Cryptocurrency is not infallible… yet.
With IBM’s announcement of Q System One, the world’s first commercially available quantum computing system, will the processing power sufficient to break blockchain become readily available?
Category: bitcoin – Page 46
IBM CEO Ginni Rometty Delivers Opening Keynote at CES 2019 on What’s Next in Artificial Intelligence, Blockchain and Quantum Computing
ARMONK, N.Y., Jan. 4, 2019 /PRNewswire/ — IBM (NYSE: IBM) Chairman, President and CEO Ginni Rometty will deliver the opening keynote at CES 2019 on Tuesday, Jan. 8. CES is the largest and one of the most influential technology events in the world.
Rometty will show how technologies like artificial intelligence, blockchain and cloud are reshaping the world of business, and, in turn, our daily lives. She also will talk about what’s coming next in these pioneering technologies – and how new data will revolutionize how we live, work and play. Rometty shares perspective on the future of technology in the Consumer Technology Association magazine It Is Innovation (i3) CES edition: https://www.nxtbook.com/nxtbooks/manifest/i3_20190102
Rometty will be joined onstage by Ed Bastian, CEO of Delta Air Lines; Charles Redfield, executive vice president of Food for Walmart; and Vijay Swarup, vice president of R&D for ExxonMobil.
Virtual Currencies Are As Old As Favors
I owe Jack Shaw a favor. It’s one of those, “This one time in Cambodia…” type of favors. We won’t speak of it beyond perhaps a nod and wink. It’s not written down anywhere; the details of such are so vague as to be almost non existent, while encompassing the known universe. It expires upon death, of the sun; and can be redeemed whenever and by another person who need only walk up to me and say, “Jack Shaw sent me. He says to tell you ________”. And tada, that favor has been redeemed for value.
Jack would call this favor a “marker.” It’s more valuable than your house, the Empire State Building & 100k Bitcoins combined. It can even be redeemed for something even more precious, my time or an opportunity or access to my network. You know, those things that money can’t buy. Well, you can lease my time from time to time.
Favors, markers and promises are humanities’ first virtual currencies.
They’ve gone digital recently, as Jack might redeem his marker via a WhatsApp or WeChat text message.
Favors and promises aren’t financial obligations per-say. They’re moral debts that can be redeemed for things of intrinsic, monetary, social and/or actual value. Now, here is where things get a little weird. The thing about “money” is that it doesn’t have any value. It’s actually a reflection of a moral debt. Hence why the US dollar is backed by the “Full Faith and Credit of the US Government” and not say, gold or wheat. You believe…that people will feel obligated to pay taxes and in turn the government will collect these social obligations (aka favors) for the good and benefit of The People. This moral obligation is part of that “Debt to Society” you’ve heard so much about, are obligated to pay, but don’t recall actually signing up for.
Long ago, these virtual currencies of favors, promises, social obligations and credits were turned into what we now regard as money. Not because paper money or coins had or have any intrinsic value, but because for trade beyond one’s family or clan, it’s easier to convey/store and document the value of Sam owing you two chickens, using cash as that documentation (or store of value). As you extended to him a two chicken line of credit.
“Credit” is just another favor or marker with terms.
Coins and “Banknotes” (because people wrote down how much credit they gave you) were just the earliest form of noting and coming to consensus on how to document these virtual currencies of favors, markers, promises and credit.
Overtime, what favor or credit money represents has been lost. We’ve been conditioned to simply believing (Full Faith and Credit) that paper money has intrinsic value, when it simply doesn’t.
Paper money isn’t backed backed by anything other than your faith.
Hence why inflation is such a troublesome concept for most. It challenges the fundamental principles of your faith — every time the government prints more paper money. It extends to itself (and then to you, via banks) made up and virtual favors by the billions. They are favors and markers with no value behind them; lines of credit with no chickens attached. So when these virtual chickens come home to roost, as actual value, guess what? There aren’t any chickens, just a whole lotta hungry believers.
Everybody believes in this system of virtual currencies of credit, favor and marker collection, except the banks and the corporations who effectively pay zero in taxes, while simultaneously collecting trillions in credits from people and then turning those virtual dollars into “real wealth.” Think real estate.
Fun fact/Tangent: Why is real estate called “real?” Hint: It has something to do with the fact that money has no value (isn’t real) but shelter/housing does. We’ll talk about how banks and corporations got out of their social contract at your expense later.
Bitcoin Miners Dying, Another Sign Of The Crypto-Currency Crash
It is an eye opening video. In the financial climate we are now I am not shocked that these Miners are losing based on costs.
I wrote an article on the Wave Chronicle regarding the Crypto-Currency Crash and some of the changes that could be made to make this particular market effective for those who actually want to use Crypto-Currency as a vehicle for purchasing.
http://wavechronicle.com/wave/?p=70621
I came across a video which.
BTC plunge: Why I don’t worry
Join me for a quick review of the spikes & dips in the Bitcoin exchange rate. This time, it’s all about one very simple chart. [continue below graphic]…
The chart below shows a history of BTC price spikes, dips and recovery. Click to enlarge, then start at the top—and move down.
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- Consider the percent-pullback after each spike (red label)
- Think about the stellar rebound after each drop (green label)
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The table at right illustrates why I do not get too worked up over the plunge in the BTC exchange rate. There are no fundamental flaws in Bitcoin math or mechanisms, the market need for benefits conveyed by Bitcoin is terrific, and popular arguments against Bitcoin are severely flawed. Skeptics and Critics typically say this:
“Even if blockchain currencies are beneficial and inevitable, Bitcoin can be displaced by another, better cryptocurrency.”
—Or—
“A viable crypto may emerge—but it will be one that is backed by a tangible asset or issued/sanctioned by government.”
These arguments are false. They are made by individuals who don’t yet fully appreciate a distributed, consensus mechanism and, especially, its relationship with trust, value, government and free markets.
What Bitcoin currently lacks is education, familiarity, standards, simple commercial tools (built upon clear analogies), definitive best practices, a widespread understanding of multisig & security, and limited recourse for certain commercial & retail transactions. But Bitcoin is still an infant, just like the early TV or the early telephone. All of these are under development—without a hint of significant obstacles. Even the messy process of democracy among the various stakeholders is heading toward harmony (miners, developers, vendors, exchanges and consumers).
Of course, I am bullish on Bitcoin, and this may color my analysis. But, I try hard to keep an open mind. There have been moments in its history where I have questioned the market need or the potential for a setback in politics, legislation, or the mechanism itself. Those doubts are in the past. Bitcoin has demonstrated the elegance and value of the blockchain—and the ability to evolve beyond the blockchain with SegWit and Lightning Network. It has achieved a fluid, robust and growing two-sided market.
No one holding assets likes to see a big price pullback. It’s natural to look at the market as if we each got in at the peak—and then tally the “losses”. But I, for one, am not glancing toward the exit. I see the future and I sleep well at night. I am comfortable participating in the Bitcoin era.
Philip Raymond co-chairs CRYPSA, hosts the Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He advises The Disruption Experience in Singapore, sits on the New Money Systems board of Lifeboat Foundation and is a top writer at Quora. Book a presentation or consulting engagement.
Timechain : a Decade of Misunderstanding Blockchain
https://paper.li/e-1437691924#/
Abstract: The term “blockchain” has caused much confusion and damage due to its failure to accurately capture the core characteristics of decentralized byzantine fault tolerant systems. In this article, a restoration of an older term is proposed as replacement.
Best Bitcoin wallet: Hardware or hosted?
The question asked in the title has been edited from what was asked today at Quora, the Q&A forum at which I participate as expert columnist. The original question was a bit more ambiguous: “Which is better? — a digital bitcoin wallet or a physical one?” I have included the original question, to better distinguish products and terms.
All bitcoin wallets are all digital—even a paper wallet, whether a character string or a QR code. Conversely, an exchange may use “physical” wallets to host client assets, individual application wallets, or they may simply keep records of client assets that are stored, collectively, in their own master wallet. To complicate matters, Bitcoin is never really “stored” by you or an exchange service. It is stored on a public blockchain, where assets and transaction history can be traced through time by anyone. Therefore, all forms of user access are “digital”. What the reader really wants to know is “Which form of access control is better? — custodial or personal?”
Type 1: Custodial Wallets are Managed by a Trusted Party They hold your assets. You view a statement balance—just like a bank account.
2. Deciding Factor
There are few individuals for whom direct and private ownership makes sense. In fact, until this month, it did not make sense for me. I am only now configuring my first hardware wallet. I still trust Coinbase to host and control most of my assets. The reasons boil down to security, forgetfulness, errors, legacy ownership and instant access. The ONLY factor that is arguably better with personal custody & control is privacy.
Due to a lack of education, standards, and definitive best practices, this option makes sense for fewer than 5% of Bitcoin owners. Take me, for example… I have been involved with Bitcoin since the first years of its existence, and have been a Bitcoin educator since shortly after Satoshi’s original bombshell. Today, I am a keynote presenter at blockchain and cryptocurrency conferences. I teach blockchain seminars, design courseware for colleges, and am co-chair of the Cryptocurrency Standards Association and partner in Blockchain Research Council.
Yet, I am only now configuring my first hardware wallet. I still trust Coinbase to host and control most of my cryptocurrency.
How do I know if I am a candidate for full / private control?
Using an exchange hosted wallet service is best for most individuals. But, for some, it makes sense to maintain private, local control of blockchain assets. If all criteria in the bulleted list below applies to you, then local and private ownership might make sense. But if you fail even one criteria, then WAIT! Wait until multisig becomes uniform and ubiquitous — and wait until a larger fraction of society is comfortable with the concept and practice of managing private keys. These are gradually becoming new norms. But, it will take a few more years for the world to become comfortable with an unfamiliar concept: personal control of a decentralized asset. You are a candidate for using a personal wallet if you plan to control and secure your own private keys, and if you meet all conditions listed below. The technical criteria will not be requisite in the future—but they are necessary today, because the market currently lacks simple, standardized, widespread tools and uniform practices for safely securing, accessing and passing on these credentials to your heirs. Do all of these criteria apply to you?
The reader uses the term “digital wallet” to mean a hosted wallet in which a trusted 3rd party holds the private keys, or aggregates the assets of many customers and tracks their individual ownership in their own accounting system, like a traditional bank or broker. In this case, the 3rd party is trusted to maintain security, privacy, and constant, robust user access.
It is possible that the reader may have used the term “digital wallet” to additionally refer to PC and smartphone applications, such as Bitcoin Core, Armory or Electrum. But, these are really personal and private wallets — because they are created and configured by the owner, and only the owner has the private keys. And so, we classify device wallet applications as “personal/private” along with hardware or paper wallets. Type 2: Personal Wallets are Private —but with privacy comes risk!
Wallets are personal if the private keys are generated and stored by the user, either on paper, in their PC or smart phone, on a thumbdrive, in a hardware wallet, or even uploaded to cloud storage. As long as the asset owner holds the keys and securely encrypted any uploaded file that contains the keys, the assets are accessible only with his consent.
So, which wallet class is better for securing cryptocurrency access credentials? Custodial or Personal? Which of these models best fits your needs?- A custodial wallet is like a bank a statement. Your assets are maintained by an exchange, rather than tucked into your mattress. The wallet and keys are not under your control, but the process that governs backup and security is rigorous & standardized. Availability to your heirs is governed by documents and laws.
- A personal wallet is completely controlled by you. The private keys must be stored where you will always find them (in your head, a lock box or an encrypted file that is distributed to family in a way that they will always be able to unlock it!). Ensuring future availability, swift transactions or passing wealth after death requires careful attention to tools, process and a secret.
2. Deciding Factor
There are few individuals for whom direct and private ownership makes sense. In fact, until this month, it did not make sense for me. I am only now configuring my first hardware wallet. I still trust Coinbase to host and control most of my assets. The reasons boil down to security, forgetfulness, errors, legacy ownership and instant access. The ONLY factor that is arguably better with personal custody & control is privacy.
Due to a lack of education, standards, and definitive best practices, this option makes sense for fewer than 5% of Bitcoin owners. Take me, for example… I have been involved with Bitcoin since the first years of its existence, and have been a Bitcoin educator since shortly after Satoshi’s original bombshell. Today, I am a keynote presenter at blockchain and cryptocurrency conferences. I teach blockchain seminars, design courseware for colleges, and am co-chair of the Cryptocurrency Standards Association and partner in Blockchain Research Council.
Yet, I am only now configuring my first hardware wallet. I still trust Coinbase to host and control most of my cryptocurrency.
How do I know if I am a candidate for full / private control?
Using an exchange hosted wallet service is best for most individuals. But, for some, it makes sense to maintain private, local control of blockchain assets. If all criteria in the bulleted list below applies to you, then local and private ownership might make sense. But if you fail even one criteria, then WAIT! Wait until multisig becomes uniform and ubiquitous — and wait until a larger fraction of society is comfortable with the concept and practice of managing private keys. These are gradually becoming new norms. But, it will take a few more years for the world to become comfortable with an unfamiliar concept: personal control of a decentralized asset. You are a candidate for using a personal wallet if you plan to control and secure your own private keys, and if you meet all conditions listed below. The technical criteria will not be requisite in the future—but they are necessary today, because the market currently lacks simple, standardized, widespread tools and uniform practices for safely securing, accessing and passing on these credentials to your heirs. Do all of these criteria apply to you?
- You have a comprehensive understanding of cryptography, including the principals of RSA public-key crypto.
- You have practiced multisig decryption for at least a year. For now, you will need to roll-your-own multisig, to ensure that your heirs or executor can access your wealth in the event of death, forgetfulness or incapacitation.
- You have experience and a clear, documented and standardized plan for separately encrypting and distributing your private keys.
- You understand how to implement a hard fork and have the time to do it after any hard fork split.
- You have an exceptional need for privacy or anonymity, and you feel that a custodian is more likely to “sing” in the event of an audit or court order.
- You have a rehearsal plan for testing your multisig recovery and a willing group of trusted friends (most of them younger than you) who can combine their keys to access your wealth.
- After ensuring that encrypted wallet works, is completely secure and is accessible to your heirs, you have replicated it in a sufficient number of places, that you are certain that your heirs will find it after you die, even if it is 90 years in the future.It must not only survive your lifetime, but the knowledge of where to look and *IF* to look, must be certain, even if your home burns down, your cloud accounts have been deleted and/or Google, Amazon, Microsoft & Apple are no longer in business.
Philip Raymond co-chairs CRYPSA, hosts the Bitcoin Event and is keynote speaker at Cryptocurrency Conferences. He advises The Disruption Experience in Singapore, sits on the New Money Systems board of Lifeboat Foundation and is a top writer at Quora. Book a presentation or consulting engagement.