Block Digest #171 – Blockchain Made An Oopsy!

hello everybody today is black digest brought to you at blackhat 570 1054 and today a block J made it whoopsy oh man yeah I guess if you guys aren't clued in on that a Shinobi's taking on the role of PewDiePie this morning and switched around our entire intro and everything I always think you're trying to be mr. Hankey that's my generation to feel here in that voice but uh yeah so we're up there man we're back going good to be back my name is not shinobi it is a ninja poop thing er all right I guess we're gonna have to deal with some of this craziness how you doing this morning Jimmy um I'm fine I'm just wondering I'm not getting all of these references exactly I think the first one was Rick and Morty but I have no idea what the rest was yeah you got to live in the memebers to get all these yeah I sided with Jeanine now I don't get anything at all the nine year olds out there get it all right so yeah we got that to talk about towards the end of the episode a lot to do on that stuff but yeah other than that it's been pretty crazy this past week a lot of stuff going on not too much but a lot of price talk it's been going on I had a couple meetups and I was surprised to see an uptick in attendance and hey you know what the spring weather we actually got out for a bike ride at the meetup that's pretty cool so yeah but what have you been guys been doing this week Dan dark pill has gone dark right I thought he came back I saw him he came back right he did come back but he's made his account private and apparently we have permission to repost his content this makes sense what do you mean his his content you mean my content oh that's all all my original content at everything that I do is completely original it's never never anybody else's stuff oh no we have an attribution fight going on here that's always happening but yeah dark pill I'm glad to see he came back I said glad to see he started a reopened up that thread again where he keeps asking Kevin Pham about Craig Wright and BSB so funny to see him trolling that guy yeah but other than all that craziness what's been going on in the news man a lot of lightning stuff huh actually first I want to give a a quick shout out to Adam or no para Adam Gibson Chris Belcher and max hillebrand we actually did a special edition while Mel para was that the understanding Bitcoin conference I did a kind of open panel on privacy topics so if anybody hasn't watched that yet I would highly recommend checking that out and to to toot our own horn 'he's a little bit i think it was actually more fun and educational than the actual privacy panel at the conference yeah I agree it was it was probably the best honor I've ever seen because it seems like whenever batcher and and Adam Gibson me getting into one room it just just just just it we don't seem like missing out anything when we are discussing a privacy topic and and and our thinking just gets further it's a it's it's it's really it was really great so check out guys it's awesome so what happened on the what's with sort of his birthday pewdiepie monkey Satoshi had a birthday again another one he's some age apparently I think he's like a what is he he 10 or 11 now he's not a nine-year-old though and for that I'm eternally disappointed but uh yeah he's not not really much to it it's just Satoshi kind of filled out some of his bio information on the account forums he had April fifth for his birthday and the the reason that he did this is actually because April fifth in 1933 was the day that Franklin D Roosevelt pretty much outlawed the private ownership of gold and took the the final step really to prevent u.s. citizens from actually protecting their wealth in something that was inflation resistant that effectively culminated in 1971 I believe which was the year Nixon pretty much completely decoupled the US dollar from gold but at the same time made it legal again for US citizens to privately own physical gold and so he kind of set his birthday is April 5th or I'm sorry it was 1975 actually but he said his birthday is April 5th 1975 as kind of a shout out to both of these events the actual day that private ownership of gold was made illegal and then the year that the the financial system was finally decoupled and pushed into a completely fiat based system in exchange for kind of giving people the right back if you want to buy into the semantics that rights equal permissions you get to own private gold again and so you know really just a shout out to Satoshi and you know really just you know all of the little little things like this he did that really just show a much wider appreciation of the the economics of Bitcoin and just the overall economy as things that he deeply understood as opposed to just the narrative a lot of people like to spin or portray that he he just wanted to make some new PayPal so that people can buy things cheaply or the narrative of fake toshi which is he wanted to I don't know and black markets or some baby for sure yeah it's a yeah it's not something like that that's where I like all these little facts and going back and looking at some of the discussions with Satoshi and it's always a little cryptic and you know it's definitely not the character of Craig right that's one of the things where when people buy that it's like you obviously haven't done much digging it back into Satoshi Nakamoto the character and the release and his discussions on Bitcoin talk and just a way that that whole thing evolved and then his absence and leaving and why and everything if you look at that whole side of this space with BSP it's kind of crazy they follow that narrative so yeah like that April 5th 1975 you're right yeah that's a interesting date to try and put the in like just that little fact that this is a little time period where you know gold was made it illegal to hold and there's some reasoning behind that with Bitcoin it's a it's definitely an interesting little tidbit I like to tell people whenever they bring up Nakamoto or you know the white paper or just early days with Bitcoin mm-hmm so I guess I any more philosophical waxing about satochi or should we dive into a series of stories that is going to lead to a very triggered ninja poop flinger yeah yes very quickly that reading back Satoshi's emails and discussions actually is very very useful because I was doing that I thought it's stupid because it happened so many years ago and it's not relevant but it turns out it is because the people who were answering who were he discussing with were were actually very very very smart and the whole conversation even if it was just mailing list was was such a high level and and very informative so it's it was it was awesome to to read and and still relevant concepts those weren't even implemented yet there you can find ideas about it like like no where no whereas maybe on the Bitcoin dev mailing list yeah just just a quickly mhm definitely things people should dive through you really want to understand the history of the space but I guess let's uh let's move along into a long series of stories involving the Lightning Network that make me want to slap the shit out of a bunch of people and ask why half of the people building things on lightning are complete fucking retards so firstly bit refill for a while Mao has operated a service called Thor where you can effectively pay them to open inbound channels to you to provide liquidity for receiving payments and on that that that service is really a it's something to be expected it's probably going to be a very normal and you know widely seen service in the space involving Lightning Network the bigger it guts but they've recently announced a new service building on this called Thor Turbo and pretty much the idea behind it is effectively you can buy pre-funded channels with liquidity on your side and spend immediately and really like this this kind of there's not really a lot of details so I kind of have to speculate here to fill in a bit the different possibilities you know and in looking on their github uh everything is pretty much months out of date and I didn't see any repositories that were in any way relevant to their lightning projects so I I wasn't able to go through the code and actually try to inform the speculation anymore but effectively the first way I could see this working which makes absolutely no sense would be to pay for these channels over lightning them work and that just makes absolutely no sense because if you're going to buy a channel with spendable money with a lightning channel that has that amount of spendable money that makes absolutely no fucking sense you have the money in a lightning channel you can spend already so that possibility I'm going to completely discount as I don't think anybody in this ecosystem working with lightning could possibly be that stupid so the other way that I see this is you you're paying with it on chain or with Fiat and really the the same kind of problems in different ways manifests themselves regardless of whichever one that is but really the this comes down to how they actually manage well a few things pretty much how they manage looking at the the transaction on the chain because though the whole rationale for this is that you can pretty much just get this channel created and start spending without things being confirmed so the real problem here is this this has to in some way rely on unconfirmed transactions on both sides in the case of the channel creation they're creating it for you It's Made connected to them so even though it son confirmed anything that there routing from that while it's unconfirmed is going through them and it doesn't really make any sense to me that you would have any kind of situation where you're paying for it on chain that isn't working off of an unconfirmed on change transaction and so really this kind of leaves multiple ways to double spend them if they are not specifically refusing to accept RBF transactions which I don't see any mention of on this product page and really even if they were to do that you still could technically try to double spend them it would just be much more difficult but effectively what you can do is just buy one of these channels and it's instantly available to spend before you confirm and you could just route all of that money back to another channel that you have and then double spend the on chain transaction and so this is it just seems like no matter how you slice it there is some potential to just completely rip them off because this by necessity is is counting on unconfirmed things and if they're not specifically banning the use of RBF to do this which I don't see any mention of then it's ridiculously easy to actually try and double spend this and like it's really inevitable that that starts happening and I mean at the end of the day the it's their money that's at risk so if they want to take on that risk go ahead but it's it's really just a a stupid risk to take and it's it's really like it's encouraging an attitude overall that's just not responsible or intelligent like the whole security of lightening network comes the channel comes from it being based on a confirmed output so it's it's really just yet another example I think of irresponsible corner-cutting just to throw a brand on something and associate it with lightning and honestly I'm really getting sick of people doing this kind of shit while trying to build out on Lightning Network now because it seems to be like at least half of the shit people are building on lightning and like really at the end of the day if you're if you're gonna build things out in an irresponsible way and insecure way like just just don't fucking build anything at all like like seriously like take these bad practices and go fuck off back to the boonies like you need this is this is not constructive for the ecosystem Oh how'd you know what to say there I mean yeah I mean it does sound kind of just like some Lightning Network gift cards or something and it's hard to really say like what the use case is on that but I mean you know bit refill as guys where some of the guys leading the you ASF charge and you know I know that error logs been working with those guys for a little bit I mean I don't know what exactly the use case is for this but yeah I guess you could say it's you know yeah it's bad practice and it's not exactly what the Lightning Network is built out to be like this trustless microtransaction system but yeah maybe they got their eyes on something to where they can build out a little profitable niche with this thing I don't know I like you're saying there's not many details out on it now like today's have like a price limit that you can have on that or is there like imagine it small amounts is what I would figure and the maximum I think is point zero five yeah it's still a pretty good amount I mean zero five Bitcoin yeah I mean it'll be interesting to see what they're doing I mean you know I guess yeah everybody's got to develop and when you're developing your link mistakes and you know maybe you know everybody doesn't see the full I mean you think I imagine bitter field does see the way Lightning network is gonna be taken advantage of and used I mean error logs makes really good points on the black network so I don't know what they're you know what they're looking into here I mean like you're saying gotta get some more details out of this I agree we drink that we gotta get more details and I'm not sure I would agree with you know beyond everything but I don't see that much just one quick note here is that we are developers in don't assume we know what we are doing it's just some of us ends up building ends up working on the right projects but most of us doesn't well I mean like I I am looking right now at a payment request for on chain bitcoins to purchase one of these channels there is absolutely nothing here saying don't use RBF so like that based on everything available right now like this just looks completely double spendable I'm guessing that they've got their eyes on the system like they know who they're selling to there's some sort of level of like information they're like you know I'll guess on their customers to where they assume like this is you know these people aren't gonna be double spending but I don't know like you're saying I mean we got to get more details out on this whole thing but I mean for sure they should probably take a look at that like as to you know why there's no RBF in there all right so uh you guys got any more comment on this or we can go into this other thing that might trigger shinobi some more I'm glad yep all right so let me just do this real quick so we got a couple of new exchanges crop up this past week a new type of exchange so that it's looking to take advantage of the Lightning Network they both plan to use atomic swaps between bitcoin and litecoin to create an exchange that is non-custodial trustless submarine swaps between the two currencies the first one is spark swap and back in August of last year they had launched their working alpha of the current software called spark swap broker now just a couple of days ago trae Griffith announced that spark swap is ready for maintenance Bay des he says quote we are excited to make make this new technology accessible by opening up trading to the public for the beta transaction sizes will be limited while we battle test the software and trading will be limited to BTC slash LTC close quote in their roadmap they have plans to add additional currencies Griffis says they can work with other payment channel networks that aren't really compatible with the Lightning Network so long as certain criterias are met of course we'll likely see those additional currencies also being those first additional currencies being Lightning Network enable this trading mechanic has been long talked about since the white paper of the Lightning Network one of the main selling points of using this system is that it's non-custodial trait told Bitcoin magazine quote at no point can either spark swap or your counterparty deprive you of your assets the trade is either complete or are they the trade the trades either complete or they do not close quote this selling point helped spark swap raised 3.5 million from these firms initialized capital pantera capital foundation capital and Y Combinator now an idea like this doesn't come out the gate without some competition bolts is another exchange that is using the same mechanic of Submarine swaps to handle the back end of their trades bolts is still in their alpha testing phase to iron out the kinks but the plan is to directly take on shape-shifts former user base we know from Erik Voorhees recent interview that shape-shift lost around 90 percent of their volume when they when they instituted kyc measures so bolts are looking to capitalize on their loss they blatantly advertise in bold letters on their site quote there does not and will never collect any data that could identify our users close quote now bolts is being advertised as non-custodial as well but it's still being built out on a central platform while spark swap is attempting to build out their software to create a decentralized platform I mean it's almost the same level of trust minimization we see in the differences between Biskind and hodo Hodel on that I think we're gonna see yeah much more developments in various exchanges going forward in the future with the Lightning Network the value proposition that that network offers them is worth its weight and development so this is a some pretty interesting I mean you know leaves in these submarine swaps for exchanges but uh yeah I mean I think it's pretty interesting but I got the feeling like nobody's gonna tell me there's some major flaws with this what do you think well I mean I think the the bolts design could be okay it could be something viable and useful I mean people had a lot of demand for a KY seamless you know service like shape-shift but I do think that the the requirements for inbound channel capacity are definitely going to cause user experience problems when capacity gets used up or runs out I mean but that that side of things I think could be dealt with with things like leap out and the submarine swap things that are being standardized you know you just loop things back out and then refresh your inbound capacity but the spark swap thing I think is subject to a lot more problems and that's just because they're trying to do everything on both sides over lightning as opposed to the way that bolts trying to engineer things just using submarine swaps and really only concentrating on the Bitcoin side of things being on lightning and I think a lot of the problem with trying to do both sides on lightning it just comes from the liquidity constraints and implications and I mean like really think about like to the two different models I think that are important to think about one is a model where everybody is directly opening channels with the exchange and that creates huge problems even at small scales and that think about I swap Bitcoin for litecoin so now like you're you're moving the channel balances you have some amount of Bitcoin on the other side of the the channel the other person has some amount of litecoin on the other side and while you're directly hooked up to the exchange so unless that exchange is routing payments and your so routing payments you've just lopsided your channels and unless you trade right back in a short time span to get the the asset that you traded for initially back well though those those channels need to be closed or spliced out to reallocate that liquidity where it makes sense to use and you know that's that's a problem it's a lot of on chain activity the bigger that kind of thing scales up and it really I mean there's still an argument that lightning allows things to be secured and atomic but you can do the same kind of thing on chain and so it really it's like you know how much of a benefit really in terms of fee efficiency are you gonna get with lightning when you're gonna constantly have to interact with the chain because of the unique liquidity situation trying to apply this to an exchange and if you have people who don't have you know everybody connecting directly to the exchange you still have the same kind of problem it's just not as bad or as big of a scale and I think like you know a lot of the stuff people are trying to do with lightning Network and exchanges like this it's just not it's not gonna work like you know it'll it'll work now I mean it's a nice novel thing but the more things scale up the more users you have the more activity occurring on the chain and the more expensive it gets to interact with it this stuff is just not viable in the long term and it really it sucks because it's it seems like a lot of the stuff people are trying to build on lightning Network like you're building some transitory thing that's gonna work for a little bit and then just not be practical in the long term and that seems to be a lot of what I see people trying to build with this stuff and it's just like why are you why are you wasting your time building something that's not gonna be viable long term yeah I don't know man I mean this is where you know these guys are trying to build out this legging Network stuff and like we said you know like a lot of well let's get it wrong a lot of people get it wrong and so I mean yeah this is it's hard to tackle on both the like coin and Bitcoin side of lightning and expect to get some real development there it's gonna be low liquidity and yeah I'm sure you're gonna run into lots of errors and troubles but I mean I guess it's a yeah you know I imagine that most exchanges are trying to build out ways to find ways that lightnings gonna help you know create some profitability for their infrastructure what about somebody in the comment audio Tweaker was saying that the Linux Foundation guy made some comments about atomic swaps I never got the call option situation that's that's not really relevant here I think the the call option gaming that eats up liquidity that's that's not really relevant for exchanges where you can put somebody besides the receiver in charge of the payment preimage that that's more of just like a issue with like making seamless payments across different things but I mean like these kind of issues exist for like lightning and exchanges even if you're not talking across different crypto currencies like imagine an exchange that's doing futures contracts and everybody has channels open with the the exchange well every single trade somebody is losing money and somebody's gaining money so one channel is not going to have enough to receive what the guy just wanted a trade and one channel is going to have a bunch of wasted liquidity because he lost that money and so you need to rebalance to that unchain you need to splice out of one and into the other and you need to do that for every single trade of a significant size so like what's like I imagine like thousands of users having to do that constantly for every single trade but that doesn't scale like that that's not gonna be cost-effective yeah I mean we're gonna have to watch it be built out I mean Lightning Network is still really so early on in its development I mean if you could just think about where we were with Bitcoin name Chang you know two years in I mean there's gonna be some errors being built out and it's gonna take a while for people to build it the way that it's gonna all be trustless and Trust minimization as much as possible and we actually see some real solutions that everybody's gonna be happy about so yeah like what's going on with this what you guys got any more comment on these atomic swap exchanges will go into this hub wallet alright so yeah what is it man is it does it make Ellen a breeze or what's the deal you know this and I do have to say upfront the guys behind breeze wallet they're being honest and upfront about a lot of the downsides and their model but even saying that like this wallet is like this is this wallet is everything a lightning wallet should not be and it is it goes back to the same shit with like the the bit refill torture Thor Turbo service like if you if you're going to build things completely irresponsibly just fuck off and don't build anything like you you are normalizing and trying to make widespread extremely bad practices in the space so the whole model behind the the Thor Thor the breeze wallet is it's hub-and-spoke based a very shit security model and the entire wallet is set up so that it has absolutely no on chain functionality like everything in this wallet is literally just done unlike it cannot make on chain payments it can't directly receive on chain payments the the whole thing is just only like and the way this is structured as you start up the wallet and pretty much it's it opens a channel with you by default so Brees is operating an actual hub in the hub and spoke sense and whenever you make a wallet it opens up a channel it says in the article Kyle Torpy wrote of point zero one but when I tested the wallet it only opened one for point zero zero five so it starts off there opening a channel with inbound liquidity to you the only way that you can receive money is directly over lightning Network or sending to an address that's submarine swaps into your channel and so here's the first problem what happens if you send money to this submarine swap address in excess of what your channel can receive how do they handle that so there's absolutely no indication as to how they can handle that and I haven't had a chance to actually test that yet so we'll see in the future on that second the way that this is set up where they open a channel to you any money that you receive every single penny you put on this wallet is instantly starting off in a completely vulnerable state they can submit an old state and steal all of that money if you don't catch them that's that's like that is an unbelievably fucking retarded engineering choice on every level possible like Eclair by contrast started out with only send functionality and that was totally safe because it could only send and you funded the channel yourself so your full balance started out on your side of the channel and the only thing that could happen was you get back money that you should so you make extra money if somebody submits an old channel State there was a solid engineering choice the incentives were all aligned properly this is the exact fucking opposite of that it is literally impossible to put any money on this wallet that could not potentially be stolen right off the bat by submitting an old channel state if you don't catch them and submit a penalty and another thing is there's absolutely nothing anywhere I can find that even says how long the the timeout period is to penalize them so I don't even have a fucking clue how long you have to actually try and catch them if they were to submit an old state or if somebody compromised their server and started submitting old states so that's just a horrible decision and then also the the entire business model of having their own money set up in channels to people there's two downsides to that one it's absolutely not practical in the long term to do that because you have to put all kinds of money upfront you don't know if this person is going to actually put to use if they're going to send that much to their wallet and to it creates a hard cap I cannot put more than point zero zero five on this wallet I can't there's not enough channel capacity and there's absolutely nothing I can find anywhere about how they handle overages like that like can you actually get them to open another channel to you will they like again like the if you send more money than the channel capacity to the submarine swap address how does it handle that I have no clue like that this entire thing is just engineered as stupidly as possible and they're also trying to work on integrating with bit refill and Ellen Pizza directly into the wallet for spending purposes and kind of a real real curveball there you know to businesses both doing something with completely bad practices partnering with each other real shocker and they're also working on a card that's supposedly designed for payment terminal so you can pay with the card instead of using your phone directly on let's say in a restaurant so you don't have to hand somebody your phone absolutely no details on how that works but there is already despite only being in beta something directly in the app to give your name email address your physical address to order one of these cards despite absolutely no details on how it works or how payments are securely handled by handing somebody over a card and yeah I mean like this wallet is literally every retarded fucking thing that a lightning wallet should not be doing and like like certain nobody should fucking useless people should actively be discouraging people from using this this is not safe horribly bad practices and trying to encourage this kind of model in a way is going to make be cashiers right in in in all the the shit they spew about lightning network devolve into trusted hub-and-spoke models because that's literally exactly what this wallet is doing so like frankly fuck this wallet fuck the people involved in it they're fucking morons doing everything as wrong as you can possibly fucking do yeah and I mean again it's the card to comment back on that cuz yeah I mean it's a pretty harsh language but I get what you're saying I mean they're taking that kind of security through technical complexity route and that's definitely not something to be done in Bitcoin and yeah I mean you know the whole way it's advertised as far as making it a breeze it's you're always getting trade-offs with that and you know you want this breeze and the breeze card and all that I imagine you'll be giving up a bunch of information and it's just sort of antithetical to what the hell lightning Network is trying to do it's um yeah it's it's a hard nut to crack but I mean I think Ellen's that's doing a good job as far as like creating this idea of like just an easy GUI for the user to be working with instead of trying to I build the solutions out for them in the back end that's gonna hurt them in the long run but yeah I mean we fiddled around with it a little bit and definitely gave her some trouble so just like I just like to point out that Stratos has a valid that's called please wallet and it's been released for a very long time now they are doing Tom Bobbitt we did so yeah it might lead to some confusion oh we have it's it's just like like seriously like jesus fucking christ like Pete if you're going to build something that's going to manage people's money fucking do it right or just fuck off like seriously spent sense lightning has gone live and people started building on it I cannot think of a time since I've gotten to Bitcoin where I've seen people building more shit in as retarded as a fucking way as you possibly can like stop being fucking dumbasses I think the etherium ERC 20 tokens got his beat on that thank goodness well yeah like it's pretty insane and you know we'll see the way these things keep getting developed but the Lightning that works got a lot of buzz behind it because it does allow some pretty amazing technical accomplishments for Bitcoin to be able to handle the volume and the load of everything but it's gotta it's it's hard it's technical compass a complex subject it's it's not easy you know the programmer might not understand the security or the security guy doesn't understand the programming and it you know it's hard to get people that understand all the little stack that they have to pay attention to when developing on this network but but it's like not that at all like they understand all of this they're just making the stupidest decisions possible with a full understanding from what that means hmm really yeah it doesn't sound very good yeah so I guess Janine do you wanna take us into the next one and give us some news about the Lightning Network that isn't gonna make me pissed as fuck yeah so there won't be any square words in my section so on April 2nd the upcoming release of L&D was well the the static channel backup part was merged into the upcoming release and I'm not sure I haven't checked whether that's actually been released yet but it's enough it was an upcoming release at the time that this was written and so there is a really nice article on medium by Patrick Lemke I think how you pronounce it published a few days ago on April 7th which explains why static channel backups are and why they're important so Lightning has mnemonic seeds just like regular Bitcoin keys and dresses do but lightning seeds are a bit different in that they currently prior to this merge update they did not apply to funds story in the channel they only apply to on chain funds because the seed relies on a random number and channel DB so if your channel DB file is lost or corrupted then all of the funds in your channel would be inaccessible so once you update to this new release and it functions properly there will now be a directory for static backups found at L&D slash change slash bitcoin slash mean that slash Channel dot backup which will allow you to rescue the funds in your channels in case channel DB is lost or corrupted somehow however as Patrick writes this in itself doesn't completely solve the problem because the backup directory has the same chance of being lost or corrupted as Channel DB however the Lightning or the LND developers have also allowed you to encrypt the channel backup file with your seed so that you can safely store it somewhere else and in terms of randomness I mean a seed is probably a better password than 99% of people love or generate so in terms of whether it's a secure way to encrypt it that sounds ok as long as you've made a backup of your seed he then suggests you using different types of auto sync options for making that backup so that you don't lose it obviously there's cloud options which is just other people's computers which I would not use but you can also do a local backup to a different disk somewhere and keep in mind that at the moment when you restore from backup your lightning channels will be closed upon doing so but I think that was interesting to point out even though it's a bit old now because a lot of people have been waiting for some kind of way to backup their channels mm-hmm you know this I'm really happy to see just because like that that is one of the big issues going forward is is being able to have the most robust recovery mode from data loss as possible and I mean I ideally like we can hopefully in the long term there there can be ways found to make things I have like pretty much completely deterministic in terms of literally just having to have the word seed and that's it and though even to get to that point I really think that it would still have to be something that would require peer cooperation to recover funds quickly and still cover the the revocation secrets so that if somebody sees that you lost your data you can still penalize old states but you know it's it's incremental progress and I think we'll we'll get there at the end of the day to really have the room most robust recovery model possible so that we don't have you know data being corrupted phones being lost and in things like this leading to money and channels being lost yeah man it's good like you're saying see some sort of like you know some more backend of these different specs being built out to save people's funds from being totally lost because there's been a lot of reckless Satoshi's being thrown out there and yeah I mean like you're saying slow into incremental progress and these sort of developments well it's not some flashy new hub spoke wallet or atomic swap exchange this is the sort of incremental progress that's going to help the entire network alright so yes it's there any more coming on that I think that's uh that's a wrap all right so getting into this last episode we talked about the etherium startup incubator consensus coming up with their own regulatory framework for listing tokens because they were tired of waiting SEC guidance well now they've got it the SEC just released a 13 page document on April 3rd titled framework for investment contract analysis of digital assets while the SEC has been going after ICO organizers in the past there are other groups that now fall under this framework like exchanges custody services hedge funds marketing firms and other professional services the SEC said in this press statement quote market participants should be aware that they may be conducting activities that fall within our jurisdiction the framework is not intended to be exhaustive overview of the law but rather an analytical tool to help market participants assess whether the federal securities laws apply to the offer sale or resale of a particular digital asset close quote the beginning of the document talks about the Howey tests and how it's applied to investment contracts quote under the Howey tests an investment contract exists when there is an investment of money in a common enterprise with a reasonable expectation of profit to be derived from the efforts of others whether a particular digital asset at that time of its offer or sale satisfies the Howey test depends on the specific facts and circumstances closed loop so if money or value is invested whether Fiat or crypto and it's all invested in a common enterprise or a central entity is offering something with a shared interest to its purchasers and there's an expectation of profit it's the security in the eyes of the SEC the document says that a token is at risk of being a security if the purchasers relies on the efforts of an active participant or central entity and there's a reasonable expectation of profit so if a group where central entity directs the development and is responsible for the token success it's a security the SEC says that most token offerings fall under this label of a security under this framework and that just taking on the word utility or concept of token doesn't change that fact now with all that said the SEC is still saying if a project is sufficiently decentralized and has a working product whose value is tied to its utility it's not a security so for right now it looks like aetherium has once again started under regulatory shade and within this 13 page document it's hard to see clear answers for some people in the industry head of legal and regulatory affairs at Pitt flower USA Haley linen just recently told coin desk quote today's SEC framework provides additional clarity but it does not give the industry all the answers the other relevant considerations on page 9 and 10 illustrate the digital assets don't fit neatly into the Howey test and there are additional factors from cases that the industry needs to consider close quote she's not alone in thinking this Andrew hampson attorney of the land on the an attorney on the general counsel of athena blockchain said well while it's helpful and it's good to see the SCC remain focused in this area it's not quite as useful as a law or a rule or even formal guidance would be a lot of it is a reiteration of what the law is and has been close quote it'll be interesting to see how things evolve going forward are we going to see more projects accepting this framework and doing official offerings like stos or are we going to see these projects thrives in areas outside of SEC jurisdiction I don't know I know that since Colorado instituted the digital token Act earlier this year which provides a similar framework as far as like the value of the token has to be tied to its utility yeah these projects have been scratching their heads trying to determine if their token actually provides that utility but at the same time they haven't decide to leave the area so it looks like the industry finally got some word from the SEC and that's better than the continuation of saying nothing but it looks like we'll see we'll continue to see the legalities of tokens argued in the public realm in courtrooms so did you guys catch anything any of the you know the news surrounding this token framework or did you all read it and check it out you heard any opinion on the matter I didn't really have a chance to go to in-depth into it but they I think this like decentralized enough nonsense is just like complete horseshit like something is not decentralized if the token is literally printed out of thin air by somebody who takes money in exchange for the token they print it out of thin air like a decentralized system is something that you drop software out there for that has not pushed tokens into circulation that has some kind of decentralized mechanism for to putting those tokens into circulation like raising money and giving it out based on how much money people gave you is not decentralized like the logic behind trying to paint any project out there that does something like that as decentralized is absurd yeah honestly I think that's where the whole idea of like applying the how I test framework to these digital assets like falls flat on its face like if you're not gonna hold aetherium accountable for their token sale and everything then I don't understand how you're supposed to apply this broadly to all these assets and yeah I mean I don't know I mean I guess it's gonna serve a purpose as far as people in the US deciding like okay well you can't just go full-out scam that seems to be the thing that I saw the most sort of backpedaling on whenever the Colorado instituted the digital token Act it was just like okay we can't just issue these things without at least having a road map and a utility and some sort of and towards the like you're trying to build out something that's gonna improve a technological space in some sector but uh yeah it's I don't know if we'll have to see how it evolves like I said I mean it's it's a framework but it's not different from the old legislation as far as just like how he tests and trying to put it on digital assets but yet they don't want to hold aetherium accountable because they've got a lot of big lobbying arm and a lot of this yeah I mean that that's really interesting to me that they are not going to hold them accountable now that the network is kind of fracturing and we're seeing more of these Forks of aetherium more dependent on smaller central entities so yeah I don't know it for right now it does seem pretty confusing if you're just trying to build out some sort of tokenized system within the cryptocurrency space and whether or not you're actually within compliance it's hard to say for sure you are because they're still being pretty big about it saying stuff like sufficiently decentralized so no pirate genie you guys got any two cents on this one yeah just very quickly I will have a story later on the Federal Reserve and it turns out the creation of the Federal Reserve was was because of people like you guys who are crying for regulations so the time because there is a mess of the of the currencies everywhere for regulation not you that's for sure I'm going to say no no no no no no no to calling for regulation and I'm also going to say no no no no to why the Fed was created but we can argue about that when you cover that one come on come on you know where you gotta get the toner in it no no no yeah no no no no no no Hey all right Oh Jeannie you wanna take us into the next one let's see I might have to find the next one it's the yes it's the price bike so in previous shows we saw or we've already talked about why there was a big price spike around the beginning of April and there are various theories about why that happened most of which center around the activities of futures markets there's even an article under another story that I will cover or well it would actually make more sense in this section but that has to do with someone possibly taking advantage of algorithmic trading between various hedge funds and the CME obviously tracks daily exchange volume and if you look at their church there is a very noticeable and consistent increase over the past 10 days in terms of exchange volume prior to April it was mostly oscillating between 2,000 and 5,000 chairs that's correct but on April 2nd it went up to 12,000 and then peaked at 22,500 on April 4th and then in the last few days it's gone between 9,000 and 16,000 so that's just a point that I think it was a bit quaintest article and then I went and checked the chart so yeah that might be a thing the cause and effect there is yeah it's something that's debatable but it's I do think that it's definitely worth noting though how the volume spiked in tandem with that price spike on CME like it shows that that that institution you know interest grew enormously the time moment that price started spiking upwards yeah so I mean the it's hard to tell whether this activity started before the I haven't checked like exactly minutes whether this all started before the price spiked or if the price spiked and then that drew interest and then the volume on exchanges went up but yeah so there's been a major spike so that's interesting yeah I mean the price talk has been kind of crazy over the past few days and I mean yeah really since like we started to make that upturn from 32 to 4 everybody's kind of been hyped up and now that we went above 5 yeah I mean it's kind of natural I think that people are gonna jump back into these markets where they can trade on the futures I mean it's like there hasn't been that many people there because you're basically playing with these small amounts of guys that are just watching the dailies or something and just playing around to where you start getting these big moves and now there's access to something like the CM II you know Bitcoin futures I mean yeah we're gonna see a bunch of people jump in there that's where yeah this next run-up might be a little crazy I mean we're gonna see but I mean I remember in 2017 it was always just like getting access to the platform and access to liquidity and you know those sort of access is like there's more access points at this time so we'll see yeah some more people flood in when price action happens all right so you guys want to speculate a little bit on this where this price action is coming from so all right what are you gonna say shinobi what do you think markets all right well let's talk about one particular market maybe they had an effect on it it's been a while since we checked in on China but mainly that's because Beijing and the People's Bank of China has been relatively quiet since there are heavy enforcement's against the industry now we have a couple of articles out that maybe opening the lid a little bit on what's going on according to Bitcoin is it looks like earners over there across the Pacific Pond I found their way back into Bitcoin this time paying a tether premium they report ancien Ledger's tweets that say quote Chinese markets reveal strong buys over-the-counter trades the almost only way to buy Bitcoin with fiat in China showing considerable dollar premium one you DT equals seven Chinese yen over the official rate of 1 USD equals 6.7 Chinese yen close quote all of this demand has recently risen tether above its dollar peg and brought their market cap up to some 2.2 billion dollars that stands leagues ahead of the rest of the stable coin game coin Livio has shown over seventy four point two million dollars in Chinese yen has flown into Bitcoin over a 24-hour period on the date of April 2 7cn ledger goes on to say quote after the People's Bank of China's ICO exchange banned the most convenient way to buy Kryptos in China is to buy stable coins like USD T first using over-the-counter and then trade into any crypto you want close quote and then Bitcoin speculates this that this is due to profits from the red-hot start mark stock market over there at China so it sounds like the ban on Bitcoin hasn't put too much of a damper on things or has it so Reuters reports that China state planners are working to eliminate Bitcoin mining from the country as we know that's not really news but there has been a recent development to reiterate that point the National Development and Reform Commission the NDRC is responsible for listing industries in China that they should either encourage restrict or eliminate on this most recent draft list the NDRC has suggested that cryptocurrency mining be phased out the reasoning sounds familiar it doesn't adhere to any relevant laws or regulations is unsafe to waste Natural Resources and pollutes the environment the public has up until May 7th to comment on the draft but the NDRC wants quick action since there is no target date included in the document this means it should be phased out immediately Jehan Chiu managing partner at blockchain investments from firm kinetics said quote the NDRC move is in line overall with China's desire to control different layers of the rapidly growing crypto industry and does not yet signal a major shift in policy he goes on to say I believe China simply wants to reboot the crypto industry into one of one they have oversight on the same approach they took with the inner close quote the industry over there has been under heavy restrictions since the actual band back in 2017 now it looks like those who are in the know have no qualms about investing in Bitcoin and from recent reports regarding renewed Chinese mining contracts it sounds like this is foot but there could be something to it I called the foot I caught it flood back on in that ban on 2017 and we saw how that turned out any time the price starts moving you can be sure we're gonna see a tether story and a China banned story so I mean maybe this whole price buy can rise like I've seen some speculation that came from one investor but I mean like maybe it's from a lot of people making money on the Chinese stock market and they're trying to find a way to get their money out of China what do you guys think about that is that a possibility or I think it is just one large market buy yeah I think like the really the natural demand right there in China at this point is going to be wealthy people trying to pull off capital flight I mean it's it's really given the nature of most markets drying up besides OTC and just the overall atmosphere over there it's it's really the only large-scale rational use at this point I think like it's China has digitized payment systems like it's not Bitcoin isn't really something that's going to be seeing why demand for that use over there it's it's best uses this is how you get large amounts of capital out of the country or beyond the reach of the Communist Party yeah I mean like yesterday you know the Bitcoin band thing it's uh they're the whole mining thing I mean that's where I think this whole NDRC draft list is just like another round of Bitcoin band put because I think we've seen more in the way of like actual money moving around to build out these farms these a new group of farms and mining farms with this you know the rainy season over there and everything's melting snow melts all coming down and yellow seas floating up and so now they got all this excess energy I mean I don't see how exactly they're gonna put out a bigger band and they put out 2017 that's gonna make people I don't know crack in line or something it seems like it's not really having I mean it's having an effect but for sure there's definitely the industry still there I mean it's just different market participants at this point and yeah I mean I don't know that price spike I'm sure it had something to do with some buyers in different areas I'm sure you know maybe these guys were just like running with the run up but they saw this price bike and that's when they all started invested it's hard to say always what is the chicken and egg situation with these price bites I just blame means it's always means alright so where are we going from here man looks like we got some news about active Bitcoin wallets yeah this is a bit of a weird story so Bloomberg published an article I think a week ago now about recent activity on the Bitcoin network based on market analysis by a group called flip side crypto and they say that April was apparently not only a momentous occasion in terms of the futures market exchange volume but they say that the number of quote active Bitcoin wallets has gone up since the middle of March they say while 40% to 50% of all bitcoins are usually sitting in wallets that have been inactive from one to six months the average has been about 10% since March 15th David Valter who is CEO of flipside crypto noted that most most often the price moves are the result of a few whales as large holders are often called shifting positions well actually that was a quote from someone else anyway that was he was quoted in there and so that was the case last fall then when Bitcoin plunge 40% this time around the move was much more broad-based to a smaller wallets waking up it's not really the reason it's weird is because it's not really clear to me how they measure this they don't exactly define or explain what they mean by active Wallet versus inactive wallet or how they even know how many wallets there are and I they're kind of mixing terms because the chart in the bloomberg article actually looks at the number of activated bitcoins which is not the same as number of wallets although it's possible that this data they basically renamed Bitcoin days destroyed that's really the only explanation I could think of but I would have to check whether that actually matches other measurements of Bitcoin days destroyed it's just a weird language so not really clear how they came to these numbers if anyone doesn't know Bitcoin days destroyed is when you multiply the number of coins in a transaction by how long it has been since they last moved and that just gives you a kind of you know idea of how much of the market is moving and you know patterns and stuff like that in terms of like it's a bigger deal if coins that haven't moved for like several years are moving for the first time in a few years than if you know coin that moved yesterday it moves again so if you then look at the number of active addresses which is slightly better than wallets because it's not really clear which addresses are in which wallets there doesn't seem to be that big of a jump in terms of activity although it has been increasing throughout March it was mostly bouncing around 600,000 active addresses on a daily basis and it nearly touched 800,000 on April 5th and it's probably been averaging somewhere around 700 thousand active addresses daily within the last week or two but not not the sudden jump that we saw or the sudden jump that they claimed in terms of active wallets now obviously both of the statistics could be they're not really in conflict but I would just be more curious to know what data they use for that and whether they're actually just measuring Bitcoin days destroyed which is the term that we actually use for Bitcoin moving we don't talk about wallets really because that's not easy to measure but hint hint one take away from the story is that anyone who wants to or needs a loafie day to start sending some like one Satoshi per byte ones and not having to bump it up your best bet to send transactions is Sunday if you didn't know because when you look at charts with active addresses that's also kind of correlated to you know people actually sending transactions on those days and so the number of accurate addresses consistently drops on Sunday that's usually the lowest point of the week so that's two interesting indicators so yes and transactions on Sunday if you can to save money stop trying to be impartial and balanced okay coins are moving the price is gonna go to the fucking moon this is what this means okay this is how we're going to interpret these symbols price moon yeah Sunday run day run your dust all into one wallet I mean yeah like that uh that's definitely a useful practice is to try and get it with a fever low and I mean yeah naturally with all this stuff you know with the price moving you get people moving their stuff I mean just a not even a week ago I was at a meet-up and you know had a newcomer show up he's been around for a couple meetups now and he's talking about you know how can i you know peel out this glacier you know wallet I've had stuck around I need some help with that because he's like saying you know he wants to be in the right position for when the market does make a move and yeah I imagine that's what this is a lot of people just get in the right position so whenever their price does hit where they want to cash out a little I guess they're just going ahead and getting all that stuff in order all righty so ready to slide along yeah ban that's a lot of price volume cock where we going from here already so electrum has been having a lot of issues lately you know a while back we had that issue where the messaging system from the server's was being abused to trick people into downloading malware infested wallets to steal their coins well son select Ramez pushed out an update for that there has been a huge DDoS ongoing the past couple days of up-to-date electrum servers which would effectively issue a final warning to old software to update to the official version to deal with these malicious download links being sent by servers and they are being swarmed right now by several thousand devices and a botnet using custom code to connect to the electrum servers and waste their resources and they're effectively being hit with like up to like twenty three gigabytes was one of the figures of data i've seen regularly by this botnet and a lot of the developers effectively think right now that the the logic behind this is attempting to knock the up-to-date servers offline so that people with vulnerable wallets still will shuffle around to these malicious electrum servers that try to trick them into downloading malware instead of the official electron version but right now they're they've issued a patch for electronics to introduce resource limits per IP address to try to kind of limit the damage that the botnet can do and they if you check the reddit thread in the comments they've actually pointed to a few servers that seem to be doing okay since the patch in terms of uptime but really this I think ultimately goes beyond just the issue of this the scammer attempting to continue driving people towards this specific exploit and it really comes down to really any kind of wallet or software in this ecosystem that depends on a central point or server to functioning properly and at the end of the day yet any type of software that's architected that way is vulnerable to this kind of attack and that's you know it's really not something that you can deal with in an absolute way except ultimately at the end of the day running your own node like the the more people who run their own node to not be dependent on centralized servers like this the the more infeasible it is to pull DDoS attacks like this that will really affect a significant amount of people and I mean you know like they're doing with the electrum server here they're patching it for resource limits to deal with this specific instance but it's still ultimately not removing that central point that can be attacked and you know unless you actually go through the steps to run your own node I willing to bet that the software you're using is you know subject to these kind of attacks and the bigger things got in the space the more use we see the more attention we get I think the more common attacks on these kinds of centralized you know infrastructure servers the users require to actually use Bitcoin they're gonna pick up they're gonna get more common and yeah yeah on the other hand is you're not saying Google getting DDoS attacked every time but anyway that the scary part is that this is what electrum has go for electron is is a decentralized system right the developers are not running their own server so I mean it just it just mind bugging that they succeeded did they succeed they succeed to ddos attack a decentralized system III don't know it's it's it's it's really scary you know on the other hand they had a lot of financial incentive right because they got minions from from the previous phishing attack so I guess they just wanna continue that so so I'm not so they have a lot of financial in fact they have a lot of resources they have a lot of bitcoins that they can buy up all the darknet boat attack services on the darknet so yeah I mean it's you know electrons infrastructure is decentralized but it's not very decentralized I mean there's only like 100 something or like maybe a few hundred electrum servers in the world and I mean like bulker was saying during that special edition a lot of those are probably just malicious for spying purposes like there's not while there isn't a single central electrum server I mean there's not really many of them and so like even though you can say it's decentralized it's nowhere near as decentralized as the Bitcoin network itself so it still does presenting a feasible target for attacks like this there's not really that many you know servers out there that you have to hit to really have a negative effect for a lot of electrum users so there's the argument for just security in general it's like you know as value crisis in Bitcoin these attacks aren't gonna go down I mean like this is just you know this is the theater of security as like value goes up and people have more interest to take something out and there's a method to try and do it you know we'll see it being leveraged so yeah I mean it's a it's a problem it's something that election personal servers I mean you know there's a lot of people trying to build out this trusted node system and hardware so yeah I mean we'll have to see how it goes because I mean it's hard to say how they could actually solve this problem I mean I guess you could say yeah they could hire a bunch of different servers or something to try and make sure that they're always up and running but that would create some sort of centralized entity to do that so it's hard to say all right so we go to the next one go go go Red Team go okay let's talk about developers so the actually just a couple of hours ago the the large developer survey came out from Stack Overflow for for those who don't know what Stack Overflow is it's the place where every developer is going to find answers to their questions so the survey had some interesting stuff and actually it had Bitcoin stuff in it or or or more like blockchain blockchain stuff on it but anyway some some takeaways 60% of the respondent had coding experience over five years and 80% of the respondents learned to code Oh over the five years ago yes so the five percent contributes to open-source for a month or more often this is interesting because it means only 5% of the existing developers in the word contributes to open-source which is which is very low anyway what I really liked is that dotnet core is the most loved framework 77% of developers loves dotnet core the other thing is that Visual Studio code 50% and with wash to do 31% are the most popular developers in the environment so approach to Microsoft for that if you see max back okay let's talk about operating systems what do you think but operating systems developers use Shinobu shucks yes 47% use windows 26% use Mac OS and 25% a small minority of 25% use some that's all that's a whole quarter bitch yes so they are Linux users so you know if you want to be a developer you change the windows I know people are more productive on that platform I will stick to Emacs I will stick to Linux fuck you very much okay wait how can you say that Linux is a minority when it's only 1% less than Mac users oh I was messing with shinobi okay so and now comes the blockchain stuff which actually is going to take us out of our Baba but do people think about blockchain and what do the developers think about blockchain and Bitcoin this is really interesting so first question was that how are your organization is using blockchain technology 80% not at all five point seven percent of the all organizations are using blockchain for non currency applications okay a database with our versioning yeah I'm actually I'm disappointed that that 20% of them would claim that they're using blockchain because they're probably not 4% are implementing cryptocurrency based products 2.1 percent accepting Bitcoin or other coins and tokens as payments and 1.3 percent implementing its own cryptocurrency so their conclusion was based on this question that most respondents on our survey say their organizations are not using or implementing blockchain technology and most common use reported is outside of currency developers in India are the most likely to say their organizations are using blockchain technology so yeah it's Bitcoin is not very used you know it's that's not a shocker there the biggest use for Bitcoin is price speculation and long term investment in that really chakra okay the next question is more about opinions what are the opinions of developers on blockchain technology 29% finds it useful across many domains and could change many aspects of our lives 26% useful for immutable record-keeping outside of currency 16% thinks it's a passing fad for don't know how to pronounce it you know what I mean 15% and irresponsible use of resources 12% useful for decentralized currency such as Bitcoin so yeah wait more people thought that block chains were useful for things other than currency than people who thought it was useful for currency yes really stupid it's not too surprising though right I mean it is like kind of a little bit of like what we're seeing with the whole blockchain madness and people are really latching on to this idea of like immutable medical records or you know censorship resistant content creation and it's like these ideas it's like those things are the ones that are spread out I mean it is kind of surprising to me to hear like you know yeah just like less than 2% of developers are actually taking payments in Bitcoin and you know 1.3 percent are actually doing their own project I thought it would have been more than that but I guess it's not that's like like I'm saying it's not too surprising I mean like we know that this space is small and that the bigger portion of it is still this dumb money running around trying to figure out what exactly Bitcoin is trying to do but yeah I don't know so their conclusion and I'm finishing the story here their conclusion was based on the second question on the opinions of blockchain technology when asked what the primary belief about blockchain technology respondents on our survey are largely optimistic about its broad usefulness this optimist is largely concentrated among young less experienced developers however the more experienced respondent is the more likely they are say broke chain technologies and irresponsible use of resources and yeah that's right oh geez you tell these little idiots so but you know it's it's it's also good for us because the because if you are building a product and then your product is not going to be successful if everyone thinks it's it's it's a great thing you are going to be successful if you go against the market and you are right and the market is wrong right that's how you you you be successful so yeah there is that okay any comments or go to the next story so I have an umbrella and even though the most successful application of that umbrella has been to not let water hit me when it's raining I think that the more successful application will be to prevent fires yes exactly if you are right that's a good one I think I got my little jettison as you want no para so I guess nobody else has anything you want to take us into the next one unique yeah so some of you may have seen on Twitter there was a tweet from Stefan Palli lawyer who does like blockchain and token stuff an analysis that Peter taught had filed a civil civil lawsuit for defamation against Isis Lovecraft formerly of the Tor project Peter confirmed that he had filed this lawsuit on April 5th as in he filed it on April 3rd but he confirmed that he had filed it on Twitter on April 5 and said that he would not be making any comments on it except to say I hope Isis Lovecraft does the right thing here and I hope the wider community acts in the spirit of forgiveness and healing as I will in the last couple of days after this tweet I noticed that there were some people who were accusing him of misgendering and dead naming because the lawsuit addresses love crawfish and uses both the legal name and the pseudonym so I'm going to clear that up really quick on the misgendering point he added to his thread that because he knew Isis when they went by she and her that was why he was using she and her in his tweets as he has in the past and it's never been an issue and so he said I've asked my lawyer to use they/them in the future and I'll do the same obviously because the lawsuit point out points out that he's been blocked on Twitter so he probably wasn't even aware that that was the case on the dead naming point for anyone who doesn't know dead naming is a term for when someone uses the birth name of a person instead of the name that they currently identify with and I've only ever heard this term used in reference to people who are transgender for example someone who is born with the legal name Suzan then transitions to go by the name Sam but dead aiming is actually not exclusive to transgender people it just refers to using the dead name or a name that isn't you a name that isn't used anymore of a person and this accusation doesn't make that much sense to me because if you look at his tweets he Peters tweets he uses love crust legal name not within his personal capacity but just within the lawsuit which you know is required in a legal sense I'll get into that a bit later but it also doesn't make sense well now I'll get to now so if you file a lawsuit against someone you are usually required to use the legal name of someone who is either the plaintiff or the defendant so both both parties have to use their legal names and not only do you need to use the legal name but you need to make sure that you spell it correctly because if you spell it incorrectly or you use the wrong name in a lot of jurisdictions you would either be required to refile a lawsuit or you risk in validating the result of the suit if you continue with the mistake in your legal documentation so it's a big deal to name people correctly using legal names and whether that differs from the name that people go by in their day-to-day activities even if they never use their legal name that's where you're required to do when you file a lawsuit if use legal system now is it a great thing that in order to resolve a dispute with someone that you must expose personal information about them no that really sucks but those who the rules in the US legal system and the California Court website even has a page that provides instructions on how to name defendants so this was not something that was intentional it's just he had to do this in order to follow the rules of how to file a lawsuit in this case it's a civil suit so yeah I don't get I don't get any of that accusations and tease clarify them as best as he is able within the situation so the gist of the lawsuit is that Peter and Isis were acquaintances since 2014 but in 2016 they had a falling out in relation to the allegations against jacob appelbaum and this is where i think a lot of people who are commenting on this case are mostly unaware of the extent of the backstory involved and I have an investigation on github that I've been updating almost monthly ever since those allegations came out in June 2016 and it's a very long investigation it'll probably take you an entire day to read the whole thing but I include source links for almost every single sentence in there so if you aren't aware of that history you probably should be before you say anything that might sound really stupid and so I hope it will bring clarity if you're not aware of that history we're late to that other case I hope it brings clarity and maybe it'll bring clarity to this issue as well as much as there can be in a case where one case is almost three years old and still unresolved and the other one has barely started so I'll just read a modified section of the summary that I wrote about this lawsuit in the best because now they're overlapping a bit so basically in a few tweets Lovecraft had accused Todd of being a quote abuser specifically of rape and assault and the lawsuit states that as I said they were acquaintances since 2014 and there are a number of this wasn't included in the lawsuit but when I looked I found a number of examples of positive interactions on Twitter and no negative interactions that I can tell so this is a very recent thing within the last year to and including there was even a joint conversation with Applebaum and so it's all very positive which will be interesting how that gets interpreted in the case and early on when the allegations against Applebaum came out Peter Todd was actually praising Lovecraft and other people for publishing their allegations and sharing their stories he particularly used the word brave beautiful and admirable when he was talking about it and Lovecraft even liked those tweets but then the lawsuit notes that Lovecraft blocked Todd from viewing the Twitter profile after he had said that he didn't know what was true regarding the controversy as a whole likely referring to a particular tweet that I found from Augustine 18 2016 where he was talking to Zach E or Zaki and so Todd subsequently noted discrepancies in the public versus private messages from Lovecraft relating to whether they were in Berlin or not during a particular period of time that was influential to the case and so he offered to Lovecraft I don't know if this was after before he made these statements but he had offered to collect evidence to help out and that was apparently not accepted and they even stopped talking then in May 2017 he tweeted that he had decided to stay away from Lovecraft and one of their partners because of a dispute that was going on with some professors at the University of Idaho Van related to that whole controversy and so Lovecraft also blocked him on github sometime around May 2017 so yeah all of the negative interactions seemed to have come up at a particular point where it seems like they're related to the other controversy so it's unclear you know the I mean obviously none of this case has been played out so we don't know what the counter-arguments are but the lawsuit states that todd has been harmed by the defendants statements including shame embarrassment hurt feelings anxiety mortification embarrassment and loss or and loss of reputation among his friends peers or professional community additionally and on information and on information and belief Todd has lost business and professional opportunities including conference speaker ships because of the defendants statements so according to the pacer database where the lawsuit information is available the initial case management conference will take place on July 3rd in Oakland California so we probably won't hear any more information about this case for for another couple of months but in summary I just wanted to bring up the story on the show not because I think we need to go into extensive commentary but I have a feeling that this story if it gets more attention particularly from certain people especially on Twitter who have already shown themselves to be very immature in commenting on the Internet there may have been a there there may be a lot of misinformation coming out and misinterpretation and so I wanted to take this opportunity to point people to a resource that hopefully hopefully prevents that from happening to some extent I don't think you succeeded because I was trying to closely follow what you are saying but I still have the question I still don't understand whose link who for why so Peter Todd is suing Isis Lovecraft for making tweets accusing him of being a rapist or a sexual abuser what is he a Chad yeah this whole thing is is just like it's ridiculous and definitely intertwines a lot with the Jacob Appelbaum stuff I mean like you know to pull a small bit of information from Janine's investigation which like she said is pretty thorough you know I'm not gonna say whether or not Jacob actually did what what he's accused of or not I am not in any position to do so but one of the people involved in the whole situation claimed effectively that Isis was she was effectively plotting specifically to ruin Jacobs life and was caught supposedly fabricating completely one of the the multiple accusations against him as well as specifically asking about the consequences of libel in Germany in planning to pretend to be the accuser for an accusation she was not actually personally involved with and this person literally told Isis that she was afraid of her after seeing this and just the general attitude she took in pretty much against anybody who did not blindly accept as true all the accusations against Applebaum I mean to me personally the situation with Peter just looks like an attempt to effectively lash out and slander him because he did not just blindly accept all the accusations against Applebaum is true and I mean they very well might be but that entire situation was effectively just claims and counterclaims with no actual evidence and no legal process whatsoever it was effectively all just in the court of public opinion and so like personally I just I hope this is resolved for Peter's sake I don't personally believe he would do anything like that and I think it's pretty fucked up that you can effectively damage somebody's professional reputation and financial income just by making claims without any kind of actual supporting evidence to them yeah and honestly it's just like it's something I can't comment on too much just because I don't really know that well all the parties involved but I do remember a lot of that going on with the Jacob Appelbaum and at the time it wasn't just regulated to tor and you know you know network privacy and security I mean that was all a lot that was a big growing trend within just the mainstream a lot of like just false accusations and I mean you know it's something to push back on I mean it's something that is used to silence people and you know it's not always just regulated to you know this idea of sexual abuse it's also regulated you know people push against like oh well it's racism you're a racist or something it's like these words they everybody kind of defines them like we have pretty good definitions for these things but you know everybody's got their you know give-and-take of what they're able to deal with and you know that's all something that we deal with for free speech to where we could actually have something platform like the Internet to talk on and I mean you know you got somebody going around you know pushing defamation against a bunch of people in a sector I mean somebody's got to push back on that and that's where you know I think this might be a good move there for Peter to you know ya actually have some pushback on someone like this he's sort of throwing a bunch of accusations everywhere without much evidence so yeah I like I said I can't comment on it too much but I mean just as far as like the general trend of things it's a it's been a disturbing trend and it's something that I think rightfully is we're seeing pushback on from certain you know different levels because I mean it's damaged a lot where people can't talk about a lot of things just because of the fact that like some sort of you're gonna be labeled as something and so it just really hurts the discussion the overall discussion of the way everybody's moving forward it's just a way to try to pin it down to where we can't move forward so it's uh it's good to see that trend shut down all right so if there's not any more we can go right into this little story of changes settings here so Puerto Rico is trying to get all their cards in order to serve the cryptocurrency industry the bottom layer that is a bank that is licensed to handle the on off boarding of all the fiat involved well now they might have that part handled the San Juan mercantile Bank and Trust International SJ MBT is a new bank in the area that recently announced quote SJ MBT offers Fiat and digital asset custody and settlement services and it is expected to be integrated with the trading platform offered by its affiliate the San Juan Mercantile Exchange close quote they've already taken on their first customers as after they received a license to operate last month from Puerto Rico's office of the Commission of Financial Institutions the ho CIF well they are handling all the balances they are they are not handling the custody of digital assets from their press release quote deposits of fiat currency are held by SJ MBT on behalf of its clients with its regulated correspondent banks and digital assets are held by approved digital asset custodians and class closed quote and they've partnered with multiple approved custo custodians to reduce cost and help security this doesn't really sound like the best setup and to be honest I think it's not good for security we've seen all sorts of problems from different custodians who said they were operating best in class engineering we'll see but for now it's good to see Puerto Rico make a move in a direction to help support the cryptocurrency industry I mean Puerto Rico has been in a bad spot from the looming debt crisis they face and the powerful hurricane I think it was Maria recently went through there knocking out vital shirt and crypto holders and gold bugs have been flocking in the area to escape tax liabilities in the US let's hope that if they have an incentive to help build out the infrastructure their Puerto Rico won't be in such a bad spot so as much as this setup might not be the full reserve digital asset Bank of Wyoming it's at least a step in a direction that will help the little island community stand up for themselves yeah do you guys think this will help business and improve infrastructure or is this just the wrong way to go about it I mean I could see this being very valuable depending on the custodians they use for actually custody and crypto and I think I think it's very interesting that the person leading this is the era former executive from noble bank which you know I've said multiple times I I think effectively got railroaded by banks in New York for keeping full reserves for tethered and so it's you know it seems pretty interesting like I I just to summarize like I think that pretty much their custody bank in New York cut them off because of their involvement with other and ultimately led to noble Bank having to sell themselves off and you know looking at the the tight integration here with crypto services I think this is them trying to kind of bounce back and re-establish a business that can interact with the crypto space without it's so much of an opportunity for them to kind of be just fucked up by the longtime jewels of the government who don't like what they're doing yeah I mean that's a really good point I mean that was something I was thinking about as I was reading the story was you know the whole noble bank situation I mean what that was like right after tether had moved from Wells Fargo or somewhere over there Southeast Asia and then they came over to Puerto Rico and then they got shut down and then they had to go on and it's just like yeah maybe if they had a little bit more of this robust legal framework to sort of say that this is all building out to help the infrastructure of the island and to try and help you know bring more people like we're saying I mean a lot of people started moving over there because they can escape some tax liabilities so maybe they could actually serve that customer base since they're living there or they've got properties there are however the situation is it's like they're kind of stuck in a spot where they're you know a lot of people are trying to find their economic value again in this new market and you know Puerto Rico has kind of been pushed aside from the United States for a long time and they are on their own even though they're a state it's that all the states are pretty much on their own now and yeah Puerto Rico's out there near the Bahamas and all these virgin islands and everything so imagine that would be you know trying to cater that crowd it'd be good to see you know a bank opened up in that area that can help out the industry mmm it's any any any bits any pennies and he's Toshi's to toss it on this Janine no all right let's keep going we got a few more stories to get through gonna run a little bit over to today but that's alright alright so just really a quick announcement mrs. Kahn base spirals further and further into shit coin land eeeh they are now listing yose agar and maker on coin based pro with USD euro and BTC pairs for eos and auger and a BTC and USD see pair for maker and they're pretty it's pretty much going to be the same policy with normal rollouts they're going to allow people with transfer account same build-up liquidity in the order book and not actually engage in trading until the quiddity builds up before finally transitioning to allowing all types but you know this is really at this point I think they are just absolutely flailing for any kind of revenue with a huge revenue drop over the last year so and they're just trying to appeal to every shit coiner out there like they're they're the last to the ball as far as like this this massive shit coin trading mania and honestly like I really don't think this is gonna work out for them like all of these people that deal with shit like this they're already training on BitFenix or bait racks or finance like it's I really don't think this is a viable move for them to pull any kind of meaningful liquidity away from those places so it's an short update and have fun when you're fucked Condes yeah I mean my base just can't continue in the con I mean now that they've got everybody over there that they think is set up the way that they do things in there all right I guess they're just gonna try and sell them as many shit goings as they can that's just that's their good con they got going so let's go to the century of enslavement yeah let's let's go to the ultimate con what spirits tell us that story distinct surfaced on reddit today and I wasn't really looking into economica stuff during the past few years so I thought I need some refreshment of really really what's going on in the 3rd regarding money supply this was a video this was a 1 hour and half long YouTube video century of enslavement the history of Federal Reserve so it was kind of manipulative on T fed propaganda but but it was it was full of facts and and interesting stuff the other – is that it was starring Roger ever briefly at the end which is just bad it's a bad thing to do alright a couple of notes or rather quotes before I go into it by the end of this tool you will be able to explain the Federal Reserve in plain English to others so I hope I will be able to explain you guys because this is what they promised me there is no other agency of government that can overrule the actions that we take Greenspan so the Federal Reserve is completely independent not risk not the government cannot overrule what they are doing we have not owned gold since 1934 this was some random fat guy probably the the CEO Fed or whatever title they have which I found interesting and then they went into how the creation of private central bank happened and it all started in 1694 when a private recontoured bank called the Bank of England was created because England needed money for the war for against France and then this distemper it happened all over the world country by country so in most countries in the world the bank of Bank of insert country here is actually an independent banking court control thingie and not not it's not the government who is printing the money but but a completely independent bank right even if they are called Bank of England they have nothing to do with the England so that's it's kind of alarming there then it went ahead and and and and showed some some things about the Fed that they were trying to create the we're creating this kind of private central banks in the US but they always feared except the Fed what we still have to but you guys still have today but kind of we have it too because the u.s. dollar is the reserve currency of the world so makes no difference if you are not from the US the problem was in 1907 at one time there were 30,000 different currencies in circulation since familiar people were afraid the bank issued money they use will go out of business and then of course everyone got mad coxed all the time so mass withdraw has happened and exit scams and unemployment and crisis so they had to find a solution to this situation right like like you guys are looking for solutions for four I see of situation in 1913 Federal Reserve Act been passed interaction president wasone signed away the control over the American money supply to the to a banking cartel and it's it's it's not an overstatement it's it's really what happened and what they noted there is that actually the banking cartel the when they drafted the bill they they they didn't actually for that they are going to sign away the money supply for them but I mean they started negotiating with with that and they just got extremely lucky and they got control over the money supply so that's an interesting thing er another another interesting things but what I took away from this is that most money is created by banks giving loans that they can't afford and this is how crisis happens when banks keep out too many loans and then people try to be draw but they can't and then banks go to the government a government we fucked up give us some money or there will be even larger crisis than what you are experiencing now and then the government oh but we don't have money in there I mean banks can you lend us some money so I can give it to you so it becomes a circular process so banks fuck up government lends money to them what they got from the banks and now this is what the century of enslavement is what we are living in today and this is why why bitcoin is so important that no one can inflate it yeah it's a it's I mean like that Federal Reserve like it was an early on attack kind of like the similar way you know people just formulate their names closely to parts of the system that they want to co-op like consensus or you know I mean just we talked about bolts and bolts is like a spell and lightning and I mean it just happens everywhere like you know everything's kind of named after something and it Garner's a certain level of interest and I guess a little bit of respect with just like knowing what you're talking about and the Fed did that a long time ago and people bought into it and I mean it's hard to say like I mean I guess like you're trying to compare how like there was thirty thousand currencies back then and it was like this big like hey we need some way to make sure that we're dealing in the right thing and that created the Fed which said like the USD is it and are we doing something similar in Bitcoin that's a question I asked myself a good bit because for sure I live around a lot of blockchain errs and people you know working out these different platforms and everything and you know while I'm real passionate about like they're you know bitcoins gonna be the way that we solve this problem moving forward I like I never like say like you know you have to use this because part of me is like okay well we gotta let the market decide but in doing that it's like yeah I guess you're like leaving it open to just like taking a lot longer than would expect it's whenever I look at Bitcoin in the poke duds thing it just amazes me that leavin got this far with banking and accountability and accounting in the way that people will change value over hands and I mean it's something with Bitcoin and the Internet that give us gives us the asymmetric information and allows us to see like an audible scarce amount of something it's whenever we actually have that to work with it makes looking at the past seem very cavemen like and you know they did what they did to get where we are man I mean it's it's uh it's one of those where I always look at it like if we didn't have some of these problems arise and like these answers like would we be where we are today I mean like if somebody didn't get on and say like hey going to develop on this hardware set and like and then eventually we create the UX that makes people the ability to actually work within a computer system I mean it's a yeah it's Bitcoin is tied into this history and the history is still being written I mean it's uh it's a long chain of trying to get people to have a value transfer system that serves everyone it's hard I'm sorry man I'm like I'm going off and off because I mean like I could talk about this like over a couple of beers for hours yeah really I just want to point out is that the the whole Federal Reserve being instantiated in the US was that market panic in 1907 which pretty much resulted because of some idiot trying to short squeeze a company and that just did not work out for him but the one thing I want to point out here is that JP Morgan was approached to help bail out the situation very early on and he refused to and actually waited until the situation deteriorated way more than it initially did before him and others such as Rockefeller at the time stepped up to bail a lot of these institutions out and if you actually dig back through the newspaper archives at the time there is a lot of contemporary speculation of him intentionally doing that in stoking rumors of insolvency to push on the market panic which was later used as the rationalization for the Federal Reserve Act passing and as well there was a lot of very valuable assets bought up very cheaply by influential people like Morgan and Rockefeller at the time that literally went on to be some of the gigantic corporations that have lasted for a century or more that were establishing themselves at the time so in no way whatsoever do I think that that sequence of events was entirely natural and no artificial or manipulated component to it I think there is a more underlying problem here right because the crisis happened for a reason but if we go back a little bit more in history that how banks how the first banks has been how they evolve how they been created it was people having gold and valuables in their in their own homes and but they didn't wanted to keep it at home because someone can come and kick them to the ground and take take it away so they took it to a bank where they safeguard their assets and then more and more people started to do it and the banks then realized hey these people are bringing the gold in but they don't usually take it out so why don't we just you know loan it loan their gold to other people and and and I think this is the underlying problem here right the metrics effect where you have you are giving out more than how much you have that's fundamentally no different than it's like diluting metal coins though I mean that this kind of thing has always happen and despite what a lot of people like to tell themselves that's not impossible with Bitcoin either like there there's literally nothing anybody can do to stop an institution like that on top of Bitcoin it's like it's much harder it's much harder because first there are alternatives right so you can keep your own money and that's an alternative you don't want to keep your own code in your house because that's dangerous alternative that's one there are more workable often motives and the other thing is that they won't expect anyone to Beata mouth because it's mathematically impossible to print more money and give them when they are failing right so they might be more careful with their with their reserved thinking things on the exchanges although they are probably doing that even right now in this moment but not to the extent what the banking system afford did you you're missing the point though before the Federal Reserve that was the exact same dynamic like you you money wasn't printed out of thin air to bail institutions out like a wealthy person like JP Morgan actually gave them his money like they didn't they couldn't just print things out of thin air that happened after the Federal Reserve was created yeah actually that makes sense but that asks the question that what did we solve them with Bitcoin well no I think you're missing the core point I was trying to make the Federal Reserve being created with something intentionally done because they knew that they could be more blatant and extreme with that type of thing with something like the Federal Reserve existing versus the way things used to work where you just had banks operating their own currencies on reserves and if shit happened and somebody wouldn't bail you out with real assets then you were just fucked yeah but that was the time where communities were a lot smaller right I mean this is like it's it's getting into a history course here I mean for sure it's a you know there's a lot to take into consideration with all this I mean that's where it it's like I see Bitcoin this continuation of this history it's still going so uh yeah just like you know we're already pushing over to ours so let's jump into this what's going on with some mining troubles again all right sorry like yeah nope or go ahead oh no I did I have anything remaining all right okay so it looks like Montana is suffering from a little bit of mining fatigue combined with some well-known foot about Bitcoin being a major factor in global climate change wired reports on Missoula Montana and their new approved resolution that requires new cryptocurrency mining operations to offset their energy use by funding or building new renewable projects local politician Josh slotnick says quote we looked at the potential for new Bitcoin mining and saw that we we're never going to meet these goals if mining happens in the way it's been happening the use is so extreme it Dwarfs everything else in our country close quote right now mining operations in the area employee 19 people and use around a third of the county's households in electricity however this is all from one mining operation that isn't even in Missoula County hyper block is a Canadian company that works out of Bonner Montana and these new rules wouldn't apply to them however they have they have thought about expanding their operations recently and that's where it does feel targeted at them the facilities manager there at hyper block Jason Vaughn says quote we are knee-deep in the process of expanding and now they are trying to change the rules on us close quote and he goes on to say it's misguided regulations because quote they are putting up this propaganda that we are contributing to global warming and yet we've been buying our power from the Coeur dam they are still going after us even though we are doing things right close quote hyper block might not be held to this new standard as they've been going through the planning process for a while now the county's sustainability coordinator diana Minetta says this comes from looking at other areas where mining operations are more entrenched like Eastern Washington she acknowledges the challenges of installing new sources of renewable energy from scratch but says that the county had identified a number of ways to help cover the required investment saying as purchasing agreements to help fund projects I guess we'll have to see yeah how this story develops but yeah Missoula Montana is a unicorn in the state it's the location of the state's University and really isn't a greater representative of the area it's hard to say how this is going to affect the mining ecosystem up there but for sure it's gonna hurt Mozilla's ability to help grow their technology sector when it comes to the mining ecosystems that are already there being developed so yeah it looks like they're putting the brakes on this because they've been buying into a lot of the global climate change Bitcoin mining FUD but I mean like I'm saying it's a it's a county that doesn't even really affect the only mining operation there in the state but there are a lot of other mining operations that are trying to set up shop and they're trying to expand and it looks like this little you know we just say it a liberal college town you know I mean they're pushing back on this whole thing with that narrative we've been hearing for a long long time now so it's yeah I guess it's just like you know responsive to all of that yeah this is kind of fucking infuriating that this type of bullshit narrative is actually like impacting actual businesses now like who the fuck in their right mind is gonna point at somebody buying electricity from a hydro dam and say that you are creating carbon emissions like our politicians literally completely fucking brain-dead are they that fucking stupid I'm afraid so man you know they they hold their finger in the wind and run with it yes which is why everybody there kiss yeah I mean you're right I mean it's why we're in Bitcoin we like right the processes of yeah this whole weird Antarctic organism govern itself all right so let's keep moving here where we going got some Canadian darknet market money getting seized yeah this is kind of like I don't know this is kind of troll by the Canadian legal system because so judge in Canada has ordered that 30 year old Matthew Phan forfeit by the way whenever I see this guy's name I can't help thinking about Kevin Pham but Matthew Phan is being ordered to forfeit 1.4 million dollars worth of Bitcoin that was found on his computer as part of an investigation into his activity on a dark net market involving guns and narcotics and according to the star this is the first seizure of Bitcoin done by Canadian police the seizure actually took place back in 2015 when the value of his Bitcoin was only $65,000 so that's a pretty big increase in February of this year fan had a forfeiture hearing and he argued that he should be allowed to keep half of the Bitcoin because quote not all not all were used for illicit purposes and as far as I can see the prosecution has not proven otherwise now I believe in terms of Fiat if a crime occurs there are two things that police can do with the proceeds related to that one they can do a very screwed up thing called civil asset forfeiture where they accused not a person but an object or money of committing a crime and so the object or money must defend itself and that usually never ends fairly or makes any sense the other option is that they can only seize funds that they that they can prove our proceeds of crime and apparently in this case the judge has decided that there is overwhelming evidence to suggest that mr. Phan was using the dark markets to purchase illegal items such as firearms and silencers but then there is a reasonable inference to draw the conclusion that the payment for such illegal narcotics and sales was made using Bitcoin so yeah there seems to be some kind of expectation for there's a different expectation for Fiat that I'm seeing than there is for Bitcoin because they're basically saying like because you used Bitcoin we're going to assume that all of your money that you have in Bitcoin was used for that purpose the the weird part is this is the bit of a troll the judge so that they were suspicious well this is in the article the judge was suspicious but not entirely confident that the entire amount was used for crime so they will allow him to keep thirty six thousand dollars worth of Bitcoin so if you can see what they did there if the original value of the Bitcoin would have seized was about sixty five thousand dollars and they're saying oh you can keep three six thousand effectively the judge has granted fans requests to keep half but that half is being measured in Fiat as it was originally you know valued in terms of the bigger the bitcoins value when it was seized so I see what they did there yeah fuck right I mean like just hey you know your Bitcoin you were using a darknet market you might have been a traitor doesn't matter you were using a darknet market we're seizing all your Bitcoin it's and I should also point out he hasn't actually been sentenced sentenced yet so this seizure is not even part of his sentencing which is really strange that's like like seriously like what the fuck is going on like is he was just a purchaser of shit like he was not selling things on the darknet market uhm I think well I think what he was actually accused of was that he was buying it buying the weapons from outside of Canada and importing them so some kind of import crime or yeah but but he was not like sailing anything that he was mad purchasing things as far as I know I don't think I saw anything about selling but I don't I didn't look at the entire legal document that is fucking insane that's like catching somebody buying a fucking bag of weed and so going we're gonna steal your house like what the fuck I mean you know yeah I mean they've recently been doing that with people you know going buy a house or a car with cash and they say well we're seizing all your cash I mean the civil asset forfeiture thing was just recently put don't know but no but that's the thing like civil asset forfeiture like money for criminal shit that's if it is the proceeds of a crime if you make money doing something illegal not if you take legal money and fucking spend it on something illegal yeah so I just checked so he was I mean they're calling him a drug dealer but it looks like he bought Bitcoin in order to purchase guns and illegal narcotics it doesn't say anything about selling and then he was he pleaded guilty of attempting to import a gun and possessing several illegal substances and he said some Bitcoin was used to purchase and so the only case where he was selling something was gold he was selling gold but that wasn't part of what he was accused of but that's the only selling that he did everything else was just converting into Bitcoin to purchase other things man I hope they don't make a example of this guy like you know Russell requres just like somebody who really believes in free markets and you know anarchism and you know yeah this is all just technology and stuff that we should be able to use and they're gonna throw the hammer down I hope not but I mean like just like we're saying I mean this like just going after all this Bitcoin because of the use of a darknet market seems kind of yeah it's a little harsh yeah all right well we ready to move on to the next one yeah man I know you got a lot to say about this so inform us what is going on with PewDiePie man PewDiePie made an oopsie so yesterday I think it was or the day before PewDiePie uh pretty much killed some nonsense a blockchain streaming video content on his YouTube channel and said he's going to start streaming on this and so I am obviously very upset I'm betrayed I'm hurting inside I'm crying you know he's he's completely destroyed the faith that this nine-year-old had in him but yeah so to dive into this this shit coin platform he's shilling I I do have to say one thing it is a lot less retarded than it could have been because they're not making absurd claims like storing videos on the blockchain but it's still like when you really look at it not the type of a platform that's really going to in the long term solve any of the problem that a lot of these YouTube content creators are dealing with that are pushing them to look at things that are more decentralized in terms of platforms to post on and this this project is called D link or D live and it's built on something called the lino Network and the lino network is pretty much a completely proof of stake system that tries to incentivize infrastructure for content delivery instead of nonsense like Steam claiming where we're put everything on the blockchain but when you really look at the the incentives of this system it's effectively the rewards get gets split up like this it's you have sixty five percent of all new tokens going to infrastructure providers you have ten percent going to app developers ten percent going to validators who validate the chain and percent goes to content creators and five percent goes to viewers so at least in terms of the overall new currency supply entering circulation it's actually worse than YouTube which if I remember correctly only takes like 30 percent of the the revenue that a content creator makes and so but I do want to draw the distinction of like what is specifically being given to the content creator versus the overall new supply in the the currency system but it's still like you're giving two thirds of the new supply to the the content delivery maintainer and only 10% of that is going to content creators and pretty much the bulk of a creators revenue is just pure donations or paid subscriptions which like the the it's really kind of confusing to me given that you have things out there like bitch sheep which use BitTorrent as a back-end and don't have this this whole absurd like proof of stake blockchain to finance things where everything just you give donations or you subscribe to a content creator so really like it's like why why do you have this nonsense cryptocurrency with this proof of stake system where the bulk of the money is going to a CDN operator when can solve a lot of these issues in a much more decentralized way and still have donations and subscriptions go to content creators and as far as the the incentives in the long term like you pretty much have to take your your line oh token and stake it into something else in order to be a CDN maintainer to be a validator to be a pretty pretty much any significant participant in the system and they leave rule changes up to snake voting and some of the things that that these rules I mean obviously like changing base consensus rules the voting is irrelevant people can just fork it and do whatever the fuck they want but you can change things like you know staking requirements internal to the system like how much you need to stake to be a validator or an infrastructure provider and given the the nature of proof of stake the biggest holders are gonna get the biggest advantage of this and if you compound and reinvest properly are going to just pretty much centralize and concentrate things I mean inevitably this is going to just devolve into a totally centralized system with a handful of people raking in most of the money maintaining very centralized and efficient delivery mechanisms in total control of the platform with content creators overall getting a very small slice of the money pie it's probably gonna wind up being even less then centralized platforms like YouTube so like why why do you build this huge Rube Goldberg machine like this that's inevitably going to devolve into the same problems or worse that a platform like YouTube when you you have things like bit shoot or other platforms that are actually essential in terms of content distribution and just work on that patronage model where you just donate or subscribe to a creator to pay them which is effectively what this whole lou goldberg proof of steak machine is because out of the block reward a creators only getting like 10% that's an insignificant thing so it just really kills me because this is something I see over and over again with people on platforms like YouTube making content who are dealing with like these constant like persecution campaign censorship getting their their channel shut down like being demonetised for arbitrary nonsense they just keep flocking to these these absurd shit coin products and just completely flawed systems thinking that this is gonna solve all their problems but at the end of the day anybody who's even curse early or curser anybody who's even vaguely familiar with how systems like this work can just glance at this and see this is going to devolve into the same situation they're in now or in most of the cases something even worse and it just fucking kills me to see this because there are actual viable like resilient distributed alternatives that these people can start to use but it's all of these these ico and shit coin projects that throw together a huge marketing budget that always keep catching their attention and it fucking kills me yeah I mean sorry no party my good I just wanted to say to the to the guys from daling who are watching this and getting angry that know that she no be said it's a lot less retarded than it could have been so I guess just take it as a compliment it's the best you can get yeah blockchain project in you know yeah like a overall score from shinobi about the best you're gonna get I mean I think that's mainly to do with this affiliation with PewDiePie more than I mean like I need to look into the network but I know she know he's a fan of you I'm I'm not but I do watch Tim poo a lot and he's also like just all about this minds platform and you know he was talking about this story earlier and he was talking about how yeah kryptos and blockchains are gonna change the world and this is all censorship resistant and yeah there's a lot of just like running with the language without really deep digging into it and understanding what's going on that makes that gives Bitcoin those features and like do these other blockchains have any sort of semblance to that and even so I mean like you're still at the behest of usually a small development team and a small group of investors and you know like we're saying earlier I mean this all kind of leads up to different legal definitions and you know certainly some areas and pinch points to make it not censorship resistant so yeah I wish that you know people would dig into this a little bit more before they just jumped on a platform like D LIBOR mines and then just start pushing it from the rooftops because I mean I think cues given away 50,000 of these llena coins $50,000 worth of these llena coins to streamers I mean you know and I mean every episode of temples news like news shows he talks about go to minds go to minds calm that's where we're at and I mean a lot of this is just like from I imagine like their inner circles and you know people within those circles that think they have a grasp on it and they point them in a direction I mean at least the minds guy I know the guy behind that has like that you know he wants everything to be free speech and he wants the platform to be but it's I don't know if he's just disregarding the fact that you know he's running the platform and there's something's on there that the government doesn't want they know who to go to him I mean so yeah it's a it's just like it's a big problem I think the best people I've seen from the main dream approach this was dave rubin and jordan peterson who quickly said like well the answer is not there yet and we're looking for it so yeah i don't know if it's that much of a surprise I know it's Pugh and you got some special you know care for that guy and it's uh content and I know a lot of people do so I guess that Lina networks gonna go places same with the minds platform I mean this is where I don't know if we're gonna be able to how this blockchain madness is gonna take off with the next bull market but I mean it seems to me like it's not going away right now like this this next run or wherever it's it's gonna get a little bit more crazy I think why did you do it kids why I mean show me what do you really expect of a guy who got famous off of playing video games that's basically what he did he is a genius he puts up with the bullshit he puts the nine year olds on the right path and he made it oopsie the only two videos I think I've ever watched if his was when he played that game I don't remember it's called but his Slenderman in it I watched him play that and there was another one what was the irony remember oh yeah check he there's people who do like these shot really things where they just show up on chat rooms and like surprise people I think I saw that but other than that all I know about him is that he's Swedish and he's famous on the internet and he has a lot of money some surprise people you mean like with their penis watch that if that was the case there is like another little to this where Tim Poole brought this up this morning and I heard him say it and I was thinking about like here might be something to this where you know PewDiePie has got a lot of that like negative connotation with this whole political correctness and like you know and like are they gonna start staining you know a bunch of bitcoiners and blockchain errs and say like you know every single one of them is alright and you're supporting Nazi groups and I mean like it could happen all right final thoughts all right I will take that as final thoughts so alright guys first up we saved this until the end of the episode so that we don't have to deal with you freaking out through the whole show ah guess there's no easy way to put this for the foreseeable future we are going to be going down to one Episode a week on Wednesdays although like today if there's a lot of stuff to cover we'll push a little over two hours just because of some schedule tightness on some of our parts and also to try to kind of give some of us the time to work on a little different content and start getting that out there just with the schedule complications we've been dealing with lately so you guys can freak out now yeah I mean like legitimately don't freak out too much because I think you're gonna get more content in the long run out of this so we're like you're saying I mean we'll all have a little bit more time to work on other stuff and you know it'll be easier to bring in more special editions and you know do things like that and you know I know that there's definitely some you know stuff in the background of like you know getting some people from the past back in and everything I mean like things are gonna always shake up a little bit development doesn't stop I mean like we kind of got efficient with things and that's great but you know always room to improve yeah and I just want to say sorry to all the people who have been asking for shorter shows that were now going in the completely opposite direction what you asked for but I think we are also planning to timestamp the different stories so if you don't want to listen to all of them then you can find the ones that you're interested in no you listen to all of it and you'll like it no like yeah actually I've been time stamping along this whole way and so from now on whenever you come to our episodes if you just want to listen to a particular topic just open the description and there should be a timestamp for that particular story so you know get that little bit of a fishin C game there you know I just wanted to say for all those people who are asking for longer shows that yeah we are going to that direction so that's a good news there all right yeah so outside of that other final thought go to your meetups support your local meetups always unis no para any more final thoughts oh yeah one more was developers use Windows just today cuz most developers are fucking idiots my only final thought is that if you haven't heard on April 4th the support network for Chelsea Manning announced that she's finally been moved out of solitary confinement which she was in for 28 days which is you know 21 days at minimum is considered torture by the United Nations but she's now been moved into gen-pop so you know still really really angry that she's in prison at all but at least she's not isolated that's even word yeah alright I guess my final final thought is gonna try like you know so we're all gonna be kind of working on some some new content in parallel here so with mine I'm going to apologize preemptively for trying to be a little more noob friendly which is probably to make some of you a little angry sorry but it's got to be done alright and I guess that wraps her up until next Wednesday try not to lose your mind you guys and I will remind you because we haven't in a while go to Dragons Den dot IO and if some of you are feeding for conversation and stuff some of us hang out in there all day and chitchat Bitcoin so open room everybody's welcome adios till Wednesday guys better everyone

3 thoughts on “Block Digest #171 – Blockchain Made An Oopsy!”

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