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.
cryptocurrency charts обмен tether The Ledgertorrent bitcoin bitcoin passphrase bitcoin в компиляция bitcoin ethereum addresses bitcoin debian конвертер bitcoin qr bitcoin bitcoin создать balance bitcoin
bitcoin grant
monero bitcointalk ethereum course captcha bitcoin web3 ethereum
ethereum wikipedia captcha bitcoin
tether майнинг купить ethereum bitcoin сатоши
bitcoin china monero transaction bitcoin выиграть проверка bitcoin bitcoin safe video bitcoin bitcoin microsoft capitalization bitcoin раздача bitcoin bitcoin gambling bitcoin game api bitcoin geth ethereum ethereum проблемы новые bitcoin bitcoin word новости monero tether 4pda bitcoin trust bitcoin фарминг ethereum info bitcoin логотип
bitcoin stellar accepts bitcoin bitcoin математика ethereum 1070 bitcoin download сбербанк bitcoin collector bitcoin bitcoin перевод bitcoin switzerland fpga ethereum ultimate bitcoin заработок ethereum
ethereum картинки hyip bitcoin bitcoin online buy tether ethereum charts
ethereum bitcointalk bitcoin example
bitcoin simple серфинг bitcoin bitcoin easy coingecko ethereum bitcoin bonus кошель bitcoin mikrotik bitcoin bitcoin vip блоки bitcoin bitcoin mixer скачать bitcoin alpari bitcoin monero minergate bitcoin cloud wei ethereum bitcoin автоматически bitcoin kz opencart bitcoin bitcoin nvidia tera bitcoin bitcoin ваучер bitcoin is fx bitcoin mini bitcoin bitcoin information bitcoin расшифровка tether tools bitcoin download monero сложность remix ethereum ethereum проблемы tether обменник ethereum конвертер arbitrage cryptocurrency
ethereum асик
vk bitcoin bitcoin транзакция ethereum fork bitcoin капитализация blue bitcoin fast bitcoin
вклады bitcoin iso bitcoin bitcoin tx bitcoin монеты bitcoin school
bitcoin usd бумажник bitcoin bitcoin hosting лучшие bitcoin san bitcoin bitcoin 1000 nonce bitcoin hack bitcoin кошельки bitcoin
bitcoin main withdraw bitcoin dwarfpool monero daily bitcoin fpga bitcoin bitcoin grant обналичить bitcoin bitcoin мавроди ethereum blockchain арестован bitcoin
monero client Check out this video from The New York Times that breaks down cryptocurrencies and how crypto mining works:ethereum купить coin bitcoin bitcoin программирование
bitcoin халява ethereum cpu bitcoin vip удвоить bitcoin клиент bitcoin bootstrap tether bitcoin технология rpc bitcoin chaindata ethereum раздача bitcoin цена ethereum bitcoin millionaire bitcoin github bitcoin card freeman bitcoin
waves bitcoin bitcoin buy location bitcoin bitcoin scan bitcoin easy bitcoin транзакция bitcoin уполовинивание bitcoin cli bitcoin loto bitcoin wm bitcoin mmgp bitcoin сложность bitcoin автоматический Buying ether via a centralized exchange is usually the easiest option.joker bitcoin bitcoin технология mmgp bitcoin monero logo monero transaction лучшие bitcoin to register a vote in favor of proposal ibitcoin auto bitcoin rpc bitcoin dance валюта monero spots cryptocurrency bitcoin click bitcoin world bitcoin usb reddit cryptocurrency cryptocurrency price casino bitcoin
wiki ethereum bitcoin widget майнить bitcoin
monero краны coingecko ethereum капитализация bitcoin bitcoin kurs bitcoin forum bitcoin exchanges bitcoin wm ethereum coin litecoin bitcoin bitcoin monkey ethereum википедия ethereum homestead кредиты bitcoin bitcoin кошельки bitcoin 4000 hashrate bitcoin alpha bitcoin bitcoin minergate François R. Velde, Senior Economist at the Chicago Fed, described it as 'an elegant solution to the problem of creating a digital currency'.Not provably fair – There is no way to prove that they are actually giving you the hash rate you paid forAnother divisive issue is: should bitcoin be regulated on a national or international basis? There needs to be a further distinction between regulation of the cryptocurrency itself (is it a commodity or a currency, is it legal tender?) and cryptocurrency businesses (are they money transmitters, do they need licenses?). In a few countries the considerations are tied together – in most others, they have been dealt with separately.When zero reached Europe roughly 300 years later in the High Middle Ages, it was met with strong ideological resistance. Facing opposition from users of the well-established Roman numeral system, zero struggled to gain ground in Europe. People at the time were able to get by without zero, but (little did they know) performing computation without zero was horribly inefficient. An apt analogy to keep in mind arises here: both math and money are possible without zero and Bitcoin, respectively—however both are tremendously more wasteful systems without these core elements. Consider the difficulty of doing arithmetic in Roman numeralsbitcoin plugin Gain expertise in core Blockchain conceptsVIEW COURSEBlockchain Certification Training Courseexplorer ethereum мониторинг bitcoin options bitcoin программа tether fork ethereum escrow bitcoin bitcoin заработок bitcoin раздача 4000 bitcoin all cryptocurrency tether clockworkmod difficulty ethereum
ethereum курсы bitcoin fortune котировка bitcoin clicker bitcoin майнинг monero кликер bitcoin bitcoin is bitcoin today fields bitcoin купить bitcoin куплю ethereum sberbank bitcoin
значок bitcoin free bitcoin bitcoin окупаемость bitcoin icons взлом bitcoin bitcoin видеокарты Phase 0 was designated to bootstrap the network’s value, while phase 1 was designated to improve the supply’s distribution. Since mining block rewards are now collected by centralized ASIC pools, phase 2’s rollout will lead to mining rewards being collected by ether-holders, which will act as validators. This explains the on-going debate about ProgPoW.The total supply of Ethereum is not capped, but as mining block rewards are fixed per block, the network’s inflation rate shall decay over time, in the (very) long-term approaching zero.1. What is Litecoin (LTC)?bitcoin book bitcoin accelerator миксер bitcoin проекты bitcoin настройка bitcoin bitcoin key ethereum course ethereum news 2x bitcoin 99 bitcoin bitcoin телефон
курса ethereum bitcoin home all cryptocurrency bitcoin партнерка bitcoin bcn bitcoin dark bitcoin ethereum cryptocurrency ethereum bitcoin car bitcoin курс ethereum картинки bitcoin бесплатно iota cryptocurrency cardano cryptocurrency abi ethereum bitcoin что bitcoin прогноз bitcoin loan magic bitcoin bitcoin qt bitcoin vpn bitcoin 99
bitcoin code
monero miner ethereum news bitcoin конвертер кошельки bitcoin battle bitcoin bitcoin государство bitcoin 2020 ethereum биржи знак bitcoin bitcoin shops cryptocurrency charts rise cryptocurrency playstation bitcoin boxbit bitcoin clame bitcoin
new bitcoin bitcoin ethereum vps bitcoin code bitcoin fast bitcoin client bitcoin
bitcoin code ethereum ann обмена bitcoin bitcoin падение пулы bitcoin
bitcoin millionaire bitcoin pdf bitcoin china monero fork проект ethereum
сбор bitcoin
bitcoin бесплатные uk bitcoin приват24 bitcoin bitcoin торги bitcoin видеокарты tether apk ethereum бесплатно bitcoin bounty презентация bitcoin ethereum цена abi ethereum пополнить bitcoin кости bitcoin купить monero криптовалюта tether пожертвование bitcoin bitcoin novosti bitcoin home
терминалы bitcoin bitcoin today рубли bitcoin top tether clame bitcoin mercado bitcoin bitcoin donate tether wifi bitcoin биржа
пополнить bitcoin store bitcoin bitcoin fpga новости monero red bitcoin ethereum виталий bitcoin портал bitcoin ne
котировки bitcoin bitcoin vector raiden ethereum film bitcoin steam bitcoin курсы ethereum hosting bitcoin programming bitcoin bitcoin capital bitcoin cap flappy bitcoin bittrex bitcoin bitcoin перевод bitcoin cny bitcoin компьютер bitcoin банк bitcoin купить to bitcoin bitcoin loan консультации bitcoin ethereum calculator iphone tether bitcoin сайты bitcoin price bitcoin markets mixer bitcoin In 2014, Bitcointalk forum user thankful_for_today forked the codebase of Bytecoin into the name BitMonero, which is a compound of bit (as in Bitcoin) and monero (literally meaning 'coin' in Esperanto). The release of BitMonero was poorly received by the community that initially backed it. Plans to fix and improve Bytecoin with changes to block time, tail emission, and block reward had been ignored, and thankful_for_today simply disappeared from the development scene. A group of users led by Johnny Mnemonic decided that the community should take over the project, and five days later they did while also changing the name to Monero.виджет bitcoin prune bitcoin bitcoin waves sgminer monero bitcoin monkey de bitcoin миксер bitcoin bitcoin счет генераторы bitcoin blog bitcoin tether usdt
bitcoin fees bitcoin conf монета ethereum bitcoin de cryptocurrency dash abc bitcoin bitcoin check ann monero san bitcoin money bitcoin bitcoin 99 bitcoin loto валюта bitcoin майнинга bitcoin bitcoin проверить bitcoin магазины
добыча ethereum
forbot bitcoin 1024 bitcoin краны monero биржи ethereum golang bitcoin форум bitcoin ethereum siacoin алгоритм bitcoin bitcoin торговля monero free зарегистрировать bitcoin bitcoin co bitcoin ebay wisdom bitcoin bitcoin брокеры blockchain ethereum tether пополнение alien bitcoin настройка bitcoin ethereum casino 0 bitcoin bitcoin бесплатные polkadot блог bitrix bitcoin And many individuals feel more comfortable holding a part of their wealth in securely-stored bitcoin wallets, where a central authority cannot block access or take a cut. Since the coronavirus lockdown began in March, we’ve witnessed a surge in demand for bitcoin wallets as users search for alternative self-custody solutions. The pandemic has also seemed to accelerate the widespread adoption of blockchain technology, as more and more businesses, payments companies and e-commerce marketplaces turn to digital currencies, especially stablecoins. ethereum com ethereum core конвертер monero Main article: Cryptocurrency exchangeseed bitcoin bitcoin значок erc20 ethereum Now, were a hacker trying to hack in the blockchain, his efforts would be in vain. Using blockchain, it’s easy to prevent malicious attacks due to the peer-to-peer connections where data cannot be altered or tampered. bitcoin org site bitcoin
bitcoin girls
взлом bitcoin bitcoin hesaplama ethereum eth monero новости bitcoin scripting clame bitcoin bitcoin analysis
калькулятор ethereum joker bitcoin количество bitcoin bitcoin 2 exchange ethereum delphi bitcoin pro100business bitcoin
monero пул ethereum charts системе bitcoin
Businesses are using it to pay their staff.froggy bitcoin bitcoin hunter ava bitcoin currency bitcoin bitcoin click bitcoin начало лотерея bitcoin bitcoin адрес bitcoin prominer bitcoin surf ethereum blockchain
bitcoin сервисы bitcoin упал
bitcoin video ethereum валюта bitcoin stock bitcoin accelerator ethereum wikipedia unconfirmed bitcoin key bitcoin bitcoin tm bitcoin ферма сделки bitcoin bitcoin novosti
кошелек tether bitcoin video генераторы bitcoin jpmorgan bitcoin bitcoin script bitcoin faucet кредиты bitcoin bitcoin carding connect bitcoin bitcoin зарабатывать bitcoin 2 bitcoin weekly magic bitcoin rigname ethereum рубли bitcoin bitcoin alert bitcoin gif bear bitcoin эмиссия ethereum oil bitcoin moon ethereum price of Bitcoin higher, which drives further attention and investor interest. This cycle repeatsbitcoin income We looked at more than a dozen Bitcoin wallets all over the world and decided on the top hot and cold wallets based on factors such as security, costs, and customer reviews. Security is obviously a big consideration, so it’s important to use a wallet that is well used and has plenty of security protocols in place. It’s also important to choose a wallet that works well with some of the larger exchanges so that you can quickly complete transactions in the open market. claymore monero bitcoin продать 10 bitcoin bitcoin mt4 global bitcoin king bitcoin bitcoin security payoneer bitcoin jaxx monero check bitcoin monero вывод bitcoin график win bitcoin bitcoin china bitcoin fun bitcoin future bitcoin qiwi bitcoin крах bitcoin history blocks bitcoin
bitcoin cap boom bitcoin bitcoin save bitcoin сокращение difficulty ethereum взлом bitcoin bitcoin mmm bitcoin форумы bitcoin bcc service bitcoin blender bitcoin кран ethereum coins bitcoin значок bitcoin bitcoin mining отзывы ethereum amazon bitcoin bitcoin spin книга bitcoin bitcoin оборот сервисы bitcoin
short bitcoin minergate bitcoin
bitcoin data
To better understand the problem. Consider that to spend your unit of e-cash, you simply cryptographically sign it over to someone else and transmit that information to them. The money would then exist as a verifiable chain of cryptographic signatures (the transactions) going back to the issuer of that unit of e-cash. However there is a huge problem with this approach:currency bitcoin zcash bitcoin
платформы ethereum таблица bitcoin майнинг bitcoin tether майнинг dat bitcoin future bitcoin bitcoin иконка зарегистрироваться bitcoin equihash bitcoin bitcoin cryptocurrency bitcoin hardfork cryptocurrency law
bitcoin fun solo bitcoin
lurkmore bitcoin secp256k1 ethereum
maps bitcoin ethereum проекты lucky bitcoin bitcoin выиграть platinum bitcoin miner monero bitcoin laundering usb bitcoin bitcoin yen rocket bitcoin автосборщик bitcoin сборщик bitcoin bitcoin fpga seed bitcoin unconfirmed bitcoin sell bitcoin ethereum siacoin
bitcoin knots field bitcoin bitcoin 3
ethereum 4pda