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> The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the trusted third party. The necessity

> The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the trusted third party. The necessity to announce all transactions publicly precludes this method, but privacy can still be maintained by breaking the flow of information in another place: by keeping public keys anonymous. The public can see that someone is sending an amount to someone else, but without information linking the transaction to anyone. This is similar to the level of information released by stock exchanges, where the time and size of individual trades, the "tape", is made public, but without telling who the parties were. > Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible. - Satoshi The reality is that Satoshi envisioned bitcoin very differently from how things are currently implemented. They envisioned public keys being rotated, single use addresses, etc. The current systems don't provide any of the privacy that the original paper sought. > It is high time for blockchain enthusiasts to ask this question: Have the primary principals underlying bitcoin’s design — privacy, fraud proof, non-inflationary— been completely destroyed by today’s blockchain operators? You can pick apart this Medium post if you'd like but I think it's really an excellent question. Read the original paper and ask yourself if what we're seeing in the market is really the "Satoshi vision".

emporas 4y ago
Proof of work was invented from the start, as an anti-spam measure. The user sends data to a server and alongside of that, sends some proof of work data. This simple system has a downside though, that is ASICS. A specialized ASICS hub of servers, can create as much spam as they wish, because proof of work for the specialized system is trivial to compute. One solution to that problem, is for ASICS hubs, to create the proof of work, and sell it to users. Add on top of that a public database of what ASICS proof of work was sold to who, and you've got Bitcoin. It is really that simple. Instead of fighting the ASICS hubs, you work with them. This technique, is so simple it should not be even be considered a technology, it is just a technique. A myriad of technologies can use this technique to add some additional properties, to an already existing technology. For example, in the IOT world, an oven connected to the internet, could be used only by a particular key in the blockchain, thus proving ownership to control the oven. One microtransaction can turn on the oven, or turn it off. The most important aspect of bitcoin, is of course spam prevention. Gmail servers just block any unknown mail provider, just in case they are spammers. When spam was limited to email messages, that was a viable solution for the internet. This however is gonna change. Synthetic data, i.e. deepfakes, are really gonna take off right now. Synthetic faces of people can be uploaded by the tens of millions to facebook each day. Synthetic photographs of places can be uploaded to Insta. Synthetic conversations can can be uploaded to twitter by the billions. Synthetic songs can be uploaded to bandcamp, terabytes of them every day. Synthetic videos can be uploaded to youtube, or tik-tok, petabytes every day. The advertisement based free model of posting information on the internet, will go down in flames in less than 4 years. A new technique is going to emerge, in which we send value to the hosting providers, for our information they are willing to host for us. That value, trillions and quadrillions of microtransactions, less than a cent each per day, it is difficult to track, but it can be done, the question which arises is, what can someone gain doing that?
lupire 4y ago
Satoshi+in their writings) didn't understand the side channel attack of the Blockchain-meatspace bridge. Bitcoin only meets its design guarantees in a purely virtual world or with anonymous terminals. Bitcoin is already expensive enough to transact in, are you also going to move to a different location every time your transact?
- insanitybit 4y ago
  I don't think it even really gets to the point of side channels. People sign up with their github account and a photo ID so that a 3rd party can store their private key for them.
- prvit 4y ago
  > Bitcoin is already expensive enough to transact in Yesterday the average transaction cost was 0.7 USD. That’s pretty cheap as far as money transfers go, definitely beats most banks.
  - cowtools 4y ago
    The fees increase with demand, but throughput does not. Bitcoin's current incarnation cannot scale. If it is cheap to transact now, it is only because the demand for its use as an actual currency has been reduced since the last fee explosion. If everyone in the world tried to use bitcoin as a replacement for bank transfers, etc. then the fees would be astronomical
jonhohle 4y ago
I’ve not read the paper, but was the original intention that Bitcoin would be almost immediately transferred to an external store of value? How are single use addresses funded without the transaction being recorded?
olalonde 4y ago
> The reality is that Satoshi envisioned bitcoin very differently from how things are currently implemented. That's actually how the majority of Bitcoin wallets operate. I'm not sure what you mean here.
prvit 4y ago
> The reality is that Satoshi envisioned bitcoin very differently from how things are currently implemented. They envisioned public keys being rotated, single use addresses, etc. That’s literally how all wallets work in 2022, no? Public keys are constantly rotated, addresses are single use.
- insanitybit 4y ago
  > Public keys are constantly rotated Not to my knowledge? I believe Coinbase lets you manage any number of public keys but there's nothing enforcing a "burn on use". Also, obviously, there's a central authority that has your name, government id, and keys.

emporas 4y ago

Proof of work was invented from the start, as an anti-spam measure. The user sends data to a server and alongside of that, sends some proof of work data. This simple system has a downside though, that is ASICS. A specialized ASICS hub of servers, can create as much spam as they wish, because proof of work for the specialized system is trivial to compute. One solution to that problem, is for ASICS hubs, to create the proof of work, and sell it to users. Add on top of that a public database of what ASICS proof of work was sold to who, and you've got Bitcoin. It is really that simple. Instead of fighting the ASICS hubs, you work with them. This technique, is so simple it should not be even be considered a technology, it is just a technique. A myriad of technologies can use this technique to add some additional properties, to an already existing technology. For example, in the IOT world, an oven connected to the internet, could be used only by a particular key in the blockchain, thus proving ownership to control the oven. One microtransaction can turn on the oven, or turn it off. The most important aspect of bitcoin, is of course spam prevention. Gmail servers just block any unknown mail provider, just in case they are spammers. When spam was limited to email messages, that was a viable solution for the internet. This however is gonna change. Synthetic data, i.e. deepfakes, are really gonna take off right now. Synthetic faces of people can be uploaded by the tens of millions to facebook each day. Synthetic photographs of places can be uploaded to Insta. Synthetic conversations can can be uploaded to twitter by the billions. Synthetic songs can be uploaded to bandcamp, terabytes of them every day. Synthetic videos can be uploaded to youtube, or tik-tok, petabytes every day. The advertisement based free model of posting information on the internet, will go down in flames in less than 4 years. A new technique is going to emerge, in which we send value to the hosting providers, for our information they are willing to host for us. That value, trillions and quadrillions of microtransactions, less than a cent each per day, it is difficult to track, but it can be done, the question which arises is, what can someone gain doing that?

lupire 4y ago

Satoshi+in their writings) didn't understand the side channel attack of the Blockchain-meatspace bridge. Bitcoin only meets its design guarantees in a purely virtual world or with anonymous terminals. Bitcoin is already expensive enough to transact in, are you also going to move to a different location every time your transact?

insanitybit 4y ago
I don't think it even really gets to the point of side channels. People sign up with their github account and a photo ID so that a 3rd party can store their private key for them.
prvit 4y ago
> Bitcoin is already expensive enough to transact in Yesterday the average transaction cost was 0.7 USD. That’s pretty cheap as far as money transfers go, definitely beats most banks.
- cowtools 4y ago
  The fees increase with demand, but throughput does not. Bitcoin's current incarnation cannot scale. If it is cheap to transact now, it is only because the demand for its use as an actual currency has been reduced since the last fee explosion. If everyone in the world tried to use bitcoin as a replacement for bank transfers, etc. then the fees would be astronomical

jonhohle 4y ago

I’ve not read the paper, but was the original intention that Bitcoin would be almost immediately transferred to an external store of value? How are single use addresses funded without the transaction being recorded?

olalonde 4y ago

> The reality is that Satoshi envisioned bitcoin very differently from how things are currently implemented. That's actually how the majority of Bitcoin wallets operate. I'm not sure what you mean here.

prvit 4y ago

> The reality is that Satoshi envisioned bitcoin very differently from how things are currently implemented. They envisioned public keys being rotated, single use addresses, etc. That’s literally how all wallets work in 2022, no? Public keys are constantly rotated, addresses are single use.

insanitybit 4y ago
> Public keys are constantly rotated Not to my knowledge? I believe Coinbase lets you manage any number of public keys but there's nothing enforcing a "burn on use". Also, obviously, there's a central authority that has your name, government id, and keys.