these experiments are still very, very early. Ethereum-based smart contract wallets are missing a huge part of the crypto-asset universe.
Technical Complexity While developers are able to avoid a lot of regulatory complexity (see Strengths above), they are replacing it with increased technical complexity. Most non-custodial wallets are entirely dependent on smart contract technology which is still very experimental and early in development (see Insurance section of this DeFi use-cases post). Major bugs and major hacks do happen. Even recently, it was discovered that Argent had a “high severity vulnerability.” Fortunately, Argent fixed it and their users didn’t lose funds. The tools, frameworks, and best practices around smart contract technology are all still being established. Things can still easily go wrong, and they do.
Loss of Funds Risk Beyond the technical risks mentioned above, with non-custodial wallets, it’s very easy for users to make mistakes. There is no “Forgot Password.” There is no customer support agent you can ping. There is no company behind it that can make you whole if you make a mistake and lose your money. You are on your own, just as CZ suggests. One wrong move and your money is all gone. If you lose your private key, there is no way to recover your funds. There are some new developments around social recovery, but that’s all still very experimental. This just isn’t the type of customer support experience people are used to. And it’s not a risk that most are willing to take.
Integration with Fiat & Traditional Finance In today’s world, it’s still very hard to use crypto for daily spending (see Payments in our DeFi use-cases post). Hopefully, that will all change someday. In the meantime, if any of these non-custodial products hope to win in the broader consumer finance market, they will undoubtedly need to integrate with the legacy financial world — they need onramps (fiat-to-crypto deposit methods) and offramps (crypto-to-fiat withdraw/spend methods). As much as crypto-fanatics hate hearing it, you can’t expect people to jump headfirst into the new world unless there is a smooth transition, unless there are bridge technologies that help them arrive. This is why these fiat integrations are so important. Examples might be allowing ACH/Wire deposits (eg. via Plaid) or launching a debit card program for spend/withdraw. These fiat integrations are essential if the aim is to become the bank of the future. Doing any of this compliantly will require strong KYC/AML. So to achieve this use-case — integrating with traditional finance —all of the Strengths we mentioned above are nullified. There are no longer regulatory benefits. There are no longer privacy benefits (users need to upload KYC documents, etc). And users are no longer in complete control of their money.
One of the great powers of crypto is that we no longer depend on banks. Anyone can store their wealth and have absolute control of their money. That’s made possible with these non-custodial wallets. It’s a wonderful thing. I believe that the most knowledgeable and experienced crypto people (including myself) will always be active users of these applications. And as mentioned in this post, there will certainly be circumstances where these apps will be essential & even life-saving.
However, I do not believe this category of product is a major threat to Genesis Block to becoming the bank of the future.
They won’t win in the broader consumer finance market — mostly because I don’t believe that’s their target audience. These applications simply cannot produce the type of product experience that the masses require, want, or expect. The Weaknesses I’ve outlined above are just too overwhelming. The friction for mass-market consumers is just too much. https://preview.redd.it/lp8dzxeh1lg51.png?width=800&format=png&auto=webp&s=03acdce545cd032f7e82b6665b001d7a06839557 The winning bank will be focused on solving real user problems and meeting user needs. Not slowed down by rigid idealism like censorship-resistance and absolute decentralization, as it is with most non-custodial wallets. The winning bank will be a world-class product that’s smooth, performant, and accessible. Not sluggish and slow, as it is with most non-custodial wallets. The winning bank will be one where blockchain & crypto is mostly invisible to end-users. Not front-and-center as it is with non-custodial wallets. The winning bank will be one managed and run by professionals who know exactly what they’re doing. Not DIY (Do It Yourself), as it is with non-custodial wallets. So are these non-custodial wallets a threat to Genesis Block in winning the broader consumer finance market, and becoming the bank of the future? No. They are designed for a very different audience. ------ Other Ways to Consume Today's Episode:
Bien des exposés sur le bitcoin commencent par des considérations sur la monnaie qui, sous prétexte de questionner, risquent de perturber les tranquilles certitudes de l’auditoire (de la monnaie, bien des gens instruits se contentent de savoir qu’ils n’en ont pas assez) ou par l’exposé de prouesses cryptographiques qui sont aussi indifférentes aux honnêtes gens que les mérites respectifs des chlorofluorocarbones et des hydrofluorocarbones pour réfrigérer leur apéritif. De l’euro, on ne se demande guère « ce qu’il est ». On sait qu’il est né en 2002 avec moult messieurs en cravate autour de son berceau, et on croit qu’il est fabriqué à Francfort, personne n’attachant la moindre importance aux petits symboles des souverainetés nationales résiduelles sur les pièces. Sur ce qui lui donne sa valeur, personne ne philosophe puisqu’il est lui-même l’étalon de la valeur de toutes choses au supermarché et le moyen de se les procurer. Le Bitcoin, en comparaison, ressemble à un orphelin de milieu louche et pas trop bien vu des gens puissants. Cela lui pose des problèmes identitaires, car on cherche toujours l’origine des gens ou des choses avant d’accorder sa confiance, et ce n’est pas une démarche idiote. Peut-être faut-il donc chercher à lui donner une sorte d’état civil (nom, prénom date et lieu de naissance, domicile, profession, nationalité). Son nom vient de l’anglais « bit » : unité d’information binaire et « coin » : pièce de monnaie. C’est terriblement banal. Comme Tintin. C’est un nom où chacun peut mettre un peu de lui et se projeter . Pour ce qui est de son géniteur, en revanche, on est bien dans le romanesque. Le plus raisonnable est de penser que c’est un cypherpunk américain (ou un groupe de cypherpunks) qui a trouvé en fin 2008 le « truc » que beaucoup de gens cherchaient depuis des années. Pour le moment, ou pour toujours, il faut faire avec ce « père absent ». On peut quand même se laisser aller à dire que d’autres grands fondateurs sont inconnus, en définitive : qui a écrit la Bible ? qui a fondé Rome ? qui étaient les ancêtres de Clovis ? Mais comme nous ne vivons plus à une époque aristocratique mais dans un temps mercantile, la question de la paternité se transforme vite en question de propriété : à qui ça appartient, le bitcoin ? Ma réponse, que je livre ici, est la suivante. Le protocole le plus connu de tous, c’est l’alphabet. Nul n’en connaît précisément l’origine, et moins encore le « père ». L’alphabet est à tous, gratuitement, et il est généralement sensé de se servir de l’alphabet commun pour être compris. Mais ce que vous en faites, ce que vous écrivez (lettre, livre…) est à vous (défense de la vie privée, de la propriété intellectuelle…). Et ceci conduit à la question de la profession : « ça fait quoi ? ». Bitcoin est un truc pour échanger. Comme l’alphabet pour s’écrire, les chiffres pour faire les comptes, l’infrastructure téléphonique pour se causer ou… les protocoles http ou smtp (quand l’interlocuteur a de l’instruction !) pour surfer et s’envoyer des mails. Comme je l’ai écrit sur mon blog, dans le billet intitulé «complètement timbré», ce à quoi un bitcoin ressemblerait, pour l’usage, ce serait à une lettre (recommandée, et qui arriverait vraiment, dans les temps, et qu’il ne faudrait pas aller chercher au bureau de poste). Mais cette lettre, à peine reçue, on pourrait s’en resservir pour la renvoyer à quelqu’un d’autre. Et mettre dedans ce qu’on veut : une lettre, une image, une musique ou… de l’argent (hum… lire l’échange ci-dessous en commentaire avec Marco). Donc cette enveloppe magique, on serait d’accord pour l’acheter, assez chère, non ? C’est pour cela que certains acceptent de payer leurs bitcoins à un certain prix. Surtout que cette enveloppe magique, personne d’autre ne peut l’ouvrir que son destinataire. Alors que les mails, les sms, les virements bancaires, tout est ouvert, lu, archivé, que cela vous plaise ou non… La plus délicate question, selon moi, dans l’état civil de Bitcoin, est celle de son domicile. « Il est où le bitcoin ? » Ici, mieux vaut être rassurant. Répondre « il est dans le Cloud » risque de ne rassurer que les geeks. Et parler des data centers échauffe les écolos. Le bitcoin, il est en vérité comme les euros de la mère Michel : dans un livre. C’est juste le livre qui, au lieu d’être à la Banque Pop (où il n’y a pas d’or, d’ailleurs demandez-leur de l’or, ou même des dollars, vous verrez : il n’y a rien !) est conservé en plusieurs milliers d’exemplaires par des membres actifs de la communauté. Et ces exemplaires-là sont identiques et infalsifiables, alors que la Banque, à défaut de se « tromper » a tout de même tendance à passer des écritures dans votre compte sans trop demander votre avis. Oui, oui, mais ils sont où le bitcoin et le livre du bitcoin ? Il est en France ? en Europe ? Votre interlocuteur travaille sans doute pour les douanes… Là on entre dans un débat intéressant. Formellement vos euros sont en France parce qu’ils sont inscrits sur un livre tenu par la Caisse d’Épargne de Romorantin ou la Poste de Belleville. S’ils sont inscrits sur un livre chez Reyl et Cie à Genève, vous êtes en délicatesse avec la douane. Les bitcoins sont sur plusieurs milliers de livres, partout dans le monde. Il est donc raisonnable de penser qu’ils sont partout à la fois, à l’étranger, où que vous les ayez achetés et où que vous soyez. Des billets de banque, des lingots d’or, vous pouvez les avoir « sur vous ». Pas des bitcoins. Même dans les clés USB les mieux protégées, vous n’avez pas vos bitcoins, mais seulement la clé privée de leur adresse dans le registre. Ils seraient sur la lune ou sur la tête à Mathieu que ce serait pareil. Dans un article publié sur le Cercle des Echos, j’ai parlé des limites de la pensée à ce sujet. Nous continuons de penser, le plus souvent, avec nos sens. L’espace c’est souvent, implicitement, un territoire. Une large part de notre droit civil et de notre fiscalité est élaborée sur les savoir-faire de l’arpenteur et du conservateur des hypothèques. La « police de l’air et des frontières » se fait toujours sur le plancher des vaches. L’espace où s’inscrit le bitcoin n’est pas un territoire. À la différence des valeurs listées par la douane, le bitcoin ne voyage pas. Qu’on l’encaisse ou qu’on le décaisse, il ne franchit en réalité aucune frontière terrestre, maritime ou aérienne. Sa vitesse de circulation ne provient d’ailleurs que de ce qu’en fait il ne voyage pas, du moins pas avec nous ni dans le même espace. La meilleure comparaison pour parler de son espace, c’est peut-être de chercher quelque chose comme un terrain de jeux. Par exemple celui du Monopoly. On s’y déplace, on y fait des transactions, avec une monnaie ad hoc. Mais « Rue de la Paix » n’est pas plus en France que « Boardwalk » (la même case) n’est en Amérique. On peut d’ailleurs jouer à plusieurs, répartis sur différents continents et régler par virement dans le monde virtuel du jeu. 📷 Il est à qui le bitcoin ? Bitcoin, bien sûr, n’est pas un Monopoly. Notre interlocuteur sait bien qu’avec des bitcoins, on peut acheter dans notre monde physique des objets que l’on possède vraiment alors. Mais que veut dire pour lui posséder des bitcoins qu’il ne lui est pas possible d’enfermer dans un support matériel ? Peut-on posséder un bien immatériel quand pour ce bien il n’y a pas de certificat d’authenticité nominatif ? Il faut bien avouer que, comme pour la question du « lieu », la question du « lien » est difficile à appréhender sur la base de nos seuls sens. Notre langage lui-même ne semble pas adapté encore pour cette situation. Est-ce à dire que Bitcoin n’a point de nationalité ? Evidemment non. Bitcoin est la monnaie de l’Internet. A ce jour il est prématuré de transposer dans l’univers du web les concepts politiques territoriaux. Mais Bitcoin a une langue, qui est évidemment l’américain, même si sa devise (vires in numeris) est latine, ce qui est d’ailleurs typiquement américain ! Ce que l’on peut localiser dans notre espace à nous (sur le globe, pour faire simple) ce sont seulement ses points de contact (les exchanges, où le dollar intervient dix fois plus que l’euro semble-t-il) et les points d’appui de l’univers bitcoin dans notre univers physique. A cet égard on pourrait suggérer que Bitcoin est américain à proportion du nombre de nœuds situés aux USA (40%), ou bien majoritairement chinois car le hashrate pour sécuriser le protocole est majoritairement effectué dans les fermes de minage chinoises… Cela donne une « géographie politique » du Bitcoin. Mais la crise actuelle autour du fork XT montre que la politique du bitcoin est encore balbutiante. Voici donc quelques éléments d’état-civil, tel qu’on pourrait le tracer en famille, devant des gens qui ne sont pas coutumiers de la chose ou familiers des meet-ups. Il reste à pouvoir donner une représentation de Bitcoin. J’essayerai dans mon prochain billet.
Is social upheaval good for bitcoin? I asked Nick Szabo. [by Elaine Ou]
Source: https://elaineou.com/2020/06/03/is-social-upheaval-good-for-bitcoin/ Is social upheaval good for bitcoin? I asked Nick Szabo. Note: This is the second in a series of questions. See Also: Could Cypherpunks have done cool stuff without in-person interactions? A collapse in societal trust will generally increase demand for trust-minimized assets like gold and Bitcoin. People may come to realize that the trusted third parties they were relying on are not as reliable as expected. For example, people are learning the hard way that police have no legal duty to protect you. Banks, exchanges, and custodial wallets are also security holes. You and your account are just bits to these operators, who will freeze or seize your assets when political winds shift strongly enough against you. Bitcoin has what I call “deep safety”, in that it’s secure against legal and political threats. As opposed to an asset like Treasury bonds, which avoids volatility risk while being vulnerable to everything else. A situation that creates legal and political instability might be good for Bitcoin, but will be bad for the world in general. Personally, I would rather not have societal collapse, even if it is good for Bitcoin. Only a sociopath would be in favor of massive death and destruction for the sole purpose of making a number go up.
Fifty Years of Cypherpunk: History, Personalities, And Spread of its ideas
In this review, we tell how the ideas of cypherpunk were born, how they influenced cryptocurrencies, and modern technologies, who formed the basis and why its popularity these days has grown again.
From the early days to today: the chronology of key events of the cypherpunk
In the early 1970s,James Ellis of the UK Government Communications Center put forward the concept of public-key cryptography. In the early 1980s, small groups of hackers, mathematicians and cryptographers began working on the realization of this idea. One of them was an American cryptographer, Ph.D. David Chaum, who is sometimes called the godfather of cypherpunk. This new culture has proclaimed computer technology as a means of destroying state power and centralized management systems.Key figure among the cypherpunk of the 80s — Intel specialist Timothy C. May. His dream was to create a global system that allows anonymous exchange of information. He created the concept of the BlackNet system. In September 1988, May wrote The Crypto-Anarchist Manifesto: people themselves, without politicians, manage their lives, use cryptography, use digital currencies, and other decentralized tools.In 1989,David Chaum founded DigiCash an eCash digital money system with its CyberBucks and with the blind digital signature technology.Since 1992, Timothy May, John Gilmore (Electronic Frontier Foundation), and Eric Hughes (University of California) have begun holding secret meetings and regular PGP-encrypted mailing through anonymous remailer servers. And finally, in 1993 Eric Hughes published a fundamental document of the movement — А Cypherpunk's Manifesto. The importance of confidentiality, anonymous transactions, cryptographic protection — all these ideas were subsequently implemented in cryptocurrencies.The term "cypherpunk" was first used by hacker and programmer Jude Milhon to a group of crypto-anarchists.In 1995,Julian Assange, the creator of WikiLeaks, published his first post in cypherpunk mailing.In 1996,John Young and Deborah Natsios created the Cryptome, which published data related to security, privacy, freedom, cryptography. It is here that subsequently will be published data from the famous Edward Snowden.In 1997, cryptographerDr. Adam Back (you know him as CEO of Blockstream) created Hashcash, a distributed anti-spam mechanism.In 1998, computer engineer Wei Dai published two concepts for creating a b-money digital payment system:
Each member of the system has a copy of the system database with user funds balances (this idea found itself in Bitcoin).
Distributed base, but not everyone has a copy. To maintain the integrity of participants, deposits, fines, and incentives are provided. This was later implemented in the Proof-of-Stake consensus algorithm.
In April 2001,Bram Cohen developed the BitTorrent protocol and application.In 2002,Paul Syverson, Roger Dingledine and Nick Mathewson presented the alpha version of the anonymity network named TOR Project.In 2004, cypherpunk Hal Finney created the Reusable Proof of Work (RPoW) algorithm. It was based on Adam Back's Hashcash but its drawback was centralization.In 2005, cryptographer Nick Szabo, who developed the concept of smart contracts in the 1990s, announced the creation of Bit Gold — a digital collectible and investment item.In October 2008, legendary Satoshi Nakamoto created themanifesto“Bitcoin: A Peer-to-Peer Electronic Cash System”, which refers to the works of the cypherpunk classics Adam Back and Wei Dai.In 2011,Ross William Ulbricht aka Dread Pirate Roberts created the Silk Road, the first major market for illegal goods and services on the darknet.In 2016,Julian Assange released the book "Cypherpunks: Freedom and the future of the Internet."At the beginning of 2018,Pavel Durov, the creator of Telegram, announced the launch of the TON multi-blockchain platform and mentioned his plans to launch TON ICO.In 2019, the Tor Project introduced an open anti-censorship group.
Plenty of services, products, and technologies were inspired by cypherpunk: Cryptocurrencies, HD (Hierarchical Deterministic) crypto wallets, Coin Mixers, ECDHM addresses, Privacy Coins. The ideas of distribution and anonymity were also implemented in the torrents and VPN. You can see the embodiment of cybersecurity ideas in the electronic signatures and protected messengers (Telegram, Signal, and many others).Why there were so many talks about cypherpunk this spring?In April 2020, Reddit users suggested that the letter from the famous cypherpunks mailing dated September 19, 1999, was written by Satoshi Nakamoto himself (or someone close to him). This letter is about the functioning of ecash. Anonymous (supposed Satoshi) talks about the "public double-spending database" and Wei Dai's b-money as a possible foundation for ecash.In addition, researchers of the mystery "Who is Satoshi Nakamoto?" periodically make some noise and discover the next "secret" about one or another legendary cypherpunks. So, in May 2020, Adam Back wrote in response to videos and new hype discussions that, despite some coincidences, he is not Satoshi.Other heroes of the scene are not idle too: in April 2020, David Chaum received $9.7 million during the presale of the confidential coin xx, created to encourage venture investors.
As you can see from the Satoshi Nakamoto's mentions and from the stories of DigiCash, Hashcash, RPoW, Bit Gold, the movement of cypherpunk influenced a lot the emergence of cryptocurrencies. As governments and corporations restrict freedom and interfere with confidentiality, cypherpunk ideas will periodically rise in popularity. And this confrontation will not end in the coming decades.
Transcript of Bitcoin ABC’s Amaury Sechet presenting at the Bitcoin Cash City conference on September 5th, 2019
I tried my best to be as accurate as possible, but if there are any errors, please let me know so I can fix. I believe this talk is important for all Bitcoin Cash supporters, and I wanted to provide it in written form so people can read it as well as watch the video:https://www.youtube.com/watch?v=uOv0nmOe1_oFor me, this was the first time I felt like I understood the issues Amaury's been trying to communicate, and I hope that reading this presentation might help others understand as well. Bitcoin Cash’s Culture “Okay. Hello? Can you hear me? The microphone is good, yeah? Ok, so after that introduction, I’m going to do the only thing that I can do now, which is disappoint you, because well, that was quite something. So usually I make technical talks and this time it’s going to be a bit different. I’m going to talk about culture in the Bitcoin Cash ecosystem. So first let’s talk about culture, like what is it? It’s ‘the social behaviors and norms found in human society.’ So we as the Bitcoin Cash community, we are a human society, or at least we look like it. You’re all humans as far as I know, and we have social behaviors and norms, and those social behaviors and norms have a huge impact on the project. And the reason why I want to focus on that point very specifically is because we have better fundamentals and we have a better product and we are more useful than most other cryptos out there. And I think that’s a true statement, and I think this is a testimony of the success of BCH. But also, we are only just 3% of BTC’s value. So clearly there is something that we are not doing right, and clearly it’s not fundamental, it’s not product, it’s not usefulness. It’s something else, and I think this can be found somewhat in our culture. So I have this quote here, from Naval Ravikant. I don’t know if you guys know him but he’s a fairly well known speaker and thinker, and he said, “Never trust anyone who does not annoy you from time to time, because it means that they are only telling you what you want to hear.” And so today I am going to annoy you a bit, in addition to disappointing you, so yeah, it’s going to be very bad, but I feel like we kind of need to do it. So there are two points, mainly, that I think our culture is not doing the right thing. And those are gonna be infrastructure and game theory. And so I’m going to talk a little bit about infrastructure and game theory. Right, so, I think there are a few misconceptions by people that are not used to working in software infrastructure in general, but basically, it works like any other kind of infrastructure. So basically all kinds of infrastructure decay, and we are under the assumption that technology always gets better and better and better and never decays. But in terms of that, it actually decays all the time, and we have just a bunch of engineers working at many many companies that keep working at making it better and fighting that decay. I’m going to take a few examples, alright. Right now if you want to buy a cathode ray tube television or monitor for your computer (I’m not sure why you want to do that because we have better stuff now), but if you want to buy that, it’s actually very difficult now. There are very little manufacturers that even know how to build them. We almost forgot as a human society how to build those stuff. Because, well, there was not as high of a demand for them as there was before, and therefore nobody really worked on maintaining the knowledge or the know how, and the factories, none of that which are required to build those stuff, and therefore we don’t build them. And this is the same for vinyl discs, right? You can buy vinyl disk today if you want, but it’s actually more expensive than it used to be twenty years ago. We used to have space shuttles. Both Russia and US used to have space shuttles. And now only the US have space shuttles, and now nobody has space shuttles anymore. And there is an even better counter example to that. It’s that the US, right now, is refining Uranium for nuclear weapons. Like on a regular basis there are people working on that problem. Except that the US doesn’t need any new uranium to make nuclear weapons because they are decommissioning the weapons that are too old and can reuse that uranium to build the new weapon that they are building. The demand for that is actually zero, and still there are people making it and they are just basically making it and storing it forever, and it’s never used. So why is the US spending money on that? Well you would say governments are usually pretty good at spending money on stuff that are not very useful, but in that case there is a very good reason. And the good reason is that they don’t want to forget how it’s done. Because maybe one day it’s going to be useful. And acquiring the whole knowledge of working with uranium and making enriched uranium, refining uranium, it’s not obvious. It’s a very complicated process. It involves very advanced engineering and physics, a lot of that, and keeping people working on that problem ensures that knowledge is kept through time. If you don’t do that, those people are going to retire and nobody will know how to do it. Right. So in addition to decaying infrastructure from time to time, we can have zero days in software, meaning problems in the software that are not now exploited live on the network. We can have denial of service attack, we can have various failures on the network, or whatever else, so just like any other infrastructure we need people that essentially take care of the problem and fight the decay constantly doing maintenance and also be ready to intervene whenever there is some issue. And that means that even if there is no new work to be done, you want to have a large enough group of people that are working on that everyday just making it all nice and shiny so that when something bad happens, you have people that understand how the system works. So even if for nothing else, you want a large enough set of people working on infrastructure for that to be possible. So we’re not quite there yet, and we’re very reliant on BTC. Because the software that we’re relying on to run the network is actually a fork to the BTC codebase. And this is not specific to Bitcoin Cash. This is also true for Litecoin, and Dash, and Zcash and whatever. There are many many crypotos that are just a fork of the Bitcoin codebase. And all those crypos they actually are reliant on BTC to do some maintenance work because they have smaller teams working on the infrastructure. And as a result any rational market cannot price those other currencies higher than BTC. It would just not make sense anymore. If BTC were to disappear, or were to fail on the market, and this problem is not addressed, then all those other currencies are going to fail with it. Right? And you know that may not be what we want, but that’s kind of like where we are right now. So if we want to go to the next level, maybe become number one in that market, we need to fix that problem because it’s not going to happen without it. So I was mentioning the 3% number before, and it’s always very difficult to know what all the parameters are that goes into that number, but one of them is that. Just that alone, I’m sure that we are going to have a lower value than BTC always as long as we don’t fix that problem. Okay, how do we fix that problem? What are the elements we have that prevent us from fixing that problem? Well, first we need people with very specific skill sets. And the people that have experience in those skill sets, there are not that many of them because there are not that many places where you can work on systems involving hundreds of millions, if not billions of users, that do like millions of transactions per second, that have systems that have hundreds of gigabytes per second of throughput, this kind of stuff. There are just not that many companies in the world that operate on that scale. And as a result, the number of people that have the experience of working on that scale is also pretty much limited to the people coming out of those companies. So we need to make sure that we are able to attract those people. And we have another problem that I talked about with Justin Bons a bit yesterday, that we don’t want to leave all that to be fixed by a third party. It may seem nice, you know, so okay, I have a big company making good money, I’m gonna pay people working on the infrastructure for everybody. I’m gonna hire some old-time cypherpunk that became famous because he made a t-shirt about ERISA and i’m going to use that to promote my company and hire a bunch of developers and take care of the infrastructure for everybody. It’s all good people, we are very competent. And indeed they are very competent, but they don’t have your best interest in mind, they have their best interest in mind. And so they should, right? It’s not evil to have your own interest in mind, but you’ve got to remember that if you delegate that to others, they have their best interest in mind, they don’t have yours. So it’s very important that you have different actors that have different interests that get involved into that game of maintaining the infrastructure. So they can keep each other in check. And if you don’t quite understand the value proposition for you as a business who builds on top of BCH, the best way to explain that to whoever is doing the financials of your company is as an insurance policy. The point of the insurance on the building where your company is, or on the servers, is so that if everything burns down, you can get money to get your business started and don’t go under. Well this is the same thing. Your business relies on some infrastructure, and if this infrastructure ends up going down, disappearing, or being taken in a direction that doesn’t fit your business, your business is toast. And so you want to have an insurance policy there that insures that the pieces that you’re relying on are going to be there for you when you need them. Alright let’s take an example. In this example, I purposefully did not put any name because I don’t want to blame people. I want to use this as an example of a mistake that were made. I want you to understand that many other people have done many similar mistakes in that space, and so if all you take from what I’m saying here is like those people are bad and you should blame them, this is like completely the wrong stuff. But I also think it’s useful to have a real life example. So on September 1st, at the beginning of the week, we had a wave of spam that was broadcasted on the network. Someone made like a bunch of transactions, and those were very visibly transactions that were not there to actually do transactions, they were there just to create a bunch of load on the network and try to disturb its good behavior. And it turned out that most miners were producing blocks from 2 to 8 megabytes, while typical market demand is below half a megabyte, typically, and everything else above that was just spam, essentially. And if you ask any people that have experience in capacity planning, they are going to tell you that those limits are appropriate. The reason why, and the alternative to raising those limits that you can use to mitigate those side effects are a bit complicated and they would require a talk in and of itself to go into, so I’m going to just use an argument from authority here, but trust me, I know what I’m talking about here, and this is just like raising those limits is just not the solution. But some pool decided to increase that soft cap to 32 megs. And this has two main consequences that I want to dig in to explain what is not the right solution. And the first one is that we have businesses that are building on BCH today. And those businesses are the ones that are providing value, they are the ones making our network valuable. Right? So we need to treat those people as first class citizens. We need to attract and value them as much as we can. And those people, they find themselves in the position where they can either dedicate their resources and their attention and their time to make their service better and more valuable for users, or maybe expand their service to more countries, to more markets, to whatever, they can do a lot of stuff, or they can spend their time and resources to make sure the system works not when you have like 10x the usual load, but also 100x the usual load. And this is something that is not providing value to them, this is something that is not providing value to us, and I would even argue that this is something that is providing negative value. Because if those people don’t improve their service, or build new services, or expand their service to new markets, what’s going to happen is that we’re not going to do 100x. 100x happens because people provide useful services and people start using it. And if we distract those people so that they need to do random stuff that has nothing to do with their business, then we’re never going to do 100x. And so having a soft cap that is way way way above what is the usual market demand (32 megs is almost a hundred times what is the market demand for it), it’s actually a denial of service attack that you open for anyone that is building on the chain. We were talking before, like yesterday we were asking about how do we attract developers, and one of the important stuff is that we need to value that over valuing something else. And when we take this kind of move, the signal that we send to the community, to the people working on that, is that people yelling very loudly on social media, their opinion is more valued than your work to make a useful service building on BCH. This is an extremely bad signal to send. So we don’t want to send those kind of signals anymore. That’s the first order effect, but there’s a second order effect, and the second order effect is to scale we need people with experience in capacity planning. And as it turns out big companies like Google, and Facebook, and Amazon pay good money, they pay several 100k a year to people to do that work of capacity planning. And they wouldn’t be doing that if they just had to listen to people yelling on social media to find the answer. Right? It’s much cheaper to do the simple option, except the simple option is not very good because this is a very complex engineering problem. And not everybody is like a very competent engineer in that domain specifically. So put yourself in the shoes of some engineers who have skills in that particular area. They see that happening, and what do they see? The first thing that they see is that if they join that space, they’re going to have some level of competence, some level of skill, and it’s going to be ignored by the leaders in that space, and ignoring their skills is not the best way to value it as it turns out. And so because of that, they are less likely to join it. But there is a certain thing that they’re going to see. And that is that because they are ignored, some shit is going to happen, some stuff are going to break, some attacks are going to be made, and who is going to be called to deal with that? Well, it’s them. Right? So not only are they going to be not valued for their stuff, the fact that they are not valued for their stuff is going to put them in a situation where they have to put out a bunch of fires that they would have known to avoid in the first place. So that’s an extremely bad value proposition for them to go work for us. And if we’re going to be a world scale currency, then we need to attract those kinds of people. And so we need to have a better value proposition and a better signaling that we send to them. Alright, so that’s the end of the first infrastructure stuff. Now I want to talk about game theory a bit, and specifically, Schelling points. So what is a Schelling point? A Schelling point is something that we can agree on without especially talking together. And there are a bunch of Schelling points that exist already in the Bitcoin space. For instance we all follow the longest chain that have certain rules, right? And we don’t need to talk to each other. If I’m getting my wallet and I have some amount of money and I go to any one of you here and you check your wallet and you have that amount of money and those two amounts agree. We never talk to each other to come to any kind of agreement about how much each of us have in terms of money. We just know. Why? Because we have a Schelling point. We have a way to decide that without really communicating. So that’s the longest chain, but also all the consensus rules we have are Schelling points. So for instance, we accept blocks up to a certain size, and we reject blocks that are bigger than that. We don’t constantly talk to each other like, ‘Oh by the way do you accept 2 mb blocks?’ ‘Yeah I do.’ ‘Do you accept like 3 mb blocks? And tomorrow will you do that?’ We’re not doing this as different actors in the space, constantly worrying each other. We just know there is a block size that is a consensus rule that is agreed upon by almost everybody, and that’s a consensus rule. And all the other consensus rules are effectively changing Schelling points. And our role as a community is to create valuable Schelling points. Right? You want to have a set of rules that provide as much value as possible for different actors in the ecosystem. Because this is how we win. And there are two parts to that. Even though sometimes we look and it’s just one thing, but there are actually two things. The first one is that we need to decide what is a valuable Schelling point. And I think we are pretty good at this. And this is why we have a lot of utility and we have a very strong fundamental development. We are very good at choosing what is a good Schelling point. We are very bad at actually creating it and making it strong. So I’m going to talk about that. How do you create a new Schelling point. For instance, there was a block size, and we wanted a new block size. So we need to create a new Schelling point. How do you create a new Schelling point that is very strong? You need a commitment strategy. That’s what it boils down to. And the typical example that is used when discussing Schelling points is nuclear warfare. So think about that a bit. You have two countries that both have nuclear weapons. And one country sends a nuke on the other country. Destroys some city, whatever, it’s bad. When you look at it from a purely rational perspective, you will assume that people are very angry, and that they want to retaliate, right? But if you put that aside, there is actually no benefit to retaliating. It’s not going to rebuild the city, it’s not going to make them money, it’s not going to give them resources to rebuild it, it’s not going to make new friends. Usually not. It’s just going to destroy some stuff in the other guy that would otherwise not change anything because the other guys already did the damage to us. So if you want nuclear warfare to actually prevent war like we’ve seen mostly happening in the past few decades with the mutually assured destruction theory, you need each of those countries to have a very credible commitment strategy, which is if you nuke me, I will nuke you, and I’m committing to that decision no matter what. I don’t care if it’s good or bad for me, if you nuke me, I will nuke you. And if you can commit to that strongly enough so that it’s credible for other people, it’s most likely that they are not going to nuke you in the first place because they don’t want to be nuked. And it’s capital to understand that this commitment strategy, it’s actually the most important part of it. It’s not the nuke, it’s not any of it, it’s the commitment strategy. You have the right commitment strategy, you can have all the nuke that you want, it’s completely useless, because you are not deterring anyone from attacking you. There are many other examples, like private property. It’s something usually you’re going to be willing to put a little bit of effort to defend, and the effort is usually way higher than the value of the property itself. Because this is your house, this is your car, this is your whatever, and you’re pretty committed to it, and therefore you create a Schelling point over the fact that this is your house, this is your car, this is your whatever. People are willing to use violence and whatever to defend their property. This is effectively, even if you don’t do it yourself, this is what happens when you call the cops, right? The cops are like you stop violating that property or we’re going to use violence against you. So people are willing to use a very disproportionate response even in comparison to the value of the property. And this is what is creating the Schelling point that allows private property to exist. This is the commitment strategy. And so the longest chain is a very simple example. You have miners and what miners do when they create a new block, essentially they move from one Schelling point when a bunch of people have some amount of money, to a new Schelling point where some money has moved, and we need to agree to the new Schelling point. And what they do is that they commit a certain amount of resources to it via proof of work. And this is how they get us to pay attention to the new Schelling point. And so UASF is also a very good example of that where people were like we activate segwit no matter what, like, if it doesn’t pan out, we just like busted our whole chain and we are dead. Right? This is like the ultimate commitment strategy, as far as computer stuff is involved. It’s not like they actually died or anything, but as far as you can go in the computer space, this is very strong commitment strategy. So let me take an example that is fairly inconsequential in its consequences, but I think explains very well. The initial BCH ticker was BCC. I don’t know if people remember that. Personally I remember reading about it. It was probably when we created it with Jonald and a few other people. And so I personally was for XBC, but I went with BCC, and most people wanted BCC right? It doesn’t matter. But it turned out that Bitfinex had some Ponzi scheme already listed as BCC. It was Bitconnect, if you remember. Carlos Matos, you know, great guy, but Bitconnect was not exactly the best stuff ever, it was a Ponzi scheme. And so as a result Bitifnex decided to list Bitcoin Cash as BCH instead of BCC, and then the ball started rolling and now everybody uses BCH instead of BCC. So it’s not all that bad. The consequences are not that very bad. And I know that many of you are thinking that right now. Why is this guy bugging us about this? We don’t care if it’s BCC or BCH. And if you’re doing that, you are exactly proving my point. Because … there are people working for Bitcoin.com here right? Yeah, so Bitcoin.com is launching an exchange, or just has launched, it’s either out right now or it’s going to be out very soon. Well think about that. Make this thought experiment for yourself. Imagine that Bitcoin.com lists some Ponzi scheme as BTC, and then they decide to list Bitcoin as BTN. What do you think would be the reaction of the Bitcoin Core supporter? Would they be like, you know what? we don’t want to be confused with some Ponzi scheme so we’re going to change everything for BTN. No, they would torch down Roger Ver even more than they do now, they would torch down Bitcoin.com. They would insult anyone that would suggest that this was a good idea to go there. They would say that everyone that uses the stuff that is BTC that it’s a ponzi scheme, and that it’s garbage, and that if you even talk about it you are the scum of the earth. Right? They would be extremely committed to whatever they have. And I think this is a lesson that we need to learn from them. Because even though it’s a ticker, it’s not that important, it’s that attitude that you need to be committed to that stuff if you want to create a strong Schelling point, that allows them to have a strong Schelling point, and that does not allow us to have that strong of a Schelling point. Okay, so yesterday we had the talk by Justin Bons from Cyber Capital, and one of the first things he said in his talk, is that his company has a very strong position in BCH. And so that changed the whole tone of the talk. You gotta take him seriously because his money is where his mouth is. You know that he is not coming on the stage and telling you random stuff that comes from his mind or tries to get you to do something that he doesn’t try himself. That doesn’t mean he’s right. Maybe he’s wrong, but if he’s wrong, he’s going bankrupt. And you know just for that reason, maybe it’s worth it to listen to it a bit more than some random person saying random stuff when they have no skin in the game. And it makes him more of a leader in the space. Okay we have some perception in this space that we have a bunch of leaders, but many of them don’t have skin in the game. And it is very important that they do. So when there is some perceived weakness from BCH, if you act as an investor, you are going to diversify. If you act as a leader, you are going to fix that weakness. Right? And so, leaders, it’s not like you can come here and decide well, I’m a leader now. Leaders are leaders because people follow them. It seems fairly obvious, but … and you are the people following the leaders, and I am as well. We decide to follow the opinion of some people more than the opinion of others. And those are the defacto leaders of our community. And we need to make sure that those leaders that we have like Justin Bons, and make sure that they have a strong commitment to whatever they are leading you to, because otherwise you end up in this situation: https://preview.redd.it/r23dptfobcl31.jpg?width=500&format=pjpg&auto=webp&s=750fbd0f1dc0122d2791accc59f45a235a522444 Where you got a leader, he’s getting you to go somewhere, he has some goal, he has some whatever. In this case he is not that happy with the British people. But he’s like give me freedom or give me death, and he’s going to fight the British, but at the same time he’s like you know what? Maybe this shit isn’t gonna pan out, you gotta make sure you have your backup plan together, you have your stash of British pound here. You know, many of us are going to die, but that’s a sacrifice I’m willing to make. That’s not the leader that you want. I’m going to go to two more examples and then we’re going to be done with it. So one of them is Segwit 2x. Segwit 2x came with a time where some people wanted to do UASF. And UASF was essentially people that set up a modified version of their Bitcoin node that would activate segwit on August 1, no matter what. Right? No matter what miners do, no matter what other people do, it’s going to activate segwit. And either I’m going to be on the other fork, or I’m going to be alone and bust. Well, the alternative proposal was segwit 2x. Where people would activate segwit and then increase the size of the block. And what happened was that one of the sides had a very strong commitment strategy, and the other side, instead of choosing a proportional commitment strategy, what they did was that they modified the activation of segwit 2x to be compatible with UASF. And in doing so they both validate the commitment strategy done by the opposite side, and they weaken their own commitment strategy. So if you look at that, and you understand game theory a bit, you know what’s going to happen. Like the fight hasn’t even started and UASF has already won. And when I saw that happening, it was a very important development to me, because I have some experience in game theory, a lot of that, so I understood what was happening, and this is what led me to commit to BCH, which was BCC at the time, 100%. Because I knew segwit 2x was toast, even though it had not even started, because even though they had very strong cards, they are not playing their cards right, and if you don’t play your cards right, it doesn’t matter how strong your cards are. Okay, the second one is emergent consensus. And the reason I wanted to put those two examples here is because I think those are the two main examples that lead to the fact that BTC have small blocks and we have big blocks and we’re a minority chain. Those are like the two biggest opportunities we had to have big blocks on BTC and we blew both of them for the exact same reason. So emergent consensus is like an interesting technology that allows you to trade your bigger block without splitting the network. Essentially, if someone starts producing blocks that are bigger than … (video skips) ,,, The network seems to be following the chain that has larger blocks, eventually they’re going to fall back on that chain, and that’s a very clevery mechanism that allows you to make the consensus rules softer in a way, right? When everybody has the same consensus rules, it still remains enforced, but if a majority of people want to move to a new point, they can do so by bringing others with them without creating a fork. That is a very good activation mechanism for changing the block size, for instance, or it can be used to activate other stuff. There is a problem, though. This mechanism isn’t able to set a new point. It’s a way to activate a new Schelling point when you have one, but it provides no way to decide when and where or to what value or to anything to where we are going. So this whole strategy lacks the commitment aspect of it. And because it lacks the commitment aspect of it, it was unable to activate properly. It was good, but it was not sufficient in itself. It needs to be combined with a commitment strategy. And especially on that one there are some researchers that wrote a whole paper (https://eprint.iacr.org/2017/686.pdf) unpacking the whole game theory that essentially come to that conclusion that it’s not going to set a new size limit because it lacked the commitment aspect of it. But they go on like they model all the mathematics of it, they give you all the numbers, the probability, and the different scenarios that are possible. It’s a very interesting paper. If you want to see, like, because I’m kind of explaining the game theory from a hundred mile perspective, but actually you can deep dive into it and if you want to know the details, they are in there. People are doing that. This is an actual branch of mathematics. Alright, okay so conclusion. We must avoid to weaken our commitment strategy. And that means that we need to work in a way where first there is decentralization happening. Everybody has ideas, and we fight over them, we decide where we want to go, we put them on the roadmap, and once it’s on the roadmap, we need to commit to it. Because when people want to go like, ‘Oh this is decentralized’ and we do random stuff after that, we actually end up with decentralization, not decentralization in a cooperative manner, but like in an atomization manner. You get like all the atoms everywhere, we explode, we destroy ourself. And we must require a leader to have skin in the game, so that we make sure we have good leaders. I have a little schema to explain that. We need to have negotiations between different parties, and because there are no bugs, the negotiation can last for a long time and be tumultuous and everything, and that’s fine, that’s what decentralization is looking like at that stage, and that’s great and that makes the system strong. But then once we made a decision, we got to commit to it to create a new Schelling point. Because if we don’t, the new Schelling point is very weak, and we get decentralization in the form of disintegration. And I think we have not been very good to balance the two. Essentially what I would like for us to do going forward is encouraging as much as possible decentralization in the first form. But consider people who participate in the second form, as hostile to BCH, because their behavior is damaging to whatever we are doing. And they are often gonna tell you why we can’t do that because it’s permissionless and decentralized, and they are right, this is permissionless and decentralized, and they can do that. We don’t have to take it seriously. We can show them the door. And not a single person can do that by themself, but as a group, we can develop a culture where it’s the norm to do that. And we have to do that.”
The Intellectual Foundation of Bitcoin比特幣的智識基礎. By Chapman Chen, HKBNews
https://preview.redd.it/w6v3l8n3zxu41.jpg?width=2551&format=pjpg&auto=webp&s=fb0338a36a1a321d3781f43ff5eb6929d8b92edc Summary: Bitcoin was invented by the anonymous Satoshi Nakamoto as recently as 2008, but it is backed up by a rich intellectual foundation. For instance, The 1776 First Amendment separates church and state, and contemporary American liberation psychologist Nozomi Hayase (2020) argues that money and state should similarly be separated. Just as Isaac Newton’s study of alchemy gave rise to the international gold standard, so has the anonymous creator Satoshi Nakamoto's desire for a “modernized gold standard” given rise to Bitcoin. Indeed, Bloomberg's 2020 report confirms Bitcoin to be gold 2.0. Montesquieu (1774) asserted that laws that secure inalienable rights can only be found in Nature, and the natural laws employed in Bitcoin include its consensus algorithm and the three natural laws of economics (self-interest, competition, and supply and demand). J.S. Mill (1859) preferred free markets to those controlled by governments. Ludwig von Mises (1951) argued against the hazards of fiat currency, urging for a return to the gold standard. Friedrich Hayek (1984) suggested people to invent a sly way to take money back from the hands of the government. Milton Friedman (1994) called for FED to be replaced by an automatic system and predicted the coming of a reliable e-cash. James Buchanan (1988) advocated a monetary constitution to constrain the governmental power of money creation. Tim May (1997) the cypherpunk proclaimed that restricting digital cash impinges on free speech, and envisioned a stateless digital form of money that is uncensorable. The Tofflers (2006) pictured a non-monetary economy. In 2016, UCLA Professor of Finance Bhagwan Chowdhry even nominated Satoshi for a Nobel Prize. Full Text: Separation between money and state The 1791 First Amendment to the U.S. Constitution enshrines free speech and separates church and state, but not money and state. "Under the First Amendment, individuals’ right to create, choose their own money and transact freely was not recognized as a part of freedom of expression that needs to be protected," Japanese-American liberation psychologist Nozomi Hayase (2020) points out (1). The government, banks and corporations collude together to encroach upon people's liberties by metamorphosing their inalienable rights into a permissioned from of legal rights. Fiat currencies function as a medium of manipulation, indulging big business to generate market monopolies. "Freedom of expression has become further stifled through economic censorship and financial blockage enacted by payment processing companies like Visa and MasterCard," to borrow Hayase's (2020) words. Satoshi is a Modern Newton Although most famous for discovering the law of gravity, Isaac Newton was also a practising alchemist. He never managed to turn lead into gold, but he did find a way to transmute silver into gold. In 1717, Newton announced in a report that, based on his studies, one gold guinea coin weighed 21 shillings. Just as Isaac Newton’s study of alchemy gave rise to the international gold standard, so has the desire for a “modernized gold standard” given rise to Bitcoin. "In a way, Satoshi is a modern Newton. They both believed trust is best placed in the unchangeable facets of our economy. Beneath this belief is the assumption that each individual is their own best master," as put by Jon Creasy (2019) (2). J.S. Mill: free markets preferable to those controlled by governments John Stuart Mill (1806-1873) the great English philosopher would be a Bitcoiner were he still around today. In On Liberty (1859), Mill concludes that free markets are preferable to those controlled by governments. He argues that economies function best when left to their own devices. Therefore, government intervention, though theoretically permissible, would be counterproductive. Bitcoin is precisely decentralized or uncontrolled by the government, unconfiscatable, permissonless, and disinflationary. Bitcoin regulates itself spontaneously via the ordinary operations of the system. "Rules are enforced without applying any external pressure," in Hayase's (2020) words. Ludwig von Mises (1958): Liberty is always Freedom from the Government In The Free Market and its Enemies, theoretical Austrian School economist Ludwig von Mises (1951) argues against the hazards of fiat currency, urging for a return to the gold standard. “A fiat money system cannot go on forever and must one day come to an end,” Von Mises states. The solution is a return to the gold standard, "the only standard which makes the determination of the purchasing power of money independent of the changing ideas of political parties, governments, and pressure groups" under present conditions. Interestingly, this is also one of the key structural attributes of Bitcoin, the world’s first, global, peer-to-peer, decentralized value transfer network. Actually, Bloomberg's 2020 report on Bitcoin confirms that it is gold 2.0. (3) Von Mises prefers the price of gold to be determined according to the contemporaneous market conditions. The bitcoin price is, of course, determined across the various global online exchanges, in real-time. There is no central authority setting a spot price for gold after the which the market value is settled on among the traders during the day. Hayek: Monopoly on Currency should End Austrian-British Nobel laureate Friedrich Hayek’s theory in his 1976 work, Denationalization of Money, was that not only would the currency monopoly be taken away from the government, but that the monopoly on currency itself should end with multiple alternative currencies competing for acceptance by consumers, in order "to prevent the bouts of acute inflation and deflation which have played the world for the past 60 years." He forcefully argues that if there is no free competition between different currencies within any nation, then there will be no free market. Bitcoin is, again, decentralized, and many other cryptocurrencies have tried to compete with it, though in vain. In a recently rediscovered video clip from 1984, Hayek actually suggested people to invent a cunning way to take money out of the hands of the government:- “I don’t believe we shall ever have a good money again before we take the thing out of the hands of government, that is, we can’t take them violently out of the hands of government, all we can do is by some sly roundabout way introduce something they can’t stop” (4). Reviewing those words 36 years hence and it is difficult not to interpret them in the light of Bitcoin. Milton Friedman Called for FED to be Replaced by an Automatic System Nobel laureate economist Milton Friedman (1994) was critical of the Federal Reserve due to its poor performance and felt it should be abolished (5). Friedman (1999) believed that the Federal Reserve System should ultimately be replaced with a computer program, which makes us think of the computer code governing Bitcoin (6).[\](https://en.wikipedia.org/wiki/Criticism_of_the_Federal_Reserve#cite_note-:2-12) He (1970) favored a system that would automatically buy and sell securities in response to changes in the money supply. This, he argued, would put a lid on inflation, setting spending and investment decisions on a surer footing (7). Bitcoin is exactly disflationary as its maximum possible supply is 21 million and its block reward or production rate is halved every four years. Friedman passed away before the coming of bitcoin, but he lived long enough to see the Internet’s spectacular rise throughout the 1990s. “I think that the Internet is going to be one of the major forces for reducing the role of government," said Friedman in a 1999 interview with NTU/F. On the same occasion, he sort of predicted the emergence of Bitcoin, "The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B, without A knowing B or B knowing A." (8) “Of course, Friedman didn’t predict the block chain,” summed up American libertarian economist Jeffery Tucker (2014). “But he was hoping for a trustless system. He saw the need.” (9). Bitcoin Computer Code as Constitution in the Buchananian Sense American economist cum Nobel laureate James Buchanan (1988) advocates constitutional constraints on the governmental power to create money (10). Buchanan distinguishes a managed monetary system—a system “that embodies the instrumental use of price-level predictability as a norm of policy”—from an automatic monetary system, “which does not, at any stage, involve the absolute price level” (Buchanan 1962, 164–65). Leaning toward the latter, Buchanan argues that automatic systems are characterized by an organization “of the institutions of private decision-making in such a way that the desired monetary predictability will emerge spontaneously from the ordinary operations of the system” (Buchanan 1962, 164). Again, "Bitcoin regulates itself through the spontaneous force of nature, flourishing healthy price discovery and competition in the best interest of everyone" (Hayase 2020). Shruti Rajagopalan (2018) argues that the computer code governing how the sundry nodes/computers within the Bitcoin network interact with one another is a kind of monetary constitution in the Buchananian sense. One of Buchanan's greatest inputs is to differentiate the choice of rules from the choice within rule (Buchanan 1990). One may regard the Bitcoin code as a sort of constitution and "the Bitcoin network engaging in both the choice of rules and choice within rules" (Rajagopalan 2018) (11). Tim May: Restricting Digital Cash may Impinge on Free Speech Cypherpunks are activists who since the 1980s have advocated global use of strong cryptography and privacy-enhancing technologies as a route to social and political liberation. Tim May (Timothy C. May [1951-2018]), one of the influential cypherpunks published The Crypto Anarchist Manifesto in September 1992, which foretold the coming of Bitcoin (12). Cypherpunks began envisioning a stateless digital form of money that cannot be censored and their collaborative pursuit created a movement akin to the 18th Enlightenment. At The 7th Conference on Computers, Freedom, and Privacy, Burlingame, CA. in 1997, Tim May equated money with speech, and argued that restricting digital cash may impinge on free speech, for spending money is often a matter of communicating orders to others, to transfer funds, to release funds, etc. In fact, most financial instruments are contracts or orders, instead of physical specie or banknotes (13). Montesquieu: Laws that secure inalienable rightscan only be found in Nature In his influential work The Spirit of Laws (1748), Montesquieu wrote, “Laws ... are derived from the nature of things … Law, like mathematics, has its objective structure, which no arbitrary whim can alter". Similarly, once a block is added to the end of the Bitcoin blockchain, it is almost impossible to go back and alter the contents of the block, unless every single block after it on the blockchain is altered, too. Cypherpunks knew that whereas alienable rights that are bestowed by law can be deprived by legislation, inalienable rights are not to be created but can be discovered by reason. Thus, laws that secure inalienable rights cannot be created by humankind but can be found in nature. The natural laws employed in Bitcoin to enshrine the inalienable monetary right of every human being include its consensus algorithm, and the three natural laws of economics (self-interest, competition, and supply and demand) as identified by Adam Smith, father of modern economics. Regarding mathematics, bitcoin mining is performed by high-powered computers that solve complex computational math problems. When computers solve these complex math problems on the Bitcoin network, they produce new bitcoin. And by solving computational math problems, bitcoin miners make the Bitcoin payment network trustworthy and secure, by verifying its transaction information. Regarding economic laws, in accordance with the principle of game theory to generate fairness, miners take part in an open competition. Lining up self-interests of all in a network, with a vigilant balance of risk and rewards, rules are put in force sans the application of any exterior pressure. "Bitcoin regulates itself through the spontaneous force of nature, flourishing healthy price discovery and competition in the best interest of everyone," to borrow the words of Hayase (2020). A Non-monetary Economy as Visualized by the Tofflers In their book, Revolutionary Wealth (2006), futurists Alvin Toffler and his wife Heidi Toffler toy with the concept of a world sans money, raising a third kind of economic transaction that is neither one-on-one barter nor monetary exchange. In the end, they settle on the idea that the newer non-monetary economy will exist shoulder-to-shoulder with the monetary sector in the short term, although the latter may eventually be eclipsed by the former in the long run. What both the Tofflers' The Third Wave (1980) and Revolutionary Wealth bring into question is the very premise of monetary exchange. The vacuum left over by cash in such a non-monetary economy may be filled up by Bitcoin as a cryptocurrency. Satoshi Nakamoto Nominated for Nobel Prize by UCLA Finance Prof. UCLA Anderson School Professor of Finance Bhagwan Chowdhry nominated Satoshi Nakamoto for the 2016 Nobel Prize in Economics on the following grounds:- It is secure, relying on almost unbreakable cryptographic code, can be divided into millions of smaller sub-units, and can be transferred securely and nearly instantaneously from one person to any other person in the world with access to internet bypassing governments, central banks and financial intermediaries such as Visa, Mastercard, Paypal or commercial banks eliminating time delays and transactions costs.... Satoshi Nakamoto’s Bitcoin Protocol has spawned exciting innovations in the FinTech space by showing how many financial contracts — not just currencies — can be digitized, securely verified and stored, and transferred instantaneously from one party to another (14). Fb link: https://www.facebook.com/hongkongbilingualnews/posts/947121432392288?__tn__=-R Web link: https://www.hkbnews.net/post/the-intellectual-foundation-of-bitcoin%E6%AF%94%E7%89%B9%E5%B9%A3%E7%9A%84%E6%99%BA%E8%AD%98%E5%9F%BA%E7%A4%8E-by-chapman-chen-hkbnews Disclaimer: This article is neither an advertisement nor professional financial advice. End-notes
Hi everyone, It's been five months, and having just made my last PF donation to the Internet Archive, I figure it might be a good time to say farewell. I just want to thank everyone for supporting this project. Thank you for all the charity suggestions, many of which were funded. Thank you for all the positive messages and love sent my way. And also, thank you, the Bitcoin and cryptocurrency community, for turning a Sourceforge project into a $0.5T industry. I kind of miss the old times when bitcoin was a small community, and you could count the number of 'altcoins' with one hand. Finding someone else who even knows about bitcoin was incredibly rare, and exchanges were semi-automated or running on PHP. Every development since then makes Bitcoin stronger and better at solving the problems of the existing financial and monetary system. It's created a new generation of crypto early adopters, cypherpunks or technologists using cryptography to change the world; and now having the power and responsibility of capital. 5104 BTC was turned into $55 million for charities, from providing clean water, open mapping, to clinical trials of MDMA as treatment for PTSD. Thanks for following along with this experiment. I'm going to say goodbye now, but maybe there's room for dessert in a few years. If you're ever blessed with crypto fortune, consider supporting what you aspire our world to be. :) ♥, Pine
Bylls — the Canadian Bitcoin bill payment service by Bull Bitcoin — celebrates its 6th birthday
I sometimes find it hard to believe that it has already been 6 years since the public launch of Bylls on January 13 2014. What started out as a simple and humble “garage startup”, the world’s first Bitcoin bill payment service, evolved into so much more. Bylls eventually became the company that people know today as Bull Bitcoin, and it is from Bylls’ UASF advocacy that sprouted the Cyphernode open-source project. I also like to think of Bylls as a “bitcoin culture” institution that served as the vanguard of the Bitcoin Maximalist and Cypherpunk movements within the Bitcoin exchange and payments industry. Happy Birthday Bylls! 🎂
What is Bylls?
For those of you who don’t know about Bylls, here’s a short summary:
Bylls lets Bitcoin users pay any bill in Canada with Bitcoin. We offer a comprehensive list of nearly 9000 billers (credit cards, utilities, telcos, taxes, brokerage accounts, law firms, “joe the plumber”, etc.)
Bylls lets Bitcoin users pay anyone or any business in Canada with Bitcoin by adding them as a personal payee (rent, employees, suppliers, friends).
The recipient of the payment doesn’t need to do anything and doesn’t even need to know you are using Bitcoin, as long as they are on our biller list or the user has his banking details.
Bylls is available exclusively to residents of Canada and all the recipients must also be, exclusively, individuals or companies residing in Canada.
Mission: Building the software and financial infrastructure for the Bitcoin Standard.
Short history of world’s first Bitcoin bill payment service
Bylls was founded in 2013 by Eric Spano, a Montreal entrepreneur part of the original Bitcoin Embassy team. Eric, one of my earliest and most influential mentors, is a true Bitcoin OG. Check out his 2014 Bitcoin Ted Talk or his 2019 Podcast on Tales From the Crypt which describes in great detail the inception of Bylls. When Bylls was launched, I was Public Affairs Director at the Bitcoin Embassy, the world’s first physical Bitcoin hub (a 14,000 square feet building downtown Montreal). Bylls was effectively a one-man operation, with Eric doing pretty much everything himself. I wasn’t directly involved with the company, but Bylls was one of the startups in the Embassy’s incubator program, so I was helping out in various ways. My first “public appearance” in the Bitcoin industry was actually to man the Bylls booth at the Toronto Bitcoin Expo in 2014! In 2015, Eric was offered a huge career opportunity that he couldn’t accept without stepping down from running Bylls. It was to me an inconceivable tragedy for Bitcoin to let Bylls quitely close down. For the past 2 years, whenever somebody asked me “what can you do with Bitcoin?”, I would always reply “well, for starters, you can pay all your bills in Canada, even your taxes and your credit card”. What was I going to say now? I had just founded my company Satoshi Portal Inc. with the aim of developing a non-custodial Bitcoin exchange (which eventually became Bull Bitcoin). And so, I acquired Bylls from Eric and it immediately became the focus of all my energy. For the first year, our team consisted of only 2 people including our lead developer Arthur which is still working on Bylls features to this day. From the beginning until today, we are still 100% self-funded. We grew organically and slowly. My philosophy on entrepreneurship and startup scaling is articulated in this medium post.It has been an incredibly intense journey. I cannot think of a more challenging professional experience than being a startup founder and entrepreneur in the Bitcoin industry. The number of Bitcoin startups that have perished since is a stark reminder. Some of them sank quietly, but many went down in flames taking down their users with them. The fact that Bylls is still standing — without VC funding and with its reputation intact — is my proudest achievement. Over the past 4 years. we completely redesigned the software, continuously adding new features, but the core of the service remained the same. Most importantly, we added the ability for users to pay any individual or business in Canada by creating a personal biller from their bank details. Previously, they were limited to Bylls’ biller list of around 9000 billers. One of the defining moments in the history of Bylls was UASF. Bylls was one of the first Bitcoin companies to support BIP-148 for the activation of Segwit (second after Bitconic). Not only that, but we were the first to run a public BIP-148 block explorer and public UASF electrum server. We had done a “seppuku pledge” regarding BIP-148, meaning that we would only accept coins from the UASF segwit chain and would pay the Bitcoin market price for them. If UASF had failed, we would not have survived. This cemented our ideology of “skin-in-the-game”. We would never compromise on our values, no matter the cost. Our policy on forks (2017) was described here. But the jist of it is:
Satoshi Portal is a Bitcoin-only company and does not conduct any transaction in any altcoin, including altcoins that are the result of a fork of the Bitcoin blockchain and which can be spent with Bitcoin private keys. This includes, but is not limited to, the coins commonly referred to as BCash, Segwit2X, BGold, Clams and Lumens.We strongly oppose the “New York Agreement” and will under no circumstance ever recognize the Segwit2X blockchain (and BTC1 client) as Bitcoin, regardless of market response or hashing power. In the unlikely event that an overwhelming majority of the Bitcoin ecosystem migrates to the Segwit2X blockchain, Satoshi Portal will continue nevertheless to support the Bitcoin blockchain.
Following the UASF/NO2X “war” in 2017, we devoted a large prortion of ressources to building Cyphernode, an open-source project that makes it very easy for startups to build and deploy Bitcoin applies without any third-parties, using exclusively their own full nodes. We are still developing this project today and plan on actively maintaining it in the future. It is also worth noting that Bylls has never accepted any altcoins and was one of the first company to pledge never to accept altcoins in the future, leading to what became the “Bitcoin-Only” movement. We were also the first Bitcoin exchange and payment processing company, to our knowledge, that has integrated coinjoin as part of its processes.
Unbanking yourself with Bylls
The coolest feature of Bylls is that you can pay pretty much all your expenses with Bitcoin without needing to go through a bank account. In Canada, you can obtain a credit card without having it linked to a bank account. In 2016, the last of my personal bank accounts was closed due to my activities in the Bitcoin industry. I decided not apply at another bank and try the experiment of living completely unbanked. I’m happy to report it was a success, and serves as a powerful testament for the use-cases provided by Bylls. I really like the idea of not owning any fiat. You can pay pretty much all daily expenses with a credit card, and pay back the debt with Bitcoin. Of course you have fiat-denominated debts which conveniently tends to diminish in price over time. You can withdraw cash from a credit card and pay it off instantly with Bylls, so you can get access to cash at any time, in any country across the world, without having a bank account. The only inconvenience is the cash advance fee. When you have to pay larger amounts such as rent or whatever services don’t accept cash or credit card, you can find the biller in the Bylls list or ask the recipient for his banking details, the same as you would for a wire transfer.
The future of Bylls
Many people ask us if we intend to expand outside of Canada. The answer is, unequivocally, no. We will always be a Canada-only, Bitcoin-only company. That doesn’t mean that we stop working hard to improve our services. We will continue to be the first to integrate the cutting-edge Bitcoin technologies that Here is are some of the features you can expect in 2020:
Pay billers via Interac E-Transfer instead of Direct Deposit only
More advanced Coinjoin and privacy features
Bylls merchant services: Bitcoin-payable invoices to clients
Multicurrency Wallet DEXs will be the standard of the 2020s. The present status quo is an absolute joke.
Before I begin, I'd like to ask you a question. Why are so many of the most established people in crypto among the most closed-minded when it comes to talking about new ideas? Why is the crypto space more concerned with what a clown from Australia is lying about or petty figurehead drama than the hard work and effort of the good and lesser-known among them? Let's talk about altcoins for a minute. It'd be a very tough job to count every single alt that's come in on a hypetrain and died in obscurity. If I were to guess that 95% of them failed, I wouldn't be surprised to hear that it was a conservative estimate and that the number is even higher. Indeed, it would be much easier to count the exceptions to the rule. To name a few - ETH, LTC, XMR, and (quite amusingly) DOGE. Should the stubbornly high failure rate of alts justify writing them all off as garbage? Businesses have an incredibly high failure rate too. It would be foolish - outright silly, even - to say that the grocery store is a fraud and a scam because the aqua-saxophone jazzercise laundromat failed to live up to it's expectations. Maybe not, because this is exactly the way the crypto space is right now. That line of thinking is the de facto standard in the cryptocurrency space right now - "guilty (of being a shitcoin) until proven innocent (by some central authority figure or big exchange who can validate it for us so we don't have to do it ourselves)". To be fair, there was an aggressive torrent of these "goofy laundromats" in 2017 and people are either hungover or shell-shocked from all the broken pipedreams and costly fiction. You'd think that the titans of this industry, particularly those who care more about the cypherpunk essence of Bitcoin than how rich they can get off of it, would be more receptive to the legitimate projects that are working in obscurity to harden the crypto space and it's infrastructure. Unfortunately, that does not seem to be the case. All too many seem to think that everything that needed to be built has already been built. Considering that all the Bitcoin titans are somewhat newly-minted, the irony is remarkable. No one used to take Bitcoin seriously. The further back in time you go, the more it took lonely effort and independent research to truly grasp its ideas. This is still the case today. Most have heard of it but have no idea what it is or why it's important. Many who are fervently in PMs or traditional investments like stocks and bonds continue to deride it, even though it will go down as the best performing asset of the 2010s by far. Others are a little more aggressive and, despite a lack of knowledge, call it anything from a scam to "rat poison squared". Like anything else, it's foolish to make bold claims atop little to no education. You'd think that treatment would make Bitcoin maximalists do some reflecting. Instead, a sizable number of them decided to emulate the ones who beat up on Bitcoin when it was small and irrelevant. "All you need is Bitcoin. Everything else is trash. I know what I'm talking about because I bought the top of the 2013 bubble and I'm probably immune to future dumps for life". Now let's talk about where cryptocurrency infrastructure falls short. Bitcoin still retains the same cypherpunk essence that it's always had. The same can be said for Bitcoin wallets. They're secure. They allow for anonymous transactions. They run on an immutable blockchain. There is no central authority between a key-holder and their funds. Enter the exchanges. In a way, they were a necessary evil. Without them, adoption would be severely throttled. With them, Bitcoin is compromised. For many, the privacy and anonymity that BTC is supposed to offers has been tossed out. It was the only way it could be retrofitted into a tightly-controlled system that demands KYC. While this has helped to spread adoption, Bitcoin has become more and more traceable. Quite ironically, many of these same exchanges that adopted KYC policies to "ensure accountability from their customers" had no trouble exit scamming. They come and go. The old one gets hacked, or it exit scams, or proves itself to be corrupt and suspicious. A new one comes. This time it will be different. Then the cycle repeats itself. Mt. Gox. Bitfinex. Polo. Bittrex. Binance. They all had their time in the Sun. These exchanges are in many ways the antithesis of the cypherpunk manifesto - vulnerable honeypots directly controlled by a centralized figurehead. Unsurprisingly, they cause a lot of unneeded trouble and give Bitcoin a ton of bad publicity. Example:
Me: "What do you think of Bitcoin?" Co-worker: "Didn't that thing get hacked last week?" Me: "Bitcoin didn't, but a place where it was exchanged was." Co-worker: "I don't trust it. It's only a matter of time til they find out how to type in some numbers to make more show up on a screen blah blah blah."
You've all likely met someone like this and brushed them off as closed-mined, but they're exactly the type of person this industry needs to convince to further adoption. It will be next to impossible to do so with the way things are right now. In order for Bitcoin to survive, it needs exchanges that are built to the same code that it was. The solution, therefore, is to "port" the cypherpunk essence of Bitcoin to the exchanges. Immutability. Anonymity. Privacy. No central authority of figurehead. With all that said, let's talk about DEXs. I started a thread on here a few months back when Binance announced that they were giving Americans the boot. I got a ton of answers. It shows that, among the hardcore at least, there is a desire to go in a new direction. Loopring, IDEX, and Bisq were among the more popular choices. It's a step in the right direction. However, these DEXs are still rather inaccessible - especially to outsiders. Performance wise, they're on the slower side of things. Due to these setbacks, they suffer from low volume. This is where some recent developments in multicurrency wallets with embedded DEXs from lesser-known projects will come out of obscurity and catch everyone by surprise. Among them - I'd like to mention Stakenet Wallet and KMD's Atomic DEX. Both of them, now seemingly weeks away from launch, will allow for atomic swaps between a wide variety of coins directly from a private wallet. Stakenet goes a step further by offering atomic swaps running atop Lightning Network. Why does this matter? These two platforms will be to exchanges what the inception of Bitcoin was to currency. Finally, after almost 9 years, Bitcoin not only has an exchange that truly honors its essence, but it's starting to see healthy competition between them. To elaborate further on why this is very important.. No KYC. No accounts. No sending Bitcoin to an exchange and waiting around for it to show up. No downloading multiple wallets. No exchange figureheads. No withdrawal freezes. In Stakenet's case, the decentralized MN network that runs it's DEX will also act as a massive LN payment processor (routing, watchtowers) that provides a ton of liquidity for it while allowing Bitcoin to scale. "Lightning swaps" will provide every LN-based coin the ability to be instantly swapped to purchase anything in BTC. Stakenet will also feature a DEX aggregator that will pool together the orderbooks of numerous DEXs into one easily-accessible spot, boosting traffic to the many DEXs that are harder to reach and furthering their adoption along. Simply download a wallet like you would any other app and you're ready to get started. It's so much easier and more convenient. I don't see how or why CEXs and all their ilk (figurehead drama, geoblocking, exchange hacks, wash trading, currency manipulation, exit scams, etc) could remain relevant in the environment to come. Regulation will not save us. Decentralization will. As long as one person learned something from this, it was all worth it. I welcome the opinions of everyone in this space.
I just learned about bitkey, and boy am I impressed. Like my actual point is that I think a critical fatal flaw in the crypto economy and bitcoin network is the reliance on centralized hardware manfufactures whose proprietary closed garden systems and also of course centralized exchanges. I think it's just a matter of time before Trezor and LedgerNano become targets, or some rouge intelligence agent releases to the darknet some tool to crack them or compromise them.
BitKey is a bootable system image based on Debian containing everything you need to perform highly secure air-gapped Bitcoin transactions. You don't need to install it to a hard drive because it runs live from RAM. You just write the ISO image to a USB drive or burn it to CDROM.
I'm a die hard open source linux open system advocate, and I think that bitkey is the right step in the right direction. And my point being, anyone who's a developer could make some version of their own to be audited by the public community. Eventually we would have a handful of publically trusted builds by different developers, and this could be done for the major cryptos, or any crypto, but especially monero since it barely has hardware support. But the design of bitkey being an iso image on a cd rom or a usb, set to maximum privacy with two computers and a third device that scans QR codes. (on a side note there are security issues with QR codes, so that is one area for improvement). I'm trying to imagine a world where people can't get safe devices, can't get hardware wallets, and need an open source alternative to compromised desktops. Obviously something as advanced as a linux OS build spread across three devices for airgapping has a learning curve, but UI can increase over time. We have to remember there are a lot of tyrants in this world who want the monero and btc network to fail, want the fungibility and privacy and cash like nature fail, want to backdoor everything, they want to know if you're hungry, if you need to take a shit, before you even know, Minority report shit, but sadly unironically, and increasingly so. Windows is the devil obviously, Apple even more so. We need a world moving towards Linux, RVISC chips, raspberry pis. Even the best intentions of cypherpunk and monero are very very vulnerable without the hardware to back it up. So there really needs to be a move towards this.
This post may not be so popular lol. But I'll tell you what you should hear. One of the big pushbacks I have gotten on reddit is over the banking secrecy act. I have been repeatedly told that I am making shit up or being conspiratorial. This is very very foolish of this community. The statements and releases were in a document released by the FATF. I read it. It's right there. It's in the document. They've come right out and said exactly what they intend to do, and have told exchange CEO' "that's not our problem you WILL find a way to implement this". I also follow the SEC and CFTC policy and press release strongly, and it is equally hostile and captured. It doesn't matter if a few people in the agencies are well intended. They don't call the shots. They are shadow regulatory industries controlled by people we will never see. The rich obviously. Dupont, Cargill, etc. The bitcoin community has been deeply in denial about numerous issues pointed out. It has become a religion, incapable of receiving critique. -Blind trust in Block stream -Blind trust in Chinese miners and wallstreet institutional mining -Blind trust in centralized exchanges -Blind trust in the venture capital token M.O -Blind trust in the idea of 'STO" security tokens sanctioned and graced by banks/regulators -Blind trust in derivatives controlled by regulated bodies that can impose fractional reserve -Blind trust in the meme of an ETF If this community was far more educated in history and political economy and the US foreign policy, you would never trust these regulated wallstreet instruments, you would never trust a rubber stamp. I mean think about it, how many people in this community are hoping for Wallstreet and regulators to pump their bags. Because that has become the meme. They believe that the government approval and integration into the financial economy is going to pump their bags. How's that working out? We have less commerce acceptance, less adoption, less users with a thousand dollars in their wallet, than a year ago. The belief that bitcoin can exist in a vaacuum and bubble, that it can exist without decentralized infrastructure at the mercy of centralized infrastructure in a hostile environment and become mass adopted by nations of people is delusional. It hasn't worked in a decade. Bitcoin is a hobby horse for geeks, speculators, and a revenue stream for centralized wallstreet and financial institutions globally. It is a proxy of bitmain, of these other institutions, and is becoming more and more centralized. The gini coeeficient of bitcoin dwarfs fiat. And the problem *is not bitcoin* the problem is the community believing in these memes and not learning from economic history in antiquity and not building the infrastructure outside the states control and forcing the state into diplomacy. Bitcoiners are failed anarchist, they don't know how to politically represent themselves, they aren't wobblies, they aren't like classic leftist who forced these concepts onto the gilded aged imperialist western republics, that forced them to not send kids to work in coalmines for 12 hours a day. We aren't politically commanding. The banking secrecy act is a extinction level event for crypto. Will bitcoin survive? Of course? But it's going to set us back a decade. It's going to send us back to the stone age. And we are at a *profound* risk of the main chain breaking off and becoming the pseudo banking state corporate nexus geofenced kyced bitcoin with backdoored nodes and backdoored hardware wallets. The statist wont break bitcoin in half, we will. We will out of desperation after they sully it so severely that we have no choice but to hard fork it into a original version that can protect itself against the BSA. You say we won't but we will, when they cripple the global south's access to it, and they cripple the price, you will have your braveheart mercy moment, and the og cypherpunk will kick the bucket and pull the trigger. What has to be done will be done. Centralized exchanges are completely incompatible with cypherpunk and anarchism and the white paper. We've tolerated CEX for a decade. Not only are governments a threat, but we will be continually crippled by Quadriga CX failures, Cryptopia, and Mount Gox failures. Because of toxic maximalism and toxic attitude towards building the fucking infrastructure to avoid this. The mainstream developers won't do it because they can't make any money. This will be a sacrificial act to build this system, just like Satoshi. The current DEX system is like the 1960's darpa intranet. That is it. That's why it sucks. It's not the internet of DEX, it's not. And making the internet of DEX is really, really, really fucking hard bleeding edge computer science. If we want global adoption we need an internet, not an intranet. Having the liquidity of DEX divided into intranet is why we continue to rel on CEX. You want to get rid of the CEX, turn the fucking intranet into an internet, into an interchain. Stop relying on companies and ICO's and 1000 tokens for 1000 things, build the actual backbone. Support the developers. Pay your fucking developers. Stop calling everything a scam and everything vaporware. The internet isn't a fucking vaporware scam, so neither is the interchain. Maximalism is ludditism. Crypto is for the global south, it's for emancipatory politics and independence, for the 99.99%, not the .01%. If you believe otherwise, and want you're "Citadel", Fuck You. Seriously. Read some political economy. Read Ellinor Ostrom, Bestiat, Spooner, Proudhon, etc. Crypto is suppoose to be a public good and a form of open source economy, not a recreation of tyranny, hierarchy, economic centralization, and worse yet just another banker shitcoin debt scam interest rate scam, which is what they are treating it and regulating and profiting off of it as.
Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. A large percentage of Bitcoin enthusiasts are libertarians, though people of all ... The Silk Road Balance Sheet Discrepancy: Bitcoin Worth $4.8 Billion Still Missing. The original Silk Road marketplace has been shut down for well over seven years now and to this day, 444,000 ... Bitcoin and the Rise of the Cypherpunks; Bitcoin and the Rise of the Cypherpunks. 08/09/2019. From bitcoin to blockchain to distributed ledgers, the cryptocurrency space is fast evolving, to the point where it can be difficult to see in which direction it’s headed. But, we’re not without clues. While many of the innovations in the space are new, they’re built on decades of work that led ... Bitcoin and the Rise of the Cypherpunks. While many of the innovations in the space are new, they’re built on decades of work that led to this point. By tracing this history, we can understand the motivations behind the movement that spawned bitcoin and share its vision for the future. Jameson Lopp. Read more posts by this author. Jameson Lopp. 9 Apr 2016 • 15 min read. From bitcoin to ... CoinDesk contributor Jameson Lopp traces the history of the cypherpunks, the band of innovators whose beliefs helped inspire the bitcoin movement.
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