Wall Street Firms to Move Trillions to Blockchains in 2018 | IEEE Spectrum

Wall Street Firms to Move Trillions to Blockchains in 2018; Amy Nordrum; In IEEE Spectrum; 2017-09-29.
Teaser: The finance industry is eagerly adopting the blockchain, a technology that early fans hoped would obliterate the finance industry

tl;dr → Depository Trust and Clearing Corporation (DTCC) will trial something with a blockchain in the title.

Mentions

Institutions

The Old Money Managers

Startups

The New Money Managers

Promoters

Boosting

  • Consensus 2017, the booster conference
  • Hype Cycle, Gartner Group.
    The metaphor of the Trough of Disillusionment of underdamped an control system, comprehending the social process of the diffusion of innovation.

Organizations

The Boosterists

The Products

Open

  • The canon is recited
  • Depository Trust and Clearing Corporation (DTCC)
  • permissioned blockchain
  • Hyperledger
  • J.P. Morgan
  • Axoni
  • Axcore
  • Consensus, a conference
  • Bloomberg
  • Thompson Reuters
  • Chain
  • IBM
  • Microsoft
  • Goldman Sachs
  • DApps
  • Go, a programming language
  • Hyperledger Fabric
  • Ethereum
  • public chain
  • Citibank
  • Proof of Concept (PoC)
    Proof of Work (PoW)
    Proof of Stake (PoS)
  • Enterprise Ethereum Alliance
  • World Economic Forum, (WEF)
  • Guernsey
  • Unigestion
  • Goldman Sachs
  • Northern Trust
  • R3
  • Corda

Pantheon

“Satoshi Nakamoto,” The Prophet.
An archetype figure: a Santa Claus or Moses or even a Jesus-type figure. “He” came, gave us a gift (and behold! it was perfect in every way!); upon the Redemption, he was Assumed and thus disappeared. No one is sure who “he” was or if “he” really existed. Whether “he” existed at all is not important to those of The Faith. “He” has no childhood friends or contemporaries who knew “him.” All we have are “his” writings, enshrined in the Wayback Machine and conspiracy theory discussion forums. Maybe “he” really was from The Future; maybe “he” really was sent by our descendants to prevent a Greater Evil, as was foretold in multi-part Hollywood hit movie, The Terminator. Maybe The Blockchain is itself “The Skynet” as was prophesied. No one knows. But, HURRY, INVEST NOW!

Quoted

For color, background & verisimilitude…

Referenced

Previously

In IEEE Spectrum

Previously filled.

The resolution of the Bitcoin experiment | Mike Hearn

Mike Hearn; The resolution of the Bitcoin experiment; On Medium; 2016-01-14.

tl;dr → 4500 words. The Bitcoin culture is & was corrupt.  Now it is failing.  The technology “doesn’t scale” anyway. The long con is folding up.  Mike Hearn exits, stage left.

Biographical

  • age, 31,
  • R3
    • <quote ref=”NYT“>currently “on salary,” Andreessen Horowitz; towards Bitcoin development</quote>
    • <quote ref=”NYT“>R3, is developing Bitcoin-like networks for banks to enable cheaper and faster ways to trade assets of all sorts. The start-up aims to take advantage of the less-centralized record-keeping methods of Bitcoin, but still allow for someone to be in charge, to handle the software and to manage access to the system.</quote>
  • ex-Google, Google aps
  • degree? Durham University, England
  • grew up in Manchester, England,

Quotes

<quote ref=”Mike Hearn“>

Think about it. If you had never heard about Bitcoin before, would you care about a payments network that:

  • Couldn’t move your existing money
  • Had wildly unpredictable fees that were high and rising fast
  • Allowed buyers to take back payments they’d made after walking out of shops, by simply pressing a button (if you aren’t aware of this “feature” that’s because Bitcoin was only just changed to allow it)
  • Is suffering large backlogs and flaky payments
    • … which is controlled by China
    • … and in which the companies and people building it were in open civil war?

I’m going to hazard a guess that the answer is no.

</quote>

<quote ref=”ProHashing“>

Some customers contacted Chris earlier today asking why our bitcoin payouts didn’t execute …
The issue is that it’s now officially impossible to depend upon the bitcoin network anymore to know when or if your payment will be transacted, because the congestion is so bad that even minor spikes in volume create dramatic changes in network conditions. To whom is it acceptable that one could wait either 60 minutes or 14 hours, chosen at random?

It’s ludicrous that people are actually writing posts on reddit claiming that there is no crisis. People were criticizing my post yesterday on the grounds that I somehow overstated the seriousness of the situation. Do these people actually use the bitcoin network to send money everyday?

Mentions

  • Bitcoin
  • Developers
    • a.k.a. The Good Guys, who support the block size increase, Bitcoin XT
    • The Bad Guys, who do not support the block size increase, Bitcoin Core
    • The Fantastic Guys
      • Satoshi Nakamura
        The Ghost of Christmas Past, The Shower of The Way, The Savior & The Man Who Never Was
  • Bitcoin Core
    The software that you have to run to participate.

    • contra Bitcoin XT
    • Bitcoin Core v0.12
      • transactions are reversible
      • transaction fees can be added after the transaction is recorded.
      • transaction clearing fees; <quote>higher than credit cards<quote>
  • Bitcoin XT
    • achieved 15% adoption
    • contra Bitcoin Core
  • Factoid
    • Mining blocks is paid 25 BTC ~ $11,000 USD
    • Conversion rates (various days)
      • ₿1 BTC = $325 USD
      • ₿1 BTC = $440 USD
  • Coinbase
  • Governance, Community Processes
  • Componentry
    • libconsensus
    • Bitcoin Core
    • “the node software”
    • The Bitcoin Consensus
  • Attacks
    • Bitkiller
      • “a hacker”
      • Russie
    • <quote>entire datacenters were disconnected from the internet until the single XT node inside them was stopped. About a third of the nodes were attacked and removed from the internet in this way.</quote>
  • Promotions
    a.k.a. <quote>The Bogus Conferences</quote>

  • Scandals
    • Mt. Gox
    • other embezzlement and pump & dump scams.
  • Alternative Bitcoin
    • Bitcoin XT (Mike Hearn & ilk)
    • Bitcoin classic
    • Bitcoin Unlimited

Mythology

  • Satoshi Nakamoto created Bitcoin, then disappeared [not died, killed, or disavowed, but he disappeared; c.f. indeed, the Monomyth]

Framing

  • <quote>When Satoshi left, </quote>

Sites

  • bitcoin.org
  • linuxfoundation.org

Timeline

  • 2015-12 → Scaling Bitcoin, Hong Kong
  • 2015-08 → Scaling Bitcoin, Montreal
  • 2015-08 <quote><snip/> due to severe mismanagement, the “Bitcoin Core” project that maintains the program that runs the peer-to-peer network wasn’t going to release a version that raised the block size limit.</quote>
  • 2015-05 → Gavin Maxwell begins arguing against raising the limit, in his blog; c.f. , Time to Roll Out Bigger Blocks

Previously

Mike Hearn, using the self-asserted identity token @octskyward, on Medium.

Referenced

In order of appearance, duplicates removed & some sources coalesced.

Actualities


Exhibit: A graph of the timeline 2014-10-01 → 2016-01-01

  • yellow, right → bytes, block sizes
  • blue, left → XBT, transaction value


Exhibition: 95% of bitcoin mining capacity is <quote>a handful of guys sitting on a single stage</quote>. in Hong Kong, at Scaling Bitcoin, 2015-12-06.

Source: Gavin Andresen, New York Times (NYT)

Promotions

Satoshi Nakamoto of Bitcoin fame

In archaeological order (more recent on top)…

Via: ; Bitcoin A Forensics Analyst Who Worked On The Newsweek Story Explains How They Converged On Dorian Nakamoto; In Business Insider; 2014-03-07.

  • Introduces Sharon Sergeant, Newsweek
  • Something about how Dorian Nakamoto talks about “disk space” and “Moore’s Law” in the paper (and in real life?) so therefore he’s an old guy.  And by quote, the youngs don’t utter these words any more for they are free of those concerns in the digital nativity.
    • “The idea of conserving any kind of resources, and this is part of my formation, my long background in systems testing, that was a critical issue. But those are very very old-time concerns. To even mention disk space, things like that — disk space is cheap! And Moore’s Law is an old maxim that computing power will double. We’ve gone exponentially away from Moore’s law, but that was what it was all about in that interim period.” attributed to Sharon Sergeant.

Via:; “Real” Satoshi Claims He Is Not Dorian Nakamoto; In TechCrunch; 2014-03-07.

  • Just what the SEO-laden title says.

Quoted

Via: Leah McGrath Goodman; The Face Behind Bitcoin; In Newsweek; 2014-03-06.

  • Dorian Satoshi Nakamoto
    • Dorian Prentice Satoshi Nakamoto
    • U.S. District Court of Los Angeles in 1973
  • Education
    • California State Polytechnic University
    • graduated age 23
  • Birth
    • 1949-07
    • Beppu Japan
  • Family
    • Akiko, mother, now 93, around Temple City CA
    • Arthur, brother, around Temple City CA
    • Tokuo, brother, Duarte CA
  • Marriages
    • “1980s” => unnamed, child: Eric Nakamoto
    • “1980s” to 2000 => Grace Mitchell, age 56, Audobon NJ; met at a Unitarian Church mixer, Cherry Hill NJ; separated, not divorced.
  • Children
    • six
    • Eric Nakamoto
      • by wife1
    • Ilene Mitchell
      • by wife2, Grace Mitchell
      • employed at Partnerships for Student Achievement in Beaverton, OR
  • Timeline
    • 1987 => Nakamoto & Mitchell move NJ -> LA
    • “1990s” => Laid off twice
  • Work
    • Hughes Aircraft, LA
    • RCA, LA
    • Quotron, LA?
    • FAA, NJ, 2001
    • No work since 2001.

Quoted

  • Gavin Andresen, 47, Bitcoin’s chief scientist.
  • Martti Malmi, attributed as “Nakamoto’s Finnish protégé”