let's talk bitcoin, episode 73, "reset your expectations"

8/12/2019 Let's Talk Bitcoin, episode 73, "Reset Your Expectations"

http://slidepdf.com/reader/full/lets-talk-bitcoin-episode-73-reset-your-expectations 1/26

LET’S TALK BITCOINEpisode 73 – Reset Your Expectations

Participants:

Adam B. Levine (ABL) – HostAndreas M. Antonopo!os (AA) – Co"#ostStep#anie Mrp#$ (SM) – Co"#ostAmir Taa%i (AT) – Bit&oin deve!oper' &ore &o!!aorator 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 Let’s Ta!% Bit&oin' a t5i&e 5ee%!$

s#o5 aot t#e ideas peop!e and pro6e&ts i!din7 t#e di7ita! e&onom$ and t#e 4tre o4mone$. 8isit s at 555.!etsta!%it&oin.&om 4or or dai!$ 7est !o7' a!! or past episodesand' o4 &orse' tippin7 addresses. 90:/3;

M$ name is Adam B. Levine and toda$ 5e’re 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 att#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;

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ABL: I4 t#ere’s one t#in7 t#at is tre aot Bit&oin' or tre aot &r$pto&rren&$' roadspea%in7' is t#at t#in7s move in&redi!$ 4ast. I 5as t#in%in7 aot t#is re&ent!$ and I rea!i@edt#at t#e reason 5#$ t#is is movin7 as 4ast as it is is e&ase 5e rea!!$ #ave #ad a!most no4inan&ia! innovation in aot 4i4t$ or sit$ $ears. T#at’s een e&ase ever$ 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 stopit 4or t#e eistin7 po5er str&tre #ave a!5a$s een so 7reat t#at 5e 7et !itt!e snea%s t#ro7#'!i%e a deit &ard – *#oo"#oo> Bt !timate!$' 5e’re ta!%in7 aot t#e same s$stems' t#e same&ompanies. I mean' 5#at ot#er indstr$ #as t#at No5 5e #ave a s$stem 5#ere $o don’t#ave t#at pro!em' 5#ere t#e 4ai! states aren’t re!iant on &entra! points o4 4ai!re and areinstead re!iant on eit#er road inva!idations o4 te&#no!o7$' or mass eods 4rom t#ese ne5te&#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 aot4i4t$ or sit$ $ears o4 te&#no!o7i&a! and 4inan&ia! innovation t#at s#o!d e #appenin7 prett$

http://www.letstalkbitcoin.com/





m&# a!! at on&e e&ase as it’s een ott!ed p' sdden!$ t#e &or% is o44 and t#e pressre &an e re!eased. T#at’s %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: ea#. 9/:/2;

AA: *#at a 5i!d ride. 9/:/D;

ABL: Serios!$. 9/:/;

SM: Ho!$ s#it> 9/:/;

ABL: *e’re re&ordin7 t#is and I t#in% 5e 6st re!eased Episode and t#at doesn’t in&!det#e ons &ontent t#at 5e’ve re!eased' t#at doesn’t in&!de t#e deates t#at 5e’ve #osted' t#at

doesn’t in&!de t#e... t#e amont o4 t#in7s t#at #ave &#an7ed in t#is amont o4 time is &ra@$and I 5anted to s#are some perspe&tive. *#en I started Let’s Ta!% Bit&oin' I #ad eennemp!o$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#at’s 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 I’ve a!5a$s een interested in' and t#at m$ 5i4e #as een ver$ interestedin' 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 aot 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 5asrea!!$ !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:/;

Initia!!$' I started a di44erent s#o5 esides Let’s Ta!% Bit&oin and on t#e !ast episode o4 t#ats#o5' T#e ai!$ Bit&oin S#o5' 5e #ad Andreas on as a 7est and #e des&ried' in ver$ 4ier$4as#ion' 5#$ MtGo 5as &rimina!!$ in&ompetent and 5#$ t#at 5as proa!$ never 7oin7 to&#an7e. Step#anie' 5e ro7#t #er in initia!!$ e&ase I 5anted to #ave someone 5#o 5asnot me doin7 t#e introd&tion to t#e s#o5. *e initia!!$ &ontra&ted 5it# Step#anie to do voi&e5or% 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!iert$ 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$se!4 on @ero d7et. I &a!!ed it m$ =eats o4 Stren7t#’. T#e idea 5ast#at $o do an impossi!e t#in7' in an impossi!e time4rame' 5it# aso!te!$ @ero d7et andno ta!ent 5#atsoever' and t#en peop!e t#in% t#at $o’re ama@in7. *e did t#is and m$ timin75as 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 /0 and' at t#e end o4 t#e pri&e !e' I &o!!apsed. (La7#ter)92:/J;

SM: o de4!ated. 92:31;

ABL: T5o da$s !ater' t#e pri&e &o!!apsed. Aso!te!$' and I too% a 5ee% o44 and 6st s!ept e&ase I #adn’t een s!eepin7. 92:3;



AA: I rememer it 4rom m$ perspe&tive' 5#en $o &ame to me and 5e #ad a !on7&onversation aot #o5 t#e previos s#o5 #ad &o!!apsed and $o 5ere ite de6e&ted' at t#etime' and 4ee!in7 t#at $o didn’t #ave t#e ener7$ to reoot' and $o’d &reated epe&tations 4ora dai!$ s#o5 and &o!d $o rea!!$ p!! o44 a 5ee%!$' and #o5 $o 5o!d 4ind #osts. Moreimportant!$' #o5 peop!e 5eren’t appre&iatin7 t#e va!e o4 #avin7 an adien&e and #avin7

#i7# a!it$ prod&tion t 5ere !oo%in7 4or ite a it o4 mone$ in order to e invo!ved int#e s#o5. I rememer tr$in7 to persade $o t#at t#is 5as t#e 7reatest !essin7 $o’ve everre&eived e&ase ot o4 t#at 5re&%a7e' $o #ad an opportnit$ to 5ipe t#e s!ate &!ean' set$or o5n terms and start a7ain. *e de&ided to do 6st one s#o5' o44 t#e &44 t#at =rida$ andt#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#oeni moment – ot o4 t#e as#es o4 t#e previos s#o5' 5e &reatedsomet#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$m&# a team e44ort. T#is 4ee!s !i%e I’m 6st sittin7 #ere pattin7 s on t#e a&%. T#at’s not m$

intention. T#e point is t#at t#e perspe&tive t#at $o 7ain 4rom ein7 invo!ved in a pro6e&t !i%et#is' on t#e one #and it’s not a one 5a$ t#in7 – 5e’re 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 5e’ve made and t#e peop!e 5#o #ave rea&#ed ot to s and t#e peop!e 5e’ve met. <ea!!$' 5e 5ere ta!%in7 aot&on4eren&es ear!ier – t#at’s 5#$ 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. 9:/2;

ABL: I 4ee! !i%e Let’s Ta!% Bit&oin #as 6st een one series o4 tippin7 points a4ter anot#er e&ase rea!!$' 5#at’s #appened is t#at 5e’ve #it&#ed or 5a7on to Bit&oin. *#en Bit&oin7oes p in pri&e' or adien&e 7oes p. *#en Bit&oin 7oes do5n in pri&e' or adien&e sta$s

pt. T#ese peop!e' on&e t#e$ 7et !ooped in and t#e$ nderstand 5#at’s 7oin7 on' t#en t#e$don’t !eave. T#at’s rea!!$ di44erent I t#in%. 9:23;

SM: I t#in%' as 5e 7o 4or5ard' 5e’ve 7ot to e &are4!. T#in7s are movin7 so 4ast in t#eBit&oin 5or!d' t#at 5e’ve 7ot to e &are4! to &ommni&ate in a 5a$ t#at peop!e &annderstand' even i4 t#e$’re ne5 and a!so sta$ on t#e &ttin7 ed7e 4or t#ose 5#o are a!read$ int#e !oop aot Bit&oin and a5are o4 5#at’s 7oin7 on. I t#in% 5e’ve done a prett$ de&ent 6oo4 t#at so 4ar. Ma$e 5e &o!d e a !itt!e more ne5ie 4riend!$ t t#at’s OK' 5e’re 5or%in7

on it a!! t#e time. 9:0;

ABL: I tota!!$ disa7ree 5it# t#at. I 4ee! !i%e 5e #ave not done a ne5ie 4riend!$ s#o5 at a!!.I even !istened to or re&ent ne5ie 4riend!$ episode and I don’t 4ee! !i%e it’s t#at. T#e &ore

pro!em is t#at 5#en I started Let’s 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#eni&#e – ne5 sers 6st &omin7 in #ad no options' @ero options' it 5as terri!e. No5 t#e$ #avet#in7s !i%e 555.tr$BTC.&om and t#ere are so!tions ot t#ere t#at aren’t adio pod&asts tt#at a&ta!!$ &an #e!p 5a!% $o t#ro7# t#at pro&ess. T#e &onversation I 4ee! !i%e t#at 5e’ve

een #avin7 is t#is more #i7#er !eve! &onversation " is t#is &onversation t#at is ne&essar$ to#ave' simp!$ e&ase it’s t#e important one ri7#t no5. It’s not a ne5 ser 4riend!$

&onversation e&ase 5e’re ta!%in7 5it# t#ese &on&epts on a #i7# !eve!' 5e’re ta!%in7 aot...

http://www.trybtc.com/

http://www.trybtc.com/



peop!e are str77!in7 to nderstand 5#at Bit&oin means to t#em no5 and 5e’re 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$ &an’t 4o!!o5 t#e &onversation e&ase t#e$ are too ne5 I t#in% t#e$

&an. 9:03;

AA: Trst t#e adien&e. T#e$ !earn aot Bit&oin and t#en t#e$ se t#is s#o5 to in&reaset#eir !eve! o4 %no5!ed7e and &at&# p. I t#in% t#at’s 5#$ $o see ne5 !isteners &omin7 in and&at&#in7 one episode and t#en startin7 4rom t#e ver$ e7innin7 and !istenin7 to sit$ ei7#tepisodes a&% to a&%. 9:1;

ABL: T#at’s &omp!ete!$ ri7#t. 9:1J;

AA: *e’ve seen t#is pattern repeat a7ain and a7ain. I don’t t#in% t#at’s a pro!em.Essentia!!$' $o’ve &reated a !irar$ o4 &ontent t#at peop!e &an &at&# p 5it# t !et’s ta!%

more aot t#e a&&e!eratin7 natre o4 t#is p#enomenon. I mean' t#e !ast si mont#s #ave7one past in a !r t' at t#e same time' I t#in% t#ere’s t#is rea!!$ interestin7 di&#otom$5#i&# is t#at it’s ver$ eas$ 4or s' ein7 in t#is !e and ein7 &a7#t p in a!! o4 t#is4or5ard motion' to assme t#at Bit&oin #as arrived' to assme t#at essentia!!$' a!! o4 t#e i7t#in7s #ave a!read$ #appened' or t#at t#e pri&e #as rea!!$ s#ot p to #i7# !eve!s' or t#at no5Bit&oin is epensive t#e opportnities #ave een missed. I t#in% t#at is so 5ron7. 9:D;

SM: ea#. 9:D;

AA: I t#in%' ri7#t no5' peop!e are pantin7 4rom t#e 7reat as&ent p t#e montain and I’m!oo%in7 p and I see Everest a#ead o4 s. *e #aven’t even &rossed t#e 4oot#i!!s. T#is is sosma!!. I rememer at t#e San ,ose &on4eren&e' I 5as rantin7 and ravin7 to one o4 m$ 4riendsaot #o5 ama@in7 Bit&oin 5as' and #o5 ama@in7 t#is &on4eren&e 5as' and #o5 t#ere’s a!!t#is 7!oa! re&o7nition. Ima7ine' at t#at time' a!! t#is 7!oa! re&o7nition aot Bit&oin and#o5 5e’re 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 aota7ri&!tra! eipment 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 orsat t#e moment. T#ere are spe&ia!i@ed dentist &on4eren&es t#at #ave a #ndred times t#eadien&e t#at 5e #ave at even t#e i77est Bit&oin &on4eren&es. Sti!!' JJ.JJJ 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$' $o 7ospea% to some o4 t#e most &ttin7 ed7e' 4or5ard t#in%in7 te&#no!o7ists and nine ot o4 ten o4t#em #aven’t even #eard aot Bit&oin. I4 t#e$ #ave' t#e$ t#in% it’s some %ind o4 4nn$mone$ t#e$ don’t nderstand 5#at it is and t#e imp!i&ations it #as. T#e 5eird t#in7 #ere ist#at 5#i!e 5e’re 7oin7 at t#is rea%ne&% speed and it 4ee!s !i%e so man$ t#in7s #ave#appened' 5e’ve are!$ to&#ed t#e &ons&iosness o4 t#e 5or!d. *#at t#at te!!s me is O# m$7od> /012 is 7oin7 to e aso!te!$ rea%ne&%. I mean' #o!d on to $or #ats> Hman ein7s#ave a ver$ #ard time intitive!$ nderstandin7 eponentia! 7ro5t# &rves. It’s somet#in7t#at <a$ Kr@5ei! 5rote aot in T#e Sin7!arit$ is Near. It’s a ver$ interestin7 oo% i4 $o5ant to read it t 5e tr$ to etrapo!ate and 5e &an on!$ etrapo!ate intitive!$ on a !inears&a!e. *#en $o’re doin7 t#at on an eponentia! &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 #aven’t even #it t#e



e!o5 $et. I4 t#is is t#e rate o4 7ro5t# in rea%ne&% speed' 5e’ve 7ot at t#is point at some point 5e’re 7oin7 to #ave or AOL moment. At some point' 5e’re 7oin7 to #ave a &risis pre&ipitatin7 event t#at is 7oin7 to s#i4t t#e a!an&e dramati&a!!$. T#at tippin7 point #as not#appened and 5#en t#at tippin7 point #appens' 5#at 5e’re seein7 toda$ is 7oin7 to e sma!!

potatoes &ompared to 5#ere Bit&oin &o!d 7o. No5' don’t dis&ont t#e possii!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 don’t t#in%t#ere are an$ eterna! 4a&tors t#at &an rin7 Bit&oin do5n an$more. *e’re past t#at #mp.*e’re too i7' 5e’re too 7!oa!' and 5e’re too 5idespread to s#t do5n 4rom t#e otside. *e&an on!$ do it 4rom t#e inside no5. Bit&oin &an on!$ &ommit si&ide and t#at is a possii!it$over t#e net t#ree $ears. 911:DJ;

ABL: T#at’s t#e =a&eoo% parado' ri7#t 91/:01;

AA: It’s a diminis#in7 possii!it$ and rea!!$' 5#at I see is t#e potentia! 4or s to ma%e it as4ar' 6st simp!$ srvive at t#is rea%ne&% speed nti! 5e #it t#e e!o5 and t#en ama@in7t#in7s 5i!! #appen. T#en' 5e &#an7e t#e 5or!d. 91/:1D;

ABL: T#is is tre aot an$ net5or% re!iant' ri7#t I4 $o’re ta!%in7 aot =a&eoo%'essentia!!$' t#e$’re a!so tr$in7 to not rea% t#emse!ves 5#i!e a!so tr$in7 to ma%e it so t#att#e$’re 7ood 4or t#e 4tre' so t#at t#e$ &an #ave mode!s to moneti@e' and a!! t#ese variost#in7s. It’s t#e same t#in7 5it# Bit&oin. !timate!$' M$Spa&e isn’t 7oin7 to destro$=a&eoo%' t =a&eoo% &o!d destro$ =a&eoo%. Basi&a!!$' is t#at 5#at $o’re sa$in7 #ere91/:3D;

AA: es t t#ere’s one i7 di44eren&e and I t#in% t#e i7 di44eren&e t#at most peop!e#aven’t rea!i@ed is t#e$ !oo% at para!!e! mode!s !i%e' 4or eamp!e t#e dep!o$ment o4 t#einternet and t#at reired some serios in4rastr&tre #eav$ !i4tin7' 5#i&# 5e don’t need inBit&oin. o !oo% at =a&eoo%. =or =a&eoo% to sstain its 7ro5t#' it #ad to deve!op anentire!$ 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!oa! net5or%. *e don’t #ave an$ o4 t#at.o 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' $ $in7 some minin7 ri7si4 t#e$ &an and essentia!!$' 5#at’s rea!!$ interestin7 aot t#is is t#at t#ere are no &onstraintsto t#e s&a!e o4 Bit&oin in terms o4 in4rastr&tre e&ase adoption and in4rastr&tre #appen att#e same time. *e don’t #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 $o ta%e it to its etreme' Bit&oin rea!!$epresses t#e &ore net5or% e44e&t &on&ept o4 Bo Met&a!4e 5#o 4irst ta!%ed aot it in 1J2'

5#i&# is t#e va!e o4 t#e net5or% in&reases eponentia!!$ 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#enet5or%' t#e ve!o&it$ o4 t#e net5or% – a!! o4 t#ose t#in7s rea!!$ do in&rease eponentia!!$5it# t#e addition o4 ea&# node. I t#in% in t#e net $ear' t#e most important metri&' t#e on!$metri& t#at matters is ser adoption and so 5e don’t #ave man$ o4 t#e &onstraints. In 4a&t' i45e 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!!$ doesn’t #ave too man$ &apa&it$ &onstraints. *#at 5e’re 7oin7 to see is a !eve! o4eponentia! 7ro5t# t#at $o ver$ rare!$ see in te&#no!o7ies and t#en' add to t#at t#e ot#erside 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#at’s 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 o4epe&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&oin’s epensive at 1'000' 5e’re rea&#in7 or &apa&it$ !imits 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!eand it’s simp!$ a&&e!eratin7 !i%e a 4rei7#t train and an$od$ 5#o stands in 4ront o4 it' 5i!! esis#ed !i%e a 7. 91D:3;

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ADVERT:

-rse.io is a 7i4t e&#an7e t#at !ets $o 7et it&oins at on!$ a premim and 5it# a &redit

&ard. Ho5 does it 5or% o pr&#ase items 4or ot#er -rse.io memers 4rom t#eir Ama@on5is# !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!! $or 4riends. Get e&!sivea&&ess toda$ at 555.-rse.io. 91:/J;

ADVERT:

Eas$NS is t#e S5iss Arm$ %ni4e 4or $or domain names. He!pin7 meet t#eir &stomers’individa! needs sin&e 1JJ. Eas$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 13 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;

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ABL: *#enever 5e’re ta!%in7 aot t#e pri&e' t#e di44i&!t t#in7 is to tr$ and stret&# ot t#etime4rame. I t#in%' !timate!$' t#at’s 5#at $o’re doin7 #ere Andreas' ri7#t o’re sa$in7over t#e net sa$' !on7 time in Bit&oin !et’s sa$ a $ear' t#at’s 5#at $o’re ta!%in7 aot.

91:3/;

AA: ea#. -eop!e ta!% aot a ten $ear #ori@on 4or Bit&oin' 5#i&# I t#in% is !di&ros. I ptan pper !imit on Bit&oin o4 aot t#ree $ears. -rett$ m&# ever$t#in7 important in Bit&oinis 7oin7 to p!a$ ot in t#e net t#ree $ears. Over time' 5#at I’m doin7 is I’m &ompressin7t#at time4rame. -revios!$' 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 is7oin7 to &ompress do5n to a $ear and a #a!4 or t5o. <ea!!$' I t#in% peop!e need to reset t#eirepe&tations and t#eir per&eption o4 5#ere Bit&oin is 7oin7 and #o5 4ast it’s 7oin7. 91:03;

ABL: *#ere is Bit&oin 7oin7 and #o5 4ast is it 7oin7 t#ere Let’s reset peop!e’s

epe&tations. I 4ee! !i%e I’m prett$ 4or5ard !oo%in7 on t#is Andreas' t I’m 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

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doin7 t#is as a #ost t#in7 e&ase $o ver$ &!ear!$ #ave it in $or #ead 5#ere $o t#in% 5e’re7oin7. I’m sti!! more n&!ear on #o5 !on7 it ta%es s to 7et t#ere. I a7ree t#at t#in7s area&&e!eratin7 rea!!$ 4ast t I mean 5#at do $o t#in% 5e’re 7oin7 to see over t#is t#ree $eartime #ori@on $o’re ta!%in7 aot. 91:/J;

AA: I t#in% 5e’re in a nie position e&ase o4 t#e 5or% 5e do' 5e 7et a !ot o4 peop!e5#o &ome to ta!% to s aot t#eir start"ps 5e!! e4ore even t#e p!annin7 sta7e and as% s 4oror opinion' and as% 4or or #e!p and te&#ni&a! advi&e. *e &an see some o4 t#e t#in7s t#at arein t#e pipe!ine. *#at I’m seein7 is t#is &omp!ete!$ ne5 5ave o4 &ompanies t#at are &omin7in t#at are ps#in7 adoption in t#ree di44erent 5a$s. T#e 4irst one is rin7in7 in matreoperationa! and mana7ement teams' a 5#o!e ne5 spirit. T#e a7e o4 -H- M$SPL deve!opers5#o t#ro5 to7et#er an app!i&ation and tr$ to i!d a 7!oa! e&#an7e on top o4 t#at – t#at erais tr!$ over. -eop!e 5#o are &omin7 into t#is siness no5' &ome 5it# deep te&#no!o7i&a!epertise 5it# deep mana7ement and operationa! epertise. T#at’s 7oin7 to &#an7e t#eve!o&it$ o4 Bit&oin. T#e se&ond one is t#at 5e’re seein7 t#e deve!opment o4 t#e deve!opin75or!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 adoption5#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!oa! !eve!. I4 $o’re inAr7entina and $o #ave Bit&oin' $o &an start e#avin7 !i%e a 7!oa!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 entire7!oe’s 4inan&ia!' &apita!' deve!opment eperien&e' $or o5n deve!opers' &#eap !aor 5it#in$or o5n &ontr$ and &ompete #ead to #ead 5it# ever$ ot#er &ompan$ in t#e Bit&oine&os$stem. T#at n!eas#es a torrent o4 innovation at t#e ed7es. T#e t#ird part o4 t#is is t#isne5 5ave o4 Bit&oin innovation t#at is asi&a!!$ s#i4tin7 t#e 4o&s 4rom Bit&oin &rren&$ andena!in7 e&#an7es' pa$ment net5or%s et& – sort o4 t#e perip#eries o4 Bit&oin ena!in7 someo4 t#e on"ramps and speedin7 p adoption. As t#at is p!a$in7 ot' no5 5e’re seein7 t#e 4o&ss5it&# to t#e !a$ers aove – to imp!ementin7 a!! o4 t#e ot#er app!i&ations e$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!!erapps. Crren&$ 5as 6st t#e 4irst s#ot. I4 5e mana7e to pt a pin pri&% into t#e remittan&emar%et' somet#in7 t#at A!an Fa4a#i o4 FipFap is doin7 5it# a passion and a !eve! o4 prin&ip!et#at I aso!te!$ admire. -t a pin pri&% into t#at – &reate a sin7!e !itt!e 4!o5 and 5at&# t#edam rea% as D00n o4 pent p &apita! por ot o4 t#e deve!oped 5or!d into 4e!!in7 t#edeve!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!oa! so&ia! &#an7e' t#ose are t#e app!i&ations t#at are ein7 deve!opedno5. T#in7s !i%e Master&oin and Co!ored&oins and Nt' t#e proto&o! !a$ers aove t#at ena!e

not 6st ne5 innovation t entire ne5 t$pes o4 innovation and entire ne5 indstries to ede&entra!i@ed and disrpted 5it# Bit&oin. *e’ve moved past pa$ment and a!! o4 t#at is 7oin7to #appen in /012. I didn’t epe&t it to #appen t#is 4ast. *e’ve een ta!%in7 aot t#e !a$ersaove and no5 t#e$’re #appenin7 and 5e &an see t#is &omin7 do5n t#e pipe!ine. T#ose t#ree4or&es to7et#er are simp!$ a&&e!eratin7 ever$t#in7. T#e ot#er t#in7 to rea!i@e is t#e 5ave o4adoption trai!s t#ree to 4or mont#s e#ind t#e media rst' so C#ina 5asn’t t#e s$mptom o41'000' it 5as t#e &ase. *e #aven’t seen t#e s$mptom o4 1'000 Bit&oin $et. *e &reatedt#is #7e media !e 4rom 1'000 Bit&oin – 5ait nti! =erar$ e&ase a!! o4 t#at is 7oin7to trn into ser adoption. A!! o4 t#e peop!e 5#o #eard aot it in O&toer and Novemerand e&emer are 7oin7 to 6mp onto t#e and5a7on in ,anar$ and =erar$. T#ese 5aves4eed on ea&# ot#er e&ase t#at 5ave o4 adoption rin7s its o5n pri&e in&rease 5#i&# &reates

t#e net media !e 5#i&#' t#ree or 4or mont#s do5n t#e !ine' &reates t#e net 5ave o4adoption. T#e &$&!e is 7ettin7 s#orter $ t#e time. *#at $o #ave is a!! o4 t#ese 4eeda&%



!oops t#at are rs#in7 into Bit&oin e&ase 5#$ As $o said' 1JD0’s te&#no!o7$ andsdden!$ 5e #ave t#e opportnit$ to move sevent$ $ears 4or5ard. Sit$ $ears 4or5ard interms o4 4inan&ia! innovation and to do it 5it#ot permission at t#e ed7es o4 t#e net5or%.*e’ve no5 rea&#ed t#e point 5#ere peop!e are e7innin7 to do t#at and t#eir e44orts are noteven visi!e $et. *#en t#e$ e&ome visi!e a 5#o!e di44erent a!! 7ame. 9//:D;

ABL: Ta!%in7 aot trends a7ain 4or a se&ond. At t#is &on4eren&e' I t#in% I met more peop!e5#o are 4rom otside se&rit$' &ons!tan&ies or &ompanies' 4!! servi&e' 5#at #ave $o t#anrea!!$ at an$ ot#er previos &on4eren&e. A !ot o4 times it’s een t#e !iertarian side and t#ent#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: ea#. <emittan&es are possi!$ 6st t#e 4irst part and t#en $o #ave t#e 5#o!eotsor&in7' o44"s#orin7' servi&es' ta!ent t#at $o &an rin7 in. I t#in% t#e i7 event in /0125i!! e India and 5#en India 5a%es p' t#e$ #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$ #aven’teven 5o%en p to Bit&oin $et. 9/3:23;

SM: ea#' I 5as seein7 a !ot o4 t#e !a$ers on top at t#is &on4eren&e. I sa5 a !ot o4 ta!%.-eop!e are e&ited aot &r$pto"eities' Master&oin' -rotoS#ares and t#at %ind o4 t#in7.T#ere 5as some s&epti&ism aot t#ose t5o t it 5as ein7 ta!%ed aot a !ot. 9/3:DJ;

ABL: Cr$pto&rren&ies – $o don’t #ave t#e ai!it$ to stop it t t#en a7ain' t#ere is a!so nota &entra! &ompan$ a&%in7 it t somet#in7 !i%e -rotoS#ares' Invi&ts Innovations is asedot o4 8ir7inia. T#at’s not a !i&ensed... t#e$’re a &orporation t t#e$ #aven’t done an$ o4 t#ede di!i7en&e reirements to do an$ sort o4 eit$ o44erin7 in t#e 5a$ t#at -rotoS#ares &o!d

e interpreted nder &ertain interpretations. 9/2:/3;

AA: I’m #earin7 4rom a!! o4 t#e &ompanies t#at are not doin7 t#in7s !i%e Master&oin andCo!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$ers aove it t#at !evera7es t#at proto&o! !a$er. T#at’s 7oin7 to 4e! t#e deve!opment o4 t#e proto&o! !a$er even 4aster. It’s7oin7 to e an e&itin7 $ear. 9/2:22;

ABL: ea#' 5it#ot a dot /012' and /01D – t#at’s 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 nited States e&ase' to a &ertain etent' 5e #ave ris%doin7 a s#o5 !i%e t#is in t#e nited States. *e #ave a &orporation in Ca!i4ornia t#at a!! o4 t#e&osts rn t#ro7#' and pa$ taes' and tr$ to &omp!$ t' at a &ertain point' 8C is oso!ete.o don’t need to e #ere an$more a4ter $o’ve een in Bit&oin 4or a 5#i!e. 9/D:11;

AA: Aso!te!$. o &an 7ro5 or7ani&a!!$. I 5or% as a te&#ni&a! advisor at a oard !eve! 4ora nmer 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!. o do not need to 7ive part o4 $or &ontro! in eit$ a5a$to a ventre &apita! 4irm t#at doesn’t nderstand 5#at $o’re doin7 and 6st #as mone$ tot#ro5 at $o e&ase $o &an ot# 7ro5 or7ani&a!!$ $ ridin7 t#e !o7arit#mi& dra7on o4Bit&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$' epress t#e vision to t#em andt#e$ 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&&esst#at $o need. 8Cs are a!read$ oso!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$ rin7to t#e ta!e' 5#i&# is a rea!!$ important t#in7' is epertise. Epertise in operations 5it#inBit&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&an’t do !inear 7ro5t# and $o &an’t do !o&a! dep!o$ment. o are 7!oa! 4rom da$ one andi4 $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 $o’re 7oin7 to die' not 4rom starvation o44nds t 4rom ein7 so over5#e!med t#at $o &an’t de!iver on t#e operationa! promises and$or sers aandon $o 4or someone e!se 5#o &an do operations etter. Ton$ Ga!!ippi' 4romBit-a$ 5as ta!%in7 aot 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 5e’re 7oin7 to #ave' and possi!$one o4 t#e most e&itin7 opportnities in Bit&oin' 5i!! e sor&in7 – resor&es' #manresor&es. *e need to #ire #ndreds o4 t#osands o4 peop!e into Bit&oin &ompanies over t#enet $ear and train t#em in Bit&oin and !evera7e t#eir s%i!!s. It’s no5 m&# roader t#an I

6st need a deve!oper and a 5e desi7ner’. It’s operations' it’s mar%etin7' it’s se&rit$' it’s siness deve!opment' it’s in4rastr&tre – a!! o4 t#e traditiona! asi&s o4 a serios &ompan$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 &omeinto t#is spa&e t to t#is point' I %no5 a !ot o4 peop!e 5#o are doin7 start"ps 5#o’ve #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 a4as#ion. Havin7 to tea&# peop!e aot Bit&oin #as een... it seems !i%e a #rd!e t#at t#ese&ompanies t#at are tr$in7 to #ire deve!opers #ave #ad to 7o t#ro7# to t#is point. T#e &ost o4deve!opin7 in t#e nited States... a7ain' 5e’re ased ot o4 Ca!i4ornia so t#e &ost o4 #irin7 adeve!oper... 5#en 5e 5or% 5it# someod$ do5n in Latin Ameri&a' t#e &ost is a arter' i4 not!ess and so' t#at means i4 $o #ave a d7et' $o &an #ire 4or deve!opers 4or t#e pri&e o4one. T#at doesn’t mean t#at t#e deve!oper in Ca!i4ornia is etter (I mean' t#e$ mi7#t e

etter) t !timate!$' t#e &ost is more ased on !o&a!it$. Bit&oin doesn’t &are aot t#at soa7ain' 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 it’s !essepensive to a&ta!!$ pa$ t#em to do t#is 4!! time. T#at #as een a pro!em. 9/:/J;

AA: T#at’s 5#$ I t#in% India is 7oin7 to e &riti&a! in /012 e&ase t#e reason t#e$’re 7oin7to &ome onoard is e&ase t#e more o4 t#e ta!ent resor&e 4rom t#ere' t#e more 5e in4e&tt#em 5it# t#e idea o4 Bit&oin. Here’s anot#er !itt!e point t#at peop!e are missin7 ri7#t no5.

I4 $o #ave a Bit&oin &ompan$ and $o’re a!e to 7enerate Bit&oin &as# 4!o5' as a res!t o4t#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 inBit&oin and #o!d. Essentia!!$' 5#at $o’re doin7 is $o’re 7ivin7 $or emp!o$ees sto&%options in t#e entire Bit&oin e&os$stem $ pa$in7 t#em in Bit&oin and &reatin7 a sor&e o4!o5 &ost do!!ar to Bit&oin e&#an7e t#ro7# pa$ro!!. *e &an attra&t ta!ent and I t#in% even in

Nort# Ameri&a' 5e’ve no5 rea&#ed t#e point 5#ere $o &an #ave a serios &onversationaot peop!e aot – *#at do $o 5ant to do 5it# $or !i4e o $o 5ant to e part o4 t#emost e&itin7 te&#no!o7i&a! deve!opment o4 t#e !ast t5o de&ades' somet#in7 t#at 5i!! #ave a5or!d impa&t Are $o 5i!!in7 to pt in !on7 #ors 4or !o5 pa$ and ta%e a sto&% option in t#e4orm o4 Bit&oin and sto&% in eit$ in t#e &ompan$ I t#in% $o’re 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&



ep!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 aot t#emse!ves' instead o4 #atin7t#emse!ves ever$ mornin7 e&ase t#e$’re 5or%in7 4or t#e Man. o &omine t#at 5it#sto&% options in Bit&oin t#at #ave t#e possii!it$ o4 appre&iatin7. I t#in% 5e 5on’t #ave an$tro!e #irin7 ta!ent. *#at 5e’re 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 6os t#at nood$ 5i!! 5ant to 5or% an$more. 930:/2;

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Here’s to t#e &ra@$ ones. T#e mis4its' t#e ree!s' t#e tro!e"ma%ers' t#e rond pe7s in t#esare #o!es' t#e ones 5#o see t#in7s di44erent!$. T#e$’re not 4ond o4 r!es and t#e$ #ave norespe&t 4or t#e stats o. o &an ote t#em' disa7ree 5it# t#em' 7!ori4$ or vi!i4$ t#em.

Aot t#e on!$ t#in7 $o &an’t do' is i7nore t#em e&ase t#e$ &#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. o 5rite a !ot aot Bit&oin and are invo!ved in t#e isses arondBit&oin. *#at’s $or te&#ni&a! a&%7rond 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 Ido as a da$ 6o is m&# more a!!ied ana!$sis in mat#. O4 &orse' it’s %ind o4 7ot into t#em in5#at I’ve done in Bit&oin 5#i&# is ver$ m&# ana!$sin7 t#e s$stem as a 5#o!e' rat#er t#anne&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' it’s &omin7 4rom an

en7ineerin7 standpoint. o 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! one93/:12;

PT: ea# I t#in% t#at’s ite a&&rate and I t#in% 5#at’s interestin7 aot Bit&oin is #o5 e&ase it’s a tota!!$ ne5 s$stem' t#ere is sti!! a !ot o4 ana!$sis t#at needs to e done and it’sa!so ana!$sis t#at is ver$ amena!e to mat# and to eations' and so on. It’s ovios!$ !o7i&and reason and e&ase it’s ne5 eno7#' t#at’s sti!! a!! open and needs to e done. 93/:3;

AT: Ho5 5o!d $o des&rie Bit&oin 93/:3J;

PT: M$ 4avorite ana!o7$ 4or it is I !i%e to ta!% in terms o4 a vi!!a7e. Let’s sppose $o #ad avi!!a7e and ever$one #as a noteoo% and on t#is noteoo% $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 – o &an note do5n t#at 5i!! ded&t one vi!!a7e &oin 4rom m$ a&&ont and $o &an addone vi!!a7e &oin to $or a&&ont and t#en Bo and A!i&e ot# 7o te!! ever$one e!se in t#evi!!a7e t#at t#is #as #appened. 8er$ i&%!$' t#e$ &ome to &onsenss t#at $es' A!i&e #as paidBo. O4 &orse' t#is s$stem doesn’t 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#at’s a 5#o!e ot#er stor$ t 4ndamenta!!$' it’s rea!!$ ver$ simp!e – it’s 6stan a&&ontin7 !ed7er. 933:/;

AT: Ho5 aot #o5 it 5or%s nder t#e #ood Ho5 5o!d $o des&rie it as an en7ineer933:3/;

PT: I 5o!d a&ta!!$ des&rie it as a po!iti&a! s&ientist' 5#i&# is to sa$ t#at it’s demo&rati&.-eop!e #ate me sin7 t#is term 5#o are #eavi!$ invo!ved in t#e deve!opment e&asedemo&rati& &arries a !ot o4 a77a7e. It ma%es peop!e t#in% $o &an 7o vote 4or &#an7es toBit&oin 4ndamenta!!$' 5#i&# is sort o4 tre t it’s sort o4 isn’t. *#at’s rea!!$ important

t#o7# is t#at' 7oin7 a&% to t#e vi!!a7e eamp!e' t#e 5a$ Bit&oin &omes to &onsenss to4i7re 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. It’s aver$ stran7e vote e&ase it’s 5#at’s &a!!ed a random a!!ot. Approimate!$ on&e ever$ tenmintes' a miner' &omp!ete!$ at random is pi&%ed and t#en t#e$ 7et to de&ide 5#at t#e net

!o&% o4 transa&tions 5i!! e. Over time' t#is is approimate!$ !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#at’s a te&#ni&a! t#in7 t !on7 stor$ s#ort' $o do some se!ess5or% 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#at’s #o5 $o de&ide 5#ere t#e Bit&oin !o&%&#ain 7oes. 932:DJ;

AT: Some deve!opers don’t !i%e sin7 t#e term votin7. Ma$e t#ere is a!so some 4ee!in7 t#atit’s !i%e peop!e 5#o aren’t parti&ipatin7 in t#e &#an7es. 93D:0;

PT: I t#in% 5#at it rea!!$ &omes do5n to is' an ana!o7$ 5o!d e Bit&oin as a s$stem o4 anin&redi!$ stron7' restri&tive prostittion. T#e votin7 in t#e s$stem &an do not#in7 more t#ande&ide 5#at transa&tions are a&&epted and 5#at ones aren’t. It &annot ma%e a transa&tion t#atis inva!id i4 it doesn’t 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#at’s it. o rea!!$ &an’t do m&# 5it#t#at %ind o4 votin7. T#at’s ne4arios. At !east assmin7 ever$one &#e&%s t#e r!es. 93D:2;

AT: Bit&oin is a &onsenss s$stem. Is t#at a5esome or not *#at’s t#e pro!em or is t#ere...ever$ 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 do5nsides 93:02;

PT: Certain!$ t#e pside is t#at' 5#en it’s 5or%in7 proper!$' it’s ver$ 4ree 4rom otsideinter4eren&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 D1 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#ent#e$ &ontro! t#e destin$ o4 t#e Bit&oin !o&%&#ain. T#e$ &an’t 7o and pt inva!id transa&tionsin t#e &#ain i4 ever$one e!se is &#e&%in7 it t 5#at t#e$ &an do' is t#e$ &an 6st stoptransa&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. 93:0;

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 &#an7e 93:13;

PT: I %eep on sa$in7 t#at i4 ever$one ses Bit&oin &orre&t!$' miners don’t #ave an$ 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-8nodes' 5#i&# stands 4or Simp!i4ied -a$ment 8eri4i&ation and an S-8 node s%ips a!! t#is!aorios &#e&%in7 t#at ever$one is ein7 #onest and 4o!!o5in7 t#e r!es' rat#er it assmest#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 minin7is votin7. I4 ever$one on!$ sed S-8 nodes' t#en a miner &o!d ver$ 5e!! de&ide t#at $es'D1 ma6orit$ 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 airand 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 andso 4ort#' t 4rom a so4t5are !eve!' $or so4t5are isn’t &#e&%in7 t#at. T#at’s 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!! nodes I don’t %no5. Idon’t %no5 t#at 5e’re 7oin7 to %no5 nti! it #appens. 93:D0;

AT: T#e !o&%&#ain is 7ettin7 i77er and i77er' so #o5 &an 5e o5n t#at in4rastr&tre93:DD;

PT: T#is is t#e i7 &at&# 5it# Bit&oin. I4 $o #ave a &onsenss s$stem – to #ave &onsenssover t#e #istor$ o4 t#e !o&%&#ain' ever$ person 5#o #as part o4 t#at &onsenss mst #ave t#eentire !o&%&#ain 5#i&# 6st doesn’t 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 atransa&tion' t#en ever$ person needs to pro&ess ever$one e!se’s transa&tion' N sared – it’seponentia! 7ro5t# or t#at s#o!d e more mat#"a!an&ed adrati& 7ro5t# and t#at 6st

doesn’t 5or% as $o 7et eno7# peop!e. =ortnate!$' &ompters are etreme!$ 4ast ande44i&ient and 5e’ve een a!e to 7et a5a$ 5it# t#is s$stem 4or a !ot !on7er t#an' in someri7#ts' 5e rea!!$ s#o!dn’t #ave. In some senses' 5e’ve made t#is pi7 4!$ $ atta&#in7 ro&%etmotors to it. T#at on!$ 7oes so 4ar and an$ !on7er' and 5e #ave to do somet#in7 aot it.Ho5 t#at 5i!! a&ta!!$ ta%e p!a&e' I don’t %no5. *#at I do %no5 is t#at i4 5e don’t so!ve t#is

pro!em' and 5e’re a!read$ seein7 t#is – 5e see peop!e rn Bit&oin &!ients' or se Bit&oin in5a$s t#at doesn’t veri4$ t#is #istor$ and is t#ere4ore otsor&in7 $or trst to someone e!se todo t#e 6o 4or $o' 5#i&# sonds ver$ m&# !i%e &onventiona! an%in7 an$5a$. 920:10;

AT: o said somet#in7 aot 7ood Bit&oin' !i%e a po!iti&a! s&ien&e. In some 5a$s' it’s a!soaot 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 4tre Can $o 7ive s a 7!impse aot#o5 t#is s$stem 5i!! 4n&tion on a ma&ro s&a!e 920:3;

PT: *#at I 5ant to see #appen is 4or t#ere to not e distin&tions et5een a!! t#ose di44erent7rops. It’!! on!$ #ave t#ese distin&tions' t#at’s 5#en Bit&oin is 9t#ro5 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$one parti&ipatesea!!$' ever$one does a it o4 minin7' ever$one does a it o4 va!idation' ever$one is p!!in7t#eir o5n 5ei7#t and it’s ver$ n4ortnate t#at de to t#e te&#ni&a! isses' 5e’re not seein7t#at. Instead' 5e’re seein7 peop!e otsor&e a!! t#eir trst to &entra!i@ed servi&es !i%eB!o&%&#ain.in4o' &entra!i@ed dependent te&#no!o7ies !i%e S-8 nodes' !i%e Android 5a!!etsand 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#at’s not so

pop!ar and peop!e are' in a sense' ta%in7 t#e eas$ 5a$ ot. No5' i4 $o 7o and &#an7e t#e5a$ 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!$' 5e’ve7ot 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 don’t see t#ese isses as important at a!!. T#e$ 6st dismiss it as somet#in7t#at... 5#atever' Bit&oin’s 5or%in7 4ine. Bit&oin needs to 4i s&a!ai!it$ t !et’s 6st #ave ai&% 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 merea!i@e t#at it’s not so eas$ to 4i pro!ems in Bit&oin on&e $o &ase t#em e&ase $o’ve7ot t#is #7e movin7 s$stem. o’ve 7ot a&tors 5#o ma$ #ave in&entives to !eave t#e

pro!ems in p!a&e and' 4rt#ermore' $o’ve &ompetitors to Bit&oin' !i%e Lite&oin and ot#er a!t&rren&ies t#at ma$ ver$ 5e!! 6st ta%e Bit&oin’s 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!espe&ia!i@ation 92/:3;

PT: I don’t t#in% it’s inevita!e. I4 5e std$ t#is isse and 5e t#in% &are4!!$ aot it' 5e&an 7o 4ind 5a$s to ma%e it not inevita!e. In some sma!! 5a$s' I’ve done t#in7s m$se!4 !i%et#at' !i%e I proposed t#is te&#no!o7$ &a!!ed TQO &ommitments t#at ena!es nodes to not storet#e 4!! #istor$ o4 t#e !o&%&#ain 5#i!e sti!!' 5it# ot#er te&#no!o7ies' &an sti!! veri4$ parts o4it' so t#at is a &o!!e&tive o4 t#e entire #istor$ veri4ied T#ere’s a!so t#in7s !i%e 4rad proo4s5#i&# ena!es nodes t#at on&e t#e$ do 4ind t#e r!es are not ein7 4o!!o5ed' to sond ana!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!imit 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"&#aintransa&tions 5#i&# 6st ta%es t#e !oad o44 t#e s$stem and $s s time. None o4 t#is st44 isa!! per4e&t t it’s 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&oin’s de&entra!i@ation to e sa&ri4i&ed. *e ma$ 4ind t#at' $doin7 t#at' 5e 5ind p 5it# Bit&oin t#at doesn’t 7ro5 ite as 4ast as some investors 5o!d!i%e t t#at is a m&# etter trade o44 t#an destro$in7 5#at Bit&oin o44ers to t#e 5or!d.923:DJ;

AT: *#at’s t#e s#ardin7 T#at’s interestin7. 922:0/;

PT: T#e asi& idea pon t#at is t#e re&o7nition t#at $o don’t ne&essari!$ #ave to #ave one&onsenss 9domain; and t#at’s %ind o4 a ver$ te&#ni&a! term t#at rea!!$ means $o don’t



a&ta!!$ #ave to #ave ever$one #ave a &omp!ete vie5 o4 t#e entire state o4 t#e 5#o!e s$stemat on&e. I4 $o’re &!ever' $o &an restri&t t#e vie5 t#at an$ one person #as to #ave. A ver$simp!e eamp!e I !i%e to se' 5#i&# isn’t ne&essari!$ a 7reat idea' t it’s an idea t#at &an5or%' sppose $o #ad a rin7 o4 !o&%&#ains and $o ma%e t#e s$stem s&# t#at areas o4ad6a&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 rin74rom one !o&%&#ain to anot#er. 922:D0;

AT: T#at ses a spe&ia! transa&tion 9inadi!e; 922:D;

PT: ea#' a spe&ia! t$pe o4 transa&tion. ea#' 5#i&# 5e a!read$ a&ta!!$ #ave t#e ai!it$ to.922:D;

AT: <i7#t. It’s on t#e 5i%i' isn’t it 92D:00;

PT: ea#. It 6st doesn’t 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! mineron!$ needs to %eep p 5it# a sma!! se&tion o4 t#is 5eird rin7 s$stem' $o &an sti!! spend &oins4rom 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 estdied t i4 $o a&&ept t#at de&entra!i@ation is important' $o 7o so!ve t#ese isses. o 7ostd$ 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 didn’t eist. 92D:D1;

PT: A4ter a!!' t#e !o&%&#ain is i7' 5it# &ertain te&#no!o7ies !i%e TQO &ommitments' andits &!ose &osin TQO &ommitments' $o don’t a&ta!!$ need to do5n!oad t#e entire

!o&%&#ain to 7et $or node started. o &an do5n!oad a sset o4 t#at data or 5it# TQO&ommitments – no data at a!!' t $o sti!! #ave to %eep p 5it# t#e and5idt# o4 ne5 !o&%sas t#e$ &ome in. T#at’s a rea! pro!em e&ase i4 $o a!!o5 t#e !o&% si@e to 7ro5' t#e si@eo4 an individa! !o&%' t#en at some point' it needs an amont o4 and5idt# t#at not ever$one

&an %eep p' espe&ia!!$ not peop!e on !o5 and5idt# &onne&tions' !i%e #ome residentia!&onne&tions and espe&ia!!$ anon$mos &onne&tions. On top o4 t#at' and somet#in7 t#at’s een 4ond more re&ent!$ is t#at' $o &reate ver$ perverse in&entives in t#at (and I’m 7oin7 to7et 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 aot t#at transa&tion' and aot t#at !o&% as a 5#o!e and i4 $o are aminer 5#o #as a !ot o4 mone$ 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 moreeipment t#ere4ore' $o &an ma%e more mone$. A!so' 6st $ ein7 i77er' $o’re !ess!i%e!$ to #ave someone 4ind a !o&% at t#e ea&t same time and not e t#e one 5#o 4ond t#e

!o&% t#at 5ins. T#at’s &a!!ed $or orp#an ris% and a7ain' t#e i77er $o are' t#e !o5er $ororp#an ris% is and it’s 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&entiveto 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 !imitat a!!' t#at in&entive is m&#' m&# stron7er and it’s #ard to ima7ine #o5 minin7 5o!dn’t

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 $o’re sa$in7 t#at t#e&onseen&e i4 5e 6st 7ot rid o4 it' 5#i!e transa&tion 4ees mi7#t drop' mi7#t e&ome !o5' it5i!! a!!o5 miners to 4orm an even i77er &arte!. 92:1/;

PT: es. It 5o!d not so m&# a!!o5 t en&ora7e t#em to. 92:1D;

AT: En&ora7e t#em to. 92:1;

PT: es. 92:1;

AT: <i7#t. Sre!$' t#e mar%et 5i!! se!4 re7!ate 92:/1;

PT: *#$ 5o!d it 92://;

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% 92:/;

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&entivesend p ein7 t#at $o earn more mone$' in man$ &ases' t#an t#e miners 5#o didn’t do t#isand t#e reason is' i4 $or !o&% ends p ein7 a&&epted' 5#i!e ot#er miners 5ere not minin7to etend $or !o&% rat#er t#an t#e !o&% e4ore' t#e$ 5ere 5astin7 t#eir time. T#at meanssome per&enta7e o4 t#e time' 5#ere t#e$ &o!d #ave een earnin7 mone$' 5as spent 5asted'5#ereas 4or $o' 100 o4 t#e time 5asn’t 5asted. I4 $or 7oa! is to earn more mone$ t#anot#er miners' 5#i&# is 7enera!!$ 5#at a siness 5ants e&ase' a4ter a!!' i4 earnin7 moremone$ t#e miners (or I s#o!d sa$ t#e #as#ers) 5#o are minin7 at t#at poo!' 5i!! 7o move4rom t#e sma!!er poo! to t#e i77er one. o 7et t#is 7!$ set o4 in&entives. It’s 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 doesn’t. 92J:/0;

AT: o t#in% 5e’re 7oin7 to #ave to in&rease t#e !imit in t#e 4tre 92J:/3;

PT: I don’t %no5. I t#in% in t#e near 4tre' 5e de4inite!$ s#o!dn’t in&rease it e&ase 5ea!read$ %no5 t#at in&reasin7 it 5i!! !ead to disaster. No5' i4 5e on!$ in&rease it a !itt!e it'

ma$e it 5on’t !ead to disaster t 5e %no5' at some point' i4 5e in&rease it eno7# it 5i!!and e&ase t#e po!iti&a! s&ien&e o4 de&entra!i@ed &r$pto&rren&ies isn’t 5e!! nderstood' 5edon’t %no5 5#at’s 7oin7 to #appen 5#en t#at !imit is rea&#ed. It ma$ e t#at $o &an’tre&over e&ase t#ere are simp!$ too m&# in&entives 4rom a !ar7e part o4 t#e &ommnit$ to&ontine in a ad sitation. A7ain' ta!%in7 aot poo!s' i4 a poo! %no5s it 5i!! ma%e !essmone$ 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#er5a$ 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 eoserva!e =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$or mode!' #o5 5o!d in&reasin7 t#e !o&% si@e !imit a44e&t t#e s$stem 9D0:3;

PT: Keep in mind' 5e’re not stri&t!$ ta!%in7 aot te&#ni&a! st44 #ere' 5e’re ta!%in7 aotso&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 reasonis t#at i4 7overnments do not attempt to re7!ate Bit&oin' it’s m&# more a&&epta!e 4orminers to e p!i&!$ %no5n' it’s m&# more a&&epta!e 4or t#em to e 4or&ed to #ave t#et$pe o4 #i7# and5idt# internet &onne&tions t#at are eas$ to 4ind and s#t do5n' 5#ereas i47overnment de&ides to start re7!atin7 Bit&oin more #eavi!$... and rememer 5e’re ta!%in7re7!atin7 #ere' I rea!!$ don’t 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!$' minersmst not mine transa&tions re!ated to &ertain !a&%!ists. T#at %ind o4 re7!ation &an &reep pand 5#i!e it’s #appenin7' it’s ver$ eas$ 4or !ar7er minin7 poo!s 5#i&# #ave an in&entive toeist e&ase t#e$ ma%e more mone$' to t#en start 4o!!o5in7 t#ese re7!ations. o 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' $o sdden!$ &an’t spend t#e mone$ in $or5a!!et 5it#ot 5aitin7' ma$e a &op!e o4 #ors to !et 1 o4 miners' 5#o are not 4o!!o5in7t#ose r!es' 4ina!!$ 7et rond to 4indin7 t#e !o&%. Ma$e 4ive $ears do5n t#e road' $o’!!never e a!e to ma%e a transa&tion. *e do not ite %no5 #o5 t#is is 7oin7 to p!a$ ot t5e &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: o 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/:1;

PT: T#e si@e o4 minin7 poo!s is a ver$' ver$ i7 t#reat. 9D/://;

AT: ea#. *e’ve a!! seen t#e i7 ASICs' !i%e t#e i7 4a&i!ities. 9D/:/;

PT: ASICs are anot#er matter. o’ve 7ot to rememer t#ere’s 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 eeas$ to 7et t#eir #as#in7 eipment and start #as#in7 and earnin7 mone$' and it’s m&# easierto do t#is $ se!!in7 $or #as#in7 po5er to a minin7 poo!. 9D/:2;

AT: o’re ta!%in7 aot !o5erin7 $or epe&tation t a!so !o5erin7 $or varian&e.9D/:D/;

PT: es' !o5erin7 $or varian&e' not epe&tations. 9D/:D2;

AT: *e!!' $o’re sa&ri4i&in7 some epe&tation 4or t#at !o5erin7 o4 varian&e. 9D3:00;

PT: o #ave to de4ine 5#at $o mean $ epe&tation. 9D3:01;



AT: or avera7e pa$ot. I4 so!o"mined' $o’d 7et more. 9D3:0D;

PT: <i7#t' t t#at’s 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#at 9D3:/2;

PT: T#at’s 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 epenses. It’s amorti@ed overa!!a!! &!ients' 5#ereas $o #ad to 7o pa$ 4or a 4!! Bit&oin node and' !i%e it or not' it’s not 4ree.

o #ave to 7o pa$ 4or $or time settin7 p' $o #ave to pa$ 4or $or &ompter and t#oseepenses are on!$ 7ettin7 #i7#er in t#e 4tre. 9D3:2J;

?????????????????????????????????????????

ADVERT:

*#en $o s#op 5it# Bit&oin on G$4t' $o &an 7et 7i4t &ards 4rom over /00 retai!ers. T#in% o4t#e possii!ities. Not on!$ is $or #o!ida$ s#oppin7 ta%en &are o4 in a snap' 4rom $orAndroid devi&e' or on t#e 5e t no5' $o #ave a 5a$ to pr&#ase ever$da$ items 4romstores !i%e Tar7et' C8S' Gap and GameStop sin7 $or it&oins. T#at’s not even t#e est

part. *#en $o s#op 5it# Bit&oin on G$4t' $o 7et 3 a&%. <ead$ to s#op 8isit555.G$4t.&om toda$. 9D2:/;

A$$%&$'EME$T:

Happ$ #o!ida$s 4rom Let’s Ta!% Bit&oin. I4 $o !i%e t#e 5or% 5e’re doin7' 5e appre&iateBit&oin tips o4 a!! si@es at 555.!etsta!%it&oin.&om. ,st as important!$' s#are t#e s#o5 5it#

$or peers and revie5 t#e s#o5 on iTnes. on’t e %ind' e #onest. LTB rea&#es near!$10'000 !isteners t #as !ess t#an D0 revie5s an$5#ere I &an 4ind. I’d ver$ 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$stem – it’s !i%e 5e’ve 7ot t#e mer&#ants' t#e 5a!!ets and t#en ma$e #avesome !irar$ &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;

http://www.gyft.com/


http://www.gyft.com/




PT: es and %eep in mind 5#at I std$ aot Bit&oin. =or t#e most part' I on!$ &are aott#ese !o5er !eve!s. I don’t rea!!$ &are t#at m&# aot 5#at mer&#ants are doin7' I don’trea!!$ &are t#at m&# aot 5#at t#eir &stomers are doin7. I mean' I do &are t#at t#e$ seBit&oin in 5a$s t#at are os&re. 9DD:32;

AT: Ma$e ep!ain a it more aot 5#at t#is part o4 Bit&oin is and 5#$ it’s... 9DD:3;

PT: I &are aot t#e so4t5are. I &are aot t#e 5a$ t#e te&#no!o7$ 5or%s. I’m not t#atinterested in t#e 4inan&ia! environment arond e&#an7es. I don’t rea!!$ &are t#at m&# aott#e !atest mer&#ant A-I. None o4 t#at rea!!$ matters t#at m&# to me. I &are aot 5#enBit&oin transa&tions #appen' #o5 do Bit&oin sers se 5a!!et so4t5are to 7o and ma%e t#osetransa&tions #appen' and so on. 9D:01;

AT: *#at is t#e &onsenss part o4 Bit&oin 9D:02;

PT: I4 $o 5ant to ta!% aot 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#esor&e &ode t#at Satos#i 5rote. 9D:1;

AT: o mean t#e net5or% proto&o! 9D:/0;

PT: No' I mean t#e Bit&oin proto&o!. 9D://;

AT: T#e !o&% va!idation 9D://;

PT: <ememer' t#e net5or% proto&o! I t#in% $o mean t#e 5a$ t#at !o&%s are passedarond et5een t#e nodes. T#at is not part o4 t#e Bit&oin proto&o!. 9D:31;

AT: <i7#t. o mean t#e !o&% va!idation and t#e s&r$ptin7. 9D:32;

PT: es. *#en 5e deve!opers ta!% aot t#e Bit&oin proto&o!' or at !east 5#en some o4 sdeve!opers ta!% aot 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 aot. 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#espe&i4i&ation needs to e 5ritten. T#e easiest t#in7 to do is 6st sa$ t#at spe&i4i&ation is t#issma!! 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: es. It’s ea&t!$ it. 9D:1;

AT: Ho5 do a!! t#e di44erent Bit&oin versions 5or% to7et#er 9D:/0;

PT: I t#in% $o #ave 7ot to nderstand t#at 5#en it &omes to t#e re4eren&e imp!ementation'on GitHBit&oinBit&oin' ver$ !itt!e o4 t#e &ore &onsenss &ode is ever &#an7ed. =or t#emost part' 5#at #as &#an7ed #as eit#er een &osmeti&' s&# as addin7 primitives 6st to 7o

and 7ive de77in7 messa7es or potentia!!$ movin7 a it o4 &ode arond or &#an7in7 t#eindents' or st44 t#at 5e rea!!$ #opin7 5asn’t important' !i%e t#e Leve!B p7rade 5#i&#' o4



&orse' is a 7reat eamp!e e&ase 5e s&re5ed it p and 5e ended p &reatin7 a #ard 4or%. In7enera!' it doesn’t &#an7e e&ase it is t#e spe&i4i&ation o4 5#at Bit&oin is. 9D:00;

AT: *#$ is important not to &#an7e it 9D:0/;

PT: T#e moment $o &#an7e it' t#e net5or% doesn’t #ave &onsenss and Bit&oin is nie int#at &onsenss is a se&rit$ isse. I !i%e to se t#e ana!o7$ o4 – Let’s sppose $o’re in a&ro5d and $o #ave a a74! o4 va!a!es' ma$e t#e Peen’s 6e5e!s' or somet#in7 and t#eon!$ 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 Peen’s 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 a7ainstt#e t#ie4 tr$in7 to stea! it' or do $o 5ant t#e &onsenss to rea% do5n over 5#o is t#e t#ie4and #ave peop!e p!!in7 a7ainst ea&# ot#er' ma%in7 it m&# easier to overpo5er t#e stren7t#o4 t#ose 5#o are tr$in7 to #o!d t#at a7 and %eep it se&re. In t#e &ase o4 Bit&oin' i4 nodesdisa7ree aot 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 #aven’t. =rom t#at' o4 &orse' t#en $o &an 7o and stea! mone$ 4rom peop!e.o’ve destro$ed 5#at Bit&oin is spposed to e – a se&re 5a$ o4 determinin7 5#et#ertransa&tions #ave a&ta!!$ #appened or not. 9DJ:1;

AT: T#e &onsenss &ode' it needs to e t#e same et5een nodes' or t#e nodes need to operatein a deterministi&a!!$ sin7!ar 5a$. 9DJ:/D;

PT: es' $es. 9DJ:/;

AT: Ho5 m&# &an t#is &ode deviate I mean' $o 7ave t#e eamp!e o4 t#e Leve!Bp7rade' 5#i&# &ased a 4or%. 9DJ:3D;

PT: *e’re at t#e !eve! 5#ere even i4 peop!e ran t#e ea&t same &ode' deviation sti!! &an#appen e&ase t#e ee&tion environment t#e &ompter t#at t#e &ode rns on isn’t a!5a$sea&t!$ 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 pt#at #as even &ome &!ose to 7ettin7 it ri7#t. T#e ones t#at $o do see' $o 4ind 7' a4ter 7'a4ter 7 5#ere it doesn’t ite mat&# t#e semanti&s. It ma$ even e t#at t#e$ 4i t#e 7 t'in Bit&oin' 4iin7 a 7 is not 4iin7 an$t#in7. It’s rea%in7 t#e &onsenss. o mstimp!ement Bit&oin ea&t!$ t#e same 5a$ as ever$one e!se does' or $o ris% rea%in7

&onsenss. It’s a ver$ to7# arrier and I don’t t#in% &ompter s&ien&e is at a point 5#ere 5e&an reimp!ement Bit&oin and 7et it ri7#t. o &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 $ore&eive a !o&%' $o mst per4orm t#e ea&t same a&tions to determine 5#et#er or not t#e

!o&% is rea!' as ever$one e!se does. 91:00:2;

AT: T#e$ sa$ in t#eir so4t5are deve!opment' t#ere is never an$ so4t5are 5it#ot an$ 7s init and so' do $o t#in% t#at in t#e &onsenss &ode t#at t#ere are 7s in t#ere t#at 5e don’t%no5 aot t#at need to e rep!i&ated t#at ma$e an a!ternative 91:01:00;

PT: es' aso!te!$. T#at’s 5#at is so #ard aot rep!i&atin7 Bit&oin. Ever$ time I 7o spendsome time !oo%in7 at t#e &ode in detai!' it seems I 4ind anot#er t#in7 I didn’t %no5 aot



e4ore. -eop!e nderestimate 6st #o5 &omp!e a 4e5 t#osand !ines o4 sor&e &ode &an e5#en $o #ave to mat&# its e#avior ea&t!$. 91:01:/0;

AT: T#e pro!em is not a 4e5 t#osand !ines o4 &ode it’s not a di44i&!t t#in7. It’s re!ative!$eas$. o’re ma%in7 t#e ar7ment t#at it’s not t#at 5e #ave to 5rite a &op!e o4 t#osand

!ines o4 &ode t it’s t#at t#ose &op!e o4 !ines o4 &ode mst per4orm ver$ sin7!ar!$ in its4n&tiona!it$. 91:01:20;

PT: *#at’s interestin7 aot t#at is to 5rite Bit&oin is eas$. I4 $o 5ant to imp!ement ana!t&oin or i4 $o 5ere t#e person 5#o 5anted Bit&oin in t#e 4irst p!a&e' 5ritin7 t#at &ode isnot t#at #ard e&ase 5#at it does is a&ta!!$ prett$ simp!e. *#en $o 5ant to 5rite a 74or 7 &ompati!e reimp!ementation' t#at’s 6st a ni7#tmare. It’s in&redi!$ #ard. 91:0/:00;

AT: Ho5 aot #o5 Satos#i made Bit&oin. 91:0/:03;

PT: T#ere’s a !ot o4 sspi&ion t#at Satos#i 5asn’t 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 5ere4ied and !ast minte &#an7es. *#at 5e #ave is 5#at 5e #ave. *e #ave to 7o dea! 5it# 5#at5e #ave and 5or% 4rom t#ere. 91:0/:/D;

AT: Is Bit&oin t#e 4tre o4 or 4inan&ia! in4rastr&tre Or !o&a! 4inan&ia! in4rastr&tre91:0/:31;

PT: I 5o!d sspe&t' no. I 5o!d sspe&t t#at 5e 5o!d 7o see !essons !earned 4rom Bit&oinapp!ied to more &onventiona! 4inan&ia! in4rastr&tre e&ase Bit&oin is a ver$ n4or7ivin7s$stem. Bit&oin #as no ai!it$ to e 4ied' ot#er t#an $ &onvin&in7 ever$one to 7o 4isomet#in7 5#en an isse &omes p. 91:0/:2J;

AT: o $o t#in% t#at’s so!va!e 91:0/:D0;

PT: No. 91:0/:D1;

AT: Ma$e 5it# an a!ternate &oin' 5o!d t#at e so!va!e -ossi!e even 91:0/:DD;

PT: ea# 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: es. 91:03:0D;

AT: Bt t#en' t#at’s not Bit&oin is it rea!!$ 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: ea#' it’s 4ied. 91:03:11;

PT: I t#in%' in rea!it$' 4or most prposes t#at’s too stri&t. 91:03:1;



AT: O# rea!!$. 91:03:1;

PT: Most eamp!es 5i!! not 5ant to dea! 5it# t#at. 91:03:/0;

AT: *#$ do $o t#in% t#at It’s too stri&t 91:03:/3;

PT: It’s ite simp!e. *#en peop!e ma%e mista%es' t#e$ 5ant to #ave t#e ai!it$ to #avet#ose mista%es 4ied. T#e !e7a! s$stem is rea!!$ 7ood at t#is. T#e !e7a! s$stem &an ma%ean$t#in7 #appen. I !ove sin7 t#e eamp!e o4 #ndreds o4 $ears a7o 5#en varios treaties5ere made et5een (I’m not even 7oin7 to sa$ 5#at term I’m 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 $ears !ater' t#ose treaties are 7ettin7 ripped p and rede4ined andremodi4ied e&ase it 5as de&ided t#at t#e$ 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 person5#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 inBit&oin reires t#osands. 91:02:1;

AT: *#at do $o t#in% o4 BitS#ares and Master&oin and ot#er proposa!s !i%e t#ese ones91:02://;

PT: I don’t t#in% t#e$ are as interestin7 as Bit&oin itse!4. 91:02:/2;

AT: *#at’s interestin7 aot Bit&oin 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$t#in7 in t#erea! 5or!d. On t#e ot#er #and' Co!ored&oins' Master&oins and so m&# ot#er st44 !i%e it't#e$’!! rea!!$ 6st &ontin7 s$stems ased on &entra! identities. =ndamenta!!$' Co!ored&oinis on!$ as va!a!e as t#e t#in7 t#at it 5as issed $. *#i!e it’s &ertain!$ ver$ interestin7 t#at$o &an 7o &reate an a&&ontin7 s$stem 4or s#ares t#at is independent o4 t#e &ompan$' it’s notas interestin7 as 7oin7 &reatin7 somet#in7 ot o4 t#in air t#at’s va!a!e 5it# no ties to a rea!5or!d identit$. I &ertain!$ don’t 5ant to 7o pt do5n Co!ored&oins. It’s a 4as&inatin7eperiment t it’s 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 &reatea!! t#ese di44erent &on&epts t#at $o &an’t 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 eistin7 minin7 po5er andmomentm t#at’s e#ind Bit&oin to 4e! t#eir te&#no!o7ies. *#i&# do $o t#in% is t#e etterapproa&# or is t#ere no etter... 91:0D:3;

PT: Aso!te!$ Master&oins and Co!ored&oins. Tr$in7 to 7o &reate $or o5n !o&%&#ain4rom s&rat&# 4or $or o5n prpose is &ra@$. Master&oin is emedded in Bit&oin.Co!ored&oins is emedded in Bit&oin and t#at means t#at $o 7et t#e se&rit$ o4 Bit&oin

e&ase $o’re emedded 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$ inmone$ minin7 it 5#i&# is !i%e!$ not ver$ m&#' t#ere4ore it’s not se&re. 91:0:0;

AT: I4 a too! #as a !ot o4 e&onomi& in&entive 4or peop!e to se it' ma$e peop!e &o!d drivet#e adoption o4 a ne5 !o&%&#ain. 91:0:1;



PT: No. 91:0:1;

AT: No 91:0:1;

PT: No' e&ase it #as to 7et to t#e !eve! o4 in&entive t#at is se&re ver$ i&%!$ or it 5i!! eatta&%ed. nti! it 7ets to t#at point' it’s not se&re and t#ere4ore t#ere is no in&entive to se it.91:0:/;

AT: *#$ 5as Bit&oin so !&%$ 91:0:30;

PT: Be&ase it 7ot !&%$. 91:0:31;

AT: <i7#t. 91:0:31;

PT: T#at’s a!! it &omes do5n to. Bit&oin &o!d #ave een %i!!ed o44 ear!$ on t 5e 5ere

!&%$ eno7# t#at it didn’t. In some respe&ts' it &o!d sti!! e %i!!ed o44 and ma$e a #ndred$ears 4rom no5' 5e’re 7oin7 to e a!e to sa$ – *e 5ere prett$ damn !&%$ it didn’t.91:0:2;

AT: It seems prett$ inevita!e t#at t#e !o&%&#ain is 7oin7 to e sed and ased and peop!eare 7oin7 to do a!! %inds o4 di44erent app!i&ations' !evera7in7 o44 o4 it. It’s a ne5 &on&ept or ane5 data str&tre in &ompter s&ien&e 5#i&# 5e #aven’t 4!!$ investi7ated. T#e Bit&oin 1.0is t#e one t#at’s t#ere and $o &an start pttin7 st44 inside it. Bit&oin is str77!in7 ri7#t no55it# t#e !o&%&#ain. A!read$' it’s e&omin7 a pro!em t#at' as it’s e&omin7 more resor&eintensive' 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 isn’t 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 4ied. I4 5e %eep t#e !o&% si@e !imit' it &annot e more t#an 1M'approimate!$ ever$ ten mintes. 91:0:20;

AT: A!so 5rite speeds. 91:0:2/;

PT: ea# t t#at’s irre!evant. o #ave 1M o4 data' approimate!$ 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 doesn’t reire 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 ea!!$' I &an te!! $o t#at t#e peop!e 5#o !oo%ed at t#att#in% t#at' to 7o ma%e s#ardin7 t#e !o&%&#ain 5or% reires di44erent e&onomi& in&entivest#an Bit&oin &rrent!$ #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$one 5#o o5ns Bit&oin.n4ortnate!$' t#e de4!ation rate o4 Bit&oin approa&#es @ero in t#e !on7 rn. I mean' it does7o 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$ 5on’t. I4 t#e$ don’t' 5e’re s&re5ed. Ma$e it 5i!! ta%e



t5ent$ $ears' ma$e it 5i!! ta%e ten' and ma$e it 5i!! ta%e a #ndred. I don’t %no5 t it’s prett$ 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

investi7ate 91:0J:1/;

PT: I 5o!d sa$ s&a!ai!it$' I 5o!d sa$ 4i7rin7 ot #o5 to 7o ma%e minin7... 91:0J:1;

AT: S&a!ai!it$ in 5#at 5a$ 91:0J:1J;

PT: ,st s&a!ai!it$ in 7enera!. It’s a #7e aspe&t. 91:0J:/2;

AT: o mean readin7 t#e !o&%&#ain' 4or instan&e' $ea# 91:0J:/;

PT: =or a!! t#ese t#in7s. Ma$e ot o4 t#at sset t#e most important t#in7 is ma%in7 sre

it’s a!5a$s possi!e to mine in a s&a!a!e 5a$. 91:0J:3;

AT: o said it 5as a so!va!e pro!em and t#e i77est one 5as and5idt#' ri7#t 91:0J:21;

PT: <i7#t. As I sa$' s$n&in7 p o!d #istor$ to otain a de&ent !eve! o4 trst in o!d #istor$ –t#at’s a so!va!e pro!em' or at !east 5e t#in% it is. *e #aven’t imp!emented t#e so!tion.91:0J:D3;

AT: <i7#t' so it’s ta%in7 t#ese &on&epts and app!$in7 t#em. 91:0J:D;

PT: es 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#eisse. 91:10:0;

AT: ea#' $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 doesnot so!ve t#e isse. 91:10:1;

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 o4mode! 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 &an’t do is ma%e it

impossi!e 4or t#ose t#ird parties to not do some #arm to $o. It’s 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 aot t#ese 4ndamenta! pro!ems in Bit&oin' rat#ert#an ne5 mer&#ant so!tions' or di44erent Bit&oin 5esites' or pa$ment 7ate5a$s' t#is isrea!!$ a more 4ndamenta! area to invest or ener7$ in *o!d pttin7 resor&es into so!vin7t#ese pro!ems #e!p a!so t#e mer&#ants and t#e 5a!!et sers' and so on and #o5 91:11:22;

PT: I t#in% t#is is 6st a !on7 terms#ort term investment t#in7. o s#o!d do ot# t t#emain t#in7 is to 7o and a&&ept t#at t#in%in7 aot !on7 term isses is important.n4ortnate!$' 5e #ave some memers o4 t#e Bit&oin &ommnit$ 5#o t#in% t#at !on7 termisses aren’t important and I t#in% 5#at’s important is to 7o sa$ to t#ose memers o4 t#e&ommnit$ t#at t#e$’re s#ort"si7#ted. It’s as simp!e as t#at. Ea!!$' 5#en someone does&ome p 5it# some &!ever ne5 mer&#ant A-I' or some ni&e ne5 5a!!et so4t5are' I’m not7oin7 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 I’m 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!ai!it$' or so on" #o5 &an t#is impa&t t#e peop!e 5#o mi7#t do t#e mer&#ant so!tions or t#e sers o4 t#e5a!!ets in tan7i!e 5a$s 91:1/:2/;

PT: T#e immediate impa&t is t#at i4 pro!ems in t#ese 4ie!ds aren’t so!ved in some 5a$ oranot#er' and t#at in&!des ein7 so!ved $ &ompromises and i&% #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 don’t see t#at as a i7 isse 7iven t#at it’s ver$ eas$ to see t#at most o4 5#at Bit&oin’s sed4or is as an investment. T#e 5a$ $o %no5 t#is is tre' is $o 6st ta%e a!! t#e mone$ t#atmst 4!o5 into Bit&oin to %eep t#e pri&e sta!e 7iven t#e de4!ation rate and $o divide it $t#e nmer o4 transa&tions. Crrent!$' ea&# transa&tion &osts aot 30 and it spi%ed p to' It#in%' D0 ma$e... a&ta!!$ no' it’s proa!$ tre' and it proa!$ is aot D0 ri7#t no5.D0 is m&#' m&#' m&# more epensive t#an an$t#in7 t#at an avera7e person is 7oin7 tose Bit&oin 4or' to even ma%e a sma!! pr&#ase. On t#e ot#er #and' it’s not ver$ epensive interms o4 ein7 a!e to 7o and trans4er va!e arond t#e 5or!d 5it# no intermediaries and 5it#no ai!it$ to !o&%. A 5ire trans4er et5een aritrar$ an%s arond t#e 5or!d tends to eaot D0. =or s investin7 in Bit&oin as an asset' as an asset t#at &annot e &on4is&ated' D0o4 transa&tion doesn’t 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 didn’t eist e4ore. *#at is t#e potentia! t#at #asn’t $et een

rea!i@ed o4 Bit&oin t#at &o!d e&ome a rea!it$ *#at are t#e rea!!$ interestin7 app!i&ations'or possii!ities' t#at ma$e t#in7s t#at 5i!! ndermine' or po5er str&tres' or t#in7s t#at 5i!!improve peop!e’s !ives in 4ndamenta! 5a$s *#at are t#e t#in7s t#at $o rea!!$ t#in% areinterestin7 aot Bit&oin 5e #aven’t ep!ored $et 91:12:3D;

PT: I &o!d 7o and name varios pie&es o4 te&#no!o7$ t#at #aven’t een 4!!$ deve!oped tI t#in% t#e most interestin7 t#in7 sti!! oi!s do5n to t#e 4a&t t#at $o #ave a 5a$ o4 storin75ea!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 aso!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: ea#' not#in7 e!se in t#e 5or!d. 91:1D:12;

AT: Ho5 5i!! t#at &#an7e t#in7s *#$ is t#at important 91:1D:1;

PT: It &#an7es t#in7s in so man$ 5a$s e&ase it &#an7es 5#at po!iti&ians' 5#at7overnments &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 epensive. Imean' a!! t#at st44' t#ere are ot#er 5a$s to do t#at t a store o4 va!e t#at &an’t e&on4is&ated – t#ere aren’t an$ ot#er 5a$s to do t#at. 91:1D:2/;

AT: *#at are some o4 t#e pra&ti&a! t#in7s 91:1D:2;

PT: I to!d $o t#e pra&ti&a! t#in7s " peop!e 5#o are a!e to 7o and store 5ea!t# t#at &annot e&on4is&ated. T#at’s a ver$ pra&ti&a! prpose. 91:1D:D3;

AT: *#at 5o!d I see ot o4 t#at *o!d it &o!!apse t#e 7overnments or t#e an%s91:1D:DJ;

PT: *#$ 5o!d it &o!!apse an$t#in7 91:1:00;

AT: T#at’s 5#at I’m as%in7. 91:1:01;

PT: It 7ives peop!e options. It ma%es it m&# easier 4or t#em to 7o ta%e a&tion sa$' a7ainst7overnment' %no5in7 t#at t#e$’!! #ave somet#in7 to 4a!! a&% on. It retrns po5er a&% tot#ose 5#o are a!e to 7o and #ave some mone$ st44ed a5a$. I’m not 7oin7 to sa$ it retrns

po5er a&% to t#e peop!e – t#at’s not tre. *#en I sa$ it retrns mone$ a&% to t#e peop!e5#o are in a position 5#ere storin7 5ea!t# 5i!! e se4! 4or t#em. 91:1:/;

AT: E&e!!ent. T#an%s. 91:1:/;

PT: o’re 5e!&ome. 91:1:30;

????????????????????????????????????????

'RED(TS:

T#an%s 4or !istenin7 to Episode 3 o4 Let’s Ta!% Bit&oin.

• 8e7as 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

• Amir 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 T#in% i44erent’' an App!e &ommer&ia! 4rom t#e !ate J0s 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 &ontett#o7#t

Msi& 5as provided 4or t#is episode $ ,ared <ens' Ca!vin Henderson and Matt#e5Mr%o5s%i

Pestions or &omments Emai! adam!etsta!%it&oin.&om.

Have a 7ood one> 91:1:/1;



let's talk bitcoin, episode 73, "reset your expectations"

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