Digital Cash – Applied Cryptography

When we think about the money is it’s really a promise from a trusted bank. If the promise it says if someone brings this money to the bank, the bank will exchange it for something of real value. Today, we think of the paper itself as having real value. But in the early days, what the paper meant was you could go to the bank and exchange it for something…

Ethereum Q&A: Light clients, EVM, and Mist

Marcus asks, “Why would one use Metamask, MyEtherWallet, or MyCrypto?” “Is it just that they can hold multiple Ethereum-based tokens, or do they have more useful capabilities?” Metamask, MyEtherWallet, and MyCrypto are three lightweight clients and wallets. They don’t just implement wallet functionality. They make the Web3 Javascript interface available… in your browser, that allows applications (DApps) to run and access the Ethereum network. Through this wallet, [you can] create…

Bitcoin Q&A: Lightning Network game theory

“Can the Lightning Network rules be changed and updated easily, unlike [the Bitcoin blockchain], which requires super-majority consensus (almost everyone must agree) for simultaneous upgrade?” “Can groups of users use different variations of the channel rules and form a separate sub-network, with or without maintaining compatibility to the entire Lightning Network?” That is a really great question. The Lightning Network rules can be changed and upgraded quite easily. Lightning is…

Blockchain Basics – Ethereum Blockchain: Smart Contracts by University at Buffalo #6

Blockchain Basics – Ethereum Blockchain: Smart Contracts by University at Buffalo #6

Bitcoin blockchain is the mother of all blockchains. It was intended for peer to peer transfer of value and it does that well. Around 2013, a framework for code execution was introduced by Ethereum Founders. The centerpiece and thrust of this Ethereum blockchain is a smart contract. Consider this togged diagram comparing Bitcoin and Ethereum blockchain. On the left is the Bitcoin blockchain and a wallet application for initiating transactions….

Bitcoin Q&A: Exchanges, identity, and surveillance

‘Given the current status of Bitcoin and other open blockchains, how can users who purchase their BTC on an exchange, exposing all of their [personal information], protect their privacy and anonymity? Especially when governments have very sophisticated tools such as Chainanalysis. Should there be infrastructure and a paradigm shift on how users switch their assets from fiat to crypto?’ This is a great question. Right now, it’s actually very difficult…

Bitcoin Q&A: Wallet design and mass adoption

“What conditions should the ideal wallet meet?” That is a question which can only be answered if I understand your particular requirements. There is no perfect wallet for everyone. Wallets serve different purposes better than others. It depends on what you are trying to achieve. It is a bit like asking, “What is better, a Ferrari or an agricultural tractor? The [answer] depends on what you are trying to do….

Why Open Blockchains Matter

[Music] Hi! Wow… Oh my god. This is quite amazing. I’m really excited to be here at this conference. I’m so excited to be talking to all of you, who apparently are developers? That’s what it says back there on the screen. I assume it’s true. How many people in this room have used open-source software? [Audience raises hands] Trick question! I’m just trying to get you to warm up…

Bitcoin Q&A: From barter to abstract money

[AUDIENCE] I have a two-part question. Both are related to social norms. Before digital currency and before centrally control currencies, people [would] barter, still even today. I see that Bitcoin will perhaps promote more of that barter of services, in exchange for bitcoin. That is one question: is this really nothing but to promote more barter of services across the globe? The second question is, given the bitcoin currency requires…

Bitcoin Q&A: How do payment channels work?

Bitcoin Q&A: How do payment channels work?

“Can you explain the Lightning Network and how payment channels with ‘locked’ funds work?” Yes. Let’s start with payment channels. Payment channels are [opened from]… transactions on the Bitcoin network that lock funds in a 2-of-2 multi-signature address. If I have a payment channel with Alice, that has [bitcoin] locked [in a multi-sig with one key from each of us]. I commit an [amount] of funds to the balance of…

Ethereum Q&A: Why I’m writing ‘Mastering Ethereum’

“People are worrying that they’re going to lose you, Andreas, to the altcoin sphere.” Oh no! “Peter says, “Recently I’ve seen more and more people, especially on Twitter, commenting on… whether you will remain faithful to Bitcoin.” “In certain ways, I empathise. You certainly have never been in this for the money.” “That’s what I truly and thoroughly believe.” “It makes me wonder why you would spend so much time…