Bitcoin Q&A: Data integrity and validation of keys

Bitcoin Q&A: Data integrity and validation of keys

“What does the following sentence mean? ‘when transactions are broadcast to the network,the SHA-256 function is used to verify data integrity.’”Well, cryptographic hashes offer the ability to produce a fingerprint [of a piece of data].A hash functions [produces] a cryptographic digest.[You can provide] an arbitrary length data stream of bits [as input] and it will convert it to a fixed length [output].For example, SHA-256 will take any amount of data…

Bitcoin Q&A: Re-using addresses

Bitcoin Q&A: Re-using addresses

“Why would one use multiple addresses?”Carol, the reason you would [want to] use multiple addresses is primarily for privacy.If you use a single address, then every payment you receive and send can be [correlated] on the blockchain.If you keep using that address, presumably all transactions produced by [it] are related to you.You own it, therefore you’re making the transactions.If you make a transaction to any kind of company or organization…

Bitcoin Q&A: Divisibility and deflationary monetary policy

Bitcoin Q&A: Divisibility and deflationary monetary policy

[AUDIENCE] You have been talking about the need for a bitcoin, which is the demand side.What are the plans to grow the supply of bitcoin until it satisfies those 80% of people who are unbanked?Because $10 billion in value is less than 1% of 1% of the need.[ANDREAS] Bitcoin’s monetary policy is very specific. It is designed to simulate precious metals.It is a system of restricted supply without fractional reserve;…

Bitcoin Q&A: Directed acyclic graphs (DAGs) and IOTA

Bitcoin Q&A: Directed acyclic graphs (DAGs) and IOTA

“What is your opinion on directed acyclic graphs (DAGs)? [Do they] truly have the potential to replace…open and decentralized blockchains? Or is it vaporware?”I don’t think the question is an ‘either / or.’I don’t think directed acyclic graphs, tangles, or other similar formulations, can replace proof-of-workor open decentralized blockchains. I think that’s because proof-of-work brings some very specificand very valuable characteristics that simply cannot be achieved with other consensus algorithms.Or,…

Bitcoin Q&A: Do miners control consensus? – The 5 Consensus Communities

Bitcoin Q&A: Do miners control consensus? – The 5 Consensus Communities

[AUDIENCE] Basically you are saying that we are depending on decisions of Chinese miners and pools.It is not our decision, it is the decision of the miners.[ANDREAS] No. There are five consensus communities in Bitcoin: developers, miners, exchanges, merchants,and wallets.They [work] together. If you are a miner on a chain that doesn’t have support from wallets,exchanges, or merchants, then you are mining a coin that you cannot sell, use, or…

Bitcoin Q&A: The rules of Bitcoin (part 2)

Bitcoin Q&A: The rules of Bitcoin (part 2)

[AUDIENCE] If that’s the case, how is it possible that one single person, like you or me, is able to predict….. what is going to happen, when the whole thing is robust in consensus decision-making? Thank you.[ANDREAS] Yeah, that’s a good question.The simple answer is that Bitcoin runs a certain set of rules, and those rules can’t be changed unless….. everybody agrees. By “agrees,” that means you run the software…

Bitcoin Elements of Trust: Unleashing Creativity – Berlin March 2016

Bitcoin Elements of Trust: Unleashing Creativity  – Berlin March 2016

[Applause] [ANDREAS] I didn’t bring any slides. But it is important to have visual aids, right?I brought some beer. It aids me, so… [Laughter] Thank you. It is really amazing to be in Berlin.Thank you so much for coming. This is a packed space, it is very exciting.I apologise. I took a year of German in college, but [my grade was] a C. I can barely order [food] in a…

Bitcoin Q&A: Nonces, mining, and quantum computing

Bitcoin Q&A: Nonces, mining, and quantum computing

“Who generates the nonce?”“If my pool generates the random number, how is it protected from us knowing it?”“What makes that random number tamper-proof?”“Does the whole network contribute to the random number?”All right. The nonce, the random number, is calculated independently, billions of times per second by each…mining hardware system.When [someone] is mining, they are coordinating with a very large number of computers over a network.These mining computers calculate billions of…

Bitcoin Q&A: What is the Halvening?

Bitcoin Q&A: What is the Halvening?

“Why the sudden halving every four years? I understand that the Bitcoin reward per block…must be a decreasing function, such that the sum of all rewards would be finite, [with a total of] 21 million coins,after 140 hundred years.”“But why not choose a [more] simple decreasing function that would smoothly go to zero [subsidy]?”“Isn’t it inconvenient that, every four years, the profitability of miners suddenly decreases?”“[Would] fees [need to] suddenly…

Bitcoin Q&A: What will politics & Bitcoin be in 30-40 years? – The Networked vs. the Landlocked

Bitcoin Q&A: What will politics & Bitcoin be in 30-40 years? – The Networked vs. the Landlocked

[ANDREAS] Go ahead. [AUDIENCE] Thirty, forty, or fifty years in the future…What are your dreams or visions? Will some [major] price change happen?Will nation states [do something]?[ANDREAS] I try to not make predictions in Bitcoin exceeding thirty or forty days into the future.The best way to be correct is to not make predictions. The future is very harsh when it comes to predictions.The worst part is, if you make a…