LETS TALK BITCOIN

Episode 85 MtGox and Malleability

Participants:
Adam B. Levine (ABL) - Host
Andreas M. Antonopo!os (AA) " Co-#ost
Step#anie Mrp#$ (SM) " Co-#ost
T#e %o!!o&in' pro'ram is %or in%ormationa! prposes on!$. Cr$pto(rren($ is a ne& s(ien(e
so do $or #ome&or) *e%ore pttin' mone$ on t#e !ine.
Toda$ is +e*rar$ ,-
t#
./,0. 1e!(ome to Episode -2 o% Lets Ta!) Bit(oin3 a t&i(e &ee)!$
s#o& a*ot t#e ideas3 peop!e and pro4e(ts *i!din' t#e di'ita! e(onom$ and t#e %tre o%
mone$.
M$ name is Adam B. Levine and Im t#e editor-in-(#ie% at t#e LTB net&or) and toda$3 its a!!
a*ot Mt5o63 one o% t#e ear!iest3 !on'est rnnin'3 and %or man$ $ears3 t#e *i''est e6(#an'e
in t#e &or!d o% Bit(oin t#ats #ad anot#er o% its $ear!$ pani(s. T#eres a !ot o% 'rond to
(over #ere so &ere 'oin' to 4mp ri'#t in. 7/809:
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
ABL: +or toda$s episode o% Lets Ta!) Bit(oin3 &ere a(ta!!$ 'oin' to reintrod(e
orse!ves. Lets Ta!) Bit(oin is a s#o& a*ot t#e ideas3 peop!e and pro4e(ts *i!din' t#e
di'ita! e(onom$ and t#e %tre o% mone$. T#ats )ind o% a %an($ &a$ o% sa$in' t#at &e t#in)
t#at (r$pto(rren($ is a %ndamenta!!$ 'ame-(#an'in' te(#no!o'$ and t#at Bit(oin is )ind o%
at t#e %ore%ront o% t#at. M$ name is Adam B. Levine and Im t#e editor-in-(#ie% o% Lets Ta!)
Bit(oin and Im one o% t#e #osts on t#e s#o&. 7,8,/:
SM: Im Step#anie Mrp#$. Im a radio #ost and a voi(eover artist and a %ormer resear(#
*io(#emist. Ive *een sin' Bit(oin sin(e ./,,. Im rea!!$ e6(ited a*ot Bit(oin *e(ase I
t#in) it #e!ps *rin' #man %reedom to t#e &or!d. 7,8.2:
AA: Hi3 Im Andreas Antonopo!os. I am a se(rit$ e6pert and spe(ia!i<e in distri*ted
s$stems. Ive *een &or)in' in t#at %ie!d %or a!most t&o de(ades no& and Bit(oin is
somet#in' t#at #as (aptred m$ ima'ination and #as *e(ome m$ main passion3 m$ main
%o(s and m$ &or) %or t#e !ast t&o $ears. 7,80=:
ABL: +or t#e !ast nine mont#s or so3 I 'ess its pro*a*!$ (!oser to ten mont#s no& sin(e
.2
t#
Apri!3 &eve *een doin' t#is s#o& t&i(e a &ee) and not a!&a$s &it# ever$*od$ on t#e
s#o& *t t#e point #as *een to #ave t#e #i'# !eve! (onversation t#at peop!e &#o are interested
in (r$pto(rren(ies and interested in t#e %tre t#ats *ein' (reated #ere3 to #ave t#ose
(onversations and to rea!!$ ta!) a*ot t#e t#in's t#at mi'#t *e more (omp!i(ated t#an a ne&
ser (o!d (ome to terms &it# easi!$ *t3 %or peop!e &#o #ave *een in t#e spa(e %or a &#i!e3
t#ese are rea!!$ t#e important t#in's t#at &e need to ta!) a*ot. Is Mt5o6 %ina!!$ on its !ast
!e's> Is t#is !atest pro*!em t#at t#e$ve #ad3 &#i(# res!ted in t#e %ree<in' o% *ot# %iat
(rren($ &it#dra&a!s and Bit(oin &it#dra&a!s " is t#is %ina!!$ t#e stra& t#at *rea)s t#e
(ame!s *a() and !eads to t#e demise o% Mt5o6> 7.89?:
SM: @st to *e (!ear3 t#ere &as a separate pro*!em t#at prevented t#em %rom pro(essin'
do!!ar &it#dra&a!s3 &#i(# t#e$ rea!!$ #avent *een ver$ transparent a*ot *t &#at t#e$ do
sa$ is t#at its a re'!ator$ isse or a *an)in' pro*!em &#i(# is &#$ t#e$ (ant 'et %iat mone$
to t#eir (stomers &#en t#e$ tr$ to &it#dra& it %rom t#e e6(#an'e. T#e Bit(oin &it#dra&a!
pro(essin' pro*!em &as ne& 4st t#is &ee) and a(ta!!$3 *$ a!! indi(ations3 t#e$ &erent too
transparent a*ot it nti! peop!e started (omp!ainin' ver$ !od!$. T#ere &as one '$ &#o
a(ta!!$ protested and %!e& to Mt5o6 #eadAarters in To)$o and 4st &aited %or some o% t#e
#i'#er-ps at t#e (ompan$ to (ome to &or) so #e (o!d ta!) to t#em and posted a*ot it on
Beddit. Bea!!$ %nn$ *t its not %nn$ i% $o #ave *it(oins or %iat st() in t#e e6(#an'e and
$o (ant 'et t#em ot and $ore pro*a*!$ )ind o% %rea)in' ot. 798.?:
AA: I dont rea!!$ t#in) t#is is a di%%erent pro*!em t#o'#. Its t#e same pro*!em. Its t#e
same pro*!em %or t#e CSD &it#dra&a!s3 its t#e same pro*!em %or t#e Bit(oin &it#dra&a!s3
its t#e same pro*!em %or t#e denia! o% servi(e and !aten($ pro*!ems *a() in Apri!3 its t#e
same pro*!ems *e%ore t#at3 its t#e same pro*!ems drin' t#e denia! o% servi(e atta(). T#e
pro*!em is (!o&nis# and in(ompetent mana'ement %rom t#e top3 a s!opp$ deve!opment
pro(ess %or t#e so%t&are deve!opment3 in(ompetent (ommni(ation t#at is rare and sa!!$
se!%-servin' and intended to s#i%t t#e *!ame e!se&#ere3 de%ensive and a'ain3 t#is is t#e same
pro*!em. T#e pro*!em is (!o&nis# and in(ompetent mana'ement %rom t#e top t#at #as
persisted a%ter t#ree $ears &it#ot an$ dis(erni*!e improvement in t#e Aa!it$ o% peop!e #ired
or t#e mana'ement Aa!it$ to a(ta!!$ treat (stomers &#o #ave serios mone$ in t#is
e6(#an'e respe(t%!!$3 #onest!$ and dire(t!$ and to admit isses &#en t#e$ o((r3 (!ari%$
&#ats *ein' done to %i6 t#em3 %i6 t#em Ai()!$ and t#is (ases t#ese ($(!es &#ere peop!e
dont trst 5o6 *e(ase 5o6 doesnt te!! s &#at t#e$re doin'. 1#en t#e$ do sa$
somet#in'3 its se!%-servin'3 de%ensive and aims to de%!e(t t#e *!ame and t#at (reates paranoia
so (stomers t#in) " O# m$ 'od3 ma$*e t#e mone$ isnt rea!!$ t#ere and ma$*e t#ats &#$
t#e$re sa$in' t#is. T#at starts a pani( and a rn on t#e *an) and &eve seen t#is n%o!d %ive
times and ever$ sin'!e time3 its *een t#e same *asi( mista)es made a'ain and a'ain and
a'ain. 5ess &#at> Eo (an %i6 t#e so%t&are and $o (an %i6 t#e !aten($ pro*!ems and $o
(an %i6 t#e DDOS pro*!ems *t $o (ant %i6 in(ompetent mana'ement. Eo (ant nti! t#e
peop!e &#o are in mana'ement %i're ot t#at t#eres a di%%eren(e *et&een *ein' a visionar$
pioneer3 and a!! )dos and app!ase to t#em %or *ein' t#at3 and a(ta!!$ rnnin' a *siness in
a pro%essiona! and (onsistent manner &#i(# t#e$re (!ear!$ na*!e to do. Eo (ant %i6 t#at.
7280?:
ABL: I dont ne(essari!$ disa'ree &it# $o on t#is and I (ertain!$ a'ree t#at Mt5o6 #as #ad
p!ent$ o% opportnities to %i6 t#is *t I a!so #ave #ad (onversations &it# peop!e &#o a(ta!!$
&or) &it# 5o63 or &#o &or) %or 5o63 and t#e t#o'#t t#ere is t#at t#e$re )ind o% trapped in
an impossi*!e sitation. In t#e past3 t#e$ve sort o% said t#is3 t#e$ve said " 1e!!3 &ere
vi(tims o% or o&n s((ess. T#ats one part o% it *t t#e ot#er part is t#at t#e$ do #ave to
inter%a(e &it# rea! &or!d partners &#o3 a !ot o% times3 !i)e %or e6amp!e3 i% t#e$ (omp!ain
a*ot t#eir *an) and t#e *an) is t#e on!$ one t#at &i!! &or) &it# t#em in @apan3 t#en t#e *an)
4st s!o&s do&n. It a(ta!!$ (an ma)e t#e pro*!em &orse *$ ta!)in' a*ot it. I% $o &ere in
t#at same sitation Andreas3 and 4st #avin' di%%i(!t$ s(a!in'3 &#at is t#e 'ame p!an> Do
$o 4st pa() p or do $o 4st )eep #irin' peop!e *e(ase t#e$ve done t#at> 7?89,:
AA: I t#in) t#e most important t#in' is to *e #onest3 dire(t and pro!i%i( in t#e
(ommni(ations and (onsistent in t#e (ommni(ations. I t#in) t#ats *een t#e *i''est %ai!in'.
Its t#e (ir(!in' o% t#e &a'ons and 'oin' Aiet at a time &#en pro*!ems &i!! inevita*!$ (ome
ot and t#at 'oin' Aiet t#en !eads to pani( and paranoia a*ot &#at t#e root (ase is
*e(ase3 in a!! o% t#ese (ases3 t#e main pro*!em #as *een a !a() o% (ommni(ation3 or
(ommni(ation t#at is &ease!!$ instead o% *ein' dire(t and a'ain3 see)s to de%!e(t *!ame
instead o% admittin' pro*!ems. Fro*!ems are 'oin' to #appenG o% (orse t#e$re 'oin' to
#appen3 espe(ia!!$ in t#ese !ar'e3 rapid!$ s(a!in' Bit(oin *sinesses. 1ere a!! #avin'
pro*!ems a!! t#e time. T#is is a ver$ di%%i(!t3 (ompetitive3 ver$ rapid!$ es(a!atin' mar)et
and its di%%i(!t to mana'e a *siness in t#is environment *t its not t#e pro*!ems3 its #o&
$o dea! &it# t#em and &#et#er $o dea! &it# t#em in an open manner3 t#ats respe(t%!
to&ards $or (stomers and t#e$ &i!! %or'ive t#e pro*!ems as !on' as $o (ommni(ate
(!ear!$ &it# t#em and $ore dire(t and #onest. T#e$ &i!! not %or'ive and &i!! (ontinos!$
!ose trst i% $o repeated!$ avoid (ommni(atin'3 or (ommni(atin' in a &a$ t#ats more
a*ot de%!e(tin' *!ame t#an (!ari%$in' t#e sitation. I dont *!ame 5o6 %or in(orre(t!$
imp!ementin' transa(tion #as#es. I *!ame 5o6 %or a press re!ease t#at t#en attempted to
t#ro& Bit(oin nder t#e *s in order to pretend t#at some#o& t#is &asnt t#eir
imp!ementation pro*!em. 7-8,.:
SM: E6p!ain &#at t#at &as3 %or peop!e &#o arent (a'#t p &it# t#at. 7-8,?:
ABL: A(ta!!$3 !ets *a() p %or a se(ond #ere. T#e &#o!e pro*!em #ere is (a!!ed transa(tion
ma!!ea*i!it$3 ri'#t> Lets a(ta!!$ ta)e a step *a() and ta!) a*ot t#at and t#en3 Id a!so !i)e
to ta!) a*ot t#e CS do!!ar pro*!ems t#e$ve #ad in t#e past too. 7-8.-:
AA: Lets ta!) a*ot transa(tion ma!!ea*i!it$. I!! tr$ &it# an ana!o'$3 I t#in)3 &#i(#... its
o*vios!$ not ,//H a((rate !i)e no ana!o'$ is *t it ma$ #e!p (!ari%$ t#e isse. I% $o s#o&
p at a department store &it# a re(eipt %or a pair o% s#oes and $o &ant a re%nd3 t#e
department store is not 'oin' to trst t#at re(eipt. T#e$re 'oin' to !oo) at t#e re(eipt3
t#e$re 'oin' to (ross(#e() it a'ainst t#eir o&n interna! re(ords and t#e reason t#e$re 'oin'
to do t#at is *e(ase3 a !ot o% t#e time3 peop!e 'o and *$ I./ pair o% s#oes and t#e$!! (ome
*a() t#e ne6t da$ %or a re%nd &it# a p#otos#opped re(eipt &#i(# s#o&s it &as I.// pair o%
s#oes. I% $or (stomer servi(e emp!o$ees are not proper!$ trained and t#e$ dont (#e()
a'ainst t#e re(ords3 t#e$re 'oin' to 'ive ot I.// in re%nds to 'et a prod(t *a() t#at $o
on!$ paid I./ %or. Or3 a (stomer &i!! s#o& p at one department store *ran(# and 'et a
re%nd and t#en drive a %e& mi!es do&n t#e road and 'o to anot#er *ran(# and 'et anot#er
re%nd and t#en drive a %e& mi!es do&n t#e road to anot#er *ran(# and 'et anot#er re%nd3 a!!
&it# p#otos#opped or p#oto(opied re(eipts. T#e isse #ere is t#at t#e re(eipt itse!% is not
at#oritative. T#e re(eipt (an *e tampered &it# and it (an *e tampered &it# ver$ (reative!$.
Eo (an add di'its to t#e amont3 $o (an p#oto(op$ it3 $o (an ma)e di%%erent (opies %or
di%%erent items and $o (an %a)e t#e item. Eo (o!d do t#at &it# de!iver$ re(eipts %rom
s#ippin' (ompanies3 $o (o!d pretend t#at somet#in' t#at s#o!d #ave *een de!ivered #asnt
*een de!ivered *$ (reatin' a %a)e tra()in' reAest t#at doesnt mat(# t#e interna! (ompan$s
tra()in' reAest. 1#at (ompanies in t#e rea! &or!d do is t#e$ esta*!is# se(rit$ pro(edres.
1#at t#e$ do is t#e$ tr$ to veri%$ t#e in%ormation t#at $o present a'ainst an at#oritative
re(ord. In Bit(oin3 transa(tions are %in'erprinted &it# a #as# *t nti! t#at transa(tion is
(on%irmed into t#e *!o()(#ain3 nti! its em*edded in a *!o() and *a()ed *$ proo%-o%-&or)
(omptation3 its not at#oritative. Its 4st !i)e a paper re(eipt t#at t#e (stomer *rin's into a
(stomer servi(e department %or a re%nd. Eo (ant trst it. It ma$ !oo) !i)e $or store
re(eipt *t someone (o!d easi!$ #ave (reated a dp!i(ate. Cnti! $o (an veri%$ t#at a'ainst
t#e at#oritative !ed'er3 and in Bit(oin t#e at#oritative !ed'er is t#e *!o()(#ain3 t#e
de(entra!i<ed asset !ed'er *a()ed *$ proo%-o%-&or) (omptation and trsted *e(ase o%
proo%-o%-&or) (omptation. Transa(tion %in'erprints are at#oritative on!$ on(e t#at
transa(tion #as *een (on%irmed and *e%ore t#at3 t#e$ are ma!!ea*!e. T#e reason t#e$ are
ma!!ea*!e is *e(ase t#e transa(tion itse!% is not a %i6ed re(ord. Its not simp!$ a t#ree !ine
re(eipt &#ere $o sa$ " +rom A to B3 amont J. T#ats not #o& Bit(oin transa(tions &or).
1it#in t#e Bit(oin transa(tion3 $o #ave t#e spendin' o% previos otpts %rom a previos
transa(tion and t#en $o #ave a s(ripta*!e !an'a'e t#at (reates an en(m*ran(e %or t#e ne6t
re(ipient. Essentia!!$3 it ties a va!e to a spe(i%i( p*!i( )e$ t#ro'# t#e se o% a s(riptin'
!an'a'e and t#at s(riptin' !an'a'e is eva!ated as an eAation. As !on' as t#at eAation
va!idates3 t#ats a va!id transa(tion t#at &i!! 'et re!a$ed *t t#ere are in%inite &a$s t#at $o
(an &rite t#at eAation and t#ere are in%inite &a$s t#at $o (an e6press t#e previos inpts
s(# t#at ea(# one o% t#ese variations &i!! sti!! *e t#e same inpts3 t#e same otpts and t#e
same amonts *t t#e$!! *e s*t!$ di%%erent3 eno'# to (reate a di%%erent %in'erprint. Let me
'ive $o anot#er ana!o'$. In t#e Bit(oin net&or)3 i% $o tr$ to spend . Bit(oin3 or i% $o tr$
to spend /. Bit(oin3 or i% $o tr$ to spend //..// Bit(oin3 t#e net&or) &i!! eva!ate a!! o%
t#at as . *it(oins. T#ats (a!!ed Kpaddin' and $o (an do t#at &it# *ot# positive and ne'ative
nm*ers3 $o (an add <eros to t#e *e'innin' or t#e end o% t#e nm*er in s(# a &a$ t#at t#e$
&ont (#an'e t#e &a$ t#at t#e transa(tion is va!idated. To (#an'e t#e &a$ t#e transa(tion is
va!idated3 $o &o!d #ave to (#an'e ever$ sin'!e Bit(oin node to va!idate transa(tions
di%%erent!$ and $od a!so #ave to ma)e t#e s$stem m(# !ess %!e6i*!e. Eod #ave to %or(e it
into a %i6ed str(tre &#i(# t#en ma)es it impossi*!e to innovate. T#e same t#in' %or t#e
re(ipient o% t#e transa(tion " t#ats e6pressed as a s(ript &#i(#3 i% $ove seen in t#e s(ript
se(tion o% B!o()(#ain.in%o or anot#er *!o() e6p!orer $o!! see it as OF DCF OF Has# ,?/
C#e() Leri%$ C#e() Si'natre and t#is !itt!e s(ript3 *asi(a!!$3 sa$s " Heres a p*!i( )e$3
#eres t#e %n(tion t#at $o need to eva!ate to (on%irm t#e person presentin' t#is %or
redemption #as t#e (orre(t p*!i( )e$. Its an eAation and $o (an &rite an eAation
di%%erent &a$s. T#in) o% an eAation &#i(# is 0M2NO. T#e important t#in' is t#at it va!idates
as O3 *t $o (an &rite it as 0M23 $o (an &rite it as 0M0M,3 $o (an &rite it as ,-P.3 $o (an
&rite it as sAare root o% -,. A!! o% t#ose &i!! eva!ate to OG a!! o% t#ose are va!id. A!! o%
t#ose are %ndamenta!!$ di%%erent in appearan(e and &i!! res!t in a di%%erent si'natre.
Transa(tion ma!!ea*i!it$ is3 *asi(a!!$3 t#e %a(t t#at &e #ave a s(riptin' !an'a'e in a varia*!e
!en't# en(oded transa(tion t#at is %!e6i*!e eno'# to e6press a ver$ *road variet$ o%
transa(tion times and to *e e6tensi*!e. T#ats (riti(a! to #avin' a s$stem t#at (an a!!o&
innovation &it#ot #avin' to (#an'e ever$ sin'!e (!ient ever$ sin'!e time. Instead3 $o 4st
#ave t#e r!es *$ &#i(# t#in's are eva!ated. T#e pro*!em &it# t#at means t#at nti! t#at
transa(tion is essentia!!$ p#oto(opied3 stamped and em*edded into t#e *!o()(#ain3 in an
immta*!e %as#ion3 its %in'erprint (an *e (#an'ed or ot#ers (an *e (reated t#at are identi(a!
in ever$ &a$3 e6(ept %or t#e %in'erprint. T#is is somet#in' &eve )no&n sin(e ./,,. T#is is
somet#in' t#at &as p*!is#ed on t#e &i)i3 &#i(# ironi(a!!$ is o&ned *$ t#e Mt5o6 o&ner3 in
@anar$ ./,9. T#is is somet#in' t#at &as spe(i%i(a!!$ identi%ied as a &ea)ness in Mt5o6s
imp!ementation a*ot %or mont#s a'o. T#ere &ere severa! posts3 *ot# *$ (ore deve!opers
and ot#ers3 &ritin' #o& a *ot (o!d *e (reated to in4e(t ma!!ea*!e re(ords t#at &o!d %oo!
an$one &#o re!ied on transa(tion #as#es in order to do &it#dra&a! veri%i(ation and t#at t#is
parti(!ar atta() (o!d *e sed a'ainst Mt5o6s spe(i%i( imp!ementation to de%rad t#em o%
mone$. T#e$ &ere3 not 4st &arned t#at t#is &as a pro*!em3 t#e$ &ere &arned t#at t#is &as a
pro*!em t#at t#eir imp!ementation &as v!nera*!e to and t#at (o!d res!t in t#em 'ettin'
de%raded. T#e$ i'nored t#ose &arnin's and t#en3 &#en it #appened3 t#e$ trned arond and
*!amed Bit(oin %or not %i6in' transa(tion ma!!ea*i!it$ &#i(# (ant *e %i6ed *e(ase its not a
*'. It is an in#erent (#ara(teristi( o% t#e %a(t t#at &e #ave a varia*!e !en't# transa(tion
s(riptin' !an'a'e at t#e (ore o% Bit(oin. T#ats not %i6a*!e. 1e dont &ant to %i6 t#at
*e(ase t#at is #o& $o 'et %!e6i*i!it$ in t#e proto(o!. Its re!$in' on t#at #as# *e%ore its
(on%irmed t#ats t#e pro*!em. T#ats e6a(t!$ &#at 5o6 &as doin'. In %a(t3 no& &e see t#at
in !esser &a$s3 in &a$s t#at #ad not#in' to do &it# &it#dra&a!s *t #ad to do &it# *asi(
a((ontin'3 severa! ot#er imp!ementations a!so re!ied on t#at. T#e$ &erent as v!nera*!e.
T#e$ &erent as e6p!oited *t t#e$ &ere disrpted. T#is &ent %rom *ein' an ed'e (ase to a
(ommon pra(ti(e and t#en a %!ood. Ever$one &#o #ad *'s &as a%%e(ted and a!! o% t#e *'s
are no& 'ettin' e6posed *$ t#is. 7,=8/0:
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
ADVER:
T#is is C#ris @osep# *rin'in' $o ne&s on N6t3 t#e %irst tre se(ond 'eneration
(r$pto(rren($ %or +e*rar$ ,-
t#
./,0. More and more so%t&are (!ients are appearin' %or
N6t. Aside %rom t#e *asi( NBS (!ient t#at is insta!!ed &it# t#e server3 &e no& #ave a ne&
open sor(ed &e*-*ased (!ient3 a native Ma( (!ient3 .N6t and N6t So!aris %or 1indo&s and
t&o (ross p!at%orm (!ients (a!!ed C!ientN6t and O%%sprin'. Severa! o% t#ese (!ients a!so
spport t#e de(entra!i<ed e6(#an'e &#i(# is sti!! *ein' tested on a test net. A!! o% t#ese
(!ients &ere (reated *$ mem*ers o% t#e N6t (ommnit$ and $o (an %ind a!! o% t#em at
&&&.N6t(!ient.or'. +or more in%ormation3 #ead to &&&.N6t(r$pto.or' or &&&.M$N6t.or'
and sta$ tned %or more ne&s on N6t in t#e ne6t Lets Ta!) Bit(oin *road(ast.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
ABL: Lets ta!) a*ot &#at a(ta!!$ #appened at Mt5o6 &it# re'ards to t#is " #o& t#at
a(ta!!$ #appened3 #o& peop!e &ere atta()in'. Corre(t me i% Im &ron' #ere Andreas *t I
nderstand t#at t#at &as a rea!!$ 'ood e6p!anation3 *$ t#e &a$3 o% t#e te(#ni(a! side o% t#is. I
*e!ieve3 in pra(ti(e3 #o& t#is #appened &as t#at peop!e &o!d s*mit &it#dra&a! reAests
%rom Mt5o63 tr$in' to ta)e ot Bit(oin and t#en3 essentia!!$3 &o!d #ave miner nits or
(o!!din' miner nits t#at &o!d *e &at(#in' %or transa(tions (omin' in to t#ose addresses
t#at t#e$ &ere &it#dra&in' %rom and as soon as it &o!d see t#at transa(tion *road(ast *$
Mt5o6 on t#e net&or)3 it &o!d essentia!!$ repro(ess it and pt ot anot#er version3 a *ad
version3 t#at &o!d (ompete %or spreadin' a!! a(ross t#e net&or). I% t#e 'ood one spread
a(ross t#e net&or)3 t#e (orre(t one %or Mt5o63 t#en t#eres no rea! &a$ t#at Mt5o6 &o!d
#ave even *een a*!e to te!! t#at an atta() &as attempted *t i% t#e *ad version &on3 t#en t#e
person t#en 'oes *a() to Mt5o6 and sa$s " See3 t#is transa(tion didnt #appen3 send me
mone$ a'ain. Is t#at it> 7,O8/-:
AA: Frett$ m(#3 a!t#o'# I do*t t#ere &ere (o!!din' miners. Eo dont rea!!$ need
(o!!din' miners in t#is parti(!ar (ase. 1#at $o need is3 $o need to &at(# Mt5o6 and
t#eir attempt to propa'ate a transa(tion %or &#i(# $or address is a re(ipient and t#en3 as
Ai()!$ as possi*!e3 not on!$ dp!i(ate and modi%$ t#at *t t#en propa'ate t#e modi%ied
version t#ro'# man$3 man$3 man$ more nodes m(# %aster t#an 5o6 is propa'atin'. Eo
(an do t#at *$ prepositionin' (onne(tions to man$3 man$ more nodes. Its not ne(essar$ to
*e (onne(ted to as man$ nodes as possi*!e *e(ase it doesnt matter &#i(# o% t#e t&o 'ets
(on%irmed %irst3 i% &#at $ore (#e()in' is t#at t#e inpts are spent or not and $ore
(#e()in' a%ter (on%irmation into t#e *!o() *e(ase $o (ant modi%$ an$t#in' ot#er t#an t#e
si'natre. Eo dont rea!!$ need to *e %!!$ (onne(ted and $o dont need to #ave a ra(e to
propa'ate *e(ase &eve !et it a!! sett!e ot t#ro'# t#e minin' pro(ess and *!o()
(on%irmation. In t#is (ase3 *e(ase t#ere &as a %a!t$ imp!ementation3 t#ere &as an
advanta'e to propa'atin' transa(tions %aster %or t#e atta()er and so3 t#ere%ore3 a!! t#e$ #ad to
do &as set p nodes in s(# a &a$ as to over-(ommni(ate and over-(onne(t to t#e net&or)
so t#e$ (o!d propa'ate m(# %aster3 pro*a*!$ propa'atin' at too man$ o% t#e minin' poo!s
as Ai()!$ as possi*!e. As a res!t3 in some (ases3 t#e$ &on t#e ra(eG t#e$ 'ot t#e modi%ied
transa(tion in3 t#en t#e$ s#o& p *a() at 5o6 and t#e$ sa$ " Loo)3 t#e #as# $o 'ave me as a
re(eipt3 &#i(# $o t#in) is at#oritative3 #as not 'one t#ro'#. At t#at point3 5o6 s#o!d sa$
" 1e!!3 !ets (#e() t#e *!o() and see i% t#e inpts are spent and %ind t#at t#e inpts #ave *een
spent and sa$ " 1e!! no3 a transa(tion did 'o t#ro'#3 it 4st #as a di%%erent si'natre *t #ere
it is3 it &as spent and it &as sent to $or a((ont. Instead3 t#e$ a((epted t#e !a() o% a
tra()in' nm*er as proo% o% non-&it#dra&a! and t#en reissed t#e &it#dra&a!s. 7.,8,,:
ABL: A'ain3 t#is 'ets *a() to t#at ana!o'$ $o sed at t#e *e'innin' &#i(# is 'o in &it# a
p#oto(opied re(eipt and t#e$ #ad <ero &a$ to (#e() i% it &as a rea! re(eipt or a *ad re(eipt
and so3 *e(ase t#e$ dont &ant to !ose an$ more %a(e3 t#e$ 4st re%nd it *e(ase &#at are
t#e$ 'oin' to do3 not re%nd it> 7.,8.9:
AA: Essentia!!$3 at t#at point3 t#e$ need to (#e() t#at re(eipt and ma)e sre t#at t#e ot#er
*ran(# o% t#e same department store #asnt a!read$ (as#ed it in. 7.,89/:
ABL: T#eres no &a$ %or t#em to do t#at in t#eir (rrent s$stem> 7.,89.:
AA: T#ere is a &a$ to do it *t t#eir (ode didnt and &orse3 it a!so pro(essed t#e repeat
&it#dra&a!s atomati(a!!$. In %a(t3 i% it didnt see t#e #as# o% t#e transa(tion *e (on%irmed
a%ter a &#i!e3 it &o!d simp!$ atomate a se(ond attempt *e(ase o((asiona!!$3 transa(tions
dont 'o t#ro'# %or &#atever reason so t#e$ &o!d reisse it. T#eres anot#er
imp!ementation %!a& t#ere *e(ase *e%ore reissin' a transa(tion3 or tr$in' to (an(e! a
transa(tion3 ever in t#e Bit(oin net&or)3 t#e *est pra(ti(e is to initiate a prpose%! and se!%-
initiated do*!e-spend &#ere *asi(a!!$3 &#at $o do is $o sa$ " Im 'oin' to propa'ate %irst
a transa(tion t#at de%initive!$ spends t#ose inpts3 4st in (ase3 even t#o'# it seems !i)e it
#asnt 'one t#ro'#. In t#e time it too) sin(e I !oo)ed and sin(e I sent t#e ne& one3 ma$*e it
does 'o t#ro'#3 ma$*e t#e state o% t#e net&or) (#an'es. 1#at Im 'oin' to do is %or(e
re(on(i!iation. T#e &a$ $o %or(e re(on(i!iation is $o isse a do*!e-spend a'ainst t#e
ori'ina! transa(tion and t#en $o &ait nti! t#at do*!e-spend 'oes t#ro'#. Essentia!!$3 &#at
$o do is $o spend t#ose otpts3 t#at $ore not sre &#et#er t#e transa(tion &ent t#ro'#
or not. Eo spend t#ose otpts de!i*erate!$ to one o% $or o&n addresses. On(e t#ats
em*edded in t#e *!o()(#ain and t#ose otpts are spent3 t#at (annot *e ndone3 so $o se
t#e *!o()(#ain *$ in4e(tin' a transa(tion t#ats a prpose%! do*!e-spend to (reate a
re(on(i!iationG to %or(e a spendin' o% t#ose otpts so t#at t#e ot#er transa(tion (annot 'o
t#ro'# on(e t#e do*!e-spend $o sent is *ein' (on%irmed and t#en $o (an *e assred t#at
t#at transa(tion (annot 'o t#ro'#. T#en it is (an(e!!ed. Its (an(e!!ed *e(ase $o inserted
an at#oritative one t#at (an(e!!ed itG t#at spersedes it. T#ats t#e (orre(t *est pra(ti(e.
Instead3 in t#is parti(!ar (ase3 t#e$ reissed t#ese and not 4st dependin' on t#e %a(t t#at t#e$
(o!dnt see t#e #as# ot t#ere *t a!so not (#e()in' t#e inpts and a!so3 %ina!!$3 not doin' t#e
%or(ed do*!e-spend t#at &o!d 'arantee t#at t#ose inpts (o!d not *e spent in t#e
intervenin' time - t#ree di%%erent imp!ementation s#ort(ts3 *a() to *a()3 a!! atomated and
'ivin' ver$3 ver$ eas$ opportnit$ to *e de%raded. 7.980?:
ABL: I #ave no idea #o& to do a %or(ed do*!e-spend. Im not (onvin(ed I ever need to
)no& t#at. Is t#is somet#in' t#at an avera'e ser or even an advan(ed ser &o!d &ant to or
&o!d need to )no&> Is it 4st somet#in' %or instittions !i)e Mt5o6> 7.982-:
AA: T#is is somet#in' t#at a &a!!et does atomati(a!!$ i% its tr$in' to (an(e! a transa(tion
and its somet#in' t#at a !ar'e s(a!e &a!!et mana'ement s$stem or a )e$ mana'ement s$stem
!i)e an e6(#an'e #as to do *e(ase an e6(#an'e t#ats issin' #ndreds and #ndreds o%
transa(tions3 &i!! o((asiona!!$ see some o% t#em not propa'ate (orre(t!$. Eo (ant 4st sa$ "
1e!!3 i% I #avent seen it in one *!o()3 t#en its not 'oin' t#ro'#. 1#at i% it 'oes t#ro'# in
t&o *!o()s and3 in t#e meantime3 $o assme t#at mone$s t#ere *t t#en it 'oes t#ro'#>
Eo (ant 4st sa$ " 1e!!3 !et me &ait nti! it doesnt 'o t#ro'# *e(ase t#ere is no statte o%
!imitations. It (o!d 'o t#ro'# a da$ !ater. Someone (o!d )eep it aside and t#en
re*road(ast it !ater and ma)e it 'o t#ro'#. T#ere is no time !imit on it3 ri'#t> 1a!!et %ormed
transa(tion3 on(e propa'ated3 (an 'o t#ro'# even i% it didnt 'o t#ro'# t#e %irst time. 1#at
$o #ave to do is $o #ave to %or(e t#e isse and t#e &a$ $o %or(e t#e isse is3 essentia!!$3
spendin' t#e mone$ to $orse!%. +or a simp!e ser3 &#at t#at means is i% $o send somet#in'
to some&#ere and it doesnt 'o t#ro'#3 and t#en $o &o!d t#en tr$ to send t#e same
amont to one o% $or o&n addresses and t#at &o!d (onsme t#e same inpt and i% t#at 'oes
t#ro'#3 t#en $o are 'aranteed t#at t#e ot#er transa(tion (ant !ater *e rep!a$ed. Most
&a!!ets #and!e t#is atomati(a!!$. 7.28/O:
SM: Do $o pt a !ar'er transa(tion %ee on t#e transa(tion to (onsme t#e inpts> 7.28,0:
AA: T#ats a 'reat Aestion. E6a(t!$. Eo (an do t#at so $o (an in(rease t#e transa(tion
%ee to ensre t#at $or transa(tion is prioriti<ed *e%ore t#e one t#at $o &ant to (an(e! so t#at
$or %or(ed do*!e-spend is prioriti<ed at a #i'#er priorit$. Eo (o!d do t#at. In %a(t3 $o
(an even pre-(reate a transa(tion3 )ind o% !i)e a Hai! Mar$ transa(tion. Lets sa$ $o #ave an
amont in a &a!!et and $o &ant to ma)e sre t#at no one (an stea! t#at amont %rom t#at
&a!!et3 %rom spe(i%i( otpts in a spe(i%i( (in(ome red(ed spe(i%i() address. Eo (an (reate
a transa(tion &it# a #i'# %ee t#at spends t#at to an address t#at $ove never sed *e%ore3
t#ats $ors and t#en $o (an 4st )eep t#at on stand*$ and essentia!!$3 #ave a s(ript t#at
&at(#es t#e net&or) and i%3 at an$ point3 $o see an nat#ori<ed spend3 &#i(# means t#at
someone sto!e $or )e$s3 $o (an ma)e a !ast dit(# e%%ort to ver$ rapid!$ propa'ate $or
do*!e-spend and #ope it *eats it into t#e *!o()(#ain and t#en spends $or transa(tion *a()
to $o *e%ore t#e transa(tion t#at is stea!in' $or mone$ spends it e!se&#ere. Bea!!$3 t#e
!timate ar*iter o% trt# is (on%irmed transa(tions in *!o()s on t#e trsted de(entra!i<ed
!ed'er. T#at is t#e at#oritative !ed'er. 5ettin' a transa(tion into t#at !ed'er is not a time-
*ond %n(tion3 so i% $o &ant to ensre t#at a transa(tion is not 'oin' into t#at !ed'er3 $o
#ave to (reate a (ompetin' transa(tion t#at pre(!des it %rom 'oin' into t#e !ed'er *$ %or(in'
a do*!e-spend. 7.?80,:
SM: O*vios!$3 ot#er e6(#an'es #ave #ad t#e pro*!em o% 'ettin' *i' and #avin' to dea! &it#
t#at and Im (rios i% &e (o!d point ot some e6amp!es o% e6(#an'es t#at #ave #and!ed it
&e!! &it# 'ood (ommni(ation to t#eir (stomers *e(ase I (ant rea!!$ t#in) o% an$ o%% t#e
top o% m$ #ead *t ma$*e its *e(ase t#e$ &ere so smoot# a*ot #and!in' t#eir pro*!ems
t#at I 4st didnt even rea!i<e t#e$ &ere #avin' pro*!ems. 7.=8/9:
AA: As %ar as &e )no&3 at t#is time3 Coin*ase #as not sspended &it#dra&a!s. I made one
toda$. It &ent t#ro'# in t&o se(onds and t#ere%ore3 t#eir imp!ementation is (orre(t. T#eir
s$stem is Aite o*vios!$ not *ein' (on%sed *$ transa(tion ma!!ea*i!it$ *ots in4e(tin' a
%!ood o% t#ese3 t#o'# &e )no& t#eir imp!ementation is (orre(t *e(ase t#is %!ood is a%%e(tin'
ever$one and so i% t#e$ are a*!e to s&im a'ainst t#is %!ood3 t#at means t#e$ imp!emented it
(orre(t!$ in t#e %irst p!a(e or t#e$ %i6ed it *e%ore an$*od$ noti(ed an$t#in' &as 'oin' on. I
didnt see an$ o% t#e &a$s at a!! or #ear o% an$. 7.=892:
SM: Bi'#t. Its e%%e(tive!$ *een testin' ever$*od$ &it# t#is %!ood o% transa(tion ma!!ea*i!it$
atta()s. 7.=80/:
AA: O# its a stress test. I t#in) its important to rea!i<e t#e di%%eren(e *et&een &#at
#appened to 5o6 and &#at #appened to t#e ot#er e6(#an'es. I!! 'o *a() to m$ department
store and t#e p#oto(opied re(eipts. Someone %inds a department store t#ats s!opp$ in its
re%nd pro(edres and t#e$ 'o in and t#e$ *asi(a!!$ start ro**in' t#em3 start de%radin' t#em
ot o% mone$ nti!3 a%ter a &ee) o% doin' t#is3 (and ma$*e t#e$ te!! some %riends so t#e$ 'o
and do it as &e!!) t#e (as# ti!! at t#at department store *ran(# rns ot and t#e$ noti(e t#eres
a pro*!em *e(ase t#e$ (ant re(on(i!e at t#e end o% t#e &ee). T#e$ immediate!$ 'o ot and
t#e$ annon(e t#at t#e re(eipt printin' (ompan$ is at %a!t (!a'#in') *$ ma)in' t#eir
re(eipts impossi*!e to p#oto(op$ and t#en t#e$ 'o into a %ranti( e%%ort to retrain a!! t#eir
emp!o$ees so t#e$ dont %a!! %or t#at %rad a'ain *t3 t#e ver$ ne6t da$ &#en t#at #its t#e
ne&s3 peop!e s#o& p &it# s#oe*o6es %!! o% re(eipts *$ t#e tens o% t#osands at ever$
department store a(ross t#e (it$ tr$in' to p!! o%% t#e same s(am. T#ats t#e *ot %!ood. I% $o
&or) in one o% t#ese department stores3 even i% $o t#in) $ove 'ot $or po!i($ and pro(ess
do&n pat and t#at $or s$stem is %ine3 $o sti!! #ave a !ine ot t#e door o% t#ese %rad!ent
*o6%!s o% %a)e p#oto(opied re(eipts t#at are %!oodin' $or s$stem. No&3 $o need to ta)e
e6tra (are and do ever$t#in' s!o&!$ *e(ase $o )no& peop!e are a(tive!$ tr$in' to e6p!oit it3
so $o s(rtini<e ever$ re(eipt m(# #arder and no&3 t#ats de!a$in' a!! o% t#e !e'itimate
(stomers t#at are in !ine. At some point3 t#ese ot#er stores sa$ " 1e t#in) &eve 'ot it OK
and in some (ases &e dont *e(ase or a((ont s$stem is 'ettin' (on%sed *t &ere not
'ivin' ot re%nds. Dont &orr$3 &ere not !osin' mone$. 1ere 4st 'ettin' or a((ontin'
s$stem (on%sed or or sta%% are 'ettin' (on%sed or &#atever3 so &ere 'oin' to s#t do&n
re%nds %or a %e& da$s and t#ats 'oin' to a%%e(t !e'itimate (stomers *e(ase t#e$ (ant 'et
t#eir &it#dra&a!s eit#er. 1ere 'oin' to retrain ever$one and (ome *a() and (ontine
pro(essin'. No mone$ is !ost3 not#in' is &ron'. T#e %!ood &i!! (ontine nti! 'rada!!$ it
re(edes *e(ase its ine%%e(tive and its a nisan(e and3 as Ive said p*!i(!$3 *$ t#is time ne6t
&ee)3 a!! o% t#e e6(#an'es &i!! #ave (orre(t imp!ementations. T#e reason %or t#at is *e(ase
t#e$ dont #ave a (#oi(e. 79/8/9:
ABL: E6a(t!$. It %or(es t#e isse !i)e not#in' e!se. 79/8/?:
AA: E6a(t!$ and t#is is t#e *eat$ o% it. 1#at is t#e !timate (on(!sion o% t#is e6er(ise>
Lets see &#at #appens. One e6(#an'e 'ot impa(ted a *it #arder and t#e$ issed &it#dra&a!s
and pro*a*!$ 'ot de%raded3 #o&ever3 I t#in) I s#o!d ma)e it (!ear I #ave no indi(ation or
even an$ reason to t#in) t#at Mt5o6 #as so!ven($ pro*!ems *e(ase t#e$ on!$ )eep a sma!!3
tin$ per(enta'e o% t#eir %nds on reserve %or pa$in' %or &it#dra&a!s. It &o!d ver$ Ai()!$
*e(ome apparent i% t#at &as *ein' drained3 t#at &as nsa! and it &o!dnt to(# t#eir
reserve %nds. T#is is not a so!ven($ pro*!em. Mt5o6 did not 'et ro**ed %or a!! t#e mone$
t#e$ #ave *e(ase t#ats not possi*!e to #appen. T#e$ #ave3 at !east3 t#at man$ pro(edres in
p!a(e to avoid it. T#e$ pro*a*!$ too) a sma!! #it *t3 at t#e same time3 I t#in) &#at #appens
ne6t &as rat#er interestin'. T#is *e(ame a &idespread atta()3 it started #ittin' ever$one and
t#e indstr$ (ame to'et#er in a ver$ (o!!a*orative %as#ion. I &as on IBC (#anne!s and p#one
(a!!s and S)$pe (a!!s and e6(#an'in' en(r$pted messa'es &it# e6(#an'e operators3 &it# (ore
deve!opers3 &it# mem*ers o% t#e team %rom B!o()(#ain.in%o3 even e6(#an'es t#at &erent
a%%e(ted3 mer(#ant pa$ment pro(essors t#at &erent a%%e(t " (ompanies !i)e B!o()(#ain.in%o
t#at &erent a%%e(ted3 &ere a!! pit(#in' in3 &ere a!! 'ettin' t#eir *est and *ri'#test to 4mp in
and #e!p ot and %i're ot &#at t#e pro*!em is3 #e!p &it# deve!opment imp!ementation
detai!s3 e6p!ain3 as)3 (!ari%$3 &#atever. T#e entire indstr$ (ame to'et#er and3 ver$ Ai()!$3
pt ot (onsistent3 (!ear and #onest (ommni(ations3 press re!eases t#at revea!ed t#e isse *t
e6p!ained e6a(t!$ &#at its impa(t &as and t#en ever$*od$ &or)ed to'et#er to so!ve t#e
pro*!em and #e!p a!! o% t#e e6(#an'es 'et *a() on t#eir %eet as Ai()!$ as possi*!e so t#e$
(o!d resme &it#dra&a!s. No&3 a &ee) !ater3 &ere 'oin' to #ave a s$stem t#ats more
ro*st. A (#ara(teristi( o% an anti-%ra'i!e s$stem is t#at &#en it is tested nder stress3 it not
on!$ is resi!ient *t it a(ta!!$ in(reases in resi!ien(e *$ ma)in' t#at previos atta() o*so!ete.
T#ats e6a(t!$ &#at &eve seen. 1eve seen stren't# in (ommnit$3 &eve seen
(o!!a*oration3 &eve seen some o% t#e emer'en($ response proto(o!s and (onta(t nm*ers 'o
into e%%e(t t#at #ad *een esta*!is#ed %rom previos isses3 &e sa& an indstr$ (omin'
to'et#er and &e sa& a pro*!em *ein' reso!ved &it#ot an$ %nds 'ettin' !ost3 &it#ot t#e
*!o()(#ains trst *asis *ein' vio!ated3 &it#ot t#e (ore net&or) proto(o! *ein' dama'ed in
an$ &a$ and &it# on!$ a s!i'#t de!a$3 &#i(# &as Aite !itera!!$ a denia! o% servi(e. It denied
servi(e to t#ose (stomers &#o !e'itimate!$ needed &it#dra&a!s and it pro*a*!$ &i!! (ost
t#em a %e& da$s. A%ter a!! o% t#at #as s#a)en !oose3 &ere 'oin' to #ave a stron'er net&or).
I t#in) t#ats a 'reat messa'e to 'o %or&ard &it#. 7998,,:
ABL: I t#in) t#at t#e resi!ien(e o% t#e net&or) and t#e (ontined 'ro&t# t#at &eve seen...
ever$ time &e #ave one o% t#ese stresses3 !i)e $o said3 it rea!!$ 4st %rt#er rein%or(es t#at
t#ere rea!!$ isnt an$t#in' $et t#ats #it s t#at t#e (on(ept and t#e (ommnit$ (ant a*sor*
and t#en rea(t to in prett$ Ai() %as#ion. One o% t#e t#in's t#ats spe(i%i( a*ot t#is
transa(tion ma!!ea*i!it$ pro*!em is t#at it dea!s &it# pre-%irst (on%irmation transa(tions.
Transa(tions t#at #ave not *een in(!ded in an$ *!o() and are 4st propa'atin' t#ro'# t#e
net&or). T#is reminded me o% somet#in' t#at I sa& a (op!e o% da$s a'o. One o% m$
%avorite &a!!ets on t#e Android p!at%orm is (a!!ed M$(e!im and its %rom a (ompan$ ot o%
5erman$3 or it mi'#t *e Astria " Andreas Fetersson o% t#e Bit(oin Beport is invo!ved &it#
t#em. T#e$ ro!!ed ot a Lo(a!Bit(oins t$pe %eatre %or t#eir Android app a (op!e o% da$s
a'o. One o% t#e t#in's t#at it in(!des in it is a %eatre (a!!ed Transa(tion Con%iden(e 5rap#s.
Basi(a!!$3 &#at t#ese do is it tra()s #o& t#e transa(tion spreads t#ro'# t#e net&or) *e(ase
t#e M$(e!im net&or) is prett$ &e!! (onne(ted in 4st !i)e an e6(#an'e is *e(ase $o &ant
to *e a*!e to propa'ate messa'es Ai()!$ and its e%%i(ient to do t#at. Eo (an a!so !earn
t#in's %rom it. Basi(a!!$3 t#e$ #ave a 'rap# t#at 'oes %rom /H (on%iden(e p to ,//H
(on%iden(e in a*ot 9/ se(onds3 most o% t#e time. Even t#o'# $o dont #ave t#at %irst
(on%irmation3 t#e %a(t t#at t#e transa(tion #as a!read$ propa'ated t#ro'#ot t#e net&or)3
ma)es it ver$3 ver$3 ver$ !i)e!$ t#at t#at is t#e transa(tion t#at &i!! *e propa'ated instead o%
an$t#in' t#ats ra(in' a'ainst it. Do $o t#in) t#at t#at a(ta!!$ #e!ps> C!ear!$3 it &o!dnt
#ave #e!ped in t#is sitation *e(ase it &as 4st a*ot a (ompetin' transa(tion. 79080-:
AA: No3 it &i!! #ave #e!ped in t#is sitation too *e(ase $ore not 4st &orried a*ot a
(ompetin' transa(tion spe(i%i(a!!$3 $ore &orried a*ot a (ompetin' transa(tion t#at do*!e-
spends t#ose %nds to a di%%erent destination. Transa(tion ma!!ea*i!it$ doesnt a!!o& $o to
do t#at. It a!!o&s $o to %a)e a transa(tion t#at !oo)s di%%erent *t is3 in %a(t3 t#e same3
&#ereas t#e isse o% do*!e-spend $ore tr$in' to prevent3 is a transa(tion t#at !oo)s t#e
same *t is3 in %a(t3 di%%erent. I% I pa$ %or m$ (o%%ee and 'et a re(eipt %or t#at and t#e
(ompetin' transa(tion is a!so pa$in' %or m$ (o%%ee *t 'ettin' a di%%erent nm*er re(eipt
%rom t#at3 as !on' as no*od$ is !oo)in' at t#e re(eipt nm*ers3 it doesnt rea!!$ matter
*e(ase t#e (o%%ee 'ot paid %or. 1#at $ore !oo)in' %or is i% I pa$ %or m$ (o%%ee and3 at t#e
same time3 I pa$ %or somet#in' e!se to a di%%erent destination address and t#en tr$ to (ompete3
or to ra(e t#at transa(tion ot so t#at m$ (o%%ee never 'ets paid. I% $o see propa'ation o% t#e
ori'ina! transa(tion3 t#en $o dont need to &orr$ too m(# a*ot t#at3 espe(ia!!$ %or
somet#in' !i)e a (o%%ee *e(ase t#e (#an(e t#en o% anot#er one3 (ompetin' one3 'oin' ot is
prett$ !o&. In t#is (ase o% transa(tion ma!!ea*i!it$3 t#e t&o (ompetin' transa(tions *ot# pa$
%or t#e (p o% (o%%ee. T#e on!$ di%%eren(e is t#e$ #ave a di%%erent re(eipt nm*er and t#at
on!$ (on%ses s$stems t#at are !oo)in' at t#e re(eipt nm*er as somet#in' meanin'%!.
79?8,9:
ABL: T#is a(ta!!$ &o!d #ave #e!ped t#en> 1#at do $o t#in) o% too!s !i)e t#is and &#at
do $o t#in) o% t#e idea t#at $o a(ta!!$ (an #ave some !eve! o% varia*!e (ertaint$ ((ertaint$
&it# *i' air Aotes arond it)3 *$ sin' t#is t$pe o% tra()in' propa'ation3 even pre t#e %irst
*!o() in(!sion> 79?8.O:
AA: T#ats one o% t#e 'reat misnderstandin's in Bit(oin - t#is idea t#at in order %or a
transa(tion to *e va!id in t#e Bit(oin net&or)3 it mst *e (on%irmed a%ter ,/ mintes or &orse3
it mst *e (on%irmed ? times a%ter ?/ mintes3 as i% ? is a ma'i( nm*er. Bea!!$ &#at t#is is
is a ris) re&ard ratio " its a ris) pro*a*i!it$ isse. A sin'!e transa(tion t#at is proper!$
si'ned3 &e!! %ormed and #as t#e ne(essar$ %ees3 on(e propa'ated3 #as a ver$ #i'# (#an(e o%
*ein' in(!ded in t#e ne6t *!o()3 no matter &#at #appens. I% $o dont see an$ ot#er
transa(tions ra(in' a'ainst it to do*!e-spend it3 &#i(# $o (an a!so tra()3 $o (an not on!$
tra() t#e (on%iden(e o% t#is one 'oin' in *t $o (o!d a!so tra() %or ot#er transa(tions
(ompetin' to spend t#e same otpts. T#at 'ives $o a !ot o% (on%iden(e even *e%ore
an$t#in' is (on%irmed *e(ase i% $o nderstand... part o% Bit(oin is not on!$ )no&in' t#at
miners &i!! in(!de t#ese transa(tions *t )no&in' t#at a 'ood transa(tion3 a &e!! %ormed
transa(tion &i!! *e in(!ded *e(ase $o nderstand #o& t#e miners pro(ess t#e transa(tions.
T#at is s%%i(ient %or a (p o% (o%%ee " propa'ation3 &#i(# ta)es se(onds3 in --,/ se(onds
$ove 'ot s%%i(ient propa'ation. In %a(t3 i% $o 4st !oo) at t#e transa(tions and see t#at t#e
otpts #avent *een spent and t#e si'natre is 'ood3 $o (an se!! a (p o% (o%%ee *ased on
t#at *e(ase $o (an propa'ate t#at transa(tion s((ess%!!$ and it is e6treme!$ n!i)e!$ t#at
someone &i!! *e a*!e to do*!e-spend t#at and its not &ort# doin' %or a (p o% (o%%ee. Its no
more ris)$ t#an someone doin' a Kdine and das#3 pi()in' p t#e (p o% (o%%ee %rom t#e
(onter and rnnin' ot t#e store *e%ore $o rea!i<e t#at t#eir (redit (ard at#ori<ation 4st
*on(ed. T#ats &#$ $o (an *$ a (p o% (o%%ee &it#ot si'nin' $or (redit (ard s!ip
*e(ase its a ris) mer(#ants are &i!!in' to ta)e. 1o!d $o se!! a Lam*or'#ini *ased on t#at
ris)> Fro*a*!$ not. 79-89?:
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
ADVER:
Kr$ptoKit is t#e &or!ds %irst C#rome *ro&ser Bit(oin &a!!et. Its t#e easiest3 %astest Bit(oin
&a!!et pa$ment s$stem &it# a simp!e one (!i() insta!!3 it ta)es 4st se(onds to 'et $or &a!!et
set p and *e(ase Kr$ptoKit %inds t#e address and pa$ment %or $o3 t#eres no more %ssin'
arond or ta* s&it(#in'. Kr$ptoKit is more t#an 4st a &a!!et. It (omes &it# a pre-!oaded
F5F en(r$pted so(ia! net&or)3 ne&s%eeds %rom Beddit and 5oo'!e and p to date (#arts %rom
e6(#an'es. +ina!!$3 Kr$ptoKit dire(tor$ a!!o&s $o to ma)e t&o (!i() pa$ments &it# an$ o%
t#e BitFa$ mer(#ants. On(e $o insta!! Kr$ptoKit3 $o &ont need an$t#in' e!se. +or more
in%ormation3 or to do&n!oad Kr$ptoKit3 visit &&&.Kr$ptoKit.(om. 79O8.9:
ADVER:
1o!d $o !i)e to *$ Bit(oin> Cas# Into Coins provides t#e %astest3 easiest and sa%est &a$
to *$ Bit(oin in t#e Cnited States. Simp!$ p!a(e an order on!ine3 deposit (as# at an$
spported *an) and re!a6. Cas# Into Coins &i!! veri%$ $or deposit and send ot $or Bit(oin
&it#in .0 #ors. @oin tens o% t#osands o% peop!e &#o #ave pr(#ased %rom Cas# Into Coins.
1#at are $o &aitin' %or> B$ $or Bit(oin toda$. 5o to &&&.(as#into(oins.(om. 70/8/.:
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
AA: T#ere is no s(# t#in' as a (on%irmed ,//H transa(tion. Its on!$ a matter o% de'rees.
One (on%irmation ma)es it m(#3 m(# more (ertain3 t&o (on%irmations is eno'# to se!! a
#i'#-pri(ed item3 t#ree is eno'# *e(ase t#e pro*a*i!it$ o% t#ree *!o()s *ein' ro!!ed *a() in
a %or) is minis(!e. Eo (an see3 %or e6amp!e3 t#at a one *!o() %or) #appens per#aps a (op!e
o% times a da$ *t (ertain!$ severa! times a &ee). A t&o *!o() %or) #appens e6treme!$ rare!$.
A t#ree *!o() %or) is a!most n#eard o% and *$ t#e time $o 'et to si6 *!o()s3 &#at t#at sa$s
is t#at t#e pro*a*i!it$ o% t#at *ein' n&ond is so !o& t#at $o (o!d sett!e enormos
transa(tions on it. It )eeps 'oin'. T#e 'enesis *!o() #as .-/3/// (on%irmations and t#e
pro*a*i!it$ o% someone providin' eno'# proo%-o%-&or) di%%i(!t$ (omptation to nro!! t#e
'enesis *!o() is inverse!$ proportionate to t#at amont o% di%%i(!t$. Essentia!!$3 t#ere is no
s(# t#in' as %!!$ (on%irmed3 t#eres on!$ more3 and more3 and more3 and more (ertaint$ as
time 'oes *$ and as more proo%-o%-&or) and more di%%i(!t$ is pi!ed on top. As a retai!er3 as
someone &#o is doin' transa(tions in Bit(oin3 &#at $o #ave to de(ide is &#at is t#e va!e o%
t#e item I am se!!in'> Ho& soon a%ter sa!e is t#at item 'oin' to *e de!ivered at &#i(# point
m$ (ommitment to se!!in' it #as #appened and I (ant not s#ip it> T#ere%ore3 #o& m(# ris)
am I &i!!in' to ta)e> T#en3 $o (a!(!ate #o& man$ (on%irmations t#at means and %or a (p
o% (o%%ee its <ero3 %or a (ompter it mi'#t *e t&o3 or a %!at s(reen TL or ma$*e t#ree at most
*e(ase $ore not 'oin' to s#ip it in t&ent$ mintes. No one #as t#at s#ippin' do&n so %ast3
or at !east a!most no one. Eo (an ta)e t#e sma!! ris) t#at it &ont *e do*!e-spent *$ !oo)in'
at t#e net&or). B$ t#e time $o rea(# si6 (on%irmations3 $o (o!d pro*a*!$ *$ an air(ra%t
(arrier3 i% $ore &orried a*ot it. 70.8,,:
ABL: T#ats *een &#at &eve #ad to t#is point *t I t#in) t#at t#is too! adds an e6tra !a$er in
t#ere &#ere $o dont ne(essari!$ #ave to ma)e t#at (#oi(e a*ot not trstin'... not &aitin'
%or t#e %irst (on%irmation *e(ase $ore OK i% $o potentia!!$ !ose I2. It seems !i)e t#is...
&eve never #ad a !a$er o% too!s *e%ore *t no& its !i)e t#e !a$er o% too!s... it sed to 'o %rom
<ero transa(tions or %rom one transa(tion at t#e minimm !eve! o% KT#is is a(ta!!$ pro*a*!$
'oin' to #appen p to3 !i)e $o said3 .-/3/// (on%irmations. 1it# ea(# (on%irmation $o
add3 it 'ets e6ponentia!!$ #arder to ndo &#ats (ome *e%ore3 ri'#t> 70.80?:
AA: E6a(t!$. T#is is not a ne& too!. +or e6amp!e3 B!o()(#ain.in%o #as #ad a %eatre %or
tra()in' t#e propa'atin' o% transa(tions a(ross t#e net&or) pro*a*!$ more t#an a $ear and a
#a!% or t&o $ears. Ive seen it *e%ore. Be%ore (on%irmation and tra()in' t#e propa'ation
a(ross a!! t#e nodes in t#e net&or)3 $o (an interro'ate t#em and see &#at propa'ation is
#appenin'. A !ot o% s$stems do t#at. A !ot o% s$stems se propa'ation as a pro6$ to eventa!
(on%irmation3 &#i(# means t#at it 'ives t#em a de'ree o% (ertaint$ t#at as !on' as $o see t#e
'ood transa(tion propa'atin' and $o dont see a *ad transa(tion propa'atin'3 t#en $o
assme t#at eventa! (on%irmation &i!! #appen *e(ase $o )no& #o& t#e miners operate
and $o )no& #o& t#eir a!'orit#m &i!! in(!de transa(tions into t#e Aee. Eo (an even
tra() &#i(# position in t#e Aee it is. Eo (an see #o& #i'# priorit$ t#e transa(tion #as
*ased on nderstandin' #o& transa(tions are se!e(ted to *e pt into a *!o(). 709802:
ABL: 1e 'ot &a$ o%% (orse #ere and I rea!!$ appre(iate t#is (onversation. T#an) $o
Andreas %or e6p!ainin' a!! o% t#at to s. T#at &as rea!!$ interestin'. T$in' t#is *a() into
Mt5o6 " &e a(ta!!$ did t#is ma$*e %ive or si6 mont#s a'o and as)ed i% an$*od$ &as sin'
Mt5o63 at t#is point3 *e(ase it &as one o% m$ %irst e6(#an'es and3 si6 mont#s a'o3 I said "
No3 I &asnt sin' it and t#at remains tre no&. Are eit#er o% $o '$s... its s(# a paria#3 as
%ar as Im (on(erned. 7008/O:
SM: No3 its *een over a $ear sin(e Ive sed Mt5o6. 7008,.:
AA: He!! no. 7008,9:
SM: I dont )no& &#$ an$one sti!! ses t#em a(ta!!$. 7008,?:
ABL: It #as name re(o'nition. T#at rea!!$ does seem !i)e t#ats it. On(e $o 'et started in a
%ie!d !i)e t#is3 momentm ta)es $o a !on' &a$. 7008..:
AA: E6a(t!$. T#e name re(o'nition (ontinos!$ &or)s in t&o &a$s. T#e %irst one is t#e
noo*ies 'et dire(ted to Mt5o6 *e(ase t#ats t#e e6(#an'e t#at man$ peop!e )no&. 1orse3 it
(reates t#ese ridi(!os #ead!ines &#ere $o #ave t#ese idiot 4orna!ists &#o (ant te!! t#e
di%%eren(e *et&een Mt5o63 t#e (entra!i<ed sin'!e point o% %ai!re e6(#an'e &it# !ess t#an
./H o% t#e vo!me o% transa(tions and Bit(oin3 t#e de(entra!i<ed resi!ient net&or). T#e$
post t#ese #ead!ines !i)e " Bit(oin &it#dra&a!s #a!ted3 pri(e p!mmets. 1e!!3 no. Mt5o6
&it#dra&a!s #ave #a!ted3 Mt5o6 pri(e p!mmets3 vo!me &ei'#ted avera'e pri(e doesnt
p!mmet and t#e rest o% s are 'oin' on &it# or !ives. Eo 'et t#ese in(redi*!$ *ad
misnderstandin's &#ere peop!e (on%!ate Mt5o6 &it# Bit(oin and t#ats ver$ dama'in' to
t#e reptation. Not on!$ does 5o6 *ene%it %rom *ein' asso(iated &it# Bit(oin and 'ettin' t#e
ne& (stomers *t t#en3 it a!so dama'es t#e reptation o% Bit(oin *$ *ein' asso(iated &it#
Bit(oin. 7028.?:
ABL: In si6 mont#s3 $o said t#at t#e$ &ere ./H o% vo!me ri'#t no&. 1#at do &e t#in)>
,/H3 2H3 'one (omp!ete!$ or are t#e$ 'oin' to (ome *a()> 702892:
SM: /H I t#in). 70289=:
AA: Im not t#at optimisti(. I t#in) pro*a*!$ in a mont# or so3 t#e$re 'oin' to %i're ot
#o& to imp!ement t#is st%%. One o% t#e isses t#e$ #ave is t#eir so%t&are deve!opment
met#odo!o'$ is s!opp$ so its 'oin' to ta)e t#em a &#i!e to imp!ement t#is. 1eve seen t#at
t#e$re 'enera!!$ s!o& in imp!ementation. T#e$re pro*a*!$ 'oin' to ta)e !on'er t#an t#e
ot#er e6(#an'es *t I e6pe(t t#at ma$*e t&o3 t#ree3 %or &ee)s %rom no&3 t#e$re 'oin' to
%i're ot #o& to do &it#dra&a!s a'ain. Feop!e are 'oin' to rea!i<e t#e$ are so!vent3 t#e$re
'oin' to re!ease t#eir Bit(oin in one *i' rn *t eventa!!$3 t#e$re 'oin' to 'et more
(om%orta*!e a'ain3 noo*ies are 'oin' to %!ood in and 5o6 is 'oin' to (ontine to e6ist a $ear
%rom no&. 70?8,.:
SM: T#e$ stopped pro(essin' %iat &it#dra&a!s or am I &ron' a*ot t#at> 70?8,=:
AA: +or do!!ars. 70?8,-:
SM: Eea#3 %or do!!ars. Are t#e$ 4st not 'ettin' CS (stomers> It sti!! seems !i)e peop!e in
t#e CS are... 70?8.?:
AA: No3 no. I t#in) t#e$re not 'ettin' traders3 or da$ traders *t i% $o &ire do!!ars into
5o6 and (onvert it into Bit(oin and &it#dra& t#e Bit(oin3 it &or)s %ine. I% $or primar$ 'oa!
is to do *$ and #o!d3 rat#er t#an da$ trade Bit(oin3 $o dont rea!!$ need to &it#dra& %iat.
Its sti!! sed as an on-ramp. It (ant *e sed as an o%%-ramp %or Bit(oin *t it (an *e sed as
an on-ramp. As an on-ramp3 *e(ase o% its !o(ation in @apan and *e(ase its not s*4e(t to
some o% t#e same restri(tions $o see #ere3 I &o!d sa$ its sti!! 'oin' to *e sed and its sti!!
'oin' to *e a va!a*!e too!. I 4st )no& t#at t#e pro*!em doesnt 'et so!ved. T#e$ ma$ %i6
t#e Bit(oin &it#dra&a! isses *t t#e$ &i!! not %i6 t#e in(ompetent mana'ement and
(ommni(ations isses. As soon as t#is is %i6ed and noo*ies %!ood in a'ain3 'et read$ %or t#e
ne6t 5o6in' *e(ase its 'oin' to #appen a'ain. +ortnate!$3 ea(# time t#e$ 5o6 s3 it #as
!ess and !ess impa(t on Bit(oin *e(ase t#e$ #ave !ess and !ess vo!me to disrpt. T#ats t#e
'ood ne&s. 5o6 isnt 'oin' an$&#ere3 I dont t#in). 70=89,:
SM: 1ere 'oin' to smmon 5eor'e Bs# and sa$ " 5o6 me on(e3 s#ame on $o. 5o6 me
t&i(e... &e!! $o (ant 5o6 me a'ain... (!a'#ter) 70=80/:
AA: Apparent!$3 $o (an 5o6 peop!e at !east %ive times *e(ase t#ose &#o %ai! to !earn t#e
!essons o% #istor$ &i!! *e ta'#t t#em a'ain and a'ain3 nti! t#e$ do. 70=82,:
ABL: T#ats rea!!$ it. Its t#e !essons o% #istor$ and #o& &e #ave to !earn a!! t#ese t#in's.
Eo !oo) at a sitation !i)e &e #ave &it# Mt5o6 and in t#e norma! %inan(ia! environment3 i%
t#ats &#ere &e &ere3 t#is &o!d #ave *een a (omp!ete (risis t#at &o!dnt #ave rea!!$ #ad a
'ood reso!tion or it mi'#t #ave res!ted in a *ai!-ot nder some (ir(mstan(es. Here3 t#e
pro*!em 4st s#a)es itse!% ot. Its s(ar$ %or a !itt!e *it *t3 $ore ri'#t3 I *are!$ even
re'istered t#is one. Last $ear3 &#en 5o6 #ad a pro*!em3 I &as !e'itimate!$ (on(erned and
t#is time3 it 4st doesnt matter t#at m(#. 70-8..:
AA: I% $o !oo) at t#e pri(e %!(tation and a'ain3 instead o% ta)in' t#e idiot 4orna!ist
perspe(tive o% !oo)in' at t#e !o&est vo!me e6(#an'e as an ar*iter o% pri(e3 i% $o do pri(e
dis(over$ on t#e avera'e vo!me &ei'#ted avera'e a(ross e6(#an'es3 5o6 (ased a s#ort
pani( &#i(# t#en re(overed and no& &ere *e!o& &#ere &e &ere a &ee) and a #a!% a'o *t
t#e pri(e #as sta*i!i<ed a'ain in t#e mid-?//s and I &o!d e6pe(t3 'rada!!$3 as t#e ot#er
e6(#an'es (ome *a() on!ine and start pro(essin' &it#dra&a!s3 t#e stor$ &i!! *e on(e a'ain
t#e same3 despite a!! t#e na$sa$ers3 despite a!! t#e pro(!amations o% t#e doom and imminent
deat# and a!read$ #appened deat# o% Bit(oin3 some#o& Bit(oin srvives. As Bit(oin
srvives3 peop!e trn arond and !oo) at t#at and 'o " H#3 ma$*e &e need to !oo) into t#is
Bit(oin t#in' *e(ase it seems to srvive a !ot. Ma$*e t#e$ #ave t#e ri'#t messa'e. It is t#e
#one$*ad'er o% mone$. 70O8.=:
ABL: One o% t#e interestin' mar)et-*ased so!tions t#at I sa& (ome ot in t#e !ast (op!e o%
da$s to dea! &it# t#is trama at Mt5o6 is3 t#e pri(e o% Bit(oin #as p!mmeted t#ere. Its
p!mmeted at Mt5o6 spe(i%i(a!!$ and t#ats interestin' *e(ase a (op!e o% &ee)s a'o3 a
(op!e o% mont#s a'o3 Mt5o6 %or t#e !on'est time #as maintained a prett$ s*stantia!
premim 4st *e(ase its *een so di%%i(!t to 'et do!!ars ot. T#ere%ore3 t#e do!!ars are &ort#
!ess &#i(# means $o #ave to pa$ more *t no& t#at sitation #as %!ipped. Its interestin' to
see3 I *e!ieve #is name is @os# @ones (!et me do*!e (#e() t#at)3 $ea#3 @os# @ones3 &#o is t#e
%onder o% Dream#ost3 t#e Los An'e!es Bit(oin meet-p3 C#n)#ost and a *n(# o% ot#er
t#in's3 *asi(a!!$3 reprposed one o% #is e6(#an'e &e*sites3 t#at #e apparent!$ #ad *een
&or)in' on %or a &#i!e3 to *e a Bit(oin to Bit(oin e6(#an'e3 e6(ept in t#is (ase3 its Mt5o6
Bit(oin to rea! Bit(oin. Eo (an trans%er Bit(oin &it#in t#e Mt5o6 s$stem3 $o 4st (ant
trans%er it ot o% t#e Mt5o6 s$stem. Feop!e &#o &ant to 'et (#eap Bit(oin and *e!ieve t#at
Mt5o6 isnt inso!vent and it &i!! 'et so!ved3 (an *$ Bit(oin %or I02/ ri'#t no&3 (ompared to
I?2/ on ot#er e6(#an'es. 72/80/:
SM: T#ats *ri!!iant. 72/80,:
ABL: T#e$ sti!! #ave to *ear t#at ris). A*so!te!$3 I !ove t#is *e(ase it !ets peop!e s&ap ot
o% positions t#at t#e$re s(ared a*ot and t#e$re #app$ a*ot it *e(ase " He$3 I 'ot some o%
m$ mone$ *a() and no& I dont #ave to &orr$ a*ot it an$more and spe(!ators 'et to 'o in
and do t#is. 1#at do $o '$s t#in) a*ot t#is> 72/829:
SM: Eea#3 its a 'reat &a$ to a(ta!!$... it a!most reminds me o% one o% t#ose mar)ets &#ere
peop!e *et on &#os 'oin' to &in e!e(tions and t#in's !i)e t#at3 or t#e ot(ome o% di%%erent
events and t#e pri(e o% a 5o6 Bit(oin rea!!$ re%!e(ts peop!es (on%iden(e t#at t#e$re
eventa!!$ 'oin' to (ome t#ro'#. I 4st t#in) its rea!!$ an interestin' me(#anism o% mar)et-
*ased pri(e dis(over$. 72,8,0:
AA: T#e *ottom !ine is t#at Kpri(e p!mmets is 4st anot#er &a$ o% sa$in' K'reat dis(ont.
I% $o #ave (on%iden(e t#at t#is &i!!3 even i% $o #ave some (on%iden(e3 t#at t#is &i!!
eventa!!$ reso!ve itse!%3 t#en t#at dis(ont represents t#e ris) premim *ased on 5o6
Bit(oin3 as a ris) dis(ont t#at ot#ers are &i!!in' to o%%er in order to 'et ot o% t#at sitation3
t#ose !ess (on%ident. I !ove t#e %a(t t#at not on!$... t#e ori'ina! idea is *ri!!iant in #avin' one
*$er &i!!in' to trade is interestin' eno'# *t (reatin' a %!! e6(#an'e t#at a!!o&s ot#ers to
ta)e t#e same ris) premim de(ision and 'et dis(onted Bit(oin3 t#ere*$ (onvertin' t#at ris)
eventa!!$ into Aite an e6traordinar$ re&ard. I% t#is does reso!ve itse!% and t#ese peop!e are
a*!e to (and #onest!$3 I t#in) it &i!! and I pro*a*!$ s#o!d *e tradin' a *it o% t#is)... i% t#is
does reso!ve itse!%3 t#ese peop!e are 'oin' to 'et a tremendos dis(ont on t#eir Bit(oin and
t#at ris) is 'oin' to trans!ate into a ver$ ni(e re&ard. 1#at it s#o&s3 amon' ot#er t#in's3 is
%n'i*i!it$ *e(ase t#ese Bit(oins are %n'i*!e3 $o (an essentia!!$... &#en 5o6 (reates t&o
di%%erent (!asses o% Bit(oin3 one &#i(# #as a ris) dis(ont and one " t#e open *!o()(#ain
traded one &#i(# doesnt #ave a ris) dis(ont3 t#en t#ose *e(ome t&o di%%erent asset (!asses
t#at peop!e (an trade *et&een3 &it# di%%erent ris) (#ara(teristi(s. T#ats *ri!!iantQ 72.80?:
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
!RED"S:
T#an)s %or !istenin' to Episode -2 o% Lets Ta!) Bit(oin.
KT#e Fro*!em &it# Mt5o6 &as prod(ed *$ Adam B. Levine and %eatred Andreas
M. Antonopo!os3 Step#anie Mrp#$ and Adam B. Levine
Msi( &as provided %or t#is episode *$ @ared B*ens and 5enera! +<<
Restions or (omments> Emai! adamS!etsta!)*it(oin.(om.
7298,/:
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
ABL: Lets Ta!) Bit(oin is trans%ormin' into t#e LTB Net&or) over t#e ne6t %e& mont#s
and3 as part o% t#at transition3 &ere addin' man$ ne& s#o&s to (over t#e &or!d o%
(r$pto(rren($ %rom a di%%erent perspe(tive or a ver$ spe(i%i( part o% t#is 'ro&in' and vi*rant
(ommnit$. +rom Fa! Bo$ers KMad Mone$ Ma(#ine3 to KBit(oins And 5rav$3 to KT#e
Se6 T S(ien(e Hor " $o!! 'et t#em a!! on t#e same LTB pod(ast %eed as a!&a$s3 &it#ot
(#an'in' a t#in'. T#at said3 &eve e6panded %rom t&o #ors per &ee) to si6 #ors per &ee)
and ne6t mont#3 it &i!! *e even more. Eo (an no& s*s(ri*e to 4st $or %avorites at
&&&.!etsta!)*it(oin.(om. C!i() t#e s#o&s *tton %or a!! %!! s*s(ription options. O%
(orse3 p!ease rate t#e s#o&s. Ho&ever $o !isten3 &#et#er on Stit(#er3 iTnes or some&#ere
e!se entire!$3 $or revie&s #e!p ot#ers %ind or s#o&. T#an)s %or !istenin'. 72982-: