Speaking at London’s British Library, Dorsey said; ‘The world ultimately will have a single currency, the internet will have a single currency.
‘And I believe that it will be bBtcoin’, he said.
The Twitter founder’s talk was centred around Dorsey’s new payments firm, Square, which allows merchants to take payments via smartphones and tablets.
For all of us, the act of being and thinking requires a network of complex support. The late physicist’s disability made it visible.
Midnight. As I was browsing the internet, I saw, like shooting stars, emails suddenly appear and disappear from the right-hand corner of my computer screen. The first from CNN announcing the death of Stephen Hawking, the second from an editor at The Atlantic asking me to write about him.
I had written about the man for 10 years—as a biographer of some sort, or an anthropologist of science to be more precise, studying the traces of Hawking’s presence. But now I felt a powerless inertia, unable to write anything. I didn’t think I would be affected by his death, but it touched me deeply. I was overwhelmed by the numerous articles that started to appear all over the world doing precisely what I had studied for so long and so carefully: recycling over and over again the same stories about him. Born 300 years after the death of Galileo Galilei, holder of Cambridge’s Lucasian Chair of Mathematics (once held by Isaac Newton), and now … died on the same day Albert Einstein was born. The life paths of history’s most iconic scientists intersected in weird ways. The puzzle seemed complete: Hawking had fully entered the pantheon of the great.
On Thursday, Robert O. Work, a former deputy secretary of defense, will announce that he is teaming up with the Center for a New American Security, an influential Washington think tank that specializes in national security, to create a task force of former government officials, academics and representatives from private industry. Their goal is to explore how the federal government should embrace A.I. technology and work better with big tech companies and other organizations.
Older tech companies have long had ties with military and intelligence. But employees at internet outfits like Google are wary of too much cooperation.
John Oliver is a crossover who bridges the art of a comedian with the reporting and perspective of a liberal political pundit. Even detractors acknowledge that Oliver addresses serious issues with unusual wit and humor.
I never thought Oliver could (or would) tackle the topic of cryptocurrency—at least not with value to the viewer. It is too geeky, and too esoteric. (It also cuts into my mission of evangelism and education). smile
He did, and he sparkles! Feel free to jump past the fluff. The Bitcoin tutorial starts at 3:40. Of course, my friend, Shechter, in Long Island New York will bust a gut over what Oliver says at 9:40. It is not only clear and concise, it is accurate and terribly funny!
Whether you are a Bitcoin newbie or a seasoned blockchain coder, this is the video you have been looking for. This one is durable.
Today, I was asked to answer this question at Quora:
“What sets each cryptocurrency apart from the others?”
“Cryptocurrency” is a broad term. It refers to payment coins, of course—such as Bitcoin and Litecoin. But, because most tradeable tokens attain an asset value, the word is often used to refer to smart contract devices, such as Ethereum, a host of other blockchain based tokens, functional Internet-of-Things tokens, and even ICOs (Initial Coin Offerings). Since people treat ICOs and IOT tokens as investment instruments even if they are useless as a payment mechanism, they all fall within the realm of a cryptocurrency.
So, before addressing the question, let’s distinguish between Altcoins and ICOs. I assume the question refers to Altcoins, and not ICOs…
ICOs are almost all scams. A very few of these are designed to function in a well-defined IOT role (Internet-of-Things). But, any ICO that you are likely to hear about share one or more traits described here.
But Altcoins are different. These are typically forked from Bitcoin or another established blockchain-backed coin. They are created because developers feel that they have solved one or more of the problems that limit the growth or appeal of Bitcoin. For example, Bitcoin has (or recently had) all these problems or perceived limitations:
One big problem facing Bitcoin is that the distributed consensus mechanism that makes it a trusted, peer-to-peer mechanism is based on Proof-of-Work (POW). Coupled with a mining incentive that increases dramatically with exchange rate, Bitcoin is—quite simply—untenable. With consumption topping 33 terawatt hours in December 2017, it already consumes more power than some countries. If even 2% of the world’s payment transactions were settled in Bitcoin, the mining would consume more power than is generated throughout the world. This just cannot continue!
Fortunately, developers and armchair inventors have proposed or demonstrated clever POW alternatives to achieve a fair distributed consensus. Some of these use a Proof-of-Stake mechanism, while others add a limited central-authority nexus to facilitate governance and scaling. Some are built on a modified blockchain that weaken several pillars of a true decentralized, p2p network. Of course, researchers are concerned that these systems deteriorate the decentralized nature of Satoshi’s original blockchain.
But, other systems may allow for a fully distributed and democratic trust platform, such as BFT Replication (IBM) or Distributed Objective Consensus, which was proposed by an amateur mathematician.
In reply to the title question, Altcoins are set apart by their claim to address the above problems & limitations, or to add features.
Will an Altcoin Triumph over Bitcoin?
Perhaps, a few altcoins will thrive, due to specific niche advantages; features that Bitcoin chooses not to address, such as deep anonymity or with a novel utilitarian feature that facilitates a specific Internet-of-Things process.
Unfortunately for altcoins, all coins require public trust and transparency. For this reason, they are open source, permissionless, without licensing, without patent protection and with a fully disclosed pre-mining history. And for that reason, Bitcoin is free to steal any clever advantage that works. It’s all up for grabs and no one can be sued.
In effect, each altcoin as a beta test platform for Bitcoin. Now that Bitcoin is finally addressing the problems of scalability and fair/speedy governance, there is little doubt that it will continue to dwarf other coins.
Philip Raymond sits on Lifeboat’s New Money Systems board. He co-chairs CRYPSA, hosts the New York Bitcoin Event and is keynote speaker at Cryptocurrency Conferences around the world. Book a presentation or consulting engagement.
A new section about Bitcoin ATM business models
has been added. Jump to “UPDATE – July 2019”
The good news is that building a Bitcoin ATM is easy and less expensive than you might expect. But, offering or operating them engulfs the assembler in a regulatory minefield! It might just be worth sticking to selling bitcoin on PayPal (visit this website for more information on that). You might also wish to rethink your business model—especially user-demand scenarios. See our 2019 update at the bottom of this article.
A photo of various Bitcoin ATMs appears at the bottom of this article. My employer, Cryptocurrency Standards Association, shared start-up space at a New York incubator with the maker of a small, wall mounted ATM, like the models shown at top left.
What is Inside a Cryptocurrency ATM?
You could cobble together a Bitcoin ATM with just a cheap Android tablet, a camera, an internet connection, and [optional]: a secure cash drawer with a mechanism to count and dispense currency).* A receipt printer that can also generate a QR code is a nice touch, but you don’t really need one. You can use your screen for the coin transfer and email for a receipt.
Of course your programming and user interface makes all the difference in the world. And your ATM must interface with an exchange—yours or a 3rd party exchange.
If your plan is to sell Bitcoin and not exchange it for cash, then you don’t need a currency dispensing component at all. You only need a credit card swipe-reader and an RFI tap reader. Some models are smaller than a cookie and sell for under $30. They can be attractively embedded into your machine. In fact, some bank card processors offer them without cost.
Legacy Method of Inheriting Assets
Many Bitcoin owners choose to use a custodial account, in which the private keys to a wallet are generated and controlled by their exchange—or even a bank or stock broker. In this case, funds are passed to heirs in the usual way. It works like this…
An executor, probate attorney, or someone with a legal claim contacts the organization that controls the assets. They present a death certificate, medical proxy or power-of-attorney. Just as with your bank account or stocks and bonds, you have the option of listing next of kin and the proportion of your assets that should be distributed to each. These custodial services routinely ask you to list individuals younger than you and alternate heirs, along with their street addresses, in the event that someone you list has died before you.
Of course, Bitcoin purists and Libertarians point out that the legacy method contradicts the whole point of owning a cryptocurrency. Fair enough.
Multisig to the Rescue
Using multisig would be far easier, if wallet vendors would conform to standards for compatibility and embed technology into hardware and software products. Unfortunately, they have been slow to do so, and there are not yet widely recognized standards to assure users that an implementation is both effective and secure. But, there is some good news: It’s fairly easy to process your ordinary account passwords and even the security questions with a roll-your-own multisig process. I’ve done it using PGP and also using Veracrypt—two widely recognized, open source encryption platforms.
This short article is not intended as an implementation tutorial, but if the wallet vendors don’t jump up to home plate, I may release a commercial tool for users to more easily add multisig to their wallets. It really is safe, simple and effective. (If readers wish to partner with me on this? I estimate that it will take $260,000 and about six months).
What is Multisig and How Does it Protect your Wealth?
Multisig allows anyone with credentials to an account, wallet or even a locked safe to create their own set of rules concerning which combinations of friends and relatives can access their assets without the original owner. The owner sets conditions concerning who, when, how much and which accounts can be accessed — and the heirs simply offer passwords or proof of identity. If implemented properly, it doesn’t matter if some of the heirs have forgotten passwords or died before the original owner.
This can be illustrated in an example. I am intentionally describing a complex scenario, so that you consider a full-blown implementation. Although the ‘rules’ listed below appear to be complex, the process for creating the associated passwords is trivial.
The last 2 rules listed below do not use Multisig technology, but rather Smart Contracts. It enhances an owner’s ability to dictate terms. Here, then, is the scenario…
I want heirs to have access to my assets
at banks, brokers, exchanges or other ac–
counts–but only under certain conditions:
Again, the decedent’s wishes are complex, but executing and enforcing these rules is trivial. In my presentations, I describe the method on two simple PowerPoint slides. Even that short description is sufficient to show anyone who has used common cryptography apps to weave their own multisig add-on.
Of course, each individual will need to locate their own secret password, but a biometric or other conforming proof-of-identity can be substituted. Even if several survivors cannot recall their credentials, the multisig method allows other combinations of individuals to access the assets across all accounts.
This article may leave you wondering about the legal process—and this is where I agree with the Libertarian viewpoint: Sure! The courts have a process and heirs should document their access and decisions for tax purposes and to assure each other of fair play. But a key benefit of cryptocurrency and the disintermediation offered by the blockchain is the personal empowerment of access with impunity and without waiting for any legal process.
Let the courts to what they do, while you honor the wishes of your dearly departed.
If this article generates sufficient interest, I may prepare a short tutorial on how to split off your own Multisig passwords, regardless of which wallet or hosted services you use. It will work with any vendor, app or gadget —or— Perhaps, I will refine my homespun solution and offer it as an add-on app that can be used with any wallet, bank account or exchange. Simple, ubiquitous and effective multisig should have been available to even traditional banking customers years ago!
Philip Raymond co-chairs CRYPSA, hosts the New York Bitcoin Event and presents at
Crypto Conferences around the world. Book a presentation or consulting engagement.
First, let’s get some basics out of the way…
What is Transaction Malleability?
Here are 2 explanations of transaction malleability: [Coindesk] [TechTalk]
In a nutshell, Transaction Malleability is a weakness in the original Bitcoin implementation that enables a bad actor to change the unique ID of a bitcoin transaction before it is confirmed on the Blockchain. Such a change makes it possible for someone to pretend that a transaction didn’t happen, if all necessary conditions are in place.
As the Coindesk article points out, a successful attack requires certain conditions that make a successful attack difficult or even unlikely. Many analysts referred to it as a bug that should eventually be fixed, rather than an urgent issue.
Was This Flaw Addressed
Transaction malleability was addressed (for Bitcoin) with the introduction of Segregated Witness (SegWit) in August 2017. 1, 2
But Was There a Successful Attack?
Attack? Yes. Successful? It’s doubtful…
In March 2017, five months before SegWit was implemented, a mining pool that administers 2% of worldwide activity launched a malleability attack. No one lost money – and some individuals believe that they did this to emphasize urgency and hasten the adoption of SegWit.
What About Lightning Network?
The Lightning Network is a ‘Level 2’ network overlay, currently being adopted by miners (depending on the service or exchange, it is being incrementally activated in the first months of 2018). To function properly, it requires that transaction malleability be solved. But, in the event that a miner is not SegWit compliant, it can resolve the malleability problem in other ways.
1 SegWit should not be confused with SegWit2x, an upgrade process that was cancelled a few months later in November. 2017
2 In the TechTalk article linked above, the author concludes:
“Transaction Malleability is fixed with Segregated Witness by no longer taking into account signatures when calculating the transaction’s fingerprint. Fixing Transaction Malleability means that the Lightning Network can work smoothly.”
Philip Raymond co-chairs CRYPSA, hosts the New York Bitcoin Event and presents at
Crypto Conferences around the world. Book a presentation or consulting engagement.
In the course of the last century, science fiction has been a harbinger of things to come. From the automatic sliding doors of Star Trek to visual communication, cyberspace, and even the moon landing, many of our present technological achievements were dreamed up in the futuristic visions of science fiction authors of the 1960s and 70s. Indeed, the fantastical world of science fiction, while not intended to be prophetic, has ended up acting as a blueprint for our modern world.
We have learned from science fiction not only the possibilities of technology, however, but also its irreconcilable dangers. Readers of the genre will recognize the many stories warning us of the hazards of space travel, mind enhancement, and artificial intelligence. These fictional accounts cautioned that if we were not careful, our freedom to transform the world around us would transmogrify into a self-enforced slavery.
Nonetheless, while many of us remembered that these were just stories, intended as speculations about a possible future—in other words, they were fiction before science—through them, we became used to the idea that any advanced technology was inherently dangerous and its use always suspect. Moreover, it became a commonplace idea that technologies whose aim was to change or transform the human being—whether genetic, biological or reconstructive—would lead to a future worthy of Mary Shelley’s Frankenstein.
John Oliver is a crossover who bridges the art of a comedian with the reporting and perspective of a liberal political pundit. Even detractors acknowledge that Oliver addresses serious issues with unusual wit and humor.