Author Archives: salvadorfalbo@space.pockmail.com

Be Your Own Bank

Many thousands of articles have been written purporting to explain Bitcoin, the online, peer-to-peer currency. Most of those articles give a hand-wavy account of the underlying cryptographic protocol, omitting many details. Even those articles which delve deeper often gloss over crucial points. My aim in this post is to explain the major ideas behind the Bitcoin protocol in a clear, easily comprehensible way. We’ll start from first principles, build up to a broad theoretical understanding of how the protocol works, and then dig down into the nitty-gritty, examining the raw data in a Bitcoin transaction.

Huh. I clicked through to the Feedburner page, and indeed the new stuff is there. Perhaps the problem is on the go read side? I’ve been happy with it so far, but… Maybe later I’ll try again with a different reader.

So in sum, there is definite potential, it just may take awhile, and gains may not come for decades. bitcoins – More hints, For comparison, lets look at the development of the car vs. the engine. The combustion engine was developed in 1820s. Yet it took nearly 80 years before it was used to make automobiles. During that time, many people doubted whether motor engines would supplant horses (not least because the roads were so horrendous). Only after paved roads developed over America did use of the automobile finally took off. Ultimately, it was the overall infrastructure that locked-in” its use. If widespread adoption of digital currencies ever occurs, it will likely have to follow a similar course.

Why not create a currency that is backed by a number of commodities, with gold perhaps as the backbone? Why even limit ourselves to commodities? Bitcoin as currently configured could be part of the basket. Anything that can be represented in a digital form and has a reasonably stable long-term value could be considered.

Bitcoin is going to survive this, largely because it isn’t run by a bunch of power-hungry idiots. But naturally, the fuckers here who thought Ebola was going to wipe out everyone by Thanksgiving, have no way to comprehend the forces at play, much less devise a strategy to succeed.