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Scaling Bitcoin Transcripts

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Scaling Bitcoin Transcripts

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The Scaling Bitcoin website is awesome. Videos, Slides, Transcripts, and White Papers from all three workshops.

The Scaling Bitcoin website is awesome. Videos, Slides, Transcripts, and White Papers from all three workshops. submitted by vakeraj to Bitcoin [link] [comments]

Transcripts of presentations at Scaling Bitcoin

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“Why is scaling up Bitcoin really easy, yet incredibly hard?” - Transcript of talk by Peter Todd

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The Scaling Bitcoin is awesome. Videos, transcripts, and white papers from all three workshops.

The Scaling Bitcoin is awesome. Videos, transcripts, and white papers from all three workshops. submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Some transcripts from Scaling Bitcoin 2016 | Bryan Bishop | Oct 15 2016

Bryan Bishop on Oct 15 2016:
Previously:
https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-Decembe011862.html
Here are some talks from Milan:
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/fungibility-overview/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/joinmarket/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/tumblebit/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/mimblewimble/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/onion-routing-in-lightning/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/flare-routing-in-lightning/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/unlinkable-outsourced-channel-monitoring/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/lightning/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/segwit-lessons-learned/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/schnorr-signatures/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/bip151-peer-encryption/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/coin-selection/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/covenants/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/on-the-security-and-performance-of-proof-of-work-blockchains/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/collective-signing/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/fast-difficulty-adjustment/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/jute-braiding/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/client-side-validation/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/breaking-the-chain/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/day-1-group-summaries/
http://diyhpl.us/wiki/transcripts/scalingbitcoin/milan/day-2-group-summaries/
These are not always exact transcripts because I am typing while I am
listening, thus there are mistakes including typos and listening
errors, so please keep this discrepancy in mind between what's said
and what's typed.
http://heybryan.org/
1 512 203 0507
original: https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2016-Octobe013225.html
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Some transcripts from Scaling Bitcoin 2016 | Bryan Bishop | Oct 15 2016 /r/bitcoin_devlist

Some transcripts from Scaling Bitcoin 2016 | Bryan Bishop | Oct 15 2016 /bitcoin_devlist submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Putting $400M of Bitcoin on your company balance sheet

Also posted on my blog as usual. Read it there if you can, there are footnotes and inlined plots.
A couple of months ago, MicroStrategy (MSTR) had a spare $400M of cash which it decided to shift to Bitcoin (BTC).
Today we'll discuss in excrutiating detail why this is not a good idea.
When a company has a pile of spare money it doesn't know what to do with, it'll normally do buybacks or start paying dividends. That gives the money back to the shareholders, and from an economic perspective the money can get better invested in other more promising companies. If you have a huge pile of of cash, you probably should be doing other things than leave it in a bank account to gather dust.
However, this statement from MicroStrategy CEO Michael Saylor exists to make it clear he's buying into BTC for all the wrong reasons:
“This is not a speculation, nor is it a hedge. This was a deliberate corporate strategy to adopt a bitcoin standard.”
Let's unpack it and jump into the economics Bitcoin:

Is Bitcoin money?

No.
Or rather BTC doesn't act as money and there's no serious future path for BTC to become a form of money. Let's go back to basics. There are 3 main economic problems money solves:
1. Medium of Exchange. Before money we had to barter, which led to the double coincidence of wants problem. When everyone accepts the same money you can buy something from someone even if they don't like the stuff you own.
As a medium of exchange, BTC is not good. There are significant transaction fees and transaction waiting times built-in to BTC and these worsen the more popular BTC get.
You can test BTC's usefulness as a medium of exchange for yourself right now: try to order a pizza or to buy a random item with BTC. How many additional hurdles do you have to go through? How many fewer options do you have than if you used a regular currency? How much overhead (time, fees) is there?
2. Unit of Account. A unit of account is what you compare the value of objects against. We denominate BTC in terms of how many USD they're worth, so BTC is a unit of account presently. We can say it's because of lack of adoption, but really it's also because the market value of BTC is so volatile.
If I buy a $1000 table today or in 2017, it's roughly a $1000 table. We can't say that a 0.4BTC table was a 0.4BTC table in 2017. We'll expand on this in the next point:
3. Store of Value. When you create economic value, you don't want to be forced to use up the value you created right away.
For instance, if I fix your washing machine and you pay me in avocados, I'd be annoyed. I'd have to consume my payment before it becomes brown, squishy and disgusting. Avocado fruit is not good money because avocadoes loses value very fast.
On the other hand, well-run currencies like the USD, GBP, CAD, EUR, etc. all lose their value at a low and most importantly fairly predictible rate. Let's look at the chart of the USD against BTC
While the dollar loses value at a predictible rate, BTC is all over the place, which is bad.
One important use money is to write loan contracts. Loans are great. They let people spend now against their future potential earnings, so they can buy houses or start businesses without first saving up for a decade. Loans are good for the economy.
If you want to sign something that says "I owe you this much for that much time" then you need to be able to roughly predict the value of the debt in at the point in time where it's due.
Otherwise you'll have a hard time pricing the risk of the loan effectively. This means that you need to charge higher interests. The risk of making a loan in BTC needs to be priced into the interest of a BTC-denominated loan, which means much higher interest rates. High interests on loans are bad, because buying houses and starting businesses are good things.

BTC has a fixed supply, so these problems are built in

Some people think that going back to a standard where our money was denominated by a stock of gold (the Gold Standard) would solve economic problems. This is nonsense.
Having control over supply of your currency is a good thing, as long as it's well run.
See here
Remember that what is desirable is low variance in the value, not the value itself. When there are wild fluctuations in value, it's hard for money to do its job well.
Since the 1970s, the USD has been a fiat money with no intrinsic value. This means we control the supply of money.
Let's look at a classic poorly drawn econ101 graph
The market price for USD is where supply meets demand. The problem with a currency based on an item whose supply is fixed is that the price will necessarily fluctuate in response to changes in demand.
Imagine, if you will, that a pandemic strikes and that the demand for currency takes a sharp drop. The US imports less, people don't buy anything anymore, etc. If you can't print money, you get deflation, which is worsens everything. On the other hand, if you can make the money printers go brrrr you can stabilize the price
Having your currency be based on a fixed supply isn't just bad because in/deflation is hard to control.
It's also a national security risk...
The story of the guy who crashed gold prices in North Africa
In the 1200s, Mansa Munsa, the emperor of the Mali, was rich and a devout Muslim and wanted everyone to know it. So he embarked on a pilgrimage to make it rain all the way to Mecca.
He in fact made it rain so hard he increased the overall supply of gold and unintentionally crashed gold prices in Cairo by 20%, wreaking an economic havoc in North Africa that lasted a decade.
This story is fun, the larger point that having your inflation be at the mercy of foreign nations is an undesirable attribute in any currency. The US likes to call some countries currency manipulators, but this problem would be serious under a gold standard.

Currencies are based on trust

Since the USD is based on nothing except the US government's word, how can we trust USD not to be mismanaged?
The answer is that you can probably trust the fed until political stooges get put in place. Currently, the US's central bank managing the USD, the Federal Reserve (the Fed for friends & family), has administrative authority. The fed can say "no" to dumb requests from the president.
People who have no idea what the fed does like to chant "audit the fed", but the fed is already one of the best audited US federal entities. The transcripts of all their meetings are out in the open. As is their balance sheet, what they plan to do and why. If the US should audit anything it's the Department of Defense which operates without any accounting at all.
It's easy to see when a central bank will go rogue: it's when political yes-men are elected to the board.
For example, before printing themselves into hyperinflation, the Venezuelan president appointed a sociologist who publicly stated “Inflation does not exist in real life” and instead is a made up capitalist lie. Note what happened mere months after his gaining control over the Venezuelan currency
This is a key policy. One paper I really like, Sargent (1984) "The end of 4 big inflations" states:
The essential measures that ended hyperinflation in each of Germany,Austria, Hungary, and Poland were, first, the creation of an independentcentral bank that was legally committed to refuse the government'sdemand or additional unsecured credit and, second, a simultaneousalteration in the fiscal policy regime.
In english: *hyperinflation stops when the central bank can say "no" to the government."
The US Fed, like other well good central banks, is run by a bunch of nerds. When it prints money, even as aggressively as it has it does so for good reasons. You can see why they started printing on March 15th as the COVID lockdowns started:
The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals.
In english: We're going to keep printing and lowering rates until jobs are back and inflation is under control. If we print until the sun is blotted out, we'll print in the shade.

BTC is not gold

Gold is a good asset for doomsday-preppers. If society crashes, gold will still have value.
How do we know that?
Gold has held value throughout multiple historic catastrophes over thousands of years. It had value before and after the Bronze Age Collapse, the Fall of the Western Roman Empire and Gengis Khan being Gengis Khan.
Even if you erased humanity and started over, the new humans would still find gold to be economically valuable. When Europeans d̶i̶s̶c̶o̶v̶e̶r̶e̶d̶ c̶o̶n̶q̶u̶e̶r̶e̶d̶ g̶e̶n̶o̶c̶i̶d̶e̶d̶ went to America, they found gold to be an important item over there too. This is about equivalent to finding humans on Alpha-Centauri and learning that they think gold is a good store of value as well.
Some people are puzzled at this: we don't even use gold for much! But it has great properties:
First, gold is hard to fake and impossible to manufacture. This makes it good to ascertain payment.
Second, gold doesnt react to oxygen, so it doesn't rust or tarnish. So it keeps value over time unlike most other materials.
Last, gold is pretty. This might sound frivolous, and you may not like it, but jewelry has actual value to humans.
It's no coincidence if you look at a list of the wealthiest families, a large number of them trade in luxury goods.
To paraphrase Veblen humans have a profound desire to signal social status, for the same reason peacocks have unwieldy tails. Gold is a great way to achieve that.
On the other hand, BTC lacks all these attributes. Its value is largely based on common perception of value. There are a few fundamental drivers of demand:
Apart from these, it's hard to argue that BTC will retain value throughout some sort of economic catastrophe.

BTC is really risky

One last statement from Michael Saylor I take offense to is this:
“We feel pretty confident that Bitcoin is less risky than holding cash, less risky than holding gold,” MicroStrategy CEO said in an interview
"BTC is less risky than holding cash or gold long term" is nonsense. We saw before that BTC is more volatile on face value, and that as long as the Fed isn't run by spider monkeys stacked in a trench coat, the inflation is likely to be within reasonable bounds.
But on top of this, BTC has Abrupt downside risks that normal currencies don't. Let's imagine a few:

Blockchain solutions are fundamentally inefficient

Blockchain was a genius idea. I still marvel at the initial white paper which is a great mix of economics and computer science.
That said, blockchain solutions make large tradeoffs in design because they assume almost no trust between parties. This leads to intentionally wasteful designs on a massive scale.
The main problem is that all transactions have to be validated by expensive computational operations and double checked by multiple parties. This means waste:
Many design problems can be mitigated by various improvements over BTC, but it remains that a simple database always works better than a blockchain if you can trust the parties to the transaction.
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Bitcoin Newcomers FAQ - Please read!

Welcome to the /Bitcoin Sticky FAQ

You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.
It all started with the release of the release of Satoshi Nakamoto's whitepaper however that will probably go over the head of most readers so we recommend the following videos for a good starting point for understanding how bitcoin works and a little about its long term potential:
Some other great resources include Lopp.net, the Princeton crypto series and James D'Angelo's Bitcoin 101 Blackboard series.
Some excellent writing on Bitcoin's value proposition and future can be found at the Satoshi Nakamoto Institute.
Some Bitcoin statistics can be found here and here. Developer resources can be found here. Peer-reviewed research papers can be found here.
Potential upcoming protocol improvements and scaling resources here and here.
The number of times Bitcoin was declared dead by the media can be found here (LOL!)

Key properties of Bitcoin

Where can I buy bitcoins?

Bitcoin.org and BuyBitcoinWorldwide.com are helpful sites for beginners. You can buy or sell any amount of bitcoin (even just a few dollars worth) and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also check out the bitcoinity exchange resources for a larger list of options for purchases.
Here is a listing of local ATMs. If you would like your paycheck automatically converted to bitcoin use Bitwage.
Note: Bitcoins are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. Preev is a useful site that that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".

Securing your bitcoins

With bitcoin you can "Be your own bank" and personally secure your bitcoins OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoins for you.
Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!
2FA requires a second confirmation code to access your account making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.
Google Auth Authy OTP Auth
Android Android N/A
iOS iOS iOS

Watch out for scams

As mentioned above, Bitcoin is decentralized, which by definition means there is no official website or Twitter handle or spokesperson or CEO. However, all money attracts thieves. This combination unfortunately results in scammers running official sounding names or pretending to be an authority on YouTube or social media. Many scammers throughout the years have claimed to be the inventor of Bitcoin. Websites like bitcoin(dot)com and the btc subreddit are active scams. Almost all altcoins (shitcoins) are marketed heavily with big promises but are really just designed to separate you from your bitcoin. So be careful: any resource, including all linked in this document, may in the future turn evil. Don't trust, verify. Also as they say in our community "Not your keys, not your coins".

Where can I spend bitcoins?

Check out spendabit or bitcoin directory for millions of merchant options. Also you can spend bitcoin anywhere visa is accepted with bitcoin debit cards such as the CashApp card. Some other useful site are listed below.
Store Product
Gyft Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
Spendabit, Overstock and The Bitcoin Directory Retail shopping with millions of results
ShakePay Generate one time use Visa cards in seconds
NewEgg and Dell For all your electronics needs
Bitwa.la, Coinbills, Piixpay, Bitbill.eu, Bylls, Coins.ph, Bitrefill, LivingRoomofSatoshi, Coinsfer, and more Bill payment
Menufy, Takeaway and Thuisbezorgd NL Takeout delivered to your door
Expedia, Cheapair, Destinia, Abitsky, SkyTours, the Travel category on Gyft and 9flats For when you need to get away
Cryptostorm, Mullvad, and PIA VPN services
Namecheap, Porkbun Domain name registration
Stampnik Discounted USPS Priority, Express, First-Class mail postage
Coinmap and AirBitz are helpful to find local businesses accepting bitcoins. A good resource for UK residents is at wheretospendbitcoins.co.uk.
There are also lots of charities which accept bitcoin donations.

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;
If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read more here. Still have mining questions? The crew at /BitcoinMining would be happy to help you out.
If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node using this setup guide. If you would prefer to keep it simple there are several good options. You can view the global node distribution here.

Earning bitcoins

Just like any other form of money, you can also earn bitcoins by being paid to do a job.
Site Description
WorkingForBitcoins, Bitwage, Cryptogrind, Coinality, Bitgigs, /Jobs4Bitcoins, BitforTip, Rein Project Freelancing
Lolli Earn bitcoin when you shop online!
OpenBazaar, Purse.io, Bitify, /Bitmarket, 21 Market Marketplaces
/GirlsGoneBitcoin NSFW Adult services
A-ads, Coinzilla.io Advertising
You can also earn bitcoins by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins.

Bitcoin-Related Projects

The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.
Project Description
Lightning Network Second layer scaling
Blockstream, Rootstock and Drivechain Sidechains
Hivemind and Augur Prediction markets
Tierion and Factom Records & Titles on the blockchain
BitMarkets, DropZone, Beaver and Open Bazaar Decentralized markets
JoinMarket and Wasabi Wallet CoinJoin implementation
Coinffeine and Bisq Decentralized bitcoin exchanges
Keybase Identity & Reputation management
Abra Global P2P money transmitter network
Bitcore Open source Bitcoin javascript library

Bitcoin Units

One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:
Unit Symbol Value Info
bitcoin BTC 1 bitcoin one bitcoin is equal to 100 million satoshis
millibitcoin mBTC 1,000 per bitcoin used as default unit in recent Electrum wallet releases
bit bit 1,000,000 per bitcoin colloquial "slang" term for microbitcoin (μBTC)
satoshi sat 100,000,000 per bitcoin smallest unit in bitcoin, named after the inventor
For example, assuming an arbitrary exchange rate of $10000 for one Bitcoin, a $10 meal would equal:
For more information check out the Bitcoin units wiki.
Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit.
Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.
Welcome to the Bitcoin community and the new decentralized economy!
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August / September monthly report from v1docq47 (CCS + XRM.RU)

This is my monthly progress report (CCS.html) + XMR.RU).
Below is a list of what has been done and translated into Russian for two months of my work.

Monero Video (YouTube)

The following video posted on Monero Russian Community YouTube Channel.

Weekly News:

Short Q&A about Monero:

Monero into Russian (Translation)

The following articles / guides have been translated into Russian and posted on the XMR.RU website and my Github repository.
Note: If you would like to read the original article in English, then, open the article you are interested in, and at the end of each article you will find a link to the source.

Critical Decentralisation Cluster 36c3 (transcriptions (EN + RU) + translation (RU)):

01 - Monero Introduction (Diego "rehrar" Salazar) | Transcriptions - EN.md) / RU.md) / XMR.RU 02 - RIAT Introduction (parasew) | Transcriptions - EN.md) / RU.md) / XMR.RU 03 - Swiss Cryptoeconomics Assembly (polto, Ome) | Transcriptions - EN.md) / RU.md) / XMR.RU 04 - Namecoin Introduction (Jeremy Rand) | Transcriptions - EN.md) / RU.md) / XMR.RU 05 - Open Hardware developed at FOSSASIA (Mario Behling) | Transcriptions - EN.md) / RU.md) / XMR.RU 06 - Paralelni Polis (Juraj Bednar) | Transcriptions - EN.md) / RU.md) / XMR.RU 07 - Introduction to Replicant (dllud, Denis ‘GNUtoo’ Carikli)​ | Transcriptions - EN.md) / RU.md) / XMR.RU 08 - Open Source Hardware and OSHWA (Drew Fustini) | Transcriptions - EN.md) / RU.md) / XMR.RU 09 - ImplicitCAD (Juila Longtin) | Transcriptions - EN.md) / RU.md) / XMR.RU 10 - Program in Detail | Transcriptions - EN / RU / XMR.RU 11 - about:freedom (Bonnie Mehring, Blipp)​ | Transcriptions - EN.md) / RU.md) / XMR.RU 13 - Funding Models of FOSS (Diego “rehrar” Salazar) | Transcriptions - EN.md) / RU.md) / XMR.RU 14 - The Sharp Forks We Follow​ | Transcriptions - EN / RU / XMR.RU 16 - P2P Trading in Cryptoanarchy | Transcriptions - EN / RU / XMR.RU 17 - Monero’s Adaptive Blockweight Approach to Scaling | Transcriptions - EN / RU / XMR.RU 18 - Nym (Harry Halpin)​ | Transcriptions - EN.md) / RU.md) / XMR.RU 19 - Digital Integrity of the Human Person | Transcriptions - EN / RU / XMR.RU 20 - cyber~Congress (Sergey Simanovsky) | Transcriptions - EN.md) / RU.md) / XMR.RU 21 - KYC & Crypto-AML Tools (polto) | Transcriptions - EN.md) / RU.md) / XMR.RU 22 - Parallel Polis, Temporary Autonomous Zones and Beyond | Transcriptions - EN / RU 23 - MandelBot:HAB - Open Source Ecotecture and Horizontalism | Transcriptions - EN / RU 24 - Adventures and Experiments Adding Namecoin to Tor Browser | Transcriptions - EN / RU 25 - Fair Data Society (Gregor Zavcer) | Transcriptions - EN.md) / RU.md) / XMR.RU 45 - Designing a Communal Computing Interface | Transcriptions - EN / RU / XMR.RU 47 - Hackatoshi’s Flying Circuit | Transcriptions - EN / RU / XMR.RU

Zero to Monero - Second Edition

https://www.overleaf.com/read/hcmqnvgtfmyh - Chapter 00 - Abstract - Chapter 01 - Introduction - Chapter 02 - Basic Concepts - Chapter 03 - Advanced Schnorr-like Signatures

Monero Outreach Articles

Getmonero.org Posts Blog

LocalMonero Articles

Note: You need "Change Language" to Russian - Why Monero Has A Tail Emission - How CLSAG Will Improve Monero's Efficiency - How Monero Solved the Block Size Problem That Plagues Bitcoin - How Ring Signatures Obscure Monero's Outputs - Monero Best Practices for Beginners - Monero Outputs Explained

Monero Meeting logs

CCS Result / Report

Monero News

Other Articles

Pull / Merge Request

Monero Project Translations (Weblate)

Thanks for your support!
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How EpiK Protocol “Saved the Miners” from Filecoin with the E2P Storage Model?

How EpiK Protocol “Saved the Miners” from Filecoin with the E2P Storage Model?

https://preview.redd.it/n5jzxozn27v51.png?width=2222&format=png&auto=webp&s=6cd6bd726582bbe2c595e1e467aeb3fc8aabe36f
On October 20, Eric Yao, Head of EpiK China, and Leo, Co-Founder & CTO of EpiK, visited Deep Chain Online Salon, and discussed “How EpiK saved the miners eliminated by Filecoin by launching E2P storage model”. ‘?” The following is a transcript of the sharing.
Sharing Session
Eric: Hello, everyone, I’m Eric, graduated from School of Information Science, Tsinghua University. My Master’s research was on data storage and big data computing, and I published a number of industry top conference papers.
Since 2013, I have invested in Bitcoin, Ethereum, Ripple, Dogcoin, EOS and other well-known blockchain projects, and have been settling in the chain circle as an early technology-based investor and industry observer with 2 years of blockchain experience. I am also a blockchain community initiator and technology evangelist
Leo: Hi, I’m Leo, I’m the CTO of EpiK. Before I got involved in founding EpiK, I spent 3 to 4 years working on blockchain, public chain, wallets, browsers, decentralized exchanges, task distribution platforms, smart contracts, etc., and I’ve made some great products. EpiK is an answer to the question we’ve been asking for years about how blockchain should be landed, and we hope that EpiK is fortunate enough to be an answer for you as well.
Q & A
Deep Chain Finance:
First of all, let me ask Eric, on October 15, Filecoin’s main website launched, which aroused everyone’s attention, but at the same time, the calls for fork within Filecoin never stopped. The EpiK protocol is one of them. What I want to know is, what kind of project is EpiK Protocol? For what reason did you choose to fork in the first place? What are the differences between the forked project and Filecoin itself?
Eric:
First of all, let me answer the first question, what kind of project is EpiK Protocol.
With the Fourth Industrial Revolution already upon us, comprehensive intelligence is one of the core goals of this stage, and the key to comprehensive intelligence is how to make machines understand what humans know and learn new knowledge based on what they already know. And the knowledge graph scale is a key step towards full intelligence.
In order to solve the many challenges of building large-scale knowledge graphs, the EpiK Protocol was born. EpiK Protocol is a decentralized, hyper-scale knowledge graph that organizes and incentivizes knowledge through decentralized storage technology, decentralized autonomous organizations, and generalized economic models. Members of the global community will expand the horizons of artificial intelligence into a smarter future by organizing all areas of human knowledge into a knowledge map that will be shared and continuously updated for the eternal knowledge vault of humanity
And then, for what reason was the fork chosen in the first place?
EpiK’s project founders are all senior blockchain industry practitioners and have been closely following the industry development and application scenarios, among which decentralized storage is a very fresh application scenario.
However, in the development process of Filecoin, the team found that due to some design mechanisms and historical reasons, the team found that Filecoin had some deviations from the original intention of the project at that time, such as the overly harsh penalty mechanism triggered by the threat to weaken security, and the emergence of the computing power competition leading to the emergence of computing power monopoly by large miners, thus monopolizing the packaging rights, which can be brushed with computing power by uploading useless data themselves.
The emergence of these problems will cause the data environment on Filecoin to get worse and worse, which will lead to the lack of real value of the data in the chain, high data redundancy, and the difficulty of commercializing the project to land.
After paying attention to the above problems, the project owner proposes to introduce multi-party roles and a decentralized collaboration platform DAO to ensure the high value of the data on the chain through a reasonable economic model and incentive mechanism, and store the high-value data: knowledge graph on the blockchain through decentralized storage, so that the lack of value of the data on the chain and the monopoly of large miners’ computing power can be solved to a large extent.
Finally, what differences exist between the forked project and Filecoin itself?
On the basis of the above-mentioned issues, EpiK’s design is very different from Filecoin, first of all, EpiK is more focused in terms of business model, and it faces a different market and track from the cloud storage market where Filecoin is located because decentralized storage has no advantage over professional centralized cloud storage in terms of storage cost and user experience.
EpiK focuses on building a decentralized knowledge graph, which reduces data redundancy and safeguards the value of data in the distributed storage chain while preventing the knowledge graph from being tampered with by a few people, thus making the commercialization of the entire project reasonable and feasible.
From the perspective of ecological construction, EpiK treats miners more friendly and solves the pain point of Filecoin to a large extent, firstly, it changes the storage collateral and commitment collateral of Filecoin to one-time collateral.
Miners participating in EpiK Protocol are only required to pledge 1000 EPK per miner, and only once before mining, not in each sector.
What is the concept of 1000 EPKs, you only need to participate in pre-mining for about 50 days to get this portion of the tokens used for pledging. The EPK pre-mining campaign is currently underway, and it runs from early September to December, with a daily release of 50,000 ERC-20 standard EPKs, and the pre-mining nodes whose applications are approved will divide these tokens according to the mining ratio of the day, and these tokens can be exchanged 1:1 directly after they are launched on the main network. This move will continue to expand the number of miners eligible to participate in EPK mining.
Secondly, EpiK has a more lenient penalty mechanism, which is different from Filecoin’s official consensus, storage and contract penalties, because the protocol can only be uploaded by field experts, which is the “Expert to Person” mode. Every miner needs to be backed up, which means that if one or more miners are offline in the network, it will not have much impact on the network, and the miner who fails to upload the proof of time and space in time due to being offline will only be forfeited by the authorities for the effective computing power of this sector, not forfeiting the pledged coins.
If the miner can re-submit the proof of time and space within 28 days, he will regain the power.
Unlike Filecoin’s 32GB sectors, EpiK’s encapsulated sectors are smaller, only 8M each, which will solve Filecoin’s sector space wastage problem to a great extent, and all miners have the opportunity to complete the fast encapsulation, which is very friendly to miners with small computing power.
The data and quality constraints will also ensure that the effective computing power gap between large and small miners will not be closed.
Finally, unlike Filecoin’s P2P data uploading model, EpiK changes the data uploading and maintenance to E2P uploading, that is, field experts upload and ensure the quality and value of the data on the chain, and at the same time introduce the game relationship between data storage roles and data generation roles through a rational economic model to ensure the stability of the whole system and the continuous high-quality output of the data on the chain.
Deep Chain Finance:
Eric, on the eve of Filecoin’s mainline launch, issues such as Filecoin’s pre-collateral have aroused a lot of controversy among the miners. In your opinion, what kind of impact will Filecoin bring to itself and the whole distributed storage ecosystem after it launches? Do you think that the current confusing FIL prices are reasonable and what should be the normal price of FIL?
Eric:
Filecoin mainnet has launched and many potential problems have been exposed, such as the aforementioned high pre-security problem, the storage resource waste and computing power monopoly caused by unreasonable sector encapsulation, and the harsh penalty mechanism, etc. These problems are quite serious, and will greatly affect the development of Filecoin ecology.
These problems are relatively serious, and will greatly affect the development of Filecoin ecology, here are two examples to illustrate. For example, the problem of big miners computing power monopoly, now after the big miners have monopolized computing power, there will be a very delicate state — — the miners save a file data with ordinary users. There is no way to verify this matter in the chain, whether what he saved is uploaded by himself or someone else. And after the big miners have monopolized computing power, there will be a very delicate state — — the miners will save a file data with ordinary users, there is no way to verify this matter in the chain, whether what he saved is uploaded by himself or someone else. Because I can fake another identity to upload data for myself, but that leads to the fact that for any miner I go to choose which data to save. I have only one goal, and that is to brush my computing power and how fast I can brush my computing power.
There is no difference between saving other people’s data and saving my own data in the matter of computing power. When I save someone else’s data, I don’t know that data. Somewhere in the world, the bandwidth quality between me and him may not be good enough.
The best option is to store my own local data, which makes sense, and that results in no one being able to store data on the chain at all. They only store their own data, because it’s the most economical for them, and the network has essentially no storage utility, no one is providing storage for the masses of retail users.
The harsh penalty mechanism will also severely deplete the miner’s profits, because DDOS attacks are actually a very common attack technique for the attacker, and for a big miner, he can get a very high profit in a short period of time if he attacks other customers, and this thing is a profitable thing for all big miners.
Now as far as the status quo is concerned, the vast majority of miners are actually not very well maintained, so they are not very well protected against these low-DDOS attacks. So the penalty regime is grim for them.
The contradiction between the unreasonable system and the demand will inevitably lead to the evolution of the system in a more reasonable direction, so there will be many forked projects that are more reasonable in terms of mechanism, thus attracting Filecoin miners and a diversion of storage power.
Since each project is in the field of decentralized storage track, the demand for miners is similar or even compatible with each other, so miners will tend to fork the projects with better economic benefits and business scenarios, so as to filter out the projects with real value on the ground.
For the chaotic FIL price, because FIL is also a project that has gone through several years, carrying too many expectations, so it can only be said that the current situation has its own reasons for existence. As for the reasonable price of FIL there is no way to make a prediction because in the long run, it is necessary to consider the commercialization of the project to land and the value of the actual chain of data. In other words, we need to keep observing whether Filecoin will become a game of computing power or a real value carrier.
Deep Chain Finance:
Leo, we just mentioned that the pre-collateral issue of Filecoin caused the dissatisfaction of miners, and after Filecoin launches on the main website, the second round of space race test coins were directly turned into real coins, and the official selling of FIL hit the market phenomenon, so many miners said they were betrayed. What I want to know is, EpiK’s main motto is “save the miners eliminated by Filecoin”, how to deal with the various problems of Filecoin, and how will EpiK achieve “save”?
Leo:
Originally Filecoin’s tacit approval of the computing power makeup behavior was to declare that the official directly chose to abandon the small miners. And this test coin turned real coin also hurt the interests of the loyal big miners in one cut, we do not know why these low-level problems, we can only regret.
EpiK didn’t do it to fork Filecoin, but because EpiK to build a shared knowledge graph ecology, had to integrate decentralized storage in, so the most hardcore Filecoin’s PoRep and PoSt decentralized verification technology was chosen. In order to ensure the quality of knowledge graph data, EpiK only allows community-voted field experts to upload data, so EpiK naturally prevents miners from making up computing power, and there is no reason for the data that has no value to take up such an expensive decentralized storage resource.
With the inability to make up computing power, the difference between big miners and small miners is minimal when the amount of knowledge graph data is small.
We can’t say that we can save the big miners, but we are definitely the optimal choice for the small miners who are currently in the market to be eliminated by Filecoin.
Deep Chain Finance:
Let me ask Eric: According to EpiK protocol, EpiK adopts the E2P model, which allows only experts in the field who are voted to upload their data. This is very different from Filecoin’s P2P model, which allows individuals to upload data as they wish. In your opinion, what are the advantages of the E2P model? If only voted experts can upload data, does that mean that the EpiK protocol is not available to everyone?
Eric:
First, let me explain the advantages of the E2P model over the P2P model.
There are five roles in the DAO ecosystem: miner, coin holder, field expert, bounty hunter and gateway. These five roles allocate the EPKs generated every day when the main network is launched.
The miner owns 75% of the EPKs, the field expert owns 9% of the EPKs, and the voting user shares 1% of the EPKs.
The other 15% of the EPK will fluctuate based on the daily traffic to the network, and the 15% is partly a game between the miner and the field expert.
The first describes the relationship between the two roles.
The first group of field experts are selected by the Foundation, who cover different areas of knowledge (a wide range of knowledge here, including not only serious subjects, but also home, food, travel, etc.) This group of field experts can recommend the next group of field experts, and the recommended experts only need to get 100,000 EPK votes to become field experts.
The field expert’s role is to submit high-quality data to the miner, who is responsible for encapsulating this data into blocks.
Network activity is judged by the amount of EPKs pledged by the entire network for daily traffic (1 EPK = 10 MB/day), with a higher percentage indicating higher data demand, which requires the miner to increase bandwidth quality.
If the data demand decreases, this requires field experts to provide higher quality data. This is similar to a library with more visitors needing more seats, i.e., paying the miner to upgrade the bandwidth.
When there are fewer visitors, more money is needed to buy better quality books to attract visitors, i.e., money for bounty hunters and field experts to generate more quality knowledge graph data. The game between miners and field experts is the most important game in the ecosystem, unlike the game between the authorities and big miners in the Filecoin ecosystem.
The game relationship between data producers and data storers and a more rational economic model will inevitably lead to an E2P model that generates stored on-chain data of much higher quality than the P2P model, and the quality of bandwidth for data access will be better than the P2P model, resulting in greater business value and better landing scenarios.
I will then answer the question of whether this means that the EpiK protocol will not be universally accessible to all.
The E2P model only qualifies the quality of the data generated and stored, not the roles in the ecosystem; on the contrary, with the introduction of the DAO model, the variety of roles introduced in the EpiK ecosystem (which includes the roles of ordinary people) is not limited. (Bounty hunters who can be competent in their tasks) gives roles and possibilities for how everyone can participate in the system in a more logical way.
For example, a miner with computing power can provide storage, a person with a certain domain knowledge can apply to become an expert (this includes history, technology, travel, comics, food, etc.), and a person willing to mark and correct data can become a bounty hunter.
The presence of various efficient support tools from the project owner will lower the barriers to entry for various roles, thus allowing different people to do their part in the system and together contribute to the ongoing generation of a high-quality decentralized knowledge graph.
Deep Chain Finance:
Leo, some time ago, EpiK released a white paper and an economy whitepaper, explaining the EpiK concept from the perspective of technology and economy model respectively. What I would like to ask is, what are the shortcomings of the current distributed storage projects, and how will EpiK protocol be improved?
Leo:
Distributed storage can easily be misunderstood as those of Ali’s OceanDB, but in the field of blockchain, we should focus on decentralized storage first.
There is a big problem with the decentralized storage on the market now, which is “why not eat meat porridge”.
How to understand it? Decentralized storage is cheaper than centralized storage because of its technical principle, and if it is, the centralized storage is too rubbish for comparison.
What incentive does the average user have to spend more money on decentralized storage to store data?
Is it safer?
Existence miners can shut down at any time on decentralized storage by no means save a share of security in Ariadne and Amazon each.
More private?
There’s no difference between encrypted presence on decentralized storage and encrypted presence on Amazon.
Faster?
The 10,000 gigabytes of bandwidth in decentralized storage simply doesn’t compare to the fiber in a centralized server room. This is the root problem of the business model, no one is using it, no one is buying it, so what’s the big vision.
The goal of EpiK is to guide all community participants in the co-construction and sharing of field knowledge graph data, which is the best way for robots to understand human knowledge, and the more knowledge graph data there is, the more knowledge a robot has, the more intelligent it is exponentially, i.e., EpiK uses decentralized storage technology. The value of exponentially growing data is captured with linearly growing hardware costs, and that’s where the buy-in for EPK comes in.
Organized data is worth a lot more than organized hard drives, and there is a demand for EPK when robots have the need for intelligence.
Deep Chain Finance:
Let me ask Leo, how many forked projects does Filecoin have so far, roughly? Do you think there will be more or less waves of fork after the mainnet launches? Have the requirements of the miners at large changed when it comes to participation?
Leo:
We don’t have specific statistics, now that the main network launches, we feel that forking projects will increase, there are so many restricted miners in the market that they need to be organized efficiently.
However, we currently see that most forked projects are simply modifying the parameters of Filecoin’s economy model, which is undesirable, and this level of modification can’t change the status quo of miners making up computing power, and the change to the market is just to make some of the big miners feel more comfortable digging up, which won’t help to promote the decentralized storage ecology to land.
We need more reasonable landing scenarios so that idle mining resources can be turned into effective productivity, pitching a 100x coin instead of committing to one Fomo sentiment after another.
Deep Chain Finance:
How far along is the EpiK Protocol project, Eric? What other big moves are coming in the near future?
Eric:
The development of the EpiK Protocol is divided into 5 major phases.
(a) Phase I testing of the network “Obelisk”.
Phase II Main Network 1.0 “Rosetta”.
Phase III Main Network 2.0 “Hammurabi”.
(a) The Phase IV Enrichment Knowledge Mapping Toolkit.
The fifth stage is to enrich the knowledge graph application ecology.
Currently in the first phase of testing network “Obelisk”, anyone can sign up to participate in the test network pre-mining test to obtain ERC20 EPK tokens, after the mainnet exchange on a one-to-one basis.
We have recently launched ERC20 EPK on Uniswap, you can buy and sell it freely on Uniswap or download our EpiK mobile wallet.
In addition, we will soon launch the EpiK Bounty platform, and welcome all community members to do tasks together to build the EpiK community. At the same time, we are also pushing forward the centralized exchange for token listing.
Users’ Questions
User 1:
Some KOLs said, Filecoin consumed its value in the next few years, so it will plunge, what do you think?
Eric:
First of all, the judgment of the market is to correspond to the cycle, not optimistic about the FIL first judgment to do is not optimistic about the economic model of the project, or not optimistic about the distributed storage track.
First of all, we are very confident in the distributed storage track and will certainly face a process of growth and decline, so as to make a choice for a better project.
Since the existing group of miners and the computing power already produced is fixed, and since EpiK miners and FIL miners are compatible, anytime miners will also make a choice for more promising and economically viable projects.
Filecoin consumes the value of the next few years this time, so it will plunge.
Regarding the market issues, the plunge is not a prediction, in the industry or to keep learning iteration and value judgment. Because up and down market sentiment is one aspect, there will be more very important factors. For example, the big washout in March this year, so it can only be said that it will slow down the development of the FIL community. But prices are indeed unpredictable.
User2:
Actually, in the end, if there are no applications and no one really uploads data, the market value will drop, so what are the landing applications of EpiK?
Leo: The best and most direct application of EpiK’s knowledge graph is the question and answer system, which can be an intelligent legal advisor, an intelligent medical advisor, an intelligent chef, an intelligent tour guide, an intelligent game strategy, and so on.
submitted by EpiK-Protocol to u/EpiK-Protocol [link] [comments]

Roger Ver lies Lounge

Roger Ver is a liar with proof:

"Mt. Gox is totally fine." ... shortly thereafter Mt. Gox implodes ... "I am here to 'apologize'. Even though everything I said when I told you 'Mt. Gox is fine' was true, I am sorry that some of you lost money when it collapsed. Buy ether."
"I am banned from posting in /Bitcoin" ... accidentally posts to /Bitcoin ... "Oops. Now I'll pretend like I never claimed to be banned from /Bitcoin, and ignore anyone who asks me about that claim."
"I've dumped a few hundred BTC for BCH"... 2 weeks later: "I haven't sold a single Bitcoin for Bitcoin Cash up until yesterday"
He lies about the subreddit he controls. He regularly lies about his holdings. He lied and scammed his way into the bitcoin.com domain, which he uses to push out FUD about Bitcoin and its developers. He lies on agreements he signs (e.g. "the bitcoin.com pool will mine with NYA/btc1/2x code... whoops just kidding, we're mining bch instead"). He even had the audacity to lie about what happened in court, when there is a public transcript available which disproves everything he said.
EDIT1:
This post's links (and the surrounding thread) shows Ver's history of promoting the bitclub ponzi, making excuses for its principles when they got arrested, and lying about his involvement: https://www.reddit.com/btc/comments/e94qxa/bitcoincom_exceo_and_convicted_felon_roger_vefaghpbm/
Please add to this list of LIES.
submitted by Where-is-my-BAB to BitcoinDotCON [link] [comments]

personally I don't care about craig being satoshi or not, I care that he was able to scale bitcoin (BSV) onchain as this is much better than being satoshi in my books

submitted by zhell_ to bsv [link] [comments]

Why are Visa, Mastercard and PayPal ready to integrate crypto payments?

Why are Visa, Mastercard and PayPal ready to integrate crypto payments?

Why are Visa, Mastercard and PayPal ready to integrate crypto payments?
In the past few months, payment giants Visa, Mastercard and PayPal have radically changed their attitude towards cryptocurrencies and blockchain technology, announcing their intention to integrate crypto payments into their systems. It is about the process of global adoption of crypto-innovation in the world of traditional finance.

Visa experience

On March 16, 2018, Visa CFO Vasant Prabhu criticized cryptocurrencies, including bitcoin, stressing that these assets are a bubble. Then Bitcoin was worth $8,300.
On July 22 of this year, when the first cryptocurrency rose to $9,360, a message appeared on the official Visa blog with a completely different message entitled “Developing our approach to digital currency.” In this post, the company revealed that its partnership with two regulated crypto platforms, Coinbase and Fold, is part of a corporate strategy to integrate digital currencies into its payment system, reaching 61 million retailers. In its message, the company highlighted the importance of stablecoins, which “have stepped outside the fintech sphere,” and now include a number of financial institutions and central banks in their ecosystem.
From the message of the payment giant it became known that “more than 25 digital wallets have linked their services to Visa.” Visa also noted that these 25 crypto service providers will be able to leverage the payment giant’s full range of capabilities, including the Visa Direct option and the FastTrack platform. It is worth noting that the corporation also supported financially the company Anchorage, which is studying the issues of cybersecurity of cryptocurrency ecosystems. Visa says the company’s main goal is “to continue to do what we do best: develop our system, supporting new forms of commerce.”
On July 28, at a meeting with investors, in which Vasant Prabhu took part, it was said in detail that Visa sees great potential for its own development in the growing popularity of e-commerce and digital payments. It was also mentioned about the corporate payment system Visa B2B Connect, which is designed to perform international financial transfers without the help of the usually slow correspondent banking network.

Mastercard experience

A similar evolution is taking place before our eyes with Visa’s competitor — Mastercard payment system.
So, on July 26, 2018, the CEO of Mastercard, Ajay Banga, compared cryptocurrencies to things that are thrown into the trash. However, two years later, the payment corporation has largely changed its approach to cryptocurrencies. On July 20, it became known that Mastercard has signed an agreement with the Wirex cryptocurrency company. This financial startup allows you to buy and sell cryptocurrencies for fiat money. Since last month, Wirex has become a member of the Mastercard ecosystem with the right to independently issue cards from this payment giant. We will remind that earlier, in February of this year, a similar decision was made by the Visa corporation in relation to the Coinbase crypto exchange.
Moreover, Mastercard intends to launch a special program to support other crypto companies. As Raj Damodaran, Executive Vice President of Digital Assets, Blockchain Products and Partnerships, Mastercard explained, “The crypto market continues to evolve, and the corporation is helping to advance it by providing reliable and secure services for individuals and companies in the modern digital economy.

PayPal experience

Another payment giant, PayPal, has long been silent about any intention to integrate cryptocurrencies into its structure. However, on July 14, a letter from the corporation to officials of the European Commission was published in the media, where PayPal admitted that it is actively developing applications using cryptocurrencies.
The number of PayPal users worldwide exceeds 300 million people, and the company operates in Europe thanks to its banking and payment services license obtained in Luxembourg. In total, the PayPal payment service is represented in 31 European countries, where the company serves 95 million merchants and retail consumers. It is worth noting that PayPal, along with Visa and Mastercard, was previously part of the Swiss Libra Association, which is implementing Facebook’s crypto project to launch the Libra stablecoin.
The fact that PayPal is developing a roadmap for integrating its own payment crypto services is also clearly demonstrated by the announcement of the recruitment of members of the blockchain technology research team, which requires a senior research engineer. This specialist will be responsible for “development, creation and maintenance of key crypto products / services that will be focused on increasing the efficiency and scale of services provided by PayPal.” Information about the open vacancy appeared at the end of June.
PayPal does not deny its interest in the cryptosphere, but has not yet confirmed information about the development of certain crypto applications or services, for example, based on the Venmo mobile application, which is affiliated with the payment giant.

Who will be the leader in this race?

Nevertheless, crypto market players themselves are actively looking for ways to integrate with PayPal. This is illustrated by the example of blockchain company Pundi X, which integrated PayPal support for its Xpos merchant device on July 1.
Another player in the crypto industry, the fintech company Ripple, has not only supported the classic payment operator MoneyGram by buying 10% of its share capital and investing a total of $50 million, but continues to invest in the integration of cryptocurrencies into this service. Following the results of the second quarter, Ripple transferred $15.1 million to MoneyGram. It is curious that in June another payment operator, Western Union, became interested in the innovative successes of MoneyGram, which is considering buying a competitor. It is worth noting that back in January this year, experts from Credit Suisse Bank published a report in which they noted Western Union’s interest in blockchain technology and Ripple’s payment innovations.
The competition for the integration of cryptocurrencies into the services of payment operators is becoming more and more intense. And one of the main participants in this race was the People’s Bank of China with a digital yuan project. At the same time, in January, even before the aggravation of relations between the United States and China, American PayPal became the first foreign payment operator to officially enter the Chinese market after acquiring a local player GoPay.

The next development step is neobanks

Meanwhile, a number of fintech startups are engaged in the integration of cryptocurrencies into financial services, which can potentially challenge all of the above organizations, including the People’s Bank of China with its digital yuan.
Jack Dorsey’s Square company was able to receive revenue from operations with bitcoins in the amount of $306 million in the first quarter of this year. This cryptocurrency service was launched back in 2018, but only in 2020 saw a significant increase in financial indicators. At the same time, since March, through the Square Financial Services division, Jack Dorsey’s company has been able to provide services as a digital bank.
Another fintech giant, Revolut US, with the support of crypto company Paxos, began offering cryptocurrency trading services in all US states on July 15, with the exception of Tennessee. Curiously, traditional financial service providers are also interested in a new partnership with the cryptocurrency “unicorn”. So, on June 20, the international company Revolut announced that it was integrating American Express services for its customers.
In the case of Square, Robinhood and Revolut, this is not just about trading services, which are provided by various crypto exchanges. After all, all these companies are de facto neobanks — digital financial organizations that have every opportunity to integrate cryptocurrencies into their services, thanks to various partnerships. And the range of possibilities of such neobanks is much higher than that of traditional payment giants.
That is why in the near future we will witness how Visa, Mastercard and PayPal will actively explore the possibilities of buying or investing in a ready-made cryptocurrency infrastructure. These corporations are entering the crypto world, as it is increasingly becoming a matter of their survival in the rapidly changing global financial system.
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submitted by Smart_Smell to Robopay [link] [comments]

Bluzelle - The database for decentralized applications - Staking and Update coming soon!!!

What does Bluzelle deliver?
Bluzelle delivers the most practical solution to add a decentralized database storage to your decentralized applications and other products to solve datamanagement and security. Thereby bluzelle can work with any database product, no matter if SQL or noSQL and Bluzelle brings high availability with high performance and onboarding customers to bluzelle database is very easy.
How does Bluzelle work?
"Bluzelle’s key service is to provide a database of records that are also immune to tampering. Bluzelle acts as a cache for key-value pairs. Being a cache, Bluzelle provides some of the key attributes that differentiate a cache from a database, such as data expiry and eviction.
Bluzelle Cache in fact was inspired by many blockchain concepts but is nonetheless, fundamentally different from a blockchain. Bluzelle consists of swarms. Each swarm is a network of nodes, each of which is equal in voting power and is expendable, much like the blockchain. Each swarm is mutually exclusive, meaning that the data on a given swarm is not found on any other swarm. Each swarm consists of nodes that are strategically located to provide edge caching values to customers of the cache. Like blockchains, Bluzelle swarms can form and operate based on crowdsourced resources, without central power authorities."
Differences to traditional blockchains:
Utility of then token:
Partnerships:
Numbers and short facts:
Biggest competitors:
More information about Bluzelle:
  1. 02/2018: https://www.youtube.com/watch?v=YEfnI4kE9Fo
  2. 07/2019: https://www.youtube.com/watch?v=Ln28_I1tT70
Why now?
Because I found out on Twitter that according to their roadmap and telegram they expect the Kepler release between next week and middle of June. This is a huge step. It means:
This is no financial advice, always DYOR. But this project is not the average shitcoin, which appears here. There is a solid foundation behind Bluzelle and with their Kepler release I expect them to finally gain their deserved attention. Staking is finally coming! It's time to hop onboard.
submitted by GOYA58 to CryptoMoonShots [link] [comments]

Vechain in the last 30 Days: Apotheosis, Blockchain X, BMW, University partnership, DApp ecosystem, BitOcean ICO, Carbon banking, Live use cases, Early adopter rewards and more

This post is for those who are new to Cryptocurrency or want to find out more about VeChain. The text "VeChain" has been banned in this subreddit for the last 30 days. For more details about the ban itself, please visit this cryptocurrencymeta post. Changes have been made and official channels of communications have been opened up to prevent this from happening in the future.
All feedback is welcome, and all discussion is encouraged, but please no moon-posting, ridiculous price speculation or baseless FUD. Looking forward to answering any questions you guys have :) VeChain Foundation COO Kevin Feng is holding a Business AMA with Boxmining today, so new information is coming very soon.

TL:DR.

Updates from the last 30 days

It's been a big month for VeChain as they have continued to work and share with the community. Here are the updates from their Official Medium channel and Reddit Rebrand Post

New website - https://www.vechain.org/

It has loads of useful information and a well produced introduction video. I would highly recommend reading through the website to get an idea of the scope of what VeChainThor is trying to accomplish.
"We are controlled by the few, the powerful and the greedy. We should be free. Free to choose, to trade, to create. It is time for a new world, a world founded on safety and security. A world where everything you do creates power, power for all. And you, you will decide the shape of this world. The power to change the future, is in your hands. VeChain." VeChain Introduction Video

What is Blockchain X?

Blockchain X is a global enterprise level public blockchain platform. VeChainThor is referring to their network/protocol as Blockchain X, to differentiate it from Bitcoin (Blockchain 1.0) and Ethereum (Blockchain 2.0 = Blockchain 1.0 + Smart Contracts).

Blockchain X = Blockchain 2.0 + IoT + AI + VET/VeThor = A living digital ecosystem

  • Blockchain = structure - bones, muscle etc (immutable trustworthy network)
  • IoT = senses - touch, vision, taste, smell, sound (collect real world information from RFID/NFC/QR etc.)
  • VET/VeThor = bone marrow/blood - generate blood & circulate (value transfer on the network)
  • AI = brain - information synthesis (automation of network with deep learning)

VeChainThor: the top candidate for enterprise and government level adoption of Blockchain

VeChainThor has an extremely strong development plan geared towards enterprise and government level adoption. If successful in their execution, I see VeChain being the leading cryptoasset comparable to Ethereum in size. The reasons I believe they will succeed are due to their ecosystem development, innovative governance model, robust economic model and strong strategic partnerships. The evidence of their success is snowballing with each new enterprise level partner and client.

DApps & Ecosystem development

The infrastructure layer has adoption in mind at the very core. Governments and enterprises will prioritise safety and security before venturing into blockchain adoption. (Mentioned in the introduction video.) The core DApps, VeVID (Verified identity, KYC/AML), VeVOT (Voting, Governance tool) and VeSCC (Smart Contract Certification, Regulatory compliance) provide the safety and security that governments and enterprises will demand. Blockchain X will have built-in KYC/AML, Governance and Regulation compliance. This sets it apart from other protocols and ICO platforms.

Governance model

The governance model is a balanced mix of decentralisation and centralisation. With problems such as Bitcoin's scaling debate, it appears that a purely decentralised governance structure may be inefficient. VeChain will use a new model of a decentralised system through centralised channels. The final decisions will be made in a decentralised democratic process through VeVOT by stakeholders with voting authority. I believe this model will be more widely adopted as it retains some of the efficient centralised channels that enterprise & government are familiar with, while still giving overall control to the network participants via a democratic voting system.

Economic model

The two-token economic model splits the value in the network into VET and VeThor. VET's primary function is to generate VeThor. VeThor represents the underlying costs of using the VeChainThor blockchain. All smart contract execution and transactions will require payment with VeThor. Through the dynamic rate of VeThor generation, the fiat value of VeThor can be kept relatively stable. For example, if the VeThor price was too high due to an increase in enterprise demand, the VeThor generation rate can be increased, which increases supply, and brings the price back down. The opposite is also true if the VeThor price is too low. The way I see VET is a store of value, a representation of ownership of part of the network and the right to use the network. Whereas VeThor is the perfect medium of exchange and a pure utility token. By using a two-token system, VeThor can have a stable fiat value over a long period of time. A company will be able to calculate how much VeThor will be needed for a consistent fiat value year after year and will be able to budget for this. This is extremely useful for enterprise and government level adoption since it removes the inherent price volatility from a nascent market like crypto.
VeChain also has a Node system, whereby holding VET generates additional rewards. Nodes of different levels will generate up to 200% additional VeThor compared to the base rate. This encourages long term staking in the network and decreases volatility. See the Apotheosis Part II article and X Series Node article for more information. A portion of VET supply will be locked up when nodes activate. Long term VET holders will not sell and downgrade their status. This decreased supply will lead to price increases. Early adopters (Deadline to stake: Before 20th March 2018) will be rewarded in the new X Series Node system. Features include exclusive participation in VeChain ecosystem project whitelists. (Something I'm excited about since I believe there will be a handful of reverse ICOs from traditional enterprise clients)

Technology

VeChain is planning on adding more than 100 additional full-time developers by the end of 2018.
For those interested in the technology of Blockchain X, I would direct you to the Medium AMAs where the VeChain team have provided detailed answers to common questions. Hardware 1, Hardware 2, Software 1 and Software 2 are worth a read.

Strategic partners

The three strategic partners each play a key role in VeChainThor's expansion. PWC has clients which make up 85% of the Fortune 500. DNV-GL is the preferred provider of those Fortune 500 companies for management systems certification services. PWC and DNV-GL will serve to introduce their enterprise clients to VeChain and increase adoption. BitOcean is positioning itself as a Fiat on-ramp for Crypto in Japan through physical ATMs and online exchanges, with approval by Japan's Financial Services Authority. BitOcean also plans to operate in China when regulations are finalised. BitOcean represents a Fiat/VET pairing that may serve to decouple VET/BTC and lead to independence of VET from the whims of BTC price.

Evidence of adoption to date: Existing clients & Investors

VeChain currently has 180 business opportunities in their pipeline for 2018 (compared to 4 use cases in 2016 and 22 in 2017). They have real uses cases and existing clients that range from medium to large enterprises. Revealed clients include Chinese Government Gui'an New Area project, BMW, Groupe Renault, DIG, Kuehne + Nagel, China Unicom, NRCC - State Tobacco, MLILY, Sunshine culture, Hubei Sanxin Cultural Media, Fanghuwang, YIDA future, Madeforgoods and iTaotaoke. Each of these partnerships deserve a detailed post on their own, they are all available on VeChain's Medium page. Taken together, it becomes clear what type of Ecosystem VeChainThor is trying to build.
Jiangsu Printed Electronics and Xiamen Innov Information Technology are technology partners and I suspect will be mass producing the RFID/NFC chips.
Breyer Capital and Fenbushi capital are the two featured investors on VeChain's website. Jim Breyer generally makes some pretty smart investment decisions. His only other crypto investments are Circle and Ethereum.
Bonus news: This week they are presenting with DNV-GL a cold chain supply chain solution at the Global Food Safety Initiative conference 2018. Zoom in and you'll see VeChain Intelligent Control Display System. DNV-GL have also launched their new digital assurance solution, My Story™. Four top Italian wine producers are using My Story™ under supervision of the Italian wine authorities. Twitter and DNVGL link.

China's potential

China is widely known to be anti-cryptocurrency but extremely pro-blockchain. China's "13th Five year plan 2016-2020" focuses on moving up in the value chain by abandoning old heavy industry and building up bases of modern information-intensive infrastructure, with blockchain and Smart Cities being a key technological focus. VeChain has achieved approval from the Government of the People's Republic of China with Gui'an New Area project, multiple mentions on state owned media (CCTV) and deals with state owned enterprises (China Tobacco). China will not fall behind in the international Blockchain race, they will finalise regulations and adopt Blockchain rapidly in the coming years. VeChain appears to be one of the leaders in the field, with their largest office in Shanghai and existing government connections.

Leader in the field

Last but not least, VeChain is leading the field in a number of areas.
  1. Academic research: VeResearch with Michigan State University #1 for supply chain management and another university to be announced
  2. Transparency: quarterly financial reports, regular social media updates, multiple AMAs, response to cryptocurrency ban, directly addressing FUD in official Telegram channels
  3. Corporate responsibility: cryptocurrency disaster recovery plan
  4. Environmental responsibility: Carbon bank initiative with DNV-GL

Skeptics section

In the interests of balanced discussion, I will update this section with skepticism I find in the comments below.
  1. "No whitepaper"
    • VeChain are working on a Whitepaper as part of their Q1 2018 goals. Information normally found in a Whitepaper has been made available through the development plan. I'm actually not too fussed about not having a whitepaper. For me evidence of enterprise adoption is a more useful indicator of how successful VeChainThor could be.
  2. "No official wallet" "No Mainnet"
    • VeChainThor has been operating as a private blockchain since June 2016. Public VeChainThor Blockchain Launch, VeChain Wallet with VeThor Forge Function will be released in Q2 2018 according to the roadmap.
  3. "VeChain are dumping their VET on the open market"
  4. "Can we talk about the fact that the BMW "partnership" is not really a partnership? VEN is allowed to participate into a startup program hosted by BMW. BMW is not a client. http://www.bmwstartupgarage.com/partner " - u/DutchDolt
    • "BMWstartupgarage" has neither been confirmed or denied by BMW or VeChain, it has been spread by a youtuber called "Crypto Gem"
    • Going to the website linked, BMW refers to successful participants as both partners and clients
    • This is still a developing partnership with details under NDA, however the VeChain/BMW link has been confirmed at the VeChain rebranding event and by Sarah VeChain Country Manager
  5. "Vote manipulation" "Shilling" "Brigading" "You're a paid shiller"
    • In the past VeChain Telegram Moderators wilfully participated in brigading, leading to the ban on the word "VeChain" for 30 days in cryptocurrency
    • It is difficult to differentiate manipulated behaviour and organic behaviour on Reddit, the moderators here do an amazing job getting rid of spam and detecting vote manipulation
    • The Official VeChain Foundation has stepped in to help Reddit moderators prevent VeChain vote manipulation
    • Official Telegram Rules: Brigading & Reddit links: We have a new policy regarding Reddit and 'brigading'. No brigading of any kind will be allowed. If you want to post a Reddit link, do so with the "np." prefix added to its URL, for example "np.reddit.com /CryptoCurrency". No spamming for upvotes, as it hurts both of our communities.
    • This is strictly enforced by Telegram moderators and results in a warning then an insta-ban for repeat offenders
    • https://imgur.com/a/sOva9 is being copy-pasted en masse by detractors as evidence of brigading
    • Image shows Boxminig feeling sorry for WTC PR team and a "np" link to a different thread
    • I wish I got paid to shill VeChain, I made this post to share a fundamentally strong crypto with the community _________________________________________________________________________________________

An interesting perspective supported by CEO Sunny Lu

NTSpike: VeChain Thor Is Positioning to Become THE #1 Enterprise dApp Platform, and Here's Why - A Systems Analyst's Perspective
Disclaimer: My holdings are 80% VEN and remainder in NEO, WTC, TKY, XRB, AMB
submitted by enozym111 to CryptoCurrency [link] [comments]

/r/Bitcoin FAQ - Newcomers please read

Welcome to the /Bitcoin Sticky FAQ

You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.
Some great introductions for new users are My first bitcoin, Bitcoin explained and ELI5 Bitcoin. Also, the following videos are a good starting point for understanding how bitcoin works and a little about its long term potential:
Also have to give mention to Lopp.net, the Princeton crypto series and James D'Angelo's Bitcoin 101 Blackboard series. Some excellent writing on Bitcoin's value proposition and future can be found at the Satoshi Nakamoto Institute. Bitcoin statistics can be found here, here and here. Developer resources can be found here, here and here. Peer-reviewed research papers can be found here. Potential upcoming protocol improvements here. Scaling resources here. The number of times Bitcoin was declared dead by the media can be found here (LOL!), and of course Satoshi Nakamoto's whitepaper that started it all! :)
Key properties of bitcoin

Where can I buy bitcoins?

Bitcoin.org, BuyBitcoinWorldwide.com and Howtobuybitcoin.io are helpful sites for beginners. You can buy or sell any amount of bitcoin and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also, check out the bitcoinity exchange resources for a larger list of options for purchases.
Bank Transfer Credit / Debit card Cash
Gemini Bitstamp LocalBitcoins
Bitstamp Bitit Mycelium LocalTrader
BitFinex Cex.io LibertyX
Cex.io CoinMama WallofCoins
Xapo Spectrocoin BitcoinOTC
Kraken Luno BitQuick
itBit
HitBTC
Bitit
Bisq (decentralized)
Luno
Spectrocoin
Here is a listing of local ATMs. If you would like your paycheck automatically converted to bitcoin use Bitwage.
Note: Bitcoins are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. Preev is a useful site that that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".

Securing your bitcoins

With bitcoin you can "Be your own bank" and personally secure your bitcoins OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoins for you.
Android iOs Desktop
Samouari BreadWallet Electrum
Another interesting use case for physical storage/transfer is the Opendime. Opendime is a small USB stick that allows you to spend Bitcoin by physically passing it along so it's anonymous and tangible like cash.
Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!
2FA requires a second confirmation code to access your account, usually from a text message or app, making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.
Google Auth Authy
Android Android
iOS iOS

Where can I spend bitcoins?

Check out spendabit or bitcoin directory for some good options, some of the more commons ones are listed below.
Store Product
Gyft Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
Steam, HumbleBundle, Games Planet, itch.io, g2g and kinguin For when you need to get your game on
Microsoft Xbox games, phone apps and software
Spendabit, Overstock, The Bitcoin Directory and BazaarBay Retail shopping with millions of results
ShakePay Generate one time use Visa cards in seconds
NewEgg and Dell For all your electronics needs
Bitwa.la, Coinbills, Piixpay, Bitbill.eu, Bylls, Coins.ph, Bitrefill, LivingRoomofSatoshi, Hyphen.to, Coinsfer, More #1, #2 Bill payment
Menufy, Takeaway, Thuisbezorgd NL, Pizza For Coins Takeout delivered to your door!
Expedia, Cheapair, Lot, Destinia, BTCTrip, Abitsky, SkyTours, Fluege the Travel category on Gyft and 9flats For when you need to get away
BitHost VPS service
Cryptostorm, Mullvad, and PIA VPN services
Namecheap, Porkbun For new domain name registration
Stampnik Discounted USPS Priority, Express, First-Class mail postage
Reddit Gold Premium membership which can be gifted to others
Coinmap and AirBitz are helpful to find local businesses accepting bitcoins. A good resource for UK residents is at wheretospendbitcoins.co.uk.
There are also lots of charities which accept bitcoin donations, such as Wikipedia, United Way, ACLU and the EFF. You can find a longer list here.

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;
If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read more here. Still have mining questions? The crew at /BitcoinMining would be happy to help you out.
If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node using this setup guide. Bitseed is an easy option for getting set up. You can view the global node distribution here.

Earning bitcoins

Just like any other form of money, you can also earn bitcoins by being paid to do a job.
Site Description
WorkingForBitcoins, Bitwage, XBTfreelancer, Cryptogrind, Bitlancerr, Coinality, Bitgigs, /Jobs4Bitcoins, Rein Project Freelancing
OpenBazaar, Purse.io, Bitify, /Bitmarket, 21 Market Marketplaces
Streamium.io, XOtika.tv NSFW, /GirlsGoneBitcoin NSFW Video Streaming
Bitasker, BitforTip Tasks
Supload.com, SatoshiBox, JoyStream, File Army File/Image Sharing
CoinAd, A-ads, Coinzilla.io Advertising
You can also earn bitcoins by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins)

Bitcoin Projects

The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.
Project Description
Lightning Network, Amiko Pay, and Strawpay Payment channels for network scaling
Blockstream, Rootstock and Drivechain Sidechains
21, Inc. Open source library for the machine payable web
ShapeShift.io Trade between bitcoins and altcoins easily
Open Transactions, Counterparty, Omni, Open Assets, Symbiont and Chain Financial asset platforms
Hivemind and Augur Prediction markets
Mediachain Decentralized media library
Tierion and Factom Records & Titles on the blockchain
BitMarkets, DropZone, Beaver and Open Bazaar Decentralized markets
Samourai and Dark Wallet - abandoned Privacy-enhancing wallets
JoinMarket CoinJoin implementation (Increase privacy and/or Earn interest on bitcoin holdings)
Coinffeine and Bisq Decentralized bitcoin exchanges
Keybase and Bitrated Identity & Reputation management
Telehash Mesh networking
JoyStream BitTorrent client with paid seeding
MORPHiS Decentralized, encrypted internet
Storj and Sia Decentralized file storage
Streamium Pay in real time for on-demand services
Abra Global P2P money transmitter network
bitSIM PIN secure hardware token between SIM & Phone
Identifi Decentralized address book w/ ratings system
BitGo Multisig bitcoin API
Bitcore Open source Bitcoin javascript library
Insight Open source blockchain API
Leet Kill your friends and take their money ;)

Bitcoin Units

One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:
Unit Symbol Value Info
millibitcoin mBTC 1,000 per bitcoin SI unit for milli i.e. millilitre (mL) or millimetre (mm)
microbitcoin μBTC 1,000,000 per bitcoin SI unit for micro i.e microlitre (μL) or micrometre (μm)
bit bit 1,000,000 per bitcoin Colloquial "slang" term for microbitcoin
satoshi sat 100,000,000 per bitcoin Smallest unit in bitcoin, named after the inventor
For example, assuming an arbitrary exchange rate of $10000 for one Bitcoin, a $10 meal would equal:
For more information check out the Bitcoin units wiki.
Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit. A complete list of bitcoin related subreddits can be found here
Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.
Welcome to the Bitcoin community and the new decentralized economy!
submitted by BinaryResult to Bitcoin [link] [comments]

A short summary of solutions for UTXO scaling

Currently the UTXO set is about 3 or 4 GB stored on disk, and is bigger in memory so usually can't be stored entirely in memory and so relies on caching. At the moment, the UTXO set is bounded only by the blocksize limit - the UTXO set can grow at maximum nearly as fast as the blockchain does (if every transaction creates many outputs from a minimal number of inputs. The UTXO set shrank a bit recently (possibly in part due to incentives introduced for segwit), but in general its been growing around 50% per year (while memory cost effectiveness has been improving at only 15%/year). Without finding a solution to this, the UTXO set can be expected to grow to over 20 GB in 5 years. That's a major problem for running a full node.
Luckily people have been thinking about the problem for a while now and there are a number of ideas that could massively improve the situation. Here's a list of the major ones I know about:

UTXO Hash Set (UHS)

This method seems to be able to reduce the size of the representation of the UTXO set by almost half, at the cost of about 5% additional network traffic. That sounds great, but honestly pales in comparison to using Accumulators (full disclosure, I'm not actually 100% sure UHS is not also an accumulator).

Dynamic Accumulators

Dynamic accumulators are representations of set inclusion (ie accumulators) for which elements can be dynamically added or removed efficiently. Particularly interesting are universal accumulators, which can prove not only inclusion in the set, but also non-membership which can be super useful for things like SPV fraud proofs.

Merkle Accumulators

Merkle accumulators use a merkle tree to represent the UTXO set. Similar to UHS, this can lead to massive space savings at the cost of higher network traffic. Utreexo is one such proposal that can represent the entire UTXO set in a few kilobytes. The tradeoff is that transactions must include merkle proofs of inclusion which would require at least 25% more data being downloaded.

RSA Accumulators

RSA Accumulators are interesting because they can produce inclusion proofs of constant size (not dependent on the number of UTXOs). This is as opposed to Merkle based accumulators that scale logarithmicly with the number of UTXOs. They also have other interesting properties like universality, allowing non-membership proofs, and potential privacy improvements like delinking inputs from their corresponding outputs.

Eliptic Curve Accumulators

Eliptic curve cryptography is really interesting because keys and other cryptographic artifacts are much smaller than equivalents in RSA, since RSA relies on exponentiation while ECC basically relies on multiplication. I haven't found quite as much information on these as RSA accumulators, but it sounds like an area of active research.

Others

More Papers

https://eprint.iacr.org/2005/123.pdf

Other thoughts

What's really interesting to me is the idea of stateless full nodes, where a full node doesn't really need to store any state at all and thus running one would require much lower computer resources. Theoretically, no node would have to store the entire data set (blockchain or UTXO set) and instead nodes could share data in a truly distributed way where each node could choose to store say 1/1000th of the total data and share that data on demand to nodes that needed it. As long as each piece of data can be verified from a tiny aggregation of it, no trustlessness would be sacrificed.

More Discussion

See more discussion about this on BitcoinDiscussion
submitted by fresheneesz to Bitcoin [link] [comments]

A short summary of solutions for UTXO scaling

I've found out about a few techniques to allow effective scaling of the UTXO set. Currently the UTXO set is about 3 or 4 GB stored on disk, and is bigger in memory so usually can't be stored entirely in memory and so relies on caching. At the moment, the UTXO set is bounded only by the blocksize limit - the UTXO set can grow at maximum nearly as fast as the blockchain does (if every transaction creates many outputs from a minimal number of inputs. The UTXO set shrank a bit recently (possibly in part due to incentives introduced for segwit), but in general its been growing around 50% per year. Without finding a solution to this, the UTXO set can be expected to grow to over 20 GB in 5 years. That's a major problem for running a full node.
Luckily people have been thinking about the problem for a while now and there are a number of ideas that could massively improve the situation. Here's a list of the major ones I know about:

UTXO Hash Set (UHS)

This method seems to be able to reduce the size of the representation of the UTXO set by almost half, at the cost of about 5% additional network traffic. That sounds great, but honestly pales in comparison to using Accumulators (full disclosure, I'm not actually 100% sure UHS is not also an accumulator).

Dynamic Accumulators

Dynamic accumulators are representations of set inclusion (ie accumulators) for which elements can be dynamically added or removed efficiently. Particularly interesting are universal accumulators, which can prove not only inclusion in the set, but also non-membership which can be super useful for things like SPV fraud proofs.

Merkle Accumulators

Merkle accumulators use a merkle tree to represent the UTXO set. Similar to UHS, this can lead to massive space savings at the cost of higher network traffic. Utreexo is one such proposal that can represent the entire UTXO set in a few kilobytes. The tradeoff is that transactions must include merkle proofs of inclusion which would require at least 25% more data being downloaded.

RSA Accumulators

RSA Accumulators are interesting because they can produce inclusion proofs of constant size (not dependent on the number of UTXOs). This is as opposed to Merkle based accumulators that scale logarithmicly with the number of UTXOs. They also have other interesting properties like universality, allowing non-membership proofs, and potential privacy improvements like delinking inputs from their corresponding outputs.
According to [3], an RSA accumulator can verify inclusion in about 1-2 milliseconds and can add a value to an accumulator in about 1 second.

Eliptic Curve Accumulators

Eliptic curve cryptography is really interesting because keys and other cryptographic artifacts are much smaller than equivalents in RSA, since RSA relies on exponentiation while ECC basically relies on multiplication. I haven't found quite as much information on these as RSA accumulators, but it sounds like an area of active research.
According to [3], an ECC accumulator can verify inclusion in about 2 microseconds and add a value in about 2 milliseconds. An ECC accumulator can be about 1/5th the size of an RSA accumulator.

Symmetric Accumulators

The above are all asymmetric accumulators, and require a proof (aka a "witness") in order to know if the item is contained in the accumulator. Symmetric accumulators do not require a witness proof. Secure Bloom filters can be considered symmetric accumulators[3]. A bloom filter can verify inclusion in about 1 millisecond and add a value in about 50 microseconds. Bloom filters are, however, are about 200 times larger than RSA accumulators and more than 1000 times larger than ECC accumulators.

Other thoughts

What's really interesting to me is the idea of stateless full nodes, where a full node doesn't really need to store any state at all and thus running one would require much lower computer resources. Theoretically, no node would have to store the entire data set (blockchain or UTXO set) and instead nodes could share data in a truly distributed way where each node could choose to store say 1/1000th of the total data and share that data on demand to nodes that needed it. As long as each piece of data can be verified from a tiny aggregation of it, no trustlessness would be sacrificed.

More references

  1. https://eprint.iacr.org/2005/123.pdf
Performance evaluation
  1. https://cs.brown.edu/research/pubs/theses/ugrad/2013/tremel.pdf
  2. http://sancy.univ-bpclermont.f~lafourcade/PAPERS/PDF/KLL14.pdf - Performances of Cryptographic Accumulators (Kumar, Laufourcade, Lauradoux)
  3. https://eprint.iacr.org/2015/087.pdf
submitted by fresheneesz to BitcoinDiscussion [link] [comments]

Cosmos — an early in-depth analysis at the ecosystem of connected blockchains — Part One

Cosmos — an early in-depth analysis at the ecosystem of connected blockchains — Part One
This is part one of three articles where i will discuss what i have learnt whilst looking into Cosmos. I will provide links throughout the article to provide reference to sections as well as a list of sources at the bottom of the article for you to look into specific areas in more detail if required. Hopefully it will be useful for those interested in learning more about the project.
Cosmos is still very early in development process with components such as IBC which connects two blockchains together currently in research / specification stage, as a result can change by the time its released.

What is Cosmos?

Cosmos is a network and a framework for interoperability between blockchains. The zones are powered by Tendermint Core, which provides a high-performance, consistent, secure PBFT-like consensus engine, where strict fork-accountabilityguarantees hold over the behaviour of malicious actors. Cosmos is not a product but an ecosystem built on a set of modular, adaptable and interchangeable tools.
In Tendermint, consensus nodes go through a multi-round voting proposal process first before coming to consensus on the contents of a block. When 2/3 of those nodes decide on a block, then they run it through the state transition logic providing instant finality. In current proof of work consensus for Ethereum, the consensus process is inverted, where miners pick the transactions to include in a block, run state updates, then do “work” to try and mine the block.
Tendermint BFT can handle up to thousands of transactions per second (depending on the number of validators). However, this only takes into account the consensus part, the application layer is the limiting factor though. Ethermint (described below) has achieved up to 200 tps to give you an idea of the speed available per blockchain which is significantly more than current versions of Ethereum and Bitcoin etc.
The Tendermint consensus is used in a wide variety of projects, some of the most notable include Binance Chain, Hyperledger Burrow. It’s important to note though that just using Tendermint consensus doesn’t mean they can connect to other chains with the cosmos ecosystem, they would need to fork their code to implement IBC as a native protocol to allow interoperability through IBC.
see https://raw.githubusercontent.com/devcorn/hackatom/mastetminfo.pdf for high res

The Tendermint consensus algorithm follows a traditional approach which relies on all validators to communicate with one another to reach consensus. Because of the communication overhead, it does not scale to 1000s of validators like Bitcoin or Ethereum, which can have an unlimited number of validators. Tendermint works when there are 100s of validators. (Cosmos Hub currently has a maximum of 100 validators and the maximum tested so far with Tendermint is 180 validators)
Therefore, one of the downsides of a blockchain built using Tendermint is that, unlike Bitcoin or Ethereum, it requires the validators to be known ahead of time and doesn’t allow for miners to come and go as they please.Besides this, it also requires the system to maintain some notion of time, which is known to be a complex problem in theory. Although in practice, Tendermint has proven this can be done reasonably well if you use the timestamp aggregates of each node.
In this regard, one could argue that Tendermint consensus protocol is “less decentralized” than Bitcoin because there are fewer validators, and they must be known ahead of time.
Tendermint’s protocol guarantees safety and liveness, assuming more than 2/3 of the validators’ voting power is not Byzantine (i.e., malicious). In other words, if less than 1/3 of the network voting power is Byzantine, the protocol can guarantee safety and liveness (i.e., validators will never commit conflicting blocks at the same height and the blockchain continues to make progress).https://www.preethikasireddy.com/posts/how-does-cosmos-work-part1
To see the process of how Tendermint works please see this diagram as well as more info here

Sovereignty

Cosmos goal is to provide sovereignty through governance to developers by making it easy to build blockchains via the Cosmos SDK and provide interoperability between them, using Tendermint consensus. This is their main differentiator compared to competition like Polkadot and Ethereum 2.0. Ethereum 2.0 and Polkadot are taking a different approach by only using shared security, where there is a root chain which controls the security / prevents double spending for all connected blockchains.
In Hub governance all stakers vote, the validators vote is superseded if the delegator votes directly
Governance is where all stakers vote on proposals to determine what changes are implemented in the future for their own blockchain, stakers can either choose to delegate their vote to the validator or they can instead vote directly. Without sovereignty all DAPPs share the same underlying environment. If an application requires a new feature in the EVM it has to rely entirely on the governance of the Ethereum Platform to accept it for example. However, there are also tradeoffs to having sovereignty as each zone is going to need a way to incentivise others to validate / create blocks on the Zone by running Full Nodes. Whilst it may be easy to create a blockchain using the cosmos SDK and to mint a token, there are the legal costs / regulation associated with creating your own token. How are you going to distribute the tokens? How are you going to list them on exchanges? How are you going to incentivise others to use the token without being classed as a security? All of which have led to a significant reduction in the number of ICOs being done. With every zone needing their own validator set, there’s going to be a huge number of validators required each trying to persuade them to validate their zone with only a finite number of validators available.
Each Zone / App is essentially a mini DAO and not all are going to be comfortable about having their project progress been taken out of their hands and instead relying on the community to best decide on the future (unless they control 2/3 of the tokens). The Cosmos Hub has proved this can be successful, but others may be risk averse to having their application be a mini DAO. Should someone / competitor acquire 1/3 of the tokens of a zone then they could potentially prevent any further progress being made by rejecting all governance votes (this would be very costly to do on the Cosmos Hub due to its high amount staked, but for all the other less secure zones this potentially may be an issue).
Security for some zones will likely be a lot lower with every developer needing to validate their own blockchain and tokenise them with POS with no easy way to validate the setup of a validator to ensure its secure. Whilst the Cosmos hub is very secure with its current value staked, how secure zone’s will be with significantly less staked remains to be seen. Whilst providing soverignty was Cosmos’s main goal from the start, they are also looking at being able to provide shared security by having validators of a connected Hub also validate /create new blocks on the connected zone’s blockchain for them as well. They are still going to need some way to incentivise the validators to this. Another option is if the developers didn’t want to create a token, nor want sovereignty etc, then they could just build a DAPP on the EVM on a zone such as Ethermint.
As can be seen their are potential advantages and disadvantages to each method, but rather than forcing shared security like Ethereum and Polkadot, Cosmos is giving the developer the choice so will be interesting to see which they prefer to go for.

Layers of a blockchain

From an architecture standpoint, each blockchain can be divided into three conceptual layers:
  • Application: Responsible for updating the state given a set of transactions, i.e. processing transactions.
  • Networking: Responsible for the propagation of transactions and consensus-related messages.
  • Consensus: Enables nodes to agree on the current state of the system.
The state machine is the same as the application layer. It defines the state of the application and the state-transition functions. The other layers are responsible for replicating the state machine on all the nodes that connect to the network.
The Cosmos SDK is a generalized framework that simplifies the process of building secure blockchain applications on top of Tendermint BFT. The goal of the Cosmos SDK is to create an ecosystem of modules that allows developers to easily spin up application-specific blockchains without having to code each bit of functionality of their application from scratch. Anyone can create a module for the Cosmos SDK and using ready built modules in your blockchain is as simple as importing them into your application.
The Tendermint BFT engine is connected to the application by a socket protocol called the Application Blockchain Interface (ABCI). This protocol can be wrapped in any programming language, making it possible for developers to choose a language that fits their needs.

https://preview.redd.it/5vpheheqmba31.png?width=770&format=png&auto=webp&s=ec3c58fb7fafe10a512dbb131ecef6e841e6721c

Hub and Spoke Topology

Cosmos follows a hub and spoke topology as its not feasible to connect every zone together. If you were to connect every blockchain together the number of connections in the network would grow quadratically with the number of zones. So, if there are 100 zones in the network then that would equal 4950 connections.
Zones are regular heterogenous blockchains and Hubs are blockchains specifically designed to connect Zones together. When a Zone creates an IBC connection with a Hub, it can automatically access (i.e. send to and receive from) every other Zone that is connected to it. As a result, each Zone only needs to establish a limited number of connections with a restricted set of Hubs. Hubs also prevent double spending among Zones. This means that when a Zone receives a token from a Hub, it only needs to trust the origin Zone of this token and each of the Hubs in its path. Hubs do not verify or execute transactions committed on other zones, so it is the responsibility of users to send tokens to zones that they trust.
There will be many Hubs within Cosmos network the first Hub to launch was the Cosmos Hub whose native staking token is called ATOM. ATOM tokens are specific to just the Cosmos Hub which is one hub of many, each with their own token. Transaction fees for the Cosmos Hub will be payable in multiple tokens so not just ATOMs whereas other Hubs such as IRIS has made it so that all transaction fees are paid in IRIS for transactions on its hub.
As mentioned, the Cosmos Hub is one of many hubs in the network and currently has a staking ratio of around 70% with its token ATOM having a market cap of just over $800 million. IRISnet was the second Hub to launch which currently has around 28% bonded with its token IRIS which has a market cap of just under $17 million. The Third Hub about to be launched later this month has its token SENT which has a market cap of around $3.4 million. As you can see the security of these 3 hubs differ wildly and as more and more hubs and then zones are brought online there is going to need to be a lot of tokens / incentivisation for validators.
Ethermint
Standard Cosmos zones / hubs don’t have smart contract functionality and so to enable this, as the Application layer is abstracted from the consensus layer via ABCI API described earlier, it allows Cosmos to port the code over from other blockchains such as Ethereum and use it with the Tendermint Consensus to provide access to the Ethereum Virtual Machine. This is what is called Ethermint.
This allows developers to connect their zones to specialised zones such as Ethermint to build and run smart contracts based on Solidity, whilst benefiting from the faster performance of the tendermint Conensus over the existing POW implementation currently. Whereas a normal Go Ethereum process runs at ~12.5 transactions per second (TPS), Ethermint caps out at 200 TPS. This is a comparison against existing Ethereum speeds, whilst obviously Ethereum are working on their own scaling solutions with Ethereum 2.0 which will likely be ready around the same time. Existing tools / dapps used on ethereum should easily be able to be ported over to Ethermint by the developer if required.
In addition to vertical scaling (with the increase in tps by using Tendermint consensus), it can also have multiple parallel chains running the same application and operated by a common validator set. So if 1 Ethermint zone caps out at 200 TPS then 4 Ethermint zones running in parallel would theoretically cap out at 800 TPS for example.

https://preview.redd.it/e2pghr9smba31.png?width=554&format=png&auto=webp&s=a6e472a6e4a0f3845b03c36caef8b42d77125e46
There is a huge number of developers / apps currently built on Ethereum, should a developer choose to migrate their DAPP over to Ethermint they would lose native compatibility with those on Ethereum (except through Peg Zone), but would gain compatibility with those running on Ethermint and others in the cosmos ecosystem.
You can find out more about Ethermint here and here

IBC

IBC stands for inter-blockchain communication protocol and is an end-to-end, connection-oriented, stateful protocol for reliable, ordered, authenticated communication between modules on separate distributed ledgers. Ledgers hosting IBC must provide a certain set of functions for consensus transcript verification and cryptographic commitment proof generation, and IBC packet relayers (off-chain processes) are expected to have access to network protocols and physical datalinks as required to read the state of one ledger and submit data to another.
In the IBC architecture, modules are not directly sending messages to each other over networking infrastructure, but rather creating messages to be sent which are then physically relayed via “Relayers”. “Relayers” run off-chain and continuously scan the state of each ledger via a light client connected to each of the 2 chains and can also execute transactions on another ledger when outgoing datagrams have been committed. For correct operation and progress in a connection between two ledgers, IBC requires only that at least one correct and live relayer process exists which can relay between the ledgers. Relays will need to be incentivised to perform this task (the method to which hasn’t been established as of this writing)
The relay process must have access to accounts on both chains with sufficient balance to pay for transaction fees. Relayers may employ application-level methods to recoup these fees, such by including a small payment to themselves in the packet data. More information on Relayers can be found here

https://preview.redd.it/qr4k6cxtmba31.png?width=1100&format=png&auto=webp&s=d79871767ced4bcb0b2632cc137c118f70c3863a
A high-level overview of the process is that Zone 1 commits an outbound message on its blockchan about sending say 1 x Token A to Hub1 and puts 1 x Token A in escrow. Consensus is reached in Zone 1, and then it’s passed to the IBC module to create a packet which contains the reference to the committed block, source and destination channel/ connection and timeout details and is added to Zone 1’s outbound queue as proof.
All relayers (who run off-chain) are continuously monitoring the state of Zone 1 via the Zone 1 light client. A Relayer such as Relayer 1 is chosen and submits a proof to Hub1 that Zone 1.
Hub 1 then sends a receipt as proof that it has received the message from Zone 1, relayer1 sends it to Zone 1. Zone 1 then removes it from its outbound queue and sends proof via another receipt to Hub1. Hub1 verifies the proof and mints the token.

https://preview.redd.it/qn7895rumba31.png?width=770&format=png&auto=webp&s=96d9d808b2284f87d45fa0bd7b8bff297c86c2da
This video below explains the process in more detail as well as covers some of the other points i raise later in this article so worth a watch (time stamped from 22:24 to 32:25) and also here from 38:53 to 42:50
https://youtu.be/5h8DXul4lH0?t=1344
Whilst there is an option for UDP style transfer where a zone will send a message to a Hub and it doesn’t care whether it gets there or in any order etc, Token transfers are going to require the TCP style connections in IBC where there is a send, receipt and then another receipt as explained above. Each Send, receipt followed by another receipt is going to take at least 2 blocks and so using Cosmos Hub block times as an example with 6.88 second block times a transfer between one zone and hub could take a minimum of 41.28 seconds. You also then have to factor in the amount of other transactions going through those at that time and relevant gas price to see whether it is able to use 2 consecutive blocks or whether it may take more. This is also explained in this video “ILP Summit 2019 | Cosmos and Interledger | Sunny Aggarwal” (time stamped) from to 12:50 to 15:45

In Part Two we will look at potential issues with multi hop routing, token transfers across multiple routes and Peg Zones, whilst also looking at other interoperability solutions that would resolve some of these issues and compliment the cosmos ecosystem. Part Two can be found here
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