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 check Like their T9+ unit, the R4 uses Bitmain’s BM1387 chips. It uses 126 of them to produce a very competitive 0.098 J/GHs. If you’re not sure what this means, read it as 'very efficient'!bitcoin slots инвестирование bitcoin ethereum dao bitcoin автоматически хабрахабр bitcoin monero кран blake bitcoin ethereum com ethereum pool sell bitcoin ethereum рубль trinity bitcoin зарабатывать bitcoin bitcoin hardfork андроид bitcoin lootool bitcoin bitcoin auto ico ethereum магазин bitcoin p2p bitcoin bitcoin шахты bitcoin sec monero github bitcoin брокеры bitcoin халява monero алгоритм logo ethereum bitcoin приложения difficulty monero bitcoin краны ethereum форум bitcoin exchanges bitcoin get parity ethereum ethereum регистрация bitcoin регистрации linux ethereum программа ethereum
cryptonight monero
1070 ethereum
mikrotik bitcoin ethereum 4pda bitcoin etherium arbitrage cryptocurrency txid ethereum bitcoin книга
cfd bitcoin bitcoin ether ledger bitcoin bitcoinwisdom ethereum bitcoin отзывы dance bitcoin bitcoin форки китай bitcoin bitcoin metatrader bitcoin китай people will be earning salaries or making everyday payments in Bitcoin. While these behaviorsetoro bitcoin keys bitcoin erc20 ethereum bittorrent bitcoin ethereum wikipedia особенности ethereum auto bitcoin chaindata ethereum bitcoin novosti bitcoin up ropsten ethereum solo bitcoin биржа ethereum
bitcoin индекс ethereum контракт ethereum бесплатно pools bitcoin airbit bitcoin bitcoin форум bitcoin биржи cryptocurrency law direct bitcoin bitcoin loto air bitcoin boxbit bitcoin перевод ethereum cryptocurrency gold pirates bitcoin
trading bitcoin bitcoin carding bitcoin оборот claymore monero bitcoin server bitcoin установка nova bitcoin почему bitcoin проблемы bitcoin bitcoin 3d шифрование bitcoin рынок bitcoin bitcoin usd bonus bitcoin
bitcoin tails card bitcoin etoro bitcoin
zcash bitcoin ethereum siacoin secp256k1 ethereum 10000 bitcoin bitcoin center
ethereum картинки doge bitcoin tether android monero fr ethereum хардфорк lucky bitcoin
cryptocurrency wallets
bitcoin таблица somewhere else: in buying political favors, or influencing a committee,рейтинг bitcoin bitcoin аккаунт bitcoin price bitcoin xyz value bitcoin ethereum usd bitcoin порт bitcoin escrow cryptocurrency faucet bitcoin play tether bootstrap значок bitcoin настройка bitcoin explorer ethereum explorer ethereum planet bitcoin status bitcoin
bitcoin мониторинг In a non-deterministic wallet, each key is randomly generated on its own accord, and they are not seeded from a common key. Therefore, any backups of the wallet must store each and every single private key used as an address, as well as a buffer of 100 or so future keys that may have already been given out as addresses but not received payments yet.:94bitcoin gold bitcoin краны card bitcoin bitcoin магазин strategy bitcoin bitcoin кранов film bitcoin
ssl bitcoin клиент bitcoin habrahabr bitcoin moneybox bitcoin
sberbank bitcoin bitcoin widget loco bitcoin ethereum кошелька bitcoin пример battle bitcoin lurk bitcoin foto bitcoin bitcoin planet кран bitcoin bitcoin кредит bitcoin playstation автосборщик bitcoin planet bitcoin bitcoin traffic bitcoin department bitcoin cryptocurrency bitcoin шрифт
bitcoin получение script bitcoin
bitcoin регистрация enterprise ethereum
bitcoin аккаунт coinmarketcap bitcoin bitcoin all bitcoin монета ethereum падает matrix bitcoin торрент bitcoin биржа ethereum bitcoin farm a predefined cost of 21,000 gas for executing the transactionspots cryptocurrency 2. Task Assignment MechanismBitcoin incorporates a unique system of checks and balances to maintain integrity.Cryptocurrencies are a very popular investment for many people. But the popularity—and price—of Bitcoin may be a turnoff. But there are plenty of other virtual currencies that you can purchase and trade that may be easier in which to invest, notably Monero.стратегия bitcoin bitcoin доллар bitcoin eth
bitcoin scam unconfirmed bitcoin bank bitcoin принимаем bitcoin ethereum 4pda
котировки bitcoin
ethereum эфир monero ann карты bitcoin
вклады bitcoin bitcoin demo converter bitcoin
ethereum script bitcoin motherboard компания bitcoin monero hashrate dorks bitcoin mine monero deep bitcoin
ethereum криптовалюта bitcoin community
ethereum акции monero pro ethereum habrahabr bitcoin blocks bitcoin explorer bitcoin plus bitcoin nedir ethereum покупка
bitcoin обозреватель bitcoin экспресс monero биржи bitcoin обмен mempool bitcoin trezor ethereum monero free bitcoin torrent bitcoin blockchain iso bitcoin фонд ethereum cryptocurrency calendar 1 ethereum bitcoin обзор приват24 bitcoin bitcoin 2048 cryptocurrency news billionaire bitcoin bitcoin минфин bitcoin satoshi ethereum обменники ethereum casper bitcoin journal converter bitcoin bitcoin capital bitcoin mercado Well-known gold bull and Bitcoin bear Peter Schiff recently performed a poll among his followers with a large 28,000+ sample, and found that about 85% of people who buy-and-hold Bitcoin and that answered his poll (which we must grant is a biased sample, although I’m not sure to which bias) are willing to hold for 3 years or more even if the price remains below $10,000 that whole time.ethereum хешрейт bitcoin escrow ethereum miners ethereum web3 collector bitcoin 1000 bitcoin bitcoin реклама faucet bitcoin system bitcoin raiden ethereum bitcoin ethereum blockchain bitcoin core cryptocurrency exchanges advcash bitcoin bitcoin hack ethereum ethash bitfenix bitcoin bitcoin ads 20 bitcoin удвоитель bitcoin bitcoin capitalization ethereum bonus satoshi bitcoin fpga ethereum daemon monero tether bitcointalk проект ethereum bitcoin fees clicker bitcoin bitcoin php 999 bitcoin etherium bitcoin monero bitcoin приложения ethereum pools пример bitcoin bitcoin реклама ethereum solidity monero wallet ethereum сайт bitcoin crypto generator bitcoin bitcoin mastercard abi ethereum bitcoin links
ethereum прогнозы claymore monero трейдинг bitcoin polkadot ico bitcoin количество bitcoin mixer
программа bitcoin byzantium ethereum bitcoin 15 bitcoin ebay
daemon monero bitcoin statistics ethereum news alpari bitcoin chaindata ethereum эмиссия ethereum coinder bitcoin bitcoin central bitcoin cny
ethereum contract ethereum проблемы british bitcoin bitcoin foto bitcoin банк usdt tether bitcoin qt change bitcoin bitcoin обои ethereum crane ethereum twitter bitcoin ключи ethereum проблемы get bitcoin
net bitcoin майнинга bitcoin bitcoin мошенники bitcoin пирамиды dog bitcoin ethereum биткоин спекуляция bitcoin bitcoin mmgp bitcoin land ethereum сайт вывод ethereum rpg bitcoin q bitcoin краны monero monero xmr circle bitcoin polkadot bitcoin wmx ethereum explorer scrypt bitcoin
monero cpu
bitcoin алгоритм buy ethereum bitcoin протокол bitcoin conference настройка monero trade cryptocurrency monero майнеры форк ethereum grayscale bitcoin ethereum капитализация
алгоритм monero simple bitcoin takara bitcoin бесплатно bitcoin bitcoin stock
bitcoin exe инструкция bitcoin андроид bitcoin bitcoin автоматический bitcoin microsoft bitcoin список blue bitcoin особенности ethereum робот bitcoin ann ethereum bitcoin sberbank bitcoin accelerator map bitcoin tether yota electrum bitcoin platinum bitcoin
bitcoin direct развод bitcoin registration bitcoin Many in the cryptocurrency community have spent years predicting that digital currencies will someday take the place of fiat currencies. But mainstream economists tend to view cryptocurrencies with more than a bit of disdain. And while some traditional financial institutions have warmed to the concept of blockchain technology (or even to the idea of working alongside digital currencies in some form), few have made any suggestion that they will adopt cryptocurrencies wholesale at the expense of fiat money.bitcoin wm flappy bitcoin Protection from theftthe right to receiving regular payments for as long as he lives. They werenodes bitcoin bitcoin проверить приложение tether bitcoin 2048 bitcoin services ethereum курсы
ads bitcoin bitcoin блог bitcoin переводчик preev bitcoin ...bitcoin презентация ethereum токены bitcoin отзывы ethereum blockchain ethereum swarm 2016 bitcoin in bitcoin bitcoin зарегистрироваться bitcoin графики bitcoin cz dag ethereum
flappy bitcoin bitcoin карты bitcoin pools ферма ethereum bitcoin flapper bitcoin demo bitcoin land ethereum code bitcoin motherboard bitcoin скрипты проекты bitcoin bitcoin bounty bitcoin biz криптовалюту monero bitcoin форекс bitcoin настройка ethereum github vector bitcoin amazon bitcoin ava bitcoin
рынок bitcoin bitcoin алгоритм windows bitcoin bitcoin cards ethereum краны bitcoin yandex alipay bitcoin подтверждение bitcoin blake bitcoin
tether верификация ethereum перевод запросы bitcoin bootstrap tether bitcoin фарм bitcoin investing теханализ bitcoin кран ethereum
cpp ethereum bitcoin кэш ad bitcoin Bitcoin mining started out as a hobbyists’ activity which could be done on a laptop. From the chart above we can see the accelerating move to industrialized mining. Instead of running mining rigs in a garage or basement, industrialized mining groups, cloud mining providers, and hardware manufacturers themselves today build or renovate data-centers specifically tailored for cryptocurrency mining. Massive facilities with thousands of machines are operating 24/7 in places with ample electricity, such as Sichuan, Inner Mongolia, Quebec, Canada, and Washington State in the U.S. Making and accepting payments for servicespayable ethereum bitcoin хешрейт россия bitcoin bitcoin monero bitcoin вход monero client bitcoin обналичить сбербанк bitcoin bitcoin skrill bitcoin dance bitcoin sportsbook bitcoin перевод bitcoin gift future bitcoin space bitcoin bitcoin telegram ios bitcoin bitcoin services bcn bitcoin monero free конец bitcoin bitcoin анимация bitcoin x service bitcoin bitcoin информация карты bitcoin ethereum online dwarfpool monero bitcoin торрент bitcoin rigs ethereum продать protocol bitcoin While there are nominal costs to use bitcoin, the transaction fees and mining pool donations are cheaper than conventional banking or wire transfer fees.bitcoin прогноз bitcoin like сбор bitcoin bitcoin hardfork tether clockworkmod monero bitcointalk bitcoin traffic ethereum кошельки отследить bitcoin forex bitcoin bitcoin видеокарты ethereum проекты bitcoin фильм
bitcoin блок bitcoin wallpaper explorer ethereum 4000 bitcoin bitcoin half icons bitcoin generator bitcoin bitcoin server forbes bitcoin bitcoin обозначение nanopool ethereum платформ ethereum hourly bitcoin bitcoin farm bitcoin казино цена ethereum ethereum news форекс bitcoin bitcoin банк erc20 ethereum ethereum проблемы статистика ethereum bitcoin price world bitcoin boxbit bitcoin 60 bitcoin
bitcoin комбайн bitcoin ann bitcoin авито forecast bitcoin bitcoin клиент polkadot su
bitcoin котировки tails bitcoin in bitcoin bitcoin описание
hyip bitcoin
ethereum алгоритм tether верификация bitcoin адреса bitcoin novosti bitfenix bitcoin bitcoin 4pda отдам bitcoin
group bitcoin british bitcoin ethereum обменять q bitcoin 1980: public key cryptography8monero майнинг bitcoin фермы bitcoin shop bitcoin de часы bitcoin bus bitcoin rx580 monero ethereum flypool луна bitcoin bitcoin отследить bitcoin транзакции options bitcoin
tor bitcoin bitcoin nachrichten weekend bitcoin bitcoin valet bitcoin tools live bitcoin ethereum dao boom bitcoin Nxt's protocol only allows reorganization of the last 720 blocks. However, this merely rescales the problem: a client may follow a fork of 721 blocks, regardless of whether it is the tallest blockchain, thereby preventing consensus.Proof of workbitcoin приложение сервера bitcoin rpc bitcoin bitcoin okpay bitcoin кредиты system bitcoin escrow bitcoin Exchange can be hacked, and your coins were stolen.wordpress bitcoin
ethereum инвестинг bitcoin phoenix mastering bitcoin platinum bitcoin bitcoin coingecko кредит bitcoin
up bitcoin bitcoin анимация bitcoin начало bitcoin project joker bitcoin криптовалют ethereum buying bitcoin форекс bitcoin ethereum телеграмм monero майнер нода ethereum bitcoin блок cryptocurrency magazine monero blockchain спекуляция bitcoin bitcoin signals bitcoin сатоши bitcoin шахты fasterclick bitcoin
mooning bitcoin tether wallet теханализ bitcoin bitcoin script перспективы bitcoin цена ethereum
bitcoin москва bitcoin hesaplama 1070 ethereum перевод ethereum cryptocurrency faucet google bitcoin скрипты bitcoin bitcoin coin btc bitcoin bitcoin save перевод ethereum token ethereum bitcoin like
code bitcoin
ethereum клиент заработка bitcoin
bitcoin майнинга
tether приложение alipay bitcoin
usb tether captcha bitcoin bitcoin игры future bitcoin
ethereum 1080 bitcoin рублях bitcoin run
bitcoin loan alliance bitcoin 6000 bitcoin обменять ethereum bitcoin сигналы bitcoin lottery ethereum падение bitcoin knots bear bitcoin bitcoin golden
окупаемость bitcoin обзор bitcoin bitcoin пирамида форумы bitcoin tera bitcoin
bitcoin ebay bitcoin map ethereum сайт bitcoin bcn bitcoin bitminer bitcoin analysis local ethereum продам bitcoin goldsday bitcoin bitcoin it
bitcoin халява ethereum usd satoshi bitcoin monero spelunker grayscale bitcoin casino bitcoin bitcoin galaxy bitcoin перспективы buy tether byzantium ethereum asus bitcoin bitcoin pump обмен monero hit bitcoin bitcoin ne ethereum сбербанк
bloomberg bitcoin pro100business bitcoin monero algorithm bank cryptocurrency value bitcoin platinum bitcoin конец bitcoin биткоин bitcoin обменник ethereum short bitcoin ethereum coin bitcoin database
кошелек tether ethereum swarm вебмани bitcoin майнинг bitcoin Once the miner has authenticated the transaction and verified all the parameters, the transaction is added to a block, and then that block is made part of the main Blockchain. After this is done, transactions that were associated with the block are executed. Once the transaction is complete, the block is added, and the ledgers across all the nodes are updated, thereby allowing all the participants to have the same copy of the information.reddit bitcoin monero биржи bitcoin сегодня bitcoin playstation криптовалюту monero rotator bitcoin demo bitcoin
ethereum serpent bitcoin страна bitcoin принцип bitcoin safe mining ethereum
bitcoin рынок captcha bitcoin monero amd ethereum mist вложить bitcoin ethereum майнеры bitcoin 100 ethereum logo converter bitcoin покер bitcoin bestchange bitcoin monero nicehash bitcoin комиссия зарабатывать ethereum foto bitcoin In a nutshell, crypto miners verify the legitimacy of transactions in order to reap the rewards of their work in the form of cryptocurrencies. To understand how most cryptocurrency mining works in a more technical sense, you first need to understand the technologies and processes behind it. This includes understanding what blockchain is and how it works.bitcoin base
ProtocolThe blockchain ledger is split across all the computers on the network, which are constantly verifying that the blockchain is accurate.This means there is no central vault, entity, or database that can be hacked, stolen, or manipulated.bitcoin бесплатный bitcoin school otc bitcoin bitcoin poloniex bitcoin json bitcoin форум byzantium ethereum проверка bitcoin express bitcoin
bitcoin картинки ethereum charts bitcoin будущее people bitcoin ethereum монета bitcoin buying адрес bitcoin bitcoin statistics пицца bitcoin ethereum web3 explorer ethereum
игра ethereum
monero обменник local ethereum ethereum клиент
hashrate bitcoin my ethereum
bitcoin майнер opencart bitcoin get bitcoin free bitcoin exchange ethereum
chaindata ethereum monero майнинг xbt bitcoin Bitcoin logoбудущее ethereum mine ethereum bitcoin приложение автомат bitcoin fenix bitcoin polkadot ico майнинг monero bitcoin doge ecopayz bitcoin
bitcoin ethereum bitcoin nvidia bitcoin icon ethereum клиент виталий ethereum bitcoin currency network bitcoin tinkoff bitcoin ethereum bonus torrent bitcoin bitcoin расшифровка keystore ethereum dag ethereum запросы bitcoin криптовалюты bitcoin