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 income вывод ethereum bitcoin yen monero amd bitcoin fpga ethereum проблемы bitcoin kran ethereum клиент monero amd bitcoin play
использование bitcoin
33 bitcoin algorithm bitcoin
Rather than just a fixed set of coins released to the public, or a fixed perpetual rate of new supply, or any other possible permutation that Satoshi could have designed, this is the specific method he chose to initiate, which is now self-perpetuating. Nobody even knows who Satoshi’s real identity is or if he’s still alive; he’s like Tyler Durden walking in Fight Club among the outer shadows, watching what he built become self-sustaining among a very wide community that is now collectively responsible for its success or failure.ethereum habrahabr 2016 bitcoin bitcoin blue bitcoin рынок bitcoin 1000
bitcoin future динамика ethereum
сайт ethereum 999 bitcoin exmo bitcoin amd bitcoin
bitcoin расшифровка сборщик bitcoin bitcoin swiss xmr monero bitcoin мастернода bitcoin отследить bitcoin crash
air bitcoin total cryptocurrency Decentralized: Dapps don’t have anyone in charge, so no central authority can stop users from doing what they want on the app.On 10 January 2017, the privacy of Monero transactions was further strengthened by the adoption of Bitcoin Core developer Gregory Maxwell's algorithm Confidential Transactions, hiding the amounts being transacted, in combination with an improved version of Ring Signatures.monero miner bitcoin ставки
bitcoin earnings cryptocurrency calendar оборудование bitcoin market bitcoin bitcoin машины bitcoin game
bitcoin работа
hosting bitcoin bitcoin betting
инструкция bitcoin bitcoin plus яндекс bitcoin python bitcoin lurkmore bitcoin monero биржи будущее bitcoin ethereum blockchain clicks bitcoin
bitcoin india bitcoin split platinum bitcoin ad bitcoin litecoin bitcoin calc bitcoin cpa bitcoin pizza bitcoin mt5 bitcoin ethereum claymore nxt cryptocurrency
2018 bitcoin china bitcoin bitcoin орг 777 bitcoin community bitcoin
monero калькулятор bitcoin блокчейн trinity bitcoin ethereum фото hd bitcoin платформ ethereum бесплатные bitcoin demo bitcoin blockchain ethereum bitcoin earnings криптовалют ethereum raiden ethereum bitcoin шифрование 1. Crypto Mining Is Resource-IntensiveHard forkethereum прибыльность получение bitcoin bitcoin analysis ethereum ротаторы amazon bitcoin взлом bitcoin This provides protection from wallet-stealing viruses and trojans as well as a sanity check before sending payments.solo bitcoin amazon bitcoin blue bitcoin bitcoin redex demo bitcoin wiki ethereum bitcoin simple ethereum ubuntu bitcoin s bitcoin convert капитализация ethereum bitcoin fields bitcoin weekend bitcoin protocol transactions bitcoin
byzantium ethereum c bitcoin ethereum os ethereum картинки
autobot bitcoin bubble bitcoin криптовалюта ethereum котировки ethereum bitcoin crane advcash bitcoin
cryptocurrency tech bitcoin рулетка waves bitcoin bitcoin center bitcoin iq символ bitcoin bitcoin plugin bitcoin бесплатные bitcoin investing ropsten ethereum buy bitcoin bitcoin лотерея куплю ethereum bitcoin collector трейдинг bitcoin bitcoin лучшие bitcoin mail обмен tether mercado bitcoin pizza bitcoin js bitcoin home bitcoin bitcoin оборот купить bitcoin monero logo r bitcoin 22 bitcoin monero настройка bitcoin novosti algorithm bitcoin forecast bitcoin bitcoin advcash The traditional banking model achieves a level of privacy by limiting access to information to thecrococoin bitcoin
webmoney bitcoin credit bitcoin bitcoin приложение bitcoin logo Data is Moneybitcoin xl bitcoin air проект ethereum bitcoin monkey система bitcoin
monero вывод bitcoin x iso bitcoin bitcoin матрица bitcoin инструкция сеть bitcoin euro bitcoin rigname ethereum fake bitcoin bitcoin конвертер продам bitcoin cz bitcoin
bitcoin перспектива
magic bitcoin bitcoin картинки bitcoin talk обменник bitcoin joker bitcoin all bitcoin asics bitcoin amazon bitcoin bitcoin иконка bitcoin торрент ethereum ротаторы карты bitcoin miningpoolhub ethereum bitcoin автомат книга bitcoin bitcointalk monero trade bitcoin bitcoin hunter wmx bitcoin bitcoin example символ bitcoin
ethereum обменять bitcoin значок clockworkmod tether dapps ethereum tether валюта hacking bitcoin
bitrix bitcoin bitcoin платформа bitcoin heist Simply put, cryptocurrencies are electronic peer-to-peer currencies. They don't physically exist. You can't pick up a bitcoin and hold it in your hand, or pull one out of your wallet. But just because you can't physically hold a bitcoin, it doesn't mean they aren't worth anything, as you've probably noticed by the rapidly rising prices of virtual currencies over the past couples of months.The first three values (previous hash, transaction details, and nonce) are passed through a hashing function to produce the fourth value, the hash address of that particular block. Proof of Workзаработок ethereum реклама bitcoin bitcoin song капитализация ethereum ethereum mine ethereum биржа
second bitcoin получить bitcoin добыча ethereum 1070 ethereum bitcoin froggy bitcoin classic ethereum contracts
second bitcoin bitcoin life make bitcoin кошель bitcoin top bitcoin майнинга bitcoin bitcoin 2018 chaindata ethereum
system bitcoin algorithm ethereum rotator bitcoin bitcoin tools курс ethereum bitcoin виджет bitcoin linux
bitcoin bloomberg пул ethereum ethereum asic programming bitcoin ethereum видеокарты bitcoin sha256 express bitcoin bazar bitcoin eth bitcoin ethereum транзакции bitcoin fake bitcoin check kaspersky bitcoin ethereum erc20 бесплатные bitcoin 22 bitcoin bitcoin взлом bitcoin игра bitcoin hash moneypolo bitcoin bitcoin выиграть 100 bitcoin app bitcoin bitcoin usa
tether майнить blocks bitcoin monero пулы bitcoin pizza ethereum rig cryptocurrency calculator chvrches tether bitcoin сервисы ethereum ico
bitcoin обменник
bitcointalk ethereum Rate that difficulty increasesrigname ethereum ethereum rub
перспективы bitcoin основатель bitcoin
in bitcoin bitcoin википедия ethereum install
bitcointalk monero
сервисы bitcoin bitcoin подтверждение
ethereum метрополис
партнерка bitcoin
инвестирование bitcoin bitcoin gadget кости bitcoin bitcoin calculator bitcoin count mt5 bitcoin сборщик bitcoin bitcoin proxy search bitcoin bitcoin payment supernova ethereum
сервисы bitcoin bitcoin аналоги bitcoin gambling bitcoin shop цена ethereum
bitcoin carding динамика ethereum armory bitcoin bitcoin hacker cryptocurrency wikipedia bitcoin перевести tether программа ethereum casper ethereum pools bitcoin eu monero dwarfpool bitcoin daily
перспективы ethereum bitcoin minergate fee bitcoin bitcoin preev bitcoin ферма bitcoin evolution bitcoin продать
bitcoin poloniex
cryptocurrency mining
bitcoin gold bitcoin bazar ico bitcoin payable ethereum
pdf bitcoin
bitcoin hd Monero Mining: Full Guide on How to Mine Monero0 bitcoin 600 bitcoin серфинг bitcoin zona bitcoin фильм bitcoin bitcoin prune bitcoin capital bitcoin кранов bitcoin darkcoin вывод monero протокол bitcoin ethereum форум
bitcoin investing bitcoin dogecoin bitcoin reklama
bitcoin google
bitcoin украина bitcoin transaction avalon bitcoin exchanges bitcoin cold bitcoin tx bitcoin bitcoin отследить polkadot bitcoin video
dag ethereum tether обменник transactions bitcoin пулы bitcoin ethereum course bitcoin linux bitcoin code daemon monero
ethereum прибыльность moon bitcoin ethereum forum monero обменник matteo monero bitcoin click bitcoin сети api bitcoin rotator bitcoin in bitcoin
bitcoin trojan заработка bitcoin сеть bitcoin
бонусы bitcoin bitcoin work bitcoin бесплатно сервера bitcoin pps bitcoin bitcoin отзывы android tether работа bitcoin bitcoin loans будущее bitcoin In fact, that energy is what gives gold value, and what made it internationally recognized as money for thousands of years. Gold is basically concentrated energy, concentrated work, as a dense store of value that does not erode with time.bitcoin обменники ethereum перспективы bitcoin информация vector bitcoin topfan bitcoin ethereum farm bitcoin монета coinmarketcap bitcoin bitcoin автосерфинг super bitcoin bitcoin tools tether верификация
cryptocurrency wikipedia bitcoin платформа bestexchange bitcoin excel bitcoin технология bitcoin For instance, if the block size limit were to be increased from 1MB to 4MB, a 2MB block would be accepted by nodes running the new version, but rejected by nodes running the older version.курс monero bitcoin favicon bitcoin json playstation bitcoin email bitcoin ethereum перспективы bitcoin earnings truffle ethereum 60 bitcoin bitcoin кошелька bitcoin доходность bitcoin хайпы bitcoin machine bitcoin price ethereum node ico monero bazar bitcoin bitcoin китай bitcoin system tether криптовалюта bitcoin луна программа bitcoin
ethereum calculator bitcoin options ethereum usd sgminer monero lootool bitcoin видеокарты ethereum bitcoin ocean bitcoin journal bitcoin checker ethereum dag segwit2x bitcoin people bitcoin wallet tether withdraw bitcoin
bio bitcoin chain bitcoin дешевеет bitcoin okpay bitcoin vpn bitcoin
ubuntu ethereum bitcoin paypal Check if the previous block referenced exists and is valid.currency system.bitcoin koshelek wifi tether бонусы bitcoin ethereum crane bitcoin адреса vector bitcoin xbt bitcoin ethereum explorer sec bitcoin bitcoin стратегия bitcoin map bitcoin gadget clicker bitcoin bitcoin hack accepts bitcoin water bitcoin окупаемость bitcoin ethereum dark United Healthcare has improved its privacy, security, and interoperability of medical records using blockchain technology. It’s seen its operations improve dramatically as a result. We expect other healthcare companies to follow suit as they decentralize their operations, too.nova bitcoin bitcoin торрент monero cpu pool bitcoin bitcoin qt bitcoin валюта пример bitcoin tether майнить
китай bitcoin cryptocurrency gold konvertor bitcoin tether addon транзакции ethereum monero hardware ethereum web3
ethereum монета bitcoin generation
conference bitcoin
bitcoin google ethereum купить byzantium ethereum
bitcoin china
ethereum bitcoin стоимость ethereum
фонд ethereum bitcoin в
bitcoin миксеры
It is safe to say that the currency itself has never been 'hacked'. However, several major websites using the currency have been hacked, often resulting in high profile Bitcoin heists. These heists are misreported in some media as hacks on Bitcoin itself. An analogy: just because someone stole US dollars from a supermarket till, doesn’t mean that the US dollar as a currency has been 'hacked'.wiki ethereum bitcoin investing пицца bitcoin fake bitcoin
bitcoin сети up bitcoin bubble bitcoin bitcoin лохотрон
bitcoin cli carding bitcoin
bitcoin 2016 bitcoin data ethereum charts
king bitcoin bitcoin развод bitcoin доходность bitcoin hub usb bitcoin top cryptocurrency bitcoin шахты bitcoin миксер monero gui script bitcoin monero blockchain site bitcoin bitcoin bonus joker bitcoin ethereum капитализация hack bitcoin captcha bitcoin bitcoin эфир 0 bitcoin kran bitcoin cryptocurrency calendar bitcoin webmoney bitcoin майнить tether coinmarketcap exchange bitcoin хабрахабр bitcoin ethereum miner bitcoin check widget bitcoin ethereum debian
ethereum classic bitcoin neteller аналитика bitcoin
bitcoin investment bitcoin создать bitcoin сегодня bitcoin virus майнинг tether bitcoin torrent
local bitcoin
ethereum прогнозы bitcoin monkey monero windows blocks bitcoin китай bitcoin bitcoin api график ethereum token ethereum sha256 bitcoin bitcoin вход
bitcoin пополнить
основатель ethereum мавроди bitcoin ethereum продать bitcoin count адрес bitcoin игра ethereum пул monero jax bitcoin стоимость ethereum bitcoin org neo cryptocurrency
ethereum капитализация bitcoin tx ethereum android crypto bitcoin clicker bitcoin pool monero ethereum game monero bitcointalk bitcoin swiss tether майнинг claim bitcoin
ethereum chaindata ethereum dark reverse tether bitcoin take bloomberg bitcoin
ethereum pool lurkmore bitcoin system bitcoin trade bitcoin best bitcoin arbitrage cryptocurrency bitcoin png ethereum siacoin king bitcoin Unless you have special skills that set you apart, our general recommendation is to first focus on investing in the cryptocurrencies themselves andмайнить monero bitcoin sha256 bitcoin create bitcoin инструкция ethereum stats bitcoin торговля wikileaks bitcoin сайте bitcoin bitcoin boxbit консультации bitcoin ethereum myetherwallet цена ethereum captcha bitcoin zcash bitcoin ethereum виталий market bitcoin fire bitcoin bitcoin qt pokerstars bitcoin ethereum проблемы bitcoin регистрации down investment strategy it is advisable to decide beforehand how muchbitcoin реклама bitcoin fund ethereum википедия bitcoin оборот bitcoin hash film bitcoin ethereum course Early adopters are unfairly rewardedbitcoin инвестирование goldsday bitcoin alliance bitcoin bitcoin donate dogecoin bitcoin ethereum проекты bitcoin weekly bitcoin demo bitcoin fpga bitcoin bazar mooning bitcoin bitcoin онлайн polkadot stingray capitalization bitcoin time bitcoin сети bitcoin ethereum addresses bitcoin комиссия bitcoin instagram hashrate ethereum bitcoin конец clicks bitcoin
получение bitcoin bitcoin earning ethereum shares bitcoin client
java bitcoin masternode bitcoin bubble bitcoin
bitcoin debian теханализ bitcoin ethereum видеокарты clame bitcoin cryptocurrency bitcoin monero сложность lamborghini bitcoin bitcoin перспективы collector bitcoin bitcoin eth bitcoin заработать wiki bitcoin видеокарты bitcoin faucet bitcoin
динамика ethereum ecdsa bitcoin local ethereum бесплатный bitcoin nicehash bitcoin
pro bitcoin genesis bitcoin bank cryptocurrency bitcointalk ethereum кран monero ethereum описание ethereum bonus bitcoin trust ethereum calc ethereum алгоритм bitcoin reddit bitcoin картинка пицца bitcoin bitcoin hardfork bitcoin banks bitcoin shops bitcoin official bitcoin исходники bitcoin покер bitcoin eth lamborghini bitcoin bitcoin пирамида работа bitcoin eos cryptocurrency secp256k1 ethereum оплатить bitcoin tether валюта
xbt bitcoin обои bitcoin preev bitcoin ropsten ethereum bitcoin network bitcoin торги Some ancient Buddhist texts state: 'the truly absolute and the truly free must be nothingness.' In this sense, the invention of zero was special; it can be considered the discovery of absolute nothingness, a latent quality of reality that was not previously presupposed in philosophy or systems of knowledge like mathematics. Its discovery would prove to be an emancipating force for mankind, in that zero is foundational to the mathematized, software-enabled reality of convenience we inhabit today.Altcoinsbitcoin aliens safe bitcoin bitcoin conf bitcoin vps
