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January 29, 2016

Rocketships and The Parable of the Desert Island


Rocketships and The Parable of the Desert Island

This morning I awoke to a post from /u/nullc describing how Bitcoin is dissimilar to a centralized payment network (he's right about that). Bitcoin is not Visa, even with 1GB blocks.

The analogy is made to a rocket ship with multiple stages, or layers. Each layer is important, and not all features or functions can be squished down into one layer. I am not an engineer, but I understand and respect this principle. I don't believe the base Bitcoin protocol can (or should try) to handle Visa throughput. Bitcoin is built to be the foundation of a decentralized financial system, not a high-capacity payment network. /u/nullc is correct about this.

And sure, Bitcoin can be appropriately thought of as a rocket, bound for the moon. We need brilliant engineers to build it. It takes a long time, the stakes are high, and design shouldn't be left to the crowd. Multiple stages and layers are needed, absolutely.

I'd like to consider another analogy, not of Bitcoin as a machine/rocket, but of the community which supports and builds it…

Let's imagine a desert island, with a crowd of survivors from some shipwreck or airplane crash (think of the opening scene from Lost). We, the Bitcoin community, are perhaps like that crowd. To get off the island, to succeed, we'll need to build a boat (or a rocket?). We'll need to work together. We have different skills, perspectives, and certainly different temperaments. Few of us knew each other before we arrived here, yet we find ourselves in close quarters, all with the shared vision of escape and all slightly terrified of failing.

And there is so much work to be done.

Consider that, even to survive for a while while we build our escape vessel, some prerequisite activities must be pursued. Food must be found. Water. Shelter. We must tend to the wounded. We'll need to seek out and collect raw resources, and form teams for construction. We disavow monarchs, so we must nurture social consensus and decentralized judgement.

Now, consider in the early days of this scenario, there might be significant controversy. Perhaps there is heavy disagreement on whether we should secure a source of clean water, or build shelter first. Maybe a violent storm is coming. A well can be dug, but only with the majority helping. A shelter can be built, but again only with the majority's effort.

At first, those who believe water is most important (call them WaterTeam) and those who believe shelter is most important (call them ShelterTeam) debate over the merits of each. They engage in civil debate, they are polite. They try to convince the other of the preeminence of their project. Unfortunately, neither is able to convince the other. Soon, bickering, squabbling, distrust of one another takes over from the previously rational conversation. Each team thinks the other must have bad motives, for how could they be so blind? Obviously, water is needed first. Obviously, shelter before the storm is paramount. Who sent these guys? Who do they work for? Why are they trying to sabotage us? They must be either idiots, or intentionally trying to destroy our chances of survival. They are not like us. They are the enemy. We are so vastly different, we must fight and diminish them.

Factions form, and become entrenched. Soon, the groups aren't even talking with each other. Meanwhile, thirst grows, while the storm draws nearer.

TeamWater, knowing itself to be correct, proceeds to dig the well. But they keep getting distracted. Shouts from TeamShelter are incessant. Several of TeamWater's best engineers spend half their time trying to keep TeamShelter from interfering with them. Whenever TeamShelter brings up their concern, which has been repeated so often, they are told, "Look, water is essential for life. If we don't have water, we will all die, and the storm won't matter. Let us dig this well." TeamShelter accuses them of elitism, of not paying attention to the looming storm. "Look how many people think shelter is important! The storm is almost here!"

Then, one of TeamShelter freaks out, writes a blog post, dismissing the entire effort, saying it has failed, and runs into the ocean never to be seen again.

Things turn darker. The incident frightens some from TeamShelter. They genuinely worry that if TeamWater maintains its stubborn hold on the group, everyone may indeed be doomed. Several people huddle together, and decide they're going to go off and find shelter on their own. They are going to split the group. It's contentious.

"You fools!" says TeamWater, "Don't you know how dangerous that is? Who knows what is out in that forest, there could be monsters. We would all need to go together, and it needs careful planning."

"Okay, then." TeamShelter says, "Will you promise to come with us to gather materials for shelter after the well is done?"

Silence.

"Will you guys help us build the shelter after the water is finished?"

Silence.

"Hello?!"

"This is not a democracy," TeamWater says, "We will not be swayed by public opinion. We are engineers, and we think the well is important, so we will continue building it. Gathering materials for shelter is very risky."

"Well okay, but we WILL build shelter, right?" TeamShelter asks.

"We've calculated that water is most important, so that's what we're doing." TeamWater counters.

"Okay, and then after that, shelter?"

"Getting the shelter will be risky. Right now, we need water." TeamWater reminds them. Insults fly. Tempers flare.

"Guys, we're talking past each other and it isn't very productive. We just need to know that, after the well, we can expect to go get some shelter. We know the shelter won't be permanent. We know it won't solve all our problems. We know it won't make us as efficient as Visa. We know there are risks out to there in obtaining it. We know water is important, too, but when the $%*# are we getting shelter?"

"Water is most important, please stop bothering us. We are engineers."

And both groups huddle down in their sandy trenches. Thirsty, cold, and angry with each other. The well proceeds slowly, subject to constant heckling and distraction.

TeamWater, while correct in its assessment of the importance of water, has been myopic. Focused on the building the well, and confident in its engineering acumen, it has ignored, to the peril of everyone, the importance of simple social cohesion. "We shouldn't have to be babysitters. We are not a PR company. It's not our fault if the masses can't understand the importance of the well," they say.

It is, as so common with human enterprise, an instance of missing the forest for the trees. Such benefit could be had, at such minimal cost, by simply looking up, recognizing the genuine worry and desire of the group for shelter, and waylaying their concerns.

"Yes, we know shelter is important," TeamWater could so easily say, "Your fear of the impending storm is valid. Help us with this well, and we'll then join you in the search for shelter. It's dangerous, so we need to be thoughtful, but we want shelter too and we'll get to it once this well is ready. Let's help each other."

Yes, let's help each other. Is that such an alien request? Is that so far out of the scope of an engineer's plans?

All that is required is a little humility, a little empathy, and indeed something that all engineers should have natively, a little reason… for a rocket ship is unlikely to ever be built if its team sits in disarray, unwilling to seize such considerable social benefit at such mere cost.

Submitted January 30, 2016 at 03:39AM by evoorhees
via reddit http://bit.ly/1RRtkWb

The Absolute Easiest Way to Explain Bitcoin


The Absolute Easiest Way to Explain Bitcoin

Communicating technology to not-so-technical people can be difficult, and even more so with something as complex as Bitcoin. After years of struggling my way through an elevator pitch, I've finally found something that works.

"Like email was a protocol created to send messages across the internet, bitcoin was created to send money across the internet."

People seem to instantly 'get it' by creating the parallel to e-mail.

We are all sales people at this point, and having a refined pitch when you come across someone not in the know is essential.

I hope this helps!

Submitted January 30, 2016 at 04:56AM by Wansyth
via reddit http://bit.ly/1PFTHbj

We should not defer to Core on economics just because they’re good at code and cryptography


We should not defer to Core on economics just because they’re good at code and cryptography
http://bit.ly/1NGd5U9

Submitted January 30, 2016 at 05:27AM by go1111111
via reddit http://bit.ly/1JNh0DZ

/r/Bitcoin FAQ – Newcomers please read


/r/Bitcoin FAQ – Newcomers please read

Welcome to the /r/Bitcoin Sticky FAQ

Maybe you're here because you've received a tip on social media, or maybe you've just been hearing a lot recently about Bitcoin and are wondering what the big deal is? The following videos are a good starting point for understanding how bitcoin works and a little bit about its long term potential:

For lots of additional video resources check out the videos wiki page or /r/BitcoinTV . Peer-reviewed, research papers can be found here and here. Developer resources can be found here. Lots of Bitcoin statistics can be found here.

Where can I buy bitcoins?

You can buy or sell any amount of bitcoin and there are several easy methods to purchase bitcoin with cash, credit card or bank account. A good list of exchanges sorted by region can be found on the exchanges wiki here.

Note: Bitcoins are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. Here are a couple useful sites [bitkoin.io, preev.com] that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".

Securing your bitcoins

With bitcoin you can "be your own bank" and personally secure your bitcoins OR you can use established companies which have secured wallets where they hold the bitcoins for you and provide insurance.

  • If you prefer to let bitcoin banks manage your coins, try Coinbase or Circle.

  • If you prefer to "be your own bank" and have direct control over your coins without having to use a trusted third party, there are many software wallet options here and here. If you prefer easy and secure storage without having to learn computer security best practices, then a hardware wallet such as the Trezor, Ledger, Case Wallet, or KeepKey is recommended.

Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!

2FA requires a second confirmation code to access your account, usually from a text message or app, making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below.

Google Authenticator Authy
Android Android
iOS iOS

Tipping

Use ChangeTip.com (/r/changetip) for tipping people on Facebook, Reddit, Twitter, YouTube, Tumblr, Google+, GitHub, Slack and more! (you can even use custom monikers to tailor your tip to the discussion or add a bit of humor). Read more about ChangeTip at their reddit wiki.

Go to /r/FreeBits to get a few bits to practice with and then tip them forward. Go to /r/BitTippers to play games and solve riddles to earn your bits. Don't forget your flair!

Where can I spend bitcoins?

Store Product
Microsoft Xbox games, phone apps and software
Spendabit and The Bitcoin Shop Search engines of online retailers accepting bitcoin with millions of results
Overstock and Rakuten Everything under the sun
Gyft Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
NewEgg, TigerDirect and Dell For all your electronic needs
Expedia, Cheapair, Lot, Destinia, BTCTrip, Abitsky and 9flats For when you need to get away
BoltVM VPS service
Namecheap For new domain name registration
Cryptostorm, Mullvad, and PIA VPN services
Foodler and Takeaway Takeout delivered to your door!
HumbleBundle, Disco Melee, GreenmanGaming, and Coinplay.io For when you need to get your game on
Reddit Gold Premium membership which can be gifted to others
Shipnik Discounted USPS Priority & Express mail postage

Coinmap and AirBitz are helpful to find local businesses accepting bitcoins. UK residents can find a comprehensive directory of shops, pubs, websites and other places in the UK that accept bitcoins at wheretospendbitcoins.co.uk.

There are also lots of charities which accept bitcoin donations, such as Wikipedia, Red Cross, Amnesty International, United Way, ACLU and the EFF. You can find a longer list here.

Additional resources can also be found at TheBitcoinPage.com

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;

  • 1-3% savings over credit cards or PayPal.
  • No chargebacks (final settlement in 10 minutes as opposed to 3+ months with credit cards / PayPal).
  • Accept business from a global customer base.
  • Increased privacy for your customers.
  • The payment processor can convert 100% of the sale to the currency of your choice for deposit to your account which means there is no need to hold bitcoins and no exposure to price volatility. Alternatively, you can choose to keep a certain percentage of the sale in bitcoin if you wish to begin accumulating it.

If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read more here. Still have mining questions? The crew at /r/BitcoinMining would be happy to help you out.

If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node using this setup guide. You can view the global node distribution here.

Earning bitcoins

Just like any other form of money, you can also earn bitcoins by being paid to do a job.

You can also earn bitcoins by participating as a market maker to allow users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins)

Fundraising

You can use Lighthouse to crowdsource fundraising initiatives with bitcoin. It's similar to Kickstarter, but without intermediaries or exorbitant fees. You can participate in project discussions at /r/LighthouseProjects, and watch the progress of fundraisers at lightlist.io.

Bitcoin Projects

Here is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.

Bitcoin Units

One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:

Unit Symbol Value Info
millibitcoin mBTC 1,000 per bitcoin SI unit for milli i.e. millilitre (mL) or millimetre (mm)
microbitcoin μBTC 1,000,000 per bitcoin SI unit for micro i.e microlitre (μL) or micrometre (μm)
bit bit 1,000,000 per bitcoin Colloquial "slang" term for microbitcoin
satoshi sat 100,000,000 per bitcoin Smallest unit in bitcoin, named after the inventor

For example, assuming an arbitrary exchange rate of $500 for one Bitcoin, a $10 meal would equal:

  • 0.02 BTC
  • 20 mBTC
  • 20,000 bits

If you want to use 'bits' exclusively, just remember that there are 100 satoshis in 1 bit, and 1 million bits in one bitcoin. For more information check out the Bitcoin units wiki.


Still have questions? The friendly folks at /r/BitcoinBeginners would be happy to help you out, or stick around for our weekly Mentor Monday thread. If you decide to post a question in /r/Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit. A complete list of bitcoin related subreddits can be found here

Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.

Welcome to the Bitcoin community and the new decentralized economy!

Submitted August 26, 2015 at 09:24PM by BinaryResult
via reddit http://bit.ly/1heybAC

DCG’s Barry Silbert: ‘We’re excited by blockchain – but just as excited about Bitcoin’


DCG’s Barry Silbert: ‘We’re excited by blockchain – but just as excited about Bitcoin’
http://bit.ly/1PKasrZ

Submitted January 30, 2016 at 12:33AM by werwiewas
via reddit http://bit.ly/1UvDmKq

My transaction hasn’t been confirmed in over 24h, when will it be returned?


My transaction hasn’t been confirmed in over 24h, when will it be returned?
http://bit.ly/1SpxJyj

Submitted January 30, 2016 at 05:18AM by doctorrecommendedmus
via reddit http://bit.ly/1NGaslb

This is how Bitcoin goes mainstream: DFS losing credit card processing contracts


This is how Bitcoin goes mainstream: DFS losing credit card processing contracts
http://nyti.ms/1SpxJhO

Submitted January 30, 2016 at 05:35AM by brighton36
via reddit http://bit.ly/1NGapGc

Eric Lombrozo: Bitcoin Needs Protocol Layers Similar to the Internet


Eric Lombrozo: Bitcoin Needs Protocol Layers Similar to the Internet
http://bit.ly/1QxME7H

Submitted January 29, 2016 at 11:10PM by kyletorpey
via reddit http://bit.ly/1nDxu7K

Rocketships and The Parable of the Desert Island


Rocketships and The Parable of the Desert Island

This morning I awoke to a post from /u/nullc describing how Bitcoin is dissimilar to a centralized payment network (he's right about that). Bitcoin is not Visa, even with 1GB blocks.

The analogy is made to a rocket ship with multiple stages, or layers. Each layer is important, and not all features or functions can be squished down into one layer. I am not an engineer, but I understand and respect this principle. I don't believe the base Bitcoin protocol can (or should try) to handle Visa throughput. Bitcoin is built to be the foundation of a decentralized financial system, not a high-capacity payment network. /u/nullc is correct about this.

And sure, Bitcoin can be appropriately thought of as a rocket, bound for the moon. We need brilliant engineers to build it. It takes a long time, the stakes are high, and design shouldn't be left to the crowd. Multiple stages and layers are needed, absolutely.

I'd like to consider another analogy, not of Bitcoin as a machine/rocket, but of the community which supports and builds it…

Let's imagine a desert island, with a crowd of survivors from some shipwreck or airplane crash (think of the opening scene from Lost). We, the Bitcoin community, are perhaps like that crowd. To get off the island, to succeed, we'll need to build a boat (or a rocket?). We'll need to work together. We have different skills, perspectives, and certainly different temperaments. Few of us knew each other before we arrived here, yet we find ourselves in close quarters, all with the shared vision of escape and all slightly terrified of failing.

And there is so much work to be done.

Consider that, even to survive for a while while we build our escape vessel, some prerequisite activities must be pursued. Food must be found. Water. Shelter. We must tend to the wounded. We'll need to seek out and collect raw resources, and form teams for construction. We disavow monarchs, so we must nurture social consensus and decentralized judgement.

Now, consider in the early days of this scenario, there might be significant controversy. Perhaps there is heavy disagreement on whether we should secure a source of clean water, or build shelter first. Maybe a violent storm is coming. A well can be dug, but only with the majority helping. A shelter can be built, but again only with the majority's effort.

At first, those who believe water is most important (call them WaterTeam) and those who believe shelter is most important (call them ShelterTeam) debate over the merits of each. They engage in civil debate, they are polite. They try to convince the other of the preeminence of their project. Unfortunately, neither is able to convince the other. Soon, bickering, squabbling, distrust of one another takes over from the previously rational conversation. Each team thinks the other must have bad motives, for how could they be so blind? Obviously, water is needed first. Obviously, shelter before the storm is paramount. Who sent these guys? Who do they work for? Why are they trying to sabotage us? They must be either idiots, or intentionally trying to destroy our chances of survival. They are not like us. They are the enemy. We are so vastly different, we must fight and diminish them.

Factions form, and become entrenched. Soon, the groups aren't even talking with each other. Meanwhile, thirst grows, while the storm draws nearer.

TeamWater, knowing itself to be correct, proceeds to dig the well. But they keep getting distracted. Shouts from TeamShelter are incessant. Several of TeamWater's best engineers spend half their time trying to keep TeamShelter from interfering with them. Whenever TeamShelter brings up their concern, which has been repeated so often, they are told, "Look, water is essential for life. If we don't have water, we will all die, and the storm won't matter. Let us dig this well." TeamShelter accuses them of elitism, of not paying attention to the looming storm. "Look how many people think shelter is important! The storm is almost here!"

Then, one of TeamShelter freaks out, writes a blog post, dismissing the entire effort, saying it has failed, and runs into the ocean never to be seen again.

Things turn darker. The incident frightens some from TeamShelter. They genuinely worry that if TeamWater maintains its stubborn hold on the group, everyone may indeed be doomed. Several people huddle together, and decide they're going to go off and find shelter on their own. They are going to split the group. It's contentious.

"You fools!" says TeamWater, "Don't you know how dangerous that is? Who knows what is out in that forest, there could be monsters. We would all need to go together, and it needs careful planning."

"Okay, then." TeamShelter says, "Will you promise to come with us to gather materials for shelter after the well is done?"

Silence.

"Will you guys help us build the shelter after the water is finished?"

Silence.

"Hello?!"

"This is not a democracy," TeamWater says, "We will not be swayed by public opinion. We are engineers, and we think the well is important, so we will continue building it. Gathering materials for shelter is very risky."

"Well okay, but we WILL build shelter, right?" TeamShelter asks.

"We've calculated that water is most important, so that's what we're doing." TeamWater counters.

"Okay, and then after that, shelter?"

"Getting the shelter will be risky. Right now, we need water." TeamWater reminds them. Insults fly. Tempers flare.

"Guys, we're talking past each other and it isn't very productive. We just need to know that, after the well, we can expect to go get some shelter. We know the shelter won't be permanent. We know it won't solve all our problems. We know it won't make us as efficient as Visa. We know there are risks out to there in obtaining it. We know water is important, too, but when the $%*# are we getting shelter?"

"Water is most important, please stop bothering us. We are engineers."

And both groups huddle down in their sandy trenches. Thirsty, cold, and angry with each other. The well proceeds slowly, subject to constant heckling and distraction.

TeamWater, while correct in its assessment of the importance of water, has been myopic. Focused on the building the well, and confident in its engineering acumen, it has ignored, to the peril of everyone, the importance of simple social cohesion. "We shouldn't have to be babysitters. We are not a PR company. It's not our fault if the masses can't understand the importance of the well," they say.

It is, as so common with human enterprise, an instance of missing the forest for the trees. Such benefit could be had, at such minimal cost, by simply looking up, recognizing the genuine worry and desire of the group for shelter, and waylaying their concerns.

"Yes, we know shelter is important," TeamWater could so easily say, "Your fear of the impending storm is valid. Help us with this well, and we'll then join you in the search for shelter. It's dangerous, so we need to be thoughtful, but we want shelter too and we'll get to it once this well is ready. Let's help each other."

Yes, let's help each other. Is that such an alien request? Is that so far out of the scope of an engineer's plans?

All that is required is a little humility, a little empathy, and indeed something that all engineers should have natively, a little reason… for a rocket ship is unlikely to ever be built if its team sits in disarray, unwilling to seize such considerable social benefit at such mere cost.

Submitted January 30, 2016 at 03:39AM by evoorhees
via reddit http://bit.ly/1RRtkWb

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