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Posts Tagged ‘Satoshi Nakamoto’

A Hijacked Vision

December 9, 2016 Leave a comment

If you dive into Satoshi Nakamoto’s writings like I have, you’ll quickly discover that his (their?) original vision for Bitcoin was that the network be available as a permission-less, peer-to-peer payment system intended for anyone, anywhere, anytime. And yes, that includes billions of disenfranchised people currently without the ability or opportunity to open a bank account.

In order for Bitcoin to scale to accommodate billions of daily users, the maximum block size currently burned into the network protocol must be increased from the paltry 1 megabyte size that’s been in effect since the birth of bitcoin way back in 2009.

Before disappearing into the ether, Satoshi foresaw the potential growth of bitcoin and had these words to say about the maximum block size:

satoshibloksize

The bitcoin core software development team, most of whom are employed by the for-profit company Blockstream, have hijacked Satoshi’s vision by steadfastly refusing to increase the bitcoin on-chain maximum block size beyond 1 megabyte.

Assuming 200 bytes per transaction, each 1 MB bitcoin block can hold a up to 5000 transactions. Since blocks are validated at 10 minute intervals, that means the network capacity is currently capped at a measly 8 transactions per second (versus Visa/PayPal capacities of hundreds of thousands of transactions/sec).

A quick glance at the home page of Blockchain.info shows that every block is full and confirmations are taking much longer than 10 minutes.

fullblocks

With more and more transactions competing to be added to each block, the per transaction miner’s fee, which originally amounted to pennies, is increasing at such at rate that only large transactions will make economic sense in the near future. In the worse case, people might as well quit trying to enter the Bitcoin ecosystem and revert back to using dinosaur remittance providers like Western Union at 20% per transaction.

As new individual users and businesses attempt to experiment with bitcoin, many of them are not only being turned off by larger and larger transaction fees, they’re increasingly getting annoyed by long confirmation delays – even to the point of having their transactions dropped from the network altogether because of overcapacity at peak usage times.

Of course, the bitcoin core development team (which may as well be called Adam Bach’s Blockstream Inc. team) has a billion technical excuses for keeping the max block size at 1MB, all of which have been debunked by the pro-increase-in-block-size technical community. Everyone knows the real motivation behind core’s uncompromising position: Blockstream’s plan to profit from the side chain products they are developing.

bsproducts

Speaking of the pro-increase-in-block-size technical community, they are on their third valiant try at attempting to put Bitcoin back on track with Satoshi’s original vision:

bitcoincorealts

To hell with the Bitcoin core development team’s self-serving roadmap for Bitcoin, I support Bitcoin Unlimited. So should you.

 

The Waste Of Mining?

February 27, 2016 Leave a comment

Fervent anti-bitcoiners have a bottomless cache of reasons for wanting Bitcoin to fail. One of their favorite fear-mongering strategies is to warn of “the impending ecological catastrophe” that they think will engulf the world if Bitcoin succeeds on a global scale.

In order for bitcoins to be created, they, like gold, need to be “mined“. However, unlike the physical mining required to unearth gold, virtual mining is required to “unearth” bitcoins. Virtual mining for bitcoins requires a large amount of electricity because Bitcoin miners race against each other using a computationally dense hashing algorithm to validate transactions and add a verified block to the immutable blockchain.

For its contributory work in helping to keep the blockchain secure, the winning miner of a block is rewarded with a spanking brand new batch of bitcoins (currently set to 25 bitcoins per block). After each block is added to the blockchain, the race to add the next block of transactions commences.

Unlike newly mined physical gold which require a costly post-mining process to bring the booty to market, newly minted virtual bitcoins can be used immediately – to pay a miner’s electrical bills, for example.

When asked about the cost of Bitcoin mining back in 2010, Bitcoin creator Satoshi Nakamoto had this to say:

goldbtcmining

What most people new to bitcoin fail to understand (but the banksters with a vested interested in maintaining the status quo do understand) is summarized nicely in Satoshi’s last two sentences:

The utility of the exchanges made possible by Bitcoin will far exceed the cost of electricity used. Therefore, not having Bitcoin would be the net waste.

Did He, Or Didn’t he?

December 7, 2015 Leave a comment

As the Crypto mailing list exchange snippet below indicates, Satoshi Nakamoto wrote all of the Bitcoin Core C++ source code prior to writing his world-changing white paper.

codefirst

Hmmm, I wonder if Satoshi used TDD to develop his masterpiece? I also wonder: whether he meticulously tracked his velocity with a burndown chart; what obstacles his scrum master removed during the effort; and how his retrospectives improved the process.

bitcoinburndown

 

The Bitcoin Timeline

September 1, 2015 Leave a comment

From “Bitcoin For The Befuddled“, I give you the path from paper-to-reality of a potentially world-changing technology:

BTC Timeline

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