What Is Bitcoin: Explanation for Beginners in Simple Terms ...

Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
submitted by flacciduck to CryptoCurrency [link] [comments]

Transcript of how Philip the tyrant admin of the Bitcoin Cash Telegram group called Spoice stupid, an idiot, a parrot among other insults then banned her instead of discussing Bitcoin Cash. That Telegram group is hostile, ABC/IFP shills run and follows the rBitcoin toxic censorship modus operandi.

David B., [18.10.20 01:46]
https://www.reddit.com/btc/comments/jdagi3/whats_up_with_the_bchn_hypocrisy/

David B., [18.10.20 01:47]
Wut x2

J Stodd, [18.10.20 01:49]
[In reply to David B.]
Their words are meaningless. They have no principles. Wish i could comment but bitcoinxio banned me from rbtc and never told me why

David B., [18.10.20 01:59]
These comments are so toxic

Spoice, [18.10.20 01:59]
In reality, the real continuation of Bitcoin as we all know it is what is carried on by BCHN, BU, BCHD and others

Spoice, [18.10.20 02:00]
ABC is changing the rules to something that is not Bitcoin

Spoice, [18.10.20 02:00]
anyone denying those facts is selling you snake oil

Spoice, [18.10.20 02:00]
If Blockstream tried to take some % to their own benefit, we would have never needed BCH in the first place

Spoice, [18.10.20 02:00]
everyone would have rejected them in a second

J Stodd, [18.10.20 02:01]
[In reply to Spoice]
Bitcoin Cash is not Bitcoin to start with, so who cares?

David B., [18.10.20 02:01]
[ Album ]

Spoice, [18.10.20 02:01]
yet we have ABC trying to pull this theft and all those puppets think it's ok

Spoice, [18.10.20 02:01]
JSTodd that's bullshit

David B., [18.10.20 02:01]
Like trying to talk to a core maxi about altcoins

Spoice, [18.10.20 02:01]
Bitcoin Cash is the most Bitcoin out of all Bitcoins

Spoice, [18.10.20 02:01]
it is the continuation of what Satoshi started

David B., [18.10.20 02:02]
Tbh they aren't even toxic

Michael Nunzio, [18.10.20 02:02]
[In reply to Spoice]
If the hash follows then it is Bitcoin Cash. Only if it doesn't is your claim true

J Stodd, [18.10.20 02:03]
[In reply to Spoice]
Bitcoin is Bitcoin. Bitcoin failed to be Peer to Peer Cash, so Bitcoin Cash attempted to fix this by forking Bitcoin and attacking the root of the problem. This does not mean Bitcoin Cash is literally Bitcoin. Adopt a different argument. Sorry if you bought into that bc of Rogers rantings

J Stodd, [18.10.20 02:05]
Bitcoin Cash can replace Bitcoin, and if Bitcoin dies and BCH wins then sure maybe it can take its name from its grave, but they are different products, trying to say Bitcoin stopped being "Bitcoin" and became BCH is a self contradiction.

Jingles, [18.10.20 02:08]
Jstodd's got some good points.

Jingles, [18.10.20 02:08]
He's learnt so much in the last year ☺️

Spoice, [18.10.20 02:08]
"Bitcoin is Bitcoin" is a false statement. BTC is just an instance of Bitcoin. Bitcoin is the set of rules defined in the whitepaper first and foremost, it is peer to peer electronic cash. BTC no longer fits that criteria. Bitcoin Cash meets them. The fork proposed by ABC also fails to meet that criteria. Therefore the continuation of Bitcoin is in whatever BU, BCHN, Flowee and others will continue.

Jingles, [18.10.20 02:09]
What rules were defined in the WP?

Spoice, [18.10.20 02:10]
Let's see which rules aren't: 1) No coinbase tax going to any centralized entity such as ABC 2) No throttling of TX throughput such as BTC

Spoice, [18.10.20 02:10]
therefore they both fail the simple "Is this Bitcoin?" test

Spoice, [18.10.20 02:11]
Finally, Michael, if you think Hash rate defines what Bitcoin is, you should stick to BTC

Jingles, [18.10.20 02:11]
21 million coins isn't in the WP

Jingles, [18.10.20 02:11]
I asked what rules did the WP define.

Spoice, [18.10.20 02:12]
Because BCH failed that criteria since it forked, therefore your point is wrong

Spoice, [18.10.20 02:12]
https://www.metzdowd.com/pipermail/cryptography/2009-January/014994.html

Spoice, [18.10.20 02:12]
The announcement of the white paper included the 21 million limit, close enough

Jingles, [18.10.20 02:12]
HIs announcement isn't the WP

Spoice, [18.10.20 02:12]
show me where Satoshi said that Amaury shoudl tax the chain?

Spoice, [18.10.20 02:12]
Doesn't matter- close enough

Jingles, [18.10.20 02:12]
Bitcoin is the set of rules defined in the whitepaper first and foremost - You

Jingles, [18.10.20 02:13]
My ears pricked up on that comment, so I'm asking you what you meant.

Spoice, [18.10.20 02:13]
Correct. Changing the 21 million hard limit is still more Bitcoin than taxing the Coinbase, yet both will never ever happen. Not to Bitcoin anyway

Jingles, [18.10.20 02:13]
If you meant Satoj's writings pre and post WP then you should be clear about it

Spoice, [18.10.20 02:13]
some bastardized chain might, just not Bitcoin

Jingles, [18.10.20 02:14]
The closest we have to anything to indicate what is "Bitcoiness" is general things like "the longest chain"

Spoice, [18.10.20 02:14]
No, it is never a single thing

David B., [18.10.20 02:15]
REEEE

Jingles, [18.10.20 02:15]
trustless, no single trusted third parties, and rules can change due to incentives via consensus

Spoice, [18.10.20 02:15]
it is a set of common sense and experiment driven and historical relevance and initial parameters and "peer to peer electronic cash" definition indicators

Spoice, [18.10.20 02:15]
never a single thing

Jingles, [18.10.20 02:16]
[In reply to Spoice]
This is like the exact opposite of what you said earlier

Jingles, [18.10.20 02:16]
Bitcoin is defined by the rules in the WP, I mean common sense.

Jingles, [18.10.20 02:16]
🤷‍♂️

Spoice, [18.10.20 02:16]
Nope, the rule set is defined in the white paper should never change, but I never said all rules are defined in the white paper

Jingles, [18.10.20 02:16]
What rules?

Spoice, [18.10.20 02:16]
It is a union

Jingles, [18.10.20 02:17]
What rules are there?

Spoice, [18.10.20 02:17]
Rules in the white paper + what continued to define Bitcoin thereafter

J Stodd, [18.10.20 02:17]
[In reply to Spoice]
> "Bitcoin is Bitcoin is a false statement."
Alas, if we cannot agree on the law of identity, aka A=A, then i dont understand how to hold a conversation with you using logic.
> BTC is an instance of Bitcoin
No, BTC is a ticker used optionally by exchanges. Other common tickers for bitcoin include XBC, XBT, BC (correct me if im wrong on any of these)
> "Bitcoin is a set of rules in the whitepaper"
Super hard to defend this. Theres no mention of a 21M supply cap, no blocksize limit *at all*, and it also says additional rules and incentives can be enforced (implying maybe they should).

Jingles, [18.10.20 02:17]
I go through this with BSVers all the time. We have no spec sheet of rules defining what Bitcoin is from Satoshi.

Spoice, [18.10.20 02:18]
Rules such as what defines a correct block, miners receiving the full incentive of mining it, etc

Jingles, [18.10.20 02:18]
The WP is a highlevel document

Spoice, [18.10.20 02:18]
The WP is a description of a scientific experiment

Spoice, [18.10.20 02:18]
if you want to start your own experiment, be my guest

Jingles, [18.10.20 02:18]
[In reply to Spoice]
Valid tx rules aren't defined in the WP

Spoice, [18.10.20 02:18]
just don't try to call it Bitcoin

Jingles, [18.10.20 02:19]
The word majority is in the WP an awful lot wouldn't you say?

Spoice, [18.10.20 02:19]
Not valid TX rules, but what a proof of work block is and how it diverts the reward to the miner, etc

Jingles, [18.10.20 02:20]
[In reply to Spoice]
and? what about BTC doesn't apply?

Jingles, [18.10.20 02:20]
I'm not arguing for any fork of BCH here.

Spoice, [18.10.20 02:20]
It no longer meets the very title of the white paper experiment, "Peer to peer electronic cash"

Spoice, [18.10.20 02:20]
The BTC instance of the experiment is destined to move away from the very title of the white paper

Jingles, [18.10.20 02:20]
It's electronic, and I use it like cash.

Spoice, [18.10.20 02:20]
that the maintainers even wanted to edit the white paper (Cobra and co) because of this fact

J Stodd, [18.10.20 02:20]
u/Spoice When did BTC stop being Bitcoin in your view? The day Amaury decided to launch the fork, before Segwit happened?
If someone else launched a fork first, they would have been "the real bitcoin"?
This is a game of whoever forks first becomes the real Bitcoin?
What if two people launched a fork at the exact same time, maybe even with identical specs?

Jingles, [18.10.20 02:21]
Where did I go wrong?

Jingles, [18.10.20 02:21]
[In reply to Spoice]
Did they?

Spoice, [18.10.20 02:21]
Doesn't matter if you use it today, its very technical fabric will have to move your transactions to 2nd layers and it will no longer be peer to peer electronic cash on chain

Jingles, [18.10.20 02:21]
peer to peer electronic cash on chain - Not in the wp

Jingles, [18.10.20 02:22]
We have satoj talking about HFT with sidechannels.

Jingles, [18.10.20 02:22]
So what?

Jingles, [18.10.20 02:23]
I think this is a good discussion Phil, nothing disrespectful is being said. I hope this is ok?

Spoice, [18.10.20 02:23]
Doesn't matter, the rule of common sense, which is closer to that title? Increasing a simple variable (Blocksize) to stay on track of the title and experiment, or introduce IOUs and Watchtowers and channels and locked BTC and that whole LN Bastardization? Which is close to the title?

Jingles, [18.10.20 02:23]
No one said that can't happen

Michael Nunzio, [18.10.20 02:24]
[In reply to Spoice]
Congratulations you've made an argument which isn't an argument.

Jingles, [18.10.20 02:25]
The whole thing that was said was the system is based on majority rules, and incentives can be changed. Majority breaks any deadlock.

David B., [18.10.20 02:25]
How to kill a coin 101

Spoice, [18.10.20 02:25]
Logic fails anyone who tries to claim BTC, ABC, BSV or any similar standalone experiments as Bitcoin, because of simple sanity checks and logic checks, often stemming out of common sense - If what you have moves you a single step away from what is otherwise the same old experiment which Satoshi wrote about and unleashed, you're not Bitcoin. If what you have moves you a step closer, it is Bitcoin. and so on and so forth.

Phlip - Not giving away coins, [18.10.20 02:25]
Wow, really fanatical almost religious statements. I guess its Sunday morning.

Jingles, [18.10.20 02:27]
[In reply to Spoice]
There's nothing common about common sense. You point to the WP to make a point, and your point isn't in there.

Spoice, [18.10.20 02:27]
Throttled and you need off-chain IOUs and always-on services to function (BTC) ? Not Bitcoin. Requires permission to be used and could be centrally confiscated on the whim of the organization behind it (BSV)? Not Bitcoin. Premined (Bitcoin Gold, Diamond)? Not Bitcoin. Taxing the miners through Coinbase and changing the incentives which were at play since day 0 (ABC)? Not Bitcoin

Spoice, [18.10.20 02:27]
simple checks really, yet those who are set to benefit will of course be oblivious to these

Phlip - Not giving away coins, [18.10.20 02:28]
This whole “Bitcoin Cash is the true Bitcoin - see whitepaper” is really stupid. It also ignores the history of how Bitcoin Cash came into existence

Jingles, [18.10.20 02:28]
Phillip, remove anyone here that has said Bitcoin Gold was the original Bitcoin immediately

Jingles, [18.10.20 02:28]
^^^^

Jingles, [18.10.20 02:29]
[In reply to Phlip - Not giving away coins]
It falls to pieces the moment it's questioned.

Spoice, [18.10.20 02:29]
It is not about "True" Bitcoin

Spoice, [18.10.20 02:30]
It is about the Bitcoin closest to the experiment which always was

Spoice, [18.10.20 02:30]
I don't care about "True" or not, they all are true

Phlip - Not giving away coins, [18.10.20 02:30]
[In reply to Jingles]
Sorry, I hve stopped reading all the sillyness above. Will reread later

Jingles, [18.10.20 02:30]
[In reply to Phlip - Not giving away coins]
I'm joking around 😂

Spoice, [18.10.20 02:30]
but the rule of entropy says I shouldn't place my money nor effort in experiments which are set to fade eventually, because they have skewed incentives

Phlip - Not giving away coins, [18.10.20 02:31]
[In reply to Spoice]
You get to chose that for yourself but you do not get to dictate it for others

David B., [18.10.20 02:31]
[In reply to Phlip - Not giving away coins]
Don't read it. You will have no braincells left

Spoice, [18.10.20 02:31]
Bitcoin as we know it has a long track record of incentives which work

Spoice, [18.10.20 02:31]
I won't ever dictate it for others

Spoice, [18.10.20 02:31]
I only would dictate it for myself, just like how I never use BTC or BSV today, I won't use ABC tomorrow

Spoice, [18.10.20 02:32]
only because they're new experiments

Spoice, [18.10.20 02:32]
interesting, and I wish them luck

Jingles, [18.10.20 02:32]
"Bitcoin is Bitcoin" is a false statement - Spoice 2020

Spoice, [18.10.20 02:32]
but I would rather stick to the Bitcoin I know

Spoice, [18.10.20 02:32]
that's all

Jingles, [18.10.20 02:32]
I won't ever dictate it for others - Also Spoice
Phlip - Not giving away coins, [18.10.20 02:32]
Bitcoin Cash came with a plan snd goals. They were clearly presented in two presentations that happened before viabtc announced they would mine with ABC software and create a coin and chain named Bitcoin Cash

Spoice, [18.10.20 02:32]
Yes, because he means BTC is Bitcoin, and that's a false statement

Jingles, [18.10.20 02:32]
How is it false?

Spoice, [18.10.20 02:32]
It is an instance of Bitcoin

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:33]
[In reply to Michael Nunzio]
you're looking intimidatingly handsome in your new profile picture

Phlip - Not giving away coins, [18.10.20 02:33]
[In reply to Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ]]
Lol

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:33]
[In reply to J Stodd]
actually a good question

Spoice, [18.10.20 02:34]
Anyway, those are my two cents

Spoice, [18.10.20 02:34]
Everyone is free to choose which experiments to pour their effort on and their money in

Phlip - Not giving away coins, [18.10.20 02:34]
[In reply to Spoice]
You are entitled to your opinion.

Spoice, [18.10.20 02:34]
Andreas is publishing Lightning Network books, I mean

Spoice, [18.10.20 02:34]
So to each his own

Phlip - Not giving away coins, [18.10.20 02:35]
[In reply to Spoice]
Lets leave it at that

Spoice, [18.10.20 02:35]
but Bitcoin as I know it continues with no Tax, and that in my opinion is BCH with no tax

Phlip - Not giving away coins, [18.10.20 02:35]
Ah you had to continue

Phlip - Not giving away coins, [18.10.20 02:36]
Good thing no tax is proposed by anyone
Spoice, [18.10.20 02:35]
Isn't this the Bitcoin Cash telegram?

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:35]
😅

Spoice, [18.10.20 02:36]
If I don't discuss Bitcoin Cash here, where should I?

Spoice, [18.10.20 02:36]
Tax, IFP, call it what you will

Spoice, [18.10.20 02:36]
from my perspective as a user, it's one the same

J Stodd, [18.10.20 02:36]
[In reply to Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ]]
I bet nobody will answer it, either

Phlip - Not giving away coins, [18.10.20 02:37]
[In reply to Spoice]
Apparently btc /s

David B., [18.10.20 02:37]
[In reply to Spoice]
As a user what do you care?

Jingles, [18.10.20 02:37]
Ooh, can I shill the Bitcoin room in here?

Spoice, [18.10.20 02:37]
Nah, I prefer quick responses and chats

Spoice, [18.10.20 02:37]
Reddit is broken

Phlip - Not giving away coins, [18.10.20 02:37]
[In reply to Jingles]
Lol

J Stodd, [18.10.20 02:37]
[In reply to Spoice]
Nobody even pays it, it just comes out of the block reward. The block reward is not sentient, it cannot be stolen from or wronged

Phlip - Not giving away coins, [18.10.20 02:37]
Dont push your luck 😉

Jingles, [18.10.20 02:37]
[ 😀 Sticker ]

Michael Nunzio, [18.10.20 02:38]
[In reply to Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ]]
You too brother. 🙏

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:38]
[In reply to Michael Nunzio]
but mine is the same....i need new ones everyone always calls me fat because of this one

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:38]
literally if i say 1 thing to any troll anywhere first thing they say is "ok fatass"

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:38]
i blame this dumb photographer

Michael Nunzio, [18.10.20 02:38]
[In reply to Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ]]
Don't listen.

Phlip - Not giving away coins, [18.10.20 02:39]
u/spoice maybe write a read.cash article if you really feel you need to educate people

Spoice, [18.10.20 02:39]
David, as a user I believe that each new experiment carries risk with it, why should I take part in a new fork of Bitcoin which has a new set of game-theory rules which doesn't even benefit me, rather it benefits some other entity which will take 5% of any effort or economic activity I produce on this chain? They're also off-loading the risk to me as a usebuildebusiness who choose to join their experiment.

Spoice, [18.10.20 02:40]
Why should I take that risk while the Bitcoin I know and have known for over 10 years worked perfectly for me thus far? (BCH, that is)

Jingles, [18.10.20 02:40]
small fees and empty blocks?

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:41]
It will insure that a centralized group has control over development and they are by decree in the code, it's a literal take over.

Phlip - Not giving away coins, [18.10.20 02:41]
[In reply to Spoice]
“BSV-freeze the protocol - true Bitcoin” sounds like more your thing

David B., [18.10.20 02:41]
[In reply to Spoice]
Better run bitcoin core 0.1

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:41]
Imagine if satoshi keyd his address in the code to be paid out of every block, but instead of paying himself started a company "Bitcoin Dev Co"

Spoice, [18.10.20 02:42]
Not really, BSV kills the incentives I am discussing too

Phlip - Not giving away coins, [18.10.20 02:42]
[In reply to Jingles]
Please stay nice now

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:42]
No one would ever be able to say Bitcoin was Decentralized, Bitcoin Dev Co would get paid directly from the reward.

Jingles, [18.10.20 02:42]
[In reply to Phlip - Not giving away coins]
"BSV: We have all the Bad Idea. On chain"

Spoice, [18.10.20 02:42]
The Nash equilibrium we have tested for the past 10 years will be changed with ABC, it changed with BTC and BSV too

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:42]
"Bad Solutions Verified"

Spoice, [18.10.20 02:42]
that game-theory set of incentives

Spoice, [18.10.20 02:43]
why would I want to take a risk with any of those experiments when I gain 0?

David B., [18.10.20 02:43]
Better run bitcoin core 0.1

Spoice, [18.10.20 02:43]
Nope, you're talking technical freezing of development, that's not what I am addressing

Jingles, [18.10.20 02:43]
[In reply to David B.]
Thats the BTC chain though

Phlip - Not giving away coins, [18.10.20 02:43]
[In reply to Spoice]
O please share with us your background in the subject. Or are you now just parroting others

Spoice, [18.10.20 02:44]
BSV wants to freeze the technical development and they want a stable protocol from an API/development perspective

Spoice, [18.10.20 02:44]
but from an incentive ruleset perspective, they already butchered the equilibrium Bitcoin had

Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ], [18.10.20 02:44]
[In reply to Phlip - Not giving away coins]
That's one of those phrases, when you hear it you know they are just a parrot of someones propaganda. "MUH NASH EQUILIBRIUM!"

David B., [18.10.20 02:44]
Stable = bad?

Jingles, [18.10.20 02:45]
[In reply to Jc Crown [ I DON'T DM PEOPLE - DON'T GIVE ME MONEY! ]]
I love you

Spoice, [18.10.20 02:45]
Philip, for an admin you are ought to be nicer, if you think I am parroting others you're free to think that, but to state it so bluntly in your position is just... wrong

Spoice, [18.10.20 02:46]
If you think the point I made is wrong, discuss it

Phlip - Not giving away coins, [18.10.20 02:46]
[In reply to Jingles]
Maybe talk to him in DM about that?😉

Spoice, [18.10.20 02:46]
not me

Jingles, [18.10.20 02:46]
[In reply to Phlip - Not giving away coins]
working on it.

Phlip - Not giving away coins, [18.10.20 02:46]
[In reply to Spoice]
I ought to be nicer...😂😂😂

Spoice, [18.10.20 02:47]
Also, anyone who studied Bitcoin at length and its set of incentives and game-theory ruleset should know what a Nash Equilibrium is and who the players are in the Bitcoin game

Phlip - Not giving away coins, [18.10.20 02:47]
[In reply to Spoice]
You state as fact. You get to dhow why your statements or opinions are even relevant.

Spoice, [18.10.20 02:48]
If it's not a fact, highlight how

Spoice, [18.10.20 02:48]
don't attack me

Spoice, [18.10.20 02:48]
prove me wrong

Spoice, [18.10.20 02:48]
if you fail that simple debate test

David B., [18.10.20 02:48]
How's that breakfast helping?

Spoice, [18.10.20 02:48]
you should rename from Janitor to Tyrant

Jingles, [18.10.20 02:48]
I'm still waiting to see the defined rules as per the wp

Michael Nunzio, [18.10.20 02:49]
[In reply to Spoice]
Didn't know this was stand up comedy night in here.

Michael Nunzio, [18.10.20 02:49]
I missed the memo

Phlip - Not giving away coins, [18.10.20 02:49]
If I have to prove all idiots on the internet wrong I would have a hard time. You are starting to really waste everybody’s time. You state, you prove. Or you are just generating noise

Phlip - Not giving away coins, [18.10.20 02:50]
[In reply to Spoice]
Be careful now.

Michael Nunzio, [18.10.20 02:50]
Noisy bugger.

Phlip - Not giving away coins, [18.10.20 02:52]
Getting close to just do some cleaning up.

Spoice, [18.10.20 02:52]
If you can't debate technical points I am making about Bitcoin Cash on a Bitcoin Cash Telegram, and within the span of 10 minutes you called me stupid, idiot, noisy and a parrot, you absolutely are a tyrant and I stand by my point: You should not be an admin here, nor anywhere actually. If you think I should be careful for the fear of you banning me, go ahead. You still fail to debate the simplest technical point and yet claim you can "but can't be bothered to". You remind me of that Thermos guy.

Spoice, [18.10.20 02:53]
How do people with 0 technical know how end up in these admin positions is beyond me

Jingles, [18.10.20 02:53]
I challenged your comments and you just changed the goal posts.

Phlip - Not giving away coins, [18.10.20 02:53]
[In reply to Spoice]
Ok. You are not paying me and you are free to create noise elsewhere
submitted by wisequote to btc [link] [comments]

The legality of unregistered, unlicensed lending? Legality of stablecoins?

With all this defi hype, I don't see very many people questioning the legality of some of these functions. In most countries, lending is allowed because two willing participants agree to a written contract. A contract is essentially a group of people privatizing a set of laws that take precedent over public law. "Smart contracts" are not legal contracts. A legal contract must have actual print and a signature of all participants acknowledging the terms of the agreement. Just because you have software executing a code, that doesn't make it a legal contract.
There's a real fundamental problem with stablecoins: any system that effectively allows decentralized peer-to-peer transmission of money is going to fail one or more anti-money-laundering laws. Stablecoins are fundamentally illegal operations under US law. With bitcoin, you can squish around legal definitions to call it a commodity instead of money because of it's volatile nature. But stable coins are being marketed as 1:1 equivalent to USD, which is money.
submitted by ShotBot to CryptoCurrency [link] [comments]

NEAR PROJECT REPORT

NEAR PROJECT REPORT
Author: Gamals Ahmed, CoinEx Business Ambassador
https://preview.redd.it/xbnvecjn71t51.png?width=1164&format=png&auto=webp&s=acfd141ead035ee156f218eec9fc41288142a922

ABSTRACT

The effects of the web by a number of companies have seduced a large number of users as these companies keep their data to prevent them from searching for alternatives. Likewise, these huge platforms have attracted applications to build their highest ecosystems before either severing access or actively opposing their interests when the applications became so successful. As a result, these walled gardens have effectively hindered innovation and monopolized large sections of the web. After the emergence of blockchain technology and decentralized cryptocurrencies, the need for applications to support decentralization has emerged. Several blockchain-based companies, applications and platforms have appeared in decentralization. In this research report, we will explain the approach adopted by the NEAR decentralization platform in designing and implementing the basic technology for its system. Near is a basic platform for cloud computing and decentralized storage managed by the community, designed to enable the open web for the future. On this web, everything can be created from new currencies to new applications to new industries, opening the door to an entirely new future.

1. INTRODUCTION

The richness of the web is increasing day by day with the combined efforts of millions of people who have benefited from “innovation without permission” as content and applications are created without asking anyone. this lack of freedom of data has led to an environment hostile to the interests of its participants. And as we explained in the summary previously, web hosting companies have hindered innovation and greatly monopolized the web.
In the future, we can fix this by using new technologies to re-enable the permissionless innovation of the past in a way, which creates a more open web where users are free and applications are supportive rather than adversarial to their interests.
Decentralization emerged after the global financial crisis in 2008, which created fundamental problems of confidence in the heavily indebted banking system. Then the decentralized financial sector based on Blockchain technology has emerged since 2009.
Decentralized Blockchain technology has made it easy for decentralized digital currencies like Bitcoin to exchange billions of dollars in peer-to-peer transfers for a fraction of the price of a traditional banking system. This technology allows participants in the over $ 50 billion virtual goods economy to track, own and trade in these commodities without permission. It allows real-world goods to cross into the digital domain, with verified ownership and tracking just like that of the digital.
By default, the Internet where freedom of data enables innovation will lead to the development of a new form of software development. On this web, developers can quickly create applications from open state components and boost their efforts by using new business models that are enabled from within the program itself rather than relying on parasitic relationships with their users. This not only accelerates the creation of applications that have a more honest and cooperative relationship with its users, but also allows the emergence of completely new business built on them.
To enable these new applications and the open web, it needs the appropriate infrastructure. The new web platform cannot be controlled by a single entity and its use is not limited due to insufficient scalability. It should be decentralized in design like the web itself and supported by a community of distributors widely so that the value they store cannot be monitored, modified or removed without permission from the users who store this value on their behalf.
A new decentralization technology (Blockchain), which has facilitated decentralized digital currencies like Bitcoin, has made billions of dollars in peer-to-peer transfers at a fraction of the price of the traditional banking system. This technology allows participants in the $ 50 billion + virtual goods economy to track, own and trade in these goods without permission. It allows real-world goods to cross into the digital domain, with verified ownership and tracking just like that of the digital.
Although the cost of storing data or performing a calculation on the Ethereum blockchain is thousands and millions of times higher than the cost of performing the same functionality on Amazon Web Services. A developer can always create a “central” app or even a central currency for a fraction of the cost of doing the same on a decentralized platform because a decentralized platform, by definition, will have many iterations in its operations and storage.
Bitcoin can be thought of as the first, very basic, version of this global community-run cloud, though it is primarily used only to store and move the Bitcoin digital currency.
Ethereum is the second and slightly more sophisticated version, which expanded the basic principles of Bitcoin to create a more general computing and storage platform, though it is a raw technology, which hasn’t achieved meaningful mainstream adoption.

1.1 WHY IS IT IMPORTANT TO PAY THE EXTRA COST TO SUPPORT DECENTRALIZATION?

Because some elements of value, for example bits representing digital currency ownership, personal identity, or asset notes, are very sensitive. While in the central system, the following players can change the value of any credits they come into direct contact with:
  1. The developer who controls the release or update of the application’s code
  2. The platform where the data is stored
  3. The servers which run the application’s code
Even if none of these players intend to operate with bad faith, the actions of governments, police forces and hackers can easily turn their hands against their users and censor, modify or steal the balances they are supposed to protect.
A typical user will trust a typical centralized application, despite its potential vulnerabilities, with everyday data and computation. Typically, only banks and governments are trusted sufficiently to maintain custody of the most sensitive information — balances of wealth and identity. But these entities are also subject to the very human forces of hubris, corruption and theft.
Especially after the 2008 global financial crisis, which demonstrated the fundamental problems of confidence in a highly indebted banking system. And governments around the
world apply significant capital controls to citizens during times of crisis. After these examples, it has become a truism that hackers now own most or all of your sensitive data.
These decentralized applications operate on a more complex infrastructure than today’s web but they have access to an instantaneous and global pool of currency, value and information that today’s web, where data is stored in the silos of individual corporations, cannot provide.

1.2 THE CHALLENGES OF CREATING A DECENTRALIZED CLOUD

A community-run system like this has very different challenges from centralized “cloud” infrastructure, which is running by a single entity or group of known entities. For example:
  1. It must be both inclusive to anyone and secure from manipulation or capture.
  2. Participants must be fairly compensated for their work while avoiding creating incentives for negligent or malicious behavior.
  3. It must be both game theoretically secure so good actors find the right equilibrium and resistant to manipulation so bad actors are actively prevented from negatively affecting the system.

2. NEAR

NEAR is a global community-run computing and storage cloud which is organized to be permissionless and which is economically incentivized to create a strong and decentralized data layer for the new web.
Essentially, it is a platform for running applications which have access to a shared — and secure — pool of money, identity and data which is owned by their users. More technically, it combines the features of partition-resistant networking, serverless compute and distributed storage into a new kind of platform.
NEAR is a community-managed, decentralized cloud storage and computing platform, designed to enable the open web in the future. It uses the same core technology for Bitcoin and Blockchain. On this web, everything can be created from new currencies to new applications to new industries, opening the door to an entirely new future.
NEAR is a decentralized community-run cloud computing and storage platform, which is designed to enable the open web of the future. On this web, everything from new currencies to new applications to new industries can be created, opening the door to a brand new future.
NEAR is a scalable computing and storage platform with the potential to change how systems are designed, how applications are built and how the web itself works.
It is a complex technology allow developers and entrepreneurs to easily and sustainably build applications which reap the benefits of decentralization and participate in the Open Web while minimizing the associated costs for end users.
NEAR creates the only community-managed cloud that is strong enough to power the future of the open web, as NEAR is designed from the ground up to deliver intuitive experiences to
end users, expand capacity across millions of devices, and provide developers with new and sustainable business models for their applications.
The NEAR Platform uses a token — also called “NEAR”. This token allows the users of these cloud resources, regardless of where they are in the world, to fairly compensate the providers of the services and to ensure that these participants operate in good faith.

2.1 WHY NEAR?

Through focus, we find that Platforms based on blockchain technologies like Bitcoin and Ethereum have made great progress and enriched the world with thousands of innovative applications spanning from games to decentralized financing.
However, these original networks and none of the networks that followed were not able to bridge the gap towards mainstream adoption of the applications created above them and do not provide this type of standard that fully supports the web.
This is a result of two key factors:
  1. System design
  2. Organization design
System design is relevant because the technical architecture of other platforms creates substantial problems with both usability and scalability which have made adoption nearly impossible by any but the most technical innovators. End-users experience 97–99% dropoff rates when using applications and developers find the process of creating and maintaining their applications endlessly frustrating.
Fixing these problems requires substantial and complex changes to current protocol architectures, something which existing organizations haven’t proven capable of implementing. Instead, they create multi-year backlogs of specification design and implementation, which result in their technology falling further and further behind.
NEAR’s platform and organization are architected specifically to solve the above-mentioned problems. The technical design is fanatically focused on creating the world’s most usable and scalable decentralized platform so global-scale applications can achieve real adoption. The organization and governance structure are designed to rapidly ship and continuously evolve the protocol so it will never become obsolete.

2.1.1 Features, which address these problems:

1. USABILITY FIRST
The most important problem that needs to be addressed is how to allow developers to create useful applications that users can use easily and that will capture the sustainable value of these developers.
2. End-User Usability
Developers will only build applications, which their end users can actually use. NEAR’s “progressive security” model allows developers to create experiences for their users which more closely resemble familiar web experiences by delaying onboarding, removing the need for user to learn “blockchain” concepts and limiting the number of permission-asking interactions the user must have to use the application.
1. Simple Onboarding: NEAR allows developers to take actions on behalf of their users, which allows them to onboard users without requiring these users to provide a wallet or interact with tokens immediately upon reaching an application. Because accounts keep track of application-specific keys, user accounts can also be used for the kind of “Single Sign On” (SSO) functionality that users are familiar with from the traditional web (eg “Login with Facebook/Google/Github/etc”).
2. Easy Subscriptions: Contract-based accounts allow for easy creation of subscriptions and custom permissioning for particular applications.
3. Familiar Usage Styles: The NEAR economic model allows developers to pay for usage on behalf of their users in order to hide the costs of infrastructure in a way that is in line with familiar web usage paradigms.
4. Predictable Pricing: NEAR prices transactions on the platform in simple terms, which allow end-users to experience predictable pricing and less cognitive load when using the platform.

2.1.2 Design principles and development NEAR’s platform

1. Usability: Applications deployed to the platform should be seamless to use for end users and seamless to create for developers. Wherever possible, the underlying technology itself should fade to the background or be hidden completely from end users. Wherever possible, developers should use familiar languages and patterns during the development process. Basic applications should be intuitive and simple to create while applications that are more robust should still be secure.
2. Scalability: The platform should scale with no upper limit as long as there is economic justification for doing so in order to support enterprise-grade, globally used applications.
3. Sustainable Decentralization: The platform should encourage significant decentralization in both the short term and the long term in order to properly secure the value it hosts. The platform — and community — should be widely and permissionlessly inclusive and actively encourage decentralization and participation. To maintain sustainability, both technological and community governance mechanisms should allow for practical iteration while avoiding capture by any single parties in the end.
4. Simplicity: The design of each of the system’s components should be as simple as possible in order to achieve their primary purpose. Optimize for simplicity, pragmatism and ease of understanding above theoretical perfection.

2.2 HOW NEAR WORKS?

NEAR’s platform provides a community-operated cloud infrastructure for deploying and running decentralized applications. It combines the features of a decentralized database with others of a serverless compute platform. The token, which allows this platform to run also, enables applications built on top of it to interact with each other in new ways. Together, these features allow developers to create censorship resistant back-ends for applications that deal with high stakes data like money, identity, assets, and open-state components, which interact seamlessly with each other. These application back-ends and components are called “smart contracts,” though we will often refer to these all as simply “applications” here.
The infrastructure, which makes up this cloud, is created from a potentially infinite number of “nodes” run by individuals around the world who offer portions of their CPU and hard drive space — whether on their laptops or more professionally deployed servers. Developers write smart contracts and deploy them to this cloud as if they were deploying to a single server, which is a process that feels very similar to how applications are deployed to existing centralized clouds.
Once the developer has deployed an application, called a “smart contract”, and marked it unchangeable (“immutable”), the application will now run for as long as at least a handful of members of the NEAR community continue to exist. When end users interact with that deployed application, they will generally do so through a familiar web or mobile interface just like any one of a million apps today.
In the central cloud hosted by some companies today like: Amazon or Google, developers pay for their apps every month based on the amount of usage needed, for example based on the number of requests created by users visiting their webpages. The NEAR platform similarly requires that either users or developers provide compensation for their usage to the community operators of this infrastructure. Like today’s cloud infrastructure, NEAR prices usage based on easy to understand metrics that aren’t heavily influenced by factors like system congestion. Such factors make it very complicated for developers on alternative blockchain-based systems today.
In the centralized cloud, the controlling corporation makes decisions unilaterally. NEAR community-run cloud is decentralized so updates must ultimately be accepted by a sufficient quorum of the network participants. Updates about its future are generated from the community and subject to an inclusive governance process, which balances efficiency and security.
In order to ensure that the operators of nodes — who are anonymous and potentially even malicious — run the code with good behavior, they participate in a staking process called “Proof of Stake”. In this process, they willingly put a portion of value at risk as a sort of deposit, which they will forfeit if it is proven that they have operated improperly.

2.2.1 Elements of the NEAR’s Platform

The NEAR platform is made up of many separate elements. Some of these are native to the platform itself while others are used in conjunction with or on top of it.
1. THE NEAR TOKEN
NEAR token is the fundamental native asset of the NEAR ecosystem and its functionality is enabled for all accounts. Each token is a unique digital asset similar to Ether, which can be used to:
a) Pay the system for processing transactions and storing data.
b) Run a validating node as part of the network by participating in the staking process.
c) Help determine how network resources are allocated and where its future technical direction will go by participating in governance processes.
The NEAR token enables the economic coordination of all participants who operate the network plus it enables new behaviors among the applications which are built on top of that network.
2. OTHER DIGITAL ASSETS
The platform is designed to easily store unique digital assets, which may include, but aren’t limited to:
  • Other Tokens: Tokens bridged from other chains (“wrapped”) or created atop the NEAR Platform can be easily stored and moved using the underlying platform. This allows many kinds of tokens to be used atop the platform to pay for goods and services. “Stablecoins,” specific kinds of token which are designed to match the price of another asset (like the US Dollar), are particularly useful for transacting on the network in this way.
  • Unique Digital Assets: Similar to tokens, digital assets (sometimes called “Non Fungible Tokens” (NFTs) ranging from in-game collectibles to representations of real-world asset ownership can be stored and moved using the platform.
3. THE NEAR PLATFORM
The core platform, which is made up of the cloud of community-operated nodes, is the most basic piece of infrastructure provided. Developers can permissionlessly deploy smart contracts to this cloud and users can permissionlessly use the applications they power. Applications, which could range from consumer-facing games to digital currencies, can store their state (data) securely on the platform. This is conceptually similar to the Ethereum platform.
Operations that require an account, network use, or storage at the top of the platform require payment to the platform in the form of transaction fees that the platform then distributes to its community from the authentication contract. These operations could include creating new accounts, publishing new contracts, implementing code by contract and storing or modifying data by contract.
As long as the rules of the protocol are followed, any independent developer can write software, which interfaces with it (for example, by submitting transactions, creating accounts or even running a new node client) without asking for anyone’s permission first.
4. THE NEAR DEVELOPMENT SUITE
Set of tools and reference implementations created to facilitate its use by those developers and end users who prefer them. These tools include:
  • NEAR SDKs: NEAR platform supports (Rust and AssemblyScript) languages to write smart contracts. To provide a great experience for developers, NEAR has a full SDK, which includes standard data structures, examples and testing tools for these two languages.
  • Gitpod for NEAR: NEAR uses existing technology Gitpod to create zero time onboarding experience for developers. Gitpod provides an online “Integrated Development Environment” (IDE), which NEAR customized to allow developers to easily write, test and deploy smart contracts from a web browser.
  • NEAR Wallet: A wallet is a basic place for developers and end users to store the assets they need to use the network. NEAR Wallet is a reference implementation that is intended to work seamlessly with the progressive security model that lets application developers design more effective user experiences. It will eventually include built-in functionality to easily enable participation by holders in staking and governance processes on the network.
  • NEAR Explorer: To aid with both debugging of contracts and the understanding of network performance, Explorer presents information from the blockchain in an easily digestible web-based format.
  • NEAR Command Line Tools: The NEAR team provides a set of straightforward command line tools to allow developers to easily create, test and deploy applications from their local environments.
All of these tools are being created in an open-source manner so they can be modified or deployed by anyone.

3. ECONOMIC

Primarily economic forces drive the ecosystem, which makes up the NEAR platform. This economy creates the incentives, which allow participants permissionlessly organize to drive the platform’s key functions while creating strong disincentives for undesirable, irresponsible or malicious behavior. In order for the platform to be effective, these incentives need to exist both in the short term and in the long term.
The NEAR platform is a market among participants interested in two aspects:
  • On the supply side, certification contract operators and other core infrastructure must be motivated to provide these services that make up the community cloud.
  • On the demand side, platform developers and end-users who pay for their use need to be able to do so in a simple, clear and consistent way that helps them.
Further, economic forces can also be applied to support the ecosystem as a whole. They can be used at a micro level to create new business models by directly compensating the developers who create its most useful applications. They can also be used at a macro level by coordinating the efforts of a broader set of ecosystem participants who participate in everything from education to governance.

3.1 NEAR ECONOMY DESIGN PRINCIPLES

NEAR’s overall system design principles are used to inform its economic design according to the following interpretations:
1. Usability: End users and developers should have predictable and consistent pricing for their usage of the network. Users should never lose data forever.
2. Scalability: The platform should scale at economically justified thresholds.
3. Simplicity: The design of each of the system’s components should be as simple as possible in order to achieve their primary purpose.
4. Sustainable Decentralization: The barrier for participation in the platform as a validating node should be set as low as possible in order to bring a wide range of participants. Over time, their participation should not drive wealth and control into the hands of a small number. Individual transactions made far in the future must be at least as secure as those made today in order to safeguard the value they modify.

3.2 ECONOMIC OVERVIEW

The NEAR economy is optimized to provide developers and end users with the easiest possible experience while still providing proper incentives for network security and ecosystem development.
Summary of the key ideas that drive the system:
  • Thresholded Proof of Stake: Validating node operators provide scarce and valuable compute resources to the network. In order to ensure that the computations they run are correct, they are required to “stake” NEAR tokens, which guarantee their results. If these results are found to be inaccurate, the staker loses their tokens. This is a fundamental mechanism for securing the network. The threshold for participating in the system is set algorithmically at the lowest level possible to allow for the broadest possible participation of validating nodes in a given “epoch” period (½ of a day).
  • Epoch Rewards: Node operators are paid for their service a fixed percentage of total supply as a “security” fee of roughly 4.5% annualized. This rate targets sufficient participation levels among stakers in order to secure the network while balancing with other usage of NEAR token in the ecosystem.
  • Protocol treasury: In addition to validators, protocol treasury received a 0.5% of total supply annually to continuously re-invest into ecosystem development.
  • Transaction Costs: Usage of the network consumes two separate kinds of resources — instantaneous and long term. Instantaneous costs are generated by every transaction because each transaction requires the usage of both the network itself and some of its computation resources. These are priced together as a mostly-predictable cost per transaction, which is paid in NEAR tokens.
  • Storage Costs: Storage is a long term cost because storing data represents an ongoing burden to the nodes of the network. Storage costs are covered by maintaining minimum balance of NEAR tokens on the account or contract. This provides indirect mechanism of payment via inflation to validators for maintaining contract and account state on their nodes.
  • Inflation: Inflation is determined as combination of payouts to validators and protocol treasury minus the collected transaction fees and few other NEAR burning mechanics (like name auction). Overall the maximum inflation is 5%, which can go down over time as network gets more usage and more transactions fees are burned. It’s possible that inflation becomes negative (total supply decreases) if there is enough fees burned.
  • Scaling Thresholds: In a network, which scales its capacity relative to the amount of usage it receives, the thresholds, which drive the network to bring on additional capacity are economic in nature.
  • Security Thresholds: Some thresholds, which provide for good behavior among participants are set using economic incentives. For example, “Fishermen” (described separately).
Full Report
submitted by CoinEx_Institution to Coinex [link] [comments]

How my dorm became a drug superhighway.

The year was 2012, and we were all supposed to die in December. It was my freshman year of college. I was settling in quite well. I made friends with a bunch of people in our residence hall, we hit it off immediately. We started going out on the weekends, starting with thirsty Thursday, which turns out is actually a thing. I had more than one room mate. We lived in a four person suite with two bedrooms. I had a full ride to my University, so I had a lot of extra money to spend on my living arrangements and meal plan. Oh yeah, I was also a huge pothead.
I made friends with the dealer on my floor and started buying him extra meals in exchange for weed. That's when one of my room mates came to me with a proposition. He asked me if I knew what bitcoins were. I did not. He explained the virtual currency and how it worked. Then he really laid it all out. He told me that he had quite a lot of bitcoins and that he wants to get into selling weed. It all sounded great, but I wasn't sure what he needed me for. He then told me that he doesn't really talk to anyone and that he always sees me with people and going to parties every weekend. Okay, this makes sense. He told me how the operation would work, and it sounded swell. For the record, I was eighteen and very stupid. Anyway, he would purchase the drugs from the Silk Road, a dark website where you can buy literally fucking anything. Our friend Noah would then get the goods delivered to his apartment, which had a mailroom with hundreds of mailboxes. This was good because it would be just a little bit less suspicious, also his apartment was not on our campus. Then we'd package everything there and move it to our dorm, which had it's own security. We lived in North Philadelphia, so the security and police were always looking out for the students. After we safely had the products, I would find the buyers.
Our first shipment went well. We ordered a half pound of weed, a gram of hash, ten hits of LSD, a small bag of opium (for us), and 1000mg of Alprazolam extract for my room mate's personal anxiety treatment. We got into this business to become weed salesmen. That weed took forever to sell. Everyone who sold weed already had good connections from their hometowns. The LSD though, that sold in five fucking minutes to one buyer who was interested in buying much more than ten hits. He asked us if we could sell him a couple hundred tabs. He said he'd pay $350 for each sheet of 100. We looked at the price per sheet on the Silk Road. It would cost us only $80 each. Yes sir, we can absolutely sell you a couple sheets. We told him we'd call him when it arrived. Later that night we brewed some opium tea and celebrated entering the LSD business. We bought the sheets for him, and we also bought two extras in case anyone else wanted some.
The next shipment came with no problems. Our friend came over and bought the sheets we had promised him. We made nearly $800 on that deal. We thought that was a lot, so we celebrated. Later that same day, while smoking a blunt in our courtyard, I made friends with some art students. They invited me to their dorm on the third floor. I agreed, went with them, and we listened to music and painted the walls of the dorm room which was super against the rules. They started talking about how they had taken magic mushrooms two weeks before and how it was life changing. I told them I had two-hundred hits of acid in my room. I've never seen people get so excited in my entire life. They bought all of it. They paid $400 for each sheet. Seemingly out of nowhere we made $600. Again, we thought this was a lot.
My room mate was really happy with my networking abilities. Dude, I was just getting high with some hipster art students. I didn't really possess the "networking skills" that everyone thought I had. We went online and purchased another five sheets. We started getting a bit more confident in our ability to sell this magic money making paper. That week I was in one of my classes and had to do a group project with a kid named Eddy. We went to his apartment to work on the project after class. Eddy had an apartment off campus because he was an upperclassman. On the way he asked if I smoked weed. Of course. He said he had something to show me. When we got there he showed me a small weed plant he was growing. It was an adorable little plant in a flower pot by the window. I asked if he needed any weed and he said that he did not. We smoked a bit and then her offered me a Xanax. I had never taken Xanax, so I googled the pill he offered me. Alprazolam. Huh, that's funny. I told him I had 1000mg of alprazolam in my room. This excited him.
I asked my room mate if he was willing to sell some of his private stash. Eddy only wanted to buy around 100 milligrams. He agreed and I brought Eddy to my dorm. We gave it to him for the cool price of $150, a slick markdown from what he was paying. After all we hadn't even planned on selling that stuff. He asked how we got it so cheap and if we could get anything else. We told him that we sell LSD. He said he loves hallucinogens and would love to purchase a sheet, so he did. Four sheets left. If we sell them, we can get a new and faster computer.
The weekend came and I was hanging out with two of my friends from our residence hall. Joe, who was really chill and loved smoking weed as much as I did. And Bianca, who was so cool that it frightened me. She was really intimidating. I had a huge crush on her, but she was "talking" to a kid that lived in Johnson and Hardwick hall. Bianca was the type of person you see in movies about cool kids doing cool things. A character who has a lot of depth, but it takes nearly the whole movie to slowly peel back the layers, and by that time you're in love. I told her if we sold the rest of our acid I'd buy her a new tattoo. She was covered in them. That night Joe was going to take us to his friend Jamie's house. We were going to try cocaine for the first time. I was terrified. Not only was I terrified about trying cocaine, but I was scared of doing it with Bianca. I just didn't know how I would act, and I didn't want to do something stupid.
We arrived at Jamie's house. Jamie was also intimidating. His house was what your typical trap house looked like at the time, with a bunch of really expensive music equipment. Everybody wanted to be a rapper or a D.J. that year. He introduced all his friends and offered us lines of coke. Here we go. Joe went first, he'd already done some before. Bianca went next without hesitation. Now it was my turn. I remember my hand shaking with the rolled up bill between my fingers. I chose the smallest line and sniffed. It did not taste anything like I expected. Five minutes went by. Oh, this is what cocaine is like. It was so underwhelming. It was also some thoroughly stepped on shit. I know that now because since then I've done some foreign blow that literally almost made my heart stop. Anyway, Jamie and I got to talking, mostly about his "music career". Jamie told me if I ever wanted to buy cocaine in bulk to hit him up. I laughed and told him if he ever wanted to buy LSD in bulk to hit me up. I was half joking. He looked at me with the straightest face and asked if I was serious. Honestly, this Jamie guy really scared the shit out of me. He was a good ten inches taller than me and the whole scene was really starting to freak me out. I told him I was serious though. He told me to come with him.
He brought me into his room and closed the door. In the room it was quiet. The walls were sound proofed. I looked around and the room was full of money, cocaine, and guns. Okay, he's probably not going to kill me. I hope. He then asked about my LSD connection. I told him I could get sheets for $350. He said he wanted books. Books? This guy wants books? I didn't know this at the time, but a book is a thousand hits of LSD. I told him I had to talk to some people and I would let him know the price, but that I could definitely make it happen. We went back into the party and he gave me line after line of cocaine. Joe offered him money for the lines, but Jamie told him not to pay. He said your friend here bought you guys as much coke as you want for the night. Honestly, that made me feel really cool. After the party I talked to my room mate and told him what happened. We looked up the price of a book on the Silk Road. $300. Not only could we have saved a lot of money if we had just bought a book from the start, but we were going to make a lot more money selling by the book. The days of getting excited over $800 were about to come to an abrupt end.
I talked to Jamie and asked how much he would be willing to pay for each book. He said he would pay no more than $3000 for each book. We decided we would sell him the books for $2,800 each. He agreed and asked how many we had. I said we can start with five books. He agreed. This was perfect. Not only were we about to make more money than we had ever expected, but acid was incredibly easy to ship. They were basically sheets of paper. Our supplier used to send it to us in between the pages of large children's coloring books. The books, or prints, as our supplier called them, blended with the kid's books very well. Our prints consisted of a large picture of Bart Simpson, The Grateful Dead bears, and a double rainbow portrait. If you didn't know what acid was, you wouldn't know these were drugs. We made nearly $14,000 from that first deal.
Over the course of a few months we would sell close to thirty-thousand hits of LSD. We had $75,000 in cash sitting in an empty bedroom at Noah's apartment. I stopped going to class. My room mate had filled his entire room with computer parts and instruments. Noah, well we didn't really see him much, but he was always present when we needed a shipment. We broke our cardinal rule of not getting high on our own supply. We took a lot of acid that semester. It was an extremely enlightening period for us. Things in my world began to take on entirely new meaning. I had a newfound appreciation for things I had never noticed. The connections with my friends became very strong and we talked about a lot of stuff that was just too deep for my other peers to even scratch the surface of. It was nice.
By my birthday in February we had over $200,000 in cash. We didn't die in December, not that I thought we would, but some people were legitimately surprised. They were mostly art students. Things started getting a little crazy. My room mate and I were taking a lot of Xanax by this time and a lot of nights celebrating were never logged as memories. We always told ourselves we would only sell LSD. We had sparked a huge psychedelic scene in and around Philadelphia. There were literally parties where everyone was tripping acid. Many groups of people began taking acid and doing really creative stuff that I admired so much. So much good music and art was around during that period. I felt like I was living in San Fransisco in the middle 60's. It felt like we were part of this incredible scene that nobody outside of the city knew about. Of course every wave has to break and roll back.
It was getting close to the summer. I hadn't been to class in months. We hadn't seen Noah since the previous shipment about a month prior. It was a regular weekday, but I wasn't going to class, so I took two hits of acid. I spent most of that evening and night writing and yapping into my tape recorder. I was on the subject of togetherness and how there are so many things that are so incredible that we never notice even though they're right in front of us. Acid talk. I was looking at a glass of water, thinking about its importance, and how so many of us take it for granted. That's when my room mate came home. This was my room mate though. Remember, we had a two bedroom, four person suite. My room mate, who was never involved in our operation. He was obliterated, and not from alcohol. This was something else. He limped into the room and collapsed on the bed. I immediately got the rest of my room mates together. That's when Christian told me what transpired earlier while I was locked in the bedroom tripping acid. He told me that my room mate had broken up with his girlfriend, took an entire bottle of lorazepam, and tried to cut his leg open with my biology scalpel. What the fuck.
I examined his leg and he did not try to cut it open, he succeeded. He had a gigantic cut all the way down his lower leg that was fixed up by his father who is a surgeon. His father then brought him back to the dorm. The condition he was in was terrifying. He was breathing, but not well. His heart rate was also very low and we had to monitor him for the remainder of the night, taking shifts to make sure he didn't stop breathing. I couldn't believe his father had brought him back in the condition he was in. The next morning I was exhausted. My room mate and I, the one with the bitcoins, left and went to Noah's apartment to relax for an hour. While we were gone Bianca was to watch over him with her room mate. When we got to Noah's we had a new problem. Noah hadn't gotten out of bed for what looked like weeks. He had ran out of his antidepressants and was in bad shape. At this point I checked out. I walked into the living room and opened a bottle of champagne. I poured a glass, popped a Xanax, and sat on the sofa. I was still a little foggy from my acid trip and I hadn't slept all night. That's when my phone rang. It was Bianca.
I answered the phone and her first words were: "Your room is full of police.". Well, it's been a good run. On my desk were a couple thousand hits of LSD and a handgun. In the other bedroom were numerous unopened box's of expensive computer parts, scales and drug paraphernalia galore, and a large pile of white powdered alprazolam. That room also smelled heavily of weed because there was a half pound out in the open. We had gotten very sloppy. I asked her if my room mate was okay. She said that's why the police are there. She said his mom was trying to reach him and he wasn't answering her, so she called the police for a wellness check. Bianca then started talking to someone and hung up the phone.
We pondered whether or not to flee the country and become outlaws. We did after all have all the cash here at Noah's. Close to a million dollars. Maybe more. Because we were getting sloppy, we had also started selling hash, Xanax, LSD, 25i-NBOMe, 2c-b, 2c-i, 2c-E, Mescaline, cocaine, MDMA, MDA, LSA, clonazepam, ativan, and other various designer drugs. We were going down for a long time. I started thinking about my life. It literally was flashing before my eyes. I thought about my high school crush, and how I should have been more upfront with her about how much I liked her. I loved her. I thought about the time we slept in the same bed and I couldn't fall asleep because I couldn't believe she was really laying next to me. I remembered how I never wanted to wake up next to anyone else. I thought about my trivial crush on Bianca and how shallow it really was. I thought about my parents and how they'd raised me better. How they did so much for me so that I could go away to college and have a better life than they had. I thought about sitting on the beach last summer without a care in the world. The "problems" in my life that seemed hilarious now. Will I go to prom? Is my car cool enough? My k/d ratio in Call of Duty. How could so much happen in less than a year? That's when Bianca called me again.
I was terrified to pick up that phone. We looked outside to see if police were surrounding the apartment complex. They were not. I answered the phone. She said the police were gone. She had put my gun and LSD in my desk drawer. The police never entered the other bedroom. It was just a wellness check. An ambulance came and took my room mate. He was going to be okay. I hugged my partner in crime and we cried. I wish I could tell you we cleaned up our lives after that. My room mate with the bitcoins developed a really dangerous drug habit after that. He spent most of his money on drugs over the next few years. I went back to class after that summer, but stopped going again because I wanted to party instead and start a career as a writer. I failed out of college. Throughout the years I went on numerous adventures all around the world. I have hundreds of stories, I just have to write them. Oh and I have to learn how to write properly. I don't use a lot of drugs today, and I don't encourage people to use drugs. I have unfortunately lost many friends during the opiate epidemic. Weed is cool though, I like weed. I wouldn't tell people to smoke it, but I'll never shame someone for enjoying some cannabis. Actually, I don't really shame people for anything, it's just not my place to judge anyone. Feel free to judge me though, about how my dorm became a drug superhighway.

\*Thanks for reading, more stories available on my blog. There's a link on my profile.*

Edit: This story is based around actual events that I have experienced.
submitted by XleepyJoeBenzo to Drugs [link] [comments]

MetaDAO - update

MetaDAO - update
Wax on. Wax off.
Quick update on the MetaDAO concept and outreach to Edgeware one of the first Substrate based chains after Polkadot and Kusama.
Since the intial post, both Polkadot and Kusama have seen explosive growth, with Polkadot now #6 on Coingecko and Kusama #60. Edgeware is at #107 and all have treasuries to spend - c$8m in $EDG, c$6 $KSM and $38m $DOT.
The reaction to both the proposal and building bridges to Decred from the (small) Edgeware community has been positive - you can see an overview of last week's community call here on Commonwealth, which is their expanded version of something like Politeia and hosts various conversations and threads.
There is another call today at 2:45pm EST - you can join a google hangout here if you're interested. Hopefully the call will progress the conversations again.
So what values / characteristics do Decred and Edgeware have in common?
Well both are focused on governance, both launched aiming to offer a wide and fair distribution (info on lockdrop here) and both have treasuries that can sustain them long into the future.
There are also key differences.
Decred is older (and perhaps a little jaded) prioritising slow, careful progress that considers every action through the lens of unintended consequences with the aim of maximising privacy and security.
It is a philosophy rooted in the project's origins at Company 0 - see 'return to zero' and the north star of building a fairer financial system.
Edgeware is new on the scene, filled with excitement, enthusiasm and buckets of shower thoughts that would be shot down in an instant by the Decred community. The project will not be as secure or private as Decred but will move faster and can potentially become a bridge to the wider ecosystem, taking chances the older project can't (or won't)...
Now I'm showing my age, but when seen side by side, the two projects reminds me of the central relationship in the 80's classic The Karate Kid.
Mr Myagi is the old master weary of new things.
“Never put passion in front of principle, even if you win, you’ll lose”.
Daniel San is the young and impetuous grasshopper.
Together they achieve great things and teach other a few things along the way.
Aaaaanyway....
The next stage is to move the concept to a formalised proposal for Edgeware's council to vote on (it is an NPOS system) and a request for funding that can officially kick off the MetaDAO project and potential areas for collaboration and co-financing.
Post this, I will also submit a formal proposal to Politieia to hopefully gain stakeholder approval and gain extra insights along the way.
u/jet_user has suggested a few ideas here.
- Personally I'm interested in the "real stuff" that boosts autonomy and resilience of individuals: open hardware, UX improvement to solve that huge self-custody UX challenge, security audits (perhaps we use some common libraries), etc.
- devs in the smart contract land might borrow some elements of dcrdex's coin swap sequence (coordinating a peer-to-peer swap required to figure out a lot of ugly edge cases), or we could borrow something from them.
- new forum software with stronger transparency, integrity protection and data preservation properties that has Reddit-like UX but Politeia-like security and transparency.
- Another is crypto job market/bounty system/issue tracker combo to unlock the energy sitting on the sidelines and improve mass coordination.
I think Decred could integrate with Commonwealth for working group discussions ahead of Pi-Reddit and could perhaps also utilise the project's infrastructure for subDAOs ahead of being possible with Decred.
One other area that I'm particularly interested in is figuring out a way to bring alive the story of Open Source - a definitive history of the movement, it's achievements and the path to Bitcoin, Decred, et al but done in a contemporary (and cool) way that connects to a much bigger picture and is hosted on decentralised streaming infrastructure like Livepeer.
Right now it is still a story that most do not understand nor connect with.
Ultimately Decred was created to solve the funding issue in OSS so I feel it is an important piece of the puzzle that will aid in the project's broader awareness and understanding in the long term.
Until now all content about this revolution has been delivered in a very old school TV way - see Open Source Money.
submitted by monsieurbulb to decred [link] [comments]

Scaling Reddit Community Points with Arbitrum Rollup: a piece of cake

Scaling Reddit Community Points with Arbitrum Rollup: a piece of cake
https://preview.redd.it/b80c05tnb9e51.jpg?width=2550&format=pjpg&auto=webp&s=850282c1a3962466ed44f73886dae1c8872d0f31
Submitted for consideration to The Great Reddit Scaling Bake-Off
Baked by the pastry chefs at Offchain Labs
Please send questions or comments to [[email protected] ](mailto:[email protected])
1. Overview
We're excited to submit Arbitrum Rollup for consideration to The Great Reddit Scaling Bake-Off. Arbitrum Rollup is the only Ethereum scaling solution that supports arbitrary smart contracts without compromising on Ethereum's security or adding points of centralization. For Reddit, this means that Arbitrum can not only scale the minting and transfer of Community Points, but it can foster a creative ecosystem built around Reddit Community Points enabling points to be used in a wide variety of third party applications. That's right -- you can have your cake and eat it too!
Arbitrum Rollup isn't just Ethereum-style. Its Layer 2 transactions are byte-for-byte identical to Ethereum, which means Ethereum users can continue to use their existing addresses and wallets, and Ethereum developers can continue to use their favorite toolchains and development environments out-of-the-box with Arbitrum. Coupling Arbitrum’s tooling-compatibility with its trustless asset interoperability, Reddit not only can scale but can onboard the entire Ethereum community at no cost by giving them the same experience they already know and love (well, certainly know).
To benchmark how Arbitrum can scale Reddit Community Points, we launched the Reddit contracts on an Arbitrum Rollup chain. Since Arbitrum provides full Solidity support, we didn't have to rewrite the Reddit contracts or try to mimic their functionality using an unfamiliar paradigm. Nope, none of that. We launched the Reddit contracts unmodified on Arbitrum Rollup complete with support for minting and distributing points. Like every Arbitrum Rollup chain, the chain included a bridge interface in which users can transfer Community Points or any other asset between the L1 and L2 chains. Arbitrum Rollup chains also support dynamic contract loading, which would allow third-party developers to launch custom ecosystem apps that integrate with Community Points on the very same chain that runs the Reddit contracts.
1.1 Why Ethereum
Perhaps the most exciting benefit of distributing Community Points using a blockchain is the ability to seamlessly port points to other applications and use them in a wide variety of contexts. Applications may include simple transfers such as a restaurant that allows Redditors to spend points on drinks. Or it may include complex smart contracts -- such as placing Community Points as a wager for a multiparty game or as collateral in a financial contract.
The common denominator between all of the fun uses of Reddit points is that it needs a thriving ecosystem of both users and developers, and the Ethereum blockchain is perhaps the only smart contract platform with significant adoption today. While many Layer 1 blockchains boast lower cost or higher throughput than the Ethereum blockchain, more often than not, these attributes mask the reality of little usage, weaker security, or both.
Perhaps another platform with significant usage will rise in the future. But today, Ethereum captures the mindshare of the blockchain community, and for Community Points to provide the most utility, the Ethereum blockchain is the natural choice.
1.2 Why Arbitrum
While Ethereum's ecosystem is unmatched, the reality is that fees are high and capacity is too low to support the scale of Reddit Community Points. Enter Arbitrum. Arbitrum Rollup provides all of the ecosystem benefits of Ethereum, but with orders of magnitude more capacity and at a fraction of the cost of native Ethereum smart contracts. And most of all, we don't change the experience from users. They continue to use the same wallets, addresses, languages, and tools.
Arbitrum Rollup is not the only solution that can scale payments, but it is the only developed solution that can scale both payments and arbitrary smart contracts trustlessly, which means that third party users can build highly scalable add-on apps that can be used without withdrawing money from the Rollup chain. If you believe that Reddit users will want to use their Community Points in smart contracts--and we believe they will--then it makes the most sense to choose a single scaling solution that can support the entire ecosystem, eliminating friction for users.
We view being able to run smart contracts in the same scaling solution as fundamentally critical since if there's significant demand in running smart contracts from Reddit's ecosystem, this would be a load on Ethereum and would itself require a scaling solution. Moreover, having different scaling solutions for the minting/distribution/spending of points and for third party apps would be burdensome for users as they'd have to constantly shuffle their Points back and forth.
2. Arbitrum at a glance
Arbitrum Rollup has a unique value proposition as it offers a combination of features that no other scaling solution achieves. Here we highlight its core attributes.
Decentralized. Arbitrum Rollup is as decentralized as Ethereum. Unlike some other Layer 2 scaling projects, Arbitrum Rollup doesn't have any centralized components or centralized operators who can censor users or delay transactions. Even in non-custodial systems, centralized components provide a risk as the operators are generally incentivized to increase their profit by extracting rent from users often in ways that severely degrade user experience. Even if centralized operators are altruistic, centralized components are subject to hacking, coercion, and potential liability.
Massive Scaling. Arbitrum achieves order of magnitude scaling over Ethereum's L1 smart contracts. Our software currently supports 453 transactions-per-second for basic transactions (at 1616 Ethereum gas per tx). We have a lot of room left to optimize (e.g. aggregating signatures), and over the next several months capacity will increase significantly. As described in detail below, Arbitrum can easily support and surpass Reddit's anticipated initial load, and its capacity will continue to improve as Reddit's capacity needs grow.
Low cost. The cost of running Arbitrum Rollup is quite low compared to L1 Ethereum and other scaling solutions such as those based on zero-knowledge proofs. Layer 2 fees are low, fixed, and predictable and should not be overly burdensome for Reddit to cover. Nobody needs to use special equipment or high-end machines. Arbitrum requires validators, which is a permissionless role that can be run on any reasonable on-line machine. Although anybody can act as a validator, in order to protect against a “tragedy of the commons” and make sure reputable validators are participating, we support a notion of “invited validators” that are compensated for their costs. In general, users pay (low) fees to cover the invited validators’ costs, but we imagine that Reddit may cover this cost for its users. See more on the costs and validator options below.
Ethereum Developer Experience. Not only does Arbitrum support EVM smart contracts, but the developer experience is identical to that of L1 Ethereum contracts and fully compatible with Ethereum tooling. Developers can port existing Solidity apps or write new ones using their favorite and familiar toolchains (e.g. Truffle, Buidler). There are no new languages or coding paradigms to learn.
Ethereum wallet compatibility. Just as in Ethereum, Arbitrum users need only hold keys, but do not have to store any coin history or additional data to protect or access their funds. Since Arbitrum transactions are semantically identical to Ethereum L1 transactions, existing Ethereum users can use their existing Ethereum keys with their existing wallet software such as Metamask.
Token interoperability. Users can easily transfer their ETH, ERC-20 and ERC-721 tokens between Ethereum and the Arbitrum Rollup chain. As we explain in detail below, it is possible to mint tokens in L2 that can subsequently be withdrawn and recognized by the L1 token contract.
Fast finality. Transactions complete with the same finality time as Ethereum L1 (and it's possible to get faster finality guarantees by trading away trust assumptions; see the Arbitrum Rollup whitepaper for details).
Non-custodial. Arbitrum Rollup is a non-custodial scaling solution, so users control their funds/points and neither Reddit nor anyone else can ever access or revoke points held by users.
Censorship Resistant. Since it's completely decentralized, and the Arbitrum protocol guarantees progress trustlessly, Arbitrum Rollup is just as censorship-proof as Ethereum.
Block explorer. The Arbitrum Rollup block explorer allows users to view and analyze transactions on the Rollup chain.
Limitations
Although this is a bake-off, we're not going to sugar coat anything. Arbitrum Rollup, like any Optimistic Rollup protocol, does have one limitation, and that's the delay on withdrawals.
As for the concrete length of the delay, we've done a good deal of internal modeling and have blogged about this as well. Our current modeling suggests a 3-hour delay is sufficient (but as discussed in the linked post there is a tradeoff space between the length of the challenge period and the size of the validators’ deposit).
Note that this doesn't mean that the chain is delayed for three hours. Arbitrum Rollup supports pipelining of execution, which means that validators can keep building new states even while previous ones are “in the pipeline” for confirmation. As the challenge delays expire for each update, a new state will be confirmed (read more about this here).
So activity and progress on the chain are not delayed by the challenge period. The only thing that's delayed is the consummation of withdrawals. Recall though that any single honest validator knows immediately (at the speed of L1 finality) which state updates are correct and can guarantee that they will eventually be confirmed, so once a valid withdrawal has been requested on-chain, every honest party knows that the withdrawal will definitely happen. There's a natural place here for a liquidity market in which a validator (or someone who trusts a validator) can provide withdrawal loans for a small interest fee. This is a no-risk business for them as they know which withdrawals will be confirmed (and can force their confirmation trustlessly no matter what anyone else does) but are just waiting for on-chain finality.
3. The recipe: How Arbitrum Rollup works
For a description of the technical components of Arbitrum Rollup and how they interact to create a highly scalable protocol with a developer experience that is identical to Ethereum, please refer to the following documents:
Arbitrum Rollup Whitepaper
Arbitrum academic paper (describes a previous version of Arbitrum)
4. Developer docs and APIs
For full details about how to set up and interact with an Arbitrum Rollup chain or validator, please refer to our developer docs, which can be found at https://developer.offchainlabs.com/.
Note that the Arbitrum version described on that site is older and will soon be replaced by the version we are entering in Reddit Bake-Off, which is still undergoing internal testing before public release.
5. Who are the validators?
As with any Layer 2 protocol, advancing the protocol correctly requires at least one validator (sometimes called block producers) that is honest and available. A natural question is: who are the validators?
Recall that the validator set for an Arbitrum chain is open and permissionless; anyone can start or stop validating at will. (A useful analogy is to full nodes on an L1 chain.) But we understand that even though anyone can participate, Reddit may want to guarantee that highly reputable nodes are validating their chain. Reddit may choose to validate the chain themselves and/or hire third-party validators.To this end, we have begun building a marketplace for validator-for-hire services so that dapp developers can outsource validation services to reputable nodes with high up-time. We've announced a partnership in which Chainlink nodes will provide Arbitrum validation services, and we expect to announce more partnerships shortly with other blockchain infrastructure providers.
Although there is no requirement that validators are paid, Arbitrum’s economic model tracks validators’ costs (e.g. amount of computation and storage) and can charge small fees on user transactions, using a gas-type system, to cover those costs. Alternatively, a single party such as Reddit can agree to cover the costs of invited validators.
6. Reddit Contract Support
Since Arbitrum contracts and transactions are byte-for-byte compatible with Ethereum, supporting the Reddit contracts is as simple as launching them on an Arbitrum chain.
Minting. Arbitrum Rollup supports hybrid L1/L2 tokens which can be minted in L2 and then withdrawn onto the L1. An L1 contract at address A can make a special call to the EthBridge which deploys a "buddy contract" to the same address A on an Arbitrum chain. Since it's deployed at the same address, users can know that the L2 contract is the authorized "buddy" of the L1 contract on the Arbitrum chain.
For minting, the L1 contract is a standard ERC-20 contract which mints and burns tokens when requested by the L2 contract. It is paired with an ERC-20 contract in L2 which mints tokens based on whatever programmer provided minting facility is desired and burns tokens when they are withdrawn from the rollup chain. Given this base infrastructure, Arbitrum can support any smart contract based method for minting tokens in L2, and indeed we directly support Reddit's signature/claim based minting in L2.
Batch minting. What's better than a mint cookie? A whole batch! In addition to supporting Reddit’s current minting/claiming scheme, we built a second minting design, which we believe outperforms the signature/claim system in many scenarios.
In the current system, Reddit periodically issues signed statements to users, who then take those statements to the blockchain to claim their tokens. An alternative approach would have Reddit directly submit the list of users/amounts to the blockchain and distribute the tokens to the users without the signature/claim process.
To optimize the cost efficiency of this approach, we designed an application-specific compression scheme to minimize the size of the batch distribution list. We analyzed the data from Reddit's previous distributions and found that the data is highly compressible since token amounts are small and repeated, and addresses appear multiple times. Our function groups transactions by size, and replaces previously-seen addresses with a shorter index value. We wrote client code to compress the data, wrote a Solidity decompressing function, and integrated that function into Reddit’s contract running on Arbitrum.
When we ran the compression function on the previous Reddit distribution data, we found that we could compress batched minting data down to to 11.8 bytes per minting event (averaged over a 6-month trace of Reddit’s historical token grants)compared with roughly 174 bytes of on-chain data needed for the signature claim approach to minting (roughly 43 for an RLP-encoded null transaction + 65 for Reddit's signature + 65 for the user's signature + roughly 8 for the number of Points) .
The relative benefit of the two approaches with respect to on-chain call data cost depends on the percentage of users that will actually claim their tokens on chain. With the above figures, batch minting will be cheaper if roughly 5% of users redeem their claims. We stress that our compression scheme is not Arbitrum-specific and would be beneficial in any general-purpose smart contract platform.
8. Benchmarks and costs
In this section, we give the full costs of operating the Reddit contracts on an Arbitrum Rollup chain including the L1 gas costs for the Rollup chain, the costs of computation and storage for the L2 validators as well as the capital lockup requirements for staking.
Arbitrum Rollup is still on testnet, so we did not run mainnet benchmarks. Instead, we measured the L1 gas cost and L2 workload for Reddit operations on Arbitrum and calculated the total cost assuming current Ethereum gas prices. As noted below in detail, our measurements do not assume that Arbitrum is consuming the entire capacity of Ethereum. We will present the details of our model now, but for full transparency you can also play around with it yourself and adjust the parameters, by copying the spreadsheet found here.
Our cost model is based on measurements of Reddit’s contracts, running unmodified (except for the addition of a batch minting function) on Arbitrum Rollup on top of Ethereum.
On the distribution of transactions and frequency of assertions. Reddit's instructions specify the following minimum parameters that submissions should support:
Over a 5 day period, your scaling PoC should be able to handle:
  • 100,000 point claims (minting & distributing points)
  • 25,000 subscriptions
  • 75,000 one-off points burning
  • 100,000 transfers
We provide the full costs of operating an Arbitrum Rollup chain with this usage under the assumption that tokens are minted or granted to users in batches, but other transactions are uniformly distributed over the 5 day period. Unlike some other submissions, we do not make unrealistic assumptions that all operations can be submitted in enormous batches. We assume that batch minting is done in batches that use only a few percent on an L1 block’s gas, and that other operations come in evenly over time and are submitted in batches, with one batch every five minutes to keep latency reasonable. (Users are probably already waiting for L1 finality, which takes at least that long to achieve.)
We note that assuming that there are only 300,000 transactions that arrive uniformly over the 5 day period will make our benchmark numbers lower, but we believe that this will reflect the true cost of running the system. To see why, say that batches are submitted every five minutes (20 L1 blocks) and there's a fixed overhead of c bytes of calldata per batch, the cost of which will get amortized over all transactions executed in that batch. Assume that each individual transaction adds a marginal cost of t. Lastly assume the capacity of the scaling system is high enough that it can support all of Reddit's 300,000 transactions within a single 20-block batch (i.e. that there is more than c + 300,000*t byes of calldata available in 20 blocks).
Consider what happens if c, the per-batch overhead, is large (which it is in some systems, but not in Arbitrum). In the scenario that transactions actually arrive at the system's capacity and each batch is full, then c gets amortized over 300,000 transactions. But if we assume that the system is not running at capacity--and only receives 300,000 transactions arriving uniformly over 5 days-- then each 20-block assertion will contain about 200 transactions, and thus each transaction will pay a nontrivial cost due to c.
We are aware that other proposals presented scaling numbers assuming that 300,000 transactions arrived at maximum capacity and was executed in a single mega-transaction, but according to our estimates, for at least one such report, this led to a reported gas price that was 2-3 orders of magnitude lower than it would have been assuming uniform arrival. We make more realistic batching assumptions, and we believe Arbitrum compares well when batch sizes are realistic.
Our model. Our cost model includes several sources of cost:
  • L1 gas costs: This is the cost of posting transactions as calldata on the L1 chain, as well as the overhead associated with each batch of transactions, and the L1 cost of settling transactions in the Arbitrum protocol.
  • Validator’s staking costs: In normal operation, one validator will need to be staked. The stake is assumed to be 0.2% of the total value of the chain (which is assumed to be $1 per user who is eligible to claim points). The cost of staking is the interest that could be earned on the money if it were not staked.
  • Validator computation and storage: Every validator must do computation to track the chain’s processing of transactions, and must maintain storage to keep track of the contracts’ EVM storage. The cost of computation and storage are estimated based on measurements, with the dollar cost of resources based on Amazon Web Services pricing.
It’s clear from our modeling that the predominant cost is for L1 calldata. This will probably be true for any plausible rollup-based system.
Our model also shows that Arbitrum can scale to workloads much larger than Reddit’s nominal workload, without exhausting L1 or L2 resources. The scaling bottleneck will ultimately be calldata on the L1 chain. We believe that cost could be reduced substantially if necessary by clever encoding of data. (In our design any compression / decompression of L2 transaction calldata would be done by client software and L2 programs, never by an L1 contract.)
9. Status of Arbitrum Rollup
Arbitrum Rollup is live on Ethereum testnet. All of the code written to date including everything included in the Reddit demo is open source and permissively licensed under the Apache V2 license. The first testnet version of Arbitrum Rollup was released on testnet in February. Our current internal version, which we used to benchmark the Reddit contracts, will be released soon and will be a major upgrade.
Both the Arbitrum design as well as the implementation are heavily audited by independent third parties. The Arbitrum academic paper was published at USENIX Security, a top-tier peer-reviewed academic venue. For the Arbitrum software, we have engaged Trail of Bits for a security audit, which is currently ongoing, and we are committed to have a clean report before launching on Ethereum mainnet.
10. Reddit Universe Arbitrum Rollup Chain
The benchmarks described in this document were all measured using the latest internal build of our software. When we release the new software upgrade publicly we will launch a Reddit Universe Arbitrum Rollup chain as a public demo, which will contain the Reddit contracts as well as a Uniswap instance and a Connext Hub, demonstrating how Community Points can be integrated into third party apps. We will also allow members of the public to dynamically launch ecosystem contracts. We at Offchain Labs will cover the validating costs for the Reddit Universe public demo.
If the folks at Reddit would like to evaluate our software prior to our public demo, please email us at [email protected] and we'd be more than happy to provide early access.
11. Even more scaling: Arbitrum Sidechains
Rollups are an excellent approach to scaling, and we are excited about Arbitrum Rollup which far surpasses Reddit's scaling needs. But looking forward to Reddit's eventual goal of supporting hundreds of millions of users, there will likely come a time when Reddit needs more scaling than any Rollup protocol can provide.
While Rollups greatly reduce costs, they don't break the linear barrier. That is, all transactions have an on-chain footprint (because all calldata must be posted on-chain), albeit a far smaller one than on native Ethereum, and the L1 limitations end up being the bottleneck for capacity and cost. Since Ethereum has limited capacity, this linear use of on-chain resources means that costs will eventually increase superlinearly with traffic.
The good news is that we at Offchain Labs have a solution in our roadmap that can satisfy this extreme-scaling setting as well: Arbitrum AnyTrust Sidechains. Arbitrum Sidechains are similar to Arbitrum Rollup, but deviate in that they name a permissioned set of validators. When a chain’s validators agree off-chain, they can greatly reduce the on-chain footprint of the protocol and require almost no data to be put on-chain. When validators can't reach unanimous agreement off-chain, the protocol reverts to Arbitrum Rollup. Technically, Arbitrum Sidechains can be viewed as a hybrid between state channels and Rollup, switching back and forth as necessary, and combining the performance and cost that state channels can achieve in the optimistic case, with the robustness of Rollup in other cases. The core technical challenge is how to switch seamlessly between modes and how to guarantee that security is maintained throughout.
Arbitrum Sidechains break through this linear barrier, while still maintaining a high level of security and decentralization. Arbitrum Sidechains provide the AnyTrust guarantee, which says that as long as any one validator is honest and available (even if you don't know which one will be), the L2 chain is guaranteed to execute correctly according to its code and guaranteed to make progress. Unlike in a state channel, offchain progress does not require unanimous consent, and liveness is preserved as long as there is a single honest validator.
Note that the trust model for Arbitrum Sidechains is much stronger than for typical BFT-style chains which introduce a consensus "voting" protocols among a small permissioned group of validators. BFT-based protocols require a supermajority (more than 2/3) of validators to agree. In Arbitrum Sidechains, by contrast, all you need is a single honest validator to achieve guaranteed correctness and progress. Notice that in Arbitrum adding validators strictly increases security since the AnyTrust guarantee provides correctness as long as any one validator is honest and available. By contrast, in BFT-style protocols, adding nodes can be dangerous as a coalition of dishonest nodes can break the protocol.
Like Arbitrum Rollup, the developer and user experiences for Arbitrum Sidechains will be identical to that of Ethereum. Reddit would be able to choose a large and diverse set of validators, and all that they would need to guarantee to break through the scaling barrier is that a single one of them will remain honest.
We hope to have Arbitrum Sidechains in production in early 2021, and thus when Reddit reaches the scale that surpasses the capacity of Rollups, Arbitrum Sidechains will be waiting and ready to help.
While the idea to switch between channels and Rollup to get the best of both worlds is conceptually simple, getting the details right and making sure that the switch does not introduce any attack vectors is highly non-trivial and has been the subject of years of our research (indeed, we were working on this design for years before the term Rollup was even coined).
12. How Arbitrum compares
We include a comparison to several other categories as well as specific projects when appropriate. and explain why we believe that Arbitrum is best suited for Reddit's purposes. We focus our attention on other Ethereum projects.
Payment only Rollups. Compared to Arbitrum Rollup, ZK-Rollups and other Rollups that only support token transfers have several disadvantages:
  • As outlined throughout the proposal, we believe that the entire draw of Ethereum is in its rich smart contracts support which is simply not achievable with today's zero-knowledge proof technology. Indeed, scaling with a ZK-Rollup will add friction to the deployment of smart contracts that interact with Community Points as users will have to withdraw their coins from the ZK-Rollup and transfer them to a smart contract system (like Arbitrum). The community will be best served if Reddit builds on a platform that has built-in, frictionless smart-contract support.
  • All other Rollup protocols of which we are aware employ a centralized operator. While it's true that users retain custody of their coins, the centralized operator can often profit from censoring, reordering, or delaying transactions. A common misconception is that since they're non-custodial protocols, a centralized sequencer does not pose a risk but this is incorrect as the sequencer can wreak havoc or shake down users for side payments without directly stealing funds.
  • Sidechain type protocols can eliminate some of these issues, but they are not trustless. Instead, they require trust in some quorum of a committee, often requiring two-third of the committee to be honest, compared to rollup protocols like Arbitrum that require only a single honest party. In addition, not all sidechain type protocols have committees that are diverse, or even non-centralized, in practice.
  • Plasma-style protocols have a centralized operator and do not support general smart contracts.
13. Concluding Remarks
While it's ultimately up to the judges’ palate, we believe that Arbitrum Rollup is the bakeoff choice that Reddit kneads. We far surpass Reddit's specified workload requirement at present, have much room to optimize Arbitrum Rollup in the near term, and have a clear path to get Reddit to hundreds of millions of users. Furthermore, we are the only project that gives developers and users the identical interface as the Ethereum blockchain and is fully interoperable and tooling-compatible, and we do this all without any new trust assumptions or centralized components.
But no matter how the cookie crumbles, we're glad to have participated in this bake-off and we thank you for your consideration.
About Offchain Labs
Offchain Labs, Inc. is a venture-funded New York company that spun out of Princeton University research, and is building the Arbitrum platform to usher in the next generation of scalable, interoperable, and compatible smart contracts. Offchain Labs is backed by Pantera Capital, Compound VC, Coinbase Ventures, and others.
Leadership Team
Ed Felten
Ed Felten is Co-founder and Chief Scientist at Offchain Labs. He is on leave from Princeton University, where he is the Robert E. Kahn Professor of Computer Science and Public Affairs. From 2015 to 2017 he served at the White House as Deputy United States Chief Technology Officer and senior advisor to the President. He is an ACM Fellow and member of the National Academy of Engineering. Outside of work, he is an avid runner, cook, and L.A. Dodgers fan.
Steven Goldfeder
Steven Goldfeder is Co-founder and Chief Executive Officer at Offchain Labs. He holds a PhD from Princeton University, where he worked at the intersection of cryptography and cryptocurrencies including threshold cryptography, zero-knowledge proof systems, and post-quantum signatures. He is a co-author of Bitcoin and Cryptocurrency Technologies, the leading textbook on cryptocurrencies, and he has previously worked at Google and Microsoft Research, where he co-invented the Picnic signature algorithm. When not working, you can find Steven spending time with his family, taking a nature walk, or twisting balloons.
Harry Kalodner
Harry Kalodner is Co-founder and Chief Technology Officer at Offchain Labs where he leads the engineering team. Before the company he attended Princeton as a Ph.D candidate where his research explored economics, anonymity, and incentive compatibility of cryptocurrencies, and he also has worked at Apple. When not up at 3:00am writing code, Harry occasionally sleeps.
submitted by hkalodner to ethereum [link] [comments]

How my dorm became a drug superhighway.

The year was 2012, and we were all supposed to die in December. It was my freshman year of college. I was settling in quite well. I made friends with a bunch of people in our residence hall, we hit it off immediately. We started going out on the weekends, starting with thirsty Thursday, which turns out is actually a thing. I had more than one room mate. We lived in a four person suite with two bedrooms. I had a full ride to my University, so I had a lot of extra money to spend on my living arrangements and meal plan. Oh yeah, I was also a huge pothead.
I made friends with the dealer on my floor and started buying him extra meals in exchange for weed. That's when one of my room mates came to me with a proposition. He asked me if I knew what bitcoins were. I did not. He explained the virtual currency and how it worked. Then he really laid it all out. He told me that he had quite a lot of bitcoins and that he wants to get into selling weed. It all sounded great, but I wasn't sure what he needed me for. He then told me that he doesn't really talk to anyone and that he always sees me with people and going to parties every weekend. Okay, this makes sense. He told me how the operation would work, and it sounded swell. For the record, I was eighteen and very stupid. Anyway, he would purchase the drugs from the Silk Road, a dark website where you can buy literally fucking anything. Our friend Noah would then get the goods delivered to his apartment, which had a mailroom with hundreds of mailboxes. This was good because it would be just a little bit less suspicious, also his apartment was not on our campus. Then we'd package everything there and move it to our dorm, which had it's own security. We lived in North Philadelphia, so the security and police were always looking out for the students. After we safely had the products, I would find the buyers.
Our first shipment went well. We ordered a half pound of weed, a gram of hash, ten hits of LSD, a small bag of opium (for us), and 1000mg of Alprazolam extract for my room mate's personal anxiety treatment. We got into this business to become weed salesmen. That weed took forever to sell. Everyone who sold weed already had good connections from their hometowns. The LSD though, that sold in five fucking minutes to one buyer who was interested in buying much more than ten hits. He asked us if we could sell him a couple hundred tabs. He said he'd pay $350 for each sheet of 100. We looked at the price per sheet on the Silk Road. It would cost us only $80 each. Yes sir, we can absolutely sell you a couple sheets. We told him we'd call him when it arrived. Later that night we brewed some opium tea and celebrated entering the LSD business. We bought the sheets for him, and we also bought two extras in case anyone else wanted some.
The next shipment came with no problems. Our friend came over and bought the sheets we had promised him. We made nearly $800 on that deal. We thought that was a lot, so we celebrated. Later that same day, while smoking a blunt in our courtyard, I made friends with some art students. They invited me to their dorm on the third floor. I agreed, went with them, and we listened to music and painted the walls of the dorm room which was super against the rules. They started talking about how they had taken magic mushrooms two weeks before and how it was life changing. I told them I had two-hundred hits of acid in my room. I've never seen people get so excited in my entire life. They bought all of it. They paid $400 for each sheet. Seemingly out of nowhere we made $600. Again, we thought this was a lot.
My room mate was really happy with my networking abilities. Dude, I was just getting high with some hipster art students. I didn't really possess the "networking skills" that everyone thought I had. We went online and purchased another five sheets. We started getting a bit more confident in our ability to sell this magic money making paper. That week I was in one of my classes and had to do a group project with a kid named Eddy. We went to his apartment to work on the project after class. Eddy had an apartment off campus because he was an upperclassman. On the way he asked if I smoked weed. Of course. He said he had something to show me. When we got there he showed me a small weed plant he was growing. It was an adorable little plant in a flower pot by the window. I asked if he needed any weed and he said that he did not. We smoked a bit and then her offered me a Xanax. I had never taken Xanax, so I googled the pill he offered me. Alprazolam. Huh, that's funny. I told him I had 1000mg of alprazolam in my room. This excited him.
I asked my room mate if he was willing to sell some of his private stash. Eddy only wanted to buy around 100 milligrams. He agreed and I brought Eddy to my dorm. We gave it to him for the cool price of $150, a slick markdown from what he was paying. After all we hadn't even planned on selling that stuff. He asked how we got it so cheap and if we could get anything else. We told him that we sell LSD. He said he loves hallucinogens and would love to purchase a sheet, so he did. Four sheets left. If we sell them, we can get a new and faster computer.
The weekend came and I was hanging out with two of my friends from our residence hall. Joe, who was really chill and loved smoking weed as much as I did. And Bianca, who was so cool that it frightened me. She was really intimidating. I had a huge crush on her, but she was "talking" to a kid that lived in Johnson and Hardwick hall. Bianca was the type of person you see in movies about cool kids doing cool things. A character who has a lot of depth, but it takes nearly the whole movie to slowly peel back the layers, and by that time you're in love. I told her if we sold the rest of our acid I'd buy her a new tattoo. She was covered in them. That night Joe was going to take us to his friend Jamie's house. We were going to try cocaine for the first time. I was terrified. Not only was I terrified about trying cocaine, but I was scared of doing it with Bianca. I just didn't know how I would act, and I didn't want to do something stupid.
We arrived at Jamie's house. Jamie was also intimidating. His house was what your typical trap house looked like at the time, with a bunch of really expensive music equipment. Everybody wanted to be a rapper or a D.J. that year. He introduced all his friends and offered us lines of coke. Here we go. Joe went first, he'd already done some before. Bianca went next without hesitation. Now it was my turn. I remember my hand shaking with the rolled up bill between my fingers. I chose the smallest line and sniffed. It did not taste anything like I expected. Five minutes went by. Oh, this is what cocaine is like. It was so underwhelming. It was also some thoroughly stepped on shit. I know that now because since then I've done some foreign blow that literally almost made my heart stop. Anyway, Jamie and I got to talking, mostly about his "music career". Jamie told me if I ever wanted to buy cocaine in bulk to hit him up. I laughed and told him if he ever wanted to buy LSD in bulk to hit me up. I was half joking. He looked at me with the straightest face and asked if I was serious. Honestly, this Jamie guy really scared the shit out of me. He was a good ten inches taller than me and the whole scene was really starting to freak me out. I told him I was serious though. He told me to come with him.
He brought me into his room and closed the door. In the room it was quiet. The walls were sound proofed. I looked around and the room was full of money, cocaine, and guns. Okay, he's probably not going to kill me. I hope. He then asked about my LSD connection. I told him I could get sheets for $350. He said he wanted books. Books? This guy wants books? I didn't know this at the time, but a book is a thousand hits of LSD. I told him I had to talk to some people and I would let him know the price, but that I could definitely make it happen. We went back into the party and he gave me line after line of cocaine. Joe offered him money for the lines, but Jamie told him not to pay. He said your friend here bought you guys as much coke as you want for the night. Honestly, that made me feel really cool. After the party I talked to my room mate and told him what happened. We looked up the price of a book on the Silk Road. $300. Not only could we have saved a lot of money if we had just bought a book from the start, but we were going to make a lot more money selling by the book. The days of getting excited over $800 were about to come to an abrupt end.
I talked to Jamie and asked how much he would be willing to pay for each book. He said he would pay no more than $3000 for each book. We decided we would sell him the books for $2,800 each. He agreed and asked how many we had. I said we can start with five books. He agreed. This was perfect. Not only were we about to make more money than we had ever expected, but acid was incredibly easy to ship. They were basically sheets of paper. Our supplier used to send it to us in between the pages of large children's coloring books. The books, or prints, as our supplier called them, blended with the kid's books very well. Our prints consisted of a large picture of Bart Simpson, The Grateful Dead bears, and a double rainbow portrait. If you didn't know what acid was, you wouldn't know these were drugs. We made nearly $14,000 from that first deal.
Over the course of a few months we would sell close to thirty-thousand hits of LSD. We had $75,000 in cash sitting in an empty bedroom at Noah's apartment. I stopped going to class. My room mate had filled his entire room with computer parts and instruments. Noah, well we didn't really see him much, but he was always present when we needed a shipment. We broke our cardinal rule of not getting high on our own supply. We took a lot of acid that semester. It was an extremely enlightening period for us. Things in my world began to take on entirely new meaning. I had a newfound appreciation for things I had never noticed. The connections with my friends became very strong and we talked about a lot of stuff that was just too deep for my other peers to even scratch the surface of. It was nice.
By my birthday in February we had over $200,000 in cash. We didn't die in December, not that I thought we would, but some people were legitimately surprised. They were mostly art students. Things started getting a little crazy. My room mate and I were taking a lot of Xanax by this time and a lot of nights celebrating were never logged as memories. We always told ourselves we would only sell LSD. We had sparked a huge psychedelic scene in and around Philadelphia. There were literally parties where everyone was tripping acid. Many groups of people began taking acid and doing really creative stuff that I admired so much. So much good music and art was around during that period. I felt like I was living in San Fransisco in the middle 60's. It felt like we were part of this incredible scene that nobody outside of the city knew about. Of course every wave has to break and roll back.
It was getting close to the summer. I hadn't been to class in months. We hadn't seen Noah since the previous shipment about a month prior. It was a regular weekday, but I wasn't going to class, so I took two hits of acid. I spent most of that evening and night writing and yapping into my tape recorder. I was on the subject of togetherness and how there are so many things that are so incredible that we never notice even though they're right in front of us. Acid talk. I was looking at a glass of water, thinking about its importance, and how so many of us take it for granted. That's when my room mate came home. This was my room mate though. Remember, we had a two bedroom, four person suite. My room mate, who was never involved in our operation. He was obliterated, and not from alcohol. This was something else. He limped into the room and collapsed on the bed. I immediately got the rest of my room mates together. That's when Christian told me what transpired earlier while I was locked in the bedroom tripping acid. He told me that my room mate had broken up with his girlfriend, took an entire bottle of lorazepam, and tried to cut his leg open with my biology scalpel. What the fuck.
I examined his leg and he did not try to cut it open, he succeeded. He had a gigantic cut all the way down his lower leg that was fixed up by his father who is a surgeon. His father then brought him back to the dorm. The condition he was in was terrifying. He was breathing, but not well. His heart rate was also very low and we had to monitor him for the remainder of the night, taking shifts to make sure he didn't stop breathing. I couldn't believe his father had brought him back in the condition he was in. The next morning I was exhausted. My room mate and I, the one with the bitcoins, left and went to Noah's apartment to relax for an hour. While we were gone Bianca was to watch over him with her room mate. When we got to Noah's we had a new problem. Noah hadn't gotten out of bed for what looked like weeks. He had ran out of his antidepressants and was in bad shape. At this point I checked out. I walked into the living room and opened a bottle of champagne. I poured a glass, popped a Xanax, and sat on the sofa. I was still a little foggy from my acid trip and I hadn't slept all night. That's when my phone rang. It was Bianca.
I answered the phone and her first words were: "Your room is full of police.". Well, it's been a good run. On my desk were a couple thousand hits of LSD and a handgun. In the other bedroom were numerous unopened box's of expensive computer parts, scales and drug paraphernalia galore, and a large pile of white powdered alprazolam. That room also smelled heavily of weed because there was a half pound out in the open. We had gotten very sloppy. I asked her if my room mate was okay. She said that's why the police are there. She said his mom was trying to reach him and he wasn't answering her, so she called the police for a wellness check. Bianca then started talking to someone and hung up the phone.
We pondered whether or not to flee the country and become outlaws. We did after all have all the cash here at Noah's. Close to a million dollars. Maybe more. Because we were getting sloppy, we had also started selling hash, Xanax, LSD, 25i-NBOMe, 2c-b, 2c-i, 2c-E, Mescaline, cocaine, MDMA, MDA, LSA, clonazepam, ativan, and other various designer drugs. We were going down for a long time. I started thinking about my life. It literally was flashing before my eyes. I thought about my high school crush, and how I should have been more upfront with her about how much I liked her. I loved her. I thought about the time we slept in the same bed and I couldn't fall asleep because I couldn't believe she was really laying next to me. I remembered how I never wanted to wake up next to anyone else. I thought about my trivial crush on Bianca and how shallow it really was. I thought about my parents and how they'd raised me better. How they did so much for me so that I could go away to college and have a better life than they had. I thought about sitting on the beach last summer without a care in the world. The "problems" in my life that seemed hilarious now. Will I go to prom? Is my car cool enough? My k/d ratio in Call of Duty. How could so much happen in less than a year? That's when Bianca called me again.
I was terrified to pick up that phone. We looked outside to see if police were surrounding the apartment complex. They were not. I answered the phone. She said the police were gone. She had put my gun and LSD in my desk drawer. The police never entered the other bedroom. It was just a wellness check. An ambulance came and took my room mate. He was going to be okay. I hugged my partner in crime and we cried. I wish I could tell you we cleaned up our lives after that. My room mate with the bitcoins developed a really dangerous drug habit after that. He spent most of his money on drugs over the next few years. I went back to class after that summer, but stopped going again because I wanted to party instead and start a career as a writer. I failed out of college. Throughout the years I went on numerous adventures all around the world. I have hundreds of stories, I just have to write them. Oh and I have to learn how to write properly. I don't use a lot of drugs today, and I don't encourage people to use drugs. I have unfortunately lost many friends during the opiate epidemic. Weed is cool though, I like weed. I wouldn't tell people to smoke it, but I'll never shame someone for enjoying some cannabis. Actually, I don't really shame people for anything, it's just not my place to judge anyone. Feel free to judge me though, about how my dorm room became a drug superhighway.


**More stories are now available on my blog.
\**Top post of all time on* bartardstories. Thank you to my readers and most of all -- the haters. Thanks for reading.

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What is Bitcoin Mining? - YouTube Peer Group The Peer Group Impact  CEO Peer Groups from Vistage - YouTube Falscher Bitcoin Hack ist eigentlich Twitter Hack! Bitcoin Nova - YouTube

“Bitcoin Group,” in contrast to the revolution scam, turns up something different. The search term, which experienced a small spike in popularity again in January, seems to tie back to a ... When speaking about peers in a Bitcoin context, it is common to assume it is a reference to nodes. Nodes are in fact peers to each other. However, there is more than one type of peer in Bitcoin. We can see from the general definition of the word that a set of peers is defined by commonality. Putting it down in simple terms, the definition goes like this: bitcoin is a digital currency, existing only on internet. It can be considered as a file that is created and transferred around using computers, which are seen as bitcoin nodes. It is not governed by a single entity nor is an institution responsible for its value. It is completely decentralized asset that is moved by the market ... Ein Peer-to-Peer Netwerk arbeitet an der Blockchain – denn Proof-of-Work verspricht Profite. Damit genügend User Zeit und vor allem Rechenleistung in die Blockchain investieren, wird der Nachweis von Arbeit (Proof-of-Work) belohnt: Je mehr Rechenleistung und Arbeit in die Blockchain investiert werden, desto höher sind die Chancen, von Neuemissionen und Transaktionsentgelten zu profitieren. Bitcoin definition is - a digital currency created for use in peer-to-peer online transactions; also, usuallybitcoin : a unit of this currency. How to use Bitcoin in a sentence.

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What is Bitcoin Mining? - YouTube

Bitcoin Nova is a new start-up designed to work as a payment system Peer-to-Peer (P2P) focused on solving the energy problem associated with the Bitcoin platform, it works as a decentralized ... http://www.theaudiopedia.com The Audiopedia Android application, INSTALL NOW - https://play.google.com/store/apps/details?id=com.wTheAudiop... http://www.vistage.com/vistage-advantage/peer-group-meetings.aspx How does Vistage, the world's leading chief executive organization, help business leaders? ... Europol macht Mixingdienst Bestmixer.io dicht lautet die Nachricht vom 23.05.2019. Was sind Mixingdienste für Bitcoin & Co., wie kam Europol dahinter und was... The Hundred Million Satoshi Question: What is Bitcoin? Bitcoin is a peer to peer protocol that computers use to exchange tokens in a way that doesn't require...

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