LETS TALK BITCOIN

Episode 73 Reset Your Expectations

Participants:
Adam B. Levine (ABL) Host
Andreas M. Antonopo!os (AA) Co"#ost
Step#anie Mrp#$ (SM) Co"#ost
Amir Taa%i (AT) Bit&oin deve!oper' &ore &o!!a(orator at )ar% *a!!et + Coin,oin
-eter Todd (-T Bit&oin &ore deve!oper
Toda$ is ,anar$ .
t#
/012. *e!&ome to Episode .3 o4 Lets Ta!% Bit&oin' a t5i&e 5ee%!$
s#o5 a(ot t#e ideas peop!e and pro6e&ts (i!din7 t#e di7ita! e&onom$ and t#e 4tre o4
mone$. 8isit s at 555.!etsta!%(it&oin.&om 4or or dai!$ 7est (!o7' a!! or past episodes
and' o4 &orse' tippin7 addresses. 90:/3;
M$ name is Adam B. Levine and toda$ 5ere 7oin7 deep.
*e start t#e s#o5 5it# t#e &on&!sion o4 t#e 8e7as Host Session.
Step#anie' Andreas and I 7et meta and ta!% t#e ori7ins o4 LTB' t#e 6orne$ so 4ar and
4ran%!$' !ots more.
T#e se&ond part o4 toda$s s#o5 4eatres one o4 m$ 4avorite peop!e in t#e spa&e' Amir
Taa%i' t#e Minorit$ <eport' as I !i%e to &a!! #im sometimes' o4 Bit&oin deve!opment.
He sat do5n !ast mont# 5it# -eter Todd' Bit&oin deve!oper and no5 &#ie4 s&ientist at
t#e Master&oin =ondation to ta!%... 5e!!' ever$t#in7.
T#is intervie5 is ver$ 5ide ran7in7 and de4inite!$ not to (e missed. En6o$ t#e s#o5> 91:02;
???????????????????????????????????????????
ABL: I4 t#eres one t#in7 t#at is tre a(ot Bit&oin' or tre a(ot &r$pto&rren&$' (road
spea%in7' is t#at t#in7s move in&redi(!$ 4ast. I 5as t#in%in7 a(ot t#is re&ent!$ and I rea!i@ed
t#at t#e reason 5#$ t#is is movin7 as 4ast as it is is (e&ase 5e rea!!$ #ave #ad a!most no
4inan&ia! innovation in a(ot 4i4t$ or siAt$ $ears. T#ats (een (e&ase ever$ time 4inan&ia!
innovation #as &ome a!on7' t#ere #as (een a 5a$ to stop it and (e&ase t#e in&entives to stop
it 4or t#e eAistin7 po5er str&tre #ave a!5a$s (een so 7reat t#at 5e 7et !itt!e snea%s t#ro7#'
!i%e a de(it &ard *#oo"#oo> Bt !timate!$' 5ere ta!%in7 a(ot t#e same s$stems' t#e same
&ompanies. I mean' 5#at ot#er indstr$ #as t#atB No5 5e #ave a s$stem 5#ere $o dont
#ave t#at pro(!em' 5#ere t#e 4ai! states arent re!iant on &entra! points o4 4ai!re and are
instead re!iant on eit#er (road inva!idations o4 te&#no!o7$' or mass eAods 4rom t#ese ne5
te&#no!o7ies. =ai!re ($ t#eir adoption or 4ai!re ($ te&#ni&a! 4ai!re' (t not 4ai!re ($
permission and so' i4 t#at 5#at 5as stoppin7 s (e4ore' t#en t#at means t#at 5e #ave a(ot
4i4t$ or siAt$ $ears o4 te&#no!o7i&a! and 4inan&ia! innovation t#at s#o!d (e #appenin7 prett$
m&# a!! at on&e (e&ase as its (een (ott!ed p' sdden!$ t#e &or% is o44 and t#e pressre &an
(e re!eased. T#ats %ind o4 a !on7 5a$ o4 sa$in7 t#at 5e started t#is s#o5 seven mont#s a7o.
(La7#ter) 9/:/1;
SM: So m&# #as #appened in t#at time. 9/:/3;
ABL: Cea#. 9/:/2;
AA: *#at a 5i!d ride. 9/:/D;
ABL: Serios!$. 9/:/E;
SM: Ho!$ s#it> 9/:/E;
ABL: *ere re&ordin7 t#is and I t#in% 5e 6st re!eased Episode EE and t#at doesnt in&!de
t#e (ons &ontent t#at 5eve re!eased' t#at doesnt in&!de t#e de(ates t#at 5eve #osted' t#at
doesnt in&!de t#e... t#e amont o4 t#in7s t#at #ave &#an7ed in t#is amont o4 time is &ra@$
and I 5anted to s#are some perspe&tive. *#en I started Lets Ta!% Bit&oin' I #ad (een
nemp!o$ed 4or t5o $ears and 5as !ivin7 o44 o4 savin7s at t#at point and a!so #e!p 4rom m$
parents. I #ad sort o4 retreated into t#e trees' as I !i%e to sa$. I 7re5 p in t#e Napa 8a!!e$
and 5e #ave some red 5ood 4orests p t#ere t#ats ver$' ver$ steep too steep 4or a7ri&!tre'
too steep 4or &onventiona! a7ri&!tre (t 4or t#e t$pe o4 n&onventiona! s$stemi&
perma&!tre t#at Ive a!5a$s (een interested in' and t#at m$ 5i4e #as (een ver$ interested
in' it 5as %ind o4 per4e&t. T#e point is t#at 5#en I retreated into t#e trees' at t#at point' I #ad
(een readin7 Fero#ed7e ever$ mornin7 at 2.00am 4or a(ot t5o $ears and tr$in7 to !earn...
and 5at&#in7 mises.or7 videos and !e&tres 4rom &on4eren&es' and t#in7s !i%e t#at' and 5as
rea!!$ !oo%in7 4or a 5a$ to #ave an impa&t in t#is spa&e. T#is is 5#ere I sa5 t#at 5e &o!d
#ave an impa&t. 93:/E;
Initia!!$' I started a di44erent s#o5 (esides Lets Ta!% Bit&oin and on t#e !ast episode o4 t#at
s#o5' T#e )ai!$ Bit&oin S#o5' 5e #ad Andreas on as a 7est and #e des&ri(ed' in ver$ 4ier$
4as#ion' 5#$ MtGoA 5as &rimina!!$ in&ompetent and 5#$ t#at 5as pro(a(!$ never 7oin7 to
&#an7e. Step#anie' 5e (ro7#t #er in initia!!$ (e&ase I 5anted to #ave someone 5#o 5as
not me doin7 t#e introd&tion to t#e s#o5. *e initia!!$ &ontra&ted 5it# Step#anie to do voi&e
5or% 4or t#e s#o5 and' as 5e ta!%ed and 5e 7ot to %no5 ea&# ot#er a !itt!e (it (etter' it
&rossed m$ mind t#at I 5as interested in #er as a 7est #ost (e&ase $o 5ere a!read$ doin7 a
!i(ert$ s#o5 at t#e time. T#at pro6e&t imp!oded a4ter 4ive da$s. It 5as a dai!$ s#o5 and I 5as
doin7 a!! t#e 5or% m$se!4 on @ero (d7et. I &a!!ed it m$ H=eats o4 Stren7t#. T#e idea 5as
t#at $o do an impossi(!e t#in7' in an impossi(!e time4rame' 5it# a(so!te!$ @ero (d7et and
no ta!ent 5#atsoever' and t#en peop!e t#in% t#at $ore ama@in7. *e did t#is and m$ timin7
5as 7reat (e&ase t#at initia! s#o5 t#ose initia! 4ive episodes 5ere drin7 t#e pri&e (((!e'
5#ere 5e 6mped p to I/E0 and' at t#e end o4 t#e pri&e (((!e' I &o!!apsed. (La7#ter)
92:/J;
SM: Co de4!ated. 92:31;
ABL: T5o da$s !ater' t#e pri&e &o!!apsed. A(so!te!$' and I too% a 5ee% o44 and 6st s!ept
(e&ase I #adnt (een s!eepin7. 92:3.;
AA: I remem(er it 4rom m$ perspe&tive' 5#en $o &ame to me and 5e #ad a !on7
&onversation a(ot #o5 t#e previos s#o5 #ad &o!!apsed and $o 5ere Kite de6e&ted' at t#e
time' and 4ee!in7 t#at $o didnt #ave t#e ener7$ to re(oot' and $od &reated eApe&tations 4or
a dai!$ s#o5 and &o!d $o rea!!$ p!! o44 a 5ee%!$' and #o5 $o 5o!d 4ind #osts. More
important!$' #o5 peop!e 5erent appre&iatin7 t#e va!e o4 #avin7 an adien&e and #avin7
#i7# Ka!it$ prod&tion (t 5ere !oo%in7 4or Kite a (it o4 mone$ in order to (e invo!ved in
t#e s#o5. I remem(er tr$in7 to persade $o t#at t#is 5as t#e 7reatest (!essin7 $ove ever
re&eived (e&ase ot o4 t#at 5re&%a7e' $o #ad an opportnit$ to 5ipe t#e s!ate &!ean' set
$or o5n terms and start a7ain. *e de&ided to do 6st one s#o5' o44 t#e &44 t#at =rida$ and
t#e rest is #istor$. I 4ee! !i%e t#e &#emistr$ &!i&%ed and 5e &reated somet#in7 5onder4!
5#i&# 5as a(!e to rea!!$ #i7#!i7#t $or in&redi(!e ta!ent and (rin7 t#is s#o5 to t#e !eve! it #as
(een toda$. It 5as a p#oeniA moment ot o4 t#e as#es o4 t#e previos s#o5' 5e &reated
somet#in7' $o &reated somet#in7 5onder4!. 9D:D1;
ABL: I t#in% t#at 5e &reated somet#in7 5onder4!. I de4inite!$ t#in% t#at t#is #as (een ver$
m&# a team e44ort. T#is 4ee!s !i%e Im 6st sittin7 #ere pattin7 s on t#e (a&%. T#ats not m$
intention. T#e point is t#at t#e perspe&tive t#at $o 7ain 4rom (ein7 invo!ved in a pro6e&t !i%e
t#is' on t#e one #and its not a one 5a$ t#in7 5ere not 7ivin7 ot va!e and 7ettin7 not#in7
(a&% in retrn even (esides t#e monetar$ side o4 it. T#e &onne&tions t#at 5eve made and t#e
peop!e 5#o #ave rea&#ed ot to s and t#e peop!e 5eve met. <ea!!$' 5e 5ere ta!%in7 a(ot
&on4eren&es ear!ier t#ats 5#$ t#ese &on4eren&es are so va!a(!e is (e&ase t#e peop!e 5#o
$o meet and t#e peop!e 5#o are a&ta!!$ se!4"se!e&tin7 to (e interested are prett$ 4rea%in
in&redi(!e.
SM: A !ot o4 opportnities #ave &ome ot o4 it !i%e 5i!d4ire. 9E:/2;
ABL: I 4ee! !i%e Lets Ta!% Bit&oin #as 6st (een one series o4 tippin7 points a4ter anot#er
(e&ase rea!!$' 5#ats #appened is t#at 5eve #it&#ed or 5a7on to Bit&oin. *#en Bit&oin
7oes p in pri&e' or adien&e 7oes p. *#en Bit&oin 7oes do5n in pri&e' or adien&e sta$s
pt. T#ese peop!e' on&e t#e$ 7et !ooped in and t#e$ nderstand 5#ats 7oin7 on' t#en t#e$
dont !eave. T#ats rea!!$ di44erent I t#in%. 9E:23;
SM: I t#in%' as 5e 7o 4or5ard' 5eve 7ot to (e &are4!. T#in7s are movin7 so 4ast in t#e
Bit&oin 5or!d' t#at 5eve 7ot to (e &are4! to &ommni&ate in a 5a$ t#at peop!e &an
nderstand' even i4 t#e$re ne5 and a!so sta$ on t#e &ttin7 ed7e 4or t#ose 5#o are a!read$ in
t#e !oop a(ot Bit&oin and a5are o4 5#ats 7oin7 on. I t#in% 5eve done a prett$ de&ent 6o(
o4 t#at so 4ar. Ma$(e 5e &o!d (e a !itt!e more ne5(ie 4riend!$ (t t#ats OK' 5ere 5or%in7
on it a!! t#e time. 9.:0L;
ABL: I tota!!$ disa7ree 5it# t#at. I 4ee! !i%e 5e #ave not done a ne5(ie 4riend!$ s#o5 at a!!.
I even !istened to or re&ent ne5(ie 4riend!$ episode and I dont 4ee! !i%e its t#at. T#e &ore
pro(!em is t#at 5#en I started Lets Ta!% Bit&oin' t#e &onversation t#at I 5anted to #ave... I
#ad in m$ #ead t#at I 5anted it to (e 4or ne5 sers (e&ase t#at 5as 5#ere I rea!!$ sa5 t#e
ni&#e ne5 sers 6st &omin7 in #ad no options' @ero options' it 5as terri(!e. No5 t#e$ #ave
t#in7s !i%e 555.tr$BTC.&om and t#ere are so!tions ot t#ere t#at arent adio pod&asts (t
t#at a&ta!!$ &an #e!p 5a!% $o t#ro7# t#at pro&ess. T#e &onversation I 4ee! !i%e t#at 5eve
(een #avin7 is t#is more #i7#er !eve! &onversation " is t#is &onversation t#at is ne&essar$ to
#ave' simp!$ (e&ase its t#e important one ri7#t no5. Its not a ne5 ser 4riend!$
&onversation (e&ase 5ere ta!%in7 5it# t#ese &on&epts on a #i7# !eve!' 5ere ta!%in7 a(ot...
peop!e are str77!in7 to nderstand 5#at Bit&oin means to t#em no5 and 5ere t#in%in7
$ears ot. 9.:DD;
SM: T#ere are tens o4 t#osands o4 peop!e 5#o !isten to t#is s#o5. Ho5 do 5e %eep a!!
t#ose !isteners i4 t#e$ &ant 4o!!o5 t#e &onversation (e&ase t#e$ are too ne5B I t#in% t#e$
&an. 9L:03;
AA: Trst t#e adien&e. T#e$ !earn a(ot Bit&oin and t#en t#e$ se t#is s#o5 to in&rease
t#eir !eve! o4 %no5!ed7e and &at&# p. I t#in% t#ats 5#$ $o see ne5 !isteners &omin7 in and
&at&#in7 one episode and t#en startin7 4rom t#e ver$ (e7innin7 and !istenin7 to siAt$ ei7#t
episodes (a&% to (a&%. 9L:1L;
ABL: T#ats &omp!ete!$ ri7#t. 9L:1J;
AA: *eve seen t#is pattern repeat a7ain and a7ain. I dont t#in% t#ats a pro(!em.
Essentia!!$' $ove &reated a !i(rar$ o4 &ontent t#at peop!e &an &at&# p 5it# (t !ets ta!%
more a(ot t#e a&&e!eratin7 natre o4 t#is p#enomenon. I mean' t#e !ast siA mont#s #ave
7one past in a (!r (t' at t#e same time' I t#in% t#eres t#is rea!!$ interestin7 di&#otom$
5#i&# is t#at its ver$ eas$ 4or s' (ein7 in t#is (((!e and (ein7 &a7#t p in a!! o4 t#is
4or5ard motion' to assme t#at Bit&oin #as arrived' to assme t#at essentia!!$' a!! o4 t#e (i7
t#in7s #ave a!read$ #appened' or t#at t#e pri&e #as rea!!$ s#ot p to #i7# !eve!s' or t#at no5
Bit&oin is eApensive t#e opportnities #ave (een missed. I t#in% t#at is so 5ron7. 9L:DL;
SM: Cea#. 9L:DL;
AA: I t#in%' ri7#t no5' peop!e are pantin7 4rom t#e 7reat as&ent p t#e montain and Im
!oo%in7 p and I see Everest a#ead o4 s. *e #avent even &rossed t#e 4oot#i!!s. T#is is so
sma!!. I remem(er at t#e San ,ose &on4eren&e' I 5as rantin7 and ravin7 to one o4 m$ 4riends
a(ot #o5 ama@in7 Bit&oin 5as' and #o5 ama@in7 t#is &on4eren&e 5as' and #o5 t#eres a!!
t#is 7!o(a! re&o7nition. Ima7ine' at t#at time' a!! t#is 7!o(a! re&o7nition a(ot Bit&oin and
#o5 5ere (e7innin7 to 7et a5areness in mainstream. M$ 4riend sent me a !in% to a
&on4eren&e t#at 5as #appenin7 at t#e San ,ose Convention Center' t#at I t#in% 5as a(ot
a7ri&!tra! eKipment t#at #ad ten times t#e adien&e t#at 5e #ad at t#e Bit&oin &on4eren&e'
5it# one 5ord nderneat# t#e !in%. -erspe&tive> (La7#ter) S&# a 7i4t. -erspe&tive peop!e
5e are sti!! sma!!er t#an... t#ere are 4etis#es 5it# more peop!e in t#eir &ommnit$ t#an ors
at t#e moment. T#ere are spe&ia!i@ed dentist &on4eren&es t#at #ave a #ndred times t#e
adien&e t#at 5e #ave at even t#e (i77est Bit&oin &on4eren&es. Sti!!' JJ.JJJM o4 t#e
pop!ation o4 t#e 5or!d #as never #eard o4 Bit&oin. In t#e #eart o4 Si!i&on 8a!!e$' $o 7o
spea% to some o4 t#e most &ttin7 ed7e' 4or5ard t#in%in7 te&#no!o7ists and nine ot o4 ten o4
t#em #avent even #eard a(ot Bit&oin. I4 t#e$ #ave' t#e$ t#in% its some %ind o4 4nn$
mone$N t#e$ dont nderstand 5#at it is and t#e imp!i&ations it #as. T#e 5eird t#in7 #ere is
t#at 5#i!e 5ere 7oin7 at t#is (rea%ne&% speed and it 4ee!s !i%e so man$ t#in7s #ave
#appened' 5eve (are!$ to&#ed t#e &ons&iosness o4 t#e 5or!d. *#at t#at te!!s me is O# m$
7od> /012 is 7oin7 to (e a(so!te!$ (rea%ne&%. I mean' #o!d on to $or #ats> Hman (ein7s
#ave a ver$ #ard time intitive!$ nderstandin7 eAponentia! 7ro5t# &rves. Its somet#in7
t#at <a$ Kr@5ei! 5rote a(ot in T#e Sin7!arit$ is Near. Its a ver$ interestin7 (oo% i4 $o
5ant to read it (t 5e tr$ to eAtrapo!ate and 5e &an on!$ eAtrapo!ate intitive!$ on a !inear
s&a!e. *#en $ore doin7 t#at on an eAponentia! &rve' 5#en $o !oo% ot (e4ore t#e e!(o5
o4 t#e &rve' ever$t#in7 !oo%s #ori@onta! and t#en one da$' 5it#ot $o even noti&in7' $o
!oo% a#ead and ever$t#in7 is verti&a! and $o 6st pass t#e &rve. *e #avent even #it t#e
e!(o5 $et. I4 t#is is t#e rate o4 7ro5t# in (rea%ne&% speed' 5eve 7ot at t#is pointN at some
point 5ere 7oin7 to #ave or AOL moment. At some point' 5ere 7oin7 to #ave a &risis
pre&ipitatin7 event t#at is 7oin7 to s#i4t t#e (a!an&e dramati&a!!$. T#at tippin7 point #as not
#appened and 5#en t#at tippin7 point #appens' 5#at 5ere seein7 toda$ is 7oin7 to (e sma!!
potatoes &ompared to 5#ere Bit&oin &o!d 7o. No5' dont dis&ont t#e possi(i!it$ t#at 5e
&o!d a!! &ras# and 4a!! on or 4a&es (e&ase o4 some insidios (7 in t#e &ode. I dont t#in%
t#ere are an$ eAterna! 4a&tors t#at &an (rin7 Bit&oin do5n an$more. *ere past t#at #mp.
*ere too (i7' 5ere too 7!o(a!' and 5ere too 5idespread to s#t do5n 4rom t#e otside. *e
&an on!$ do it 4rom t#e inside no5. Bit&oin &an on!$ &ommit si&ide and t#at is a possi(i!it$
over t#e neAt t#ree $ears. 911:DJ;
ABL: T#ats t#e =a&e(oo% paradoA' ri7#tB 91/:01;
AA: Its a diminis#in7 possi(i!it$ and rea!!$' 5#at I see is t#e potentia! 4or s to ma%e it as
4ar' 6st simp!$ srvive at t#is (rea%ne&% speed nti! 5e #it t#e e!(o5 and t#en ama@in7
t#in7s 5i!! #appen. T#en' 5e &#an7e t#e 5or!d. 91/:1D;
ABL: T#is is tre a(ot an$ net5or% re!iant' ri7#tB I4 $ore ta!%in7 a(ot =a&e(oo%'
essentia!!$' t#e$re a!so tr$in7 to not (rea% t#emse!ves 5#i!e a!so tr$in7 to ma%e it so t#at
t#e$re 7ood 4or t#e 4tre' so t#at t#e$ &an #ave mode!s to moneti@e' and a!! t#ese varios
t#in7s. Its t#e same t#in7 5it# Bit&oin. O!timate!$' M$Spa&e isnt 7oin7 to destro$
=a&e(oo%' (t =a&e(oo% &o!d destro$ =a&e(oo%. Basi&a!!$' is t#at 5#at $ore sa$in7 #ereB
91/:3D;
AA: Ces (t t#eres one (i7 di44eren&e and I t#in% t#e (i7 di44eren&e t#at most peop!e
#avent rea!i@ed is t#e$ !oo% at para!!e! mode!s !i%e' 4or eAamp!e t#e dep!o$ment o4 t#e
internet and t#at reKired some serios in4rastr&tre #eav$ !i4tin7' 5#i&# 5e dont need in
Bit&oin. Co !oo% at =a&e(oo%. =or =a&e(oo% to sstain its 7ro5t#' it #ad to deve!op an
entire!$ ne5 mode! 4or server dep!o$ment' 4or server provision' 4or (i!din7 servers' 4or
(i!din7 data &enters and 4or operatin7 a massive 7!o(a! net5or%. *e dont #ave an$ o4 t#at.
Co insta!! t#e app adoption itse!4 &reates in4rastr&tre. Ever$ person 5#o adopts (e&omes
part o4 t#e in4rastr&tre ($ rnnin7 a 4!! node &!ient i4 t#e$ &an' ($ ($in7 some minin7 ri7s
i4 t#e$ &an and essentia!!$' 5#ats rea!!$ interestin7 a(ot t#is is t#at t#ere are no &onstraints
to t#e s&a!e o4 Bit&oin in terms o4 in4rastr&tre (e&ase adoption and in4rastr&tre #appen at
t#e same time. *e dont #ave a pro(!em o4 rnnin7 ot o4 &apa&it$ (e&ase ever$ ne5 ser
(rin7s t#e &apa&it$ 5it# t#em and' in 4a&t' i4 $o ta%e it to its eAtreme' Bit&oin rea!!$
eApresses t#e &ore net5or% e44e&t &on&ept o4 Bo( Met&a!4e 5#o 4irst ta!%ed a(ot it in 1JL2'
5#i&# is t#e va!e o4 t#e net5or% in&reases eAponentia!!$ 5it# t#e addition o4 ea&# node
(e&ase t#ere is no over#ead to addin7 a node' t#e va!e o4 t#e net5or%' t#e &apa&it$ o4 t#e
net5or%' t#e ve!o&it$ o4 t#e net5or% a!! o4 t#ose t#in7s rea!!$ do in&rease eAponentia!!$
5it# t#e addition o4 ea&# node. I t#in% in t#e neAt $ear' t#e most important metri&' t#e on!$
metri& t#at matters is ser adoption and so 5e dont #ave man$ o4 t#e &onstraints. In 4a&t' i4
5e do not#in7 in t#e &ore proto&o! in Bit&oin ri7#t no5' 5e &an s&a!e it. T#ere are a 4e5
pro(!ems 5it# (!o&%&#ain si@e' t#ere are a 4e5 pro(!ems 5it# transa&tion ve!o&it$ and
&apa&it$ (t t#e$re not t#at di44i&!t and t#e$ &an (e addressed. Ot#er t#an t#at' t#is net5or%
rea!!$ doesnt #ave too man$ &apa&it$ &onstraints. *#at 5ere 7oin7 to see is a !eve! o4
eAponentia! 7ro5t# t#at $o ver$ rare!$ see in te&#no!o7ies and t#en' add to t#at t#e ot#er
side o4 t#e &oin t#e e&onomi& in&entives. O# m$ 7od> T#e e&onomi& in&entives t#is is
t#e 4irst net5or% e44e&t t#ats 4e!!ed ($ mone$ (e&ase it is mone$. *e #ave never' in t#e
#istor$ o4 te&#no!o7$' seen t#at (e4ore. T#e 4irst mone$ t#at is di7ita! #as its o5n !eve! o4
net5or% e44e&t t#at is a #7e m!tip!ier so it &reates investment 4rom t#e inside ot' instead o4
eApe&tin7 it to &ome 4rom t#e otside in. I4 5e a&ta!!$ mana7e to (ootstrap peer to peer
&ro5d"sor&in7' 5e &an a&&e!erate it anot#er 4a&tor o4 ten' anot#er order o4 ma7nitde. *#en
peop!e t#in% Bit&oins eApensive at I1'000' 5ere rea&#in7 or &apa&it$ !imitsN I !a7#
(e&ase $o #ave seen not#in7 $et. I rea!!$ am ver$ optimisti& (e&ase t#e more time t#at
7oes ($' t#e more Bit&oin srvives' t#e stron7er it 7ets and it is a!read$' I t#in%' nstoppa(!e
and its simp!$ a&&e!eratin7 !i%e a 4rei7#t train and an$(od$ 5#o stands in 4ront o4 it' 5i!! (e
sKis#ed !i%e a (7. 91D:3L;
????????????????????????????????????????????????
ADVERT:
-rse.io is a 7i4t eA&#an7e t#at !ets $o 7et (it&oins at on!$ a EM premim and 5it# a &redit
&ard. Ho5 does it 5or%B Co pr&#ase items 4or ot#er -rse.io mem(ers 4rom t#eir Ama@on
5is# !ists. In retrn' $o 7et (it&oins in t#e amont o4 t#e Ama@on pr&#ase. T#e more
peop!e parti&ipate' t#e more (it&oins 5i!! (e avai!a(!e. So' te!! $or 4riends. Get eA&!sive
a&&ess toda$ at 555.-rse.io. 91E:/J;
ADVERT:
Eas$)NS is t#e S5iss Arm$ %ni4e 4or $or domain names. He!pin7 meet t#eir &stomers
individa! needs sin&e 1JJL. Eas$)NS #as (een an otspo%en &riti& o4 SO-A and CIS-A.
Eas$)NS 5as an ear!$ spporter o4 Bit&oin and no5 t#e$ are prod to sponsor t#is s#o5. )o
(siness 5it# a &ompan$ t#at s#ares $or va!es. Get a 13M dis&ont 5#en $o pa$ 5it#
(it&oin. Go to (it&oin.eas$)NS.&om and (e sre to se dis&ont &ode LTB. 91.:01;
??????????????????????????????????????????
ABL: *#enever 5ere ta!%in7 a(ot t#e pri&e' t#e di44i&!t t#in7 is to tr$ and stret&# ot t#e
time4rame. I t#in%' !timate!$' t#ats 5#at $ore doin7 #ere Andreas' ri7#tB Core sa$in7
over t#e neAt sa$' !on7 time in Bit&oinN !ets sa$ a $ear' t#ats 5#at $ore ta!%in7 a(ot.
91.:3/;
AA: Cea#. -eop!e ta!% a(ot a ten $ear #ori@on 4or Bit&oin' 5#i&# I t#in% is !di&ros. I pt
an pper !imit on Bit&oin o4 a(ot t#ree $ears. -rett$ m&# ever$t#in7 important in Bit&oin
is 7oin7 to p!a$ ot in t#e neAt t#ree $ears. Over time' 5#at Im doin7 is Im &ompressin7
t#at time4rame. -revios!$' I t#o7#t t#at a !ot o4 t#e t#in7s t#at 5e 5o!d a&#ieve in /012'
5e #ave no5 a&#ieved in /013 and i4 5e &ontine at t#is pa&e' t#is t#ree $ear time4rame is
7oin7 to &ompress do5n to a $ear and a #a!4 or t5o. <ea!!$' I t#in% peop!e need to reset t#eir
eApe&tations and t#eir per&eption o4 5#ere Bit&oin is 7oin7 and #o5 4ast its 7oin7. 91L:03;
ABL: *#ere is Bit&oin 7oin7 and #o5 4ast is it 7oin7 t#ereB Lets reset peop!es
eApe&tations. I 4ee! !i%e Im prett$ 4or5ard !oo%in7 on t#is Andreas' (t Im sittin7 #ere
#avin7 t#is &onversation 5it# $o and I 4ee! !i%e I s#o!d 6st (e intervie5in7 $o rat#er t#an
doin7 t#is as a #ost t#in7 (e&ase $o ver$ &!ear!$ #ave it in $or #ead 5#ere $o t#in% 5ere
7oin7. Im sti!! more n&!ear on #o5 !on7 it ta%es s to 7et t#ere. I a7ree t#at t#in7s are
a&&e!eratin7 rea!!$ 4ast (t I mean 5#at do $o t#in% 5ere 7oin7 to see over t#is t#ree $ear
time #ori@on $ore ta!%in7 a(ot. 91L:/J;
AA: I t#in% 5ere in a niKe position (e&ase o4 t#e 5or% 5e do' 5e 7et a !ot o4 peop!e
5#o &ome to ta!% to s a(ot t#eir start"ps 5e!! (e4ore even t#e p!annin7 sta7e and as% s 4or
or opinion' and as% 4or or #e!p and te&#ni&a! advi&e. *e &an see some o4 t#e t#in7s t#at are
in t#e pipe!ine. *#at Im seein7 is t#is &omp!ete!$ ne5 5ave o4 &ompanies t#at are &omin7
in t#at are ps#in7 adoption in t#ree di44erent 5a$s. T#e 4irst one is (rin7in7 in matre
operationa! and mana7ement teams' a 5#o!e ne5 spirit. T#e a7e o4 -H- M$SPL deve!opers
5#o t#ro5 to7et#er an app!i&ation and tr$ to (i!d a 7!o(a! eA&#an7e on top o4 t#at t#at era
is tr!$ over. -eop!e 5#o are &omin7 into t#is (siness no5' &ome 5it# deep te&#no!o7i&a!
eApertise 5it# deep mana7ement and operationa! eApertise. T#ats 7oin7 to &#an7e t#e
ve!o&it$ o4 Bit&oin. T#e se&ond one is t#at 5ere seein7 t#e deve!opment o4 t#e deve!opin7
5or!d and so' 5e sa5 t#e s#i4t in t#e &enter o4 7ravit$ and as more and more o4 t#e &ontries
in t#e deve!opin7 5or!d &ome on!ine' $o 7et t#is sim!taneos rs# o4 ne5 ser adoption
5#i&# is 7oin7 to ps# t#e pri&e p and at t#e same time $o 7et ne5 deve!opers' ne5
&ompanies' ne5 start"ps start"ps t#at &an no5 operate on a 7!o(a! !eve!. I4 $ore in
Ar7entina and $o #ave Bit&oin' $o &an start (e#avin7 !i%e a 7!o(a!i@ed Mom and -op s#op
a Mom and -op m!tinationa! and $o &an a&ta!!$ (rin7 to (ear t#e resor&es o4 t#e entire
7!o(es 4inan&ia!' &apita!' deve!opment eAperien&e' $or o5n deve!opers' &#eap !a(or 5it#in
$or o5n &ontr$ and &ompete #ead to #ead 5it# ever$ ot#er &ompan$ in t#e Bit&oin
e&os$stem. T#at n!eas#es a torrent o4 innovation at t#e ed7es. T#e t#ird part o4 t#is is t#is
ne5 5ave o4 Bit&oin innovation t#at is (asi&a!!$ s#i4tin7 t#e 4o&s 4rom Bit&oin &rren&$ and
ena(!in7 eA&#an7es' pa$ment net5or%s et& sort o4 t#e perip#eries o4 Bit&oin ena(!in7 some
o4 t#e on"ramps and speedin7 p adoption. As t#at is p!a$in7 ot' no5 5ere seein7 t#e 4o&s
s5it&# to t#e !a$ers a(ove to imp!ementin7 a!! o4 t#e ot#er app!i&ations (e$ond &rren&$
t#at &an (e imp!emented e.7. di7ita! s#ares' di7ita! atonomos &orporations' peer to peer
!endin7' peer to peer &ro5d"sor&in7' peer to peer pa$ments' remittan&es. T#ese are t#e %i!!er
apps. Crren&$ 5as 6st t#e 4irst s#ot. I4 5e mana7e to pt a pin pri&% into t#e remittan&e
mar%et' somet#in7 t#at A!an Fa4a#i o4 FipFap is doin7 5it# a passion and a !eve! o4 prin&ip!e
t#at I a(so!te!$ admire. -t a pin pri&% into t#at &reate a sin7!e !itt!e 4!o5 and 5at&# t#e
dam (rea% as ID00(n o4 pent p &apita! por ot o4 t#e deve!oped 5or!d into 4e!!in7 t#e
deve!opin7 5or!d and p!i4tin7 povert$. T#ose %inds o4 t#in7s t#at (rin7 5it# t#em t#e
potentia! to #7e 7!o(a! so&ia! &#an7e' t#ose are t#e app!i&ations t#at are (ein7 deve!oped
no5. T#in7s !i%e Master&oin and Co!ored&oins and NAt' t#e proto&o! !a$ers a(ove t#at ena(!e
not 6st ne5 innovation (t entire ne5 t$pes o4 innovation and entire ne5 indstries to (e
de&entra!i@ed and disrpted 5it# Bit&oin. *eve moved past pa$ment and a!! o4 t#at is 7oin7
to #appen in /012. I didnt eApe&t it to #appen t#is 4ast. *eve (een ta!%in7 a(ot t#e !a$ers
a(ove and no5 t#e$re #appenin7 and 5e &an see t#is &omin7 do5n t#e pipe!ine. T#ose t#ree
4or&es to7et#er are simp!$ a&&e!eratin7 ever$t#in7. T#e ot#er t#in7 to rea!i@e is t#e 5ave o4
adoption trai!s t#ree to 4or mont#s (e#ind t#e media (rst' so C#ina 5asnt t#e s$mptom o4
I1'000' it 5as t#e &ase. *e #avent seen t#e s$mptom o4 I1'000 Bit&oin $et. *e &reated
t#is #7e media (((!e 4rom I1'000 Bit&oin 5ait nti! =e(rar$ (e&ase a!! o4 t#at is 7oin7
to trn into ser adoption. A!! o4 t#e peop!e 5#o #eard a(ot it in O&to(er and Novem(er
and )e&em(er are 7oin7 to 6mp onto t#e (and5a7on in ,anar$ and =e(rar$. T#ese 5aves
4eed on ea&# ot#er (e&ase t#at 5ave o4 adoption (rin7s its o5n pri&e in&rease 5#i&# &reates
t#e neAt media (((!e 5#i&#' t#ree or 4or mont#s do5n t#e !ine' &reates t#e neAt 5ave o4
adoption. T#e &$&!e is 7ettin7 s#orter ($ t#e time. *#at $o #ave is a!! o4 t#ese 4eed(a&%
!oops t#at are rs#in7 into Bit&oin (e&ase 5#$B As $o said' 1JD0s te&#no!o7$ and
sdden!$ 5e #ave t#e opportnit$ to move sevent$ $ears 4or5ard. SiAt$ $ears 4or5ard in
terms o4 4inan&ia! innovation and to do it 5it#ot permission at t#e ed7es o4 t#e net5or%.
*eve no5 rea&#ed t#e point 5#ere peop!e are (e7innin7 to do t#at and t#eir e44orts are not
even visi(!e $et. *#en t#e$ (e&ome visi(!eN a 5#o!e di44erent (a!! 7ame. 9//:DL;
ABL: Ta!%in7 a(ot trends a7ain 4or a se&ond. At t#is &on4eren&e' I t#in% I met more peop!e
5#o are 4rom otside se&rit$' &ons!tan&ies or &ompanies' 4!! servi&e' 5#at #ave $o t#an
rea!!$ at an$ ot#er previos &on4eren&e. A !ot o4 times its (een t#e !i(ertarian side and t#en
t#e investor side (t t#is time it rea!!$ 4ee!s !i%e t#e servi&e indstr$ is startin7 to &ome in and
!oo% serios!$ at t#is. 9/3:1D;
AA: Cea#. <emittan&es are possi(!$ 6st t#e 4irst part and t#en $o #ave t#e 5#o!e
otsor&in7' o44"s#orin7' servi&es' ta!ent t#at $o &an (rin7 in. I t#in% t#e (i7 event in /012
5i!! (e India and 5#en India 5a%es p' t#e$ #ave t#e para!!e! tra&%s o4 (ein7 t#e se&ond
!ar7est remittan&es destination in t#e 5or!d 5it# (i!!ions o4 do!!ars 7oin7 to India ever$ $ear
and' t#e !ar7est otsor&in7 o44"s#orin7 &enter 4or te&#no!o7$ in t#e 5or!d. T#e$ #avent
even 5o%en p to Bit&oin $et. 9/3:23;
SM: Cea#' I 5as seein7 a !ot o4 t#e !a$ers on top at t#is &on4eren&e. I sa5 a !ot o4 ta!%.
-eop!e are eA&ited a(ot &r$pto"eKities' Master&oin' -rotoS#ares and t#at %ind o4 t#in7.
T#ere 5as some s&epti&ism a(ot t#ose t5o (t it 5as (ein7 ta!%ed a(ot a !ot. 9/3:DJ;
ABL: Cr$pto&rren&ies $o dont #ave t#e a(i!it$ to stop it (t t#en a7ain' t#ere is a!so not
a &entra! &ompan$ (a&%in7 it (t somet#in7 !i%e -rotoS#ares' Invi&ts Innovations is (ased
ot o4 8ir7inia. T#ats not a !i&ensed... t#e$re a &orporation (t t#e$ #avent done an$ o4 t#e
de di!i7en&e reKirements to do an$ sort o4 eKit$ o44erin7 in t#e 5a$ t#at -rotoS#ares &o!d
(e interpreted nder &ertain interpretations. 9/2:/3;
AA: Im #earin7 4rom a!! o4 t#e &ompanies t#at are not doin7 t#in7s !i%e Master&oin and
Co!ored&oins (t are doin7 t#in7s on top o4 Master&oin and Co!ored&oins and are ta%in7 t#at
p!at4orm and 4indin7 in&redi(!e ne5 ideas o4 #o5 to (i!d !a$ers a(ove it t#at !evera7es t#at
proto&o! !a$er. T#ats 7oin7 to 4e! t#e deve!opment o4 t#e proto&o! !a$er even 4aster. Its
7oin7 to (e an eA&itin7 $ear. 9/2:22;
ABL: Cea#' 5it#ot a do(t /012' and /01D t#ats (een m$ 4ee!in7 is t#at t#ese are t#e
$ears. T#ese are t#e $ears 5#ere t#e important st44 is 7oin7 to #appen' t#ese are t#e $ears
5#ere 5e 4i7re ot i4 5e sta$ in t#e Onited States (e&ase' to a &ertain eAtent' 5e #ave ris%
doin7 a s#o5 !i%e t#is in t#e Onited States. *e #ave a &orporation in Ca!i4ornia t#at a!! o4 t#e
&osts rn t#ro7#' and pa$ taAes' and tr$ to &omp!$ (t' at a &ertain point' 8C is o(so!ete.
Co dont need to (e #ere an$more a4ter $ove (een in Bit&oin 4or a 5#i!e. 9/D:11;
AA: A(so!te!$. Co &an 7ro5 or7ani&a!!$. I 5or% as a te&#ni&a! advisor at a (oard !eve! 4or
a nm(er o4 Bit&oin &ompanies and one o4 t#e 4irst dis&ssions I need to #ave 5it# t#em is
$o do not need to raise &apita!. Co do not need to 7ive part o4 $or &ontro! in eKit$ a5a$
to a ventre &apita! 4irm t#at doesnt nderstand 5#at $ore doin7 and 6st #as mone$ to
t#ro5 at $o (e&ase $o &an (ot# 7ro5 or7ani&a!!$ ($ ridin7 t#e !o7arit#mi& dra7on o4
Bit&oin and' i4 needed' and $o need to 4!oat 4or a 4e5 mont#s' $o &an &ro5d"sor&e or 4ind
a &op!e o4 An7e! investors 5it#in t#e Bit&oin &ommnit$' eApress t#e vision to t#em and
t#e$ 5i!! &ome and #e!p $o 4!oat !on7 eno7# so t#at $or vira!' or7ani&a!!$ 7ro5in7 idea
&an ta%e o44 on its o5n. T#en' $o &an 7et (ot# t#e 4!! &ontro! and 4reedom and t#e s&&ess
t#at $o need. 8Cs are a!read$ o(so!ete in Bit&oin' apart 4rom t#e 4a&t t#at t#ere are some
peop!e 5it#in t#e Bit&oin &ommnit$ 5#o are' in e44e&t' 8Cs and An7e!s and 5#at t#e$ (rin7
to t#e ta(!e' 5#i&# is a rea!!$ important t#in7' is eApertise. EApertise in operations 5it#in
Bit&oin &ompanies and in mana7ement o4 Bit&oin &ompanies (e&ase mana7in7 operations
on a !o7arit#mi& s&a!e is s&ar$. T#e (i77est isse t#at Bit&oin start"ps #ave toda$ is t#at $o
&ant do !inear 7ro5t# and $o &ant do !o&a! dep!o$ment. Co are 7!o(a! 4rom da$ one and
i4 $o are s&&ess4!' $or 7ro5t# &rve is 7oin7 to (e 10' 1'000' 10'000' 100'000' 1'000'000'
10'000'000. Mont#' a4ter mont#' a4ter mont# and $ore 7oin7 to die' not 4rom starvation o4
4nds (t 4rom (ein7 so over5#e!med t#at $o &ant de!iver on t#e operationa! promises and
$or sers a(andon $o 4or someone e!se 5#o &an do operations (etter. Ton$ Ga!!ippi' 4rom
Bit-a$ 5as ta!%in7 a(ot s&a!in7 #is or7ani@ation 4rom 1D or /0 peop!e to 11D peop!e over a
period o4 6st a 4e5 mont#s. One o4 t#e (i77est pro(!ems 5ere 7oin7 to #ave' and possi(!$
one o4 t#e most eA&itin7 opportnities in Bit&oin' 5i!! (e sor&in7 resor&es' #man
resor&es. *e need to #ire #ndreds o4 t#osands o4 peop!e into Bit&oin &ompanies over t#e
neAt $ear and train t#em in Bit&oin and !evera7e t#eir s%i!!s. Its no5 m&# (roader t#an HI
6st need a deve!oper and a 5e( desi7ner. Its operations' its mar%etin7' its se&rit$' its
(siness deve!opment' its in4rastr&tre a!! o4 t#e traditiona! (asi&s o4 a serios &ompan$
and 5e need a!! o4 t#em. 9/.:32;
ABL: T#e deve!opment t#in7 #as (een a pro(!em t#o7#. Ta!ent is no5 startin7 to &ome
into t#is spa&e (t to t#is point' I %no5 a !ot o4 peop!e 5#o are doin7 start"ps 5#ove #ad a
!ot o4 tro(!e 4indin7 deve!opers 5#o are a&ta!!$ a(!e to de!iver on 5#at t#e$ need in a
4as#ion. Havin7 to tea&# peop!e a(ot Bit&oin #as (een... it seems !i%e a #rd!e t#at t#ese
&ompanies t#at are tr$in7 to #ire deve!opers #ave #ad to 7o t#ro7# to t#is point. T#e &ost o4
deve!opin7 in t#e Onited States... a7ain' 5ere (ased ot o4 Ca!i4ornia so t#e &ost o4 #irin7 a
deve!oper... 5#en 5e 5or% 5it# some(od$ do5n in Latin Ameri&a' t#e &ost is a Karter' i4 not
!ess and so' t#at means i4 $o #ave a (d7et' $o &an #ire 4or deve!opers 4or t#e pri&e o4
one. T#at doesnt mean t#at t#e deve!oper in Ca!i4ornia is (etter (I mean' t#e$ mi7#t (e
(etter) (t !timate!$' t#e &ost is more (ased on !o&a!it$. Bit&oin doesnt &are a(ot t#at so
a7ain' t#is otsor&in7 t#in7... I 6st 4ee! !i%e a7ain' t#e deve!opment teams t#at are rea!!$
7oin7 to ma%e a di44eren&e in t#is are 7oin7 to &ome 4rom otside' simp!$ (e&ase its !ess
eApensive to a&ta!!$ pa$ t#em to do t#is 4!! time. T#at #as (een a pro(!em. 9/L:/J;
AA: T#ats 5#$ I t#in% India is 7oin7 to (e &riti&a! in /012 (e&ase t#e reason t#e$re 7oin7
to &ome on(oard is (e&ase t#e more o4 t#e ta!ent resor&e 4rom t#ere' t#e more 5e in4e&t
t#em 5it# t#e idea o4 Bit&oin. Heres anot#er !itt!e point t#at peop!e are missin7 ri7#t no5.
I4 $o #ave a Bit&oin &ompan$ and $ore a(!e to 7enerate Bit&oin &as# 4!o5' as a res!t o4
t#at' $o &an o44er' e44e&tive!$' a sto&% option pa&%a7e 4or $or emp!o$ees' 5#i&# is a rea!!$
simp!e proposition. Ta%e a part o4 $or in&ome' $or 5ee%!$ pa$ &#e&% and 7et it paid in
Bit&oin and #o!d. Essentia!!$' 5#at $ore doin7 is $ore 7ivin7 $or emp!o$ees sto&%
options in t#e entire Bit&oin e&os$stem ($ pa$in7 t#em in Bit&oin and &reatin7 a sor&e o4
!o5 &ost do!!ar to Bit&oin eA&#an7e t#ro7# pa$ro!!. *e &an attra&t ta!ent and I t#in% even in
Nort# Ameri&a' 5eve no5 rea&#ed t#e point 5#ere $o &an #ave a serios &onversation
a(ot peop!e a(ot *#at do $o 5ant to do 5it# $or !i4eB )o $o 5ant to (e part o4 t#e
most eA&itin7 te&#no!o7i&a! deve!opment o4 t#e !ast t5o de&ades' somet#in7 t#at 5i!! #ave a
5or!d impa&tB Are $o 5i!!in7 to pt in !on7 #ors 4or !o5 pa$ and ta%e a sto&% option in t#e
4orm o4 Bit&oin and sto&% in eKit$ in t#e &ompan$B I t#in% $ore 7oin7 to 4ind a !ot o4
peop!e 5#o are 7oin7 to sa$ $es (e&ase a !ot o4 peop!e are (e7innin7 to see t#e di44eren&e
(et5een 5or%in7 4or one o4 t#e o!d &orporations t#at are 4e!!in7 5ar and e&onomi&
eAp!oitation and (ein7 a(!e to (e part o4 somet#in7 5#ere t#e$ &an a!i7n t#eir prin&ip!es 5it#
t#eir s%i!!s and a&ta!!$ s!eep at ni7#t and 4ee! 7ood a(ot t#emse!ves' instead o4 #atin7
t#emse!ves ever$ mornin7 (e&ase t#e$re 5or%in7 4or t#e Man. Co &om(ine t#at 5it#
sto&% options in Bit&oin t#at #ave t#e possi(i!it$ o4 appre&iatin7. I t#in% 5e 5ont #ave an$
tro(!e #irin7 ta!ent. *#at 5ere 7oin7 to see is Bit&oin s&%in7 deve!opment ta!ent 4rom a!!
o4 t#ese e&ommer&e' *e( /.0' 4ind anot#er 5a$ to do s#oppin7 and ps# more ads' t#e (orin7
6o(s t#at no(od$ 5i!! 5ant to 5or% an$more. 930:/2;
?????????????????????????????????????????????????
Heres to t#e &ra@$ ones. T#e mis4its' t#e re(e!s' t#e tro(!e"ma%ers' t#e rond pe7s in t#e
sKare #o!es' t#e ones 5#o see t#in7s di44erent!$. T#e$re not 4ond o4 r!es and t#e$ #ave no
respe&t 4or t#e stats Ko. Co &an Kote t#em' disa7ree 5it# t#em' 7!ori4$ or vi!i4$ t#em.
A(ot t#e on!$ t#in7 $o &ant do' is i7nore t#em (e&ase t#e$ &#an7e t#in7s. T#e$ ps# t#e
#man ra&e 4or5ard. *#i!e some ma$ see t#em as t#e &ra@$ ones' 5e see 7enis (e&ase t#e
peop!e' 5#o are &ra@$ eno7# to t#in% t#e$ &an &#an7e t#e 5or!d' are t#e ones 5#o do.
931:/D;
???????????????????????????????????????????????
Amir Taai inter!ie" "it# Peter Todd
AT: He!!o -eter Todd. Co 5rite a !ot a(ot Bit&oin and are invo!ved in t#e isses arond
Bit&oin. *#ats $or te&#ni&a! (a&%7rondB 931:3.;
PT: M$ (a&%7rond is as an ana!o7e e!e&troni&s desi7ner. A !ot o4 peop!e in t#e Bit&oin
&ommnit$ are 4rom varios pro7rammin7 (a&%7ronds 5#ereas m$ (a&%7rond and 5#at I
do as a da$ 6o( is m&# more a!!ied ana!$sis in mat#. O4 &orse' its %ind o4 7ot into t#em in
5#at Ive done in Bit&oin 5#i&# is ver$ m&# ana!$sin7 t#e s$stem as a 5#o!e' rat#er t#an
ne&essari!$ 5or%in7 on so4t5are deve!opment dire&t!$. 931:DJ;
AT: *#en $o dis&ss Bit&oin' or 5#en $o ana!$se Bit&oin' its &omin7 4rom an
en7ineerin7 standpoint. Co t#in% t#is is di44erent 4rom someone 5#o &omes 4rom a di44erent
(a&%7rond' ma$(e a deve!opment (a&%7rond' or a s&ienti4i& one' or a mat#emati&a! oneB
93/:12;
PT: Cea# I t#in% t#ats Kite a&&rate and I t#in% 5#ats interestin7 a(ot Bit&oin is #o5
(e&ase its a tota!!$ ne5 s$stem' t#ere is sti!! a !ot o4 ana!$sis t#at needs to (e done and its
a!so ana!$sis t#at is ver$ amena(!e to mat# and to eKations' and so on. Its o(vios!$ !o7i&
and reason and (e&ase its ne5 eno7#' t#ats sti!! a!! open and needs to (e done. 93/:3E;
AT: Ho5 5o!d $o des&ri(e Bit&oinB 93/:3J;
PT: M$ 4avorite ana!o7$ 4or it is I !i%e to ta!% in terms o4 a vi!!a7e. Lets sppose $o #ad a
vi!!a7e and ever$one #as a note(oo% and on t#is note(oo% $o re&ord transa&tions. =or
instan&e' A!i&e mi7#t 5ant to pa$ Bo( in retrn 4or some &#i&%ens and A!i&e 5i!! 7o and te!!
Bo( Co &an note do5n t#at 5i!! ded&t one vi!!a7e &oin 4rom m$ a&&ont and $o &an add
one vi!!a7e &oin to $or a&&ont and t#en Bo( and A!i&e (ot# 7o te!! ever$one e!se in t#e
vi!!a7e t#at t#is #as #appened. 8er$ Ki&%!$' t#e$ &ome to &onsenss t#at $es' A!i&e #as paid
Bo(. O4 &orse' t#is s$stem doesnt 5or% t#ese peop!e are dis#onest and 5#at Bit&oin is' is
&r$pto7rap#$ t#at !ets t#e s$stem 5or% ($ ma%in7 t#ese entries #onest. Ho5 it a&ta!!$ 5or%
nder t#e #ood' t#ats a 5#o!e ot#er stor$ (t 4ndamenta!!$' its rea!!$ ver$ simp!e its 6st
an a&&ontin7 !ed7er. 933:/.;
AT: Ho5 a(ot #o5 it 5or%s nder t#e #oodB Ho5 5o!d $o des&ri(e it as an en7ineerB
933:3/;
PT: I 5o!d a&ta!!$ des&ri(e it as a po!iti&a! s&ientist' 5#i&# is to sa$ t#at its demo&rati&.
-eop!e #ate me sin7 t#is term 5#o are #eavi!$ invo!ved in t#e deve!opment (e&ase
demo&rati& &arries a !ot o4 (a77a7e. It ma%es peop!e t#in% $o &an 7o vote 4or &#an7es to
Bit&oin 4ndamenta!!$' 5#i&# is sort o4 tre (t its sort o4 isnt. *#ats rea!!$ important
t#o7# is t#at' 7oin7 (a&% to t#e vi!!a7e eAamp!e' t#e 5a$ Bit&oin &omes to &onsenss to
4i7re ot 5#o rea!!$ made 5#at transa&tion' is ($ #avin7 nodes to do somet#in7 spe&ia!
&a!!ed minin7' 7o s#o5 t#at t#e$ a7ree t#at t#e transa&tion #as #appened' as a vote. Its a
ver$ stran7e vote (e&ase its 5#ats &a!!ed a random (a!!ot. ApproAimate!$ on&e ever$ ten
mintes' a miner' &omp!ete!$ at random is pi&%ed and t#en t#e$ 7et to de&ide 5#at t#e neAt
(!o&% o4 transa&tions 5i!! (e. Over time' t#is is approAimate!$ !i%e ever$one votin7 in
proportion to t#e #as#in7 po5er t#e$ represent. Has#in7 po5er is a spe&ia! t#in7 5#ere
(e&ase t#ere is no %no5n 5a$ to vote over t#e internet 5it#ot invo!vin7 some &entra!
at#orit$ to determine 5#o is a #man' 5#o is someone 5#o is a!ias' instead 5e &omp!ete!$
side"step t#at pro(!em ($ #avin7 votin7 invo!ved so!vin7 t#is se!ess mat# pro(!em &a!!ed t#e
-roo4 o4 *or% pro(!em. T#ats a te&#ni&a! t#in7 (t !on7 stor$ s#ort' $o do some se!ess
5or% and $o 7et a &ertain amont o4 votin7 po5ers' so to spea%' 5#i&# 7ets re4erred to its
#as#in7 po5er and t#en t#ats #o5 $o de&ide 5#ere t#e Bit&oin (!o&%&#ain 7oes. 932:DJ;
AT: Some deve!opers dont !i%e sin7 t#e term votin7. Ma$(e t#ere is a!so some 4ee!in7 t#at
its !i%e peop!e 5#o arent parti&ipatin7 in t#e &#an7es. 93D:0L;
PT: I t#in% 5#at it rea!!$ &omes do5n to is' an ana!o7$ 5o!d (e Bit&oin as a s$stem o4 an
in&redi(!$ stron7' restri&tive prostittion. T#e votin7 in t#e s$stem &an do not#in7 more t#an
de&ide 5#at transa&tions are a&&epted and 5#at ones arent. It &annot ma%e a transa&tion t#at
is inva!id i4 it doesnt 4o!!o5 t#e r!es o4 Bit&oin and 7et a&&epted into t#e &#ain. It &annot
ma%e t#e r!es o4 Bit&oin &#an7e. A!! it &an do is de&ide t#at t#e transa&tion ma$ or ma$ not
(e in&!ded in t#e (!o&%&#ain at a parti&!ar time. T#ats it. Co rea!!$ &ant do m&# 5it#
t#at %ind o4 votin7. T#ats ne4arios. At !east assmin7 ever$one &#e&%s t#e r!es. 93D:2.;
AT: Bit&oin is a &onsenss s$stem. Is t#at a5esome or notB *#ats t#e pro(!em or is t#ere...
ever$ te&#no!o7i&a! propert$ #as its psides and its do5nsides. *#at are t#e psides o4 a
&onsenss"(ased s$stem and 5#at are t#e do5nsidesB 93E:02;
PT: Certain!$ t#e pside is t#at' 5#en its 5or%in7 proper!$' its ver$ 4ree 4rom otside
inter4eren&e. T#e &onsenss atomati&a!!$ is a &onsenss o4 a ma6orit$' so an$one 5#o
parti&ipates in Bit&oin 4!!$' is part o4 t#at &onsenss' part o4 t#at &#oi&e and 4or some otside
4or&e' s&# as a 7overnment or !ar7e &orporation' to 7o manip!ate t#at &onsenss is on!$
possi(!e i4 t#e$ &#oose to parti&ipate in it. No5' o4 &orse' t#is does !eave Bit&oin open to
somet#in7 &a!!ed a D1M atta&% 5#ere some 7rop' or person' or 5#atever' &#ooses to ($
eno7# #as#in7 po5er to otvote ever$one e!se on Bit&oin and (e&ase t#e$ &an do t#at' t#en
t#e$ &ontro! t#e destin$ o4 t#e Bit&oin (!o&%&#ain. T#e$ &ant 7o and pt inva!id transa&tions
in t#e &#ain i4 ever$one e!se is &#e&%in7 it (t 5#at t#e$ &an do' is t#e$ &an 6st stop
transa&tions 4rom ever$ appearin7' or t#e$ potentia!!$ re5rite #istor$. Transa&tions t#at #ave
(een &on4irmed' as part o4 Bit&oin' 7et ndone (it ($ (it. 93.:0E;
AT: Ho5 5i!! Bit&oin evo!ve and 5#at is t#e po5er t#at t#e miners #ave and #o5 5i!! t#at
(a!an&e o4 po5er &#an7eB 93.:13;
PT: I %eep on sa$in7 t#at i4 ever$one ses Bit&oin &orre&t!$' miners dont #ave an$ po5er
(t t#ere is a (i7 &at&# 5it# t#at' 5#i&# is a !ot o4 peop!e are sin7 Bit&oin 5it#ot a&ta!!$
veri4$in7 Bit&oin' t#e #istor$ o4 t#e (!o&%&#ain. T#e te&#ni&a! term 4or t#is is &a!!ed S-8
nodes' 5#i&# stands 4or Simp!i4ied -a$ment 8eri4i&ation and an S-8 node s%ips a!! t#is
!a(orios &#e&%in7 t#at ever$one is (ein7 #onest and 4o!!o5in7 t#e r!es' rat#er it assmes
t#at ever$one is 4o!!o5in7 t#e r!es and assmes t#at t#e ma6orit$ o4 #as#in7 po5er is &orre&t
and 6st !eaves it at t#at. T#e pro(!em o4 t#is t#en' is it does &reate a sitation 5#ere minin7
is votin7. I4 ever$one on!$ sed S-8 nodes' t#en a miner &o!d ver$ 5e!! de&ide t#at $es'
D1M ma6orit$ no5 de&ides t#at Bit&oin &an (e in4!ated and 5e &an ma%e #o5ever man$
(it&oins 5e deem ne&essar$. I4 t#e$ &#oose to do t#at' t#e$ &an ma%e (it&oins ot o4 t#in air
and n!ess $o &#e&% t#e #istor$' $o #ave no 5a$ o4 %no5in7 i4 t#at #as #appened. O4
&orse' in pra&ti&e someone does t#is and $o!! see it on t#e ne5s' $o!! see it in so on and
so 4ort#' (t 4rom a so4t5are !eve!' $or so4t5are isnt &#e&%in7 t#at. T#ats a rea! pro(!em.
*e do not $et %no5 #o5 t#e po!iti&a! s&ien&e o4 de&entra!i@ed &r$pto&rren&ies a&ta!!$
5or%s. I4 miners &#oose' as a ma6orit$' to &reate (it&oins ot o4 t#in air' does t#at mean
peop!e s#n t#ose miners' does t#at mean peop!e start rnnin7 4!! nodesB I dont %no5. I
dont %no5 t#at 5ere 7oin7 to %no5 nti! it #appens. 93L:D0;
AT: T#e (!o&%&#ain is 7ettin7 (i77er and (i77er' so #o5 &an 5e o5n t#at in4rastr&treB
93L:DD;
PT: T#is is t#e (i7 &at&# 5it# Bit&oin. I4 $o #ave a &onsenss s$stem to #ave &onsenss
over t#e #istor$ o4 t#e (!o&%&#ain' ever$ person 5#o #as part o4 t#at &onsenss mst #ave t#e
entire (!o&%&#ain 5#i&# 6st doesnt s&a!e. I4 $o #ave peer s&ien&e termino!o7$' i4 $o #ave
N peop!e 5#o are parti&ipatin7 in t#is Bit&oin (!o&%&#ain and ea&# o4 t#ose peop!e ma%es a
transa&tion' t#en ever$ person needs to pro&ess ever$one e!ses transa&tion' N sKared its
eAponentia! 7ro5t# or t#at s#o!d (e more mat#"(a!an&ed Kadrati& 7ro5t# and t#at 6st
doesnt 5or% as $o 7et eno7# peop!e. =ortnate!$' &ompters are eAtreme!$ 4ast and
e44i&ient and 5eve (een a(!e to 7et a5a$ 5it# t#is s$stem 4or a !ot !on7er t#an' in some
ri7#ts' 5e rea!!$ s#o!dnt #ave. In some senses' 5eve made t#is pi7 4!$ ($ atta&#in7 ro&%et
motors to it. T#at on!$ 7oes so 4ar and an$ !on7er' and 5e #ave to do somet#in7 a(ot it.
Ho5 t#at 5i!! a&ta!!$ ta%e p!a&e' I dont %no5. *#at I do %no5 is t#at i4 5e dont so!ve t#is
pro(!em' and 5ere a!read$ seein7 t#is 5e see peop!e rn Bit&oin &!ients' or se Bit&oin in
5a$s t#at doesnt veri4$ t#is #istor$ and is t#ere4ore otsor&in7 $or trst to someone e!se to
do t#e 6o( 4or $o' 5#i&# sonds ver$ m&# !i%e &onventiona! (an%in7 an$5a$. 920:10;
AT: Co said somet#in7 a(ot 7ood Bit&oin' !i%e a po!iti&a! s&ien&e. In some 5a$s' its a!so
a(ot t#e e&onomi&s o4 #o5 t#e miners and a!! t#e di44erent 7rops in Bit&oin intera&t " t#e
man4a&trers' t#e deve!opers. *#at are some o4 t#e interestin7 mode!s or &on&epts t#at $o
see emer7in7 ot o4 t#at' t#at 5i!! #appen in t#e 4treB Can $o 7ive s a 7!impse a(ot
#o5 t#is s$stem 5i!! 4n&tion on a ma&ro s&a!eB 920:3.;
PT: *#at I 5ant to see #appen is 4or t#ere to not (e distin&tions (et5een a!! t#ose di44erent
7rops. It!! on!$ #ave t#ese distin&tions' t#ats 5#en Bit&oin is 9t#ro5B inadi(!e; (e&ase
5#en $o #ave t#ose distin&tions' $o are pttin7 (espe&ia!!$ 5it# re7ard to minin7) &ontro!
into a sma!!er 7rop t#an ever$one. T#e idea! Bit&oin s$stem 5o!d (e ever$one parti&ipates
eKa!!$' ever$one does a (it o4 minin7' ever$one does a (it o4 va!idation' ever$one is p!!in7
t#eir o5n 5ei7#t and its ver$ n4ortnate t#at de to t#e te&#ni&a! isses' 5ere not seein7
t#at. Instead' 5ere seein7 peop!e otsor&e a!! t#eir trst to &entra!i@ed servi&es !i%e
B!o&%&#ain.in4o' &entra!i@ed dependent te&#no!o7ies !i%e S-8 nodes' !i%e Android 5a!!ets
and a7ain' E!e&trm 4o!!o5s t#e same sort o4 pro(!em' 5#ereas sin7 Bit&oin 5it# 4!! nodes'
as is done 5it# Bit&oin re4eren&e imp!ementation or 5it# Android 5a!!et' t#ats not so
pop!ar and peop!e are' in a sense' ta%in7 t#e eas$ 5a$ ot. No5' i4 $o 7o and &#an7e t#e
5a$ t#e te&#no!o7$ 5or%s to ma%e it easier to' 4or instan&e' veri4$ parts o4 t#e (!o&%&#ain'
t#en ever$one &an 7o and pit&# in' ever$one &an (e part o4 t#is (t t#ere #as to (e 5i!! t#at
$es' t#is is important and $es' 5e need to &#an7e t#e te&#no!o7$ to do t#at. Crrent!$' 5eve
7ot peop!e 5#o 7et a !ot o4 attention and a !ot o4 respe&t ($ some parts o4 t#e Bit&oin
&ommnit$ 5#o dont see t#ese isses as important at a!!. T#e$ 6st dismiss it as somet#in7
t#at... 5#atever' Bit&oins 5or%in7 4ine. Bit&oin needs to 4iA s&a!a(i!it$ (t !ets 6st #ave a
Ki&% pat&# on t#is and 7o on 4rom t#ere' 5#ereas I t#in% t#e more t#o7#t4! peop!e' !i%e me
rea!i@e t#at its not so eas$ to 4iA pro(!ems in Bit&oin on&e $o &ase t#em (e&ase $ove
7ot t#is #7e movin7 s$stem. Cove 7ot a&tors 5#o ma$ #ave in&entives to !eave t#e
pro(!ems in p!a&e and' 4rt#ermore' $ove &ompetitors to Bit&oin' !i%e Lite&oin and ot#er a!t
&rren&ies t#at ma$ ver$ 5e!! 6st ta%e Bit&oins p!a&e instead. 92/:31;
AT: *#at do $o t#in% are t#e te&#ni&a! pro(!ems t#at are drivin7 t#is %ind o4 inevita(!e
spe&ia!i@ationB 92/:3L;
PT: I dont t#in% its inevita(!e. I4 5e std$ t#is isse and 5e t#in% &are4!!$ a(ot it' 5e
&an 7o 4ind 5a$s to ma%e it not inevita(!e. In some sma!! 5a$s' Ive done t#in7s m$se!4 !i%e
t#at' !i%e I proposed t#is te&#no!o7$ &a!!ed TQO &ommitments t#at ena(!es nodes to not store
t#e 4!! #istor$ o4 t#e (!o&%&#ain 5#i!e sti!!' 5it# ot#er te&#no!o7ies' &an sti!! veri4$ parts o4
it' so t#at is a &o!!e&tive o4 t#e entire #istor$ veri4ied T#eres a!so t#in7s !i%e 4rad proo4s
5#i&# ena(!es nodes t#at on&e t#e$ do 4ind t#e r!es are not (ein7 4o!!o5ed' to sond an
a!arm and te!! ever$one e!se so t#at t#e$ &an immediate!$ ta%e a&tion. T#ere are a!so
&on&epts 4or #o5 to 7o s#ard t#e (!o&%&#ain' to 7o red&e individa! 9!imitB Inadi(!e;. T#e
s&ope t#at an$ one person #as to eva!ate to &ome to &onsenss. =ina!!$' on top o4 a!! t#at'
t#ere is sort o4 more immediate' more pra&ti&a! 5a$s to a&#ieve t#is st44' !i%e o44"&#ain
transa&tions 5#i&# 6st ta%es t#e !oad o44 t#e s$stem and ($s s time. None o4 t#is st44 is
a!! per4e&t (t its important to 7o and resear&# t#is st44 and a&&ept t#at t#e road a#ead is
(mp$ and 5e &annot a!!o5 Bit&oins de&entra!i@ation to (e sa&ri4i&ed. *e ma$ 4ind t#at' ($
doin7 t#at' 5e 5ind p 5it# Bit&oin t#at doesnt 7ro5 Kite as 4ast as some investors 5o!d
!i%e (t t#at is a m&# (etter trade o44 t#an destro$in7 5#at Bit&oin o44ers to t#e 5or!d.
923:DJ;
AT: *#ats t#e s#ardin7B T#ats interestin7. 922:0/;
PT: T#e (asi& idea pon t#at is t#e re&o7nition t#at $o dont ne&essari!$ #ave to #ave one
&onsenss 9domainB; and t#ats %ind o4 a ver$ te&#ni&a! term t#at rea!!$ means $o dont
a&ta!!$ #ave to #ave ever$one #ave a &omp!ete vie5 o4 t#e entire state o4 t#e 5#o!e s$stem
at on&e. I4 $ore &!ever' $o &an restri&t t#e vie5 t#at an$ one person #as to #ave. A ver$
simp!e eAamp!e I !i%e to se' 5#i&# isnt ne&essari!$ a 7reat idea' (t its an idea t#at &an
5or%' sppose $o #ad a rin7 o4 (!o&%&#ains and $o ma%e t#e s$stem s&# t#at areas o4
ad6a&ent (!o&%&#ains on t#is rin7 #ave to (e veri4ied in para!!e! to a!!o5 minin7 to pro7ress
(e&ase ea&# pair is veri4ied' $o &an move &oins in a series o4 transa&tions arond t#is rin7
4rom one (!o&%&#ain to anot#er. 922:D0;
AT: T#at ses a spe&ia! transa&tion 9inadi(!e; 922:DE;
PT: Cea#' a spe&ia! t$pe o4 transa&tion. Cea#' 5#i&# 5e a!read$ a&ta!!$ #ave t#e a(i!it$ to.
922:DL;
AT: <i7#t. Its on t#e 5i%i' isnt itB 92D:00;
PT: Cea#. It 6st doesnt 5or% as 5e!! as 5e mi7#t !i%e (t i4 $o (i!t a s$stem arond t#is
&on&ept' $o 5o!d ma%e it 5or%. *#at t#at means is t#at even t#o7# an$ individa! miner
on!$ needs to %eep p 5it# a sma!! se&tion o4 t#is 5eird rin7 s$stem' $o &an sti!! spend &oins
4rom an$5#ere' $o &an send t#em to an$one and t#e 5#o!e s$stem' as a 5#o!e' a&ta!!$
5or%s. O4 &orse' t#ere is a ton o4 pra&ti&a! isses t#at need to (e so!ved and need to (e
stdied (t i4 $o a&&ept t#at de&entra!i@ation is important' $o 7o so!ve t#ese isses. Co 7o
std$ t#em rat#er t#an 6st ta%in7 t#e eas$ 5a$ ot. 92D:32;
AT: T#e (!o&%&#ain is 7ettin7 (i77er and (i77er (t t#ere is a !imitation in t#e &ode 5#i&# is
!imitin7 t#e si@e o4 t#e (!o&%s... 92D:2/;
PT: Corre&t. 92D:23;
AT: ...and ma%in7 t#em a s&ar&e resor&e so t#ere are !ess transa&tions 7ettin7 into a (!o&%
t#an i4 t#is !imitation didnt eAist. 92D:D1;
PT: A4ter a!!' t#e (!o&%&#ain is (i7' 5it# &ertain te&#no!o7ies !i%e TQO &ommitments' and
its &!ose &osin OTQO &ommitments' $o dont a&ta!!$ need to do5n!oad t#e entire
(!o&%&#ain to 7et $or node started. Co &an do5n!oad a s(set o4 t#at data or 5it# TQO
&ommitments no data at a!!' (t $o sti!! #ave to %eep p 5it# t#e (and5idt# o4 ne5 (!o&%s
as t#e$ &ome in. T#ats a rea! pro(!em (e&ase i4 $o a!!o5 t#e (!o&% si@e to 7ro5' t#e si@e
o4 an individa! (!o&%' t#en at some point' it needs an amont o4 (and5idt# t#at not ever$one
&an %eep p' espe&ia!!$ not peop!e on !o5 (and5idt# &onne&tions' !i%e #ome residentia!
&onne&tions and espe&ia!!$ anon$mos &onne&tions. On top o4 t#at' and somet#in7 t#ats
(een 4ond more re&ent!$ is t#at' $o &reate ver$ perverse in&entives in t#at (and Im 7oin7 to
7et a (it te&#ni&a! #ere) t#e &ost to in&!de a transa&tion in t#e (!o&% is re!ated to #o5 4ast $o
&an te!! ot#er miners a(ot t#at transa&tion' and a(ot t#at (!o&% as a 5#o!e and i4 $o are a
miner 5#o #as a !ot o4 mone$ and &an invest a !ot o4 e44ort into 4ast internet &onne&tions'
$or &ost 7oes do5n' 5#i&# means $o ma%e more mone$ and t#ere4ore' $o &an #ave more
eKipment t#ere4ore' $o &an ma%e more mone$. A!so' 6st ($ (ein7 (i77er' $ore !ess
!i%e!$ to #ave someone 4ind a (!o&% at t#e eAa&t same time and not (e t#e one 5#o 4ond t#e
(!o&% t#at 5ins. T#ats &a!!ed $or orp#an ris% and a7ain' t#e (i77er $o are' t#e !o5er $or
orp#an ris% is and its 6st t#is set o4 inter!o&%in7 in&entives t#at drives &entra!i@ation. *it# a
(!o&% si@e !imit t#o7#' at !east in&entives #ave a !imit in t#at' sre' t#ere is sti!! an in&entive
to (e a (i77er miner t#an a sma!!er one (t t#e amont o4 in&entive' &ompared to t#e tota!
in&entive to mine at a!!' is m&# sma!!er. *e' in t#e t#eoreti&a! &ommnit$ i4 $o 5i!!' 5e
&an 7o see #o5 potentia!!$ t#at in&entive 5i!! not &ase disaster' 5#ereas i4 $o #ave no !imit
at a!!' t#at in&entive is m&#' m&# stron7er and its #ard to ima7ine #o5 minin7 5o!dnt
(e&ome ver$ &entra!i@ed in t#at &ir&mstan&e. 92.:DD;
AT: T#e (!o&% si@e !imit is a rea!!$ important isse 4or $o and $ore sa$in7 t#at t#e
&onseKen&e i4 5e 6st 7ot rid o4 it' 5#i!e transa&tion 4ees mi7#t drop' mi7#t (e&ome !o5' it
5i!! a!!o5 miners to 4orm an even (i77er &arte!. 92L:1/;
PT: Ces. It 5o!d not so m&# a!!o5 (t en&ora7e t#em to. 92L:1D;
AT: En&ora7e t#em to. 92L:1E;
PT: Ces. 92L:1E;
AT: <i7#t. Sre!$' t#e mar%et 5i!! se!4 re7!ateB 92L:/1;
PT: *#$ 5o!d itB 92L://;
AT: Some peop!e sa$ t#at i4 a miner prod&es a (!o&% t#at is too (i7' t#en anot#er miner 5i!!
6st re6e&t it. *#at do $o t#in%B 92L:/L;
PT: <i7#t' (t t#is is t#e isse. I4 $o prod&e a (!o&% t#at is too (i7' t#e a&ta! in&entives
end p (ein7 t#at $o earn more mone$' in man$ &ases' t#an t#e miners 5#o didnt do t#is
and t#e reason is' i4 $or (!o&% ends p (ein7 a&&epted' 5#i!e ot#er miners 5ere not minin7
to eAtend $or (!o&% rat#er t#an t#e (!o&% (e4ore' t#e$ 5ere 5astin7 t#eir time. T#at means
some per&enta7e o4 t#e time' 5#ere t#e$ &o!d #ave (een earnin7 mone$' 5as spent 5asted'
5#ereas 4or $o' 100M o4 t#e time 5asnt 5asted. I4 $or 7oa! is to earn more mone$ t#an
ot#er miners' 5#i&# is 7enera!!$ 5#at a (siness 5ants (e&ase' a4ter a!!' i4 earnin7 more
mone$ t#e miners (or I s#o!d sa$ t#e #as#ers) 5#o are minin7 at t#at poo!' 5i!! 7o move
4rom t#e sma!!er poo! to t#e (i77er one. Co 7et t#is 7!$ set o4 in&entives. Its not eno7#
to 7o ma%e t#e assmption t#at t#e mar%et 5i!! se!4 re7!ate. In t#is &ase' it doesnt. 92J:/0;
AT: Co t#in% 5ere 7oin7 to #ave to in&rease t#e !imit in t#e 4treB 92J:/3;
PT: I dont %no5. I t#in% in t#e near 4tre' 5e de4inite!$ s#o!dnt in&rease it (e&ase 5e
a!read$ %no5 t#at in&reasin7 it 5i!! !ead to disaster. No5' i4 5e on!$ in&rease it a !itt!e (it'
ma$(e it 5ont !ead to disaster (t 5e %no5' at some point' i4 5e in&rease it eno7# it 5i!!
and (e&ase t#e po!iti&a! s&ien&e o4 de&entra!i@ed &r$pto&rren&ies isnt 5e!! nderstood' 5e
dont %no5 5#ats 7oin7 to #appen 5#en t#at !imit is (rea&#ed. It ma$ (e t#at $o &ant
re&over (e&ase t#ere are simp!$ too m&# in&entives 4rom a !ar7e part o4 t#e &ommnit$ to
&ontine in a (ad sitation. A7ain' ta!%in7 a(ot poo!s' i4 a poo! %no5s it 5i!! ma%e !ess
mone$ as t#e !imit 7ets red&ed' t#e$re 7oin7 to ps# ver$ #ard to %eep t#e sitation as it is'
even i4 it !eads to Bit&oin 5#ere e44e&tive!$' on!$ a #and4! o4 peop!e &ontro! 5it# no ot#er
5a$ arond it. 9D0:0J;
AT: Ho5 destr&tive are t#e e44e&ts o4 in&reasin7 t#e (!o&% si@e !imit and 5i!! it (e
o(serva(!eB =or instan&e' i4 5e do(!ed t#e (!o&% si@e !imit' 5o!d it (e ten times !ess 5orse
t#an i4 5e t5ent$ times t#e (!o&% si@e !imit' or is it somet#in7 t#at $o in&rease and $o
mi7#t not see t#e e44e&ts (t t#en' $o (rea&# some !imit and t#e s$stem (rea%s do5n. In
$or mode!' #o5 5o!d in&reasin7 t#e (!o&% si@e !imit a44e&t t#e s$stemB 9D0:3.;
PT: Keep in mind' 5ere not stri&t!$ ta!%in7 a(ot te&#ni&a! st44 #ere' 5ere ta!%in7 a(ot
so&ia! st44. =or instan&e' in an environment 5#ere 7overnments do not attempt to re7!ate
Bit&oin' $o &an 7et a5a$ 5it# m&#' m&# (i77er !imits t#an in one t#at it &an. T#e reason
is t#at i4 7overnments do not attempt to re7!ate Bit&oin' its m&# more a&&epta(!e 4or
miners to (e p(!i&!$ %no5n' its m&# more a&&epta(!e 4or t#em to (e 4or&ed to #ave t#e
t$pe o4 #i7# (and5idt# internet &onne&tions t#at are eas$ to 4ind and s#t do5n' 5#ereas i4
7overnment de&ides to start re7!atin7 Bit&oin more #eavi!$... and remem(er 5ere ta!%in7
re7!atin7 #ere' I rea!!$ dont t#in% t#e$ 5o!d ever tr$ to (an it' rat#er t#e$ 5o!d do t#in7s
!i%e sa$ miners mst on!$ mine approved sets o4 addresses' or even more !i%e!$' miners
mst not mine transa&tions re!ated to &ertain (!a&%!ists. T#at %ind o4 re7!ation &an &reep p
and 5#i!e its #appenin7' its ver$ eas$ 4or !ar7er minin7 poo!s 5#i&# #ave an in&entive to
eAist (e&ase t#e$ ma%e more mone$' to t#en start 4o!!o5in7 t#ese re7!ations. Co mi7#t'
4or instan&e' 4ind t#at $or transa&tions 5#i&# 5ere re!ated to some ne4arios deed t#at some
7overnment #as de&ided needs to (e stopped' $o sdden!$ &ant spend t#e mone$ in $or
5a!!et 5it#ot 5aitin7' ma$(e a &op!e o4 #ors to !et 1M o4 miners' 5#o are not 4o!!o5in7
t#ose r!es' 4ina!!$ 7et rond to 4indin7 t#e (!o&%. Ma$(e 4ive $ears do5n t#e road' $o!!
never (e a(!e to ma%e a transa&tion. *e do not Kite %no5 #o5 t#is is 7oin7 to p!a$ ot (t
5e &an &ertain!$ 7o see t#at. Havin7 minin7 po5er more &entra!i@ed ma%es it m&# easier to
&ontro! 5#at t#e minin7 po5er does. 9D/:0J;
AT: Co see miners as t#e (i77est t#reat to Bit&oin. 9D/:13;
PT: In some 5a$s' $es (t not miners minin7 poo!s. 9D/:1.;
AT: Minin7 poo!s. 9D/:1L;
PT: T#e si@e o4 minin7 poo!s is a ver$' ver$ (i7 t#reat. 9D/://;
AT: Cea#. *eve a!! seen t#e (i7 ASICs' !i%e t#e (i7 4a&i!ities. 9D/:/.;
PT: ASICs are anot#er matter. Cove 7ot to remem(er t#eres a di44eren&e (et5een minin7
poo!s and minin7 #ard5are. 9D/:3/;
AT: <i7#t. 9D/:33;
PT: Minin7 poo!s seem to (e a 4ndamenta!' desira(!e 4eatre (e&ase peop!e 5ant it to (e
eas$ to 7et t#eir #as#in7 eKipment and start #as#in7 and earnin7 mone$' and its m&# easier
to do t#is ($ se!!in7 $or #as#in7 po5er to a minin7 poo!. 9D/:2.;
AT: Core ta!%in7 a(ot !o5erin7 $or eApe&tation (t a!so !o5erin7 $or varian&e.
9D/:D/;
PT: Ces' !o5erin7 $or varian&e' not eApe&tations. 9D/:D2;
AT: *e!!' $ore sa&ri4i&in7 some eApe&tation 4or t#at !o5erin7 o4 varian&e. 9D3:00;
PT: Co #ave to de4ine 5#at $o mean ($ eApe&tation. 9D3:01;
AT: Cor avera7e pa$ot. I4 so!o"mined' $od 7et more. 9D3:0D;
PT: <i7#t' (t t#ats not ne&essari!$ tre and' in 4a&t' it appears t#at minin7 at a minin7 poo!'
$o do earn more mone$ per (!o&% assmin7 mins minin7 poo!s 4ees' t#e (i77er minin7
poo! earns more mone$ per nit o4 #as#in7 po5er t#an a sma!! so!o one. 9D3:/3;
AT: *#$ is t#atB 9D3:/2;
PT: T#ats (e&ase t#e$ are more e44i&ient. T#e$ are more e44i&ient (e&ase t#e$ 4ind...
(e&ase more o4 t#e (!o&%s t#at t#e$ 4ind are not orp#aned. 9D3:30;
AT: A###' I see. 9D3:31;
PT: T#e$ are a!so more e44i&ient (e&ase t#e$ #ave one set o4 eApenses. Its amorti@ed over
a!!a!! &!ients' 5#ereas $o #ad to 7o pa$ 4or a 4!! Bit&oin node and' !i%e it or not' its not 4ree.
Co #ave to 7o pa$ 4or $or time settin7 p' $o #ave to pa$ 4or $or &ompter and t#ose
eApenses are on!$ 7ettin7 #i7#er in t#e 4tre. 9D3:2J;
?????????????????????????????????????????
ADVERT:
*#en $o s#op 5it# Bit&oin on G$4t' $o &an 7et 7i4t &ards 4rom over /00 retai!ers. T#in% o4
t#e possi(i!ities. Not on!$ is $or #o!ida$ s#oppin7 ta%en &are o4 in a snap' 4rom $or
Android devi&e' or on t#e 5e( (t no5' $o #ave a 5a$ to pr&#ase ever$da$ items 4rom
stores !i%e Tar7et' C8S' Gap and GameStop sin7 $or (it&oins. T#ats not even t#e (est
part. *#en $o s#op 5it# Bit&oin on G$4t' $o 7et 3M (a&%. <ead$ to s#opB 8isit
555.G$4t.&om toda$. 9D2:/E;
A$$%&$'EME$T:
Happ$ #o!ida$s 4rom Lets Ta!% Bit&oin. I4 $o !i%e t#e 5or% 5ere doin7' 5e appre&iate
Bit&oin tips o4 a!! si@es at 555.!etsta!%(it&oin.&om. ,st as important!$' s#are t#e s#o5 5it#
$or peers and revie5 t#e s#o5 on iTnes. )ont (e %ind' (e #onest. LTB rea&#es near!$
10'000 !isteners (t #as !ess t#an D0 revie5s an$5#ere I &an 4ind. Id ver$ m&# appre&iate
$or #e!p in remed$in7 t#is sitation. T#an%s 4or !istenin7. 9D2:D3;
?????????????????????????????????????????
AT: Bit&oin as a s$stem its !i%e 5eve 7ot t#e mer&#ants' t#e 5a!!ets and t#en ma$(e #ave
some !i(rar$ &ode and t#en $o 7et do5n and do5n and $o 7et to t#e a&ta! Bit&oin mode'
5#i&# is at t#e (ottom o4 a!! o4 t#is in4rastr&tre. In t#e Bit&oin mode' $o #ave t#e net5or%
st44' and so on (t t#e &ore part o4 t#is is t#e &onsenss part. 9DD:/0;
PT: Ces and %eep in mind 5#at I std$ a(ot Bit&oin. =or t#e most part' I on!$ &are a(ot
t#ese !o5er !eve!s. I dont rea!!$ &are t#at m&# a(ot 5#at mer&#ants are doin7' I dont
rea!!$ &are t#at m&# a(ot 5#at t#eir &stomers are doin7. I mean' I do &are t#at t#e$ se
Bit&oin in 5a$s t#at are o(s&re. 9DD:32;
AT: Ma$(e eAp!ain a (it more a(ot 5#at t#is part o4 Bit&oin is and 5#$ its... 9DD:3L;
PT: I &are a(ot t#e so4t5are. I &are a(ot t#e 5a$ t#e te&#no!o7$ 5or%s. Im not t#at
interested in t#e 4inan&ia! environment arond eA&#an7es. I dont rea!!$ &are t#at m&# a(ot
t#e !atest mer&#ant A-I. None o4 t#at rea!!$ matters t#at m&# to me. I &are a(ot 5#en
Bit&oin transa&tions #appen' #o5 do Bit&oin sers se 5a!!et so4t5are to 7o and ma%e t#ose
transa&tions #appen' and so on. 9DE:01;
AT: *#at is t#e &onsenss part o4 Bit&oinB 9DE:02;
PT: I4 $o 5ant to ta!% a(ot t#e &onsenss part' t#e &onsenss part is t#e proto&o!. T#e
Bit&oin proto&o! is de4ined ($ a &op!e o4 t#osand !ines o4 CRR sor&e &ode. T#at is t#e
sor&e &ode t#at Satos#i 5rote. 9DE:1L;
AT: Co mean t#e net5or% proto&o!B 9DE:/0;
PT: No' I mean t#e Bit&oin proto&o!. 9DE://;
AT: T#e (!o&% va!idationB 9DE://;
PT: <emem(er' t#e net5or% proto&o! I t#in% $o mean t#e 5a$ t#at (!o&%s are passed
arond (et5een t#e nodes. T#at is not part o4 t#e Bit&oin proto&o!. 9DE:31;
AT: <i7#t. Co mean t#e (!o&% va!idation and t#e s&r$ptin7. 9DE:32;
PT: Ces. *#en 5e deve!opers ta!% a(ot t#e Bit&oin proto&o!' or at !east 5#en some o4 s
deve!opers ta!% a(ot t#e Bit&oin proto&o!' 5e re4er to t#e r!es t#at de&ide 5#et#er or not a
(!o&% is va!id' in trn' 5#at is t#e state o4 t#e &rrent (!o&%&#ain' 7iven t#e set o4 in4ormation
$o %no5 a(ot. T#at proto&o! is de4ined ($ a 4e5 t#osand !ines o4 CRR sor&e &ode.
-eop!e o4ten #ave t#is idea o4 t#is proto&o! spe&i4i&ation (ased on somet#in7 5#ere t#e
spe&i4i&ation needs to (e 5ritten. T#e easiest t#in7 to do is 6st sa$ t#at spe&i4i&ation is t#is
sma!! portion o4 t#e sor&e &ode 4rom t#e Bit&oin re4eren&e imp!ementation' as re!ated to
&onsenss. 9D.:13;
AT: T#is is 5#at ma%es Bit&oin' Bit&oin. 9D.:1D;
PT: Ces. Its eAa&t!$ it. 9D.:1.;
AT: Ho5 do a!! t#e di44erent Bit&oin versions 5or% to7et#erB 9D.:/0;
PT: I t#in% $o #ave 7ot to nderstand t#at 5#en it &omes to t#e re4eren&e imp!ementation'
on GitH(SBit&oinSBit&oin' ver$ !itt!e o4 t#e &ore &onsenss &ode is ever &#an7ed. =or t#e
most part' 5#at #as &#an7ed #as eit#er (een &osmeti&' s&# as addin7 primitives 6st to 7o
and 7ive de(77in7 messa7es or potentia!!$ movin7 a (it o4 &ode arond or &#an7in7 t#e
indents' or st44 t#at 5e rea!!$ #opin7 5asnt important' !i%e t#e Leve!)B p7rade 5#i&#' o4
&orse' is a 7reat eAamp!e (e&ase 5e s&re5ed it p and 5e ended p &reatin7 a #ard 4or%. In
7enera!' it doesnt &#an7e (e&ase it is t#e spe&i4i&ation o4 5#at Bit&oin is. 9DL:00;
AT: *#$ is important not to &#an7e itB 9DL:0/;
PT: T#e moment $o &#an7e it' t#e net5or% doesnt #ave &onsenss and Bit&oin is niKe in
t#at &onsenss is a se&rit$ isse. I !i%e to se t#e ana!o7$ o4 Lets sppose $ore in a
&ro5d and $o #ave a (a74! o4 va!a(!es' ma$(e t#e Peens 6e5e!s' or somet#in7 and t#e
on!$ 5a$ to prote&t t#at (a7 is ($ #o!din7 onto it. Mean5#i!e' $o #ave t#ieves tr$in7 to
&ome in and 7ra( t#at (a7 and stea! t#e Peens 6e5e!s and $o #ave to as% $orse!4' 5o!d
$o 5ant ever$one p!!in7 in t#e same dire&tion tr$in7 to #o!d t#e (a7 in one p!a&e a7ainst
t#e t#ie4 tr$in7 to stea! it' or do $o 5ant t#e &onsenss to (rea% do5n over 5#o is t#e t#ie4
and #ave peop!e p!!in7 a7ainst ea&# ot#er' ma%in7 it m&# easier to overpo5er t#e stren7t#
o4 t#ose 5#o are tr$in7 to #o!d t#at (a7 and %eep it se&re. In t#e &ase o4 Bit&oin' i4 nodes
disa7ree a(ot 5#at is t#e Bit&oin (!o&%&#ain' and espe&ia!!$ i4 minin7 nodes disa7ree' $o
&an #ave 5or% done t#at is not in &onsenss' &reate a 4or% and t#en atta&%ers &an 7o and se
t#e 4a&t t#at 5or% 5as not done in &onsenss to 7o &reate transa&tions t#at appear to #ave
&on4irmed (t #avent. =rom t#at' o4 &orse' t#en $o &an 7o and stea! mone$ 4rom peop!e.
Cove destro$ed 5#at Bit&oin is spposed to (e a se&re 5a$ o4 determinin7 5#et#er
transa&tions #ave a&ta!!$ #appened or not. 9DJ:1E;
AT: T#e &onsenss &ode' it needs to (e t#e same (et5een nodes' or t#e nodes need to operate
in a deterministi&a!!$ sin7!ar 5a$. 9DJ:/D;
PT: Ces' $es. 9DJ:/E;
AT: Ho5 m&# &an t#is &ode deviateB I mean' $o 7ave t#e eAamp!e o4 t#e Leve!)B
p7rade' 5#i&# &ased a 4or%. 9DJ:3D;
PT: *ere at t#e !eve! 5#ere even i4 peop!e ran t#e eAa&t same &ode' deviation sti!! &an
#appen (e&ase t#e eAe&tion environment t#e &ompter t#at t#e &ode rns on isnt a!5a$s
eAa&t!$ t#e same' 5#i&# I t#in% s#o!d 7ive peop!e a sense o4 #o5 #ard it is to ma%e sre
&onsenss is maintained. I #ave never seen an a!ternative imp!ementation 4rom t#e 7rond p
t#at #as even &ome &!ose to 7ettin7 it ri7#t. T#e ones t#at $o do see' $o 4ind (7' a4ter (7'
a4ter (7 5#ere it doesnt Kite mat&# t#e semanti&s. It ma$ even (e t#at t#e$ 4iA t#e (7 (t'
in Bit&oin' 4iAin7 a (7 is not 4iAin7 an$t#in7. Its (rea%in7 t#e &onsenss. Co mst
imp!ement Bit&oin eAa&t!$ t#e same 5a$ as ever$one e!se does' or $o ris% (rea%in7
&onsenss. Its a ver$ to7# (arrier and I dont t#in% &ompter s&ien&e is at a point 5#ere 5e
&an reimp!ement Bit&oin and 7et it ri7#t. Co &an &ertain!$ &#an7e a!! t#e st44 arond t#at
&onsenss &ode $o &an #ave &omp!ete!$ di44erent 5a!!ets' $o &an #ave &omp!ete!$
di44erent r!es' or #o5 transa&tions are re!a$ed 4rom one node to anot#er (t 5#en $o
re&eive a (!o&%' $o mst per4orm t#e eAa&t same a&tions to determine 5#et#er or not t#e
(!o&% is rea!' as ever$one e!se does. 91:00:2E;
AT: T#e$ sa$ in t#eir so4t5are deve!opment' t#ere is never an$ so4t5are 5it#ot an$ (7s in
it and so' do $o t#in% t#at in t#e &onsenss &ode t#at t#ere are (7s in t#ere t#at 5e dont
%no5 a(ot t#at need to (e rep!i&ated t#at ma$(e an a!ternativeB 91:01:00;
PT: Ces' a(so!te!$. T#ats 5#at is so #ard a(ot rep!i&atin7 Bit&oin. Ever$ time I 7o spend
some time !oo%in7 at t#e &ode in detai!' it seems I 4ind anot#er t#in7 I didnt %no5 a(ot
(e4ore. -eop!e nderestimate 6st #o5 &omp!eA a 4e5 t#osand !ines o4 sor&e &ode &an (e
5#en $o #ave to mat&# its (e#avior eAa&t!$. 91:01:/0;
AT: T#e pro(!em is not a 4e5 t#osand !ines o4 &odeN its not a di44i&!t t#in7. Its re!ative!$
eas$. Core ma%in7 t#e ar7ment t#at its not t#at 5e #ave to 5rite a &op!e o4 t#osand
!ines o4 &ode (t its t#at t#ose &op!e o4 !ines o4 &ode mst per4orm ver$ sin7!ar!$ in its
4n&tiona!it$. 91:01:20;
PT: *#ats interestin7 a(ot t#at is to 5rite Bit&oin is eas$. I4 $o 5ant to imp!ement an
a!t&oin or i4 $o 5ere t#e person 5#o 5anted Bit&oin in t#e 4irst p!a&e' 5ritin7 t#at &ode is
not t#at #ard (e&ase 5#at it does is a&ta!!$ prett$ simp!e. *#en $o 5ant to 5rite a (7
4or (7 &ompati(!e reimp!ementation' t#ats 6st a ni7#tmare. Its in&redi(!$ #ard. 91:0/:00;
AT: Ho5 a(ot #o5 Satos#i made Bit&oin. 91:0/:03;
PT: T#eres a !ot o4 sspi&ion t#at Satos#i 5asnt even a pro7rammer (e&ase' 4ran%!$' t#e
Bit&oin sor&e &ode s&%s. Bit&oin 5as ver$ (ad!$ made. Bit&oin ses so4t5are deve!opment
pra&ti&es t#at 5ere a54! (t it 5or%ed 5e!! eno7# and' ear!$ in its #istor$' some (7s 5ere
4iAed and !ast minte &#an7es. *#at 5e #ave is 5#at 5e #ave. *e #ave to 7o dea! 5it# 5#at
5e #ave and 5or% 4rom t#ere. 91:0/:/D;
AT: Is Bit&oin t#e 4tre o4 or 4inan&ia! in4rastr&treB Or !o&a! 4inan&ia! in4rastr&treB
91:0/:31;
PT: I 5o!d sspe&t' no. I 5o!d sspe&t t#at 5e 5o!d 7o see !essons !earned 4rom Bit&oin
app!ied to more &onventiona! 4inan&ia! in4rastr&tre (e&ase Bit&oin is a ver$ n4or7ivin7
s$stem. Bit&oin #as no a(i!it$ to (e 4iAed' ot#er t#an ($ &onvin&in7 ever$one to 7o 4iA
somet#in7 5#en an isse &omes p. 91:0/:2J;
AT: )o $o t#in% t#ats so!va(!eB 91:0/:D0;
PT: No. 91:0/:D1;
AT: Ma$(e 5it# an a!ternate &oin' 5o!d t#at (e so!va(!eB -ossi(!e evenB 91:0/:DD;
PT: Cea# (t an a!ternate &oin is 7oin7 to 7o !oo% !i%e t#e &rrent 4inan&ia! s$stem' 5#ere($
#man intervention $o &an ma%e it do an$t#in7 $o 5ant. 91:03:03;
AT: A# ri7#t' 5it# #man intervention. 91:03:0D;
PT: Ces. 91:03:0D;
AT: Bt t#en' t#ats not Bit&oin is it rea!!$B 91:03:0.;
PT: *#ereas Bit&oin sa$s no' t#ere is no #man intervention ot#er t#an ever$one a7reein7.
91:03:11;
AT: Cea#' its 4iAed. 91:03:11;
PT: I t#in%' in rea!it$' 4or most prposes t#ats too stri&t. 91:03:1.;
AT: O# rea!!$. 91:03:1L;
PT: Most eAamp!es 5i!! not 5ant to dea! 5it# t#at. 91:03:/0;
AT: *#$ do $o t#in% t#atB Its too stri&tB 91:03:/3;
PT: Its Kite simp!e. *#en peop!e ma%e mista%es' t#e$ 5ant to #ave t#e a(i!it$ to #ave
t#ose mista%es 4iAed. T#e !e7a! s$stem is rea!!$ 7ood at t#is. T#e !e7a! s$stem &an ma%e
an$t#in7 #appen. I !ove sin7 t#e eAamp!e o4 #ndreds o4 $ears a7o 5#en varios treaties
5ere made (et5een (Im not even 7oin7 to sa$ 5#at term Im 7oin7 to se se) (t t#e
peop!e 5#o &ame to t#e ne5 5or!d and made treaties 5it# t#e peop!e 5#o a!read$ !ived t#ere.
Even t#ree #ndred $ears !ater' t#ose treaties are 7ettin7 ripped p and rede4ined and
remodi4ied (e&ase it 5as de&ided t#at t#e$ are not 6st and t#e$ needed to (e modi4ied'
5#ereas in a Bit&oin s$stem' t#at 5o!d (e impossi(!e 5it#ot #avin7 ever$ sin7!e person
5#o sed t#e s$stem to a7ree to ma%e t#e &#an7e. A!! $o #ave to do to rip p a treat$ 4rom
t#ree #ndred $ears a7o is &onvin&e ma$(e a do@en 6d7es (t to 7o &#an7e somet#in7 in
Bit&oin reKires t#osands. 91:02:1E;
AT: *#at do $o t#in% o4 BitS#ares and Master&oin and ot#er proposa!s !i%e t#ese onesB
91:02://;
PT: I dont t#in% t#e$ are as interestin7 as Bit&oin itse!4. 91:02:/2;
AT: *#ats interestin7 a(ot Bit&oinB 91:02:/D;
PT: T#at it is mone$' t#at it is somet#in7 o4 va!e 5it#ot an$ re4eren&e to an$t#in7 in t#e
rea! 5or!d. On t#e ot#er #and' Co!ored&oins' Master&oins and so m&# ot#er st44 !i%e it'
t#e$!! rea!!$ 6st &ontin7 s$stems (ased on &entra! identities. =ndamenta!!$' Co!ored&oin
is on!$ as va!a(!e as t#e t#in7 t#at it 5as issed ($. *#i!e its &ertain!$ ver$ interestin7 t#at
$o &an 7o &reate an a&&ontin7 s$stem 4or s#ares t#at is independent o4 t#e &ompan$' its not
as interestin7 as 7oin7 &reatin7 somet#in7 ot o4 t#in air t#ats va!a(!e 5it# no ties to a rea!
5or!d identit$. I &ertain!$ dont 5ant to 7o pt do5n Co!ored&oins. Its a 4as&inatin7
eAperiment (t its not as 4as&inatin7 as Bit&oin itse!4. 91:0D:1/;
AT: BitS#ares 5ant to &reate an a!ternate (!o&%&#ain t#at 7ives t#em a!! t#e po5er to &reate
a!! t#ese di44erent &on&epts t#at $o &ant do 5it# Bit&oin' 5#ereas t#in7s !i%e Master&oin or
Co!ored&oins 5ants to !evera7e t#e (!o&%&#ain and se a!! t#e eAistin7 minin7 po5er and
momentm t#ats (e#ind Bit&oin to 4e! t#eir te&#no!o7ies. *#i&# do $o t#in% is t#e (etter
approa&# or is t#ere no (etter... 91:0D:3L;
PT: A(so!te!$ Master&oins and Co!ored&oins. Tr$in7 to 7o &reate $or o5n (!o&%&#ain
4rom s&rat&# 4or $or o5n prpose is &ra@$. Master&oin is em(edded in Bit&oin.
Co!ored&oins is em(edded in Bit&oin and t#at means t#at $o 7et t#e se&rit$ o4 Bit&oin
(e&ase $ore em(edded 5it#in it' 5#ereas i4 $o tr$ to 7o &reate a (!o&%&#ain 4rom s&rat&#
4or $or o5n prpose' it on!$ #as as m&# se&rit$ as peop!e are 5i!!in7 to t#ro5 a5a$ in
mone$ minin7 it 5#i&# is !i%e!$ not ver$ m&#' t#ere4ore its not se&re. 91:0E:0.;
AT: I4 a too! #as a !ot o4 e&onomi& in&entive 4or peop!e to se it' ma$(e peop!e &o!d drive
t#e adoption o4 a ne5 (!o&%&#ain. 91:0E:1E;
PT: No. 91:0E:1.;
AT: NoB 91:0E:1.;
PT: No' (e&ase it #as to 7et to t#e !eve! o4 in&entive t#at is se&re ver$ Ki&%!$ or it 5i!! (e
atta&%ed. Onti! it 7ets to t#at point' its not se&re and t#ere4ore t#ere is no in&entive to se it.
91:0E:/L;
AT: *#$ 5as Bit&oin so !&%$B 91:0E:30;
PT: Be&ase it 7ot !&%$. 91:0E:31;
AT: <i7#t. 91:0E:31;
PT: T#ats a!! it &omes do5n to. Bit&oin &o!d #ave (een %i!!ed o44 ear!$ on (t 5e 5ere
!&%$ eno7# t#at it didnt. In some respe&ts' it &o!d sti!! (e %i!!ed o44 and ma$(e a #ndred
$ears 4rom no5' 5ere 7oin7 to (e a(!e to sa$ *e 5ere prett$ damn !&%$ it didnt.
91:0E:2.;
AT: It seems prett$ inevita(!e t#at t#e (!o&%&#ain is 7oin7 to (e sed and a(sed and peop!e
are 7oin7 to do a!! %inds o4 di44erent app!i&ations' !evera7in7 o44 o4 it. Its a ne5 &on&ept or a
ne5 data str&tre in &ompter s&ien&e 5#i&# 5e #avent 4!!$ investi7ated. T#e Bit&oin 1.0
is t#e one t#ats t#ere and $o &an start pttin7 st44 inside it. Bit&oin is str77!in7 ri7#t no5
5it# t#e (!o&%&#ain. A!read$' its (e&omin7 a pro(!em t#at' as its (e&omin7 more resor&e
intensive' 5e!! #ave to t#in% OK' #o5 &an 5e ma%e it more easier 4or peop!e to rn it.
91:0.:/2;
PT: T#e t#in7 is Bit&oin isnt (e&omin7 more resor&e intensive in t#e 5a$ t#at matters.
T#e 5a$ t#at it matters is #o5 m&# (and5idt# it ta%es to %eep p 5it# t#e (!o&%&#ain. T#at
(and5idt# is 4iAed. I4 5e %eep t#e (!o&% si@e !imit' it &annot (e more t#an 1M('
approAimate!$ ever$ ten mintes. 91:0.:20;
AT: A!so 5rite speeds. 91:0.:2/;
PT: Cea# (t t#ats irre!evant. Co #ave 1M( o4 data' approAimate!$ ever$ ten mintes.
T#at amont o4 spe&s and t#e pro(!em sta$s t#e same. No5 &ertain!$ $o #ave a !ar7e
amont o4 data to s$n& p i4 $o 5is# to s$n& p 4rom (!o&% @ero (t 5e a!read$ #ave a ver$
7ood #and!e on #o5 to ma%e &r$pto7rap#$ t#at doesnt reKire t#at to (e done. *e %no5
#o5 to so!ve t#at pro(!em (t 5#at 5e do not %no5 #o5 to so!ve is #o5 to ma%e t#e (!o&%
si@e (i77er 5it#ot ris%in7 a disaster. T#ere are &ertain!$ some approa&#es t#at seem prett$
promisin7 !i%e t#e s#ardin7 st44 (t eKa!!$' I &an te!! $o t#at t#e peop!e 5#o !oo%ed at t#at
t#in% t#at' to 7o ma%e s#ardin7 t#e (!o&%&#ain 5or% reKires di44erent e&onomi& in&entives
t#an Bit&oin &rrent!$ #as. On t#e ot#er #and' t#e e&onomi& in&entives (e#ind Bit&oin are
(ro%en an$5a$ and 5#at t#at rea!!$ &omes do5n to is in Bit&oin' in t#e !on7 rn' se&rit$
7ets paid 4or ($ transa&tion 4ees (t t#e se&rit$ is needed ($ ever$one 5#o o5ns Bit&oin.
On4ortnate!$' t#e de4!ation rate o4 Bit&oin approa&#es @ero in t#e !on7 rn. I mean' it does
7o to @ero in t#e !on7 rn. At some point' t#at de4!ation rate 5i!! (e&ome too !o5 to' ($ itse!4'
spport eno7# minin7 #as#in7 po5er to %eep Bit&oin se&re. Ma$(e transa&tion 4ees 5i!!
7o pi&% p t#e s!a&%' ma$(e t#e$ 5ont. I4 t#e$ dont' 5ere s&re5ed. Ma$(e it 5i!! ta%e
t5ent$ $ears' ma$(e it 5i!! ta%e ten' and ma$(e it 5i!! ta%e a #ndred. I dont %no5 (t its
prett$ eas$ to 7o see t#at t#at de&!inin7 &rve 5i!! #it a point 5#ere t#ere is not eno7#
in&entive to mine and t#e 5#o!e t#in7 &o!!apses. 91:0J:0.;
AT: *#at are t#e most important topi&s 5e #ave to resear&# into t#e (!o&%&#ain to
investi7ateB 91:0J:1/;
PT: I 5o!d sa$ s&a!a(i!it$' I 5o!d sa$ 4i7rin7 ot #o5 to 7o ma%e minin7... 91:0J:1.;
AT: S&a!a(i!it$ in 5#at 5a$B 91:0J:1J;
PT: ,st s&a!a(i!it$ in 7enera!. Its a #7e aspe&t. 91:0J:/2;
AT: Co mean readin7 t#e (!o&%&#ain' 4or instan&e' $ea#B 91:0J:/L;
PT: =or a!! t#ese t#in7s. Ma$(e ot o4 t#at s(set t#e most important t#in7 is ma%in7 sre
its a!5a$s possi(!e to mine in a s&a!a(!e 5a$. 91:0J:3.;
AT: Co said it 5as a so!va(!e pro(!em and t#e (i77est one 5as (and5idt#' ri7#tB 91:0J:21;
PT: <i7#t. As I sa$' s$n&in7 p o!d #istor$ to o(tain a de&ent !eve! o4 trst in o!d #istor$
t#ats a so!va(!e pro(!em' or at !east 5e t#in% it is. *e #avent imp!emented t#e so!tion.
91:0J:D3;
AT: <i7#t' so its ta%in7 t#ese &on&epts and app!$in7 t#em. 91:0J:D.;
PT: Ces (t so!vin7 t#e pro(!em o4 ma%in7 t#e (!o&% si@e (i77er' t#at is not somet#in7 5e
%no5 #o5 to so!ve ot#er t#an so!tions !i%e o44"&#ain transa&tions' 5#i&# 6st dod7es t#e
isse. 91:10:0L;
AT: Cea#' $ea#. 91:10:0J;
PT: It &ertain!$ dod7es in a ver$ ni&e 5a$ (t 4or t#e &onsenss s$stem o4 Bit&oin' it does
not so!ve t#e isse. 91:10:1E;
AT: O44"&#ain transa&tions !oses t#e re&ord t#e 4a&t t#at $o #ave a re&orded entr$ in t#e
(!o&%&#ain. 91:10://;
PT: O44"&#ain transa&tions 6st means t#at rat#er t#an re!$in7 on t#e &onsenss o4 ever$one'
$o re!$ on t#e &onsenss o4 a ver$ sma!! 7rop or $o trst some &entra! servi&e. 91:10:33;
AT: )o $o t#in% <ipp!e &o!d provide somet#in7 !i%e t#at. 91:10:3D;
PT: Sre' (t <ipp!e re!ies on trst in sma!!... 7rops o4 peop!e. It is not t#e same sort o4
mode! as Bit&oin. No5' t#e t#in7 5it# o44"&#ain transa&tions is $o &an 7o se a !ot o4 ot#er
&!ever &r$pto7rap#$ and ot#er tri&%s to &reate s$stems 5#ere $o &an trst t#ird parties 5it#
$or mone$ and pt t#ose t#ird parties in positions 5#ere i4 t#e$ rn o44 5it# $or mone$'
t#e$ 5i!! a&ta!!$ end p 5it# !ess retrn t#an ot#er5ise. *#at $o &ant do is ma%e it
impossi(!e 4or t#ose t#ird parties to not do some #arm to $o. Its not !i%e Bit&oin 5#ere $o
&an ma%e it impossi(!e 4or a t#ird part$ to do an$t#in7 to $o. 91:11:12;
AT: )o $o t#in% t#at ($ t#in%in7 more a(ot t#ese 4ndamenta! pro(!ems in Bit&oin' rat#er
t#an ne5 mer&#ant so!tions' or di44erent Bit&oin 5e(sites' or pa$ment 7ate5a$s' t#is is
rea!!$ a more 4ndamenta! area to invest or ener7$ inB *o!d pttin7 resor&es into so!vin7
t#ese pro(!ems #e!p a!so t#e mer&#ants and t#e 5a!!et sers' and so on and #o5B 91:11:22;
PT: I t#in% t#is is 6st a !on7 termSs#ort term investment t#in7. Co s#o!d do (ot# (t t#e
main t#in7 is to 7o and a&&ept t#at t#in%in7 a(ot !on7 term isses is important.
On4ortnate!$' 5e #ave some mem(ers o4 t#e Bit&oin &ommnit$ 5#o t#in% t#at !on7 term
isses arent important and I t#in% 5#ats important is to 7o sa$ to t#ose mem(ers o4 t#e
&ommnit$ t#at t#e$re s#ort"si7#ted. Its as simp!e as t#at. EKa!!$' 5#en someone does
&ome p 5it# some &!ever ne5 mer&#ant A-I' or some ni&e ne5 5a!!et so4t5are' Im not
7oin7 to pt t#em do5n 4or it. T#e$re doin7 7ood 5or%. T#e &#an&es are t#e$re t#e sort o4
peop!e 5#o 5i!! do 7ood 5or% in t#at 4ie!d and Im t#e sort o4 person 5#o 5i!! do 7ood 5or%
in m$ ana!$sis 4ie!d o4 !on7"term t#in%in7 and t#at is tota!!$ 4ine. 91:1/:/D;
AT: *or% in t#is %ind o4 t#in7' !i%e o44"&#ain transa&tions' or (!o&%&#ain s&a!a(i!it$' or so on
" #o5 &an t#is impa&t t#e peop!e 5#o mi7#t do t#e mer&#ant so!tions or t#e sers o4 t#e
5a!!ets in tan7i(!e 5a$sB 91:1/:2/;
PT: T#e immediate impa&t is t#at i4 pro(!ems in t#ese 4ie!ds arent so!ved in some 5a$ or
anot#er' and t#at in&!des (ein7 so!ved ($ &ompromises and Ki&% #a&%s' $o 5ind p 5it#
peop!e in&reasin7!$ 5#o are not a(!e to 7o and se Bit&oin 4or ver$ sma!! va!e transa&tions.
I dont see t#at as a (i7 isse 7iven t#at its ver$ eas$ to see t#at most o4 5#at Bit&oins sed
4or is as an investment. T#e 5a$ $o %no5 t#is is tre' is $o 6st ta%e a!! t#e mone$ t#at
mst 4!o5 into Bit&oin to %eep t#e pri&e sta(!e 7iven t#e de4!ation rate and $o divide it ($
t#e nm(er o4 transa&tions. Crrent!$' ea&# transa&tion &osts a(ot I30 and it spi%ed p to' I
t#in%' ID0 ma$(e... a&ta!!$ no' its pro(a(!$ tre' and it pro(a(!$ is a(ot ID0 ri7#t no5.
ID0 is m&#' m&#' m&# more eApensive t#an an$t#in7 t#at an avera7e person is 7oin7 to
se Bit&oin 4or' to even ma%e a sma!! pr&#ase. On t#e ot#er #and' its not ver$ eApensive in
terms o4 (ein7 a(!e to 7o and trans4er va!e arond t#e 5or!d 5it# no intermediaries and 5it#
no a(i!it$ to (!o&%. A 5ire trans4er (et5een ar(itrar$ (an%s arond t#e 5or!d tends to (e
a(ot ID0. =or s investin7 in Bit&oin as an asset' as an asset t#at &annot (e &on4is&ated' ID0
o4 transa&tion doesnt ne&essari!$ pose m&# o4 a pro(!em. 91:12:00;
AT: Bit&oin as a ne5 4ndamenta! primitive o4 trade' e&onomi& too! o4 (siness' inevita(!$
&reates ne5 mar%ets t#at didnt eAist (e4ore. *#at is t#e potentia! t#at #asnt $et (een
rea!i@ed o4 Bit&oin t#at &o!d (e&ome a rea!it$B *#at are t#e rea!!$ interestin7 app!i&ations'
or possi(i!ities' t#at ma$(e t#in7s t#at 5i!! ndermine' or po5er str&tres' or t#in7s t#at 5i!!
improve peop!es !ives in 4ndamenta! 5a$sB *#at are t#e t#in7s t#at $o rea!!$ t#in% are
interestin7 a(ot Bit&oin 5e #avent eAp!ored $etB 91:12:3D;
PT: I &o!d 7o and name varios pie&es o4 te&#no!o7$ t#at #avent (een 4!!$ deve!oped (t
I t#in% t#e most interestin7 t#in7 sti!! (oi!s do5n to t#e 4a&t t#at $o #ave a 5a$ o4 storin7
5ea!t# t#at &annot (e &on4is&ated. T#at is rea!!$ 4ndamenta!. An$t#in7 e!se &an eit#er (e
&on4is&ated ($ simp!e de&ree' as in $or (an% a&&ont is 4ro@en' or it &an (e &on4is&ated ($
p#$si&a! 4or&e. Bit&oin is di7ita! $et it &annot (e &on4is&ated ($ de&ree and t#at is a(so!te!$
4ndamenta! to 5#at Bit&oin is. It on!$ is possi(!e (e&ase Bit&oin is de&entra!i@ed and t#at
is somet#in7 t#at no ot#er s$stem &omes &!ose to providin7. 91:1D:1/;
AT: Not#in7 e!se in t#e 5or!d. 91:1D:13;
PT: Cea#' not#in7 e!se in t#e 5or!d. 91:1D:12;
AT: Ho5 5i!! t#at &#an7e t#in7sB *#$ is t#at importantB 91:1D:1.;
PT: It &#an7es t#in7s in so man$ 5a$s (e&ase it &#an7es 5#at po!iti&ians' 5#at
7overnments &an do' 5#ereas a!! t#e ot#er st44 t#at Bit&oin &an ena(!e' t#in7s !i%e !o5 &ost
pa$ments' even t#in7s !i%e identities on t#e internet t#at are arti4i&ia!!$ made eApensive. I
mean' a!! t#at st44' t#ere are ot#er 5a$s to do t#at (t a store o4 va!e t#at &ant (e
&on4is&ated t#ere arent an$ ot#er 5a$s to do t#at. 91:1D:2/;
AT: *#at are some o4 t#e pra&ti&a! t#in7sB 91:1D:2E;
PT: I to!d $o t#e pra&ti&a! t#in7s " peop!e 5#o are a(!e to 7o and store 5ea!t# t#at &annot (e
&on4is&ated. T#ats a ver$ pra&ti&a! prpose. 91:1D:D3;
AT: *#at 5o!d I see ot o4 t#atB *o!d it &o!!apse t#e 7overnments or t#e (an%sB
91:1D:DJ;
PT: *#$ 5o!d it &o!!apse an$t#in7B 91:1E:00;
AT: T#ats 5#at Im as%in7. 91:1E:01;
PT: It 7ives peop!e options. It ma%es it m&# easier 4or t#em to 7o ta%e a&tion sa$' a7ainst
7overnment' %no5in7 t#at t#e$!! #ave somet#in7 to 4a!! (a&% on. It retrns po5er (a&% to
t#ose 5#o are a(!e to 7o and #ave some mone$ st44ed a5a$. Im not 7oin7 to sa$ it retrns
po5er (a&% to t#e peop!e t#ats not tre. *#en I sa$ it retrns mone$ (a&% to t#e peop!e
5#o are in a position 5#ere storin7 5ea!t# 5i!! (e se4! 4or t#em. 91:1E:/E;
AT: EA&e!!ent. T#an%s. 91:1E:/.;
PT: Core 5e!&ome. 91:1E:30;
????????????????????????????????????????
'RED(TS:
T#an%s 4or !istenin7 to Episode .3 o4 Lets Ta!% Bit&oin.
H8e7as Live -art / 5as prod&ed ($ Adam B. Levine 5it# additiona! en7ineerin7 ($
Kr$sta! Levine. It 5as edited ($ Matt#e5 Fip%in and 4eatred Andreas M.
Antonopo!os' Step#anie Mrp#$ and Adam B. Levine
HAmir and -eter 5as prod&ed ($ Amir Taa%i 5it# additiona! en7ineerin7 ($ Adam
B. Levine. It 5as edited ($ Matt#e5 Fip%in and 4eatred Amir Taa%i and -eter Todd
T#e adio 4or HT#in% )i44erent' an App!e &ommer&ia! 4rom t#e !ate HJ0s 5as p!a$ed
in its entiret$. A!! (randin7 5as visa! and !istenin7 to it a7ain !ast 5ee%' I 5as str&%
($ t#e 5ords and rea!!$ 5anted to s#are it. I #ope $o en6o$ed t#is ot o4 &onteAt
t#o7#t
Msi& 5as provided 4or t#is episode ($ ,ared <(ens' Ca!vin Henderson and Matt#e5
Mr%o5s%i
Pestions or &ommentsB Emai! adamT!etsta!%(it&oin.&om.
Have a 7ood one> 91:1.:/1;