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Op-Ed: An Open Letter to Yanis Varoufakis About Bitcoin

As a fan of former Greek finance minister Yanis Varoufakis’ work, I wanted to bring him up to speed on some of the changes that have happened in Bitcoin.

The post Op-Ed: An Open Letter to Yanis Varoufakis About Bitcoin appeared first on Bitcoin Magazine.

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Yanis Varoufakis was Greece’s finance minister during the Greek economic crisis. In 2012, he explored utilizing a blockchain-based system to help manage some of the crisis. Varoufakis has spoken critically about bitcoin publicly on many occasions, he understands the power of bitcoin but feels its economics is dangerous. 

During a Twitter thread on Bitcoiners engaging with people outside of our usual circles, I suggested Varoufakis, who, as a Keynesian, has clearly seen value in some aspects of Bitcoin. Rather poetically he retweeted the thread. 

I wanted to write a short letter bringing him up to speed on some of the changes that have happened in Bitcoin, and whether the functionality now available will impact his opinions.

“The economy is too important to leave to the economists”

– Yanis Varoufakis


Dear Mr Varoufakis,

For a long time Bitcoin has pricked your interest, but after analysis of its economics you have been left with serious and very valid concerns, such as its deflationary issuance, and its ability to disarm governments from using money to stimulate the economy.

“powerful tendency to underestimate the ill-effects of deflation on a social economy”

https://yanisvaroufakis.eu/2014/02/15/bitcoin-a-flawed-currency-blueprint-with-a-potentially-useful-application-for-the-eurozone/

“there can be no de-politicised currency capable of ‘powering’ an advanced, industrial society.”

https://yanisvaroufakis.eu/2013/04/22/bitcoin-and-the-dangerous-fantasy-of-apolitical-money/

As a great supporter of your work, I hope to address some of those concerns. I know you explored implementing a blockchain-centric solution during the Greek crisis, and that you are no stranger to the technology of Bitcoin or its tenets, so forgive me if I cover a few things you already know.

One of the computer-science solutions that makes Bitcoin possible is that it is free and open-source software, a sort of cooperative for software development and a direct response to the privatization of computer science during the early 1980s. Suggestions for improvements to the Bitcoin protocol are developed publicly. Anyone can contribute to Bitcoin, but for their contribution to be successful they must go through the arduous task of proving scientifically why a change is necessary, and trying to find consensus amongst Bitcoin’s users. Changes are accepted by the network through the software the users choose to run, and in this way the users of Bitcoin decide how it is defined.

Bitcoin is always in flux, forever changing, so our judgements about Bitcoin must also change. 

It is important to note a number of impressive advancements that have happened over the past few years, namely the second-layer solutions pegged to Bitcoin made possible by a malleability fix in 2017. The most popular of these second-layer solutions is the Lightning Network, which is based on a concept first suggested by Satoshi Nakamoto, that a transaction can be securely held open for a period of time, and updated, before being committed to the blockchain. These “held” transactions (payment channels) can have value move within them quickly and easily. The Lightning Network is a bunch of payment channels all networked together. I can send value to you securely, privately, very quickly and for almost no cost through the network without having to have a direct channel to you, a bit like people passing information between degrees of separation.

Pegged protocols such as the Lightning Network mean on-chain Bitcoin transactions can be used for much more than just moving value from one person to another. The underlying blockchain should be seen as an irrefutable timeline, to which truths can be pegged. This extends beyond value transfer, and many further commodity uses for the world’s most digitally-secure and scarce data are being explored.

While we can question the ability of Bitcoin’s deflationary curve to make a good system of money, its ability to bootstrap a community of users, businesses, investors and those willing to secure the network (miners) has proven successful. 

The question for Bitcoin in the future will be, do the users want to keep its deflationary curve or update the protocol to a more natively usable rate of inflation, or do they want that functionality outsourced to a pegged second-layer protocol?

Changing the Bitcoin protocol would involve that scientific and democratic method of seeking consensus from its users, which could prove impossible in this scenario, but that doesn’t mean the functionality can not be achieved through a second layer.

For example, your “fiscal money” suggestion of debt tokens for use by insolvent companies, as a second layer could leverage the security of Bitcoin’s blockchain, but not be limited by its many design or throughput limitations. By including a technology called “atomic swaps,” different fiscal monies could even be interoperable with each other. Utilizing the Lightning Network alone, society could create complete openness and transparency for public spending and, at the same time, privacy for its citizens. The Lightning Network’s capacity for transactions per second is practically limitless, and far outcompetes networks like Visa, so now suddenly money streaming for services is made possible. Even VAT could be collected at the point of sale, and users could configure precisely where those taxes go, streamlining tax collection from merchants and empowering tax as a democratic tool.

Another second layer to Bitcoin that has had some traction is the Liquid Network, a federated, much faster additional blockchain. The Liquid Network is currently being used as medium of account for a number of bitcoin exchanges, who are each nodes in the federation and can validate transactions and vote on changes such as inflation, not unlike Keynes’ bancor. The Liquid Network’s federation model would translate well to a representative democracy, with nodes geographically spread across regions. The Lightning Network can also run on top of the Liquid Network, if super fast/cheap throughput is needed for everyday transactions. 

Yes, Bitcoin is an apolitical money, in that not one country can control it. Rather, control is in the hands of all the users within those countries via a very public agora, but a politicized money can also exist as a second layer, and one resistant to cronyism.

Boom/bust buffering such as fair weather surplus recycling is possible with Bitcoin and all of its protocols, using multiple signatures to securely lock up rainy day surplus, or second layers for stimulus such as inflation and issuing debt tokens. Bitcoin is a direct response to cronyism, and although it enriched a few lucky enough to be there early on, more bitcoin does not equal more power over the ability to produce bitcoin, unlike the current neo-liberal apparatus of wealth disparity. Disparity in bitcoin wealth allocation continues to decrease, as those made rich by the bootstrap effect burn through their funds. There is no reason why this trend would not continue. 

Bitcoin is a commons regulated by the community as a whole, and like any healthy commons is being nurtured and developed by its users, who in turn have a duty of care over it. Bitcoin’s functionality has no bound, and its usefulness is only limited by the efforts we the users put into it.

Hopefully I have addressed some of your concerns, and that for you, Bitcoin can move from a catalyst of despair, to one of hope.

All the best,

Ben Arc
arcbtc@pm.me
https://twitter.com/BTCSocialist

The post Op-Ed: An Open Letter to Yanis Varoufakis About Bitcoin appeared first on Bitcoin Magazine.

Source: https://bitcoinmagazine.com/articles/an-open-letter-to-yanis-varoufakis-about-bitcoin?utm_source=rss&utm_medium=rss&utm_campaign=an-open-letter-to-yanis-varoufakis-about-bitcoin

Blockchain

Elon Musk Agrees to Have the Bitcoin Talk With Jack Dorsey

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After laughing at Jack Dorsey’s proposition for a Bitcoin conference earlier, Elon Musk has actually agreed to a BTC conversation with the CEO of Twitter at the event.

  • As reported earlier, Elon Musk likes to have fun with the cryptocurrency community. Perhaps that’s why he initially laughed at Jack Dorsey’s most recent Bitcoin endeavor.
  • The CEO of Twitter announced plans to hold a designated BTC event aiming to “help protect and spread what makes bitcoin open development so perfect.”
  • After the initial laughter from Tesla’s CEO, though, Dorsey asked Musk to have a conversation at the event where the latter could share all of his “curiosities.”
  • Later on, Musk indeed agreed to have “THE talk” at the event, which should take place on the 21st of July this year.
  • Apart from Dorsey, some of the other popular names that will speak at the conference include the CEO and CIO of ARK Invest, Cathie Wood, and the CEO of Blockstream, Adam Back.
  • With this event, Twitter’s CEO continues to reaffirm his support for the primary cryptocurrency.
  • During the 2021 Bitcoin Conference in Miami, he called the asset the most important work of his lifetime. Furthermore, he said he would leave Twitter and Square if BTC needed him.
  • His personal Twitter account continues to display only one word – bitcoin. Additionally, he partnered with the legendary rapper Jay-Z to donate 500 BTC to fund developers working on the network.
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Source: https://cryptopotato.com/elon-musk-agrees-to-have-the-bitcoin-talk-with-jack-dorsey/

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Blockchain

SOLANAX Private Sale Is On For The Cross-Chain DEX

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[PRESS RELEASE – Please Read Disclaimer]

The cryptocurrency market has left people wondering about the long-term growth prospects and which cryptocurrency they should invest in. Solanax is an automated market maker (AMM) based on the Solana blockchain, which is set to be a game-changer in the cryptocurrency world.

The SolanaX Platform

After parsing through their team of professionals, whitepapers, their project plans, and unique platform capabilities, there is no doubt that once the platform is up and running in full swing, it will undoubtedly change the way people transact today with its simple interface for the public to trade at a record higher blockchain speed and lower gas fees.

  • There are no time-consuming processes or intermediaries.
  • It offers a very simple interface and lower gas fees while initiating the transactions.
  • Solanax increases blockchain speed and makes it more convenient to transact than its peers in the cryptocurrency market.
  • As Solanax is based on Solana’s Proof-of-History verification concept rather than a Proof-of-Work system (as that of Ethereum’s), it will enable users to leverage Solanax’s phenomenal transaction capabilities (Solanax to handle thousands of transactions in a second as compared to Ethereum’s 15).
  • The most crucial part is that while speeding up blockchain transactions and lowering gas prices, Solanax does not compromise on the security aspect.

The Ongoing Private Sale Of Solanax

Solana blockchain is substantially faster compared to its peers, and the ongoing private sale is an opportunity for crypto enthusiasts and investors to participate in this game-changer prospect.

The private sale is still ongoing until Friday, 25th June.

Total Supply: 80 000 000 SOLD Tokens

There will be 20 Million SOLD Tokens distributed before the CEX listing.

Private Sale: Total available token supply – 10,000,000 SOLD

Period: From 06/06/2021 to 25/06/2021

Token Price: $0.1 with a 3months vesting period

Token Price: $0.15 w/o vesting period

Initial Exchange Offering: Total available supply – 10,000,000 SOLD

Final Words

Solanax aims to revolutionize the DeFi exchange network and enhance efficiency levels to new highs. With DeFi gaining popularity, there is an urgent need for the industry to look beyond the older cryptocurrency platforms like Bitcoin and Ethereum. The sluggish transaction speed is one of the prime reasons for Solanax not preferring the Ethereum-like platforms. Besides, Solanax, with its high blockchain speed, simple interface, and low gas fees, is truly a game-changer for crypto aficionados, and Solanax’s Ongoing Private Sale presents the perfect investment opportunity for investors.

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Source: https://cryptopotato.com/solanax-private-sale-is-on-for-the-cross-chain-dex/

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Blockchain

Ethernity CLOUD: Data Confidentiality Backed By Blockchain

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[Featured Content]

It goes without saying that data confidentiality is one of the hottest topics of the decade. From mega scandals of leaked information to a constant stream of news about large corporations being victims of ransomware, there’s undeniably something lacking in the way data is stored traditionally. For the most part, at least.

The truth is that most users rely on traditional cloud infrastructure. Unfortunately, it has many central points of failure and trust, such as:

  • The centralized nature of the Domain Name System (DNS)
  • The dependency on one or numerous cloud providers for service availability
  • Centralized storage of user information

Blockchain technology and cryptography are quickly becoming a topic that many discuss mainly for its potential to disrupt a range of traditional services – data storage and cloud computing are among them.

Etherenity CLOUD is a project that envisions cloud computing infrastructure to be an environment where the data of users is hosted on a range of systems in a manner that’s both confidential and heavily encrypted. From home computers to professional-grade datacenters, any kind of hardware could be used with Ethernity CLOUD and trust that the information is private while in transition and in general.

EthernityCloud2

Ethernity CLOUD: What is it all about?

If one thing is clear, it’s that centralized data servers have become a primary target for hackers. Less than two weeks ago, CryptoPotato reported that JBS – the world’s largest meat producer, paid $11 million in Bitcoin to ransomware hackers who successfully locked the company out of their data.

Ethernity CLOUD’s infrastructure software is created on top of open-source services and technologies, and the migration from standard, centralized cloud providers to it is relatively simple. This comes as a difference to other decentralized hosting solutions, which tend to be rather complex in their attempts to reinvent the wheel.

The main purpose of the project is to provide blockchain infrastructure to participants so they can run cloud software in a decentralized manner, to rent out their idle or extra hardware, and so forth – all this while also providing incentives for decentralized cloud application developers.

Data Confidentiality and Encryption

Ethernity CLOUD’s architecture is designed in a way to favor the most secure encryption and hashing algorithms. At the same time, it keeps the overhead low in order to prevent performance degradation.

The information that’s being exchanged across the network is encrypted, and the ecosystem is designed in a way that prevents the decryption of information in transit, even with the most advanced cryptographic attacks, including brute forcing and collusion.

Naturally, the encryption of the data at rest is also equally important to Ethernity CLOUD, and it was designed on a trustless business model. The information is stored across the network. However, decentralized cloud service providers are unable to access, read, modify, or even interfere in any way with the node that runs on their machine.

Members of the network, by default, are considered untrustworthy – as it is with other blockchain networks. The software code enforces and ensures the trust, which reassures the decentralized cloud users about the safety of their data.

In turn, all of the above provides ground for the following benefits:

  • Ethernity CLOUD is crucial for freedom of speech in the current internet environment where censorship is prevalent.
  • It can be used as a base infrastructure for an online library.
  • It can be the answer to competitive decentralized services or web applications that demand high availability.
  • Can guarantee high availability of online resources through avoiding single points of failure.
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Source: https://cryptopotato.com/ethernity-cloud-data-confidentiality-backed-by-blockchain/

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