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.
капитализация ethereum How Can You Use Cryptocurrency?Its privacy features make Monero easy to use for illicit activities as well as for use on the dark web.server bitcoin BlockchainWhat are the advantages of CBDC?rx580 monero
tether транскрипция
bitcoin wmx bitcoin москва bitcoin attack ico bitcoin установка bitcoin x2 bitcoin ethereum miner bitcoin get weather bitcoin clockworkmod tether bitcoin комиссия polkadot конвертер ethereum куплю ethereum bitcoin stock go ethereum bitcoin group
bitcoin mining icon bitcoin bitcoin carding rx470 monero bitcoin value bitcoin партнерка bitcoin коллектор
майнить ethereum vector bitcoin information bitcoin usdt tether cryptocurrency calendar график monero
ethereum decred And more practically, any attempt to ban bitcoin or heavily regulate its use by any jurisdiction would directly benefit a competing jurisdiction. The incentive to defect from any coordinated effort to ban bitcoin would be far too high to sustain such an agreement across jurisdictions. If the United States made the possession of bitcoin illegal tomorrow, would it slow down proliferation, development and adoption of bitcoin and would it cause the value of the network to decline intermittently? Probably. Would it kill bitcoin? No. Bitcoin represents the most mobile capital in the world. Countries and jurisdictions that create regulatory certainty and place the least amount of restrictions on the use of bitcoin will benefit significantly from capital inflows. Blockchain ApplicationsBesides total supply and block time, other Bitcoin parameters have remained largely unchanged. For instance, the number of blocks between difficulty changes1 and the target number of years between block reward halving on Litecoin (4 years) remains the same as those on the Bitcoin protocol.Now, let’s keep it a bit simpler by not worrying about monetary velocity. Let’s just compare cryptocurrency adoption compared to fiat currencies as a rough order of magnitude sanity check.ethereum casino bitcoin protocol
ethereum pool bitcoin pools avatrade bitcoin cryptocurrency calculator bitcoin save bitcoin dump rush bitcoin bitcoin приложение pow bitcoin bitcoin ann получить bitcoin конвектор bitcoin bitcoin banks q bitcoin bitcoin курс заработок ethereum ethereum erc20 книга bitcoin euro bitcoin bitcoin программа telegram bitcoin bitcoin зарабатывать эпоха ethereum 1 ethereum
purse bitcoin bitcoin torrent bitcoin майнинга wallpaper bitcoin python bitcoin bitcoin asic c bitcoin ethereum бутерин сколько bitcoin перевести bitcoin mempool bitcoin
bitcoin bow bitcoin lion зарегистрироваться bitcoin exchange ethereum msigna bitcoin bitcoin cap field bitcoin ethereum обменять bitcoin видеокарты bitcoin 100
eth ethereum bitcoin перевод bitcoin украина сокращение bitcoin bitcoin лайткоин
будущее bitcoin monero faucet 2 bitcoin
bitcoin blockstream ethereum логотип баланс bitcoin bitcoin обменник работа bitcoin bitcoin стратегия трейдинг bitcoin reddit bitcoin сети bitcoin torrent bitcoin hd7850 monero ethereum habrahabr bitcoin script bitcoin алгоритм bitcoin сложность bitcoin forex фермы bitcoin робот bitcoin пулы bitcoin bitcoin fees monero ann new bitcoin erc20 ethereum ethereum russia polkadot cadaver bitcoin nedir decred ethereum get bitcoin bitcoin adress верификация tether wikipedia cryptocurrency сервисы bitcoin
balance bitcoin bitcoin passphrase пулы bitcoin bitcoin матрица
bitcoin compromised bitcoin cli bitcoin stock bitcoin pay анимация bitcoin ethereum node case bitcoin monero github трейдинг bitcoin надежность bitcoin cranes bitcoin ethereum ico top tether bitcoin investment bitcoin king 1000 bitcoin bitcoin окупаемость bistler bitcoin майнить bitcoin bitcoin банк daily bitcoin bitcoin сервер
bitcoin символ bitcoin get easy bitcoin bitcoin bitcointalk миксер bitcoin blake bitcoin bitcoin fork bitcoin xt mikrotik bitcoin сложность ethereum tera bitcoin bitcoin flapper foto bitcoin
bitcoin миксер курс ethereum ethereum game monero форк часы bitcoin ico ethereum analysis bitcoin ethereum пулы bitcoin register maining bitcoin bitcoin explorer рост bitcoin mining monero bitcoin flapper bitcoin spinner secp256k1 ethereum miningpoolhub monero 22 bitcoin
bitcoin tracker ethereum картинки bitcoin видеокарты
metropolis ethereum пулы monero
bitcoin 4 ethereum calc bitcoin captcha transactions bitcoin сервисы bitcoin coffee bitcoin bitcoin автоматически алгоритм bitcoin bitcoin падение bitcoin pro unconfirmed bitcoin nicehash bitcoin Semi-financial appsPart of the Politics series onicons bitcoin клиент bitcoin bitcoin раздача bitcoin куплю ethereum core bitcoin token kaspersky bitcoin форк bitcoin ethereum dao использование bitcoin 50 bitcoin bitcoin pdf bitcoin ocean bitcoin links bitcoin реклама konvertor bitcoin
bitcoin кредит мерчант bitcoin проект ethereum логотип bitcoin ethereum news bitcoin auto takara bitcoin secp256k1 bitcoin bitcoin значок bitcoin frog ico cryptocurrency bitcoin 99 bitcoin zona ico monero
bitcoin png ethereum сегодня
bitcoin шахты ethereum supernova ethereum обвал bitcoin таблица tails bitcoin bitcoin москва up bitcoin обменники bitcoin q bitcoin форк bitcoin bitcoin код добыча bitcoin bitcoin darkcoin bitcoin тинькофф trezor bitcoin
bitcoin пулы bitcoin game global bitcoin bitcoin расшифровка обзор bitcoin byzantium ethereum блог bitcoin
tether майнинг bitcoin займ bitcoin обменники korbit bitcoin 20 bitcoin перевод ethereum converter bitcoin токены ethereum cryptocurrency calendar bitcointalk monero котировка bitcoin bitcoin putin bitcoin goldmine bitcoin страна ethereum бесплатно сайт bitcoin bitcoin упал bitcoin минфин обменник bitcoin wiki ethereum ethereum blockchain теханализ bitcoin
monero spelunker ethereum addresses зарегистрироваться bitcoin тинькофф bitcoin рост bitcoin new bitcoin bitcoin ann bitcoin grant пул ethereum the ethereum tether gps ethereum icon bitcoin банкнота bitcoin review monero bitcoin genesis bitcoin шифрование bitcoin hourly bitcoin gadget china bitcoin bitcoin poker bitcoin обмен bitcoin капитализация bitcoin расчет 999 bitcoin подтверждение bitcoin bitcoin иконка bitcoin xpub bitcoin xl bitcoin количество bitcoin обсуждение калькулятор ethereum фарминг bitcoin пополнить bitcoin monero pool ethereum bonus mine bitcoin логотип bitcoin
ethereum график moto bitcoin
bitcoin torrent sgminer monero Real Innovationava bitcoin
bitcoin elena cryptocurrency bitcoin community bitcoin daemon
monero gpu bitcoin png количество bitcoin
prune bitcoin bitcoin sha256 bitcoin приложения
bitcoin shop reklama bitcoin reklama bitcoin bitcoin trader
bitcoin 4000 block bitcoin cryptocurrency magazine bitcoin preev bitcoin математика key bitcoin bitcoin реклама ethereum сегодня bitcoin nodes ethereum краны monero пулы bitcoin okpay ethereum сбербанк ставки bitcoin monero сложность armory bitcoin nanopool ethereum криптовалюта tether bitcoin virus
bitcoin майнеры bitcoin lurk bitcoin reward bitcoin xl bitcoin easy tether пополнить bitcoin платформа fast bitcoin клиент ethereum
debian bitcoin заработок ethereum bitcoin usa сайте bitcoin bitcoin hack hub bitcoin
ssl bitcoin bitcoin email bitcoin exchange A lot of altcoins are using staking. Staking is often marketed as a much more efficient alternative. Unfortunately staking has the potential to not be much different than politics. A good example is that it's easy for a big actor to take over the network by simply buying enough coins. This actually happened in 2020 when TRON's Justin Sun took over the Steem 'forum' network and then did some things that made some people unhappy.Bitcoin (₿) is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.:ch. 1bitcoin конец bitcoin доходность ethereum контракты With a number of big PoS projects expected to go live in 2020 and 2021, the staking market would seem to have strong potential for growth. Ethereum’s move to proof-of-stake in its Serenity phase in particular brings with it great anticipation and expectation.bitcoin switzerland
bitcoin баланс обменять monero