CoinGeek Conference highlights why Bitcoin Cash is cash

CoinGeek Conference highlights why Bitcoin Cash is cash

For cryptocurrencies to be successful over the long-term, they need to be versatile and fungible. Bitcoin Cash (BCH) has already proven to be both, and will set the bar for how the eCommerce industry accepts digital currency going forward. For anyone in the eCommerce or retail space, the inaugural CoinGeek conference will be the definitive spot to learn why BCH has become so important, as well as to network with other professionals.

Dr. Craig Wright, chief scientist of nChain, one of the influential tech groups leading the development of Bitcoin Cash, expressed it best when he said, “Bitcoin is powerful right now.” The digital currency is quickly becoming a main alternative payment option in the eCommerce realm as more retailers embrace it every day. Wright will be one of many cryptocurrency leaders present for the one-day conference.

Joannes Vermorel, another leading blockchain authority and founder of the blockchain supply chain software company Lokad, will also participate in the conference. As an early adopter of BCH payments, Vermorel will be on hand to discuss how businesses can overcome hurdles with BCH.

Lorien Gamaroff, who founded the popular BCH wallet Centbee, once said, “What I like about BCH is that it’s reminding us that this was always meant to be cash. And cash needs to be able to be spent.”  The CoinGeek Conference is the perfect spot to learn how easy it is to exchange BCH for cash and accept it in any eCommerce environment. Join Gamaroff and the many merchants, visionaries and investors for the one-day event.

The inaugural CoinGeek Conference will be held on May 18 at the Four Seasons hotel in Hong Kong. Registration starts at 8 a.m., followed by a series of seminars on a wide range of important cryptocurrency topics that will help the community to grow and receive greater attention. The presentations are all being designed by the best names in the crypto space, and no single event can provide the wealth of knowledge and vision like the CoinGeek conference will. CEO Roger Ver will be on hand, discussing BCH adoption around the globe. As he so aptly put it in a recent discussion, “BCH is building all the tools to make it useful as cash for the entire world.  And that’s why we are seeing merchant uptake around the world.”

Apart from the impact that BCH has, and will have, on the eCommerce industry, it is part of a movement that has brought about the innovation surrounding FinTech 2.0. Going forward, merchants are going to be the drivers of the entire ecosystem. As BCH continues to attract greater interest, eCommerce could very well soon be called “bCommerce” (Bitcoin Commerce).

Following the conference, there will be an after-party hosted by CoinGeek’s founder and cryptocurrency entrepreneur Calvin Ayre. Only a few weeks remain before the event, and space is limited. Don’t wait to make your reservation—pay today with BCH and get 50% the regular entry price.

Find out how you can integrate blockchain into your business by registering for the conference today.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Dr. Craig Wright: Inclusion is the real purpose of tokenization

Dr. Craig Wright: Inclusion is the real purpose of tokenization

Created to solve real world needs, blockchain’s goal has been to bring equality and inclusion—and then consumerism came into the picture.

In his speech at the recently held TOKEN2049 event in Hong Kong, Dr. Craig Wright pointed out how HODLing became the new form of hoarding. According to the nChain chief scientist, a huge number of blockchain and cryptocurrency startups have been taking advantage of the hype and value spikes caused by HODLers.

“HODLing is probably the most despicable, evil thing to do with Bitcoin. It is not saving, it is hoarding. Bitcoin is a payment system. It is cash. It is to be used to help people spend money,” he said. “People can actually spend and use, not hoard so that in ten years, they can go, ‘look! I’ve got more of something than I can hold.’”

Contrary to what ICOs would have you believe, Wright said tokenization is supposed to be a medium through which the world can create an “on-demand economy,” essentially an Uber for everything that you need—even luxury items. Tokenization, he explained, should be used for the efficient, high-speed production of supplies made on demand with a traceable and verifiable supply chain on the blockchain.

“Everything that is common now used to be a luxury—toilets were a luxury 100 years ago. Victorian England—if you had a flush toilet, you were rich. Now no one would buy a house in the West without a toilet,” Wright said.

If done right, tokenization could herald a new revolution that would open the floodgates to inclusion and global interaction.

“This is a world that is becoming more and more global—that is a good thing,” Wright said. “As we start trading with people, we start building relationships and having to understand them.”

Watch Dr. Craig Wright’s speech at TOKEN2049 here:

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
It's happening: CoinGeek inaugural conference all set for May 18

It’s happening: CoinGeek inaugural conference all set for May 18

The first-ever CoinGeek Conference is only a little more than a month away, and space is filling up quickly. The event will be a first for the industry, bringing together some of the greatest cryptocurrency minds to provide insight on how Bitcoin, specifically Bitcoin Cash, is shaping the future of digital currencies. A combination of merchants, investors and cryptocurrency visionaries will be on hand to discuss how BCH is poised to enable the next generation of eCommerce activity.

With presentations provided by some of the greatest talent in the industry, such as nChain CEO Jimmy Nguyen, owner Roger Ver and nChain Chief Scientist Dr. Craig Wright, the conference is a must for anyone in the eCommerce industry. BCH, with its wider user base and cheaper transaction fees, is quickly becoming the go-to digital currency around the globe, and its reputation continues to gain momentum. This is a great opportunity to not only catch up on the advances of the digital currency, but also to network with retail operators from around the world.

The one-day conference will cover a lot of ground in a short time. Topics such as “New Products, Opportunities and Challenges for Using Bitcoin,” “Bitcoin’s Atomic Age” and “A Roadmap from FinTech 1.5 to FinTech 2.0” are just a sampling of the important topics that will be covered. The final topic of the day, “Accepting Bitcoin Payments,” will show eCommerce entrepreneurs and seasoned professionals how easy it is to integrate a digital currency solution, and why now is the best time to do so.

This inaugural conference will be held at the luxurious Four Seasons Hotel Hong Kong. Located in the heart of Hong Kong’s central district, the Four Seasons offers amazing views of Victoria Harbor and is only minutes away from a lavish shopping spree or a great night out at world-class restaurants and clubs. There are two styles of guest room – Western contemporary, with silk-paneled walls and marble-floored entry foyers, and rooms with a traditional Chinese influence, featuring sculpted furnishings and gold leaf. Forbes Travel Guide awarded the hotel a five-star rating, one of only three hotels in the world to achieve this rating.

Twelve different sessions will be held throughout the day followed by an after-party courtesy of Calvin Ayre, founder and owner of  In his own words, “Bitcoin Cash is more than a company; it’s a movement.” The event is poised to be a game-changer for merchant adoption and BCH education. BCH represents the truest definition of the “Satoshi vision,” offering faster transaction speeds, larger block sizes and lower fees.

Registration for the conference is now open with a 50% discount for those paying in Bitcoin Cash, but credit card payments are also welcome.

‘Selfish mining’ not a valid issue

‘Selfish mining’ not a valid issue, Dr. Craig S. Wright says

Even users are calling for a cease-fire on this non-issue.

Recently, a few media online threads resurrected the issue of “selfish mining” as a viable attack on the Bitcoin network, reigniting an online debate in the blockchain community. In a paper published in 2013, Ittay Eyal and Emin Gün Sirer outlined an attack called selfish mining which can be used to either game the system so those who exploit the vulnerability can supposedly earn more than what they should under the normal mining mechanism, and later influence other honest miners to do the same.

Selfish mining, they describe, can be instigated by a miner that holds 33% of the overall network hash rate, and therefore finds blocks earlier than the usual block time (10 minutes). He then decides to hold off on transmitting a block to other miners so he can get a head start in mining the next one and has a better chance at getting that reward as well, supposedly securing two blocks’ worth of revenue for himself.

To put this matter to the grave, nChain chief scientist Dr. Craig S. Wright, published counter-arguments explaining why the selfish mining FUD is a mathematically flawed fallacy, particularly because (1) the economics work against anyone who would choose to do it, and (2) in order to keep doing this, not only does it require a lot of investment while incurring massive profit losses—it also requires that all other miners be stupid and oblivious to something that is so easy to detect and takes very little effort to shut down.

First, this only works if the selfish miner (SM) wins at mining both the first hidden block and the next one before any honest miners (HM) find the first one which he withheld. Otherwise, he will then have to race against the honest miners in propagating that first withheld block and can ultimately forfeit his profit. If he loses this way, any blocks he mined after the one he withheld is orphaned, meaning the blockchain has rejected and abandoned it and the rest of the blockchain has been continued on top of a different block mined in the same time frame.

According to Dr. Wright, the SM’s orphan rate gets higher in the long-term, and the losses rise at a short period of time. He adds that the SM’s profit model looks as follows:

‘Selfish mining’ not a valid issue, Dr. Craig S. Wright says

Even in a case where all honest miners are stupid, not noticing or even intentionally ignoring the selfish miner’s actions, the math still works against the selfish miner. A selfish miner gambles against the rest of the network, betting that no other miners will mine the block he withheld before he finally transmits the data. If he loses, the block he withheld gets orphaned and he needs to start again, effectively forfeiting the profit he would have made if he opted for honest mining instead.

Selfish miners incur a large amount of loss not only for themselves but for the whole network—which honest miners can very easily detect and probably retaliate against by blacklisting the offending miners’ IP addresses.

Wright concludes that selfish mining is a non-issue as it is, in fact, more effective to attack or corrupt the bitcoin network using the traditional mining method—which in itself is already quite difficult to instigate.

“I’ll say that again; the honest mining strategy is more effective than the selfish mining strategy even in attacking the bitcoin network,” Wright wrote.

“The reality of the scenario is that there is no place for selfish mining. No sane individual or corporation would spend money for the sake of spending money when even given the direct goal of damaging the network; they could achieve this for far lower capital expense.”

Wright is not alone in thinking the selfish mining issue is a non-issue. A few users made their own analysis and think the community should just move on to other real issues. Reddit user Rolling_Civ posted a thread titled, “The selfish mining debate: toxic and unnecessary,” saying this all stemmed from nothing more than a misunderstanding between developers. Others are also calling for a cease-fire, saying the community should focus on actual issues.

“I want to conclude by saying this thing is a huge distraction and we should focus on more important things for Bitcoin Cash. We’re currently lagging behind other coins and this is a reality that we need to focus on,” Reddit user MobTwo wrote.

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
nChain obtains patent to enable video

nChain obtains patent to enable video, music streaming services, smart contracts on blockchain

CEO Jimmy Nguyen says the key IP assets invented by nChain will be free for use within the Bitcoin Cash community.

nChain, one of the leading development teams for Bitcoin Cash, has secured its first approved patent granted by the European Patent Office (EPO) today. The invention, led by nChain chief scientist Dr. Craig S. Wright, will enable the deployment of mainstream services and applications on blockchains—video and music streaming services, and other applications requiring data transfer.

The method, “Registry and Automated Management Method for Blockchain-Enforced Smart Contracts,” as its title implies, comes in very handy for digital rights management and auto-renewing contracts on any blockchain. nChain CEO Jimmy Nguyen says the patent approval is a historical moment for the company, one that will be followed by many more.

“This first patent grant by the European Patent Office marks a major milestone in nChain’s ambitious research and patent program, which started approximately two years ago.  We expect this will be the first of many more patents to come, as our portfolio of blockchain patent applications is among the largest – if not the largest – in the world.”

This isn’t the first and only patent nChain has filed within the past year. The company has been continuously building up its arsenal of tools to accelerate development and adoption for blockchain technology. Just last year, they released a set of “anti-Goxxing” mechanisms called deterministic key generation and the secure split key technique, which would enforce a higher level of security for any digital data and ultimately help blockchain technology gain business and consumer confidence.

Nguyen says they are determined to deliver the benefits of blockchain technology through Bitcoin Cash, and to do so, he says the company’s key inventions will be open for all to use and develop within the Bitcoin Cash community, facilitating rapid, massive merchant adoption for the Bitcoin Cash blockchain.

“While we are building enterprise value through our patent portfolio, nChain is committed to using our intellectual property to benefit the Bitcoin Cash community.  We intend to make key IP assets available for free usage only on the Bitcoin Cash blockchain – through our new ‘nChain Open Bitcoin Cash License.’  This will give Bitcoin Cash significant advantages over other blockchains, and will incentivize businesses to operate on the BCH blockchain, which represents the original vision of Bitcoin,” Nguyen said.

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Deconomy 2018 day 1 summary

Deconomy 2018 day 1 summary

Seoul, the critical hub for blockchain and cryptocurrency in South Korea, is hosting to the first annual Deconomy 2018. The two-day forum brings together intellectuals and the brightest minds from the digital space, entrepreneurship, the academe, and thought leaders and enthusiasts of cryptocurrencies.

With over a thousand attendees, the day one was inaugurated by a special keynote by David Chaum, cryptographer and recognized as the inventor of digital cash. Chaum is famous for creating ecash in the 80s, and has been an important figure in the development and innovations in cryptography.

The launch of bitcoin in 2009 has opened the world into the possibilities of how we live and will live in the future with blockhain. As paradigm shifts into open, public protocols within the technology, more projects that are actively underway are expected to grow the cryptoworld’s future even further.

Several of these projects were presented by some of the biggest names in the crypto space. Ripple Chief Cryptographer David Schwartz presented Ripplenet, a frictionless global epayments solutions. He also added how Ripple continues to carve its own niche in the industry with its latest products Xvia, xRapid and xCurrent. Lightning Network’s creator Joseph Poon also gave an overview of what Plasma is, a system of smart contracts built on top of Ethereum. Poon also shared his thoughts on scalability structures and advised to be very skeptical about it as a lot of ‘bullshit’ is happening in the space. He has not elaborated what these are, though.

These presentations were preceded by a keynote speech by financial cryprographer Ian Grigg who talked about the need to make identity work in the blockchain space. To do that, Grigg said trust is needed—after all, trust makes your identity safe, nurtured and growing.

Grigg later joined the first panel and discussed the journey and the evolution of Bitcoin with Schaum, nChain Chief Scientist Dr. Craig Wright, and Mattereum co-founder Vinay Gupta, who admitted to have experienced a lot of failed revolution in the past. The morning session ended with panelists offering advice on how not to become a victim of a failed revolution: Take risks. Continue working hard no matter what other people say about you or what you do, according to Wright; Find a use of case when creating products or services, said Grigg; Create something that of value to the society, said Chaum; and don’t be afraid to work on old ideas, said Gupta.

The second half of the forum kicked off with simultaneous sessions discussing the state of blockchain, market trends and the views of traditional financial businesses. As the global interest in Bitcoin increases, the cryptocurrency market expands beyond financial institutions leading to the creation of more blockchain-supported businesses and investments.

Investors and entrepreneurs venturing into the space shared their positive outlook despite the recent drop on the value of cryptocurrencies. “I think this will correct and the main cryptocurrencies again as they typically do,” nChain Group CEO Jimmy Nguyen said, noting that this event may scare some people for a short term but not necessarily a bad thing in the long run as it will funnel out ICOs and alternative coins.

Air Asia’s CEO Tony Fernandes who spoke at this event shared how being in the blockchain space is the place to be for his company. “Air Asia is always trying new things, and change management is what we are about,” he said, “so being here has been an experience for me. Air Asia is all about modernization…(blockchain) That’s why we’re here.”

The late afternoon sessions brought on the most interesting discussions on Bitcoin and the controversies surrounding it, featuring the best pool of speakers a crypto event could bring together. Blockstream CSO Samson Mow, Roger Ver and Dr. Craig Wright spoke respectively about their passion—Bitcoin and the Future, How Digital Currency Will Change the World, and A Visual depiction of Bitcoin Scaling and Enterprise Growth. A notable moment during these sessions was when Ver, who talked about the impact of Bitcoin on economic freedom, showed a slide with Bitcoin Core and Blockstream logos, and emphasized how the Core group has been delaying the adoption of Bitcoin, thus preventing more people to achieve economic freedom.

The day closed with an intense, one-on-one panel on Bitcoin scaling between Mow and Ver, which turned into a heated debate about BTC and Bitcoin Cash. Ver who has been challenging Mow for a debate for quite some time was clearly at the forefront.

“Samson has made one Lightning network payment this week, and I’ve made countless Bcash payments today. Therefore, lightning network isn’t being used,” Ver said responding to Mow’s answer about the number of transactions he made with the Lightning Network. Ver added, “Samson can only name three merchants that accept Lightning network. Therefore, only three exist.”

Ver emphasized, “Bitcoin Core is some science project for people who live in first world countries.”

When moderator Jeff Paik asked about why there is so much animosity between the two, Mow answered, “Now that you (Ver) have your own coin and BCH people have their own chain to promote, there really doesn’t need to be any animosity.”

During the Q&A session with the panel, Ethereum founder Vitalik Buterin called out Dr. Craig Wright who previously asked a question to the panel. Buterin questioned the organizers why Wright was allowed to speak at the conference forcing the organizers to cut the debate—which has gone overtime—much to the dismay of the attendees.

Also watch: Deconomy Day 2 summary

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.



Fear and Loathing in Seoul – Samson Mow and Vitalik Buterin exposed!

I recently attended three back-to-back cryptocurrency events. An ICO-focused one in HK, then Satoshi Vision in Tokyo and now I am at the Deconomy-branded ICO event in Seoul. I had intended to write an article about my experience that focused on the overall cheesiness of the ICO space. However, yesterday I got to see Segwit thought leader Samson Mow and Ethereum ‘founder’ Vitalik Buterin up close and, frankly, was shocked at what I saw.

First some background. The first event in HK was just as cheesy as I expected. nChain’s Dr. Craig Wright, who most consider one of the premier thought leaders in crypto today, was a speaker. His presentation could be viewed as a bit angry, as he is prone to getting angry when forced to listen to the nonsense that passes for science in our industry, but I found his talk impassioned and technically strong.

Mostly, the aspiring ICO CEO’s did not even come in to listen to Wright, choosing instead to mill around in the hall discussing – what else – their upcoming ICOs. After all, why wouldn’t anyone be more interested in talking up such truly inspired ideas as a coin that can be used to purchase sex (though why a sex worker would want to take a coin that could only be used to have sex with another hooker is beyond me). The event had the feel of an old school multilevel marketing event and I was hard pressed to find anyone interesting to talk to. This event confirmed my opinion that ICOs are essentially scams.

Next up I attended the Satoshi Vision event put on by Bitcoin Unlimited. Though not a top-tier group from a thought-leadership perspective in my opinion (they are too academic and not practical enough and they talk too much trash on the internet against others in the space), the event they produced was pretty good. My only complaint was that it should have been half the size…too many speakers who added nothing and killed me to sit through.

This event was all about evolving the Bitcoin platform to become the world’s dominant public blockchain. Trouble is, Bitcoin BCH is the one true Bitcoin and the only platform that conforms with the original Satoshi White Paper. It’s also the only true cryptocurrency and therefore the only technology that can do low-cost, fast and secure micro-transactions.

As Roger Ver said in his speech at this event, this will be the technology that brings financial freedom to billions in the developing world and also fuels the Internet of Things (machine to machine commerce). All in all, I found this event had most of the true thought-leaders in the space in one spot.

Besides Ver, the event featured Amaury Sechet of Bitcoin ABC, Joannes Vermorel of Lokad, Clemens Lee of and, of course, nChain’s Dr. Wright, whose presentation can be viewed here. Real people solving real problems.

Next, I hopped on a plane to Seoul for Deconomy 2018, an event that seemed similar to Satoshi Vision but had representatives of two other platforms, Segwit Technology and Ethereum.

Day one of the event promised a Bitcoin BCH v. Segwit BTC showdown but day two was entirely devoted to Ethereum worship. So I wasn’t surprised that all conversations by anyone not directly aligned with Segwit or Bitcoin immediately drifted to ICO talk. The exception was the one lonely Ripple presenter.

On day one, I listed to a few speeches but didn’t find much to hold my attention so I waited until the big keynote faceoff at the end of the day. The speakers were Samson Mow, Roger Ver and Dr. Wright, each of whom was given 30 minutes to argue his case.

This was capped by a 30-minute debate between Mow and Ver on the subject of Bitcoin scaling. Why Dr. Wright was not on this panel was a mystery to me as he was in the room and is one of the world leaders in Bitcoin scaling technology.

Mow’s speech was low key and mostly about his views on the history of money (not shared by many). It also had a pitch for his Segwit and sidechain technologies. Ver’s presentation detailed his view of what the economic freedom Bitcoin can offer will mean for the world. He also outlined the damage Mow’s Blockstream had done to Bitcoin. Last up was Dr. Wright, who set out to correct the record on areas where he believes the Segwit technology controllers (mostly Mow and his company Blockstream) are spreading technical misinformation. (You can view Dr. Wright’s speech here.)

But things got really interesting during the debate. Right in front of my eyes, Mow did all the things everyone has accused Blockstream and Core developers of doing on the internet. He got into some petty name-calling, and kept referring to Bitcoin as BCash. Roger did a strong job of laying out his grievances in this space and clearly won the debate, in my opinion.

And then, things got crazy. They opened up the floor to questions and Mow insisted that the last question go to Vitalik Buterin (who speaks on day two so was in the front row). Though Dr. Wright had not mentioned Buterin or Ethereum in his presentation, this was Buterin’s question:

“Why do we allow people like Craig Wright to speak at a conference like this?” Buterin then suggested that Dr. Wight’s university degrees are not real.

The question was shocking enough, but more shocking was Mow publicly agreeing to this call for censorship. Censorship of others’ opinions is exactly what Blockstream and Core stand accused of by many – including directly by Roger in his debate – and here was Mow, in front of the entire crowd, advocating for the silencing of someone’s voice.

Dr. Wright, who was also in the front row, declined to dignify this childish display with a response. You will note the editors of the official video purged Buterin’s question, so you have to take my word for this, as I was in the room.

I have known Dr. Wright for three years now and have been to his home in London for dinner on several occasions. During one of the dinners, I was able to look through all his university degree certificates and can attest that they are all real. I also know he is working on his third PhD in law at a university in Paris right now. See for yourself in this wheelbarrow and then ask yourself: why would a 24-year-old university dropout be criticizing an industry thought-leader, who had just given a speech that did not mention Ethereum or Buterin, about his university degrees?

The answer, as is usually the case, boils down to money and power. Earlier in the day, nChain CEO Jimmy Nguyen was also on a panel. As I said above, all discussions went immediately to ICOs. So Jimmy mentioned a number of times that by the end of the year smart contracts and ICOs will be able to be done on the Bitcoin BCH chain.

I know this to be true as over 50 groups have applied to be in the contest to do this and both Lokad in Paris and nChain themselves are also working on solutions (nChain is working with SBI in Japan on this among other things). Craig is providing technical advice to everyone in the contest and to Lokad and SBI. If this happens there will be no reason for Ethereum to exist. BCH has superior technology and the capacity to add features from other platforms, meaning there will eventually be no need for other platforms. Just as there is no need for two internets, there does not need to be more than one payment platform and Bitcoin BCH is clearly the technically superior platform.

So basically what I was witnessing with my own eyes was the fear that the centrally-controlled Segwit and Ethereum platforms have for the person they believe is working to make them both obsolete. I already knew this, but I was still shocked by the immaturity on public display at this event. I doubt I was the only one in the audience that left there inspired to buy more Bitcoin BCH.



Dr. Craig Wright: With Bitcoin

Dr. Craig Wright: With Bitcoin, the power is within

Sorry Raspberry Pi users, your tiny computers aren’t enough to handle a full Bitcoin node.

At the recently held Satoshi’s Vision conference in Tokyo, Japan, Dr. Craig Wright explained how network topology works, and, in the process, debunked the notion that an outfitted Raspberry Pi can be used as a full Bitcoin node.

The nChain chief scientist prefaced his presentation, “Bitcoin network topology: Small world vs mesh,” by saying that the key to understanding connectivity and Bitcoin is to bear in mind that Bitcoin is incentivized. Bitcoin, he said, is “actually very close to a biological system,” where nodes aren’t the important part—the connections are.

“With Bitcoin, the power is within. The code is rich enough. The network is strong enough. We don’t need to do half the things people tell us we need to do. We don’t need to rebuild it, we don’t need to change it, we don’t need to bastardize it. Bitcoin is powerful right now,” Wright said.

So where do the Raspberry Pis fit in? Nowhere. Miners, after all, are incentivized to process a transaction on the network, and a Raspberry Pi does not have enough processing power, memory and network bandwidth to maintain it all, according to Wright.

“If you have to open up many, many connections, your machine grinds to a halt and it becomes slower. So all those Raspberry Pis out there end up slower, they take 30 seconds, 40 seconds to transmit a transaction. And as you send that transaction, it hits all the miners, and all the miners have that transaction in 1-3 seconds, and it can get faster than that as well. By the time any Raspberry Pi decides that’s a valid transaction, the miners have either accepted or rejected it,” Wright said, “because miners are incentivized to connect to miners. Every second matters to a miner. Every second, if you can mine one second faster, verify one second faster, get a block out one second faster, you make money. Making money makes people want to do this. We use greed for good. This is what Bitcoin does. Bitcoin is not a system of cryptographic protocols, it uses them. It is an incentive system. You can’t cheat the system because if you do, you lose money. That’s what it’s about.”

Watch Dr. Craig Wright’s “Bitcoin network topology: Small world vs mesh” presentation here:

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.


Dr. Craig Wright exposes Blockstream’s false narrative

Dr. Craig Wright exposes Blockstream’s false narrative

Don’t believe the lies, according to Dr. Craig Wright. Bitcoin is incentive-compatible.

On Tuesday, the nChain chief scientist took the stage at the inaugural Deconomy 2018 blockchain forum in Seoul, South Korea, to debunk the myths perpetuated by Blockstream, which were designed to take away the power of Bitcoin and basically tell everyone that it needed to be fixed.

“One of the issues you are told is you need to run a full node and verify everything,” Wright said. “No, you don’t. No, you can’t. You can sit there and verify things if you want, but you don’t actually do anything as a node unless you are a full node, and a full node, if you read the white paper, mines. You vote with CPU power.”

The people behind Lightning Network think Bitcoin works as a mesh, according to Wright. In actuality, Bitcoin is an overlay network that pulls everything into a tight ball as it forms, with every machine connecting to everything it can—or what is also referred to as near-complete.

“You connect as much as possible as a miner because you’re incentivized to,” he said. “What this actually means is we start connecting all over the place, so we are resilient because we connect everywhere.”

Wright also debunked the notion that an outfitted Raspberry Pi can be used as a full Bitcoin node, saying that there is not a single piece of data on the Bitcoin network that has ever been verified by a non-miner.

“By the time any Raspberry Pi ever existed on the network has verified a packet, every single miner has decided whether to mine it or not,” he said. “You’re not helping because there’s nothing altruistic in Bitcoin. Nothing. Bitcoin is money. It is working because it is competitive. It is working because people fight to get their transactions on the blockchain fast.”

Watch Dr. Craig Wright’s presentation here:

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.


Selfish mining

The “Selfish Mining” saga continues

The concept of a selfish miner ‘attack’, all started with a paper by Cornell University researchers Ittay Eyal and Emin Gun Sirer, titled “Majority is not Enough: Bitcoin Mining is Vulnerable”.

The idea on the surface seems to make sense. A “selfish miner” who discovers a block, can choose to keep the discovered block a secret. By not propagating the block, the miner keeps a local copy of the forked chain. All other nodes on the network, continue to mine on the public chain, while the selfish miner, continues to mine on its private branch. If the selfish miner discovers more blocks, then it develops a longer lead over the public chain. Eventually the public chain (which has more hash power behind it) catches up to the private chain, the private chain can immediately time its release of the private blocks to the public (having the longest proof of work).

Selfish mining

The method is designed to force opposition miners (honest miners), to waste computations on a chain branch that is destined to not become a part of the blockchain record. “Selfish Miners” do this by selectively revealing their mined blocks that invalidate opposition (public) mined blocks.

It does beg the question however, if Selfish Mining is really a thing, can’t all miners adopt the strategy? Wouldn’t all miners adopt the strategy in this case? Indeed, if all miners follow the algorithm as set out in the paper, then any perceived advantageous benefit is lost.

Since the release of the paper in 2013, the “Selfish Mining” saga has gone through endless debate cycles, and particularly, only recently has flared up once again.

Dr Craig Wright in particular has been loud in his criticism of Selfish mining, dubbing it a fallacy. Does the criticism hold water? In a medium post, Wright went into detail on his position.

Wright states that selfish mining “relies on the relative percentage of blocks earned by a particular miner. It does not consider the number of blocks to unit time”. Also “their state model is based on a fixed average that does not account for orphans or the simple notion of revenue per unit time”. A simple, assessment of the paper leads us to categorically state that this assessment is correct. An interesting point also noted by Dr Wright is that “profit is the additional reward for earning and at a certain point, more revenue leads to lower profit levels”. Simply put, more revenue does not necessarily equate to more profit, and that an equilibrium exists where the best profit for investment can be attained. But how does it change the course of the study?

Wright further states that the “very model used in selfish mining is itself flawed”. In particular, he raises the question of the Poisson distribution used which expresses the probability of a given number of events occurring in fixed intervals of time and independently of the time of the last event. The Poisson distribution only works if the model is independent and identically distributed. The selfish mining model however, is conditional, since the selfish miner reacts after the discovery of a block from the honest miner.

Case in point, this does throw into refute the mathematical model used in the paper.

What model should’ve been used? According to the medium post, an Erlang Distribution or Negative Binomial Distribution.

The below figure is from the 2013 paper by  “IttayEyal and Emin Gun Sirer”. It illustrates the revenue model according to pool size for the selfish miner.

Selfish mining

Source: Figure 2 – “Majority is not enough: Bitcoin Mining is Vulnerable

The above figure shows that a selfish miner commanding 25% of the network resources stands to gain a significant advantage by adopting the selfish mining strategy. However, according to Dr Wright, by taking account all factors that were not addressed in the paper, as well as using the appropriate model, the revenue graph takes a turn on its head. The new model is illustrated below:

Selfish mining

Source: Figure 1: Expected pool revenue for SM strategy –link

Interestingly in this model, at no point does the selfish miner get anywhere near the baseline of an honest miner. But Wright makes another interesting point here… that even when using the using the selfish mining strategy without addressing the flaws in the model, the gross return still falls short for anything under 50% of the hash power.

Ofcourse after 50% it doesn’t really matter, since at that point Bitcoin is effectively centralized in any case. But it’s an interesting point to posit. But the thing does become compounded when incorporating the additional block orphans which take a direct toll on profit, for which the calculations on the medium post showed stunning daily losses.

Dr Wright states that to correctly analyse things, a time censored Bayesian model would need to be created and that he will release the mathematics involved in all of this in the near future.

Eli Afram

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.