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World History Timeline of Events Leading up to Bitcoin - In the Making

A (live/editable) timeline of historical events directly or indirectly related to the creation of Bitcoin and Cryptocurrencies
*still workin' on this so check back later and more will be added, if you have any suggested dates/events feel free to lemme know...
This timeline includes dates pertaining to:
Ancient Bartering – first recorded in Egypt (resources, services...) – doesn’t scale
Tally sticks were used, making notches in bones or wood, as a form of money of account
9000-6000 BC Livestock considered the first form of currency
c3200 BC Clay tablets used in Uruk (Iraq) for accounting (believed to be the earliest form of writing)
3000 BC Grain is used as a currency, measured out in Shekels
3000 BC Banking developed in Mesopotamia
3000 BC? Punches used to stamp symbols on coins were a precursor to the printing press and modern coins
? BC Since ancient Persia and all the way up until the invention and expansion of the telegraph Homing Pigeons were used to carry messages
2000 BC Merchants in Assyria, India and Sumeria lent grain to farmers and traders as a precursor to banks
1700 BC In Babylon at the time of Hammurabi, in the 18th century BC, there are records of loans made by the priests of the temple.
1200 BC Shell money first used in China
1000-600 BC Crude metal coins first appear in China
640 BC Precious metal coins – Gold & Silver first used in ancient Lydia and coastal Greek cities featuring face to face heads of a bull and a lion – first official minted currency made from electrum, a mixture of gold and silver
600-500 BC Atbash Cipher
A substitution Cipher used by ancient Hebrew scholars mapping the alphabet in reverse, for example, in English an A would be a Z, B a Y etc.
400 BC Skytale used by Sparta
474 BC Hundreds of gold coins from this era were discovered in Rome in 2018
350 BC Greek hydraulic semaphore system, an optical communication system developed by Aeneas Tacticus.
c200 BC Polybius Square
??? Wealthy stored coins in temples, where priests also lent them out
??? Rome was the first to create banking institutions apart from temples
118 BC First banknote in the form of 1 foot sq pieces of white deerskin
100-1 AD Caesar Cipher
193 Aureus, a gold coin of ancient Rome, minted by Septimius Severus
324 Solidus, pure gold coin, minted under Constantine’s rule, lasted until the late 8th century
600s Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty, 960–1279
c757–796 Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa
806 First paper banknotes used in China but isn’t widely accepted in China until 960
1024 The first series of standard government notes were issued in 1024 with denominations like 1 guàn (貫, or 700 wén), 1 mín (緡, or 1000 wén), up to 10 guàn. In 1039 only banknotes of 5 guàn and 10 guàn were issued, and in 1068 a denomination of 1 guàn was introduced which became forty percent of all circulating Jiaozi banknotes.
1040 The first movable type printer was invented in China and made of porcelain
? Some of the earliest forms of long distance communication were drums used by Native Africans and smoke signals used by Native Americans and Chinese
1088 Movable type in Song Dynasty China
1120 By the 1120s the central government officially stepped in and produced their own state-issued paper money (using woodblock printing)
1150 The Knights Templar issued bank notes to pilgrims. Pilgrims deposited their valuables with a local Templar preceptory before embarking, received a document indicating the value of their deposit, then used that document upon arrival in the Holy Land to retrieve their funds in an amount of treasure of equal value.
1200s-1300s During the 13th century bankers from north Italy, collectively known as Lombards, gradually replace the Jews in their traditional role as money-lenders to the rich and powerful. – Florence, Venice and Genoa - The Bardi and Peruzzi Families dominated banking in 14th century Florence, establishing branches in many other parts of Europe
1200 By the time Marco Polo visited China they’d move from coins to paper money, who introduced the concept to Europe. An inscription warned, "All counterfeiters will be decapitated." Before the use of paper, the Chinese used coins that were circular, with a rectangular hole in the middle. Several coins could be strung together on a rope. Merchants in China, if they became rich enough, found that their strings of coins were too heavy to carry around easily. To solve this problem, coins were often left with a trustworthy person, and the merchant was given a slip of paper recording how much money they had with that person. Marco Polo's account of paper money during the Yuan Dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."
1252 Florin minted in Florence, becomes the hard currency of its day helping Florence thrive economically
1340 Double-entry bookkeeping - The clerk keeping the accounts for the Genoese firm of Massari painstakingly fills in the ledger for the year 1340.
1397 Medici Bank established
1450 Johannes Gutenberg builds the printing press – printed words no longer just for the rich
1455 Paper money disappears from China
1466 Polyalphabetic Cipher
1466 Rotating cipher disks – Vatican – greatest crypto invention in 1000 yrs – the first system to challenge frequency analysis
1466 First known mechanical cipher machine
1472 The oldest bank still in existence founded, Banca Monte dei Paschi di Siena, headquartered in Siena, Italy
1494 Double-entry bookkeeping system codified by Luca Pacioli
1535 Wampum, a form of currency used by Native Americans, a string of beads made from clamshells, is first document.
1553 Vigenere Cipher
1557 Phillip II of Spain managed to burden his kingdom with so much debt (as the result of several pointless wars) that he caused the world's first national bankruptcy — as well as the world's second, third and fourth, in rapid succession.
1577 Newspaper in Korea
1586 The Babington Plot
1590 Cabinet Noir was established in France. Its mission was to open, read and reseal letters, and great expertise was developed in the restoration of broken seals. In the knowledge that mail was being opened, correspondents began to develop systems to encrypt and decrypt their letters. The breaking of these codes gave birth to modern systematic scientific code breaking.
1600s Promissory banknotes began in London
1600s By the early 17th century banking begins also to exist in its modern sense - as a commercial service for customers rather than kings. – Late 17th century we see cheques slowly gains acceptance
The total of the money left on deposit by a bank's customers is a large sum, only a fraction of which is usually required for withdrawals. A proportion of the rest can be lent out at interest, bringing profit to the bank. When the customers later come to realize this hidden value of their unused funds, the bank's profit becomes the difference between the rates of interest paid to depositors and demanded from debtors.
The transformation from moneylenders into private banks is a gradual one during the 17th and 18th centuries. In England it is achieved by various families of goldsmiths who early in the period accept money on deposit purely for safe-keeping. Then they begin to lend some of it out. Finally, by the 18th century, they make banking their business in place of their original craft as goldsmiths.
1605 Newspaper in Straussburg
c1627 Great Cipher
1637 Wampum is declared as legal tender in the U.S. (where we got the slang word “clams” for money)
1656 Johan Palmstruch establishes the Stockholm Banco
1661 Paper Currency reappears in Europe, soon became common - The goldsmith-bankers of London began to give out the receipts as payable to the bearer of the document rather than the original depositor
1661 Palmstruch issues credit notes which can be exchanged, on presentation to his bank, for a stated number of silver coins
1666 Stockholms Banco, the predecessor to the Central Bank of Sweden issues the first paper money in Europe. Soon went bankrupt for printing too much money.
1667 He issues more notes than his bank can afford to redeem with silver and winds up in disgrace, facing a death penalty (commuted to imprisonment) for fraud.
1668 Bank of Sweden – today the 2nd oldest surviving bank
1694 First Central Bank established in the UK was the first bank to initiate the permanent issue of banknotes
Served as model for most modern central banks.
The modern banknote rests on the assumption that money is determined by a social and legal consensus. A gold coin's value is simply a reflection of the supply and demand mechanism of a society exchanging goods in a free market, as opposed to stemming from any intrinsic property of the metal. By the late 17th century, this new conceptual outlook helped to stimulate the issue of banknotes.
1700s Throughout the commercially energetic 18th century there are frequent further experiments with bank notes - deriving from a recognized need to expand the currency supply beyond the availability of precious metals.
1710 Physiocracy
1712 First commercial steam engine
1717 Master of the Royal Mint Sir Isaac Newton established a new mint ratio between silver and gold that had the effect of driving silver out of circulation (bimetalism) and putting Britain on a gold standard.
1735 Classical Economics – markets regulate themselves when free of intervention
1744 Mayer Amschel Rothschild, Founder of the Rothschild Banking Empire, is Born in Frankfurt, Germany
Mayer Amschel Rothschild extended his banking empire across Europe by carefully placing his five sons in key positions. They set up banks in Frankfurt, Vienna, London, Naples, and Paris. By the mid 1800’s they dominated the banking industry, lending to governments around the world and people such as the Vanderbilts, Carnegies, and Cecil Rhodes.
1745 There was a gradual move toward the issuance of fixed denomination notes in England standardized printed notes ranging from £20 to £1,000 were being printed.
1748 First recorded use of the word buck for a dollar, stemming from the Colonial period in America when buck skins were commonly traded
1757 Colonial Scrip Issued in US
1760s Mayer Amschel Rothschild establishes his banking business
1769 First steam powered car
1775-1938 US Diplomatic Codes & Ciphers by Ralph E Weber used – problems were security and distribution
1776 American Independence
1776 Adam Smith’s Invisible Hand theory helped bankers and money-lenders limit government interference in the banking sector
1781 The Bank of North America was a private bank first adopted created the US Nation's first de facto central bank. When shares in the bank were sold to the public, the Bank of North America became the country's first initial public offering. It lasted less than ten years.
1783 First steamboat
1791 Congress Creates the First US Bank – A Private Company, Partly Owned by Foreigners – to Handle the Financial Needs of the New Central Government. First Bank of the United States, a National bank, chartered for a term of twenty years, it was not renewed in 1811.
Previously, the 13 states had their own banks, currencies and financial institutions, which had an average lifespan of about 5 years.
1792 First optical telegraph invented where towers with telescopes were dispersed across France 12-25 km apart, relaying signals according to positions of arms extended from the top of the towers.
1795 Thomas Jefferson invents the Jefferson Disk Cipher or Wheel Cipher
1797 to 1821 Restriction Period by England of trading banknotes for silver during Napoleonic Wars
1797 Currency Crisis
Although the Bank was originally a private institution, by the end of the 18th century it was increasingly being regarded as a public authority with civic responsibility toward the upkeep of a healthy financial system.
1799 First paper machine
1800 Banque de France – France’s central bank opens to try to improve financing of the war
1800 Invention of the battery
1801 Rotchschild Dynasty begins in Frankfurt, Holy Roman Empire – established international banking family through his 5 sons who established themselves in London, Paris, Frankfurt, Vienna, and Naples
1804 Steam locomotive
1807 Internal combustion engine and automobile
1807 Robert Fulton expands water transportation and trade with the workable steamboat.
1809 Telegraphy
1811 First powered printing press, also first to use a cylinder
1816 The Privately Owned Second Bank of the US was Chartered – It Served as the Main Depository for Government Revenue, Making it a Highly Profitable Bank – charter not renewed in 1836
1816 The first working telegraph was built using static electricity
1816 Gold becomes the official standard of value in England
1820 Industrial Revolution
c1820 Neoclassical Economics
1821 British gov introduces the gold standard - With governments issuing the bank notes, the inherent danger is no longer bankruptcy but inflation.
1822 Charles Babbage, considered the "father of the computer", begins building the first programmable mechanical computer.
1832 Andrew Jackson Campaigns Against the 2nd Bank of the US and Vetoes Bank Charter Renewal
Andrew Jackson was skeptical of the central banking system and believed it gave too few men too much power and caused inflation. He was also a proponent of gold and silver and an outspoken opponent of the 2nd National Bank. The Charter expired in 1836.
1833 President Jackson Issues Executive Order to Stop Depositing Government Funds Into Bank of US
By September 1833, government funds were being deposited into state chartered banks.
1833-1837 Manufactured “boom” created by central bankers – money supply Increases 84%, Spurred by the 2nd Bank of the US
The total money supply rose from $150 million to $267 million
1835 Jackson Escapes Assassination. Assassin misfired twice.
1837-1862 The “Free Banking Era” there was no formal central bank in the US, and banks issued their own notes again
1838 First Telegram sent using Morse Code across 3 km, in 1844 he sent a message across 71 km from Washington DC to Baltimore.
1843 Ada Lovelace published the first algorithm for computing
1844 Modern central bank of England established - meaning only the central bank of England could issue banknotes – prior to that commercial banks could issue their own and were the primary form of currency throughout England
the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt.
1848 Communist Manifesto
1850 The first undersea telegraphic communications cable connected France in England after latex produced from the sap of the Palaquium gutta tree in 1845 was proposed as insulation for the underwater cables.
1852 Many countries in Europe build telegram networks, however post remained the primary means of communication to distant countries.
1855 In England fully printed notes that did not require the name of the payee and the cashier's signature first appeared
1855 The printing telegraph made it possible for a machine with 26 alphabetic keys to print the messages automatically and was soon adopted worldwide.
1856 Belgian engineer Charles Bourseul proposed telephony
1856 The Atlantic Telegraph company was formed in London to stretch a commercial telegraph cable across the Atlantic Ocean, completed in 1866.
1860 The Pony Express was founded, able to deliver mail of wealthy individuals or government officials from coast to coast in 10 days.
1861 The East coast was connected to the West when Western Union completed the transcontinental telegraph line, putting an end to unprofitable The Pony Express.
1862-1863 First US banknotes - Lincoln Over Rules Debt-Based Money and Issues Greenbacks to Fund Civil War
Bankers would only lend the government money under certain conditions and at high interest rates, so Lincoln issued his own currency – “greenbacks” – through the US Treasury, and made them legal tender. His soldiers went on to win the war, followed by great economic expansion.
1863 to 1932 “National Banking Era” Commercial banks in the United States had legally issued banknotes before there was a national currency; however, these became subject to government authorization from 1863 to 1932
1864 Friedrich Wilhelm Raiffeisen founded the first rural credit union in Heddesdorf (now part of Neuwied) in Germany. By the time of Raiffeisen's death in 1888, credit unions had spread to Italy, France, the Netherlands, England, Austria, and other nations
1870 Long-distance telegraph lines connected Britain and India.
c1871 Marginalism - The doctrines of marginalism and the Marginal Revolution are often interpreted as a response to the rise of the worker's movement, Marxian economics and the earlier (Ricardian) socialist theories of the exploitation of labour.
1871 Carl Menger’s Principles of Economics – Austrian School
1872 Marx’s Das Capital
1872 Australia becomes the first nation to be connected to the rest of the world via submarine telegraph cables.
1876 Alexander Graham Bell patented the telephone, first called the electric speech machine – revolutionized communication
1877 Thomas Edison – Phonograph
1878 Western Union, the leading telegraph provider of the U.S., begins to lose out to the telephone technology of the National Bell Telephone Company.
1881 President James Garfield, Staunch Proponent of “Honest Money” Backed by Gold and Silver, was Assassinated
Garfield opposed fiat currency (money that was not backed by any physical object). He had the second shortest Presidency in history.
1882 First description of the one-time pad
1886 First gas powered car
1888 Ballpoint pen
1892 Cinematograph
1895 System of wireless communication using radio waves
1896 First successful intercontinental telegram
1898 Polyethylene
1899 Nickel-cadmium battery
1907 Banking Panic of 1907
The New York Stock Exchange dropped dramatically as everyone tried to get their money out of the banks at the same time across the nation. This banking panic spurred debate for banking reform. JP Morgan and others gathered to create an image of concern and stability in the face of the panic, which eventually led to the formation of the Federal Reserve. The founders of the Federal Reserve pretended like the bankers were opposed to the idea of its formation in order to mislead the public into believing that the Federal Reserve would help to regulate bankers when in fact it really gave even more power to private bankers, but in a less transparent way.
1908 St Mary’s Bank – first credit union in US
1908 JP Morgan Associate and Rockefeller Relative Nelson Aldrich Heads New National Monetary Commission
Senate Republican leader, Nelson Aldrich, heads the new National Monetary Commission that was created to study the cause of the banking panic. Aldrich had close ties with J.P. Morgan and his daughter married John D. Rockefeller.
1910 Bankers Meet Secretly on Jekyll Island to Draft Federal Reserve Banking Legislation
Over the course of a week, some of the nation’s most powerful bankers met secretly off the coast of Georgia, drafting a proposal for a private Central Banking system.
1913 Federal Reserve Act Passed
Two days before Christmas, while many members of Congress were away on vacation, the Federal Reserve Act was passed, creating the Central banking system we have today, originally with gold backed Federal Reserve Notes. It was based on the Aldrich plan drafted on Jekyll Island and gave private bankers supreme authority over the economy. They are now able to create money out of nothing (and loan it out at interest), make decisions without government approval, and control the amount of money in circulation.
1913 Income tax established -16th Amendment Ratified
Taxes ensured that citizens would cover the payment of debt due to the Central Bank, the Federal Reserve, which was also created in 1913.The 16th Amendment stated: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
1914 November, Federal Reserve Banks Open
JP Morgan and Co. Profits from Financing both sides of War and Purchasing Weapons
J.P. Morgan and Co. made a deal with the Bank of England to give them a monopoly on underwriting war bonds for the UK and France. They also invested in the suppliers of war equipment to Britain and France.
1914 WWI
1917 Teletype cipher
1917 The one-time pad
1917 Zimmerman Telegram intercepted and decoded by Room 40, the cryptanalysis department of the British Military during WWI.
1918 GB returns to gold standard post-war but it didn’t work out
1919 First rotor machine, an electro-mechanical stream ciphering and decrypting machine.
1919 Founding of The Cipher Bureau, Poland’s intelligence and cryptography agency.
1919-1929 The Black Chamber, a forerunner of the NSA, was the first U.S. cryptanalytic organization. Worked with the telegraph company Western Union to illegally acquire foreign communications of foreign embassies and representatives. It was shut down in 1929 as funding was removed after it was deemed unethical to intercept private domestic radio signals.
1920s Department stores, hotel chains and service staions begin offering customers charge cards
1921-1929 The “Roaring 20’s” – The Federal Reserve Floods the Economy with Cash and Credit
From 1921 to 1929 the Federal Reserve increased the money supply by $28 billion, almost a 62% increase over an eight-year period.[3] This artificially created another “boom”.
1927 Quartz clock
1928 First experimental Television broadcast in the US.
1929 Federal Reserve Contracts the Money Supply
In 1929, the Federal Reserve began to pull money out of circulation as loans were paid back. They created a “bust” which was inevitable after issuing so much credit in the years before. The Federal Reserve’s actions triggered the banking crisis, which led to the Great Depression.
1929 October 24, “Black Thursday”, Stock Market Crash
The most devastating stock market crash in history. Billions of dollars in value were consolidated into the private banker’s hands at the expense of everyone else.
1930s The Great Depression marked the end of the gold standard
1931 German Enigma machines attained and reconstructed.
1932 Turbo jet engine patented
1933 SEC founded - passed the Glass–Steagall Act, which separated investment banking and commercial banking. This was to avoid more risky investment banking activities from ever again causing commercial bank failures.
1933 FM Radio
1933 Germany begins Telex, a network of teleprinters sending and receiving text based messages. Post WWII Telex networks began to spread around the world.
1936 Austrian engineer Paul Eisler invented Printed circuit board
1936 Beginning of the Keynesian Revolution
1937 Typex, British encryption machines which were upgraded versions of Enigma machines.
1906 Teletypewriters
1927 Founding of highly secret and unofficial Signal Intelligence Service, SIS, the U.S. Army’s codebreaking division.
1937 Made illegal for Americans to own gold
1938 Z1 built by Konrad Zuse is the first freely programmable computer in the world.
1939 WWII – decline of the gold standard which greatly restricted policy making
1939-45 Codetalkers - The Navajo code is the only spoken military code never to have been deciphered - "Were it not for the Navajos, the Marines would never have taken Iwo Jima."—Howard Connor
1940 Modems
1942 Deciphering Japanese coded messages leads to a turning point victory for the U.S. in WWII.
1943 At Bletchley Park, Alan Turing and team build a specialized cipher-breaking machine called Heath Robinson.
1943 Colossus computer built in London to crack the German Lorenz cipher.
1944 Bretton Woods – convenient after the US had most of the gold
1945 Manhattan Project – Atom Bomb
1945 Transatlantic telephone cable
1945 Claude E. Shannon published "A mathematical theory of cryptography", commonly accepted as the starting point for development of modern cryptography.
C1946 Crypto Wars begin and last to this day
1946 Charg-it card created by John C Biggins
1948 Atomic clock
1948 Claude Shannon writes a paper that establishes the mathematical basis of information theory
1949 Info theorist Claude Shannon asks “What does an ideal cipher look like?” – one time pad – what if the keys are not truly random
1950 First credit card released by the Diners Club, able to be used in 20 restaurants in NYC
1951 NSA, National Security Agency founded and creates the KL-7, an off-line rotor encryption machine
1952 First thermonuclear weapon
1953 First videotape recorder
1953 Term “Hash” first used meaning to “chop” or “make a mess” out of something
1954 Atomic Energy Act (no mention of crypto)
1957 The NSA begins producing ROMOLUS encryption machines, soon to be used by NATO
1957 First PC – IBM
1957 First Satellite – Sputnik 1
1958 Western Union begins building a nationwide Telex network in the U.S.
1960s Machine readable codes were added to the bottom of cheques in MICR format, which speeded up the clearing and sorting process
1960s Financial organizations were beginning to require strong commercial encryption on the rapidly growing field of wired money transfer.
1961 Electronic clock
1963 June 4, Kennedy Issued an Executive Order (11110) that Authorized the US Treasury to Issue Silver Certificates, Threatening the Federal Reserve’s Monopoly on Money
This government issued currency would bypass the governments need to borrow from bankers at interest.
1963 Electronic calculator
1963 Nov. 22, Kennedy Assassinated
1963 Johnson Reverses Kennedy’s Banking Rule and Restores Power to the Federal Reserve
1964 8-Track
1964 LAN, Local Area Networks adapters
1965 Moore’s Law by CEO of Intel Gordon Moore observes that the number of components per integrated circuit doubles every year, and projected this rate of growth would continue for at least another decade. In 1975 he revised it to every two years.
1967 First ATM installed at Barclay’s Bank in London
1968 Cassette Player introduced
1969 First connections of ARPANET, predecessor of the internet, are made. started – SF, SB, UCLA, Utah (now Darpa) – made to stay ahead of the Soviets – there were other networks being built around the world but it was very hard to connect them – CERN in Europe
1970s Stagflation – unemployment + inflation, which Keynesian theory could not explain
1970s Business/commercial applications for Crypto emerge – prior to this time it was militarily used – ATMs 1st got people thinking about commercial applications of cryptography – data being sent over telephone lines
1970s The public developments of the 1970s broke the near monopoly on high quality cryptography held by government organizations.
Use of checks increased in 70s – bringing about ACH
One way functions...
A few companies began selling access to private networks – but weren’t allowed to connect to the internet – business and universities using Arpanet had no commercial traffic – internet was used for research, not for commerce or advertising
1970 Railroads threatened by the growing popularity of air travel. Penn Central Railroad declares bankruptcy resulting in a $3.2 billion bailout
1970 Conjugate coding used in an attempt to design “money physically impossible to counterfeit”
1971 The US officially removes the gold standard
1971 Email invented
1971 Email
1971 First microcomputer on a chip
1971 Lockheed Bailout - $1.4 billion – Lockheed was a major government defense contractor
1972 First programmable word processor
1972 First video game console
1973 SWIFT established
1973 Ethernet invented, standardized in ‘83
1973 Mobile phone
1973 First commercial GUI – Xerox Alto
1973 First touchscreen
1973 Emails made up more than ¾ of ARPANET’s packets – people had to keep a map of the network by their desk – so DNS was created
1974 A protocol for packet network intercommunication – TCP/IP – Cerf and Kahn
1974 Franklin National Bank Bailout - $1.5 billion (valued at that time) - At the time, it was the largest bank failure in US history
1975 New York City Bailout - $9.4 billion – NYC was overextended
1975 W DES - meant that commercial uses of high quality encryption would become common, and serious problems of export control began to arise.
1975 DES, Data Encryption Standard developed at IBM, seeking to develop secure electronic communications for banks and large financial organizations. DES was the first publicly accessible cipher to be 'blessed' by a national agency such as the NSA. Its release stimulated an explosion of public and academic interest in cryptography.
1975 Digital camera
1975 Altair 8800 sparks the microprocessor revolution
1976 Bretton Woods ratified (lasted 30 years) – by 80’s all nations were using floating currencies
1976 New Directions in Cryptography published by Diffie & Hellman – this terrified Fort Meade – previously this technique was classified, now it’s public
1976 Apple I Computer – Steve Wozniak
1976 Asymmetric key cryptosystem published by Whitfield Diffie and Martin Hellman.
1976 Hellman and Diffie publish New Directions in Cryptography, introducing a radically new method of distributing cryptographic keys, contributing much to solving key distribution one of the fundamental problems of cryptography. It brought about the almost immediate public development of asymmetric key algorithms. - where people can have 2 sets of keys, public and private
1977 Diffie & Hellman receive letter from NSA employee JA Meyer that they’re violating Federal Laws comparable to arms export – this raises the question, “Can the gov prevent academics from publishing on crypto?
1977 DES considered insecure
1977 First handheld electronic game
1977 RSA public key encryption invented
1978 McEliece Cryptosystem invented, first asymmetric encryption algorithm to use randomization in the encryption process
1980s Large data centers began being built to store files and give users a better faster experience – companies rented space from them - Data centers would not only store data but scour it to show people what they might want to see and in some cases, sell data
1980s Reaganomics and Thatcherism
1980 A decade of intense bank failures begins; the FDIC reports that 1,600 were either closed or received financial assistance from 1980 to 1994
1980 Chrysler Bailout – lost over $1 billion due to major hubris on the part of its executives - $1.5 billion one of the largest payouts ever made to a single corporation.
1980 Protocols for public key cryptosystems – Ralph Merkle
1980 Flash memory invented – public in ‘84
1981 “Untraceable Electronic Mail, Return Addresses and Digital Pseudonumns” – Chaum
1981 EFTPOS, Electronic funds transfer at point of sale is created
1981 IBM Personal Computer
1982 “The Ethics of Liberty” Murray Rothbard
1982 Commodore 64
1982 CD
1983 Satellite TV
1983 First built in hard drive
1983 C++
1983 Stereolithography
1983 Blind signatures for untraceable payments
Mid 1980s Use of ATMs becomes more widespread
1984 Continental Illinois National Bank and Trust bailed out due to overly aggressive lending styles and - the bank’s downfall could be directly traced to risk taking and a lack of due diligence on the part of bank officers - $9.5 billion in 2008 money
1984 Macintosh Computer - the first mass-market personal computer that featured a graphical user interface, built-in screen and mouse
1984 CD Rom
1985 Zero-Knowledge Proofs first proposed
1985 300,000 simultaneous telephone conversations over single optical fiber
1985 Elliptic Curve Cryptography
1987 ARPANET had connected over 20k guarded computers by this time
1988 First private networks email servers connected to NSFNET
1988 The Crypto Anarchists Manifesto – Timothy C May
1988 ISDN, Integrated Services Digital Network
1989 Savings & Loan Bailout - After the widespread failure of savings and loan institutions, President George H. W. Bush signed and Congress enacted the Financial Institutions Reform Recovery and Enforcement Act - This was a taxpayer bailout of about $200 billion
1989 First commercial emails sent
1989 Digicash - Chaum
1989 Tim Berners-Lee and Robert Cailliau built the prototype system which became the World Wide Web, WWW
1989 First ISPs – companies with no network of their own which connected people to a local network and to the internet - To connect to a network your computer placed a phone call through a modem which translated analog signals to digital signals – dial-up was used to connect computers as phone lines already had an extensive network across the U.S. – but phone lines weren’t designed for high pitched sounds that could change fast to transmit large amounts of data
1990s Cryptowars really heat up...
1990s Some countries started to change their laws to allow "truncation"
1990s Encryption export controls became a matter of public concern with the introduction of the personal computer. Phil Zimmermann's PGP cryptosystem and its distribution on the Internet in 1991 was the first major 'individual level' challenge to controls on export of cryptography. The growth of electronic commerce in the 1990s created additional pressure for reduced restrictions.[3] Shortly afterward, Netscape's SSL technology was widely adopted as a method for protecting credit card transactions using public key cryptography.
1990 NSFNET replaced Arpanet as backbone of the internet with more than 500k users
Early 90s Dial up provided through AOL and Compuserve
People were leery to use credit cards on the internet
1991 How to time-stamp a digital doc - Stornetta
1991 Phil Zimmermann releases the public key encryption program Pretty Good Privacy (PGP) along with its source code, which quickly appears on the Internet. He distributed a freeware version of PGP when he felt threatened by legislation then under consideration by the US Government that would require backdoors to be included in all cryptographic products developed within the US. Expanded the market to include anyone wanting to use cryptography on a personal computer (before only military, governments, large corporations)
1991 WWW (Tim Berners Lee) – made public in ‘93 – flatten the “tree” structure of the internet using hypertext – reason for HTTP//:WWW – LATER HTTPS for more security
1992 Erwise – first Internet Browser w a graphical Interface
1992 Congress passed a law allowing for commercial traffic on NSFNET
1992 Cpherpunks, Eric Hughes, Tim C May and John Gilmore – online privacy and safety from gov – cypherpunks write code so it can be spread and not shut down (in my earlier chapter)
1993 Mosaic – popularized surfing the web ‘til Netscape Navigator in ’94 – whose code was later used in Firefox
1993 A Cypherpunks Manifesto – Eric Hughes
1994 World’s first online cyberbank, First Virtual, opened for business
1994 Bluetooth
1994 First DVD player
1994 Stanford Federal Credit Union becomes the first financial institution to offer online internet banking services to all of its members in October 1994
1994 Internet only used by a few
1994 Cybercash
1994 Secure Sockets Layer (SSL) encryption protocol released by Netscape. Making financial transactions possible.
1994 One of the first online purchases was made, a Pizza Hut pepperoni pizza with mushrooms and extra cheese
1994 Cyphernomicon published – social implication where gov can’t do anything about it
1994-1999 Social Networking – GeoCities (combining creators and users) – had 19M users by ’99 – 3rd most popular after AOL and Yahoo – GeoCities purchased by Yahoo for $3.6B but took a hit after dotcom bubble popped and never recovered – GC shut down in ‘99
1995-2000 Dotcom bubble – Google, Amazon, Facebook: get over 600M visitors/year
1995 DVD
1995 MP3 term coined for MP3 files, the earlier development of which stretches back into the ‘70s, where MP files themselves where developed throughout the ‘90s
1995 NSFNET shut down and handed everything over to the ISPs
1995 NSA publishes the SHA1 hash algorithm as part of its Digital Signature Standard.
1996, 2000 President Bill Clinton signing the Executive order 13026 transferring the commercial encryption from the Munition List to the Commerce Control List. This order permitted the United States Department of Commerce to implement rules that greatly simplified the export of proprietary and open source software containing cryptography, which they did in 2000 - The successful cracking of DES likely helped gather both political and technical support for more advanced encryption in the hands of ordinary citizens - NSA considers AES strong enough to protect information classified at the Top Secret level
1996 e-gold
1997 WAP, Wireless Access Point
1997 NSA researchers published how to mint e cash
1997 Adam Back – HashCash – used PoW – coins could only be used once
1997 Nick Szabo – smart contracts “Formalizing and Securing Relationships on Public Networks”
1998 OSS, Open-source software Initiative Founded
1998 Wei Dai – B-money – decentralized database to record txs
1998 Bitgold
1998 First backdoor created by hackers from Cult of the Dead Cow
1998 Musk and Thiel founded PayPal
1998 Nick Szabo says crypto can protect land titles even if thugs take it by force – said it could be done with a timestamped database
1999 Much of the Glass-Steagal Act repealed - this saw US retail banks embark on big rounds of mergers and acquisitions and also engage in investment banking activities.
1999 Milton Friedman says, “I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that's missing, but that will soon be developed, is a reliable e-cash - a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A.”
1999 European banks began offering mobile banking with the first smartphones
1999 The Financial Services Modernization Act Allows Banks to Grow Even Larger
Many economists and politicians have recognized that this legislation played a key part in the subprime mortgage crisis of 2007.
1999-2001 Napster, P2P file sharing – was one of the fastest growing businesses in history – bankrupt for paying musicians for copyright infringement

submitted by crypto_jedi_ninja to Bitcoin [link] [comments]

Creator of Bittorrent Thinks He Can Kill Bitcoin With Chia, a Burstcoin (BURST) Copycat

Creator of Bittorrent Thinks He Can Kill Bitcoin With Chia, a Burstcoin (BURST) Copycat

https://preview.redd.it/snvu0ixss9521.png?width=690&format=png&auto=webp&s=07d3a96392b8e6b13a827e387f1a8b272471595c
https://cryptoiq.co/creator-of-bittorrent-thinks-he-can-kill-bitcoin-with-chia-a-burstcoin-burst-copycat/
Bram Cohen, the creator of the popular peer to peer torrenting software BitTorrent, is creating a cryptocurrency called Chia. This new cryptocurrency will use Proof of Capacity (PoC), an algorithm perfected by Burstcoin (BURST).
Breaker incorrectly reports that PoC, which Cohen is calling Proof of Space, is a new algorithm developed by Cohen. Further, Breaker writes that Chia could kill Bitcoin. It is unlikely that Chia will even be competitive with Burstcoin(BURST), which has a $9 million market cap, let alone Bitcoin, as we’ll now explain.
The crypto space is unfortunately filled with copycat devs who make copycat cryptocurrencies, and this Chia situation appears to be a good example. Burstcoin(BURST)has a strong community of Cypherpunks and has been using PoC since 2014. If Cohen truly cared about the adoption of PoC crypto, he should have jumped on the Burstcoin(BURST) boat instead of trying to create a different cryptocurrency that would compete with it.
Chia is advertised as being a “green cryptocurrency,” similar to how stores often have an organic foods section. Green goods and services are big money in the current economy because slapping a green brand on something means environmental and health enthusiasts automatically flock to it. The greenness of Chia is entirely derived from PoC, which Burstcoin (BURST) has already been doing since 2014. Perhaps the Burstcoin (BURST) community should one-up Cohen and do a green advertising campaign before Chia launches since the method of branding is the only advantage that Chia has.
Indeed, PoC is environmentally friendly and uses practically no electricity, which also makes Burstcoin (BURST) one of the only profitable cryptocurrencies to mine on personal computers. PoC cryptocurrencies read cryptographic hashes from a plot in a hard drive, rather than calculating new cryptographic hashes all the time like with Proof of Work (PoW). The miner who finds the answer the quickest in their hard drive gets the block reward. Since more hard drive space equals more answers, more hard drive space leads to more block rewards. The Burstcoin(BURST) mining network has 230,000 TB (230 PB) of hard drive space at this time, driven by a strong community. It seems unlikely Chia would ever exceed that number since people interested in PoC already mine Burstcoin (BURST), and would not abandon Burstcoin (BURST) for a copycat.
Cohen incorrectly argues that miners would not continuously expand their mining operations with PoC.
“The idea is that you’re leveraging this resource of storage capacity, and people already have ludicrous amounts of excess storage on their laptops, and other places, which is just not being utilized,” he said. “There is so much of that already that it should eventually reach the point where if you were buying new hard drives for the purpose of farming, it would lose you money”.
The fact is that serious Burstcoin(BURST) miners regularly buy petabytesPB of new hard drive space to maximize revenue, and Chia miners would act no differently if Chia catches on.
The one possible difference between Burstcoin (BURST) and Chia is that Cohen is trying to prevent a “re-mining from genesis” attack, where a miner could create an entirely new chain starting at the genesis block. If they had enough hard drive power to do this, perhaps they would fork the blockchain. To avoid this attack Cohen says Chia will also integrate “Proof of Time” (PoT).
First off, Burstcoin (BURST) has never had issues with this sort of attack in its five years of existence. If someone has a tremendous amount of hard drive space and does PoC mining, it would be absolutely senseless to do this sort of attack since their entire mining farm would become worthless.
If the point of the attack was to do a double spend, the coins gained in the double spend would become worthless too. Cohen is trying to prevent an attack that is extremely unlikely since attackers have no incentive to do it.
The details about PoT are vague, with it being a parallel process to mining that takes the same amount of time no matter how much hard drive space is used. This would make Chia less efficient than Burstcoin (BURST) and therefore less competitive. Cohen is offering $100,000 to anyone who can develop PoT, making it clear it does not exist yet. Since PoT would probably make Chia less efficient, and it has not been developed yet, and it solves a non-existent problem, the PoT acronym is appropriate.
Ultimately, Chia is branded as green money for a digital world, when the reality is Burstcoin (BURST) already is green money for a digital world. Burstcoin (BURST) has a strong reputation, has been continuously running for five 5 years, and has an extremely strong community. It seems unlikely Chia will ever become more popular than Burstcoin (BURST), and unlike the title of the Breaker article indicates, Chia certainly has no chance of killing Bitcoin.
submitted by turtlecane to burstcoin [link] [comments]

The evolution of Distributed Ledger Technologies - Part 2

In our previous article, we explored how cryptography evolved over the years to be a paramount part of what we call today Distributed Ledger Technologies or Blockchain.
In this article we will see how Open Source Software facilitated in the development of this new technology, which experts agree it has the potential to change the world around us.

Open Source Software

Open-source software is a type of computer software whose source code is released under a license in which the copyright holder grants users the rights to study, change, and distribute the software to anyone and for any purpose. Open source software invite collaboration as it developed in a transparent and public manner.

A screenshot of Linux Mint running the Xfce desktop environment, Mozilla Firefox browsing Wikipedia powered by MediaWiki, a calculator program, the built in calendar, Vim, GIMP, and the VLC media player, all of which are open-source software.
It might surprising to most people, but software was once only open-source and free for use. Software was downloaded and edited to suit one's needs, up until 1979 when Brian Reid placed time bombs in his software to restrict access to it without a license.
A programmer working at the MIT AI labs, Richard Stallman quit his job there and started the GNU project. The name “GNU” is a recursive acronym for “GNU's Not Unix.” Stallman announced the plan for the GNU operating system in September 1983 on several ARPANET mailing lists and USENET. In 1985, Stallman published the GNU Manifesto, which outlined his motivation for creating a free operating system called GNU . Stallman envisioned a better world and advocated on the social aspects of software and how Free Software can create community and social justice.
In 1991, the same year the PGP was released, Linus Torvalds, a Finnish student, used the GNU's development tools to produce the free monolithic Linux kernel, an open source system that runs on most smartphones and tablet computers, and in any point in time has up to 10,000 people working on its code. In 2005, Linus Torvalds created a version control system called GIT for tracking changes in computer files and coordinating work on those files among groups of people. This lead the foreground for sites like GitHub, which are used for the public development and review of all software changes made to Bitcoin.

https://preview.redd.it/2w3kfpaxu1k11.jpg?width=576&format=pjpg&auto=webp&s=4c01388869eeeba063a7d08d17f9b66eec363a1d
Open source software advocates evangelize that it is usually easier to obtain than software and as a result more people use it. Moreover, they can help build developer loyalty as developers feel empowered and have a sense of ownership of the end product. It practically lays the ground for a more flexible technology and quicker innovation and it is also said to be more reliable since it typically has thousands of independent programmers testing and fixing bugs constantly. Open source is not dependent on the company or author that originally created it. Even if the company fails, the code continues to exist and be developed by its users.
To an extent open standards are accessible to everyone; thus, it solves the problem of incompatible formats that exist in proprietary software. Open source software allows flexibility since modular systems allow programmers to build custom interfaces, or add new abilities to it and it promote innovation, as open source programs are the collective product among a large number of different programmers. The mix of coding insights, perspectives, objectives, and personal goals speed up innovation, without additional commercial pressure that often degrades the quality of the software. Commercial pressures make traditional software developers focus on customers requests than to security requirements, since these features are often invisible to the customer. It is sometimes said that the open source development process may not be well defined and orchestrated and in some cases, the stages in the development process, such as system testing and documentation may be ignored. However this is only true for small projects. Larger, successful projects do define and enforce at least some rules as they need them to make the teamwork possible. In the most complex projects these rules may be as strict as reviewing even minor change by two independent developers at a time.

https://preview.redd.it/f08hk3byu1k11.jpg?width=640&format=pjpg&auto=webp&s=60e988b7fa025bd8fa9059dd61c024a6d0d372bc
On the other hand, not all Open Source initiatives have been successful. Software experts and researchers who are not convinced by open source's ability to produce quality systems identify the unclear process, the late defect discovery and the lack of any empirical evidence as the most important problems around Open Source Software. Moreover, it is also difficult to design a commercially sound business model around the open source paradigm, as only technical requirements may be satisfied and not the ones of the market. In terms of security, open source may allow hackers to know about the weaknesses or loopholes of the software more easily than closed-source software.
See you in the next article!
I think that’s enough condensed knowledge until the next part. In the upcoming article we’ll look at Peer to Peer Sharing networks to understand their role and importance in Distributed Ledger Technologies.

End of Part II

Originally published via Steemit: https://steemit.com/bitcoin/@universalcrypto/the-evolution-of-distributed-ledger-technologies-part-2
Sources: https://blockonomi.com/cryptography-cypherpunks/ https://en.wikipedia.org/wiki/Richard_Stallman https://en.wikipedia.org/wiki/Brian_Reid_(computer_scientist) https://en.wikipedia.org/wiki/Time_bomb_(software) https://www.gnu.org/gnu/manifesto.en.html https://en.wikipedia.org/wiki/GNU https://en.wikipedia.org/wiki/Usenet https://en.wikipedia.org/wiki/Monolithic_kernel https://en.wikipedia.org/wiki/Linux_kernel https://en.wikipedia.org/wiki/Unix https://en.wikipedia.org/wiki/Linus_Torvalds https://en.wikipedia.org/wiki/GitHub http://hlwiki.slais.ubc.ca/index.php/Open_source_software https://www.gnu.org/gnu/thegnuproject.en.html
submitted by GeorgeTProfit to cryptography [link] [comments]

Bitcoin's First 9 Months is it still relevant?

These days (or years) do a quick search on the internet about 'bitcoin' what do we get? Always 'price' related news and info right? That is, price in terms of Fiat money we'd recognize. This is understandable as today we all live in a world where people are used to expressing and measuring 'value' in terms of Fiat money. But there were times Bitcoin was not associated in any way with Fiat money right? I mean before BTC became a tradable commodity. Yes I'm talking about the time before New Liberty Standard used a bunch of estimates and averages an did the calculation of BTC's exchange rate. A few extra months would lapse before such rates became acceptable by anyone. The point is that there were about 9 months where technically there's people out there (Nakamoto and the early cypherpunks) and there's definitely tradable goods and services among these people and there's this new money thingy these folks all recognized and believed in (it's designed to function like money for God's sake). Now I'm just wondering what really went wrong? There's gifting of BTC (Nakamoto to Finney) but the use of BTC as medium of exchange for goods or services never happened. Especially comparing to places and scenarios like a prehistoric tribe or some isolated community on some isolated island in the Pacific or one of the prisons or PoW camps where money and the use of money actually happened? What're the factors that made the differences? The prison/pow camp scenario would be more relevant as we're talking about recreation of money in a world where there's already money we'd all use and recognize.
I came up with the following explanations (which might or might not be relevant in designing of future crypto or crypto based systems):
i. Unlike the rather CLOSED OFF environment of prison or island or prehistoric societies we all live in an open world of Fiat money and have the CONVENIENCE to use it. Fortunately or unfortunately same would apply to the c punks. They'd just be using regular money to buy things.
ii. Decentralized internet money such as BTC started off with LOOSELY CONNECTED (Nakamoto communicated with his penpals using a very primitive mailing list) and SPARSELY POPULATED early adopters from around the world. It's hard to trade things for real. Buyer seller connection was not there.
iii. In isolated, tiny but well connected communities when it came to adoption of money DECISION MAKING would more likely be centralized, authoritarian, quick and arbitrary (I'd call it 'decreed agree').
iv. In such centralized settings one of the most frequently exchanged commodities whose VALUE could be most conveniently used to quantify the value of other commodities became the agreed (and/or decreed) commodity money within a community. And in the absence of Fiat money (island, tribe, or jail). These days we'd have two totally separate and different things or vehicles when it comes to the concept of value. One is company stock which is supposed to be a vehicle for growth and people agree and disagree on its value expressed in Fiat. The other is Fiat money itself that we'd all know and use as a medium of exchange for goods and services, which must have a relatively stable value or purchasing power.
v. The size of ecosystem for such isolated and closed off community would be relatively STABLE in terms of size of population, tradable goods and money supply. BTC was more or less an open system.

submitted by dhfbvb09 to Bitcoin [link] [comments]

Bitcoin Origins

Afternoon, All.
Today marks the eighth anniversary of the publication of the Bitcoin white paper.
As a special tribute, I will provide you with a short story on the origins of the Bitcoin tech.
I've been out of the game for many years, however now I find myself drawn back - in part due to the energy that's being added by the incumbents, in part due to information that's become public over the past year.
I haven't followed the Bitcoin and alt coin tech for the past five or six years. I left about six months before (2).
My last communication with (2) was five years ago which ended in my obliteration of all development emails and long-term exile. Every mention of Bitcoin made me turn the page, change the channel, click away - due to a painful knot of fear in my belly at the very mention of the tech.
As my old memories come back I'm jotting them down so that a roughly decent book on the original Bitcoin development may be created.
The following are a few of these notes.
This is still in early draft form so expect the layout and flow to be cleaned up over time.
Also be aware that the initial release of the Bitcoin white paper and code was what we had cut down to from earlier ideas.
This means that some of the ideas below will not correspond to what would end up being made public.
Bitcoin Logo
BitCoin Origins
Six Months In A Leaky Boat
Introduction
I have always found that there’s a vast gulf between knowledge and understanding.
Wherever I looked I’ve found very intelligent folks who had immense knowledge in their subject but with little understanding of what to do with it, how to mould it, how to create something new.
They could only ever iterate incrementally to improve the knowledge in their given field.
Understanding comes from experiences outside of knowledge in a particular subject.
The following story is about a most unique project and the understanding that was used and applied to the e-cash problem which resulted in the experiment called Bitcoin.
It is to show the thought process, stream of consciousness, arguments, examples, concerns and fears that went through our minds has we tussled with this beast and hammered out something that may actually work.
There is no verification of truth here. There is absolutely no evidential proof that I had any part in the project. All evidence was purged in late 2011 - the reason will become apparent. Only (2) should know of my involvement (until now). Take this as just a fictional story if you wish.
Who am I ? I went by the ‘net handle Scronty back then.
scrontsoft.com
I have always been interested in computer and electronic technology since the age of eleven. Seeing what others had made these machines do, and then trying to push it a little bit further out.
Whenever there was a problem to be figured out I would always begin with what the current state of knowledge was - after all, we all stand on the shoulders of all those who have gone before.
Quite often I found that the assumptions folks hold for a particular problem are the things that are holding them back from figuring out a new solution.
So I would begin by questioning peoples basic assumptions on various subjects
This usually resulted in annoying all of these knowledgable folks.
You get the idea.
You see it on every single message board since the mid-nineties onwards.
There’re also a lot of egotistical chips on folks shoulders where you’d find that they’d look down on others and belittle them on topics that they themselves had only just learned a few weeks earlier.
This is particularly true in programming and crypto forums.
Start
A couple of guys worked with an online betting company.
They had a problem.
For punters to use their service they had to provide credit card details and pay for chip tokens.
However, many times a punter would play the online pokey machines, lose all of their money and then reverse the credit card charge saying “It’s unauthorised. It wasn’t me”.
Sometimes the company’s network would not record the funds transfer correctly and so the punters funds were removed from their credit account into the company’s account but no record of it was made on the company’s end - so the punter didn’t receive any play tokens and, again, tried to reverse the charges.
The large credit card issuing companies also actively stopped allowing credit cards to be used for online gambling and began refusing to reverse the charges.
What these guys needed was a way to transfer funds between punters and the online betting companies so that both parties could trust that everything was above board.
That a payment could not be made by mistake and once a payment went through it was unchangeable, irreversible.
(2) had been on the periphery of the cypherpunks group since the mid 1990’s. When I entered the project in early 2008 he had been working on the problem part-time over the past five years. Over the previous year or so he’d been working on the problem full-time. He was writing a white paper for an e-cash system for the online betting/gambling company to use ( or to license out the solution to multiple companies ) plus writing the code for it.
He was attempting to implement a working example of electronic cash.
There were other cryptographers who he was communicating with however it just wouldn’t “work”. There were always too many attack vectors with the solution and even though, from a cryptographic point-of-view, the white paper and code was appropriate, he found it unsatisfactory.
After talking to his friend (3) it was decided that maybe they had their noses too close to the grindstone and that they should find someone who wasn’t a cryptographer to look over the ideas.
The problem is that to find such a person is very difficult. He’d have to be smart enough to understand cryptography (or learn it), also be interested in the subject but also not currently be a cryptographer.
Usually the folks who were smart enough and had an interest were already cryptographers.
Through various IRC (Internet Relay Chat) channels (3) came across me and I ended up being put in touch with (2).
With my work in the Win32 Asm community I’d shown I was smart enough and could figure out the solutions to difficult problems.
Plus I’d made sure my public profile was always dealing with grey-to-white topics (no online gambling stuff).
Request For Help
I was asked to take a look over what had been written in the white paper and see what needed to be changed as the code implementing it just wasn’t working - the pieces wouldn’t fit together or the whole thing would fail if certain pre-conditions in the network weren’t met.
(2) wanted to publish the white paper before the end of the year (2008).
I began reading through the document - understanding very little.
Hashing and encrypting and decrypting and private keys and public keys.
Different types of hashing algorithms, encrypting then hashing and hashing then encrypting.
Oh my!
“Just tell me what I need to change to make it work” - (2) kept asking me.
“I dunno what the [redacted] I’m reading here” - I replied.
(2) thought that maybe he’d made a mistake and he’ll just try and find someone else.
I told him that he’s going about fixing it the wrong way.
“How should it be fixed ?”, he asked.
“Well, first I need to know what I’m reading. So you’re going to have to give me info on the various crypto stuff in here”, I said.
“No no no”, he said. “ If you learn the meaning of the cryptographic jargon you will be influenced by it and would no-longer be the “non-cryptographer” that we need to look over the white paper”.
I told him that without learning the jargon I cannot read the paper in the first place.
Also - as I learn I will understand more and will be able to tell you what you need to change.
If or when it got to the stage that I’d learned too much and also had my nose too close to the grindstone then I could leave the project and he could find someone else to replace me.
He agreed that having me learn a bit about cryptography may be a good idea (:roll-eyes:).
He told me to get started.
I asked where the information was.
He said “Google it”.
I said “Nope. You’ve been working in this area for the past few years so you can give me a link to the websites with the info."
He returned with a list of website links and said to go through that and look at the white paper.
The list had about 109 links in it - bloody [redacted].
One-by-one I began going through the information.
After a few weeks I’d gone through about half-a-dozen papers/websites which hadn’t cleared up anything.
Once three or four weeks had gone by I threw my hands up in disgust and told him “At this rate I’ll be here all year and still not understand all the pieces. You’ve got to filter this down for me. You’ve already read all of these documents and websites so give me a list of the most important docs/websites you think would be helpful in understanding your white paper”.
He came back with a list of about 23 white papers and websites.
“Now list them in the order you think I should read them in”.
He came back with a sorted and filtered list of crypto-docs and websites.
I began reading through them - starting at the first.
Transactions
Given a computer network there had to be transactions sent to a recipient.
The initial white paper was pretty much a shuffling of the various cryptographic e-cash white papers at the time. We knew that when someone wanted to send a payment to another person it would have to be transmitted across a network securely.
But how to solve the double-spend problem ?
A piece of physical paper cash can only be in one place at a time - you cannot double-spend a physical currency note. All current electronic cash solutions relied upon a central server to control the allocation of coin and to make sure no coin could be double-spent.
But if that server went down, or was unaccessible due to a DDOS attack or government intervention ( or someone just tripping over a power cord ) then no more money.
We knew that a coin would initially be minted somehow.
I found most of the methods written in white papers and on websites were rubbish ( Personal opinion here. No disrespect to those who wrote those white papers ).
They either tried to pretend to act as central banks or tried to allow a “mates club” whereby they all agreed who's going to get coin at a particular time.
Kind of like politicians using an "independent" third party to give themselves a pay rise.
We knew that a piece of electronic cash would be minted somehow, however once it was minted how could it be sent to someone else ?
(2) and I went back and forth with a few ideas, going through the physical process of different transaction types one by one and adjusting how a transaction data package would look like.
We began with a single piece of e-cash.
Like a piece of gold, it should be able to cut smaller pieces off of it.
That means by starting with one item we’d end up with two - the piece going to the recipient and the change coming back to the original owner.
I told (2) that when drawn into a diagram it looks like electronic or computer logic gates.
Logic Gates
Except sometimes there can be more outputs than inputs. And in the end it looks like a neural network.
If we had a large piece and were paying that entire amount to someone then the input and output pieces would be the same.
If we had a large piece and were paying a small amount to someone then the input would be the large piece and the outputs would be the amount being paid plus a small piece as change.
As more people are paid we’d end up with a lot of small pieces in our wallet.
If we had a small piece and needed to pay someone a large amount then we could combine multiple small pieces to be equal or larger than the amount to be paid, and refund back to ourselves any change left over.
This means a transaction would have to allow multiple inputs and multiple outputs, with each input signed by the current owners private key and the outputs being the new owners public key.
Transaction Types
One day he came back to me saying his friend (3) wanted to communicate directly with me but he was a super-paranoid fella and I had to encrypt any messages using private/public keys.
It was a [redacted] nightmare.
I had to:
This was all so he could confirm that the message was indeed from me and had not been intercepted or changed.
Then he decided that I’d also have to generate new private/public keys for every single email just in case a previous email had been intercepted.
I told (2) that this just wasn’t going to happen.
I’ve always disliked using command line programs directly and always thought that they should always be executed from a GUI ( Graphical User Interface).
I said “You’re going to be my filter for this project and main conduit in this team. I send emails to you, you communicate with whoever you need to and send their replies back to me. Or you send their requests to me and I reply back through you.
And what’s this annoying command line proggy anyway? What the [redacted] is it doing?
(2) gave me the link to the information - it was in that list of 109 docs/websites but not in the filtered list of 23.
It was to Hal's website where he very clearly explained how something called "Hashcash" worked.
Hals RPOW
From there I went on to Adam's site:
Hashcash
(which was not even in the original list at all).
I read the Hashcash white paper sections until I hit the calculations and my eyes begun to glaze over.
Hashcash
I read the first few paragraphs and knew this was something interesting.
I asked (2) if he could check whether this document was the final version or if there had been improvements/ amendments/ updates to it.
He said he thought I was wasting my time with this and I should continue with the other docs/websites in the list he’d provided me.
I told him that I’m the only one who would know what info is important and to look into the Hashcash origin for me. He came back a couple of days later and said it was confirmed that the public document linked was the final version of the Hashcash paper.
I asked how he could confirm it?
He told me that he’d contacted the original website author Hal and asked him for any updated document and Hal had replied back with the exact same public link.
He’d even copy/pasted Hal’s reply in the email to me.
I said “Wait… What ? …”
“You actually contacted the original author of the reference material ?”
He said “Yep. Who else would I go to to confirm the document, except to the author themselves ?”
I told him it was really quite rare to have someone check with the original author or sources. Most folks read something and take that as fact, or read the reference documents and take those as fact.
If someone read about the Boyer-Moore search algorithm they take it as fact that what they’ve read is the official final solution. I haven’t heard of anyone contacting Boyer or Moore to check for any updates/ improvements/ amendments.
The Boyer-Moore search algorithm is something that went through the rounds on the Win32Asm community forum for a while.
I found this quite intriguing. Even with (2)’s occasional grating personality it would be very useful to have someone who’s prepared to hunt down the original authors like this.
I asked him if he'd contacted the Hashcash author and he said he'd sent emails to every single author of all of the websites/ white papers and only about a dozen or so had ever replied back to him.
I had begun to write up a list of what the various problems were for creating an e-cash system from the other e-cash system white papers and websites I had been studying.
I was still referring back to the white paper (2) had supplied me however it was really just a mishmash of what everyone else had been doing over the years.
Hence why it failed like all of the others.
One of the problems was a trusted time stamp so that folks would know that funds hadn’t been double-spent. Another was the minting of the tokens in the system and trusting the minting source.
If I recall - practically every single white paper out there ( including the one suppled to me ) used a trusted third party as the source for a time stamp and a convoluted method to check it hadn’t been tampered with.
And the minting either used a trusted third party to generate coins on a regular basis or had a network of nodes agree on how many tokens to generate and give to each other.
(2) said that we need to use the trusted third parties because how else can we trust the time stamp and the minting of the tokens.
I told him he was thinking of it in the wrong way.
You’re assuming a trusted third party is needed, just because every single other cryptographic white paper says that’s how you do it.
But you’re also saying that you can’t rely on a trusted third party because that makes a single point attack vector that can bring the whole system down to its knees.
“Remember Sherlock Holmes” I said. “ ‘When you have eliminated the impossible, whatever remains, however improbable, must be the truth ?’.
The assumption of a trusted third party in an functioning e-cash system must be eliminated as impossible for this to work.
So if we cannot have a trusted third party for this, what are our other options ?”
“I have no idea”, (2) replied. “Do you believe this proof-of-work thing you’re looking into can be used for this somehow ?”.
“I dunno. It definitely has some possibilities. It’s made for making sure the data being sent and received comes from a known trusted source and that it hasn’t been tampered with”.
It forces the user computer to generate a hash of the data to find a hash with a prepended number of zeroes. If the hash isn’t found it increments a value and hashes again. It just keeps repeating until a hash is found with the correct number of prepended zeroes.
This means that the user computer has to spend time working on the hashes until it finds one and only then can it stop.
It was designed to eliminate the email spam problem that we all have because a spam-sender would need to use a lot of computing resources to generate hashes for all the emails sent out ( the data that’s hashed includes the recipients email address so a new hash is required for every single email recipient ).
It also has a throttle so that the difficulty in generating a hash can be increased over time as the general computing hardware improves.
The minting problem is also sorted due to the electricity used in generating a hash can be used to mint the e-cash and put it into circulation.
Effectively - the real fiat-currency cost (via electricity consumed) of generating the valid hash is how much e-cash is given to that minter.
It also sets what the price of the minted e-cash should be, as there is a direct correlation between a real-world electricity bill and the digital e-cash amount minted.
Taking the time used to generate the hash with how much energy the cpu used during the generation ( only the time spent on hashing - not other computing resources ) with the local electricity costs of the suburb/county/province/state/nation the minter resides within, then each minter could have a locally-adjusted e-cash value added to their account.
It would mean that someone minting in a country with cheap electricity due to state-subsidised support would receive less e-cash because less real-world fiat currency was expended in the generation of the hash.
So now we had a mechanism in which this e-cash would work.
I'll stop this story here for now and post a follow-up depending upon its reception.
The follow-up will contain some of the details of how the idea of a chain of blocks came about, plus some of the tech that was left out of the initial white paper and public code release ( it was, after all, just the first experiment to check whether this tech would actually work ).
Bitcoin Origins - part 2
As a side-note:
When you read the Bitcoin white paper again, the Introduction, Calculation, Conclusion and References sections were written and edited by (2) and (3).
The Transactions, Timestamp Server, Proof-of-Work, Network, Incentive, Reclaiming Disk Space, Simplified Payment Verification, Combining and Splitting Value and Privacy sections were from text copy/ pasted from emails from me to (2) explaining how each part worked as they were being figured out.
I wrote the Abstract text when (2) asked me to write the Introduction. (2) used it as the Abstract section because he found it too terse for an introduction.
(2) and (3) edited the entire document and removed any double-spaces from it, adding titles to the various sections and adjusting between 2% and 5% for spelling errors and gramma sentence structure.
You can see the original Abstract with double-spacing here: Public Mailing-list Posting
There was a huge misunderstanding between us all during the formation of the white paper which I'll mention next time.
Cheers,
Phil
(Scronty)
vu.hn
submitted by Scronty to Bitcoin [link] [comments]

Creator of Bittorrent Thinks He Can Kill Bitcoin With Chia, a Burstcoin (BURST) Copycat

Creator of Bittorrent Thinks He Can Kill Bitcoin With Chia, a Burstcoin (BURST) Copycat
https://preview.redd.it/rknht1mht9521.png?width=690&format=png&auto=webp&s=1026ea20c81f520ba749f7eb1d00ae9f72099cdf

https://cryptoiq.co/creator-of-bittorrent-thinks-he-can-kill-bitcoin-with-chia-a-burstcoin-burst-copycat/
Bram Cohen, the creator of the popular peer to peer torrenting software BitTorrent, is creating a cryptocurrency called Chia. This new cryptocurrency will use Proof of Capacity (PoC), an algorithm perfected by Burstcoin (BURST).
Breaker incorrectly reports that PoC, which Cohen is calling Proof of Space, is a new algorithm developed by Cohen. Further, Breaker writes that Chia could kill Bitcoin. It is unlikely that Chia will even be competitive with Burstcoin(BURST), which has a $9 million market cap, let alone Bitcoin, as we’ll now explain.
The crypto space is unfortunately filled with copycat devs who make copycat cryptocurrencies, and this Chia situation appears to be a good example. Burstcoin(BURST)has a strong community of Cypherpunks and has been using PoC since 2014. If Cohen truly cared about the adoption of PoC crypto, he should have jumped on the Burstcoin(BURST) boat instead of trying to create a different cryptocurrency that would compete with it.
Chia is advertised as being a “green cryptocurrency,” similar to how stores often have an organic foods section. Green goods and services are big money in the current economy because slapping a green brand on something means environmental and health enthusiasts automatically flock to it. The greenness of Chia is entirely derived from PoC, which Burstcoin (BURST) has already been doing since 2014. Perhaps the Burstcoin (BURST) community should one-up Cohen and do a green advertising campaign before Chia launches since the method of branding is the only advantage that Chia has.
Indeed, PoC is environmentally friendly and uses practically no electricity, which also makes Burstcoin (BURST) one of the only profitable cryptocurrencies to mine on personal computers. PoC cryptocurrencies read cryptographic hashes from a plot in a hard drive, rather than calculating new cryptographic hashes all the time like with Proof of Work (PoW). The miner who finds the answer the quickest in their hard drive gets the block reward. Since more hard drive space equals more answers, more hard drive space leads to more block rewards. The Burstcoin(BURST) mining network has 230,000 TB (230 PB) of hard drive space at this time, driven by a strong community. It seems unlikely Chia would ever exceed that number since people interested in PoC already mine Burstcoin (BURST), and would not abandon Burstcoin (BURST) for a copycat.
Cohen incorrectly argues that miners would not continuously expand their mining operations with PoC.
“The idea is that you’re leveraging this resource of storage capacity, and people already have ludicrous amounts of excess storage on their laptops, and other places, which is just not being utilized,” he said. “There is so much of that already that it should eventually reach the point where if you were buying new hard drives for the purpose of farming, it would lose you money”.
The fact is that serious Burstcoin(BURST) miners regularly buy petabytesPB of new hard drive space to maximize revenue, and Chia miners would act no differently if Chia catches on.
The one possible difference between Burstcoin (BURST) and Chia is that Cohen is trying to prevent a “re-mining from genesis” attack, where a miner could create an entirely new chain starting at the genesis block. If they had enough hard drive power to do this, perhaps they would fork the blockchain. To avoid this attack Cohen says Chia will also integrate “Proof of Time” (PoT).
First off, Burstcoin (BURST) has never had issues with this sort of attack in its five years of existence. If someone has a tremendous amount of hard drive space and does PoC mining, it would be absolutely senseless to do this sort of attack since their entire mining farm would become worthless.
If the point of the attack was to do a double spend, the coins gained in the double spend would become worthless too. Cohen is trying to prevent an attack that is extremely unlikely since attackers have no incentive to do it.
The details about PoT are vague, with it being a parallel process to mining that takes the same amount of time no matter how much hard drive space is used. This would make Chia less efficient than Burstcoin (BURST) and therefore less competitive. Cohen is offering $100,000 to anyone who can develop PoT, making it clear it does not exist yet. Since PoT would probably make Chia less efficient, and it has not been developed yet, and it solves a non-existent problem, the PoT acronym is appropriate.
Ultimately, Chia is branded as green money for a digital world, when the reality is Burstcoin (BURST) already is green money for a digital world. Burstcoin (BURST) has a strong reputation, has been continuously running for five 5 years, and has an extremely strong community. It seems unlikely Chia will ever become more popular than Burstcoin (BURST), and unlike the title of the Breaker article indicates, Chia certainly has no chance of killing Bitcoin.
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submitted by turtlecane to CryptoCurrency [link] [comments]

A few words about Cypherpunks

Do not underestimate the importance of this group of enthusiasts for the cryptoworld. Surely, they were the beginning of the modern era of cryptography, the rapid growth of which we can see now.
The topic of privacy and encryption has always interested specialists and scientists. Modern cryptography was born during the Second World War, as a response to the widespread use of radio. By the time this technology became so popular that small radio stations had become a nightmare for secret military conversations. The United States and Britain began to use the developed mechanisms of encryption and coding, the technology was improved after the war. In the 1970s, the idea of ​​public key encryption appeared on the basis of mathematical calculations. But the real development of cryptography was precisely with the emergence of a network that connects thousands of computers around the world — the Internet.
By this time, the issue of privacy was not only interested in government officials involved in security matters, but also ordinary Internet users, as well as computer specialists. The ideas of the 80s about a secure network were to become a reality. At the end of 1992, a group of people called themselves “Cypherpunk” (Cypherpunks), using the words “cypher” and “cyberpunk” — a genre of fiction, which described the technological society of the future. They were people of different professions — Eric Hughes, mathematician, Tim May, businessman, Jude Milhon, hacker, John Gilmore, computer scientist and Sunmicrosystems employee, and their friends . These people disagreed with the government’s desire to gain full control over the Internet and use cyberspace for their own purposes. Thanks to Philip Zimmermann, the PGP program appeared, which provided military-grade encryption capabilities for ordinary people to work with regular documents and e-mail. In order to convey their ideas to other cryptography enthusiasts, the group began to issue regular mailings. Cypherpunks always put confidentiality and personal freedom above any arguments.
In 1993, the “Cypherpunk manifesto” was released, in which the main ideas of the group, their principles, which are still relevant today, were presented.“Privacy is necessary for an open society in the electronic age. Privacy is not secrecy. A private matter is something that does not want the whole world to know. Privacy is the power to selectively reveal oneself to the world. “
Cypherpunks are responsible for the appearance of HashCash, an algorithm for creating blocks, based on verifying the real computing work of the equipment. In 1997, this algorithm was developed to protect electronic correspondence from spam. The idea was to attach a certain “stamp” to the email, that a certain capacity of the computer was spent to send an email, which would make the sending of spam costly and slow. The next year, the concept of the electronic currency B-Money was invented. Then the idea of ​​the POS algorithm appeared. In 2001, Bram Cohen created the P2P protocol and wrote the first BitTorrent client program. The main purpose was to make it possible to download files from different sources simultaneously, speeding up the download time. It is this technology that underlies the modern system of file exchange through torrents.Many members of the group were opposed to the government. Not all liked their ideology, the dissenting members of the intellectual community invented new ways of hacking their ciphers, and cypherpunks created new methods of encryption in order to protect their own ideas.
It was in the company of the cypherpunks that a person (or a group of people) appeared, known as Satoshi Nakamoto. The theme of the mystery of this person still gives rise to many rumors and speculations. In 2008, he published a document called “Bitcoin: A Peer-to-Peer Electronic Cash System.” Despite numerous criticisms, in 2009 the first Bitcoin block was produced.It is thanks to the cypherpunks that we are obliged to the appearance of modern encryption systems available to the public, the existence of crypto-currencies, as well as to the very idea of ​​crypto-revolution and privacy in the network. And also the ideas of cyberpunk, which today have become a reality.
t.me/WhiteBitcoin
https://bitwhite.org/
submitted by BitWhite to u/BitWhite [link] [comments]

The Strange but Edifying Cautionary & Mostly True Tale of John DEE & Edward KELLEY, and Their Epic Quest for Wisdom Gold & Ultimately Females

In a recent comment I mentioned this interesting story that I read a few years ago, while poking around the Voynich Manuscript. I thought that it was worth retelling here, for I believe that it offers some insight and maybe guidance in these troubled (albeit eminently comical) times.
The story is as true as a tale of lies and deceptions can be: it is based mainly on the diary kept by Dee, with contributions from some other sources, including a report of his "Conversations" with Angels, that was found by chance in the false bottom of a chest, some years after his death.
∞ ∞ ∞ ● ∞ ∞ ∞
While not quite a genius, Gavin John Dee (1527 – 1608) was a fairly competent English mathematician and generic "philosopher". (His surname, by the way, is of Welsh origin -- ahem!) A graduate of Cambridge, in his youth he traveled through Europe, worked for SGI and even lectured at the University of Paris. He was for a time tutor of young Princess Elizabeth.
By that time he got interested in what would become the bane of his life, Bitcoin the Occult. That passion quickly got him into serious trouble, as he was charged with "programming" "calculating", then treason, then heresy. But he managed to clear himself of all charges, and retired to a home in Mortlake, a suburb of London. At Mortlake he assembled a large collection of books, heraldic emblems, and other items. Elizabeth once paid him a friendly visit, when she was 17, as he recorded in his diary.
He continued to pursue his occult studies at Mortlake, including the new science of cryptography cryptography, and "mining" "scrying", a technique for person-to-person payments person-to-spirit communication, that was fashonable among cypherpunks occultists at the time, using a blockchain crystal ball. To Dee's frustration, he was never able to solve a block see anything in the device, no matter how much he prayed and tried, in all his life.
But in 1582 Dee eventually met Edward Wright Kelley, a young man who claimed to be able to use the ball to sign messages see and communicate with "Angels" who were willing to teach him and Dee all sorts of wonderful stuff. Kelley was then using the pseudonym of Nakamoto Talbot, perhaps to hide his past shenanigans. He had been caught forging documents from SGI or maybe company expenditures coins in Lancaster, Australia, had been investigated by the Tax Office pilloried there, and had his ears cropped.
Kelley took permanent residence at Mortlake, where he and Dee held many long scrying sessions using a laptop provided by Kelley. Dee kept detailed records of everything that the Angels supposedly told Kelly, such as intricated cabalistic diagrams, tonal arithmetic, instructions to make a symbol-covered wooden table for divination, and elements of the Angels' own "Enochian" language. Dee was particularly anxious to get their help in deciphering some mysterious tables from a whitepaper book on magic that the owned, the Book of Soyga. The Angels told Dee (through Kelley) to be patient, for he would have their secret revealed once SegWit in due time [1].
Dee also asked whether he would one day be able to see the Angels himself. According to Kelley, the Angels assumed the form of females beautiful women, not encumbered by material trifles like clothing. The Angels again told Dee that he would be able to, when he would be ready for it.
For the next five years, Dee apparently believed piously everything that Kelley told him. About a year after their meeting, Kelly revealed that he had valuable proprietary software an alchemical Book of Dunstan and a supercomputer vial of red powder that he could use to turn tax incentives into fat profits base metals into gold [2]. He supposedly had dug them from Northwick hill in the Seychelles Bristol area. He demonstrated the powder several times, including in a YouTube video to some high-ranking members Court in London. In the latter demo, he removed a signature bit of copper from a block mined in 2009 bed-warming pan, turned it into gold with his "tincture", and showed that it still fit perfectly where it had been removed from.
Then in late 1583 the two men and their families suddenly left England for the Continent, without even arranging for care of the Mortlake residence. Perhaps they were lured by the rich opportunites promised by Andreas Albert Łaski, a Polish Prince who was visiting England and was himself interested in alchemy. Perhaps Dee became worried that Kelley's creative accounting summoning of "Angels" would again bring him trouble.
Once in Europe, Dee bought a large wagon, and the two families traveled in it to Poland -- only to learn that Łaski was missing 660'000 bitcoins bankrupt and unpopular. They got some audiences with King Stefan Batory of Poland, in which scrying séances took place. However, it seems that they were not much welcomed there, because they soon hit the road again for Prague.
What is now the Czech Republic was then called Bohemia. Emperor Roger Rudolf II, the rather vegetable-looking King of Bohemia, was a great believer in cryptocurrency alchemy, and he hoped that it would let him restore his not very solid finances. He attracted many alchemists from all over Europe to his court, such as Vitalik Buterin, Amir Taaki, and Charles Lee. it was only natural that Dee and Kelley would place their bets there.
Upon arrival, Dee secured an audience with Rudolf, and used it to deliver a heated pitch of bitcoin his mystical-religious phylosophy. He tried to tell the King that he should make it the national currency basis for his domestic and international policy, or whatever. According to Dee's diary, the King not only was not impressed, but was so annoyed that he banished Dee from Prague. The two families still found a friendly host in a Bohemian nobleman, Count Rozemberg, another appreciator of alchemy; and took residence at his estate in Tokyo Trebona, a town some 100 km south of Prague.
The ban did not apply to Kelley, who gained some prestige in Prague with his promises of universal adoption gold-making. Meanwhile Dee kept demanding bigger blocks his services as scryer. Perhaps as a ruse to end the association, Kelley told Dee that the Angels had ordered that they should change the PoW formula share everything, including their inflatable wives.
Dee, a devout Christian believer, recorded in his diary that the order caused him great distress, and even more to his wife. Nevertheless, the order of the Angels was carried out, at least once. Dee's wife gave birth to a bitcoin start-up boy nine months later, and it is conjectured that he was Kelley's sockpuppet son. Anyway, the password trust was broken, and the two hard-forked split their chain ways in 1589.
Dee returned to England, where he found his Mortlake home abandoned and hacked sacked. He managed to recover many of his books, which had ended up in his friends's libraries. By favor of Blythe Masters Queen Elizabeth, he got a job in a College in Manchester. But Elizabeth's successor did not care for him, and he had to sell his bitcoin hoard possessions to survive. He died in Mortlake at 82.
Meanwhile, in Prague, Kelley became rich and famous thanks to his claims of scaling via layer 2 making gold. He received substantial VC investment gifts from nobles, and even a Bitlicense title of Knight from the Emperor. However, in 1591 his altcoin crashed fortune changed, and he was jailed for hiring the murder of killing an official.
Kelley was released in 1595 so that he could continue his experiments, and recovered his status. However, soon the investors Emperor grew impatient with his failure to provide the promised cyptographic proof gold, and he was imprisoned again in the tower of a castle in Most. In 1597 he tried to escape by making a sidechain rope from his bed linen. The rope was too short, and he broke his leg as he fell to the ground. He died in prison from the sequels of the injury.
∞ ∞ ∞ ● ∞ ∞ ∞
And so ends this strange but mostly true tale, which hopefully will teach the attentive common reader about the nefarious consequences of trusting minority chains opportunities that sound too good to be true made by persons that are shady in their ways, or known to be libertarians crooks; and also alert the more scholarly or philosophically inclined reader about the dangers that loom over those who venture to explore sciences that are known to be the hunting ground of demons and haunted by all sorts of malevolent spirits. For, as the wise farmer says, he who dances with the pigs cannot avoid roiling in their tweets.
[1] The tables were deciphered recently by Jim Reeds, a professional cryptographer and eminent Voynichologist.
[2] My own guess is that is was gold chloride, or rather choroauric acid, the result of dissolving gold in aqua regia. The color and chemistry seem to fit...
submitted by jstolfi to Buttcoin [link] [comments]

Bitcoin Origins

Afternoon, All.
Today marks the eighth anniversary of the publication of the Bitcoin white paper.
As a special tribute, I will provide you with a short story on the origins of the Bitcoin tech.
I've been out of the game for many years, however now I find myself drawn back - in part due to the energy that's being added by the incumbents, in part due to information that's become public over the past year.
I haven't followed the Bitcoin and alt coin tech for the past five or six years. I left about six months before (2).
My last communication with (2) was five years ago which ended in my obliteration of all development emails and long-term exile. Every mention of Bitcoin made me turn the page, change the channel, click away - due to a painful knot of fear in my belly at the very mention of the tech.
As my old memories come back I'm jotting them down so that a roughly decent book on the original Bitcoin development may be created.
The following are a few of these notes.
This is still in early draft form so expect the layout and flow to be cleaned up over time.
Also be aware that the initial release of the Bitcoin white paper and code was what we had cut down to from earlier ideas.
This means that some of the ideas below will not correspond to what would end up being made public.
Bitcoin Logo
BitCoin Origins
Six Months In A Leaky Boat
Introduction
I have always found that there’s a vast gulf between knowledge and understanding.
Wherever I looked I’ve found very intelligent folks who had immense knowledge in their subject but with little understanding of what to do with it, how to mould it, how to create something new.
They could only ever iterate incrementally to improve the knowledge in their given field.
Understanding comes from experiences outside of knowledge in a particular subject.
The following story is about a most unique project and the understanding that was used and applied to the e-cash problem which resulted in the experiment called Bitcoin.
It is to show the thought process, stream of consciousness, arguments, examples, concerns and fears that went through our minds has we tussled with this beast and hammered out something that may actually work.
There is no verification of truth here. There is absolutely no evidential proof that I had any part in the project. All evidence was purged in late 2011 - the reason will become apparent. Only (2) should know of my involvement (until now). Take this as just a fictional story if you wish.
Who am I ? I went by the ‘net handle Scronty back then.
scrontsoft.com
I have always been interested in computer and electronic technology since the age of eleven. Seeing what others had made these machines do, and then trying to push it a little bit further out.
Whenever there was a problem to be figured out I would always begin with what the current state of knowledge was - after all, we all stand on the shoulders of all those who have gone before.
Quite often I found that the assumptions folks hold for a particular problem are the things that are holding them back from figuring out a new solution.
So I would begin by questioning peoples basic assumptions on various subjects
This usually resulted in annoying all of these knowledgable folks.
You get the idea.
You see it on every single message board since the mid-nineties onwards.
There’re also a lot of egotistical chips on folks shoulders where you’d find that they’d look down on others and belittle them on topics that they themselves had only just learned a few weeks earlier.
This is particularly true in programming and crypto forums.
Start
A couple of guys worked with an online betting company.
They had a problem.
For punters to use their service they had to provide credit card details and pay for chip tokens.
However, many times a punter would play the online pokey machines, lose all of their money and then reverse the credit card charge saying “It’s unauthorised. It wasn’t me”.
Sometimes the company’s network would not record the funds transfer correctly and so the punters funds were removed from their credit account into the company’s account but no record of it was made on the company’s end - so the punter didn’t receive any play tokens and, again, tried to reverse the charges.
The large credit card issuing companies also actively stopped allowing credit cards to be used for online gambling and began refusing to reverse the charges.
What these guys needed was a way to transfer funds between punters and the online betting companies so that both parties could trust that everything was above board.
That a payment could not be made by mistake and once a payment went through it was unchangeable, irreversible.
(2) had been on the periphery of the cypherpunks group since the mid 1990’s. When I entered the project in early 2008 he had been working on the problem part-time over the past five years. Over the previous year or so he’d been working on the problem full-time. He was writing a white paper for an e-cash system for the online betting/gambling company to use ( or to license out the solution to multiple companies ) plus writing the code for it.
He was attempting to implement a working example of electronic cash.
There were other cryptographers who he was communicating with however it just wouldn’t “work”. There were always too many attack vectors with the solution and even though, from a cryptographic point-of-view, the white paper and code was appropriate, he found it unsatisfactory.
After talking to his friend (3) it was decided that maybe they had their noses too close to the grindstone and that they should find someone who wasn’t a cryptographer to look over the ideas.
The problem is that to find such a person is very difficult. He’d have to be smart enough to understand cryptography (or learn it), also be interested in the subject but also not currently be a cryptographer.
Usually the folks who were smart enough and had an interest were already cryptographers.
Through various IRC (Internet Relay Chat) channels (3) came across me and I ended up being put in touch with (2).
With my work in the Win32 Asm community I’d shown I was smart enough and could figure out the solutions to difficult problems.
Plus I’d made sure my public profile was always dealing with grey-to-white topics (no online gambling stuff).
Request For Help
I was asked to take a look over what had been written in the white paper and see what needed to be changed as the code implementing it just wasn’t working - the pieces wouldn’t fit together or the whole thing would fail if certain pre-conditions in the network weren’t met.
(2) wanted to publish the white paper before the end of the year (2008).
I began reading through the document - understanding very little.
Hashing and encrypting and decrypting and private keys and public keys.
Different types of hashing algorithms, encrypting then hashing and hashing then encrypting.
Oh my!
“Just tell me what I need to change to make it work” - (2) kept asking me.
“I dunno what the [redacted] I’m reading here” - I replied.
(2) thought that maybe he’d made a mistake and he’ll just try and find someone else.
I told him that he’s going about fixing it the wrong way.
“How should it be fixed ?”, he asked.
“Well, first I need to know what I’m reading. So you’re going to have to give me info on the various crypto stuff in here”, I said.
“No no no”, he said. “ If you learn the meaning of the cryptographic jargon you will be influenced by it and would no-longer be the “non-cryptographer” that we need to look over the white paper”.
I told him that without learning the jargon I cannot read the paper in the first place.
Also - as I learn I will understand more and will be able to tell you what you need to change.
If or when it got to the stage that I’d learned too much and also had my nose too close to the grindstone then I could leave the project and he could find someone else to replace me.
He agreed that having me learn a bit about cryptography may be a good idea (:roll-eyes:).
He told me to get started.
I asked where the information was.
He said “Google it”.
I said “Nope. You’ve been working in this area for the past few years so you can give me a link to the websites with the info."
He returned with a list of website links and said to go through that and look at the white paper.
The list had about 109 links in it - bloody [redacted].
One-by-one I began going through the information.
After a few weeks I’d gone through about half-a-dozen papers/websites which hadn’t cleared up anything.
Once three or four weeks had gone by I threw my hands up in disgust and told him “At this rate I’ll be here all year and still not understand all the pieces. You’ve got to filter this down for me. You’ve already read all of these documents and websites so give me a list of the most important docs/websites you think would be helpful in understanding your white paper”.
He came back with a list of about 23 white papers and websites.
“Now list them in the order you think I should read them in”.
He came back with a sorted and filtered list of crypto-docs and websites.
I began reading through them - starting at the first.
Transactions
Given a computer network there had to be transactions sent to a recipient.
The initial white paper was pretty much a shuffling of the various cryptographic e-cash white papers at the time. We knew that when someone wanted to send a payment to another person it would have to be transmitted across a network securely.
But how to solve the double-spend problem ?
A piece of physical paper cash can only be in one place at a time - you cannot double-spend a physical currency note. All current electronic cash solutions relied upon a central server to control the allocation of coin and to make sure no coin could be double-spent.
But if that server went down, or was unaccessible due to a DDOS attack or government intervention ( or someone just tripping over a power cord ) then no more money.
We knew that a coin would initially be minted somehow.
I found most of the methods written in white papers and on websites were rubbish ( Personal opinion here. No disrespect to those who wrote those white papers ).
They either tried to pretend to act as central banks or tried to allow a “mates club” whereby they all agreed who's going to get coin at a particular time.
Kind of like politicians using an "independent" third party to give themselves a pay rise.
We knew that a piece of electronic cash would be minted somehow, however once it was minted how could it be sent to someone else ?
(2) and I went back and forth with a few ideas, going through the physical process of different transaction types one by one and adjusting how a transaction data package would look like.
We began with a single piece of e-cash.
Like a piece of gold, it should be able to cut smaller pieces off of it.
That means by starting with one item we’d end up with two - the piece going to the recipient and the change coming back to the original owner.
I told (2) that when drawn into a diagram it looks like electronic or computer logic gates.
Logic Gates
Except sometimes there can be more outputs than inputs. And in the end it looks like a neural network.
If we had a large piece and were paying that entire amount to someone then the input and output pieces would be the same.
If we had a large piece and were paying a small amount to someone then the input would be the large piece and the outputs would be the amount being paid plus a small piece as change.
As more people are paid we’d end up with a lot of small pieces in our wallet.
If we had a small piece and needed to pay someone a large amount then we could combine multiple small pieces to be equal or larger than the amount to be paid, and refund back to ourselves any change left over.
This means a transaction would have to allow multiple inputs and multiple outputs, with each input signed by the current owners private key and the outputs being the new owners public key.
Transaction Types
One day he came back to me saying his friend (3) wanted to communicate directly with me but he was a super-paranoid fella and I had to encrypt any messages using private/public keys.
It was a [redacted] nightmare.
I had to:
This was all so he could confirm that the message was indeed from me and had not been intercepted or changed.
Then he decided that I’d also have to generate new private/public keys for every single email just in case a previous email had been intercepted.
I told (2) that this just wasn’t going to happen.
I’ve always disliked using command line programs directly and always thought that they should always be executed from a GUI ( Graphical User Interface).
I said “You’re going to be my filter for this project and main conduit in this team. I send emails to you, you communicate with whoever you need to and send their replies back to me. Or you send their requests to me and I reply back through you.
And what’s this annoying command line proggy anyway? What the [redacted] is it doing?
(2) gave me the link to the information - it was in that list of 109 docs/websites but not in the filtered list of 23.
It was to Hal's website where he very clearly explained how something called "Hashcash" worked.
Hals RPOW
From there I went on to Adam's site:
Hashcash
(which was not even in the original list at all).
I read the Hashcash white paper sections until I hit the calculations and my eyes begun to glaze over.
Hashcash
I read the first few paragraphs and knew this was something interesting.
I asked (2) if he could check whether this document was the final version or if there had been improvements/ amendments/ updates to it.
He said he thought I was wasting my time with this and I should continue with the other docs/websites in the list he’d provided me.
I told him that I’m the only one who would know what info is important and to look into the Hashcash origin for me. He came back a couple of days later and said it was confirmed that the public document linked was the final version of the Hashcash paper.
I asked how he could confirm it?
He told me that he’d contacted the original website author Hal and asked him for any updated document and Hal had replied back with the exact same public link.
He’d even copy/pasted Hal’s reply in the email to me.
I said “Wait… What ? …”
“You actually contacted the original author of the reference material ?”
He said “Yep. Who else would I go to to confirm the document, except to the author themselves ?”
I told him it was really quite rare to have someone check with the original author or sources. Most folks read something and take that as fact, or read the reference documents and take those as fact.
If someone read about the Boyer-Moore search algorithm they take it as fact that what they’ve read is the official final solution. I haven’t heard of anyone contacting Boyer or Moore to check for any updates/ improvements/ amendments.
The Boyer-Moore search algorithm is something that went through the rounds on the Win32Asm community forum for a while.
I found this quite intriguing. Even with (2)’s occasional grating personality it would be very useful to have someone who’s prepared to hunt down the original authors like this.
I asked him if he'd contacted the Hashcash author and he said he'd sent emails to every single author of all of the websites/ white papers and only about a dozen or so had ever replied back to him.
I had begun to write up a list of what the various problems were for creating an e-cash system from the other e-cash system white papers and websites I had been studying.
I was still referring back to the white paper (2) had supplied me however it was really just a mishmash of what everyone else had been doing over the years.
Hence why it failed like all of the others.
One of the problems was a trusted time stamp so that folks would know that funds hadn’t been double-spent. Another was the minting of the tokens in the system and trusting the minting source.
If I recall - practically every single white paper out there ( including the one suppled to me ) used a trusted third party as the source for a time stamp and a convoluted method to check it hadn’t been tampered with.
And the minting either used a trusted third party to generate coins on a regular basis or had a network of nodes agree on how many tokens to generate and give to each other.
(2) said that we need to use the trusted third parties because how else can we trust the time stamp and the minting of the tokens.
I told him he was thinking of it in the wrong way.
You’re assuming a trusted third party is needed, just because every single other cryptographic white paper says that’s how you do it.
But you’re also saying that you can’t rely on a trusted third party because that makes a single point attack vector that can bring the whole system down to its knees.
“Remember Sherlock Holmes” I said. “ ‘When you have eliminated the impossible, whatever remains, however improbable, must be the truth ?’.
The assumption of a trusted third party in an functioning e-cash system must be eliminated as impossible for this to work.
So if we cannot have a trusted third party for this, what are our other options ?”
“I have no idea”, (2) replied. “Do you believe this proof-of-work thing you’re looking into can be used for this somehow ?”.
“I dunno. It definitely has some possibilities. It’s made for making sure the data being sent and received comes from a known trusted source and that it hasn’t been tampered with”.
It forces the user computer to generate a hash of the data to find a hash with a prepended number of zeroes. If the hash isn’t found it increments a value and hashes again. It just keeps repeating until a hash is found with the correct number of prepended zeroes.
This means that the user computer has to spend time working on the hashes until it finds one and only then can it stop.
It was designed to eliminate the email spam problem that we all have because a spam-sender would need to use a lot of computing resources to generate hashes for all the emails sent out ( the data that’s hashed includes the recipients email address so a new hash is required for every single email recipient ).
It also has a throttle so that the difficulty in generating a hash can be increased over time as the general computing hardware improves.
The minting problem is also sorted due to the electricity used in generating a hash can be used to mint the e-cash and put it into circulation.
Effectively - the real fiat-currency cost (via electricity consumed) of generating the valid hash is how much e-cash is given to that minter.
It also sets what the price of the minted e-cash should be, as there is a direct correlation between a real-world electricity bill and the digital e-cash amount minted.
Taking the time used to generate the hash with how much energy the cpu used during the generation ( only the time spent on hashing - not other computing resources ) with the local electricity costs of the suburb/county/province/state/nation the minter resides within, then each minter could have a locally-adjusted e-cash value added to their account.
It would mean that someone minting in a country with cheap electricity due to state-subsidised support would receive less e-cash because less real-world fiat currency was expended in the generation of the hash.
So now we had a mechanism in which this e-cash would work.
I'll stop this story here for now and post a follow-up depending upon its reception.
The follow-up will contain some of the details of how the idea of a chain of blocks came about, plus some of the tech that was left out of the initial white paper and public code release ( it was, after all, just the first experiment to check whether this tech would actually work ).
Bitcoin Origins - part 2
As a side-note:
When you read the Bitcoin white paper again, the Introduction, Calculation, Conclusion and References sections were written and edited by (2) and (3).
The Transactions, Timestamp Server, Proof-of-Work, Network, Incentive, Reclaiming Disk Space, Simplified Payment Verification, Combining and Splitting Value and Privacy sections were from text copy/ pasted from emails from me to (2) explaining how each part worked as they were being figured out.
I wrote the Abstract text when (2) asked me to write the Introduction. (2) used it as the Abstract section because he found it too terse for an introduction.
(2) and (3) edited the entire document and removed any double-spaces from it, adding titles to the various sections and adjusting between 2% and 5% for spelling errors and gramma sentence structure.
You can see the original Abstract with double-spacing here: Public Mailing-list Posting
There was a huge misunderstanding between us all during the formation of the white paper which I'll mention next time.
Cheers,
Phil
(Scronty)
vu.hn
submitted by Scronty to btc [link] [comments]

@dr_craig_wright - recovered tweets via www.BitcoinAgile.com

And as stated, P2P and decentralised are not the same. Ripple starts to show how it is the old scheme https://twitter.com/bitcoinpoet/status/594796751342538752
Simple end to end crypto. Solved in theory tonight, now a life of implementation... http://gse-compliance.blogspot.com.au/2011/09/system-survival.html
The Research and development tax incentive. We can help you recover 43.5 cents in the $ for #Bitcoin research. http://www.business.gov.au/grants-and-assistance/innovation-rd/RD-TaxIncentive/Pages/default.aspx
In Oz #Bitcoin and Blockchain research leads to a 43.5 cent in the $ incentive. https://www.ato.gov.au/Calculators-and-tools/Research-and-development-tax-incentive-calculator
Hook CGA, IES and #Bitcoin together, and we have a new foundation for internet commerce. http://en.wikipedia.org/wiki/Integrated_Encryption_Scheme
For those who wonder just how far you can "push" the scripting language in Bitcoin... http://www.amazon.com/Introduction-Theory-Computation-Michael-Sipsedp/113318779X
Carbon footprint. Bah. Try running a large #HPC. http://pando.com/2013/12/16/bitcoin-has-a-dark-side-its-carbon-footprint
Thank you Jon https://twitter.com/jonmatonis/status/605478531200516096
RT @coindesk: Breaking: Bitcoin is Exempt from VAT, Rules European Court of Justice http://www.coindesk.com/bitcoin-is-exempt-from-vat-says-european-court-of-justice
Really: A few years ago BTC was seen as the anti-christ by the US... http://www.coindesk.com/russian-politician-us-bitcoin-finance-terrorism
For over 100million they must have been damned good...Bitcoin CEO spent embezzled funds on prostitutes: - http://timesofindia.indiatimes.com/world/rest-of-world/Bitcoin-CEO-spent-embezzled-funds-on-prostitutes-Reports/articleshow/49570125.cms
Wrong again. @motherboard The first ws in 2013 http://motherboard.vice.com/read/this-guy-implanted-his-bitcoin-wallet-and-made-a-payment-with-his-hand
Driving. Inventivising good driver behavior linked into the blockchain. earn for good practice and distance. https://www.youtube.com/watch?v=BGZbcWrqjnw
Bitcoin and the #Blockchain are what will become the source of truth. https://twitter.com/philo_quotes/status/660808895452061696
A small glimpse into the incenticised economy. http://gse-compliance.blogspot.co.uk/2015/11/recycling-in-age-of-blockchain.html
Go Calvin http://calvinayre.com/2015/11/05/business/first-multi-vertical-network-for-bitcoin-affiliates-revealed-at-sigma-bl-video
RT @socrates1024: A gem of cypherpunks history: "Crypto Wars" 1997 NHK documentary (eng. subs) including first Fin… https://www.youtube.com/watch?v=EcC0RNsallc
RT @jonmatonis: I think there is truth to this! https://twitter.com/lopp/status/664446611968434176
submitted by bitcoinagile to Bitcoin [link] [comments]

Cypherpunks and Bitcoin Part I Crypto History, Cypherpunks & Bitcoin Bitcoin and the End of History - YouTube Free BitCoins - Bitcoin Mining HQ - YouTube Cypherpunks and Bitcoin by Paul Rosenberg - YouTube

Cypherpunks Taiwan page on Github provides even more details of the entire process. Currently, running a Bitcoin node via satellite is not so difficult especially as the blockchain reaches slowly the size of 240GB in size. This means that if you have the need you can easily tap into bitcoin for free for 24 hours a day thanks to the coverage from the Blockstream satellite. History of bitcoin: Bitcoin and the Rise of the Cypherpunks: Jameson Lopp Presentations: Essays on bitcoin: Bitcoin: A peek under Bitcoin's hood: The Complete Satoshi: Grokking Bitcoin: Bitcoins the hard way: Using the raw Bitcoin protocol: Explore the visualized history of the cryptocurrencies CoinDesk contributor Jameson Lopp traces the history of the cypherpunks, the band of innovators whose beliefs helped inspire the bitcoin movement. This site specifically or mainly deals with bitcoin and also how some group of people formed a small group named Cypherpunks. It goes ahead to tell us a little history about Cypherpunks, how they formed and what they have achieved. Most of the members of Cypherpunks have become great men in the field of technology such as the founder of WikiLeaks, inventor and co-founder of Bloodstream ... Bitcoin este prima implementare a unui concept numit "cripto-valută", care a fost pentru prima oară enunţat în 1998 de către Wei Dai în lista de mail cypherpunks, sugerând ideea unei noi forme de bani ce foloseşte criptografia pentru a controla emiterea lor şi tranzacţiile, spre deosebire de a se baza pe o autoritate centrală ...

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Cypherpunks and Bitcoin Part I

The final installment in a four-part documentary series "Cypherpunks Write Code." Part 1: https://youtu.be/YWh6Yzr12iQ Part 2: https://youtu.be/n4qonsvSgAg P... #LoveAllServeOthers #bitcoin Cypherpunks and Bitcoin seem to be from the same family tree. The early "Cypherpunks" embodied a movement to protect Mankind's u... Bitcoin is one of the first implementations of a concept called crypto-currency which was first described in 1998 by Wei Dai on the cypherpunks mailing list. Building upon the notion that money is ... This video is unavailable. Watch Queue Queue. Watch Queue Queue In this interview, I talk with computer scientist, cryptographer, cypherpunk and Bit Gold designer, Nick Szabo. We discuss the cypherpunk movement and its ac...

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