Toggle light / dark theme

At the heart of Bitcoin or any Blockchain ledger is a distributed consensus mechanism. It’s a lot like voting. A large and diverse deliberative community validates each, individual user transaction, ownership stake or vote.

But a distributed consensus mechanism is only effective and faithful if the community is impartial. To be impartial, voters must be fairly separated. That is, there must be no collusion enabled by concentration or hidden collaboration. They must be separated from the buyer and seller; they must be separated from the big stakeholders; and they must be separated from each other. Without believable and measurable separation, all sorts of problems ensue. One problem that has made news in the Bitcoin word is the geographical concentration of miners and mining pools.

A distributed or decentralized transaction validation is typically achieved based on Proof-of-Work (POW) or Proof-of-Stake (POS). [explain]. But in practice, these methodologies exhibit subtle problems…

The problem is that Proof-of-Work can waste an enormous amount of energy and both techniques result in a concentration of power (either by geography or by special interest) — rather than a fair, distributed consensus.

In a quasi-formal paper, C.V. Alkan describes a fresh approach to Blockchain consensus. that he calls Distributed Objective Consensus. As you try to absorb his mechanism, you encounter concepts of Sybil attacks, minting inequality, the “nothing-at-stake” problem, punishment schemes and heartbeat transactions. Could Alkan’s distributed consensus mechanism be too complex for the public to understand or use?…

While I have a concern that time stamps and parent-child schemes may degrade user anonymity, the complexity doesn’t concern me. Alkan’s paper is a technical proposal for magic under the covers. Properly implemented, a buyer and seller (and even a miner) needn’t fully understand the science. The user interface to their wallet or financial statement would certainly be shielded from the underlying mechanics.

Put another way: You would not expect a user to understand the mechanism any more than an airline passenger understands the combustion process inside a jet engine. They only want to know:

• Does it work? • Is it safe? • Is it cost effective? • Will I get there on time?

So will Alkan’s Decentralized Objective Consensus solve the resource and concentration problems that creep into POW and POS? Perhaps. At first glance, his technical presentation appears promising. I will return to explore the impact on privacy and anonymity, which is my personal hot button. It is a critical component for long term success of any coin transaction system built on distributed consensus. That is, forensic access and analysis of a wallet or transaction audit trail must be impossible without the consent and participation of at least one party to a transaction.


Philip Raymond co-chairs CRYPSA and The Bitcoin Event. He is a Lifeboat board member, editor
at AWildDuck and will deliver the keynote address at Digital Currency Summit in Johannesburg.

Early probes are one thing, but can we build a continuing presence among the stars, human or robotic? An evolutionary treatment of starflight sees it growing from a steadily expanding presence right here in our Solar System, the kind of infrastructure Alex Tolley examines in the essay below. How we get to a system-wide infrastructure is the challenge, one analyzed by a paper that sees artificial intelligence and 3D printing as key drivers leading to a rapidly expanding space economy. The subject is a natural for Tolley, who is co-author (with Brian McConnell) of A Design for a Reusable Water-Based Spacecraft Known as the Spacecoach (Springer, 2016). An ingenious solution to cheap transportation among the planets, the Spacecoach could readily be part of the equation as we bring assets available off-planet into our economy and deploy them for even deeper explorations. Alex is a lecturer in biology at the University of California, and has been a Centauri Dreams regular for as long as I can remember, one whose insights are often a touchstone for my own thinking.

By Alex Tolley

alexgetty_2x

Read more

Posthumanists and perhaps especially transhumanists tend to downplay the value conflicts that are likely to emerge in the wake of a rapidly changing technoscientific landscape. What follows are six questions and scenarios that are designed to focus thinking by drawing together several tendencies that are not normally related to each other but which nevertheless provide the basis for future value conflicts.

  1. Will ecological thinking eventuate in an instrumentalization of life? Generally speaking, biology – especially when a nervous system is involved — is more energy efficient when it comes to storing, accessing and processing information than even the best silicon-based computers. While we still don’t quite know why this is the case, we are nevertheless acquiring greater powers of ‘informing’ biological processes through strategic interventions, ranging from correcting ‘genetic errors’ to growing purpose-made organs, including neurons, from stem-cells. In that case, might we not ‘grow’ some organs to function in largely the same capacity as silicon-based computers – especially if it helps to reduce the overall burden that human activity places on the planet? (E.g. the brains in the vats in the film The Minority Report which engage in the precognition of crime.) In other words, this new ‘instrumentalization of life’ may be the most environmentally friendly way to prolong our own survival. But is this a good enough reason? Would these specially created organic thought-beings require legal protection or even rights? The environmental movement has been, generally speaking, against the multiplication of artificial life forms (e.g. the controversies surrounding genetically modified organisms), but in this scenario these life forms would potentially provide a means to achieve ecologically friendly goals.

  1. Will concerns for social justice force us to enhance animals? We are becoming more capable of recognizing and decoding animal thoughts and feelings, a fact which has helped to bolster those concerned with animal welfare, not to mention ‘animal rights’. At the same time, we are also developing prosthetic devices (of the sort already worn by Steven Hawking) which can enhance the powers of disabled humans so their thoughts and feelings are can be communicated to a wider audience and hence enable them to participate in society more effectively. Might we not wish to apply similar prosthetics to animals – and perhaps even ourselves — in order to facilitate the transaction of thoughts and feelings between humans and animals? This proposal might aim ultimately to secure some mutually agreeable ‘social contract’, whereby animals are incorporated more explicitly in the human life-world — not as merely wards but as something closer to citizens. (See, e.g., Donaldson and Kymlicka’s Zoopolis.) However, would this set of policy initiatives constitute a violation of the animals’ species integrity and simply be a more insidious form of human domination?

  1. Will human longevity stifle the prospects for social renewal? For the past 150 years, medicine has been preoccupied with the defeat of death, starting from reducing infant mortality to extending the human lifespan indefinitely. However, we also see that as people live longer, healthier lives, they also tend to have fewer children. This has already created a pensions crisis in welfare states, in which the diminishing ranks of the next generation work to sustain people who live long beyond the retirement age. How do we prevent this impending intergenerational conflict? Moreover, precisely because each successive generation enters the world without the burden of the previous generations’ memories, it is better disposed to strike in new directions. All told then, then, should death become discretionary in the future, with a positive revaluation of suicide and euthanasia? Moreover, should people be incentivized to have children as part of a societal innovation strategy?

  1. Will the end of death trivialize life? A set of trends taken together call into question the finality of death, which is significant because strong normative attitudes against murder and extinction are due largely to the putative irreversibility of these states. Indeed, some have argued that the sanctity – if not the very meaning — of human life itself is intimately related to the finality of death. However, there is a concerted effort to change all this – including cryonics, digital emulations of the brain, DNA-driven ‘de-extinction’ of past species, etc. Should these technologies be allowed to flourish, in effect, to ‘resurrect’ the deceased? As it happens, ‘rights of the dead’ are not recognized in human rights legislation and environmentalists generally oppose introducing new species to the ecology, which would seem to include not only brand new organisms but also those which once roamed the earth.

  1. Will political systems be capable of delivering on visions of future human income? There are two general visions of how humans will earn their keep in the future, especially in light of what is projected to be mass technologically induced unemployment, which will include many ordinary professional jobs. One would be to provide humans with a ‘universal basic income’ funded by some tax on the producers of labour redundancy in both the industrial and the professional classes. The other vision is that people would be provided regular ‘micropayments’ based on the information they routinely provide over the internet, which is becoming the universal interface for human expression. The first vision cuts against the general ‘lower tax’ and ‘anti-redistributive’ mindset of the post-Cold War era, whereas the latter vision cuts against perceived public preference for the maintenance of privacy in the face of government surveillance. In effect, both visions of future human income demand that the state reinvents its modern role as guarantor of, respectively, welfare and security – yet now against the backdrop of rapid technological change and laissez faire cultural tendencies.

  1. Will greater information access turn ‘poverty’ into a lifestyle prejudice? Mobile phone penetration is greater in some impoverished parts of Africa and Asia than in the United States and some other developed countries. While this has made the developed world more informationally available to the developing world, the impact of this technology on the latter’s living conditions has been decidedly mixed. Meanwhile as we come to a greater understanding of the physiology of impoverished people, we realize that their nervous systems are well adapted to conditions of extreme stress, as are their cultures more generally. (See e.g. Banerjee and Duflo’s Poor Economics.) In that case, there may come a point when the rationale for ‘development aid’ might disappear, and ‘poverty’ itself may be seen as a prejudicial term. Of course, the developing world may continue to require external assistance in dealing with wars and other (by their standards) extreme conditions, just as any other society might. But otherwise, we might decide in an anti-paternalistic spirit that they should be seen as sufficiently knowledgeable of their own interests to be able to lead what people in the developed world might generally regard as a suboptimal existence – one in which, say, the life expectancies between those in the developing and developed worlds remain significant and quite possibly increase over time.

The French Polynesian government, earlier this year, officially signed an agreement with The Seasteading Institute to cooperate on creating legal framework to allow for the development of The Floating Island Project. The legislation will give the Floating Island Project it’s own “special governing framework” creating an “innovative special economic zone”.

French Polynesia signs agreement for Floating Island Project

Read more

Research can seem bland to us laypersons. But, Marko Vukolić shares many of my research interests and he exceeds my academic credentials (with just enough overlap for me to understand his work). So, in my opinion, his writing is anything but bland…

Vukolić started his career as a post-doc intern at IBM in Zurich Switzerland. After a teaching stint as assistant professor at Eurecom and visiting professor at ETH Zurich, he rejoined the IBM research staff in both cloud computing infrastructure and the Blockchain Group.*

As a researcher and academic, Vukolić is a rising star in consensus-based mechanisms and low latency replicated state machines. At Institut Mines-Télécom in Paris, he wrote papers and participated in research projects on fault tolerance, scalability, cloud computing and distributed trust mechanisms.

Now, at IBM Zurich, Vukolić has published a superior analysis addressing the first and biggest elephant in the Bitcoin ballroom, Each elephant addresses an urgent need:

  • Scalability & throughput
  • Incentivize (as mining reward withers)
  • Grow & diversify governance & geographic influence
  • Anonymize transactions to protect privacy
  • Recognize & preserve ownership

Regarding the first elephant, scalability, Bitcoin urgently needs to grow its Blockchain dynamics into something that is living and manageable. To that end, Vukolić refers to a transaction bookkeeping mechanism that works as a “fabric”. That is, it does not require every miner to access the history-of-the-world and append each transaction onto the same chain in serial fashion. Rather than growing an ever bigger blockchain—with ever bigger computers—we need a more 3D approach that uses relational databases in a multi-threaded, transactional environment, while still preserving the distributed, p2p trust mechanisms of the original blockchain.

While clearly technical, it is a good read, even for lay enthusiasts. It directly relates to one of the elephants in the room.

I have pasted Marko’s Abstract below. The full paper is 10½ pages (14 with references).


Bitcoin cryptocurrency demonstrated the utility of global consensus across thousands of nodes, changing the world of digital transactions forever. In the early days of Bitcoin, the performance of its probabilistic proof-of-work (PoW) based consensus fabric, also known as blockchain, was not a major issue. Bitcoin became a success story, despite its consensus latencies on the order of an hour and the theoretical peak throughput of only up to 7 transactions per second.

The situation today is radically different and the poor performance scalability of early PoW blockchains no longer makes sense. Specifically, the trend of modern cryptocurrency platforms, such as Ethereum, is to support execution of arbitrary distributed applications on blockchain fabric, needing much better performance. This approach, however, makes cryptocurrency platforms step away from their original purpose and enter the domain of database-replication protocols, notably, the classical state-machine replication, and in particular its Byzantine fault-tolerant (BFT) variants.

In this paper, we contrast PoW-based blockchains to those based on BFT state machine replication, focusing on their scalability limits. We also discuss recent proposals to overcoming these scalability limits and outline key outstanding open problems in the quest for the “ultimate” blockchain fabric(s). Keywords: Bitcoin, blockchain, Byzantine fault tolerance, consensus, proof-of-work, scalability, state machine replication

* Like Marko, Blockchains, Cloud computing, and Privacy are, also my primary reserach interests, (GMTA!). But, I cede the rigorous, academic credentials to Marko.

BFT = Byzantine Fault Tolerant consensus protocols

Related—and recently in the news:

Raymond co-chairs CRYPSA and The Bitcoin Event. A columnist & board member at Lifeboat Foundation
he edits AWildDuck. He will deliver the keynote address at Digital Currency Summit in Johannesburg.

After labor, not all of us will want to explore inner consciousness. Abundant leisure will not turn everyone into the Buddha. Many of our tastes are in the gutter, and I have no objection to leaving them there. I’m not a fan of shopping per se, but buying stuff is deeply satisfying and motivating for many people. Is it possible to rethink the pleasure of conspicuous consumption in a way that decouples it from the competitive labor economy? The post-work world I’m imagining will have little surplus money for unnecessary shopping, even if robots and computers can dramatically lower the overhead of such production. So, a non-consummatory form of shopping will have to be cultivated.

Some people marshal all their evolved predatory skills to hunt down the perfect sweater, shoes, or watch. Could we redesign shopping as a system of “catch-and-release,” so that, like sport fishing, it’s the adventure and not the prize that becomes central? Maybe we will hunt for luxury items, but then instead of keeping them, simply photograph ourselves wearing the items (like a fisherman holding a giant pike). It’s an unlikely adjustment, I’ll grant you, but I never thought catch-and-release fishing would be fun until I did it, and it was. The way some people already buy and return items suggests to me that catch-and-release shopping is not impossible.

Read more

There are at least four ways to acquire Bitcoin and three ways to store it…


Acquire Bitcoin: You can trade Bitcoin in person, accept it as a vendor, mine it, or buy on an exchange.

Store Bitcoin: You can keep your Bitcoin in an online/cloud service (typically, one that is connected to your exchange account), keep it on your own PC or phone, or even print it out and store it on a piece of paper. Like a physical coin, the piece of paper has value. It can be placed in your lock box or under your mattress.

Let’s look at the market for Bitcoin Wallets (all of these are free), and then we shall talk about Bitcoin exchange services. This includes my personal recommendation for the typical consumer or coin enthusiast…

1. Choosing a Wallet

You can start your search for a wallet on this page at Bitcoin.org. Use the drop down tabs to refine your search by platform: Mobile, Desktop, Hardware gadget or Web. Don’t overlook the web option. For many users, the wallet (and VAULT) included with an online exchange account is all you need.

Each wallet platform is further distinguished by operating system. For example, you can find a smartphone wallet for Android, Apple, Windows Mobile or Blackberry. Some popular apps are listed under more than one OS or platform.

When you click on any of the app logos, you will see a checklist of five key traits, according to reviewers at the Bitcoin Foundation:

  • Control over your money
  • Simplified validation
  • Basic transparency
  • Secure environment
  • Weak privacy

These are not necessarily critical traits/features. It depends on your needs and preferences. For example, everyone wants good privacy and security. But not everyone wants to control their private keys. That places the risk of loss, backup and/or the burden of inheritance issues on you, rather than a standardized recovery process. The feature comparison simply helps you to begin your own comparison and evaluation.

For Android users, my personal recommendation is Bitcoin Wallet by Andreas Schildbach (the logo is a tilted orange ‘B’). It is simple, secure, well maintained and very popular. (iPhone users: See my my suggestion in the recommendations, below).

2. Portable –vs– Online

Despite the simplicity and low cost of spending or sending Bitcoin between individuals and vendors, getting your first Bitcoin can be confusing, complex and even risky. For this reason, I suggest that Newbies open an account at a very established and trustworthy exchange.

In the near future, this will include most big banks. But for now, the safest and most reputable exchange is Coinbase in San Francisco. They are also the one with the highest level of regulatory compliance. Bitstamp of Slovenia and Great Britain is a close second. In my opinion, using either of these organizations as a currency exchange or a secure place to park your digital currency is a safe bet.

Both of these exchanges include a cloud wallet service that—when used properly—is safe and secure. But, because Bitcoin is still in its infancy, you will need to learn about sweeping funds into a ‘vault’ (to better protect against hacking) and you should also learn about portable backups and multi-sig (to protect your assets, in the event of forgetfulness, death or incapacitation).

With either type of wallet—device storage or online with an exchange—I recommend that you install and play with a portable wallet on your phone, just to get the hang of a few basic functions: Display wallet address for incoming money, Send money, Request money (i.e. send an invoice), and Pay with the QR-camera feature. All wallets serve these basic and critical needs.

Recommendations:

  • Coinbase is a most reputable exchange for buying/selling & storing Bitcoin
  • Bitcoin Wallet by Andreas Schildbach is an excellent choice for portable, secure storage. This app is available for Android phones only. Apple iPhone users may wish to try Bitcoin Wallet by Blockchain. I have not reviewed it. It has a slightly less friendly user interface but it is stable and very popular.

Related Reading:


Philip Raymond co-chairs
CRYPSA, produces The Bitcoin Event and is a board member at

Lifeboat. He will deliver the Keynote Address at Digital Currency Summit in Johannesburg.