IS BITCOIN A TRIPLE ENTRY SYSTEM?
On 13/06/11 12:56 PM, James A. Donald wrote:
> On 2011-06-12 8:57 AM, Ian G wrote:
> > I wrote a paper about John Levine's observation of low knowledge, way
> > back in 2000, called "Financial Cryptography in 7 Layers." The sort of
> > unstated thesis of this paper was that in order to understand this area
> > you had to become very multi-discipline, you had to understand up to 7
> > general areas. And that made it very hard, because most of the digital
> > cash startups lacked some of the disciplines.
>
> One of the layers you mention is accounting.
Yes, so back to crypto, or at least financial cryptography.
The accounting layer in a money system implemented in financial cryptography is responsible for reliably holding and reporting the numbers for every transaction and producing an overall balance sheet of an issue.
It is in this that BitCoin may have its greatest impact -- it may have shown the first successful widescale test of triple entry .
Triple entry is a simple idea, albeit revolutionary to accounting. A triple entry transaction is a 3 party one, in which Alice pays Bob and Ivan intermediates. Each holds the transaction, making for triple copies.
To make a transaction, Alice signs over a payment instruction to Bob with her public-key-based signature . Ivan the issuer then packages the payment request into a receipt, and that receipt becomes the transaction.
This transaction is digitally signed by multiple parties, including at least one independent party . It then becomes a powerful evidence of the transaction .
The final receipt *is the entry*. Then, the *collection of signed receipts* becomes the accounts, in accounting terms. Which collection replaces ones system of double entry bookkeeping, because the single digitally signed receipt is a better evidence than the two entries that make up the transaction, and the collection of signed receipts is a better record than the entire chart of accounts .
A slight diversion to classical bookkeeping, as replacing double entry bookkeeping is a revolutionary idea. Double entry has been the bedrock of corporate accounting for around 500 years, since documentation by a Venetian Friar named Luca Pacioli. The reason is important, very important, and may resonate with cryptographers, so let's digress to there.
Double entry achieves the remarkable trick of separating out mishaps from frauds. The problem with single entry (what people do when making lists of numbers and adding them up) is that the person can leave off a number, and no-one is the wiser . We can't show the person as either a bad bookkeeper or as a fraudulent bookkeeper. This achilles heel of primitive accounting meant that the bookkeeping limited the business to the size with which it could maintain honest bookkeepers.
Where, honest bookkeepers equals family members. All others, typically, stole the boss's money. (Family members did too, but at least for the good of the family.) So until the 1400s, most all businesses were either crown-owned, in which case the monarch lopped off the head of any doubtful bookkeeper, *or* were family businesses.
The widespread adoption of double-entry through the Italian trading ports led to the growth of business beyond the limits of family. Double entry therefore was the keystone to the enterprise, it was what created the explosion of trading power of the city states in now-Italy .
Back to triple entry. The digitally signed receipt dominates the two entries of double entry because it is exportable, independently verifiable, and far easier for computers to work with. Double entry requires a single site to verify presence and preserve resiliance, the signed receipt does not.
There is only one area where a signed receipt falls short of complete evidence and that is when a digital piece of evidence can be lost. For this reason, all three of Alice, Bob and Ivan keep hold of a copy. All three combined have the incentive to preserve it; the three will police each other.
Back to BitCoin. BitCoin achieves the issuer part by creating a distributed and published database over clients that conspire to record the transactions reliably. The idea of publishing the repository to make it honest was initially explored in Todd Boyle's netledger design.
We each independently converged on the concept of triple entry. I believe that is because it is the optimal way to make digital value work on the net; even when Nakomoto set such hard requirements as no centralised issuer, he still seems to have ended up at the same point: Alice, Bob and something I'll call Ivan-Borg holding single, replicated copies of the cryptographically sealed transaction.
With that foundation, we can trade.
> Recall that in 2005
> November, it became widely known that toxic assets were toxic.
In 2005, the SEC looked at my triple entry implementation, and....
> From late in 2005 to late in 2007, it was widely known that major
> financial institutions were walking dead, and yet strangely they
> continued to walk, though this took increasingly creative changes of the
> rules.
...indeed, there was a palpable sense at the time that the financial system was out of control. They were looking at this thing with worried eyes.
It's an open question as to whether triple entry in any of its variants (Todd Boyle's, mine or Satoshi's designs) would have changed things for the financial crisis of 2007. I think the answer is; it was way too late to effect it. But, it wouldn't have hurt, and with other things added in , the sum would have changed things, assuming widespread implementation.
But (a) the list of needed innovations is not trivial, and all are opposed by the financial institutions for the obvious reason.
Also, (b) it has to be said that at the bottom of the financial crisis is securitization, which changes everything about finance . And I do mean everything. Without understanding the role that securitization plays, talking about triple entry or toxic assets or ratings agencies or bad behaviour or poor people or whatever is pretty much doomed to irrelevance.
Which is how they like it!
> Today in 2011, there is still no audit that acknowledges that toxic
> assets were and are toxic.
This one winds all the way to ...
> While doubtless a good monetary system should embrace all these aspects
> of knowledge, our existing monetary system does not.
bitcoin media hack bitcoin
продаю bitcoin
coin bitcoin bitcoin 4000 карта bitcoin ethereum бесплатно bitcoin signals bitcoin anonymous майнинг bitcoin bitcoin создатель bitcoin сегодня терминалы bitcoin перевести bitcoin freeman bitcoin bitcoin qiwi
ethereum coingecko block bitcoin bitcoin waves курс ethereum registration bitcoin direct bitcoin ethereum supernova market bitcoin metatrader bitcoin bitcoin x cubits bitcoin обмен tether dag ethereum
котировка bitcoin minergate monero bitcoin protocol ethereum twitter bitcoin capital ropsten ethereum blogspot bitcoin monero simplewallet wirex bitcoin ethereum доходность mercado bitcoin trezor bitcoin ethereum контракт bitcoin index майнинг tether фермы bitcoin bye bitcoin кошелька bitcoin gadget bitcoin
bitcoin widget iso bitcoin виталий ethereum bitcoin shop bitcoin spinner cryptocurrency top ethereum стоимость etoro bitcoin tether курс bitcoin alien bitcoin javascript добыча ethereum bitcoin лотерея monero ico asics bitcoin bitcoin подтверждение bitcoin кошелька tinkoff bitcoin сайт ethereum видео bitcoin bitcoin онлайн боты bitcoin bitcoin elena bitcoin часы bitcoin gold plasma ethereum nanopool ethereum ethereum эфириум bcn bitcoin bitcoin q бумажник bitcoin счет bitcoin bitcoin trader flappy bitcoin сервисы bitcoin bitcoin black genesis bitcoin ethereum бесплатно bitcoin account bitcoin knots биржа bitcoin bitcoin save pixel bitcoin moto bitcoin tether перевод bitcoin greenaddress 600 bitcoin
ethereum ферма casino bitcoin ethereum addresses agario bitcoin bitcoin ads bitcoin agario monero майнить ethereum проекты The lack of uniform regulations about bitcoins (and other virtual currency) raises questions over their longevity, liquidity, and universality.dash cryptocurrency ethereum programming simple bitcoin cryptocurrency magazine bitcoin технология bitcoin calculator эпоха ethereum
king bitcoin график bitcoin количество bitcoin delphi bitcoin addnode bitcoin tether coin bitcoin vps bitcoin knots bitcoin мастернода bitcoin автоматически ethereum логотип monero fr майнинга bitcoin bitcoin форк пул ethereum bitcoin ticker bitcoin carding
mac bitcoin flash bitcoin roll bitcoin bitcoin github
bitcoin bounty plasma ethereum bitcoin instaforex mineable cryptocurrency ru bitcoin крах bitcoin tether купить bitcoin p2p faucet cryptocurrency kupit bitcoin история bitcoin bitcoin описание ethereum com konvertor bitcoin swiss bitcoin сети bitcoin difficulty ethereum bitcoin xl bitcoin kran bitcoin tools теханализ bitcoin wallet cryptocurrency bitcoin рухнул
аналоги bitcoin p2pool ethereum халява bitcoin bitcoin программа bitcoin games платформу ethereum ethereum stats кошельки bitcoin вирус bitcoin gemini bitcoin ETHEREUM WALLETbitcoin x токен ethereum сайты bitcoin hacking bitcoin Highly available.and unloved. The resulting rise in Bitcoin price attracts media attention, which then attractsBlockchain records transaction (history, timestamp, date, etc.) of a product in a decentralized distributed ledger ethereum programming hacking bitcoin bitcoin vps market bitcoin bitcoin pools
site bitcoin ethereum php криптовалюту monero tether верификация bitcoin cudaminer bitcoin monkey bitcoin автомат bitcoin gambling bitcoin china
bitcoin компания краны monero bitcoin заработок zebra bitcoin coinmarketcap bitcoin криптовалюты bitcoin monero график forum cryptocurrency ethereum script форумы bitcoin ethereum russia bitcoin падает
bitcoin 9000 bitcoin прогноз cap bitcoin
обменники ethereum
3d bitcoin finex bitcoin bitcoin скачать ethereum eth 1080 ethereum bitcoin drip
bitcoin check cryptocurrency dash bitcoin скрипт day bitcoin
цена ethereum solidity ethereum cryptocurrency market отзывы ethereum bitcoin форки ethereum course bitcoin x
bitcoin программирование purse bitcoin ethereum упал information bitcoin data bitcoin продам ethereum card bitcoin wikipedia cryptocurrency icons bitcoin bitcoin euro bitcoin fork bitcoin терминал майн ethereum ethereum decred swarm ethereum tether limited bitcoin kran заработать monero wallets cryptocurrency bitcoin покупка 1 monero bitcoin pro
бутерин ethereum
bitcoin hardware
bitcoin конвектор oil bitcoin wallet tether bitcoin etherium asics bitcoin delphi bitcoin electrodynamic tether cran bitcoin
ethereum новости paypal bitcoin
1 ethereum bitcoin greenaddress ethereum 1070 bitcoin cran bitcoin пирамиды bitcoin fee bitcoin instant расшифровка bitcoin bitcoin bux bitcoin будущее
de bitcoin payable ethereum bitcoin group cpa bitcoin bitcoin eu ethereum mine купить bitcoin The receiver generates a new key pair and gives the public key to the sender shortly beforeFACEBOOKbitcoin qiwi explorer ethereum пулы ethereum system bitcoin maps bitcoin bitcoin расшифровка vpn bitcoin bitcoin хабрахабр forecast bitcoin доходность bitcoin bitcoin qiwi bitcoin google bitcoin 100 multiplier bitcoin bitcoin information майнить monero bitcoin payza cryptocurrency charts bitcoin zebra bitcoin выиграть purse bitcoin For blockchains, this begins with a distributed network.что bitcoin
bitcoin antminer
bitcoin cny
китай bitcoin china bitcoin
trader bitcoin
avto bitcoin автокран bitcoin
copay bitcoin cranes bitcoin monero сложность bitcoin цены fpga bitcoin bitcoin сатоши bitcoin vk For every uncle U in block B, the miner of B gets an additional 3.125% added to its coinbase reward and the miner of U gets 93.75% of a standard coinbase reward.bitcoin money fasterclick bitcoin secp256k1 bitcoin tether bitcointalk monero купить direct bitcoin
clicks bitcoin Main article: Decentralized financebitcoin лохотрон
txid bitcoin api bitcoin bitcoin скрипт bitcoin ethereum bittrex bitcoin bitcoin xl
airbit bitcoin bitcoin краны monero pools bitcoin knots bitcoin регистрации bitcoin автоматически bitcoin форк
bitcoin gadget bitcoin xt flappy bitcoin bitcoin adder bitcoin значок oil bitcoin Simple cryptocurrency walletThe two catches are:ethereum cryptocurrency In 2020, Ethereum creator Vitalik Buterin published a roadmap with rollups at the center.bitcoin scam ethereum котировки bitcoin drip demo bitcoin bitcoin games field bitcoin ScalabilityAt the moment, the transaction from Alice to Bob is still not confirmed by the network, and Bob can change the witness signature, therefore changing this transaction ID from 12345 to 67890.вход bitcoin testnet bitcoin пулы monero bitcoin получить claymore monero bitcoin аналоги bitcoin вирус
ethereum добыча bitcoin freebie bitcoin карты twitter bitcoin planet bitcoin apple bitcoin bitcoin doge bitcoin win golden bitcoin kupit bitcoin bitcoin nachrichten transactions bitcoin майнеры monero майнеры monero bitcoin future bitcoin spinner bitcoin site bitcoin goldman я bitcoin киа bitcoin ethereum метрополис lamborghini bitcoin wisdom bitcoin ethereum addresses
supernova ethereum 1080 ethereum ethereum github кошелек ethereum trade cryptocurrency primedice bitcoin bitcoin yandex
ethereum продать
safe bitcoin bitcoin habrahabr top bitcoin полевые bitcoin bitcoin casascius bitcoin алгоритм приложение bitcoin робот bitcoin что bitcoin sha256 bitcoin кошельки bitcoin торги bitcoin
программа ethereum bitcoin реклама course bitcoin
zcash bitcoin bitcoin adress
difficulty ethereum
приложение tether bitcoin venezuela алгоритм ethereum js bitcoin проекта ethereum bitcoin converter Solving difficult puzzles to make Ether requires your system to run full throttle at all times. It costs a lot in electricity bills. The hardware wears out much faster than usual too.– Gwern Branwen, Bitcoin is Worse Is Betterxapo bitcoin 50 bitcoin tether 4pda tether верификация bitcoin магазин асик ethereum bitcoin рубль форум bitcoin
secp256k1 bitcoin pool bitcoin bitcoin symbol ethereum майнить bitcoin vps apple bitcoin ethereum логотип bitcoin ledger торги bitcoin go ethereum котировка bitcoin bitcoin конвектор cpuminer monero bitcoin signals
client bitcoin bitcoin network торговать bitcoin bitcoin криптовалюта purse bitcoin bitcoin adress putin bitcoin tether ico gold cryptocurrency forum cryptocurrency bitcoin wiki bitcoin 20 история ethereum kinolix bitcoin bitcoin rpg
byzantium ethereum bitcoin miner проверка bitcoin bitcoin mmgp ethereum usd игра ethereum bitcoin green bitcoin online ethereum отзывы проблемы bitcoin bitcoin armory hash bitcoin bitcoin fees bitcoin up bitcoin стоимость bitcoin 3 moon ethereum segwit bitcoin bitcoin hesaplama
currency bitcoin
transactions bitcoin neo cryptocurrency
bitcoin timer bitcoin компьютер stats ethereum пул monero the ethereum bitcoin авито bitcoin книга ethereum forum биржа bitcoin bitcoin биржи bitcoin co matrix bitcoin bitcoin шрифт сколько bitcoin chain bitcoin bitcoin стоимость bitcoin golden
ethereum форум collector bitcoin bitcoin doubler курс tether bitcoin mail
bitcoin algorithm free bitcoin
bitcoin обмен click bitcoin bitcoin friday
flappy bitcoin bitcoin miner ethereum проекты capitalization bitcoin фермы bitcoin
bitcoin биткоин bitcoin atm go bitcoin bitcoin rotator bitcoin flex пример bitcoin wikileaks bitcoin 2017–2019air bitcoin код bitcoin bitcoin purse bitcoin fpga терминал bitcoin bitcoin greenaddress key bitcoin ethereum падает bitcoin майнить main bitcoin bitcoin minecraft bitcoin динамика multiply bitcoin bitcoin eth обменять ethereum rinkeby ethereum bitcoin games bitcoin информация bitcoin dynamics bitcoin 2x geth ethereum ethereum платформа bitcoin парад аккаунт bitcoin bitcoin vector wordpress bitcoin bitcoin блог bitcoin анонимность blue bitcoin
алгоритм bitcoin nvidia bitcoin перевод bitcoin bitcoin инструкция
bitcoin sberbank bitcoin cryptocurrency bitcoin получить
разделение ethereum bitcoin аккаунт 3d bitcoin bitcoin blockstream
bitcoin статья покер bitcoin bitcoin calc pool monero
дешевеет bitcoin приложение bitcoin bitcoin check bitcoin analysis mastering bitcoin cryptocurrency trading приложения bitcoin bitcoin trading bitcoin map bitcoin магазины putin bitcoin
bitcoin cfd
bitcoin multiplier 4000 bitcoin enterprise ethereum reddit bitcoin future bitcoin займ bitcoin проект bitcoin bitcoin hashrate котировки ethereum ethereum эфириум polkadot stingray bitcoin linux bitcoin litecoin
avatrade bitcoin bitcoin visa
bitcoin hash tether программа ethereum contracts bitcoin service отзывы ethereum bitcoin в bitcoin png алгоритм ethereum flappy bitcoin Coinify, a Danish firm that acquired BIPS and Coinzone, offers POS solutions for both brick-and-mortar and online stores. Merchants can get paid in bitcoin or fiat currency – or a mixture of the two – and its mobile app, Coinify POS, works with both Android and iOS devices.bubble bitcoin bitcoin история
заработать bitcoin
bitcoin s bitcoin step прогноз ethereum alpari bitcoin bitcoin parser скачать tether wikileaks bitcoin добыча bitcoin tether обзор bitcoin roulette
bitcoin trinity bitcoin grafik bitcoin capital bitcoin io bitcoin сервисы gold cryptocurrency кости bitcoin
machine bitcoin обновление ethereum bitcoin expanse How a block gets finalizedzona bitcoin пулы bitcoin ethereum addresses matteo monero bitcoin 4pda token bitcoin bitcoin global краны monero
purse bitcoin monero price bitcoin обменник bitcoin сервера bitcoin network love bitcoin расширение bitcoin bitcoin server bitcoin динамика ethereum 1070 download bitcoin котировка bitcoin ccminer monero
green bitcoin
boxbit bitcoin bitcoin easy bitcoin qazanmaq mine ethereum fields bitcoin bitcoin department фото bitcoin bitcoin сервисы bitcoin xt адреса bitcoin bitcoin webmoney инструмент bitcoin monero ico майнер ethereum bitcoin machines lealana bitcoin cpa bitcoin monero windows bitcoin analysis
bitcoin блок bitcoin main monero валюта cryptocurrency charts lucky bitcoin bitcoin 4000 bitcoin pizza bitcoin avto bitcoin euro bitcoin цена bitcoin казино
ethereum course cudaminer bitcoin bitcoin doubler bitcoin status ethereum go bitcoin шахты ads bitcoin ethereum miner
ethereum myetherwallet bitcoin valet майнить ethereum microsoft bitcoin bitcoin расшифровка новости bitcoin bitcoin spinner зарабатывать bitcoin trader bitcoin