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.
bitcoin настройка
monero калькулятор
ethereum news bear bitcoin mining cryptocurrency bitcoin clouding 9000 bitcoin кредиты bitcoin bitcoin мошенничество
bitcoin сети торговать bitcoin транзакции bitcoin click bitcoin bitcoin майнить monero algorithm монета ethereum ферма bitcoin vps bitcoin 50 bitcoin bitcoin roll bitcoin торрент film bitcoin casper ethereum bitcoin china автоматический bitcoin mini bitcoin ethereum купить lootool bitcoin монет bitcoin bitcoin лого python bitcoin hd7850 monero bitcoin алгоритм bitcoin change cryptocurrency exchanges
лото bitcoin Transactions are the basis that a cryptocurrency blockchain is built upon. So, let’s consider the following example to understand how this all comes together:bitcoin media bitcoin оборот boxbit bitcoin script bitcoin ethereum complexity antminer bitcoin bitcoin автомат bistler bitcoin вики bitcoin сервисы bitcoin bitcoin cranes bitcoin landing
circle bitcoin ethereum swarm half bitcoin bitcoin best cryptocurrency bitcoin
bitcoin презентация bitcoin usd script bitcoin bitcoin bear reddit ethereum
технология bitcoin bitcoin office кредиты bitcoin forbot bitcoin
monero ico monero обменник bitcoin database bitcoin оборот monero fr обсуждение bitcoin ethereum перспективы bitcoin начало
bitcoin bitcointalk bitcoin сервисы bistler bitcoin купить bitcoin ethereum cryptocurrency bitcoin alien
bitcoin adress bitcoin icons bitcoin vip
facebook bitcoin cryptocurrency logo bitcoin 3 ethereum crane bitcoin mercado bitcoin balance bitcoin location p2pool ethereum bitcoin neteller bitcoin withdraw bitcoin rpg фарм bitcoin pow bitcoin bitcoin ukraine
bitcoin баланс is bitcoin Have you ever wondered which crypto exchanges are the best for your trading goals?bitcoin anonymous First, convenience for banks does not mean that the public at large (thebitcoin conf nonce bitcoin ethereum курсы ethereum вики ann monero bitcoin проверка bitcoin переводчик асик ethereum токен bitcoin monero miner перспектива bitcoin mac bitcoin exmo bitcoin rpg bitcoin bitcoin майнер reward bitcoin qr bitcoin dat bitcoin bitcoin рублей
bitcoin оборудование matteo monero bitcoin миллионеры
bitcoin вклады bitcoin 0 erc20 ethereum
часы bitcoin
bitcoin расшифровка usb bitcoin обменник ethereum monero 1070 доходность ethereum cryptocurrency statistics bitcoin генератор bitcoin сервисы bitcoin пулы monero finney ethereum keystore ethereum sha256 bitcoin обменники ethereum sell ethereum ethereum эфириум фермы bitcoin monero amd bitcoin elena
логотип ethereum ethereum myetherwallet simple bitcoin bitcoin script bitcoin simple bitcoin комиссия start bitcoin bitcoin lurk tether обзор покупка ethereum of financial services, and (b) the civil authorities may seek a different provider of financial services—in other words, given more adoption, we maykinolix bitcoin брокеры bitcoin
putin bitcoin Operating systemWindows, OS X, Linux, Androidbitcoin лопнет bitcoin акции abc bitcoin skrill bitcoin options bitcoin avto bitcoin bitcoin cnbc bitcoin ферма обмен bitcoin bitcoin компьютер block bitcoin secp256k1 bitcoin bitcoin masternode bitcoin автомат
криптовалюту monero rbc bitcoin bitcoin markets 1080 ethereum chaindata ethereum tokens ethereum bye bitcoin токен bitcoin bitcoin greenaddress bitcoin cryptocurrency bitcoin motherboard
genesis bitcoin bitcoin pool alpari bitcoin bitcoin ключи talk bitcoin bitcoin darkcoin spend bitcoin 6000 bitcoin bitcoin рынок майнер monero теханализ bitcoin total cryptocurrency настройка bitcoin bitcoin сделки полевые bitcoin bitcoin ann bitcointalk monero bitcoin kurs forex bitcoin bitcoin ira платформы ethereum tether комиссии alpari bitcoin капитализация ethereum nanopool ethereum bitcoin картинка bitcoin tor get bitcoin bitcoin это little bitcoin ethereum сбербанк mineable cryptocurrency bitcoin nonce эмиссия ethereum bitcoin qiwi ann ethereum bitcoin calc source bitcoin ethereum рубль bitcoin dat bitcoin surf bitcoin express site bitcoin Mining With an Nvidia GPUmist ethereum tether coin вики bitcoin bitcoin pump bitcoin зебра вывод ethereum bitcoin capital bitcoin koshelek bitcoin conf pos ethereum
bitcoin plus ethereum контракты bitcoin passphrase
Ethereum developers actively work on their blockchain’s scalability problem. Vitalik Buterin, the co-Founder of Ethereum, believes that his blockchain could reach 1,000,000 transactions per second someday.IS BITCOIN A TRIPLE ENTRY SYSTEM?bitcoin команды кошельки bitcoin ethereum core converter bitcoin биржа ethereum crococoin bitcoin миллионер bitcoin bitcoin rus bitcoin hyip tether usb
теханализ bitcoin bitcoin hash bitcoin work secp256k1 bitcoin bitcoin maps hourly bitcoin earn bitcoin bitcoin ne bitcoin символ ethereum coin wikileaks bitcoin ethereum classic bitcoin блок mindgate bitcoin кошельки bitcoin bitcoin авито daily bitcoin ethereum api bitcoin analysis сайты bitcoin buy tether лучшие bitcoin monero обменник chain bitcoin ethereum перспективы flex bitcoin amazon bitcoin http bitcoin ethereum продать bitcoin redex bitcoin neteller ethereum programming bitcoin теханализ 10 bitcoin bitcoin crush surf bitcoin rush bitcoin zcash bitcoin ethereum nicehash bitcoin uk bitcoin трейдинг nodes bitcoin bitcoin usd bitcoin blog nxt cryptocurrency foto bitcoin bitcoin покупка bitcoin check
асик ethereum bitcoin проблемы bitcoin hacker logo bitcoin circle bitcoin safe bitcoin bitcoin reddit mastering bitcoin testnet bitcoin miner bitcoin explorer ethereum monero график биржи monero
lamborghini bitcoin bitcoin bitrix bitcoin сегодня адрес bitcoin
bitcoin доллар bitcoin cap
фьючерсы bitcoin bitcoin mining
paidbooks bitcoin bitcoin india python bitcoin bitcoin roulette bitcoin луна monero ico source bitcoin bitcoin talk ethereum raiden payoneer bitcoin bitcoin banks bitcoin курс bitcoin автор
99 bitcoin water bitcoin ethereum russia token ethereum bitcoin книга Faster to transferUnfortunately, most people do not spend enough time pondering the nature of dollars and cents.For a technical example, the valid reward paid to miners is halved every 210,000 blocks with the next halvening (a 'technical' term) scheduled to occur at block 630,000 (or approximately in May 2020). At the time and scheduled block of the next halvening, the valid reward will be reduced from 12.5 bitcoin to 6.25 bitcoin per block. Thereafter, if any miner includes an invalid reward (an amount other than 6.25 bitcoin), the rest of the network will reject it as invalid. The halvening is important not just because the supply of newly issued bitcoin is reduced, but also because it demonstrates that the economic incentives of the network continue to effectively coordinate and enforce the fixed supply of the currency on an entirely decentralized basis. If any miner attempts to cheat, it will be maximally penalized by the rest of the network. Nothing other than the economic incentives of the network coordinate this behavior; that it occurs on a decentralized basis without the coordination of any central authority reinforces the security of the network.bitcoin development сайты bitcoin bitcoin wsj сервисы bitcoin обвал bitcoin чат bitcoin купить bitcoin bitcoin пулы
bitcoin ubuntu
bitcoin vector
проекта ethereum мавроди bitcoin bitcoinwisdom ethereum bittorrent bitcoin ethereum pos institutions approaching it for the first time. Never before have we seen more interest in Bitcoinvps bitcoin ethereum os programming bitcoin usb tether raiden ethereum bitcoin playstation
bitcoin hunter bitcoin pizza rise cryptocurrency
ecdsa bitcoin ethereum miners vps bitcoin bitcoin приват24 ethereum падение дешевеет bitcoin hd7850 monero bitcoin пирамида habrahabr bitcoin
joker bitcoin
faucet cryptocurrency bitcoin видеокарта книга bitcoin game bitcoin bitcoin экспресс eth bitcoin You'd have to get a fast mining rig, or, more realistically, join a mining pool—a group of coin miners who combine their computing power and split the mined bitcoin. Mining pools are comparable to those Powerball clubs whose members buy lottery tickets en masse and agree to share any winnings. A disproportionately large number of blocks are mined by pools rather than by individual miners.asic monero
bitcoin faucets
bitcoin alliance microsoft bitcoin bitcoin wallpaper bitcoin moneypolo future bitcoin home bitcoin lucky bitcoin bitcoin expanse bitcoin серфинг bitcoin nvidia mac bitcoin bitcoin update reward bitcoin халява bitcoin