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.
компиляция bitcoin форумы bitcoin The financial sector has captured a larger percentage of the economy over time because there is greater demand for financial services in a world in which money is constantly impaired. Stocks, corporate bonds, treasuries, sovereign bonds, mutual funds, equity ETFs, bond ETFs, levered ETFs, triple levered ETFs, fractional shares, mortgage-backed securities, CDOs, CLOs, CDS, CDX, synthetic CDS/CDX, etc. All of these products represent the financialization of the economy, and they become more relevant (and in greater demand) when the monetary function is broken.lucky bitcoin криптовалюту monero bitcoin code bitcoin price
анонимность bitcoin
bitcoin json пицца bitcoin bitcoin сбор to bitcoin bitcoin 4096
кран ethereum
bitcoin alien exchange cryptocurrency оплатить bitcoin weather bitcoin bitcoin anonymous bitcoin eth зарегистрироваться bitcoin cryptonator ethereum invest bitcoin tails bitcoin playstation bitcoin rate bitcoin free bitcoin bitcoin database sun bitcoin ethereum serpent To understand more about Ethereum, let’s take a little look at some of Ethereum’s history.bitcoin заработка bitcoin space
When people started mining Litecoin in 2011, it was possible to buy GPUs to help do this. However, as GPUs are not powerful enough anymore, they can no longer be used!Litecoin ValueElliptic Curve Diffie-Hellman-Merkle (ECDHM) addresses are bitcoin address schemes that increase privacy. ECDHM addresses can be shared publicly and are used by senders and receivers to secretly derive traditional Bitcoin addresses that blockchain observers cannot predict. The result is that ECDHM addresses can be 'reused' without the loss of privacy that usually occurs from traditional Bitcoin address reuse.raspberry bitcoin pull bitcoin автосборщик bitcoin tails bitcoin биржи monero bitcoin видеокарта
бесплатный bitcoin сервисы bitcoin bitcoin котировка bitcoin проверка bitcoin hub bitcoin форум bitcoin torrent
обналичить bitcoin bitcoin steam flappy bitcoin bitcoin monkey master bitcoin trezor bitcoin системе bitcoin bitcoin casino робот bitcoin monero майнер bitcoin комиссия
bitcoin википедия купить bitcoin Commerce on the Internet has come to rely almost exclusively on financial institutions serving askinolix bitcoin bitcoin сбор
bitcoin sign bitcoin fun bitcoin compromised ethereum асик токены ethereum курса ethereum bitcoin математика system bitcoin фермы bitcoin ethereum course котировки ethereum If you do decide to try cryptocoin mining, proceed as a hobby with a small income return. Think of it as 'gathering gold dust' instead of collecting actual gold nuggets. And always, always, do your research to avoid a scam currency. Satoshi Nakamoto originally created Bitcoin as an alternative, decentralized payment method. Unlike international bank transfers, it was low-cost and almost instantaneous. tether limited ethereum complexity ethereum studio bitcoin gold mine monero
ethereum ubuntu bitcoin tm deep bitcoin forum bitcoin
ethereum обмен service bitcoin bitcoin дешевеет key bitcoin bitcoin генератор tether криптовалюта tether майнинг bitcoin зебра javascript bitcoin ethereum twitter
equihash bitcoin bitcoin masters bitcoin atm подарю bitcoin
plus500 bitcoin bitcoin fpga doubler bitcoin bitcoin quotes ethereum web3 bitcoin пополнить exchange ethereum ethereum курсы bitcoin 4000 bitcoin withdraw
transaction bitcoin Reason 3) An Ideal Macro Backdropкотировки ethereum bitcoin блок bitcoin форекс fpga ethereum china bitcoin
bitcoin pools monero client bitcoin antminer monero coin
Another example of imbalance would be Ethereum Foundation. While Ethereum has a robust community of dapp (distributed application) developers, the core protocol is determined by a small group of project leaders. In preparation for Ethereum’s Constantinople hard fork, the developers made the decision to reduce mining rewards by 33 percent without consulting the miners. Over time, alienating miners leads to a loss of support from a major group of stakeholders (the miners themselves) and creates new incentives for miners to attack the network for profit or revenge.dag ethereum It is necessary to specify the version number of Solidity at the beginning of code as it eliminates incompatibility errors that can arise while compiling with another version. This is a mandatory clause that has to be there at the top of any Solidity code you write. You also need to mention the correct version number for the code.новости monero bitcoin shop payeer bitcoin Due to the fact that many ICOs intend to release their own tokens on the Ethereum network in the coming months, many expect to see Ethereum rise back up to its all-time high value and even pass it. For this reason, buying into Ether while it is still considered down in value may make a good opportunity to invest.bitcoin fire bitcoin cash взлом bitcoin разделение ethereum bitcoin map bitcoin click bitcoin video
block ethereum usa bitcoin change bitcoin вебмани bitcoin технология bitcoin bitcoin деньги darkcoin bitcoin secp256k1 bitcoin cryptocurrency chart оплатить bitcoin bitcoin 2048 скачать bitcoin bitcoin poker bitcoin автосерфинг tether скачать ethereum mist bitcoin значок
россия bitcoin bitcoin node bitcoin tor geth ethereum удвоитель bitcoin fast bitcoin bitcoin status
статистика ethereum скрипты bitcoin php bitcoin bitcoin msigna monero форум china cryptocurrency
ethereum foundation bitcoin куплю bitcoin satoshi bitcoin 10000 bitcoin курс ethereum ann
hashrate bitcoin fork ethereum decred cryptocurrency bitcoin валюты bitcoin пицца bitcoin s форк bitcoin bitcoin аккаунт kaspersky bitcoin
bitcoin рулетка bitcoin weekend bitcoin yandex bitcoin оборудование secp256k1 ethereum habrahabr bitcoin 1080 ethereum сайт ethereum bitcoin millionaire bank cryptocurrency ethereum прогнозы bitcoin выиграть bitcoin purchase trezor bitcoin
bitcoin займ bitcoin обменять криптовалюта ethereum bitcoin кредит sec bitcoin ethereum заработать консультации bitcoin bitcoin tor bitcoin dark monero core криптовалюта monero bitcoin qr ethereum создатель книга bitcoin
bitcoin payza
etherium bitcoin monero bitcointalk java bitcoin bitcoin fields cryptocurrency calendar адреса bitcoin bitcoin инвестиции протокол bitcoin Bitcoin mining started out as a hobbyists’ activity which could be done on a laptop. From the chart above we can see the accelerating move to industrialized mining. Instead of running mining rigs in a garage or basement, industrialized mining groups, cloud mining providers, and hardware manufacturers themselves today build or renovate data-centers specifically tailored for cryptocurrency mining. Massive facilities with thousands of machines are operating 24/7 in places with ample electricity, such as Sichuan, Inner Mongolia, Quebec, Canada, and Washington State in the U.S. Some of this article's listed sources may not be reliable. (November 2018)bitcoin спекуляция анализ bitcoin bitcoin лопнет
bitcoin income bitcoin игры bitcoin код byzantium ethereum bitcoin qr DApps: Decentralized Finance (DeFi) has been touted as the future of finance and one of the biggest drivers of blockchain adoption. One of the most wonderful features of these dApps happens to be their composability. In other words, you can combine different DeFi products/applications with ease. As such, stablecoins can be easily integrated with DeFi apps to encourage in-app purchases and build an internal economy.Power consumption: you don't want to pay more in electricity than you earn in litecoins.claymore monero уязвимости bitcoin Every other fiat currency, commodity money or cryptocurrency is competing for the exact same use case as bitcoin whether it is understood or not, and monetary systems tend to a single medium because their utility is liquidity rather than consumption or production. When evaluating monetary networks, it would be irrational to store value in a smaller, less liquid and less secure network if a larger, more liquid and more secure network existed as an attainable option. Bitcoin is valuable, not because of a particular feature, but instead, because it achieved finite, digital scarcity. This is the backbone of why bitcoin is secure as a monetary network and it is a property that is dependent on many other emergent properties.bitcoin journal транзакции bitcoin lurkmore bitcoin 2 bitcoin love bitcoin airbit bitcoin neo bitcoin bitcoin серфинг bitcoin миксер ethereum bitcoin secp256k1 ethereum bitcoin bubble
bitcoin рбк bitcoin подтверждение
bitcoin roll bitcoin аккаунт wallet tether cubits bitcoin Similarly, funders outside Argentina can earn a higher return under this scheme than they can by using other debt instruments, denominated in their home currency, potentially offsetting some of the risks of exposure to the high inflation Argentine market. обмен ethereum java bitcoin поиск bitcoin bitcoin спекуляция bitcoin roulette bitcoin china форки ethereum geth ethereum bitcoin tools bitcoin растет cold bitcoin bitcoin код monero github x bitcoin loans bitcoin tether курс zebra bitcoin bitcoin bcc bitcoin surf сайте bitcoin polkadot ico monero faucet сложность monero bitcoin landing chaindata ethereum
buying bitcoin
monero ico bitcoin service bitcoin nedir avto bitcoin дешевеет bitcoin bitcoin зарегистрировать bitcoin farm ротатор bitcoin habrahabr bitcoin bitcoin проект эфир bitcoin yandex bitcoin bitcoin книга bitcoin capital bitcoin crash ethereum frontier bitcoin халява bitcoin партнерка qiwi bitcoin tether верификация blogspot bitcoin bitcoin seed калькулятор monero local ethereum bitcoin location bitcoin download wiki ethereum ultimate bitcoin bitcoin транзакция bitcoin экспресс ethereum курсы обвал ethereum зарегистрировать bitcoin
mining cryptocurrency cz bitcoin ethereum 4pda bitcoin sberbank
bitcoin buy bitcoin фарминг cryptocurrency charts
bitcoin мошенники alpari bitcoin forex bitcoin raiden ethereum ethereum calculator bitcoin gadget darkcoin bitcoin amd bitcoin start bitcoin
bitcoin реклама epay bitcoin ethereum siacoin bitcoin cryptocurrency 50 bitcoin bitcoin capital bitcoin wordpress water bitcoin 1000 bitcoin bitcoin x2
click bitcoin pdf bitcoin panda bitcoin кошелек monero bitcoin classic gek monero
ethereum price bitcoin курс 16 bitcoin dwarfpool monero bitcoin 4000 проблемы bitcoin bitcoin changer generator bitcoin ethereum проблемы ethereum io программа bitcoin bank cryptocurrency bitcoin валюты ethereum casino пополнить bitcoin bitcoin bcn prune bitcoin
bitcoin автосерфинг ютуб bitcoin ethereum хешрейт nonce bitcoin bitcoin carding How Can You Use Cryptocurrency?bitcoin компьютер bitcoin nedir bitcoin reddit darkcoin bitcoin
bitcoin cloud bitcoin symbol flypool ethereum bitcoin qiwi настройка monero логотип bitcoin
крах bitcoin bitcoin депозит bitcoin banking monero криптовалюта wired tether bitcoin magazin Various government agencies, departments, and courts have classified bitcoin differently. China Central Bank banned the handling of bitcoins by financial institutions in China in early 2014.bitcoin passphrase tether limited bitcoin store
будущее bitcoin хардфорк ethereum бесплатно ethereum planet bitcoin vip bitcoin bitcoin значок график ethereum bitcoin api bitcoin значок ethereum история
портал bitcoin pool monero bitcoin банкомат bitcoin заработок exchange ethereum технология bitcoin ethereum crane ethereum supernova bitcoin change ethereum токены hit bitcoin bitcoin удвоитель клиент ethereum decred cryptocurrency краны bitcoin
proxy bitcoin mac bitcoin swarm ethereum nanopool ethereum bitcoin зарабатывать запуск bitcoin bitcoin пирамида заработок bitcoin bitcoin 2018 best bitcoin monero xeon
locate bitcoin bitcoin алгоритм wikipedia ethereum токен ethereum bitcoin развод wechat bitcoin ethereum linux bitcoin опционы
cryptocurrency wikipedia новости bitcoin bitcoin страна трейдинг bitcoin bitcoin 2048
bitcoin брокеры калькулятор ethereum
ethereum ubuntu ethereum myetherwallet трейдинг bitcoin получение bitcoin ethereum картинки tether usd youtube bitcoin conference bitcoin monero продать bitcoin хабрахабр bitcoin кошельки bitcoin история joker bitcoin bitcoin заработок bitcoin компьютер x2 bitcoin компания bitcoin rinkeby ethereum platinum bitcoin
iphone tether bitcoin мониторинг tether clockworkmod bitcoin it sha256 bitcoin биржа ethereum рулетка bitcoin space bitcoin bitcoin vpn bitcoin генератор расширение bitcoin tether верификация monero minergate bitcoin pdf bitcoin eth
перспективы ethereum
ethereum транзакции
bitcoin 10 bitcoin ocean bitcoin cnbc bitcoin metal bitcoin foundation Cryptocurrencies can be used to buy goods or services or held as part of an investment strategy, but they can’t be manipulated by any central authority, simply because there isn’t one. No matter what happens to a government, your cryptocurrency will remain secure.Hashflare Review: An Estonian cloud miner with SHA-256, Scrypt and Scrypt-N options and currently appears to be the best value.Litecoin cloud mining guide: everything you need to know to start cloud mining Litecoin. Read this guide %trump2% master Litecoin cloud mining like a pro!cronox bitcoin bitcoin скачать transactions bitcoin bitcoin продам
обзор bitcoin ann ethereum bitcoin qiwi
habrahabr bitcoin app bitcoin bitcoin зарегистрировать get bitcoin bitcoin автомат ethereum игра е bitcoin bitcoin trojan bitcoin vip ethereum видеокарты bitcoin mixer 10000 bitcoin monero news bitcoin billionaire bitcoin drip bitcoin телефон форк bitcoin android tether bitcoin kran bitcoin main bitcoin putin ethereum краны blake bitcoin bitcoin token
