Ben Laurie is a respected cryptographer (he maintains OpenSSL and is in charge of security research for Google) and he's skeptical of BitCoin, a virtual, cryptography-based currency that has attracted a lot of attention. Ben has written three posts describing his objection to "proof-of-work" as a basis for a virtual currency, and they're great reading, as are the followups from his readers. I don't have the crypto chops to have a strong opinion one way or another on this, and in situations like that, watching people a lot smarter than me arguing is my best strategy for getting smarter myself:
Also, for what its worth, if you are going to deploy electronic coins, why on earth make them expensive to create? That's just burning money - the idea is to make something unforgeable as cheaply as possible. This is why all modern currencies are fiat currencies instead of being made out of gold.
Bitcoins are designed to be expensive to make: they rely on proof-of-work. It is far more sensible to use signatures over random numbers as a basis, as asymmetric encryption gives us the required unforgeability without any need to involve work. This is how Chaum's original system worked. And the only real improvement since then has been Brands' selective disclosure work.
If you want to limit supply, there are cheaper ways to do that, too. And proof-of-work doesn't, anyway (it just gives the lion's share to the guy with the cheapest/biggest hardware).
Bitcoin, Bitcoin 2, Bitcoin is Slow Motion
The IRS knows about the cryptocoins and wants you to pay taxes on them. The Wall Street Journal reports that the warning letters are going out. An IRS spokesman declined to say whether the letters stem from information turned over by digital-currency platform Coinbase. In mid-March of 2018, Coinbase provided data—under a federal court order—on […]
A report from Bitwise -- an investment firm lobbying for FEC approval for a cryptocurrency based exchange-traded fund -- found that 95% of the trading volume in Bitcoin was fake, ginned up through techniques like "wash trading" where a person buys and sells an asset at the same time.
Facebook is said to be developing a ‘stablecoin,’ which is a kind of digital currency pegged to the U.S. dollar.
The field of data analytics is growing as fast as the internet itself. Self-driving cars, airline pricing, and huge marketing campaigns are all driven by the insights that data scientists can distill out of vast sums of information. Even with the help of powerful software like Python, it’s a highly skilled position. But those skills […]
If you’re marketing on the web, your Google-fu needs to be strong – and up to date. Without a firm grasp on what drives traffic, you’ll never be able to take the wheel. That’s why even if you know where to put your keywords, a little extra effort goes a long way on any marketer’s […]
Want to keep the dentist away? A little tooth care at morning and night isn’t bad, but it won’t keep the stains from smoking or fried foods at bay for long. If you enjoy your food and want to avoid the consequences, an upgrade from that old analog toothbrush can make a huge difference. Among […]