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.
metatrader bitcoin bitcoin calculator etherium bitcoin bitcoin forex bitcoin collector tether верификация bitcoin wm ethereum обмен bitcoin crush bitcoin экспресс bitcoin кредиты ecdsa bitcoin bitcoin форумы
monero minergate
кран ethereum
bitcoin analysis отслеживание bitcoin calculator bitcoin
bitcoin таблица bitcoin brokers bitcoin payza accepts bitcoin программа ethereum bitcoin switzerland майн ethereum ставки bitcoin bitcoin prices майнинга bitcoin
bitcoin сокращение bitcoin инструкция bitcoin разделился bitcoin value настройка ethereum bistler bitcoin разработчик ethereum nya bitcoin bitcoin аккаунт я bitcoin r bitcoin ethereum bitcoin asics bitcoin цена ethereum эмиссия ethereum bitcoin carding escrow bitcoin bitcoin bear удвоить bitcoin cryptocurrency tech бесплатные bitcoin кошелька bitcoin script bitcoin часы bitcoin автосерфинг bitcoin
bitcoin команды ethereum майнить cryptocurrency magazine bitcoin change monero blockchain secp256k1 bitcoin bitcoin iso casper ethereum monero обменять difficulty ethereum group bitcoin bitcoin hash bitcoin shops bitcoin сервер bitcoin coingecko bitcoin crypto bitcoin брокеры
monero gui 1000 bitcoin 2x bitcoin bitcoin protocol токен ethereum bitcoin bat blitz bitcoin mining bitcoin etherium bitcoin goldmine bitcoin обзор bitcoin alpari bitcoin bitcoin 99 bitcoin кошелек monero difficulty bitcoin home cranes bitcoin ethereum стоимость download bitcoin
frog bitcoin tinkoff bitcoin planet bitcoin
bitcoin unlimited balance bitcoin bitcoin робот шифрование bitcoin проверка bitcoin free ethereum bitcoin fasttech erc20 ethereum pixel bitcoin ethereum майнить bitcoin cap перспективы ethereum monero график приват24 bitcoin bitcoin demo новости bitcoin bitcoin sha256
monero fr location bitcoin биржа bitcoin сайте bitcoin
rpc bitcoin купить tether bitcoin explorer bitcoin автосерфинг bitcoin спекуляция обменник ethereum bitcoin rotator 'You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.'новые bitcoin pro100business bitcoin покер bitcoin bitcoin 2017 ethereum конвертер
карты bitcoin ethereum wallet ethereum core space bitcoin coindesk bitcoin
agario bitcoin bonus bitcoin стоимость monero ethereum news bitcoin статья ethereum обвал bitcoin исходники добыча bitcoin bitcoin habrahabr magic bitcoin bitcoin skrill bitcoin investing youtube bitcoin
best bitcoin us bitcoin monero cpuminer ethereum логотип
продать ethereum china bitcoin monero кран bitcoin analytics bitcoin traffic click bitcoin the ethereum bitcoin king zcash bitcoin ethereum game bitcoin double bitcoin падает ethereum перспективы bitcointalk monero кошелек ethereum фото bitcoin monero cryptonight
краны bitcoin кошелек ethereum купить ethereum bitcoin sberbank bitcoin services
ethereum википедия bitcoin synchronization bitcoin compare bitcoin смесители bitcoin fork bitcoin cli monero fork bitcoin stock кран bitcoin котировки ethereum робот bitcoin новости bitcoin nanopool ethereum bitcoin broker ethereum go monero btc top cryptocurrency secp256k1 bitcoin service bitcoin bitcoin работа monero hardware ethereum solidity swarm ethereum top bitcoin
nodes bitcoin bitcoin banks platinum bitcoin
bitcoin бонусы особенности ethereum валюта bitcoin bitcoin best bitcoin site смесители bitcoin ethereum chaindata bitcoin keys выводить bitcoin сбербанк ethereum hashrate bitcoin bitcoinwisdom ethereum bitcoin карта bitcoin автомат криптовалюту monero half bitcoin ethereum decred currency bitcoin bitcoin таблица tether usb bitcoin register bitcoin etf bitcoin алматы автосборщик bitcoin bitcoin scan пул bitcoin видеокарты ethereum яндекс bitcoin
cryptocurrency calendar miner bitcoin redex bitcoin bitcoin video bitcoin antminer bitcoin 10 bitcoin email transactions bitcoin Democratic changes: Investors can change the rules of a DAO by voting on new proposals.сложность monero bitcoin мерчант 16 bitcoin waves cryptocurrency bitcoin суть codeHash: The hash of the EVM (Ethereum Virtual Machine — more on this later) code of this account. For contract accounts, this is the code that gets hashed and stored as the codeHash. For externally owned accounts, the codeHash field is the hash of the empty string.динамика ethereum bitcoin explorer проекта ethereum bitcoin trinity apple bitcoin click bitcoin клиент bitcoin keyhunter bitcoin blake bitcoin
новые bitcoin bitcoin earning bitcoin nyse bitcoin wallet monero новости сборщик bitcoin cryptocurrency bitcoin bitcoin reddit bitcoin оплата wirex bitcoin bitcoin get bitcoin сегодня партнерка bitcoin протокол bitcoin bitcoin сложность bitcoin online masternode bitcoin bitcoin форекс monero usd forum ethereum bitcoin otc bitcoin lurk tabtrader bitcoin bitcoin demo ccminer monero mempool bitcoin playstation bitcoin новости bitcoin ethereum scan ethereum investing monero spelunker explorer ethereum bitcoin аналитика bitcoin монеты rpg bitcoin bitcoin курс ethereum casper bitcoin tor bitcoin alien
bitcoin анонимность monero logo логотип bitcoin bitcoin bear ethereum stats secp256k1 ethereum
bitcoin market
bitcoin хабрахабр bitcoin super bitcoin changer
ethereum android сайте bitcoin bitcoin daemon bitcoin котировки ethereum монета bitcoin шахты bitcoin торговать bitcoin eobot tether обменник bitcoin generate
bitcoin регистрации preev bitcoin ethereum miner майнинг ethereum
flappy bitcoin bitcoin eth tether addon bitcoin 2x half bitcoin bitcoin падает As mentioned in our recent report: 'Revel Systems offers a range of POS solutions for quick-service restaurants, self-service kiosks, grocery stores and retail outlets, among other merchants. POS packages start at $3,000 plus a monthly fee for an iPad, cash drawer and scanner.' It was recently announced that Revel will also include bitcoin as a method of payment in its POS software.cz bitcoin bitcoin aliexpress bitcoin etherium
bitcoin видеокарты
ethereum сайт chain bitcoin bitcoin de 4 bitcoin bitcoin future bitcoin investment проверка bitcoin red bitcoin
it bitcoin
bitcoin иконка капитализация bitcoin транзакции bitcoin investment bitcoin There are many pool options available for mining beside bitcoin. You can easily find lists of mining pools for your cryptocurrency of choice, whether it’s zcash, litecoin or ethereum. Some popular ones are BTC.com, Slush Pool and AntPool.tera bitcoin
If the hospital used a blockchain, however, it wouldn't matter if a computer broke. On a blockchain, the newest version of the data is shared across the entire network and so it is always accessible.free ethereum
bitcoin allstars trust bitcoin bitcoin atm waves cryptocurrency bitcoin segwit free ethereum bitcoin payza bitcoin wiki pinktussy bitcoin
bitcoin rbc обмен tether bitcoin теханализ moon bitcoin
bitcoin приложение
bitcoin hack
monero майнинг bitcoin maps live bitcoin zebra bitcoin ru bitcoin 16 bitcoin cryptocurrency law bitcoin frog CBDCs can increase the economy’s response to changes in the policy rate. For example, during a period of prolonged crisis, CBDCs can theoretically be used to charge negative interest rates.ethereum core bitcoin carding
Whether you mine crypto through legal means.bitcoin кошелька bitcoin значок moto bitcoin ethereum продать buy tether bitcoin roulette bitcoin kurs ethereum доходность bitcoin io калькулятор ethereum monero майнить bitcoin bubble
сбербанк bitcoin preev bitcoin ethereum pools bitcoin 2020 bitcointalk bitcoin tinkoff bitcoin бесплатный bitcoin api bitcoin cryptocurrency это криптовалюта monero little bitcoin курс ethereum claim bitcoin bitcoin play хардфорк bitcoin new bitcoin индекс bitcoin difficulty ethereum bitcoin xyz ethereum контракт ethereum описание настройка monero siiz bitcoin doubler bitcoin cryptocurrency mining
bitcoin миллионеры отследить bitcoin ethereum алгоритм видеокарты bitcoin ico monero freeman bitcoin
bitcoin investment blogspot bitcoin bitcoin knots калькулятор monero blender bitcoin bitcoin цены bitcoin trezor green bitcoin дешевеет bitcoin dash cryptocurrency bitcoin flapper
dog bitcoin bitcoin slots bubble bitcoin bitcoin алгоритм ethereum cryptocurrency
и bitcoin fast bitcoin business bitcoin ethereum сайт collector bitcoin vpn bitcoin monero cpu korbit bitcoin bitcoin купить отзыв bitcoin ethereum пул bitcoin checker konvert bitcoin программа tether wechat bitcoin bitcoin status cryptonator ethereum analysis bitcoin bitcoin mine wiki ethereum bitcoin blue bcn bitcoin solidity ethereum bitcoin кредит monero ann second bitcoin ethereum dag mine bitcoin joker bitcoin bitcoin neteller bitcoin зебра bitcoin переводчик bitcoin список bcc bitcoin bitcoin описание escrow bitcoin bitcoin utopia san bitcoin
ethereum обозначение download bitcoin валюты bitcoin bitcoin koshelek cryptocurrency dash
bitcoin tube bitcoin pools сборщик bitcoin raspberry bitcoin bitcoin json nova bitcoin bitcoin okpay bitcoin автосборщик
payable ethereum ethereum cryptocurrency bitcoin сервисы bitcoin цена pool bitcoin лучшие bitcoin
кошелька ethereum пицца bitcoin ethereum прогноз bitcoin reindex bitcoin weekly
bitcoin ethereum bitcoin change ethereum os takara bitcoin Nodesbitcoin dogecoin Its internal governancebitcoin loan миллионер bitcoin my ethereum bitcoin location bitcoin 3 bitcoin 2x bitcoin symbol bitcoin casinos bitcoin currency calculator bitcoin best cryptocurrency bitcoin banking tether верификация dark bitcoin chaindata ethereum выводить bitcoin bitcoin миксеры Ключевое слово 1. Government StatementsIn cryptocurrency networks, mining is a validation of transactions. For this effort, successful miners obtain new cryptocurrency as a reward. The reward decreases transaction fees by creating a complementary incentive to contribute to the processing power of the network. The rate of generating hashes, which validate any transaction, has been increased by the use of specialized machines such as FPGAs and ASICs running complex hashing algorithms like SHA-256 and scrypt. This arms race for cheaper-yet-efficient machines has existed since the day the first cryptocurrency, bitcoin, was introduced in 2009. With more people venturing into the world of virtual currency, generating hashes for this validation has become far more complex over the years, with miners having to invest large sums of money on employing multiple high performance ASICs. Thus the value of the currency obtained for finding a hash often does not justify the amount of money spent on setting up the machines, the cooling facilities to overcome the heat they produce, and the electricity required to run them. As of July 2019, bitcoin's electricity consumption is estimated to about 7 gigawatts, 0.2% of the global total, or equivalent to that of Switzerland.linux bitcoin bitcoin land
xmr monero monero алгоритм bitcoin миллионеры bitcoin algorithm bitcoin авито вывод ethereum stealer bitcoin lealana bitcoin avatrade bitcoin ethereum заработать bitcoin 4096 ethereum api simple bitcoin mine ethereum видео bitcoin ethereum акции
r bitcoin lazy bitcoin дешевеет bitcoin bitcoin регистрация куплю bitcoin ethereum упал проект bitcoin
finney ethereum bitcoin хабрахабр bitcoin brokers bitcoin количество ethereum dao salt bitcoin bitcoin adress bitcoin fields putin bitcoin ethereum контракты dwarfpool monero Ethereum borrows heavily from Bitcoin’s protocol and its underlying blockchain technology, but it adapts the tech to support applications beyond money. Put simply, a blockchain is an ever-growing, decentralized list of transaction records. A copy of the blockchain is held by each computer in a network, run by volunteers from anywhere in the world. This global apparatus replaces intermediaries.bitcoin price bitcoin 4000 deep bitcoin ocean bitcoin
2016 bitcoin monero новости ecopayz bitcoin tether apk clame bitcoin ethereum проблемы zebra bitcoin ютуб bitcoin ethereum пул
ethereum pool reddit cryptocurrency контракты ethereum game bitcoin faucet bitcoin ethereum com bcc bitcoin сбербанк bitcoin продам ethereum galaxy bitcoin bitcoin pdf bitcoin код
puzzle bitcoin convert bitcoin cryptocurrency capitalization кран ethereum бутерин ethereum bitcoin usb краны monero
bitcoin anonymous bitcoin регистрация life bitcoin tether майнинг bitcoin eobot bitcoin китай monero cryptonote
bitcoin xyz портал bitcoin tether программа blue bitcoin bitcoin ann продаю bitcoin лучшие bitcoin The financial institution could have a technical issue, such as its systems are down or the machines aren’t working properly.This means that nobody can ever spend the same money twice! This can often be a big problem for standard banks and payment systems.ethereum вывод bitcoin converter бесплатный bitcoin difficulty monero Understanding all these predecessors that contain pieces of bitcoin's design leads to an appreciation of the true genius of Nakamoto's innovation. In bit-coin, for the first time, puzzle solutions don't constitute cash by themselves. Instead, they are merely used to secure the ledger. Solving proof of work is performed by specialized entities called miners (although Nakamoto underestimated just how specialized mining would become).alliance bitcoin ethereum dark Decentralized Networksbitcoin online You can get ETH from an exchange or a wallet but different countries have different policies. Check to see the services that will let you buy ETH.счет bitcoin bitcoin valet ethereum контракт ethereum доходность korbit bitcoin bitcoin scripting monero cryptonote machines bitcoin Make all participants 'administrators' of the system, with no central controller.bitcoin цена bitcoin wsj monero майнинг rise cryptocurrency zebra bitcoin bitcoin cgminer
bitcoin code bitcoin x2 bitcoin tor chaindata ethereum bitcoin source production cryptocurrency bitcoin iphone bitcoin armory курса ethereum bitcoin payza ethereum википедия it bitcoin q bitcoin bitcoin life bitcoin java статистика ethereum algorithm bitcoin кошель bitcoin bitcoin информация bitcoin торги ethereum сбербанк
multibit bitcoin bitcoin fake bitcoin курс кошель bitcoin earning bitcoin kran bitcoin bitcoin сервер cryptocurrency charts bistler bitcoin bitcoin rt конференция bitcoin bitcoin hub pull bitcoin secp256k1 bitcoin bitcoin сша bitcoin node bitcoin сколько xmr monero ethereum php primedice bitcoin bounty bitcoin ios bitcoin bitcoin map eth ethereum bitcoin луна майнинга bitcoin lite bitcoin bitcoin venezuela bitcoin clicks bitcoin daily monero калькулятор пополнить bitcoin average bitcoin bitcoin партнерка pow bitcoin рынок bitcoin bitcoin tube китай bitcoin
bitcoin knots ethereum кран
bitcoin miner bitcoin fasttech tether coinmarketcap бутерин ethereum ethereum addresses bitcoin биржи mini bitcoin bitcoin минфин криптовалюту bitcoin claim bitcoin bitcoin pro all cryptocurrency zona bitcoin x bitcoin
bitcoin доходность average bitcoin iphone tether курса ethereum capitalization bitcoin bitcoin вконтакте plus500 bitcoin bitcoin buying invest bitcoin bitcoin q сервера bitcoin сеть ethereum trader bitcoin
bitcoin генератор ethereum bitcoin topfan bitcoin bitcoin 3 ethereum cpu tradingview bitcoin bitcoin мониторинг bitcoin фильм home bitcoin fast bitcoin bitcoin visa
bitcoin xl ротатор bitcoin direct bitcoin bitcoin carding bitcoin price отследить bitcoin
bitcoin price bitcoin widget global bitcoin bitcoin nvidia plus500 bitcoin проект bitcoin bitcoin scripting bitcoin grafik monero обменять скачать bitcoin bitcoin россия сигналы bitcoin simplewallet monero casper ethereum количество bitcoin importprivkey bitcoin хайпы bitcoin
bitmakler ethereum group bitcoin monero amd bitcoin значок акции ethereum
уязвимости bitcoin trader bitcoin
roboforex bitcoin
battle bitcoin mastering bitcoin fox bitcoin 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 bcn bitcoin криптовалюты ethereum bitcoin ваучер bitcoin dice ethereum прогнозы auto bitcoin registration bitcoin халява bitcoin hardware bitcoin people bitcoin hub bitcoin monero freebsd monero amd bitcoin cli ethereum markets ethereum токены
wifi tether bitcoin конвертер пожертвование bitcoin mercado bitcoin bitcoin china Critical Components of Governancebitcoin film
bitcoin лохотрон monero pro tether bitcoin airbit
ethereum network
maining bitcoin форк ethereum
tether apk bitcoin валюты bitcoin links rpc bitcoin field bitcoin moneybox bitcoin bitcoin 50
bitcoin прогноз tether android bitcoin coinwarz виталик ethereum location bitcoin pro bitcoin bitcoin прогноз puzzle bitcoin · There will never be more than 21 million in existence, and they are released over time at a declining rate (at the time of writing, about 8.5 million Bitcoins exist).ethereum форк lealana bitcoin
bitcoin loans
bitcoin bear bitcoin роботы ethereum регистрация bitcoin окупаемость monero 1070 добыча bitcoin get bitcoin bitcoin компьютер стоимость bitcoin stellar cryptocurrency status bitcoin bitcoin принцип конвектор bitcoin 1060 monero ann ethereum ethereum decred 2016 bitcoin konvert bitcoin card bitcoin jax bitcoin sec bitcoin
bitcoin обменники зарабатывать bitcoin bitcoin команды arbitrage cryptocurrency free monero bitcoin loan bitcoin matrix vector bitcoin рост bitcoin wirex bitcoin bitcoin команды reddit cryptocurrency депозит bitcoin bitcoin ixbt bitcoin talk clame bitcoin bitcoin metal
boom bitcoin cronox bitcoin monero пул flash bitcoin word bitcoin cryptocurrency charts wiki bitcoin настройка bitcoin
bitcoin transaction
форум bitcoin bitcoin xl bitcoin торги arbitrage cryptocurrency
bitcoin продам monero hardware avto bitcoin bitcoin bounty bitcoin ethereum credit bitcoin monero logo trade cryptocurrency bitcoin кэш bitcoin apk game bitcoin time bitcoin gold cryptocurrency bitcoin рухнул
bitcoin fake bank bitcoin
цена ethereum bitcoin kurs заработать bitcoin bitcoin official fpga bitcoin ethereum доходность bitcoin вложить bitcoin crash алгоритм bitcoin трейдинг bitcoin client ethereum rate bitcoin bitcoin сигналы bitcoin change новости bitcoin Bitcoin was the first cryptocurrency, first outlined in principle by Satoshi Nakamoto in a 2008 paper titled 'Bitcoin: A Peer-to-Peer Electronic Cash System.' Nakamoto described the project as 'an electronic payment system based on cryptographic proof instead of trust.'bitcoin 2020
