Satoshi Nakamoto

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Bitcoin: The Future of Money? by Dominic Frisby

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3D printing, altcoin, bank run, banking crisis, banks create money, barriers to entry, bitcoin, blockchain, capital controls, Chelsea Manning, cloud computing, computer age, cryptocurrency, disintermediation, ethereum blockchain, fiat currency, fixed income, friendly fire, game design, Isaac Newton, Julian Assange, land value tax, litecoin, M-Pesa, mobile money, money: store of value / unit of account / medium of exchange, Occupy movement, Peter Thiel, Ponzi scheme, prediction markets, price stability, QR code, quantitative easing, railway mania, Ronald Reagan, Satoshi Nakamoto, Silicon Valley, Skype, slashdot, smart contracts, Snapchat, Stephen Hawking, Steve Jobs, Ted Nelson, too big to fail, transaction costs, Turing complete, War on Poverty, web application, WikiLeaks

,’ Sourceforge, July 6, 2010, accessed May 22, 2014, http://bit.ly/1tru7NE. 100 Satoshi Nakamoto, ‘Bitcoin P2P e-cash paper,’ Cryptography Mailing List, November 8, 2008, accessed May 20, 2014, http://bit.ly/1truasP. 101 Satoshi Nakamoto, ‘Bitcoin P2P e-cash paper,’ Cryptography Mailing List, November 8, 2008, accessed May 20, 2014, http://bit.ly/1truasP. 102 Satoshi Nakamoto, ‘Bitcoin open source implementation of P2P currency,’ P2P Foundation, February 11, 2009, accessed January 28, 2014, http://bit.ly/1tHFaWL. 103 Satoshi Nakamoto, ‘tcatm’s 4-way SSE2 for Linux 32/64-bit is in 0.3.10,’ BitcoinTalk, August 19, 2010, accessed March 5, 2014, http://bit.ly/1trBchb. 104 Satoshi Nakamoto, ‘tcatm’s 4-way SSE2 for Linux 32/64-bit is in 0.3.10,’ BitcoinTalk, August 15, 2010, accessed March 5, 2014, http://bit.ly/1trBfts. 105 Satoshi Nakamoto, ‘tcatm’s 4-way SSE2 for Linux 32/64-bit is in 0.3.10’, BitcoinTalk, August 15, 2010, accessed March 5, 2014, http://bit.ly/1trBchd. 106 Satoshi Nakamoto, ‘tcatm’s 4-way SSE2 for Linux 32/64-bit is in 0.3.10,’ BitcoinTalk, August 15, 2010, accessed March 5, 2014, http://bit.ly/1trBftu. 107 MoonShadow, ‘re.

Once you’ve understood that, see the follow up here – http://bit.ly/1tru7NK. 109 ‘Bitcoin and me.’ 110 AnonymousSpeech.com, accessed January 22, 2014. http://bit.ly/1trBchh. 111 Satoshi Nakamoto, ‘Re: IPv6, headless client, and more,’BitcoinTalk, June 27, 2010, accessed March 10, 2014, http://bit.ly/1pLBdbX. 112 Satoshi Nakamoto, ‘Re. Potential Disaster Scenario,’ August 15, 2010, accessed March 25, 2014, http://bit.ly/1trBfJK. 113 Satoshi Nakamoto, ‘Re: wiki registration email,’ July 29, 2010, accessed March 25, 2014, http://bit.ly/1trBfJN. 114 Satoshi Nakamoto, Bitcointalk, accessed February 26, 2014, http://bit.ly/1trBfJQ and http://bit.ly/1trBchl. 115 Satoshi Nakamoto, ‘Re:URI-scehem for bitcoin,’ BitcoinTalk, February 24, 2010, accessed March 10, 2010, http://bit.ly/1trBfJS. (N.B. ‘photo it’ – is that something a native English speaker would say? I guess so, possibly, just.) 116 Satoshi Nakamoto, ‘Re: How fast do the fastest computers generate bitcoins?’

I do find a lot of Satoshi’s posts difficult to understand – particularly when he writes about coding matters – but, on the whole, his command of English is considerably better than many native-English speaking financial commentators. 119 Gwern Branwen, comments on ‘Wei_Dai comments on AALWA,’ Less Wrong, March 21, 2014, accessed March 25, 2014, http://bit.ly/1tHFaGj. 120 Satoshi Nakamoto, ‘Bitcoin v0.1 released,’ January 16, 2009, accessed March 4, 2014, http://bit.ly/1truasU. 121 Satoshi Nakamoto, ‘Re. The dollar cost of bitmining energy,’ BitcoinTalk, July 16, 2010, accessed April 10, 2014, http://bit.ly/1trBcxC. 122 Satoshi Nakamoto, ‘Re. Potential Disaster Scenario,’ August 15, 2010, accessed March 25, 2014, http://bit.ly/1trBfJK. 123 Satoshi Nakamoto, ‘Re: A few suggestions,’ BitcoinTalk, December 13, 2009, accessed March 10, 2014, http://bit.ly/1trBcxE. 124 Satoshi Nakamoto, ‘Re: Transactions and Scripts: DUP HASH160…EQUALVERIFY CHECKSIG,’ BitcoinTalk, June 18, 2010, accessed March 5, 2014, http://bit.ly/1trBcxI. 125 Satoshi Nakamoto, ‘Bitcoin open source implementation of P2P currency,’ P2P Foundation, February 11, 2009, accessed February 19, 2014. http://bit.ly/1tru840. 126 Satoshi Nakamoto Profile, P2P Foundation, accessed February 19, 2014, http://bit.ly/1tru841. 127 Satoshi Nakamoto, ‘Bitcoin P2P e-cash paper,’ Cryptography Mailing List, November 1, 2008, accessed March 2, 2014, http://bit.ly/1tHF9lM. 128 Michael J.


pages: 457 words: 128,838

The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order by Paul Vigna, Michael J. Casey

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3D printing, Airbnb, altcoin, bank run, banking crisis, bitcoin, blockchain, Bretton Woods, California gold rush, capital controls, carbon footprint, clean water, collaborative economy, collapse of Lehman Brothers, Columbine, Credit Default Swap, cryptocurrency, David Graeber, disintermediation, Edward Snowden, Elon Musk, ethereum blockchain, fiat currency, financial innovation, Firefox, Flash crash, Fractional reserve banking, hacker house, Hernando de Soto, high net worth, informal economy, intangible asset, Internet of things, inventory management, Julian Assange, Kickstarter, Kuwabatake Sanjuro: assassination market, litecoin, Long Term Capital Management, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, money: store of value / unit of account / medium of exchange, Network effects, new economy, new new economy, Nixon shock, offshore financial centre, payday loans, Pearl River Delta, peer-to-peer, peer-to-peer lending, pets.com, Ponzi scheme, prediction markets, price stability, profit motive, QR code, RAND corporation, regulatory arbitrage, rent-seeking, reserve currency, Robert Shiller, Robert Shiller, Satoshi Nakamoto, seigniorage, shareholder value, sharing economy, short selling, Silicon Valley, Silicon Valley startup, Skype, smart contracts, special drawing rights, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, supply-chain management, Ted Nelson, The Great Moderation, the market place, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, Turing complete, Tyler Cowen: Great Stagnation, Uber and Lyft, underbanked, WikiLeaks, Y Combinator, Y2K, zero-sum game, Zimmermann PGP

That’s the estimate that cryptographer Sergio Lerner: Sergio Lerner, “The Well Deserved Fortune of Satoshi Nakamoto, Bitcoin Creator, Visionary and Genius,” Words on Bitcoin Design, Privacy, Security and Crypto blog, April 17, 2013, http://bitslog.wordpress.com/2013/04/17/the-well-deserved-fortune-of-satoshi-nakamoto/. SecondMarket’s CEO, Barry Silbert, describes: Comments made at media roundtable sponsored by Circle Internet Financial, New York, December 10, 2013. Nick Szabo, whose writings, the forensics linguists tell us: Paul Vigna, “Bitcoin Creator ‘Satoshi Nakamoto’ Unmasked—Again?,” Wall Street Journal, MoneyBeat blog, April 16, 2014, http://blogs.wsj.com/moneybeat/2014/04/16/bitcoin-creator-satoshi-nakamoto-unmasked-again/. Writing for The New Yorker: Joshua Davis, “The Crypto-Currency: Bitcoin and Its Mysterious Inventor,” New Yorker, October 10, 2011.

Bitcoin takes on the look of a religious movement: the meetups that are reminiscent of church socials, the cultlike crowds that sing bitcoin’s praises on social forums such as Reddit and Twitter, the movement’s evangelists—people such as Barry Silbert, Nicolas Cary, Andreas Antonopoulos, Charlie Shrem, and Roger Ver (whose nickname is Bitcoin Jesus). At the top of it all, ensconced firmly in a creation myth that inspires and nurtures the faithful, is Satoshi Nakamoto, the godhead of bitcoin. But cryptocurrencies could flame out entirely—like the Betamax video format (for those of you old enough to remember it). Or they could have only marginal real-world application, much as the once heavily hyped Segway has had. No less a dedicated bitcoiner than Gavin Andresen, the software engineer whom Satoshi Nakamoto effectively appointed to become the lead developer of bitcoin’s core software, articulates it this way: “Every time I give a talk, I emphasize that bitcoin really is still an experiment; every time I hear about somebody investing their life savings in it, I cringe.”

If we apply the chartalists’ view that money is a social phenomenon, then this ongoing community expansion represents nothing less than a currency’s endeavoring to become money. Two GENESIS What is needed is an electronic payment system based on cryptographic proof instead of trust. —Satoshi Nakamoto October 31, 2008, 2:10 P.M., New York time. The several hundred members of an obscure mailing list comprising cryptography experts and enthusiasts receive an e-mail from somebody calling himself Satoshi Nakamoto.* “I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party,” he writes flatly. His brief text directs them to a nine-page white paper posted at a new Web site that he had registered two months earlier, which describes a currency system he calls bitcoin.


pages: 387 words: 112,868

Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money by Nathaniel Popper

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4chan, Airbnb, Apple's 1984 Super Bowl advert, banking crisis, bitcoin, blockchain, Burning Man, capital controls, Colonization of Mars, crowdsourcing, cryptocurrency, David Graeber, Edward Snowden, Elon Musk, Extropian, fiat currency, Fractional reserve banking, Jeff Bezos, Julian Assange, Kickstarter, life extension, litecoin, lone genius, M-Pesa, Marc Andreessen, Mark Zuckerberg, Occupy movement, peer-to-peer, peer-to-peer lending, Peter Thiel, Ponzi scheme, price stability, QR code, Satoshi Nakamoto, Silicon Valley, Simon Singh, Skype, slashdot, smart contracts, Startup school, stealth mode startup, the payments system, transaction costs, tulip mania, WikiLeaks

CHAPTER 3 29Before reaching out to Satoshi, Martti had written about Bitcoin on anti-state.org: Martti’s post, written under the screen name Trickster, is available at https://board.freedomainradio.com/topic/17233-p2p-currency-could-make-the-government-extinct/. 30“The root problem with conventional currency”: Satoshi Nakamoto, “Bitcoin Open Source Implementation of P2P Currency,” P2P Foundation forum, February 11, 2009, http://p2pfoundation.ning.com/forum/topics/bitcoin-open-source. 33It also meant that Satoshi’s computers were still: Sergio Demian Lerner, “The Well Deserved Fortune of Satoshi Nakamoto, Bitcoin Creator, Visionary and Genius,” Bitslog, April 17, 2013, https://bitslog.wordpress .com/2013/04/17/the-well-deserved-fortune-of-satoshi-nakamoto/. 35“Be safe from the unstability caused by fractional reserve”: An archived version of the page designed by Martti is available at http://web.archive .org/web/20090511173000/http://bitcoin.sourceforge.net/. 35A few dozen people downloaded the Bitcoin program: Data on software downloads available at http://sourceforge.net/projects/bitcoin/files/stats/timeline. 37Starting in August, the log of changes to the software: The history of changes to the software is available at https://gitorious.org/bitcoin/bitcoind/activities. 37When the next version of Bitcoin, 0.2: Satoshi Nakamoto to DEV-LIST, December 17, 2009. 37the majority of coins were still: Lerner. 37throughout 2009 no one else was sending or receiving: Data on the number of transactions per block available at https://blockchain.info/charts/n-transactions-per-block. 38In the very first recorded transaction of Bitcoin for United States dollars: Information on the transaction is available at https://blockchain .info/tx/7dff938918f07619abd38e4510890396b1cef4fbeca154fb7aaf ba8843295ea2. 38NewLibertyStandard came up with his own method: The shuttered exchange is still online at http://newlibertystandard.wikifoundry.com/page/Exchange+Rate. 39Swap Variety Shop on his exchange website: The shuttered shop is still online at http://newlibertystandard.wikifoundry.com/page/Specialty+Shop.

: The video of Dorian Nakamoto leaving his house is viewable at http://www.theguardian.com/technology/2014/mar/07/satoshi-nakamoto-denies-inventing-bitcoin. 323“simply be an old man saying ANYTHING”: Gavin’s letter to McGrath Goodman is available at http://www.reddit.com/r/bitcoin/comments/1zqjq6/open_letter_to_leah_mcgrath/. 323In an Amazon review of Danish butter cookies: The review is available at http://www.amazon.com/review/R3U92F9YRUSF37. 323The AP’s story and video from its interview: The interview is viewable at https://www.youtube.com/watch?x-yt-ts=1422579428&x-yt-cl= 85114404&v=GrrtA6IoR_E. 324An Argentinian security expert, Sergio Lerner, had done: Sergio Demian Lerner, “The Well Deserved Fortune of Satoshi Nakamoto, BitcoinCreator, Visionary and Genius,” Bitslog, April 17, 2013, https://bitslog.wordpress.com/2013/04/17/the-well-deserved-fortune-of-satoshi-nakamoto/. 333 “Friends, citizens, Bitcoiners, there is nothing”: Charlie’s speech is viewable at https://www.youtube.com/watch?

On the cover was a dramatic mask, against a black background with the title “BITCOIN’S FACE: THE MYSTERY MAN BEHIND THE CRYPTO-CURRENCY.” Satoshi Nakamoto’s identity had been a recurring fascination for journalists, but all the previous searches had ended with inconclusive results. Given Satoshi’s skill in using anonymizing software, many assumed that Satoshi would never be found until he, she, or they decided to come forward. The Newsweek reporter, Leah McGrath Goodman, had seemingly cracked the nut in the most unexpected way. The man she found was named Dorian Nakamoto, but the papers recording his immigration from Japan to the United States in 1959, at age ten, showed that his name, at birth, had been Satoshi. This Satoshi Nakamoto had gotten a degree in physics from California State Polytechnic University and had worked on classified engineering projects before his retirement.


pages: 296 words: 86,610

The Bitcoin Guidebook: How to Obtain, Invest, and Spend the World's First Decentralized Cryptocurrency by Ian Demartino

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3D printing, AltaVista, altcoin, bitcoin, blockchain, buy low sell high, capital controls, cloud computing, corporate governance, crowdsourcing, cryptocurrency, distributed ledger, Edward Snowden, Elon Musk, ethereum blockchain, fiat currency, Firefox, forensic accounting, global village, GnuPG, Google Earth, Haight Ashbury, Jacob Appelbaum, Kevin Kelly, Kickstarter, litecoin, M-Pesa, Marc Andreessen, Marshall McLuhan, Oculus Rift, peer-to-peer, peer-to-peer lending, Ponzi scheme, prediction markets, QR code, ransomware, Satoshi Nakamoto, self-driving car, Skype, smart contracts, Steven Levy, the medium is the message, underbanked, WikiLeaks, Zimmermann PGP

The aforementioned Wei Dai was still involved in cryptography after the B-money proposal and so is a prime suspect. There is, of course, the long-held theory that Satoshi Nakamoto is/was Nick Szabo, who wrote publicly about concepts very similar to Bitcoin. There is also David Chaum, who certainly had the necessary experience and perhaps wanted to show the world that electronic cash was viable. Adam Back invented hashcash and commented on the B-money proposal when it was first proposed in the Cypherpunk mailing list, so he can’t be ruled out either. A man named Dorian Prentice Satoshi Nakamoto, who was living in a small house in California, was once “outed” as the real Satoshi Nakamoto by Newsweek in a highly controversial cover story.13 When the article came out, Satoshi Nakamoto’s email came back to life, only to post on the Bitcoin developer mailing list that he was “not Dorian Nakamoto.”

Gox, cofounder of Ripple, and cofounder of Stellar. Satoshi Nakamoto: The anonymous creator of Bitcoin, suspected to be one person or several people. Dread Pirate Roberts: The leader of the infamous Silk Road underground marketplace. May be a group of people or a name passed from person to person. Amir Taaki: Dark Wallet co-creator and lead developer of Darkmarket, later forked to Open Bazaar. Peter Todd: Bitcoin core developer. Ross Ulbricht: Was accused and convicted of being Dread Pirate Roberts; his case is under appeal. Roger Ver: Angel investor and Bitcoin evangelist; CEO of Memorydealers.com, one of the first sites to accept Bitcoin, and founder of the company Blockchain. Cody Wilson: Dark Wallet co-creator and 3D-printed gun designer. Craig Wright: A recent addition to the search for Satoshi Nakamoto. Wired magazine recently reported he was “probably” the creator of Bitcoin (or wanted the world to think he was).

The paper is available at: http://www.bitcoin.org/bitcoin.pdf The main properties: Double-spending is prevented with a peer-to-peer network. No mint or other trusted parties. Participants can be anonymous. New coins are made from Hashcash style proof-of-work. The proof-of-work for new coin generation also powers the network to prevent double-spending. —Satoshi Nakamoto’s announcement of Bitcoin, The Cryptography and Cryptography Policy Mailing List, November 1, 2008 With this message, an anonymous person or group posting under the name Satoshi Nakamoto started the revolution known to the public as Bitcoin. When the Internet first came into the public’s consciousness, people instantly began wondering how Internet commerce would be handled. A lot of people could see the potential of selling goods through the Internet, since—as I noted earlier—systems that enabled home shopping through computer terminals had been around since the 1970s.


pages: 52 words: 13,257

Bitcoin Internals: A Technical Guide to Bitcoin by Chris Clark

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bitcoin, fiat currency, peer-to-peer, Satoshi Nakamoto, transaction costs, Turing complete

Recently, ASICs (Application-Specific Integrated Circuits) have been developed that are orders of magnitude faster than GPUs. At this point, miners need to have custom hardware to make mining a profitable investment. Bibliography [1] Satoshi Nakamoto, "Bitcoin: A Peer-to-Peer Electronic Cash System," referenced in e-mail sent to cryptography@metzdowd.com mailing list, October 31, 2008. http://www.mail-archive.com/cryptography@metzdowd.com/msg09959.html [2] "Satoshi Nakamoto," Bitcoin Wiki, June 13, 2013. https://en.bitcoin.it/wiki/Satoshi_Nakamoto#Work [3] "Bitcoin Ladder," Bitcoin Wiki, June 14, 2013. https://en.bitcoin.it/wiki/Bitcoin_Ladder#Top_companies [4] Andy Greenberg, "Black Market Drug Site ’Silk Road’ Booming: $22 Million In Annual Sales," Forbes, August 6, 2012. http://www.forbes.com/sites/andygreenberg/2012/08/06/black-market-drug-site-silk-road-booming-22-million-in-annual-mostly-illegal-sales/ [5] Reuben Grinberg, "Bitcoin: An Innovative Alternative Digital Currency," Hastings Science & Technology Law Journal (4) (2011): 160. http://ssrn.com/abstract=1817857 [6] Ralph Merkle, "A certified digital signature," Proceedings on Advances in cryptology (CRYPTO ’89) (1989): 218-238.

People have an incentive to join the Bitcoin network because those who process transactions are rewarded with newly created bitcoins. Who created Bitcoin? Bitcoin started as a free, open-source computer program written by an author or group of authors who used the pseudonym Satoshi Nakamoto. The pseudonym was used in both the source code3 and in the white paper that describes the idea.[1] Nakamoto’s possible motivations for creating Bitcoin can be gleaned from some of his or her discussions on mailing lists: "[Bitcoin is] very attractive to the libertarian viewpoint if we can explain it properly. I’m better with code than with words though." - Satoshi Nakamoto[8] It is estimated that Nakamoto now owns over $100 million worth of bitcoins, as of May 2013.[9] Nakamoto’s involvement with the Bitcoin project faded in mid-2010, after which the open-source community, headed by Gavin Andresen, took over responsibility for the source code.[2] Why do bitcoins have value?

Bibliography [1] Satoshi Nakamoto, "Bitcoin: A Peer-to-Peer Electronic Cash System," referenced in e-mail sent to cryptography@metzdowd.com mailing list, October 31, 2008. http://www.mail-archive.com/cryptography@metzdowd.com/msg09959.html [2] "Satoshi Nakamoto," Bitcoin Wiki, June 13, 2013. https://en.bitcoin.it/wiki/Satoshi_Nakamoto#Work [3] "Bitcoin Ladder," Bitcoin Wiki, June 14, 2013. https://en.bitcoin.it/wiki/Bitcoin_Ladder#Top_companies [4] Andy Greenberg, "Black Market Drug Site ’Silk Road’ Booming: $22 Million In Annual Sales," Forbes, August 6, 2012. http://www.forbes.com/sites/andygreenberg/2012/08/06/black-market-drug-site-silk-road-booming-22-million-in-annual-mostly-illegal-sales/ [5] Reuben Grinberg, "Bitcoin: An Innovative Alternative Digital Currency," Hastings Science & Technology Law Journal (4) (2011): 160. http://ssrn.com/abstract=1817857 [6] Ralph Merkle, "A certified digital signature," Proceedings on Advances in cryptology (CRYPTO ’89) (1989): 218-238. Originally submitted to CACM, 1979. http://www.merkle.com/papers/Certified1979.pdf [7] Claude Shannon, "Communication Theory of Secrecy Systems," Bell System Technical Journal 28 (4) (1949): 656715. [8] Satoshi Nakamoto, e-mail to cryptography@metzdowd.com mailing list, November 14, 2008. http://www.mail-archive.com/cryptography@metzdowd.com/msg10001.html [9] Adrianne Jeffries, "Four years and $100 million later, Bitcoin’s mysterious creator remains anonymous," The Verge, May 6, 2013. http://www.theverge.com/2013/5/6/4295028/report-satoshi-nakamoto [10] Timothy Lee, "An Illustrated History Of Bitcoin Crashes," Forbes, April 11, 2013. http://www.forbes.com/sites/timothylee/2013/04/11/an-illustrated-history-of-bitcoin-crashes/ [11] Laurie Law, Susan Sabett, Jerry Solinas, "How to make a mint: the cryptography of anonymous electronic cash," National Security Agency, Office of Information Security Research and Technology, Cryptology Division, June 18, 1996. http://groups.csail.mit.edu/mac/classes/6.805/articles/money/nsamint/nsamint.htm [12] David Chaum, "Blind signatures for untraceable payments," Advances in Cryptology Proceedings of Crypto 82 (3) (1983): 199-203


pages: 515 words: 126,820

Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World by Don Tapscott, Alex Tapscott

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Airbnb, altcoin, asset-backed security, autonomous vehicles, barriers to entry, bitcoin, blockchain, Bretton Woods, business process, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, cloud computing, cognitive dissonance, commoditize, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, crowdsourcing, cryptocurrency, disintermediation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Erik Brynjolfsson, ethereum blockchain, failed state, fiat currency, financial innovation, Firefox, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, Galaxy Zoo, George Gilder, glass ceiling, Google bus, Hernando de Soto, income inequality, informal economy, information asymmetry, intangible asset, interest rate swap, Internet of things, Jeff Bezos, jimmy wales, Kickstarter, knowledge worker, Kodak vs Instagram, Lean Startup, litecoin, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, microcredit, mobile money, money market fund, Network effects, new economy, Oculus Rift, off grid, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, performance metric, Peter Thiel, planetary scale, Ponzi scheme, prediction markets, price mechanism, Productivity paradox, QR code, quantitative easing, ransomware, Ray Kurzweil, renewable energy credits, rent-seeking, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, seigniorage, self-driving car, sharing economy, Silicon Valley, Skype, smart contracts, smart grid, social graph, social software, Stephen Hawking, Steve Jobs, Steve Wozniak, Stewart Brand, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, The Wisdom of Crowds, transaction costs, Turing complete, Turing test, Uber and Lyft, unbanked and underbanked, underbanked, unorthodox policies, wealth creators, X Prize, Y2K, Zipcar

Imagine a technology that could preserve our freedom to choose for ourselves and our families, to express these choices in the world, and to control our own destiny, no matter where we lived or were born. What new tools and new jobs could we create with those capabilities? What new businesses and services? How should we think about the opportunities? The answers were right in front of us, compliments of Satoshi Nakamoto. THE SEVEN DESIGN PRINCIPLES We believe that this next era could be inspired by Satoshi Nakamoto’s vision, designed around a set of implicit principles, and realized by the collaborative spirit of many passionate and equally talented leaders in the community. His grand vision was limited to money, not to some greater goal of creating a second generation of the Internet. There was no discussion of reinventing the firm, changing our institutions, or transforming civilization for the better.

God being the ultimate in confessional discretion, no party would learn anything more about the other parties’ inputs than they could learn from their own inputs and the output.”4 His point was powerful: Doing business on the Internet requires a leap of faith. Because the infrastructure lacks the much-needed security, we often have little choice but to treat the middlemen as if they were deities. A decade later in 2008, the global financial industry crashed. Perhaps propitiously, a pseudonymous person or persons named Satoshi Nakamoto outlined a new protocol for a peer-to-peer electronic cash system using a cryptocurrency called bitcoin. Cryptocurrencies (digital currencies) are different from traditional fiat currencies because they are not created or controlled by countries. This protocol established a set of rules—in the form of distributed computations—that ensured the integrity of the data exchanged among these billions of devices without going through a trusted third party.

We believe the advent of a decentralized world-wide ledger coupled with powerful encryption to mask the identities of buyer and seller will be attractive to the art world.”28 The artist becomes what could be called a “rights monetizer” with the technology making deals and collecting revenue in real time. You could apply this same model to other fields as well. In science, a researcher could publish a paper to a limited audience of peers, as Satoshi Nakamoto did, and receive reviews and the credibility to publish to a larger audience, rather than assigning all rights to a scientific journal. The paper might even be available for free but other scientists could subscribe to a deeper analysis or threaded discussions with the author about it. She could make her raw data available or perhaps share data with other scientists as part of a smart contract.


pages: 161 words: 44,488

The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology by William Mougayar

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Airbnb, airport security, Albert Einstein, altcoin, Amazon Web Services, bitcoin, Black Swan, blockchain, business process, centralized clearinghouse, Clayton Christensen, cloud computing, cryptocurrency, disintermediation, distributed ledger, Edward Snowden, en.wikipedia.org, ethereum blockchain, fault tolerance, fiat currency, fixed income, global value chain, Innovator's Dilemma, Internet of things, Kevin Kelly, Kickstarter, market clearing, Network effects, new economy, peer-to-peer, peer-to-peer lending, prediction markets, pull request, QR code, ride hailing / ride sharing, Satoshi Nakamoto, sharing economy, smart contracts, social web, software as a service, too big to fail, Turing complete, web application

Although cryptographers, mathematicians and coders have been working on increasingly specific and advanced protocols in order to get stronger and stronger privacy and authenticity guarantees out of various systems—from electronic cash to voting to file transfer—progress was slow for over 30 years. The innovation of the blockchain—or, more generally, the innovation of public economic consensus by Satoshi Nakamoto in 2009—proved to be the one missing piece of the puzzle that single-handedly gave the industry its next giant leap forward. The political environment seemed to almost snap into place: the great financial crisis in 2008 spurred growing distrust in mainstream finance, including both corporations and the governments that are normally supposed to regulate them, and was the initial spark that drove many to seek out alternatives.

Block by block, we will accumulate our own chains of knowledge, and we will learn and understand the blockchain, what it changes, and the implications of such change. Today, we google for everything, mostly information or products. Tomorrow, we will perform the equivalent of “googling” to verify records, identities, authenticity, rights, work done, titles, contracts, and other valuable asset-related processes. There will be digital ownership certificates for everything. Just like we cannot double spend digital money anymore (thanks to Satoshi Nakamoto's invention), we will not be able to double copy or forge official certificates once they are certified on a blockchain. That was a missing piece of the information revolution, which the blockchain fixes. I still remember the initial excitement around being able to track a shipped package on the Web when FedEx introduced this capability for the first time in 1994. Today, we take that type of service for granted, but this particular feature was a watershed use case that demonstrated what we could do on the early Web.

SOFTWARE, GAME THEORY AND CRYPTOGRAPHY Another way to understand the blockchain is in seeing it as a triad of combustion of the known fields of 1) game theory, 2) cryptography science, and 3) software engineering. Separately, these fields have existed for a long time, but for the first time, they have together intersected harmoniously and morphed inside blockchain technology. Game theory is ‘the study of mathematical models of conflict and cooperation between intelligent rational decision-makers.”4 And this is related to the blockchain because the Bitcoin blockchain, originally conceived by Satoshi Nakamoto, had to solve a known game theory conundrum called the Byzantine Generals Problem.5 Solving that problem consists in mitigating any attempts by a small number of unethical Generals who would otherwise become traitors, and lie about coordinating their attack to guarantee victory. This is accomplished by enforcing a process for verifying the work that was put into crafting these messages, and time-limiting the requirement for seeing untampered messages in order to ensure their validity.


pages: 395 words: 116,675

The Evolution of Everything: How New Ideas Emerge by Matt Ridley

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affirmative action, Affordable Care Act / Obamacare, Albert Einstein, Alfred Russel Wallace, altcoin, anthropic principle, anti-communist, bank run, banking crisis, barriers to entry, bitcoin, blockchain, British Empire, Broken windows theory, Columbian Exchange, computer age, Corn Laws, cosmological constant, creative destruction, Credit Default Swap, crony capitalism, crowdsourcing, cryptocurrency, David Ricardo: comparative advantage, demographic transition, Deng Xiaoping, discovery of DNA, Donald Davies, double helix, Downton Abbey, Edward Glaeser, Edward Lorenz: Chaos theory, Edward Snowden, endogenous growth, epigenetics, ethereum blockchain, facts on the ground, falling living standards, Ferguson, Missouri, financial deregulation, financial innovation, Frederick Winslow Taylor, Geoffrey West, Santa Fe Institute, George Gilder, George Santayana, Gunnar Myrdal, Henri Poincaré, hydraulic fracturing, imperial preference, income per capita, indoor plumbing, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Jane Jacobs, Jeff Bezos, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kevin Kelly, Khan Academy, knowledge economy, land reform, Lao Tzu, long peace, Lyft, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, means of production, meta analysis, meta-analysis, mobile money, money: store of value / unit of account / medium of exchange, Mont Pelerin Society, moral hazard, Necker cube, obamacare, out of africa, packet switching, peer-to-peer, phenotype, Pierre-Simon Laplace, price mechanism, profit motive, RAND corporation, random walk, Ray Kurzweil, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, rising living standards, road to serfdom, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, sharing economy, smart contracts, South Sea Bubble, Steve Jobs, Steven Pinker, The Wealth of Nations by Adam Smith, Thorstein Veblen, transaction costs, women in the workforce

Forensic analysis of his style, his idiosyncrasies, his likely age and the pattern of his activity has led the author Dominic Frisby and others – including a team of forty forensic linguists from Birmingham University – to the conclusion that Satoshi Nakamoto is probably Nick Szabo. Suspiciously, the normally prolific Szabo went unusually silent around the time Satoshi Nakamoto became active, and vice versa. However, Szabo has denied on Twitter that he is Satoshi. (Some still think that he and Hal Finney collaborated as Satoshi, giving each deniability.) Szabo himself keeps a low profile. No photograph of him can be found on the net. Whoever he is, ‘Satoshi Nakamoto’ knows a lot about computer programming and economic history – a rare combination. There is little doubt that bitcoin is one of the most significant inventions of our lifetime (though I doubt it would have remained uninvented if Satoshi had not existed: someone else would have come up with some form of self-verifying currency).

Then there was e-gold, a digital payments system run from the Caribbean by an oncologist called Doug Jackson that rocketed to $1.5 billion in transactions before being shut down on the grounds that it was allowing illegal money transmission. Governments do not take kindly to money that is outside their control. Hence the shyness of bitcoin’s founder. The mysterious founder Who is Satoshi Nakamoto? Newsweek magazine thought it had found him in March 2014 when it identified a sixty-four-year-old Japanese-American programmer named Dorian Satoshi Nakamoto living near Los Angeles. The baffled and beleaguered Dorian, an unemployed man in poor health with a clumsy command of English, protested that he had nothing to do with bitcoin, did not understand what it was, and thought it was called ‘bitcom’. And, he asked pertinently, why would he use part of his real name if he wanted to stay anonymous?

By the 2000s he was musing about something called bitgold, an imaginary software product that would mimic the properties of gold: it would be scarce and hard to acquire, but easy for others to verify, and thus could be trusted as a store of value. Clearly, he was trying to think how to recreate online the key steps in the evolution of real money. Some years went by. Then, on 18 August 2008, a month before the financial crisis broke in earnest, a new domain name was registered anonymously: bitcoin.org. Two weeks later, somebody with the user name ‘Satoshi Nakamoto’ posted a nine-page paper outlining an idea for a peer-to-peer electronic cash system called bitcoin. The bitcoin system went live a few months later, on the day the British government reported its second bailout of the banks, an event referred to by Satoshi, who quoted a headline from The Times in his announcement of bitcoin’s birth. A month later Satoshi announced on the Peer-to-Peer Foundation website: ‘I’ve developed a new open source P2P e-cash system called Bitcoin.


pages: 472 words: 117,093

Machine, Platform, Crowd: Harnessing Our Digital Future by Andrew McAfee, Erik Brynjolfsson

3D printing, additive manufacturing, AI winter, Airbnb, airline deregulation, airport security, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, artificial general intelligence, augmented reality, autonomous vehicles, backtesting, barriers to entry, bitcoin, blockchain, book scanning, British Empire, business process, carbon footprint, Cass Sunstein, centralized clearinghouse, Chris Urmson, cloud computing, cognitive bias, commoditize, complexity theory, computer age, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Dean Kamen, discovery of DNA, disintermediation, distributed ledger, double helix, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, ethereum blockchain, everywhere but in the productivity statistics, family office, fiat currency, financial innovation, George Akerlof, global supply chain, Hernando de Soto, hive mind, information asymmetry, Internet of things, inventory management, iterative process, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, joint-stock company, Joseph Schumpeter, Kickstarter, law of one price, Lyft, Machine translation of "The spirit is willing, but the flesh is weak." to Russian and back, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, moral hazard, multi-sided market, Myron Scholes, natural language processing, Network effects, new economy, Norbert Wiener, Oculus Rift, PageRank, pattern recognition, peer-to-peer lending, performance metric, Plutocrats, plutocrats, precision agriculture, prediction markets, pre–internet, price stability, principal–agent problem, Ray Kurzweil, Renaissance Technologies, Richard Stallman, ride hailing / ride sharing, risk tolerance, Ronald Coase, Satoshi Nakamoto, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, slashdot, smart contracts, Snapchat, speech recognition, statistical model, Steve Ballmer, Steve Jobs, Steven Pinker, supply-chain management, TaskRabbit, Ted Nelson, The Market for Lemons, The Nature of the Firm, Thomas L Friedman, too big to fail, transaction costs, transportation-network company, traveling salesman, two-sided market, Uber and Lyft, Uber for X, Watson beat the top human players on Jeopardy!, winner-take-all economy, yield management, zero day

Keynes saw that the ideas of prominent “worldly philosophers”* like Adam Smith, Karl Marx, David Ricardo, Friedrich Hayek, and Joseph Schumpeter reach far outside the discipline of economics. They change how people think about fairness and justice, how companies organize themselves and innovate, how governments approach taxation and trade, and so on. Economists think about exchange, a fundamental and universal human activity, so their biggest ideas on the subject have had a huge impact. Bitcoin: The Pseudonymous Revolution Satoshi Nakamoto’s ideas have also had a huge impact, even though nobody knows who he or she is.† On October 31, 2008, a person or group going by that name posted online a short paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” It addressed a straightforward question: Why do online payments have to involve banks, credit card companies, and other financial intermediaries? Why can’t they be like cash payments in the physical world?

Even though the 7,500 Bitcoins on the hard drive were at that time worth about $7.5 million, Howells did not mount a search for it. The miners and others who built the Bitcoin network were behaving just as Keynes had predicted, but with some fascinating twists. They weren’t madmen, and most of them weren’t in authority, but they were still “distilling their frenzy” not from some academic scribbler, but instead from a pseudonymous one: Satoshi Nakamoto. The Ledger, Not the Currency: Waking Up to the Blockchain’s Potential Throughout this time, most mainstream economists were skeptical, even dismissive, of Bitcoin’s potential as a rival to the world’s established currencies. Two of the main functions of any money, they pointed out, were a means of exchange (I give you these dollars or euros or yen and you give me that house or car or chicken dinner) and a store of value (my total net worth is X dollars, euros, or yen; with this amount of wealth I can buy so many houses, cars, or chicken dinners).

. §§ The parties involved in a blockchain transaction can decide to include a transaction fee, which will be awarded to the miner that creates the block. These voluntary fees are intended as an additional incentive to miners. ¶¶ Settlement risk is the possibility that one side of the transaction might not deliver the shares as promised once the other party has paid for them, or vice versa. ## Many believe that Szabo is, in fact, Satoshi Nakamoto. He has repeatedly denied this claim. *** Our literary agent is the eminently trustworthy Raphael Sagalyn. ††† There were fewer signals to Norton that the two of us would be good authors for them to work with. We’re grateful that they took a chance on us. ‡‡‡ If we were worried that Norton might not have enough money to pay us, we could include an escrow account or other contingency within the smart contract.


pages: 271 words: 52,814

Blockchain: Blueprint for a New Economy by Melanie Swan

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23andMe, Airbnb, altcoin, Amazon Web Services, asset allocation, banking crisis, basic income, bioinformatics, bitcoin, blockchain, capital controls, cellular automata, central bank independence, clean water, cloud computing, collaborative editing, Conway's Game of Life, crowdsourcing, cryptocurrency, disintermediation, Edward Snowden, en.wikipedia.org, ethereum blockchain, fault tolerance, fiat currency, financial innovation, Firefox, friendly AI, Hernando de Soto, intangible asset, Internet Archive, Internet of things, Khan Academy, Kickstarter, lifelogging, litecoin, Lyft, M-Pesa, microbiome, Network effects, new economy, peer-to-peer, peer-to-peer lending, peer-to-peer model, personalized medicine, post scarcity, prediction markets, QR code, ride hailing / ride sharing, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, SETI@home, sharing economy, Skype, smart cities, smart contracts, smart grid, software as a service, technological singularity, Turing complete, unbanked and underbanked, underbanked, web application, WikiLeaks

It is as if PayPal had called the Internet “PayPal,” upon which the PayPal protocol was run, to transfer the PayPal currency. The blockchain industry is using these terms interchangeably sometimes because it is still in the process of shaping itself into what could likely become established layers in a technology stack. Bitcoin was created in 2009 (released on January 9, 20096) by an unknown person or entity using the name Satoshi Nakamoto. The concept and operational details are described in a concise and readable white paper, “Bitcoin: A Peer-to-Peer Electronic Cash System.”7 Payments using the decentralized virtual currency are recorded in a public ledger that is stored on many—potentially all—Bitcoin users’ computers, and continuously viewable on the Internet. Bitcoin is the first and largest decentralized cryptocurrency.

However, nearly every other US government agency—including FinCEN (financial crimes enforcement network), banking regulators, and the CFPB, SEC, CFTC, and DOJ—regulate Bitcoin as a currency.31 Chapter 2. Blockchain 2.0: Contracts From its very beginning, complexity beyond currency and payments was envisioned for Bitcoin; the possibilities for programmable money and contracts were baked into the protocol at its invention. A 2010 communication from Satoshi Nakamoto indicates that “the design supports a tremendous variety of possible transaction types that I designed years ago. Escrow transactions, bonded contracts, third-party arbitration, multiparty signature, etc. If Bitcoin catches on in a big way, these are things we’ll want to explore in the future, but they all had to be designed at the beginning to make sure they would be possible later.”32 As we’ll see in Chapter 3, these structures could be applied beyond financial transactions, to any kind of transaction—even “figurative” ones.

These analogies might be like calling Chrome a “Napster 2.0,” or Facebook or AdBlock a “Web Browser 3.0.” The key idea is that the decentralized transaction ledger functionality of the blockchain could be used to register, confirm, and transfer all manner of contracts and property. Table 2-1 lists some of the different classes and examples of property and contracts that might be transferred with the blockchain. Satoshi Nakamoto started by specifying escrow transactions, bonded contracts, third-party arbitration, and multiparty signature transactions. All financial transactions could be reinvented on the blockchain, including stock, private equity, crowdfunding instruments, bonds, mutual funds, annuities, pensions, and all manner of derivatives (futures, options, swaps, and other derivatives). Table 2-1. Blockchain applications beyond currency (adapted from the Ledra Capital Mega Master Blockchain List; see Appendix B)34 Class Examples General Escrow transactions, bonded contracts, third-party arbitration, multiparty signature transactions Financial transactions Stock, private equity, crowdfunding, bonds, mutual funds, derivatives, annuities, pensions Public records Land and property titles, vehicle registrations, business licenses, marriage certificates, death certificates Identification Driver’s licenses, identity cards, passports, voter registrations Private records IOUs, loans, contracts, bets, signatures, wills, trusts, escrows Attestation Proof of insurance, proof of ownership, notarized documents Physical asset keys Home, hotel rooms, rental cars, automobile access Intangible assets Patents, trademarks, copyrights, reservations, domain names Public records, too, can be migrated to the blockchain: land and property titles, vehicle registrations, business licenses, marriage certificates, and death certificates.


pages: 364 words: 99,897

The Industries of the Future by Alec Ross

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23andMe, 3D printing, Airbnb, algorithmic trading, AltaVista, Anne Wojcicki, autonomous vehicles, banking crisis, barriers to entry, Bernie Madoff, bioinformatics, bitcoin, blockchain, Brian Krebs, British Empire, business intelligence, call centre, carbon footprint, cloud computing, collaborative consumption, connected car, corporate governance, Credit Default Swap, cryptocurrency, David Brooks, disintermediation, Dissolution of the Soviet Union, distributed ledger, Edward Glaeser, Edward Snowden, en.wikipedia.org, Erik Brynjolfsson, fiat currency, future of work, global supply chain, Google X / Alphabet X, industrial robot, Internet of things, invention of the printing press, Jaron Lanier, Jeff Bezos, job automation, John Markoff, knowledge economy, knowledge worker, lifelogging, litecoin, M-Pesa, Marc Andreessen, Mark Zuckerberg, Mikhail Gorbachev, mobile money, money: store of value / unit of account / medium of exchange, new economy, offshore financial centre, open economy, Parag Khanna, peer-to-peer, peer-to-peer lending, personalized medicine, Peter Thiel, precision agriculture, pre–internet, RAND corporation, Ray Kurzweil, recommendation engine, ride hailing / ride sharing, Rubik’s Cube, Satoshi Nakamoto, selective serotonin reuptake inhibitor (SSRI), self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart cities, social graph, software as a service, special economic zone, supply-chain management, supply-chain management software, technoutopianism, The Future of Employment, underbanked, Vernor Vinge, Watson beat the top human players on Jeopardy!, women in the workforce, Y Combinator, young professional

Bitcoin came about both as a result of declining trust in the traditional financial system during the financial crisis and because of its technological advance in creating a trustable mechanism for monetary exchange online. On October 31, 2008, a research paper, “Bitcoin: A Peer-to-Peer Electronic Cash System,” was published on a cryptography listserv by a mysterious author identified as “Satoshi Nakamoto” who has kept his/her (their?) identity unknown. It called for the creation of the world’s “first decentralized digital currency.” Satoshi Nakamoto condemned state-based currencies: The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.

Fraud is further diminished by the fact that every bitcoin carries its history with it; to try to counterfeit a coin would require counterfeiting a false lineage going back all the way to the beginning of Bitcoin. It would never be accepted by the system, since the millions of copies of the ledger that reside throughout the rest of the Bitcoin network would not have any record of this counterfeit coin or its invented history. A widely distributed ledger lets everyone know who has what and prevents any individual from barging in with counterfeited property. The major headache that Satoshi Nakamoto conquered, and that every previous cryptocurrency had failed to manage, was the question of how to update that decentralized ledger: How could you make sure that the millions of copies of the master ledger, which are located far and wide throughout the Bitcoin network, are all the same, all accurate, all up to date, without anyone cheating? The answer to this question is what gives the blockchain its name and what makes decentralized digital trust actually possible.

Litecoin markets itself as being more abundant and faster to mine than bitcoins. Charlie Lee, a former Google software engineer, designed Litecoin in his spare time and launched it in 2011 to complement Bitcoin. Lee said, “People like choices. You want to diversify your cryptocurrency investments.” He has described Litecoin as “silver to Bitcoin’s gold,” and he designed the Litecoin software to produce 84 million litecoins in comparison to Satoshi Nakamoto’s design for 21 million bitcoins. Lee also decided to use scrypt cryptography to reduce mining rates per unit down to 2.5 minutes in comparison to Bitcoin’s 10 minutes. Lee also chose this type of cryptography, which relies on computer memory rather than processing power, to avoid the kind of high-carbon arms race he sees among miners in the Bitcoin community. Ripple markets itself as a global payment platform by allowing members to pay in any currency—from its own currency, the ripple (XRP), to bitcoins to state-based currencies.


pages: 410 words: 119,823

Radical Technologies: The Design of Everyday Life by Adam Greenfield

3D printing, Airbnb, augmented reality, autonomous vehicles, bank run, barriers to entry, basic income, bitcoin, blockchain, business intelligence, business process, call centre, cellular automata, centralized clearinghouse, centre right, Chuck Templeton: OpenTable, cloud computing, collective bargaining, combinatorial explosion, Computer Numeric Control, computer vision, Conway's Game of Life, cryptocurrency, David Graeber, dematerialisation, digital map, distributed ledger, drone strike, Elon Musk, ethereum blockchain, facts on the ground, fiat currency, global supply chain, global village, Google Glasses, IBM and the Holocaust, industrial robot, informal economy, information retrieval, Internet of things, James Watt: steam engine, Jane Jacobs, Jeff Bezos, job automation, John Conway, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, joint-stock company, Kevin Kelly, Kickstarter, late capitalism, license plate recognition, lifelogging, M-Pesa, Mark Zuckerberg, means of production, megacity, megastructure, minimum viable product, money: store of value / unit of account / medium of exchange, natural language processing, Network effects, New Urbanism, Occupy movement, Oculus Rift, Pareto efficiency, pattern recognition, Pearl River Delta, performance metric, Peter Eisenman, Peter Thiel, planetary scale, Ponzi scheme, post scarcity, RAND corporation, recommendation engine, RFID, rolodex, Satoshi Nakamoto, self-driving car, sentiment analysis, shareholder value, sharing economy, Silicon Valley, smart cities, smart contracts, sorting algorithm, special economic zone, speech recognition, stakhanovite, statistical model, stem cell, technoutopianism, Tesla Model S, the built environment, The Death and Life of Great American Cities, The Future of Employment, transaction costs, Uber for X, universal basic income, urban planning, urban sprawl, Whole Earth Review, WikiLeaks, women in the workforce

We remain at the proof-of-concept stage: we now know that in principle, these things can be done. But all the social and intellectual heavy lifting begins now. 5 Cryptocurrency The computational guarantee of value All written accounts of the technological development we know as “the blockchain” begin and end the same way. They note its origins in the cryptocurrency called Bitcoin, and go on to explain how Bitcoin’s obscure, pseudonymous, possibly even multiple inventor “Satoshi Nakamoto” used it to solve the problems of trust that had foxed all previous attempts at networked digital money. They all make much of the blockchain’s potential to transform the way we exchange value, in every context and at every level of society. And they all gesture at the exciting possibilities that lie beyond currency: the world of smart contracts, distributed applications, autonomous organizations and post-human economies, all mediated by “trustless” cryptographic techniques.

With its carnage of foreclosures, evictions, layoffs and bank runs, the acute crisis of 2008 sufficed to prove to many that the core financial institutions of the West couldn’t be trusted—and if not the central banks, how much less so a bunch of cowboy startups? Perhaps people simply had more pressing concerns on their mind, and weren’t necessarily inclined to take a wild leap into the technological unknown. Or maybe that’s looking at things the wrong way around. Maybe a time of cratering confidence in existing institutions is precisely the correct moment at which to propose something fundamentally new. Enter “Satoshi Nakamoto.”2 Nakamoto’s was the sole name on a nine-page paper describing the proposed design of a new digital currency, first posted to the Cryptography mailing list on Halloween 2008, and in one or two other places around the internet soon thereafter.3 There is still very little we can say about “him” for sure, even whether he wasn’t actually a team of close collaborators producing work under a collective pseudonym.

How might such a thing be useful? Who devised these tools, and why? It sometimes seems that every age gets the technological icons it deserves, and if so it would be hard to invent a character more pungently appropriate to our own than Vitalik Buterin. Though an identifiable, individual, flesh-and-blood human being, Buterin is in every other way almost as much of a cipher as the mysterious Satoshi Nakamoto. We know a few biographical facts; we know too that he is evidently a fierce believer in the decentralization of power. But otherwise he is a blank. So little personal information about him is available that it’s all but impossible to get a sense of who he is, or what values he might cherish beyond this one core conviction.1 Born in Russia in 1994, Buterin was just shy of twenty when he dropped out of Ontario’s Waterloo University, spurred by a $100,000 grant from the foundation of libertarian venture capitalist Peter Thiel.


pages: 200 words: 47,378

The Internet of Money by Andreas M. Antonopoulos

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AltaVista, altcoin, bitcoin, blockchain, clean water, cognitive dissonance, cryptocurrency, ethereum blockchain, financial exclusion, global reserve currency, litecoin, London Interbank Offered Rate, Marc Andreessen, Oculus Rift, packet switching, peer-to-peer lending, Ponzi scheme, QR code, ransomware, reserve currency, Satoshi Nakamoto, self-driving car, Skype, smart contracts, the medium is the message, trade route, underbanked, WikiLeaks, zero-sum game

Just that allows you to grasp how disruptive this technology is going to be in terms of international payment systems. But this is just the beginning. Bitcoin is a digital currency that came into existence in 2008 as an invention by a person called Satoshi Nakamoto. He published a paper where he posited that he had found the way to create a decentralized network that could achieve consensus, agreement, without any central controlling authority. Now, if you have studied computer science or distributed systems, this is known as the Byzantine Generals’ Problem. It was first described in 1982. Until 2008, it was an unsolved problem. Then, Satoshi Nakamoto said, "I have solved it." Guess what happened next? Everybody laughed, ignored him, and dismissed him. He published his paper, and three months later, he published software that allowed people to start building the bitcoin network.

He published his paper, and three months later, he published software that allowed people to start building the bitcoin network. Bitcoin is not a company. It is not an organization. It is a standard or a protocol just like TCP/IP, or the internet. It’s not owned by anyone. It operates by simple mathematical rules that everyone who participates in the network agrees on. Through this simple mechanism, through this invention of Satoshi Nakamoto, bitcoin is able to allow a completely decentralized network of computers to agree on what transactions have occurred on a network, essentially agreeing on who currently has the money. So, if I send money from my account to somebody else’s account in this peer-to-peer, completely decentralized network, it’s just like sending an email. There’s no one in the middle. Every ten minutes, the entire network agrees on what transactions have happened, without any centralized authority, by a simple election that occurs electronically.


pages: 329 words: 95,309

Digital Bank: Strategies for Launching or Becoming a Digital Bank by Chris Skinner

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algorithmic trading, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, augmented reality, bank run, Basel III, bitcoin, business intelligence, business process, business process outsourcing, call centre, cashless society, clean water, cloud computing, corporate social responsibility, credit crunch, crowdsourcing, cryptocurrency, demand response, disintermediation, don't be evil, en.wikipedia.org, fault tolerance, fiat currency, financial innovation, Google Glasses, high net worth, informal economy, Infrastructure as a Service, Internet of things, Jeff Bezos, Kevin Kelly, Kickstarter, M-Pesa, margin call, mass affluent, mobile money, Mohammed Bouazizi, new economy, Northern Rock, Occupy movement, Pingit, platform as a service, Ponzi scheme, prediction markets, pre–internet, QR code, quantitative easing, ransomware, reserve currency, RFID, Satoshi Nakamoto, Silicon Valley, smart cities, software as a service, Steve Jobs, strong AI, Stuxnet, trade route, unbanked and underbanked, underbanked, upwardly mobile, We are the 99%, web application, Y2K

Instead of a central bank issuing the currency, Bitcoins are issued by anyone with a computer or smartphone, and are issued using encryption algorithms. In other words, extremely difficult mathematical problems are incorporated into each coin and transactions are cryptographically authenticated. This makes Bitcoins a combination of a commodity and a fiat currency, with the creation of Bitcoin dating back to 2008 when Satoshi Nakamoto published a white paper about a peer-to-peer exchange of value for the internet age. [28] The coins are digital currency designed to be controlled through encryption, rather than a centralised authority, and potentially operate in exactly the same way as cash. Bitcoins are fully exchangeable as an anonymous form of currency in real-time across the internet and Point-of-Sale, with core features that they can be: Sent to anyone with a Bitcoin address; Accessed from anywhere with an Internet connection; Anybody can start buying, selling or accepting Bitcoins regardless of their location; Completely distributed with no bank or payment processor between users (this decentralization is the basis for Bitcoin’s security and freedom); and Transactions are free (for now, this will change).

The reason why Bitcoins are viewed as dangerous by governments is for exactly the reasons cited earlier – they cannot be controlled – and there will be a long and arduous battle between controllers and the uncontrolled. This is the nature of the Wikiconomy. Nevertheless, I have invested in Bitcoins and suggest you do too, as it is very likely that they will be a major store of value for years to come in the near term. Bitcoin’s timeline[29] 2008–2009 In 2008, Satoshi Nakamoto posted a paper describing the Bitcoin protocol on the internet. In 2009, the Bitcoin network came into existence with the release of the first open source Bitcoin client and the issuance of the first Bitcoins. 2010 The prices for the first Bitcoin transactions were negotiated by individuals on the Bitcointalk forums. One notable transaction involved a 10,000 BTC pizza. On 6 August, a major vulnerability in the Bitcoin protocol was spotted.

The other business will be for firms that want to access international markets from one country and have issues with chargebacks and structures. They may be shipping under $35 goods or services, or shipping a digital service rather than physical goods, and these firms may find that Bitcoin, relying solely on code and mathematics, is the only currency they could use. It’s a bit technical however, isn’t it? That’s the biggest barrier to Bitcoin. It’s not end-user friendly. Every client is working off the first codebase. Satoshi Nakamoto solved the last logic problem to create a decentralized currency. He’s an academic, incredibly smart, but not a computer engineer. The code was not written in the most efficient way therefore, but every client today has built off this code. Now, for the first time, we are rewriting the code from the ground up to be more efficient and effective. The new code is being built from scratch in a modular fashion, so merchants can take it and change it and it will be much faster and end-user friendly.


pages: 275 words: 84,980

Before Babylon, Beyond Bitcoin: From Money That We Understand to Money That Understands Us (Perspectives) by David Birch

agricultural Revolution, Airbnb, bank run, banks create money, bitcoin, blockchain, Bretton Woods, British Empire, Broken windows theory, Burning Man, capital controls, cashless society, Clayton Christensen, clockwork universe, creative destruction, credit crunch, cross-subsidies, crowdsourcing, cryptocurrency, David Graeber, dematerialisation, Diane Coyle, distributed ledger, double entry bookkeeping, ethereum blockchain, facts on the ground, fault tolerance, fiat currency, financial exclusion, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, index card, informal economy, Internet of things, invention of the printing press, invention of the telegraph, invention of the telephone, invisible hand, Irish bank strikes, Isaac Newton, Jane Jacobs, Kenneth Rogoff, knowledge economy, Kuwabatake Sanjuro: assassination market, large denomination, M-Pesa, market clearing, market fundamentalism, Marshall McLuhan, Martin Wolf, mobile money, money: store of value / unit of account / medium of exchange, new economy, Northern Rock, Pingit, prediction markets, price stability, QR code, quantitative easing, railway mania, Ralph Waldo Emerson, Real Time Gross Settlement, reserve currency, Satoshi Nakamoto, seigniorage, Silicon Valley, smart contracts, social graph, special drawing rights, technoutopianism, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, wage slave, Washington Consensus, wikimedia commons

Our argument was that emerging technologies – particularly the synthesis of cryptographic software and tamper-resistant chips – would, we said (as did many others), make the cost of entry into the currency ‘market’ quite small. Many organizations beyond central banks and commercial banks might then wish to create private money. This could be as a means of supplying credit, as envisaged by the Nobel-winning economist Friedrich Hayek in 1970s, or it could be a means of encouraging customer loyalty, as explored by lateral thinker Edward de Bono in the 1990s. There might also be idealistic reasons, as explored by ‘Satoshi Nakamoto’, the mysterious inventor of the cryptographic asset Bitcoin (Vigna and Casey 2015), and others since 2008. I will explore all these possibilities in my ‘5Cs’ of money creation (central banks, commercial banks, companies, communities and cryptography) in more detail later in this book, before settling on a narrative for the ‘next money’ that is likely to surprise you. * * * * He then goes on to describe what are in fact offline pre-authorized debit cards, but that is by-the-by. ** One of the only twelve of these coins known to still exist was acquired by a Texan collector in August 2016 for an undisclosed sum.

We’re using the mentality of coins and the institutions of paper to try and deliver the money for a new economy. It is time for the debate on redesign that Christine Desan called for. Chapter 13 Counting on cryptography A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. — ‘Satoshi Nakamoto’ (2008) Having said earlier that the iconic technology of money is the plastic card, right now the iconic money of the future seems to be cryptocurrency. Spurred on by the widespread interest in Bitcoin, there are many people looking at the concept and wondering whether cryptocurrency – money that depends on cryptography rather than the belief of a community – might be a feature in the emerging money landscape.

Despite the widespread interest, Bitcoins do not seem to be gaining much traction in the ‘real world’ of payments. Wait? Bitcoin? Bitcoin is a decentralized, peer-to-peer means of exchange. If you have a Bitcoin, which is just a string of numbers, you can send that Bitcoin (or a subdivision of it) to anyone else. (If you want to understand how Bitcoin works, a good place to start is the original paper on the topic: ‘Bitcoin: a peer-to-peer electronic cash system’ by ‘Satoshi Nakamoto’.) I’m no expert on cryptography but there’s no reason I know of to question the basic idea: use a computationally difficult challenge to create strings of bits that it’s hard to make but easy to copy, then use digital signatures for transactions. I get my Bitcoin (a string of bits) and then to transfer them to you I add a digital signature and send them to you. Every time we do a transaction, we tell (essentially) everybody else that the bits now belong to you.


pages: 50 words: 15,603

Orwell Versus the Terrorists: A Digital Short by Jamie Bartlett

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augmented reality, barriers to entry, bitcoin, blockchain, crowdsourcing, cryptocurrency, Edward Snowden, ethereum blockchain, Kuwabatake Sanjuro: assassination market, Satoshi Nakamoto, technoutopianism, Zimmermann PGP

And there are even more revolutionary plans in the pipeline. An alternative way of organising the internet is being built as we speak, an internet where no one is in control, where no one can find you or shut you down, where no one can manipulate your content. A decentralised world that is both private and impossible to censor. Back in 2009, in an obscure cryptography chat forum, a mysterious man called Satoshi Nakamoto invented the crypto-currency Bitcoin.fn3 It turns out the real genius of Bitcoin was not the currency at all, but the way that it works. Bitcoin creates an immutable, unchangeable public copy of every transaction ever made by its users, which is hosted and verified by every computer that downloads the software. This public copy is called the ‘blockchain’. Pretty soon, enthusiasts figured out that the blockchain system could be used for anything.


pages: 267 words: 82,580

The Dark Net by Jamie Bartlett

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3D printing, 4chan, bitcoin, blockchain, brain emulation, carbon footprint, creative destruction, crowdsourcing, cryptocurrency, deindustrialization, Edward Snowden, Filter Bubble, Francis Fukuyama: the end of history, global village, Google Chrome, Howard Rheingold, Internet of things, invention of writing, Johann Wolfgang von Goethe, Julian Assange, Kuwabatake Sanjuro: assassination market, life extension, litecoin, Mark Zuckerberg, Marshall McLuhan, moral hazard, moral panic, Occupy movement, pre–internet, Ray Kurzweil, Satoshi Nakamoto, Skype, slashdot, technological singularity, technoutopianism, Ted Kaczynski, The Coming Technological Singularity, Turing test, Vernor Vinge, WikiLeaks, Zimmermann PGP

After Gilmore shut down the original mailing list, others sprang up in its place, with several dedicated to improving crypto. The most notable was the cryptography mailing list hosted by Perry Metzger, where many of the original cypherpunks migrated. But it also attracted a new generation who were just as keen to post papers and ideas about how to evade government surveillance and improve individual privacy online. In early 2008 a mysterious contributor to the cryptography mailing list called Satoshi Nakamoto posted a message that would change everything. To Calafou Six weeks after Amir’s talk, I find myself walking down a dusty hill and over a concrete bridge towards an enormous nineteenth-century textile factory complex. The words ‘Calafou: còlonia ecoindustrial postcapitalista’ are painted in large black and green letters on a wall outside. It’s mid-afternoon. I approach a bearded, long-haired man loitering by the entrance, and ask for Amir.

p.157 ‘However, researchers have found that . . .’ http://motherboard.vice.com/blog/bitcoin-isnt-the-criminal-safe-haven-people-think-it-is; http://anonymity-in-bitcoin.blogspot.com/2011/07/bitcoin-is-not-anonymous.html. p.157 ‘CoinJoin, for example, works . . .’ https://bitcointalk.org/index.php? topic=139581.0. p.158 ‘The future of these markets . . .’ http://www.chaum.com/articles/Security_Wthout_Identification.htm. This was what David Chaum – the inventor of digital cash twenty years before Satoshi Nakamoto – had in mind all along. In his 1985 book, Security without Identification: Transaction Systems to Make Big Brother Obsolete, he set out systems that could combine anonymity with secure payment. p.159 ‘Dark net markets have introduced . . .’ Hirschman, A., Exit Voice and Loyalty. p.160 ‘When Professor Nicolas Christin analysed . . .’ http://www.andrew.cmu.edu/user/nicolasc/publications/TR-CMU-CyLab-12-018.pdf.

The Economic Singularity: Artificial intelligence and the death of capitalism by Calum Chace

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3D printing, additive manufacturing, agricultural Revolution, AI winter, Airbnb, artificial general intelligence, augmented reality, autonomous vehicles, banking crisis, basic income, Baxter: Rethink Robotics, Berlin Wall, Bernie Sanders, bitcoin, blockchain, call centre, Chris Urmson, congestion charging, credit crunch, David Ricardo: comparative advantage, Douglas Engelbart, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Flynn Effect, full employment, future of work, gender pay gap, gig economy, Google Glasses, Google X / Alphabet X, ImageNet competition, income inequality, industrial robot, Internet of things, invention of the telephone, invisible hand, James Watt: steam engine, Jaron Lanier, Jeff Bezos, job automation, John Markoff, John Maynard Keynes: technological unemployment, John von Neumann, Kevin Kelly, knowledge worker, lifelogging, lump of labour, Lyft, Marc Andreessen, Mark Zuckerberg, Martin Wolf, McJob, means of production, Milgram experiment, Narrative Science, natural language processing, new economy, Occupy movement, Oculus Rift, PageRank, pattern recognition, post scarcity, post-industrial society, precariat, prediction markets, QWERTY keyboard, railway mania, RAND corporation, Ray Kurzweil, RFID, Rodney Brooks, Satoshi Nakamoto, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, software is eating the world, speech recognition, Stephen Hawking, Steve Jobs, TaskRabbit, technological singularity, The Future of Employment, Thomas Malthus, transaction costs, Tyler Cowen: Great Stagnation, Uber for X, universal basic income, Vernor Vinge, working-age population, Y Combinator, young professional

Blockchain People have gone mad trying to understand how the blockchain works, never mind trying to explain it. Its most famous application is Bitcoin, the world’s first completely decentralized digital currency.[cccxlix] In just a few years, the Bitcoin “economy” has grown larger than the economies of some countries. The value of a Bitcoin has fluctuated wildly, hitting a peak of $1,216 in November 2013. The insights which made Bitcoin possible were published in 2008 under the pseudonym Satoshi Nakamoto, and the blockchain is at the heart of it. The blockchain is a public ledger which records transactions. The clever bit is that the ledger is completely trustworthy despite having no central authority, like a bank, to validate it. It is trustworthy in that you can have full confidence that if someone gives you a Bitcoin, then you do own that Bitcoin: the person who gave it to you will not be nipping off to spend the same piece of currency elsewhere, even though it is entirely digital.

These miners are working continuously on mathematical problems whose solutions are hard to find but easy to verify. A problem is solved (“mined”) roughly every ten minutes, and each solution creates a block. The new block is added to the chain, and incorporates the transactions made since the last block was added to the chain. Your transaction is published on the blockchain’s network as soon as it is agreed, but it is only confirmed, and hence reliable, when a miner has incorporated it into a block. Satoshi Nakamoto’s innovation solved a previously intractable challenge in computer science known as the Byzantine General’s Problem. Imagine a mediaeval city surrounded by a dozen armies, each led by a powerful general. If the armies mount a co-ordinated attack, their victory is assured, but they can only communicate by messengers on horseback who visit the generals one by one, and some of the generals are untrustworthy.


pages: 366 words: 94,209

Throwing Rocks at the Google Bus: How Growth Became the Enemy of Prosperity by Douglas Rushkoff

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3D printing, activist fund / activist shareholder / activist investor, Airbnb, algorithmic trading, Amazon Mechanical Turk, Andrew Keen, bank run, banking crisis, barriers to entry, bitcoin, blockchain, Burning Man, business process, buy low sell high, California gold rush, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, centralized clearinghouse, citizen journalism, clean water, cloud computing, collaborative economy, collective bargaining, colonial exploitation, Community Supported Agriculture, corporate personhood, corporate raider, creative destruction, crowdsourcing, cryptocurrency, disintermediation, diversified portfolio, Elon Musk, Erik Brynjolfsson, ethereum blockchain, fiat currency, Firefox, Flash crash, full employment, future of work, gig economy, Gini coefficient, global supply chain, global village, Google bus, Howard Rheingold, IBM and the Holocaust, impulse control, income inequality, index fund, iterative process, Jaron Lanier, Jeff Bezos, jimmy wales, job automation, Joseph Schumpeter, Kickstarter, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, Marshall McLuhan, means of production, medical bankruptcy, minimum viable product, Naomi Klein, Network effects, new economy, Norbert Wiener, Oculus Rift, passive investing, payday loans, peer-to-peer lending, Peter Thiel, post-industrial society, profit motive, quantitative easing, race to the bottom, recommendation engine, reserve currency, RFID, Richard Stallman, ride hailing / ride sharing, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, social graph, software patent, Steve Jobs, TaskRabbit, The Future of Employment, trade route, transportation-network company, Turing test, Uber and Lyft, Uber for X, unpaid internship, Y Combinator, young professional, zero-sum game, Zipcar

Could a money system look and act less like iTunes and more like BitTorrent, where, instead of depending on a platform monopoly to negotiate everything, all the participants use protocols to interact with one another directly? Could a digital money system achieve with openness what traditional banks do with secrecy? The only way to find out is to start as openly as possible. That’s why Bitcoin first appeared as the subject of a 2008 white paper authored by someone (or multiple someones) going under the name Satoshi Nakamoto. The paper outlined a concept for a virtual currency created and traded on a peer-to-peer, open-source platform. It would need no central authority to issue it, nor any central middleman to verify or administer its transactions. The network platform would be called Bitcoin, and its currency would be called bitcoins.27 This idea was not entirely new. Virtual and decentralized currencies had been tried in the past.

David Wessel, “Lousy Economic Growth Is a Choice, Not an Inevitability,” brookings.edu, October 13, 2014. 24. Bernard Lietaer and Jacqui Dunne, Rethinking Money: How New Currencies Turn Scarcity into Prosperity (San Francisco: Berrett-Koehler Publishers, 2013). 25. Joanna Glasner, “PayPal’s IPO Woes Continue,” Wired, February 12, 2002. 26. In most of the world, that would be SWIFT. 27. Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System,” bitcoin.org, October 31, 2008. 28. Ibid. 29. Pedro Franco, Understanding Bitcoin: Cryptography, Engineering and Economics (New York: John Wiley & Sons, 2014). 30. Ibid. 31. Andreas M. Antonopoulos, Mastering Bitcoin: Unlocking Digital Cryptocurrencies (Sebastopol, Calif.: O’Reilly Media, 2014). 32. Franco, Understanding Bitcoin. 33. Antonopoulos, Mastering Bitcoin. 34.


pages: 330 words: 91,805

Peers Inc: How People and Platforms Are Inventing the Collaborative Economy and Reinventing Capitalism by Robin Chase

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3D printing, Airbnb, Amazon Web Services, Andy Kessler, banking crisis, barriers to entry, basic income, Benevolent Dictator For Life (BDFL), bitcoin, blockchain, Burning Man, business climate, call centre, car-free, cloud computing, collaborative consumption, collaborative economy, collective bargaining, commoditize, congestion charging, creative destruction, crowdsourcing, cryptocurrency, decarbonisation, don't be evil, Elon Musk, en.wikipedia.org, ethereum blockchain, Ferguson, Missouri, Firefox, frictionless, Gini coefficient, hive mind, income inequality, index fund, informal economy, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Jane Jacobs, Jeff Bezos, jimmy wales, job satisfaction, Kickstarter, Lean Startup, Lyft, means of production, megacity, Minecraft, minimum viable product, Network effects, new economy, Oculus Rift, openstreetmap, optical character recognition, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, Richard Stallman, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, self-driving car, shareholder value, sharing economy, Silicon Valley, six sigma, Skype, smart cities, smart grid, Snapchat, sovereign wealth fund, Steve Crocker, Steve Jobs, Steven Levy, TaskRabbit, The Death and Life of Great American Cities, The Future of Employment, The Nature of the Firm, transaction costs, Turing test, turn-by-turn navigation, Uber and Lyft, Zipcar

It provides a successful model for how Peers Inc networks can be entirely owned and governed by peer collaborators. Right now there is an explosion of ideas, innovation, invention, and excitement as a result of the Bitcoin experiment. People are applying the principles, code, and experience to arenas well beyond just currency, trying to solve many of the challenges raised in the second half of this book. Let’s start with a very brief background on Bitcoin. In 2008, Satoshi Nakamoto wrote a paper about a digital currency, called Bitcoin. “Satoshi Nakamoto” is a pseudonym, and no one knows whether it refers to a real person or a group of people. In 2009 their ideas were released as open-source software. (Note that this is yet another example where the concept and organizing principle of the platform were simply gifted out of thin air; that’s not a replicable strategy.) The Bitcoin software now exists as a platform and set of protocols for how to create, store, and use Bitcoins.


pages: 466 words: 127,728

The Death of Money: The Coming Collapse of the International Monetary System by James Rickards

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Affordable Care Act / Obamacare, Asian financial crisis, asset allocation, Ayatollah Khomeini, bank run, banking crisis, Ben Bernanke: helicopter money, bitcoin, Black Swan, Bretton Woods, BRICs, business climate, capital controls, Carmen Reinhart, central bank independence, centre right, collateralized debt obligation, collective bargaining, complexity theory, computer age, credit crunch, currency peg, David Graeber, debt deflation, Deng Xiaoping, diversification, Edward Snowden, eurozone crisis, fiat currency, financial innovation, financial intermediation, financial repression, fixed income, Flash crash, floating exchange rates, forward guidance, G4S, George Akerlof, global reserve currency, global supply chain, Growth in a Time of Debt, income inequality, inflation targeting, information asymmetry, invisible hand, jitney, John Meriwether, Kenneth Rogoff, labor-force participation, labour mobility, Lao Tzu, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, Long Term Capital Management, mandelbrot fractal, margin call, market bubble, market clearing, market design, money market fund, money: store of value / unit of account / medium of exchange, mutually assured destruction, obamacare, offshore financial centre, oil shale / tar sands, open economy, Plutocrats, plutocrats, Ponzi scheme, price stability, quantitative easing, RAND corporation, reserve currency, risk-adjusted returns, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, Satoshi Nakamoto, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, special drawing rights, Stuxnet, The Market for Lemons, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, too big to fail, trade route, uranium enrichment, Washington Consensus, working-age population, yield curve

Other indications are anecdotal and difficult to quantify but are no less telling. Among them are the rise of alternative currencies and of virtual or digital currencies such as bitcoin. Digital currencies exist within private peer-to-peer computer networks and are not issued by or supported by any government or central bank. The bitcoin phenomenon began in 2008 with the pseudonymous publication of a paper (by Satoshi Nakamoto) describing the protocols for the creation of a new electronic digital currency. In January 2009 the first bitcoins were created by Nakamoto’s software. He continued making technical contributions to the bitcoin project until 2010, at which point he withdrew from active participation. However, by that time a large community of developers, libertarians, and entrepreneurs had taken up the project.

Employment Situation,” EconoMonitor, July 24, 2013, http://www.economonitor.com/danalperts2cents/2013/07/24/the-new-sick-onomy-examining-the-entrails-of-the-u-s-employment-situation. By August 2013, total student loans backed . . . : “The Rolling Student Loan Bailout,” Wall Street Journal, August 9, 2013, http://online.wsj.com/article/SB10001424127887323968704578652291680883634.html. “the test of a first-rate intelligence . . .”: F. Scott Fitzgerald, The Crack-Up (1936; reprint New York: New Directions, 2009). The bitcoin phenomenon began in 2008 . . . : Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System,” November 1, 2008, http://bitcoin.org/bitcoin.pdf. the history of barter is mostly a myth: David Graeber, Debt: The First 5,000 Years (Brooklyn, N.Y.: Melville House, 2011), pp. 21–41. “Sept. 11 was not a failure of intelligence or coordination . . .”: Thomas L. Friedman, “A Failure to Imagine,” New York Times, May 19, 2002, http://www.nytimes.com/2002/05/19/opinion/a-failure-to-imagine.html.


pages: 237 words: 64,411

Humans Need Not Apply: A Guide to Wealth and Work in the Age of Artificial Intelligence by Jerry Kaplan

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Affordable Care Act / Obamacare, Amazon Web Services, asset allocation, autonomous vehicles, bank run, bitcoin, Bob Noyce, Brian Krebs, buy low sell high, Capital in the Twenty-First Century by Thomas Piketty, combinatorial explosion, computer vision, corporate governance, crowdsourcing, en.wikipedia.org, Erik Brynjolfsson, estate planning, Flash crash, Gini coefficient, Goldman Sachs: Vampire Squid, haute couture, hiring and firing, income inequality, index card, industrial robot, information asymmetry, invention of agriculture, Jaron Lanier, Jeff Bezos, job automation, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Loebner Prize, Mark Zuckerberg, mortgage debt, natural language processing, Own Your Own Home, pattern recognition, Satoshi Nakamoto, school choice, Schrödinger's Cat, Second Machine Age, self-driving car, sentiment analysis, Silicon Valley, Silicon Valley startup, Skype, software as a service, The Chicago School, The Future of Employment, Turing test, Watson beat the top human players on Jeopardy!, winner-take-all economy, women in the workforce, working poor, Works Progress Administration

As we learn to trust these systems to transport us, introduce us to potential mates, customize our news, protect our property, monitor our environment, grow, prepare, and serve our food, teach our children, and care for our elderly, it will be easy to miss the bigger picture. They will offer us the minimum required to keep us satisfied while pocketing the excess profits, just as any smart businessperson does. The first glimmers of this are already visible. Bitcoins, for instance. It’s a new currency that exists solely in cyberspace and isn’t controlled by anyone. It was invented by an anonymous person or entity named Satoshi Nakamoto. No one may know who—or what—he is, but it’s clear that he doesn’t control the production, management, or value of his creation. Despite halfhearted attempts to regulate or legitimize bitcoins, neither do governments. Or anyone else, for that matter. As long as they can be converted to and from other assets of value—whether legally or illegally anywhere in the world—bitcoins will continue to exist and find adherents.


pages: 349 words: 114,038

Culture & Empire: Digital Revolution by Pieter Hintjens

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4chan, airport security, anti-communist, anti-pattern, barriers to entry, Bill Duvall, bitcoin, blockchain, business climate, business intelligence, business process, Chelsea Manning, clean water, commoditize, congestion charging, Corn Laws, correlation does not imply causation, cryptocurrency, Debian, Edward Snowden, failed state, financial independence, Firefox, full text search, German hyperinflation, global village, GnuPG, Google Chrome, greed is good, Hernando de Soto, hiring and firing, informal economy, intangible asset, invisible hand, James Watt: steam engine, Jeff Rulifson, Julian Assange, Kickstarter, M-Pesa, mass immigration, mass incarceration, mega-rich, mutually assured destruction, Naomi Klein, national security letter, new economy, New Urbanism, Occupy movement, offshore financial centre, packet switching, patent troll, peak oil, pre–internet, private military company, race to the bottom, rent-seeking, reserve currency, RFC: Request For Comment, Richard Feynman, Richard Feynman, Richard Stallman, Satoshi Nakamoto, security theater, selection bias, Skype, slashdot, software patent, spectrum auction, Steve Crocker, Steve Jobs, Steven Pinker, Stuxnet, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trade route, transaction costs, union organizing, wealth creators, web application, WikiLeaks, Y2K, zero day, Zipf's Law

In the beginning, when transaction chains were short, they were easy to process, and people could mine thousands of coins on their PCs. Today, as chains are long, it takes more effort to mine coins. Every year, the number of coins that can be mined falls, so at some point there will be no new BitCoins. The BitCoin design and open source software was written by a prudently anonymous team calling themselves "Satoshi Nakamoto." They took some existing concepts from the cryptographic community, and invented some new ones. The technology had one major vulnerability, which was fixed in 2010. Since then, it appears robust. BitCoin satisfies most of the criteria for use as a medium of digital trade. It is free from coercion by authorities. The transaction fees are paid in the form of computing power used to verify blocks and network bandwidth to exchange chains with others.


pages: 378 words: 94,468

Drugs 2.0: The Web Revolution That's Changing How the World Gets High by Mike Power

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air freight, Alexander Shulgin, banking crisis, bitcoin, blockchain, Buckminster Fuller, Burning Man, cloud computing, credit crunch, crowdsourcing, death of newspapers, Donald Davies, double helix, Douglas Engelbart, Electric Kool-Aid Acid Test, fiat currency, Firefox, Fractional reserve banking, frictionless, Haight Ashbury, John Bercow, John Markoff, Kevin Kelly, Leonard Kleinrock, means of production, Menlo Park, moral panic, Mother of all demos, Network effects, nuclear paranoia, packet switching, pattern recognition, PIHKAL and TIHKAL, pre–internet, QR code, RAND corporation, Satoshi Nakamoto, selective serotonin reuptake inhibitor (SSRI), sexual politics, Skype, Stephen Hawking, Steve Jobs, Stewart Brand, trade route, Whole Earth Catalog, Zimmermann PGP

Using bitcoins can be, depending on how you use them, almost completely anonymous. Originally, bitcoins were produced by ‘miners’ – a figurative term for computer owners who donated their processor time to the project and were rewarded with coins for their efforts. The currency, or rather, the system that creates the currency, was released to the web on 1 November 2008, as the world economic system teetered on the brink of systemic collapse. Anonymous software coder Satoshi Nakamoto issued the open source application, and included a sly reference to the latest banking bailout by Britain’s then-chancellor of the exchequer, Alistair Darling, buried in code for the so-called Genesis Block – the first coins ever ‘mined’, in January 2009.4 The main reason no purely digital currency has ever gained traction is because data-as-cash has a central flaw. As the music industry has discovered in recent years, digital information is infinitely copyable.


pages: 261 words: 86,905

How to Speak Money: What the Money People Say--And What It Really Means by John Lanchester

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asset allocation, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, blood diamonds, Bretton Woods, BRICs, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collective bargaining, commoditize, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Dava Sobel, David Graeber, disintermediation, double entry bookkeeping, en.wikipedia.org, estate planning, financial innovation, Flash crash, forward guidance, Gini coefficient, global reserve currency, high net worth, High speed trading, hindsight bias, income inequality, inflation targeting, interest rate swap, Isaac Newton, Jaron Lanier, joint-stock company, joint-stock limited liability company, Kodak vs Instagram, liquidity trap, London Interbank Offered Rate, London Whale, loss aversion, margin call, McJob, means of production, microcredit, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, negative equity, neoliberal agenda, New Urbanism, Nick Leeson, Nikolai Kondratiev, Nixon shock, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, Plutocrats, plutocrats, Ponzi scheme, purchasing power parity, pushing on a string, quantitative easing, random walk, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, Right to Buy, road to serfdom, Ronald Reagan, Satoshi Nakamoto, security theater, shareholder value, Silicon Valley, six sigma, South Sea Bubble, sovereign wealth fund, Steve Jobs, survivorship bias, The Chicago School, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trickle-down economics, Washington Consensus, wealth creators, working poor, yield curve

There used to be something called the Mars bar index, which tried to do something similar with the effect of inflation in the UK, but one of the problems with it is that Mars bars (unlike Big Macs) have changed size over time.21 See if, without looking at it, you can guess the most and least expensive countries in the world. Answer: Norway and Venezuela are the most expensive, and India and South Africa the least—though the Indian Big Mac is called the Maharaja Mac, and is made of chicken. If you’re wondering what Norway and Venuezuela have in common, the answer is nothing, except lots of oil. bitcoin An unregulated currency, created by someone or someones calling him, her, or themselves Satoshi Nakamoto, in 2008. It has no inherent value, so its worth depends entirely on the trust people have in it: in my view, that’s the most interesting thing about bitcoin, the fact it is a built-in lesson on the arbitrary nature of money values. Bitcoins are created by “mining,” i.e., by long slow computer calculations, and are stored and exchanged via digital “wallets.” This number crunching burns a lot of energy, and the cost of that energy is the real cost of creating bitcoins.


pages: 421 words: 110,406

Platform Revolution: How Networked Markets Are Transforming the Economy--And How to Make Them Work for You by Sangeet Paul Choudary, Marshall W. van Alstyne, Geoffrey G. Parker

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3D printing, Affordable Care Act / Obamacare, Airbnb, Alvin Roth, Amazon Mechanical Turk, Amazon Web Services, Andrei Shleifer, Apple's 1984 Super Bowl advert, autonomous vehicles, barriers to entry, big data - Walmart - Pop Tarts, bitcoin, blockchain, business process, buy low sell high, chief data officer, Chuck Templeton: OpenTable, clean water, cloud computing, connected car, corporate governance, crowdsourcing, data acquisition, data is the new oil, digital map, discounted cash flows, disintermediation, Edward Glaeser, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, financial innovation, Haber-Bosch Process, High speed trading, information asymmetry, Internet of things, inventory management, invisible hand, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, Khan Academy, Kickstarter, Lean Startup, Lyft, Marc Andreessen, market design, Metcalfe’s law, multi-sided market, Network effects, new economy, payday loans, peer-to-peer lending, Peter Thiel, pets.com, pre–internet, price mechanism, recommendation engine, RFID, Richard Stallman, ride hailing / ride sharing, Robert Metcalfe, Ronald Coase, Satoshi Nakamoto, self-driving car, shareholder value, sharing economy, side project, Silicon Valley, Skype, smart contracts, smart grid, Snapchat, software is eating the world, Steve Jobs, TaskRabbit, The Chicago School, the payments system, Tim Cook: Apple, transaction costs, two-sided market, Uber and Lyft, Uber for X, winner-take-all economy, zero-sum game, Zipcar

To solve this problem, competing exchanges, such as the alternative trading system IEX, are using their own supercomputers to precisely time the order of bids, thereby eliminating the advantages of a Goldman Sachs.36 Architecture can level the playing field, making markets more competitive and fair for all. One of the most innovative forms of architectural control ever invented made its appearance in 2008, when an anonymous coding genius known as Satoshi Nakamoto published a paper on the Cryptography mailing list defining the Bitcoin digital currency and the so-called blockchain protocol governing it. Although Bitcoin is notable as the world’s first unforgeable digital currency that cannot be controlled by a government, bank, or individual, the blockchain is truly revolutionary. It makes possible fully decentralized, completely trustworthy interactions without any need for escrow payments or other guarantees.


pages: 349 words: 109,304

American Kingpin by Nick Bilton

bitcoin, blockchain, crack epidemic, Edward Snowden, mandatory minimum, Marc Andreessen, Mark Zuckerberg, Rubik’s Cube, Satoshi Nakamoto, side project, Silicon Valley, Skype, South of Market, San Francisco, Steve Jobs, Ted Kaczynski, the market place, trade route, white picket fence, WikiLeaks

Before arriving, Gary had done his homework, scouring news articles, forum posts by the Dread Pirate Roberts, and research about the Dark Web, all to get acquainted with the case he was about to join. While reading these pieces, Gary had come across the first white paper that had been published about Bitcoin, written by the creator of the digital currency, an anonymous man who went by the pseudonym Satoshi Nakamoto. Gary read the paper once and nothing stood out. He read it a second time, and still nothing. But the third time he noticed something, in a section of the paper that referenced the “Gambler’s Ruin problem,” a theory that no matter how much money you have in a betting scenario, the casino (or house) has an infinite amount of money, and therefore, if you keep making bets, the house will eventually win.


The Blockchain Alternative: Rethinking Macroeconomic Policy and Economic Theory by Kariappa Bheemaiah

accounting loophole / creative accounting, Ada Lovelace, Airbnb, algorithmic trading, asset allocation, autonomous vehicles, balance sheet recession, bank run, banks create money, Basel III, basic income, Ben Bernanke: helicopter money, bitcoin, blockchain, Bretton Woods, business process, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, cashless society, cellular automata, central bank independence, Claude Shannon: information theory, cloud computing, cognitive dissonance, collateralized debt obligation, commoditize, complexity theory, constrained optimization, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crowdsourcing, cryptocurrency, David Graeber, deskilling, Diane Coyle, discrete time, distributed ledger, diversification, double entry bookkeeping, ethereum blockchain, fiat currency, financial innovation, financial intermediation, Flash crash, floating exchange rates, Fractional reserve banking, full employment, George Akerlof, illegal immigration, income inequality, income per capita, inflation targeting, information asymmetry, interest rate derivative, inventory management, invisible hand, John Maynard Keynes: technological unemployment, John von Neumann, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kevin Kelly, knowledge economy, labour market flexibility, large denomination, liquidity trap, London Whale, low skilled workers, M-Pesa, Marc Andreessen, market bubble, market fundamentalism, Mexican peso crisis / tequila crisis, money market fund, money: store of value / unit of account / medium of exchange, mortgage debt, natural language processing, Network effects, new economy, Nikolai Kondratiev, offshore financial centre, packet switching, Pareto efficiency, pattern recognition, peer-to-peer lending, Ponzi scheme, precariat, pre–internet, price mechanism, price stability, private sector deleveraging, profit maximization, QR code, quantitative easing, quantitative trading / quantitative finance, Ray Kurzweil, Real Time Gross Settlement, rent control, rent-seeking, Satoshi Nakamoto, Satyajit Das, savings glut, seigniorage, Silicon Valley, Skype, smart contracts, software as a service, software is eating the world, speech recognition, statistical model, Stephen Hawking, supply-chain management, technology bubble, The Chicago School, The Future of Employment, The Great Moderation, the market place, The Nature of the Firm, the payments system, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, too big to fail, trade liberalization, transaction costs, Turing machine, Turing test, universal basic income, Von Neumann architecture, Washington Consensus

It could be the lights around you, the tablet on which you read this book, or your smartphone that is attached to you at all times. Now that you have selected a technology, dissect it completely and trace back the origin of every piece of technology that it embeds. You will find that in every case, the technology you are analyzing could not have existed had it not been for a government grant. This is true even of the Blockchain. While the Blockchain was first created by a single person/group (Satoshi Nakamoto), what it represents is decades’ worth of research and development in cryptography, encryption, economics, and game theory—all subjects that have been funded massively by governments. Had it not been for the ARPANet, Vint Cerf and Bob Khan would have never received the necessary funding to develop packetswitching data and you would not be reading this book had that happened. The development of technology is hence a collective production of wealth and it is for this reason that we need to turn the narrative of capitalism and show that there is no separation between free markets and the state.


pages: 464 words: 139,088

The End of Alchemy: Money, Banking and the Future of the Global Economy by Mervyn King

Andrei Shleifer, Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, Bretton Woods, British Empire, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, centre right, collapse of Lehman Brothers, creative destruction, Credit Default Swap, crowdsourcing, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, distributed generation, Doha Development Round, Edmond Halley, Fall of the Berlin Wall, falling living standards, fiat currency, financial innovation, financial intermediation, floating exchange rates, forward guidance, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, German hyperinflation, Hyman Minsky, inflation targeting, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, labour market flexibility, large denomination, liquidity trap, Long Term Capital Management, manufacturing employment, market clearing, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, Nick Leeson, North Sea oil, Northern Rock, oil shale / tar sands, oil shock, open economy, paradox of thrift, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, quantitative easing, rent-seeking, reserve currency, Richard Thaler, rising living standards, Robert Shiller, Robert Shiller, Satoshi Nakamoto, savings glut, secular stagnation, seigniorage, stem cell, Steve Jobs, The Great Moderation, the payments system, Thomas Malthus, too big to fail, transaction costs, Tyler Cowen: Great Stagnation, yield curve, Yom Kippur War, zero-sum game

Even old-fashioned bank robberies are diminishing – they almost halved in the US between 2004 and 2014 – to be replaced by an explosion of cybercrime.34 At present, electronic transfers simply move money from one bank account to another – convenient but not revolutionary – and banks then clear payments with each other through their own accounts at the central bank. In principle, two parties engaged in a transaction could instead settle directly by a transfer of money from one electronic account to another in ‘real time’. A step in that direction was the creation of bitcoin – a ‘virtual’ currency launched in 2009, allegedly by one or more individuals under the pseudonym of Satoshi Nakamoto. Ownership of bitcoins is transferred through bilateral transactions without the need for verification by a third party (necessary in all other current electronic payment systems). Transactions are verified by the use of a software accounting system accessible to all users.35 The supply of bitcoins is governed by an algorithm embodied in the software that runs the system (with a maximum number of twenty-one million).


pages: 390 words: 109,870

Radicals Chasing Utopia: Inside the Rogue Movements Trying to Change the World by Jamie Bartlett

Andrew Keen, back-to-the-land, Bernie Sanders, bitcoin, blockchain, blue-collar work, brain emulation, centre right, clean water, cryptocurrency, Donald Trump, drone strike, Elon Musk, energy security, ethereum blockchain, failed state, gig economy, hydraulic fracturing, income inequality, Intergovernmental Panel on Climate Change (IPCC), Jaron Lanier, job automation, John Markoff, Joseph Schumpeter, life extension, Occupy movement, off grid, Peter Thiel, post-industrial society, postnationalism / post nation state, precariat, QR code, Ray Kurzweil, RFID, Rosa Parks, Satoshi Nakamoto, self-driving car, Silicon Valley, Silicon Valley startup, Skype, smart contracts, stem cell, Stephen Hawking, Steve Jobs, Steven Pinker, technoutopianism

There is, at the time of writing, a major divide in the bitcoin community between those who want to make the system more efficient by executing more transactions per block, which requires a major redesign, and those who reject the idea as being too centralised. The blocks of transactions would need to get very large indeed, otherwise they will start queuing up. Because the designer and creator of bitcoin, Satoshi Nakamoto, decided to cap the size of a block at one megabyte, or about 1,400 transactions, it can handle only around seven transactions per second, compared to the 1,736 a second Visa handles in America. Blocks could be made bigger, but bigger blocks would take longer to propagate through the network, worsening the risks of forking. Many people assume bitcoin to be completely decentralised, but if a miner, or a group of miners, controlled over half the computing power that works on verifying the transaction, it could feasibly force a change on the blockchain transaction list however it wished, create a fork of the blockchain, and all the other computers would start to work on the new version (the protocol is written so that all computers work from the longest blockchain).


pages: 677 words: 206,548

Future Crimes: Everything Is Connected, Everyone Is Vulnerable and What We Can Do About It by Marc Goodman

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

23andMe, 3D printing, active measures, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, airport security, Albert Einstein, algorithmic trading, artificial general intelligence, Asilomar, Asilomar Conference on Recombinant DNA, augmented reality, autonomous vehicles, Baxter: Rethink Robotics, Bill Joy: nanobots, bitcoin, Black Swan, blockchain, borderless world, Brian Krebs, business process, butterfly effect, call centre, Chelsea Manning, cloud computing, cognitive dissonance, computer vision, connected car, corporate governance, crowdsourcing, cryptocurrency, data acquisition, data is the new oil, Dean Kamen, disintermediation, don't be evil, double helix, Downton Abbey, drone strike, Edward Snowden, Elon Musk, Erik Brynjolfsson, Filter Bubble, Firefox, Flash crash, future of work, game design, Google Chrome, Google Earth, Google Glasses, Gordon Gekko, high net worth, High speed trading, hive mind, Howard Rheingold, hypertext link, illegal immigration, impulse control, industrial robot, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Jaron Lanier, Jeff Bezos, job automation, John Harrison: Longitude, John Markoff, Jony Ive, Julian Assange, Kevin Kelly, Khan Academy, Kickstarter, knowledge worker, Kuwabatake Sanjuro: assassination market, Law of Accelerating Returns, Lean Startup, license plate recognition, lifelogging, litecoin, M-Pesa, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Metcalfe’s law, mobile money, more computing power than Apollo, move fast and break things, move fast and break things, Nate Silver, national security letter, natural language processing, obamacare, Occupy movement, Oculus Rift, off grid, offshore financial centre, optical character recognition, Parag Khanna, pattern recognition, peer-to-peer, personalized medicine, Peter H. Diamandis: Planetary Resources, Peter Thiel, pre–internet, RAND corporation, ransomware, Ray Kurzweil, refrigerator car, RFID, ride hailing / ride sharing, Rodney Brooks, Satoshi Nakamoto, Second Machine Age, security theater, self-driving car, shareholder value, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, smart meter, Snapchat, social graph, software as a service, speech recognition, stealth mode startup, Stephen Hawking, Steve Jobs, Steve Wozniak, strong AI, Stuxnet, supply-chain management, technological singularity, telepresence, telepresence robot, Tesla Model S, The Future of Employment, The Wisdom of Crowds, Tim Cook: Apple, trade route, uranium enrichment, Wall-E, Watson beat the top human players on Jeopardy!, Wave and Pay, We are Anonymous. We are Legion, web application, Westphalian system, WikiLeaks, Y Combinator, zero day

DAN KAMINSKY, SECURITY RESEARCHER Technology is enabling new forms of money, and the growing digital economy holds great promise to provide new financial tools, especially to the world’s poor and unbanked. These emerging virtual currencies are often anonymous and none have received quite as much press as Bitcoin, a decentralized peer-to-peer digital form of money. Bitcoins were invented in 2009 by a mysterious person (or group of people) using the alias Satoshi Nakamoto, and the coins are created or “mined” by solving increasingly difficult mathematical equations, requiring extensive computing power. The system is designed to ensure no more than twenty-one million Bitcoins are ever generated, thereby preventing a central authority from flooding the market with new Bitcoins. Most people purchase Bitcoins on third-party exchanges with traditional currencies, such as dollars or euros, or with credit cards.


pages: 700 words: 201,953

The Social Life of Money by Nigel Dodd

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, bank run, banking crisis, banks create money, Bernie Madoff, bitcoin, blockchain, borderless world, Bretton Woods, BRICs, capital controls, cashless society, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, commoditize, computer age, conceptual framework, credit crunch, cross-subsidies, David Graeber, debt deflation, dematerialisation, disintermediation, eurozone crisis, fiat currency, financial exclusion, financial innovation, Financial Instability Hypothesis, financial repression, floating exchange rates, Fractional reserve banking, German hyperinflation, Goldman Sachs: Vampire Squid, Hyman Minsky, illegal immigration, informal economy, interest rate swap, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, Kula ring, laissez-faire capitalism, land reform, late capitalism, liberal capitalism, liquidity trap, litecoin, London Interbank Offered Rate, M-Pesa, Marshall McLuhan, means of production, mental accounting, microcredit, mobile money, money market fund, money: store of value / unit of account / medium of exchange, mortgage debt, negative equity, new economy, Nixon shock, Occupy movement, offshore financial centre, paradox of thrift, payday loans, Peace of Westphalia, peer-to-peer, peer-to-peer lending, Ponzi scheme, post scarcity, postnationalism / post nation state, predatory finance, price mechanism, price stability, quantitative easing, quantitative trading / quantitative finance, remote working, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Satoshi Nakamoto, Scientific racism, seigniorage, Skype, Slavoj Žižek, South Sea Bubble, sovereign wealth fund, special drawing rights, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, Veblen good, Wave and Pay, Westphalian system, WikiLeaks, Wolfgang Streeck, yield curve, zero-coupon bond

The technical problems that need to be overcome to achieve this combination are considerable. Two key dangers have to be avoided: the low-cost producer who can flood the market with bit gold (or, subsequently, Bitcoins) and the profiteering “bit gold miner” who uses optimized computer architecture. The history of Bitcoin suggests that the latter has proven more difficult to avoid than the former. Satoshi Nakamoto—a pseudonym for an individual or a group—introduced the idea of Bitcoin in a 2008 paper (Nakamoto 2008). He characterized the scheme as a system for electronic transactions that did not rely on trust, a possibility that in his view specifically required the elimination of opportunities for double spending. Double spending exists as a problem in electronic payment systems because each owner of a coin has no means of knowing whether or not the previous owner of the coin used it twice.