- Maciej Ceglowski on Our Internet — If you haven’t already read this because someone pushed it into your hands, read it now. If these vast databases are valuable enough, it doesn’t matter who they belong to. The government will always find a way to query them. Who pays for the servers is just an implementation detail.
- Design Changes Possible With Robot Cars (Brad Templeton) — While a nice windshield may be good for visibility for forward-facing passengers, there is no need to have a large unobstructed view for safety. The windshield can be reinforced with bars, for example, allowing it to be much stronger in the case of impacts, notably impacts with animals. Other than for passenger comfort, the windshield barely has to be there at all. On behalf of everyone who has ever driven in Australia at dusk … I for one welcome our new robot chauffeurs. (via The Atlantic)
- Bitcoin Set to Overtake Paypal Transaction Volumes — “In the next one or two years, Bitcoin can surpass the dollar transaction volumes of other established payment companies including Discover, and even American Express, MasterCard, and Visa,” said SmartMetric CEO Chaya Hendrick. (via Hamish McEwan)
- 1 in 5 Americans Has Their Physical Environment on the Internet (Quartz) — One in five adult American internet users already has a device at home that connects the physical environment to the internet, according to a Forrester Research report (paywall) out last week.
ENTRIES TAGGED "bitcoin"
When the mining subsidies end, will the bitcoin network centralize into a bank?
Radar has a backchannel, and sometimes we have interesting conversations on it. Mike Loukides and I recently had a long chat about bitcoin. Both of us were thinking out loud and learning as we went along, and on re-reading the thread I’m astonished by our advanced level of ignorance. I would like to publish it because it hints at just how hard it is to understand the bitcoin network. The founding papers that describe the system leave a lot of implementation to the imagination, and the level of mis(dis?)information around the web is staggering. It’s no small thing to get the basics right. But beyond the basics, the bitcoin network has that property of an inside-out onion, where the harder you look, the more (and bigger slices of) complexity you find.
Anyway, we’re not going to publish it. I don’t mind looking stupid, but I don’t want to look that stupid — also, the comments would be torture.
However, some of the things we were wondering about are worth wondering about publicly. Especially this: what happens when the mining subsidies end? Will transaction fees pick up the slack? I think ultimately the answer is yes, but maybe not in the way a lot of people expect. Read more…
The MtGox bitcoin exchange failure illustrates exactly how capitalism should work.
This post originally appeared on Andreas Antonopoulos’ personal biographical site; it is republished here with permission.
In the free market, failure is always an option. The United States has one of the world’s most vibrant entrepreneurial cultures, where millions of people start small businesses, create new products and invent new technology. Part of the startup culture is the idea of failing fast, failing cheap and failing toward success by learning the lessons taught by failure. Cultures that punish even minor failure in business with shame, exclusion and stigma are far less likely to foster entrepreneurs because they prevent experimentation by making it too risky.
Recently, the US has been infected by the “failure is not an option” mantra, a toxic hubristic fallacy, disguised as a truism, which promotes the idea that risk can be removed from life; that 100% security and 100% control are possible, even desirable. Those who attempt to remove the possibility of failure, to de-risk financial systems, end up creating the probability of spectacular failure. By removing the option to fail cheap and fail fast, they instead concentrate risk and ensure we will fail hard, fail expensively, and fail across the board.
Over time, crypto-currency networks such as bitcoin will get stronger
If a crook gets access to the credit card or wire transfer networks, it’s a disaster. That’s because, as I explained in my recent article about security models, these traditional financial networks achieve trust by excluding bad actors through access control. Effective access control requires exclusivity and strict vetting, only a small carefully vetted group of “trusted actors” are granted control.
Bitcoin and other crypto-currencies based on the blockchain invention are different. Trust is based on computation, not access control. On the bitcoin network you trust math so everyone can have access. That also means that there will be bad actors, arguably just as there are on access control networks, and nuisance attacks. Fortunately, these types of attacks cannot affect the distributed asset ledger, the blockchain, because to achieve the level of trust to write into the ledger you must apply enormous distributed computation. The root of trust is in the majority of computing power, not individual actors or any central authority.