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
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.
“After Gerry’s death, Quadriga’s inventory of cryptocurrency has become unavailable and some of it may be lost,” said his widow.
Need to upgrade your sound? Bluetooth technology has never been better, but that’s not the only reason to look into a new set of speakers or headphones. We found ten pieces of audio gear that are already on sale, and you can take an additional 15% off the final price for Memorial Day weekend by […]
Trying to earn a promotion? Memorial Day weekend might be a good place to start. There are tons of e-learning packages that can help you build professional skills a lot quicker (and cheaper) than any technical academy. Whether you want to earn IT certifications, learn to code, become a designer, or anything else, these comprehensive […]
If you’re into tools or gadgets, Memorial Day weekend is your Christmas. Take an extra 15% off the final price of these DIY accessories – all of which are already on sale – by entering the promo code WEEKEND15. LUXJET Universal 24-in-1 Magnetic Screwdriver Set & Repair Kit This small but sturdy kit won the […]