If you make a better solution and you put it out to market, you compete fairly. Through competition, because people use your product. Not because you're cowed into... DDoS attacks or anything like that. Not because of all of that.
Bitcoin Unlimited found the flaw as well. Some of these thing that Unlimited have been doing [are] very innovated.
[New slide, Moore's Law is our friend]
At the end of the day, Moore's Law [is] our friend. The smallest transistor---well, I'm probably being superseded already, but I've got a paper coming out on this, and the editors picked out a mistake because I said a 2 nanometer transistor and it turns out there's now a 1 nanometer transistor.
When all this happened, people were arguing that because of quantum tunneling, this is impossible. "At six nanometers, it will never be done." Guess what? It's been done.
So stop this, "oh, we can't do it" and "oh, everything's bad" idea. The reality is we need to start being optimistic, positive, and build. Allow competition. Allow free access to code. Allow people to actually start competing. No building little walled bloody gardens.
Bitcoin... I've got lots of people saying this is bullshit. It's in the code: flood control. It worked. Why? Because of the value of it. It didn't work way back then, and people could've done these things, and Hal and Bear go their way and put this bloody cap in there.
Quite frankly, I'm disgusted with half the community. Anyone know who Bear is? Bear is Cryddit; that's his name on Reddit and whatever else. Bear was the third person involved, properly running nodes and whatever else. You can look up who he is; he's a friend of mine. So...
One of the things that happened to him. He came on and started talking. Mr. Maxwell, others, ripped the shit out of him and he's gone back to being curmudgeon like I like being. He doesn't talk; he doesn't get involved anymore---and he's a shit hot coder. Better than anyone I have met in any of the core areas, by far, and he's no longer involved. Not because his ideas are shit but because people didn't like what he was saying; made death threats against him; added things against his family.
That's got to change.
Flood control works. If you are getting a big block and someone's paying you to put transaction in there because we want 5 billion people using this, which miner is going to turn it away? If you get paid a little tiny amount per transaction, then you buy another hard drive and you take it.
This is capitalism. It is competition. It is brutal and ruthless and it works. If you can't keep up, bye-bye.
Segregated Witness, typical problem right now in this bloody industry. Scientific method: it doesn't exist. We just tell people, "this is what you're going to do." When you want a scientific process, you come up with an idea and then you test it.
Removing incentives. What incentive is there to be a miner of a little bit of a shitcoin settlement for everything else when you're getting money from everyone?
How does Coke make money sugar water? They do it because volume. They don't make huge profit because charging you 99% of the can. They make a fraction of a cent on every can, but they sell a lot. Miners what to make money, then velocity matters. Velocity of money scales the price. If you increase use, you double right now bitcoin, and velocity formula tells you that you 2 times .94 with the inflationary amount times the value.
If you scale 100 times, price from velocity alone increases 94 times. What miner will not take a hundred times the block size if they one hundred times the fees? Any miner here [want to] say, "piss off, I don't want a hundred times the amount of value from bitcoin"? No? Ok.
Overall, every time we split into sidechains, we take away a little bit about what secures the network. Every time we do that, it becomes less secure. Every time we create an altcoin, less secure. Every competing option that takes something from the overall network makes this one, once in a lifetime, once in any part of history, experiment less viable.
Bitcoin differs in that it's the only scarce good that has truly existed. Gold wasn't. Gold has been manipulated, changed, et cetra. Gold has been flooded. After the Spanish came and discovered the Americas, or rediscovered really, there was something called the rain [or reign] of gold and the rain of silver. Ships, big galleons, would come in and deposit all the silver and gold they'd taken, and within weeks it was all gone.
No industries were build, just luxuries. And that's the difference. As soon as you start inflating things, soon as you start changing it---allowing sidechains---then, well, you take everything that matters away.
Selfish mining: a lot of these problems started because of that. We got a paper coming out soon. It's gone through editing and all the rest. There are several versions because my mathematical version is going to scare the shit out of everyone because I actually happen to be a mathematician; a scary word that.
Basically it's flawed premises. Bitcoin is not a Poisson model; it approximates a Poisson model. When we have these little diagrams that people like to do for queuing models, well one you would need to use a negative binomial to be right there---but that's even wrong. They're only correct if you have no deviation; if no one defects.
The Poisson is only approximate if everyone is doing what their meant to do and never changes. So we're releasing the actual mathematics and how things work in Bitcoin, which some people will understand and those who don't can put it into a computer program and a computer can simulate it. Then we start getting all these things correct.
Now, the model. Emmons [?] deleted every aspect of any code he ever wrote for his model, but luckily I have some. I kept it and archived it for him because, well, he would never want the fact that he missed all these things lost to posterity.
Now, when you create a model in science, you test it. You don't test your model; that's what we're all doing right now and we're testing our model. That just tells you you have a model. Who cares? If you can't run it on Bitcoin, who cares?
One of the things in Slack channels I've been doing at the moment is I've been incentivizing people to do things I've already done. There is a selfish miner test run on VMs going on at the moment. Real VMs, real tests, real whatever else. And I'm funding it. That doesn't mean it's not independent. I have said you get paid, because I've put it in third-party escrow, either way. I've put bitcoin up to pay for all the VMs and all the testing and all the code, and it will all be public. So it's not just my math; I'm getting it independently verified by other people in the community. Over and over.
So, Turing completeness. I've had a lot of shit about this one. Guess what: you're all wrong, it is. What you're not going to get is that you've missed it.
There are actually, we have what is called a decider in Bitcoin. It follows some of the predicate logic of Gödel. Gödel, back around the time of Turing, wrote a lot of mathematics around the idea of predicate systems. If you're a mathematician, you would know this shit, but not everyone is. So Bitcoin a 2-PDA. Now, 2-PDA, all those little squiggleys, unfortunately once again, they're from a paper that is coming out. Those little squiggleys actually mean that it is Turing complete.
I'm not going to explain that to you right at the moment. I'm going to say that... any recognize what that is? That's a Wolfram 110. Anyone know what a Wolfram 110 is? It's the simplest Turing-complete system. That's in Bitcoin. It was running until a few months ago. We had PSOs in Bitcoin, running. Unfortunately they starved to death---fees.
So we had the first self-evolving in Bitcoin, that ran for two years. There are people that know about these now; that's why I'm mentioning them. They've been discovered. It's not just me. They're dead! Because they can't afford the fees. And I'm not going to fund a thing requires $3.00 every bloody block to keep running, it becomes expensive very quickly. When it's low fees, all sort of things can run. So, these are there.
IP to IP transactions. Does no one look at the old code any more? We keep saying, "this is not meant to be there." The market database in Bitcoin allowed IP to IP transactions. There was a reason for these. The whole idea is to have a merchant-type solution. I should be able to go up and just tap something, and I don't even give a shit whether my transaction has settled properly. All I care about is going up to the merchant, and the merchant will propagate my transaction.
Why will the merchant propagate my transaction? Because they want to get paid. Merchants are not going to sit there and go, "well, maybe at the end of the month I'll run all this shit." They won't, because you will double spend. Merchants have the incentive to ensure that zero-conf works right now. Why? Because they want to be paid!
It's very simple. Economics makes this work. It is not security toys. It is not any of these little fluffy bits of crap that we say are really security the network.
I've work in the security industry for a long time. I've been a pariah in that industry for a long time because I, way back when, have said "economics matters". I'm on Richard [Bell-something]'s site as Security Clown because I put a risk algorithm that every takes a little bit out of context and says, "you know where that risk algorithm is used right now? When you have two-factor and you get SMS and other updates to your phone for Internet banking, that's that algorithm." So my fluffy little piece of crap algorithm happens to be running on banks globally.
So he can call me a clown all he wants. Quite simply, I got paid for it, I don't care.
Wallets to merchants. We need to start building better wallets. I cannot do frontends to save myself. I'm a good low-level coder; I can do library code, things like that. Other people can do other things; my frontends suck.
Now, here's the thing, we've had eight years, and you know how good our frontends are in Bitcoin? They suck. All of them. I don't care who gets offended on this one; every one of our bloody frontends right at the moment, our wallets, suck. We need competition in that. We need people making really shit-easy ones.
When I started DeMorgan in Australia before I moved out here, the thing I gave to our staff and what I want: my grandmother has to be able to use this. My grandmother has to be able to just make a payment. She doesn't use computers, although I mean, my grandfather before he died was one of the earliest users of computers in Australia with Melbourne IT and other things he did. My grandmother stays away. She's 96 and she's not going to change. But she needs to be able to use money.
The early days we had poker nodes in Bitcoin. We had merchant databases in Bitcoin. All of this has been stripped. It shouldn't be in the main core protocol. Wallets need to be developed independently. Why? Because that's how they compete.
We don't want one, we want a world-using Bitcoin. That's simple. We want it secure. And we want it able to be used between many people.
Replaceable transactions versus replace by fee. Replace by fee is the biggest piece of shit every created [audience applause]. And I'm to say that very nicely because that's not actually what I feel about it, but I've been told that I'm not allowed to say my true feelings, so I'll put it lightly that it's complete utter shit.
Replaceable transaction: when you hadn't broadcast something to the network and you were negotiating a payment channel, that was valid. Why? Because you're negotiating. When you send it to a miner and you allow a miner to start playing with it, zero confirmation doesn't work.
Risk is not perfect. Every system---every one---is probabilistic. There is no single system ever created that is not probabilistic in security.
Does any here know what Alan Turing was before he became famous as a cryptographer? He was a Bayesian statistician. In the early days, statistics and Bayes theory and things like that were the core of creating risk-based systems. Right now we seem to have forgotten that. We seem to have forgotten that we cannot ever get a perfect system.
We don't drive around in tanks. We drive in cars. We fly. Anyone here done something stupid like bungee jumping or jumping out of a plane? Yes. I've pushed our kids out of the plane too, and not because they gave me the shits either.
What we need are payment systems. We need merchants who give a shit. Merchants will do these things. If we start doing unlimited block size strategies where we just allow things to grow, our cost goes there [points to line chart]; Visa's cost goes there [points to other line]. We can run cheaper than Visa on our network right now. We can scale bigger than Visa right now.
And here is the thing that they're lying to you about: the bloody bullshit from people like Luke [Dashjr?]. What they really want to destroy is corporate. Companies. That's what they fear. Companies do not act together. Companies are people.
