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Question: Will you support Gavin's new block size limit hard fork of 8MB by January 1, 2016 then doubling every 2 years?
1.  yes
2.  no

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Author Topic: Gold collapsing. Bitcoin UP.  (Read 1808261 times)
marcus_of_augustus
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January 06, 2015, 03:42:39 AM
 #19761

Your prose is amazingly polished and clear. You are a professor of something. Philosophy is my guess
Uh, thanks! Yes, a prof of Computer Science, at a public univ in Brazil.

prof. bitcoin troll. ... all of your claims in that lengthy (worthless) prose are unsubstantiated of course.

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lunarboy
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January 06, 2015, 04:09:36 AM
 #19762

Your prose is amazingly polished and clear. You are a professor of something. Philosophy is my guess
Uh, thanks! Yes, a prof of Computer Science, at a public univ in Brazil.

prof. bitcoin troll. ... all of your claims in that lengthy (worthless) prose are unsubstantiated of course.

A Taxonomy of the Troll

Class B bitcoin troll (lat.  trollus averagus)

-How to recognize: bait-and-switch thread titles and well-executed concern trolling; methods designed to fool the reader into thinking the troll is a non-troll.  

-Recommended response: agree with everything they say in a satirical way.  Their arguments are usually so flawed that simply rephrasing back what they said will reveal their lunacy.  This technique is especially effective if the troll doesn't recognize this attack vector until he's already sunken his ship.

-Examples: Nagle, JorgeStolfi, Edward50

smooth
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January 06, 2015, 04:19:25 AM
 #19763

By now, everybody should be aware that an entity or cartel with the majority of the hashpower has absolute power over the network.
In short, no. There is significant power but not absolute power.
http://hackingdistributed.com/2014/06/19/bitcoin-and-voting-power/

I read that article before.  It is mistaken; users do not have voting power, because their only options are give in to the cartel or lose their coins.  Note that any entity that can jam some process for a sufficient time can force the users of that process to accept anything that is not as bad as the jamming itself.

You need to read it again, until you understand it.

If a cartel of miners tried to block all transactions, there would be code for a hard fork within 3 hours making some trivial change to the PoW that rendered the current mining industry worthless and the hard fork itself would probably happen within a few days. And then life would continue on as usual, except that the next set of miners would know how suicidal such a move would be (and on a more contemplative schedule further changes would be made).

STT
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January 06, 2015, 04:20:51 AM
 #19764

How is it all that justified Outahere.   Isnt POS just biased to the biggest holders, Im not sure how every negative you mention comes from or just from that main point ?

msin
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January 06, 2015, 04:22:50 AM
 #19765

Your prose is amazingly polished and clear. You are a professor of something. Philosophy is my guess
Uh, thanks! Yes, a prof of Computer Science, at a public univ in Brazil.

prof. bitcoin troll. ... all of your claims in that lengthy (worthless) prose are unsubstantiated of course.

I wouldn't say it was worthless or unsubstantiated, but a little mislead.  The main point being the lack of decentralization and the need to trust 3rd parties (mining pools).  However, you could say that regardless of how decentralized bitcoin is or was, it always relies on miners (pools) to secure the blockchain, whether this is 4, 40, 400, 4000 etc.. regardless of the #, they could at any time decide to collude for 51% hashing power.  There is no incentive for pools to conspire and regardless of the number of pools needed to reach 51%, there will always be a certain # of pools that "could" conspire.  There are 4 US banks that could conspire to destroy the USD, but what incentive do they have to do so?
cypherdoc
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January 06, 2015, 04:32:47 AM
 #19766

Your prose is amazingly polished and clear. You are a professor of something. Philosophy is my guess
Uh, thanks! Yes, a prof of Computer Science, at a public univ in Brazil.

prof. bitcoin troll. ... all of your claims in that lengthy (worthless) prose are unsubstantiated of course.

I wouldn't say it was worthless or unsubstantiated, but a little mislead.  The main point being the lack of decentralization and the need to trust 3rd parties (mining pools).  However, you could say that regardless of how decentralized bitcoin is or was, it always relies on miners (pools) to secure the blockchain, whether this is 4, 40, 400, 4000 etc.. regardless of the #, they could at any time decide to collude for 51% hashing power.  There is no incentive for pools to conspire and regardless of the number of pools needed to reach 51%, there will always be a certain # of pools that "could" conspire.  There are 4 US banks that could conspire to destroy the USD, but what incentive do they have to do so?

now imagine eying a SC for possible attack if you're a large pool.  esp a SC like Zerocoin which, if you're a US based pool, was made illegal by the US gvt.  you see thousands of scBTC riding Zerocoin yet you can't participate b/c you don't want to go to jail.  what might you do?
msin
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January 06, 2015, 04:42:25 AM
 #19767


now imagine eying a SC for possible attack if you're a large pool.  esp a SC like Zerocoin which, if you're a US based pool, was made illegal by the US gvt.  you see thousands of scBTC riding Zerocoin yet you can't participate b/c you don't want to go to jail.  what might you do?

Not sure I understand.  Are you referring to the legality of securing the blockchain as a result of SC?
NewLiberty
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January 06, 2015, 05:03:19 AM
 #19768

Your prose is amazingly polished and clear. You are a professor of something. Philosophy is my guess
Uh, thanks! Yes, a prof of Computer Science, at a public univ in Brazil.

prof. bitcoin troll. ... all of your claims in that lengthy (worthless) prose are unsubstantiated of course.
Aww, give him a break, it is a public Uni, so government payroll and in a country arguably even more socialist than the US.  It is a handicap difficult for most to overcome, at least until they are tenured.
We can't expect him to even nibble at the hand that feeds him.  Even though the criticisms are fairly speculative, at least he is looking at it.

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cbeast
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January 06, 2015, 06:00:36 AM
 #19769

How is it all that justified Outahere.   Isnt POS just biased to the biggest holders, Im not sure how every negative you mention comes from or just from that main point ?
It's not about the biggest holders, it's about the fact that you don't even know if there are holders big enough to covertly double spend or reverse selective transactions. I have been against PoS since I first heard about it and try to point out the moral arguments about the social based system claiming to replace an energy based system. I've posted hundreds of times against PoS, but feel it's just not going to reach people because humans have two distinctly different amygdala responses to perception of threat. One of the few things I agree with Stefan Molyneux as he puts it "The reality of political power is very simple: bad farmers own crops and livestock -- good farmers own human beings..." and PoS is an ideal model for farming human beings.

I am not against people developing PoS technology, but I think it will ultimately fail.

Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
solex
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January 06, 2015, 08:40:51 AM
 #19770

but aren't UTXO also held in memory?:

UTXO are tracked by every full-node bitcoin client in a database held in memory, called the UTXO set or UTXO pool.
http://chimera.labs.oreilly.com/books/1234000001802/ch05.html#tx_inputs_outputs

Great ebook by Andreas!
Yep, the UTXO set is the essence of the blockchain, however, IBLT is solely concerned with zero-conf tx which want to get into the blockchain  Smiley.

i assume you mean high volumes of unconfirmed tx's.  if so, how do we make the transition from the existing standard low volume method to IBLT?

Yes, and a proof of principle is already proposed: implementing it on top of the block relay service, which transmits lists of new-block tx hashes to subscribing nodes.

The reason is that right now the whole network could agree on the same 2000 unconfirmed tx, real-world business, but the next block mined can contain none of them. It could be full of previously unknown gambling dice-bot spam tx, a set which is 100% different. Because these tx validly spend UTXO, then the block is accepted, and the 2000 unconfirmed tx have to wait for the next block.

how is this possible?  i thought the unconf tx sets differences were supposed to be currently quite low which is the reason for IBLT in the first place? (sounds like you're saying we, in fact, don't have enough volume to make IBLT practical as of today)
...
so how do miners know which unconf tx's are known vs unknown, ie, which to incl in the IBLT to enhance block acceptance ?

The unconf tx sets differences are quite low. Unknown tx's are those which have not been broadcast to the network, and are known only to the miner who might have got them direct from a spammer source (for a fee). I was only giving an example of how, under the existing paradigm, a new block can consist of secret or private tx, not previously broadcast. So, although there is good consensus on unconf tx, the consensus can be ignored. Volumes are currently not high enough to make IBLT a noticeabe improvement to what we have now.

how do you arrive at 500KB or 1MB?  or are you just using the current 1MB block limitation of today into which you would fit the IBLT?  so are you saying that a 1MB sized IBLT equals 1500 diffs or an estimated 1% difference in unconf tx sets across network nodes or an equivalent 150,000 tx's block?

I was just using the current limitation, and also noting that 1MB blocks are occasionally happening already. The success of any node decoding an IBLT is probabilistic. The smaller an IBLT is, the higher the probability of decode failure. So it makes sense to start at a largish, workable size which can support a decent number of differences, such as 1500. The final block size, written to disk, could be smaller than 1MB, and might normally be for a while, but the disk blocks still grow with the ecosystem volume. It might take many years to hit 150,000 tx per block, which would* max out the 1MB IBLT.

*likely, but not necessarily

sgbett
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January 06, 2015, 10:01:53 AM
 #19771

The USD desperately wants to appreciate.

The reason the USD lost so much value over the last century was due, not to base money printing, but to credit expansion, a.k.a debt issuance.

Debt is temporary. It's either repaid, or else defaulted. Either way of resolving debt shrinks the money supply as much as the original issuance expanded it.

As long as the population was growing, and as long as the middle class had positive savings, it was possible to expand credit. Now both conditions are no longer true.

Since it's no longer possible to continue credit expansion, the only way to stop the deflation caused by debt repayment and defaults is to print more base money (QE).

When QE stops, the USD resumes its natural appreciation.

Exactly with an additional subtlety. Not only does the Fed have to print, they have to stimulate confidence because they can never print enough to fill the debt hole  and especially the derivatives mountain. If anything, the last 6 years has shown dubious levels of confidence, if any, along with demonstrably worse real wage growth. The Internet has spawned nearly instantaneous documentation of all the stealing going on.

The last few ramps this year have been nearly vertical short squeezes by the invisible hand which shows increasing desperation, imo. Now is the time to be cautious.  

sidhuajag, I really don't think you're gonna find your masses piling into a final blow off top.
What makes you think its over fundamentally? The flash crash looked like it was over but the fed didnt let it happen...

It may consolodate until next leg up until rates rise enough to become unsustainable..

Usd and stocks will return to positive correlation as they are doing now which means the real bull may just be getting started. I have 32k on dow as first target.

When an incandescent bulb blows, then first it flickers, then it shines brightest then it pops!

2008 was the flicker, right now we are shining brighter... how much more before the filament gives out!?

http://haschinabannedbitcoin.com
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Come-from-Beyond
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January 06, 2015, 10:04:58 AM
 #19772

...and try to point out the moral arguments about the social economy based system claiming to replace an energy based energy wasting system.

FTFY, you are welcome.
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January 06, 2015, 10:08:22 AM
 #19773

When an incandescent bulb blows, then first it flickers, then it shines brightest then it pops!

2008 was the flicker, right now we are shining brighter... how much more before the filament gives out!?
Bulbs can last a hundred years or more.

Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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January 06, 2015, 10:43:27 AM
 #19774

The USD desperately wants to appreciate.

The reason the USD lost so much value over the last century was due, not to base money printing, but to credit expansion, a.k.a debt issuance.

Debt is temporary. It's either repaid, or else defaulted. Either way of resolving debt shrinks the money supply as much as the original issuance expanded it.

As long as the population was growing, and as long as the middle class had positive savings, it was possible to expand credit. Now both conditions are no longer true.

Since it's no longer possible to continue credit expansion, the only way to stop the deflation caused by debt repayment and defaults is to print more base money (QE).

When QE stops, the USD resumes its natural appreciation.

I have to chime in on this one.  Tongue
When debt is created the interest to repay the debt is NOT also created, therefore the entire system is rigged to be a literal PONZI. It is a pyramid scheme in which the only way to repay interest is for more people to go into debt.  Repaying debt doesn't shrink the money supply as much as the original issuance expanded it because the interest added to the debt makes the total debt bigger than the issuance.

Fundamental misunderstanding here. New money does not have to be created for paying interest. Old money is good enough. In fact, money is not needed at all, it could be paid in kind.

For instance, you lend me USD2000 to be paid back in half a year, for that you can use my swimming pool as much as you like.

When you loan money to someone, you either have to delay some consumption, or delay some investment, or you just have your consumption or investment potential frozen for the duration of the loan. For those inconveniences, you want compensation, which is the interest. The loaner can use, invest, or have the power to consume or invest before he has saved. For that privilege he has to pay.

Ultimately, the interest, or the price of the loan agreement (not "the price of money", this is an inaccurate phrase) comes from the time preferences of the humans involved in the agreement.

No new money is really created in a loan (base money), but even without that, the fact that the loan exists means that the parties together feel that they have more economic power, therefore the value of money is affected. This is what the higher M's (M1...Mn money volume) tries to express.
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January 06, 2015, 10:43:49 AM
 #19775

When an incandescent bulb blows, then first it flickers, then it shines brightest then it pops!

2008 was the flicker, right now we are shining brighter... how much more before the filament gives out!?
Bulbs can last a hundred years or more.

For sure they can but they rarely pop without the flicker/brightness combo Wink

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January 06, 2015, 10:51:33 AM
 #19776

When an incandescent bulb blows, then first it flickers, then it shines brightest then it pops!

2008 was the flicker, right now we are shining brighter... how much more before the filament gives out!?
Bulbs can last a hundred years or more.

For sure they can but they rarely pop without the flicker/brightness combo Wink
Or like the Edison Tower they use a fake bulb and illuminate it with various bulbs.

Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
JorgeStolfi
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January 06, 2015, 11:02:03 AM
 #19777

If a cartel of miners tried to block all transactions, there would be code for a hard fork within 3 hours making some trivial change to the PoW that rendered the current mining industry worthless and the hard fork itself would probably happen within a few days. And then life would continue on as usual, except that the next set of miners would know how suicidal such a move would be (and on a more contemplative schedule further changes would be made).

So, according to that post, the cartel cannot force the users to do a compatible change the protocol because the users who do not want any change to the original protocol would immediately agree to make an incompatible change to the protocol.  Makes sense...

That hard fork would of course prevent *all* existing miners, including the faithful ones, from working on the 'born-again orthodox' chain.  That chain would be no different from any other junk altcoin with a tiny CPU-based network.  The cartel probably would have enough money to rent cloud computing and jam that rebel bitcoin chain too.  Would users choose to run that risk?

Even if the rebel fork survives, it will in time see its mining get centralized again.  That is, users may escape from *that* cartel, but not from the centralization of mining itself.

If the rebels opt for a hard fork, exchanges and payment processors would still have to upgrade their software anyway, only they would have to choose between the cartel's chain or the rebel chain.  Which one would seem to be a safer bet?

Among the users who are not willing to switch to the cartel, many will not upgrade to the rebel version right away; instead they will just stop using bitcoin until the winner has emerged.  And the rebels could always defect the ranks at any time, with no penalty or risk, and they will find their coins still there in the cartel's fork, minus any possibly even most of the transactions that they made since the fork.

Only ideologically motivated bitcoiners would be bothered by a proposed change in the protocol like the one I outlined in my reddit post.  How many of those are there?  The selfish bitcoiners will care more about their wealth (current or expected) than saving the world from greedy bankers and fascist government.  Which of the two chains would seem safer in that regard?

If the cartel's change is not too radical, the holders of large hoards of cheap coins will not want to sell, for the same reason that they are not selling now:  they would still hope to make large profits in the future.  On the contrary, they would hold and support the cartel's decision, in order to preserve that expected return.

EDIT: the cartel would probably mirror the transactions of the rebel chain on their chain too, as long as they are valid in both chains.

Academic interest in bitcoin only. Not owner, not trader, very skeptical of its longterm success.
JorgeStolfi
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January 06, 2015, 11:23:27 AM
 #19778

you could say that regardless of how decentralized bitcoin is or was, it always relies on miners (pools) to secure the blockchain, whether this is 4, 40, 400, 4000 etc.. regardless of the #, they could at any time decide to collude for 51% hashing power.  There is no incentive for pools to conspire and regardless of the number of pools needed to reach 51%, there will always be a certain # of pools that "could" conspire.  There are 4 US banks that could conspire to destroy the USD, but what incentive do they have to do so?

The largest banks clearly conspire, as an explicit or tacit cartel, to obtain maximum profit.  That is one reason why bank fees are so high compared to the actual costs (including fraud damages) and large banks are so obscenely profitable.

The correctness of the bitcoin protocol apparently was based on the implicit assumption that a sufficiently large number of users would have sufficient hashpower to fight attacks, and, having a vested interest in the health of the network, would want to do so.  (It is the same assumption used to justify democracy with frequent direct elections.)  That assumption is not valid if there are 4 mining entities that hold the majority of the hashpower, and are not even significant holders of bitcoins.

Academic interest in bitcoin only. Not owner, not trader, very skeptical of its longterm success.
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January 06, 2015, 11:26:33 AM
 #19779

Your prose is amazingly polished and clear. You are a professor of something. Philosophy is my guess

http://en.m.wikipedia.org/wiki/Jorge_Stolfi

Dunno why but I though you already knew him.

Bitcoin is a participatory system which ought to respect the right of self determinism of all of its users - Gregory Maxwell.
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January 06, 2015, 11:27:45 AM
 #19780

Aww, give him a break, it is a public Uni, so government payroll and in a country arguably even more socialist than the US.  It is a handicap difficult for most to overcome, at least until they are tenured.
We can't expect him to even nibble at the hand that feeds him.  Even though the criticisms are fairly speculative, at least he is looking at it.

I am already tenured, actually, so I could badmouth the government at will (which in fact I do) with no risk. 

But of course I can't expect someone who is invested in bitcoin to admit that its future is in danger.  Wink


Academic interest in bitcoin only. Not owner, not trader, very skeptical of its longterm success.
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