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.
Mining and Circulationfree bitcoin bitcoin brokers
top tether
bitcoin nedir
bitcoin bloomberg ethereum course форум bitcoin bitcoin бонусы миксер bitcoin bitcoin trading cryptocurrency dash cryptocurrency analytics отдам bitcoin bitcoin значок flypool monero bitcoin миллионеры автомат bitcoin tether приложение excel bitcoin
лохотрон bitcoin ethereum charts bitcoin rotators monero algorithm bonus bitcoin bitcoin captcha bitcoin разделился приложение tether bitcoin коды обмен tether x2 bitcoin
x2 bitcoin bitcoin доллар bitcoin 9000
bitcoin pools bitcoin лохотрон autobot bitcoin
bitcoin doubler ethereum twitter bitcoin терминалы lurk bitcoin bitcoin config red bitcoin dark bitcoin bitcoin ishlash 2. Crypto Mining Is Expensivechina bitcoin
bitcoin bloomberg
bitcoin click electrum bitcoin ethereum видеокарты bitcoin мерчант мониторинг bitcoin cryptocurrency charts json bitcoin rotator bitcoin bitcoin download ethereum erc20 tether обменник ethereum проект bitcoin make bitcoin сделки
Blockchain has come to the forefront of many discussions because of its role in distributing cryptocurrencies like bitcoin. In the long run, these digital cash transactions may become a small part of blockchain technology's overall footprint and the way assets are transferred online.ethereum кошельки bitcoin клиент monero client In this case, let’s say you’re just lucky enough to be the one to solve it. You send a shout-out to all of the other miners on the network to say that you’ve done it and to have them verify as much.Supports more than 1500 coins and tokensbitcoin автоматически monero 1070 bitcoin legal cryptocurrency charts fee bitcoin bitcoin rpc ethereum падение bitcoin adress cubits bitcoin instaforex bitcoin pool bitcoin keepkey bitcoin
block bitcoin bitcoin market
bitcoin uk майн bitcoin cryptocurrency bitcoin prune explorer ethereum ethereum mine clame bitcoin стоимость monero ethereum android auction bitcoin bitcoin purchase продажа bitcoin hashrate bitcoin bitcoin nyse bitcoin metatrader plasma ethereum bitcoin bazar ethereum курс ethereum ethereum contracts ethereum blockchain wikipedia ethereum bitcoin spinner майнер ethereum bitcoin мастернода
Now, if your bank gets hacked similarly - 5 key operatives in the bank decide to swipe your money and pretend it was external hackers - SWIFT transfers are made to accounts in Russia and China. Here it will always ultimately be at the discretion of legal agencies whether you 'actually' still have the money that is stolen. Because dollars are not real, they can be created at a whim, and while reversing international transfers is not quite so simple, very often that reversal can be achieved (e.g. recent SWIFT hack at bangladesh bank; $1 billion stolen, all but $80 million 'recovered' (just means wire transfers reversed)). Added to that consider that fiat money is insured, so even when transfers can't be reversed, the money can be 'recovered'. If too many banks get hacked all at once the Federal Reserve and the government together can make up some 'fund' that magically reassigns balances any time they like, with sufficient political will (that's essentially what was happening in 2008 TARP etc).cryptocurrency mining kong bitcoin ethereum transaction bitcoin pro ethereum miner bitcoin trust forum bitcoin wallets cryptocurrency bitcoin удвоить bitcoin коллектор кошелек bitcoin nanopool ethereum отзывы ethereum bittorrent bitcoin bitcoin вложить bitcoin коллектор
index bitcoin bitcoin карты
ethereum mist bitcoin 123 Where to Buy Ripple and What Is Ripple - A Full Ripple ReviewTWITTERrub bitcoin Of course, like all Antminer units, the R4 is built by the Chinese Bitcoin mining giants Bitmain. Bitmain is something of a controversial company. In fact, in 2017, they were accused of delaying the important SegWit upgrade to the Bitcoin network. bitcoin оборудование anomayzer bitcoin bitcoin code
token bitcoin ethereum news bitcoin carding bitcoin payeer bitcoin переводчик scrypt bitcoin antminer bitcoin bitcoin msigna bitcoin neteller ethereum хардфорк bitcoin machine ethereum txid bitcoin clouding china bitcoin bitcoin project bitcoin мастернода alipay bitcoin pay bitcoin charts bitcoin Once enough transactions are added to the block, additional info is added as well, including the header data and hash from the previous block in the chain and a new hash for the new block. What happens here is that the header of the most recent block and a nonce are combined to generate the new hash. This hash gets added to the unconfirmed block and will then need to be verified by a miner node.Until crypto is more widely accepted, you can work around current limitations by exchanging cryptocurrency for gift cards. At eGifter, for instance, you can use Bitcoin to buy gift cards for Dunkin Donuts, Target, Apple and select other retailers and restaurants. You may also be able to load cryptocurrency to a debit card to make purchases. In the U.S., you can sign up for the BitPay card, a debit card that converts crypto assets into dollars for purchase, but there are fees involved to order the card and use it for ATM withdrawals, for example.circle bitcoin ethereum mist bitcoin grant alien bitcoin bitcoin hub bitcoin stellar bitcoin fund cryptocurrency gold mining bitcoin bitcoin транзакция mastering bitcoin registration bitcoin ethereum dag сбербанк bitcoin ethereum twitter кошелька bitcoin валюта bitcoin bitcoin poker otc bitcoin bitcoin demo bitcoin phoenix bitcoin dogecoin bittorrent bitcoin алгоритмы bitcoin battle bitcoin people bitcoin
bitcoin терминал flappy bitcoin agario bitcoin
bitcoin генераторы arbitrage cryptocurrency доходность ethereum in bitcoin field bitcoin bitcoin win bitcoin difficulty автомат bitcoin рост bitcoin cryptocurrency gold
bitcoin pro ava bitcoin
bitcoin txid fasterclick bitcoin armory bitcoin playstation bitcoin maps bitcoin bitcoin инвестирование 5 bitcoin ethereum биржа 4 bitcoin bittorrent bitcoin bitcoin перевод autobot bitcoin bitcoin solo reindex bitcoin bitcoin brokers торги bitcoin rigname ethereum
bitcoin wm майнинга bitcoin coinmarketcap bitcoin mercado bitcoin bitcoin вконтакте bitcoin tools bitcoin p2p trade cryptocurrency stealer bitcoin bitcoin создать So, besides statistics, how exactly do Bitcoin and Ethereum match up?форк ethereum
bitcoin алгоритм ethereum
bitcoin scan
planet bitcoin all bitcoin bitcoin cracker bitcoin faucet monero xeon ethereum io land bitcoin
planet bitcoin ethereum покупка ethereum miners bitcoin игры js bitcoin шрифт bitcoin bitcoin обзор аккаунт bitcoin
bitcoin node Bitcoin paper wallet helps you to print your own tamper-resistant Bitcoin wallet. It minimizes the threat of hacking.bitcoin paper bitcoin заработок ethereum twitter miningpoolhub monero bitcoin nvidia
casinos bitcoin rocket bitcoin bitcoin даром coins bitcoin bitcoin future ethereum mist bitcoin сайт hd7850 monero
cryptocurrency capitalisation airbit bitcoin bitcoin betting bitcoin форум фермы bitcoin bitcoin bittorrent tether приложение криптовалюта monero
bitcoin математика japan bitcoin bitcoin перевести blocks bitcoin bitcoin golden bitcoin capitalization bitcoin cards monero cpuminer доходность bitcoin
Lack of ability to change the Bitcoin mining softwarebitcoin get blogspot bitcoin 0 bitcoin bitcoin easy эфир bitcoin программа bitcoin
xpub bitcoin minergate bitcoin bitcoin валюты bitcoin arbitrage bitcoin доходность bitcoin client trust bitcoin bitcoin fox Ethereum, and with it Ether, are user-supported products that are built on a ledger system, allowing all computers on the network to see the full history of all transactions. This creates continuous transparency but as networks and supporters grow, factors emerge that can affect the protocols and price of Ether.monero cryptonote
ann bitcoin bitcoin lucky bitcoin valet bitcoin nyse продажа bitcoin plus500 bitcoin bitcoin scan bitcoin security What makes a double spend unlikely, though, is the size of the Bitcoin network. A so-called 51% attack, in which a group of miners theoretically control more than half of all network power, would be necessary. By controlling a majority of all network power, this group could dominate the remainder of the network to falsify records. However, such an attack on Bitcoin would require an overwhelming amount of effort, money, and computing power, thereby rendering the possibility extremely unlikely.13 14monero logo
бесплатно bitcoin market bitcoin kinolix bitcoin tether кошелек ethereum создатель bitcoin antminer bitcoin hd бесплатный bitcoin dance bitcoin ethereum pools ethereum проекты all cryptocurrency A private blockchain, just as it sounds, allows a business to place restrictions on who has access to data, and who can make transactions on the network. Meanwhile, public blockchains allow anyone to join and participate. Bitcoin is an example of a public blockchain.купить ethereum polkadot stingray bitcoin currency coffee bitcoin ethereum forks bitcoin forbes
проверка bitcoin red bitcoin bitcoin script bitcoin основатель usb bitcoin
bitcoin script bitcoin вложения bitcoin prominer
bitcoin ann microsoft bitcoin ethereum mist bitcoin heist dorks bitcoin
In the example from the picture below, we’re using a single DragonMint T1 miner mining on the Slush mining pool. Our electricity is about the average rate in the UK. You’ll want to shop around to find the lowest cost of electricity in your area possible, however!How to mine Bitcoin: calculate expected profits on CryptoCompare.ethereum биржа bitcoin краны bitcoin что coinder bitcoin Bitcoin and Ethereum are currently using a PoW (Proof-of-Work) system to validate transactions. However, Ethereum plans to do an update this year which will move Ethereum over to a PoS (Proof-of-Stake) system. The difference between the two systems is complicated but put simply, they are two different ways of verifying transactions on the blockchain.работа bitcoin fields bitcoin
bitcoin satoshi bitcoin cranes bitcoin hyip
dollar bitcoin 777 bitcoin bitcoin goldmine golang bitcoin ethereum регистрация ico monero bitcoin weekly скрипт bitcoin bitcoin хайпы аккаунт bitcoin ethereum упал bitcoin форумы bitcoin check wallet tether best bitcoin bitcoin millionaire tether gps faucet cryptocurrency bitcoin xl команды bitcoin Central banks create more and more money which causes savings to be perpetually devalued. The entire incentive structure of money is manipulated, including the integrity of the scorecard that tracks who has created and consumed what value. Value created today is ensured to purchase less in the future as central banks allocate more units of the currency arbitrarily. Money is intended to store value, not lose value and with monetary economics engineered by central banks, everyone is unwittingly forced into the position of taking risk as a means to replace savings as it is debased. The unending devaluation of monetary savings forces unwanted and unwarranted risk taking on to those that make up the economy. Rather than simply benefiting from risks already taken, everyone is forced to take incremental risk.daemon monero биржа ethereum Bitcoin uses encryption, and thus is not really able to be confiscated other than through legal demand. However, governments can ban exchanges and make it illegal to own Bitcoin, which would drive out institutional money and put Bitcoin into the black market.bitcoin qiwi dog bitcoin payza bitcoin форк ethereum hack bitcoin bitcoin bitrix bitcoin farm bitcoin баланс bitcoin local php bitcoin wmx bitcoin
monero price bitcoin capitalization block ethereum bitcoin fasttech bitcoin команды bitcoin упал moneypolo bitcoin технология bitcoin
polkadot bitcoin rt algorithm ethereum системе bitcoin
blocks bitcoin
новости monero windows bitcoin monero fr bitcoin easy bitcoin accepted
bitcoin fields
monero price bitcoin habr
bitcoin converter trust bitcoin space bitcoin
blocks bitcoin xpub bitcoin ethereum биткоин monero minergate mikrotik bitcoin bitcoin хабрахабр Difficulty of Mining Bitcoin 