Lifeboat Foundation

This short post is not about Bitcoin. It’s about a new method of organizing and arbitrating communications that is at the heart of Bitcoin

We hear a lot about the blockchain. We also hear a lot of misconceptions about its purpose and benefits. Some have said that it represents a threat to banks or to governments. Nonsense! It is time to form a simple, non-political, and non-economic explanation…

What is a Blockchain?

The blockchain is a distributed approach to bookkeeping. It offers an empowering, efficient and trusted way for disparate parties to reach consensus. It is “empowering”, because conclusions built on a blockchain can be constructed in a way that is inherently fair, transparent, and resistant to manipulation.

Continue reading “What is a Blockchain?” »

When my daughter was just starting primary school, she would look inside a book for the pictures before reading the text. She was old enough to read without pictures, but she wanted to get a quick synopsis before diving in. “Look, Dad! a bunny is carrying a giant clock into a rabbit hole.”

This is my first article without pictures. At least none of Bitcoin, because the copper coin metaphors are tired and inaccurate. At the user level, owning bitcoin is simply your stake in a widely distributed ledger. Ownership exists only as strings of secret code and public code. There is no physical coin.

Since the only pictures in this post show a white rabbit with a big clock, let me give you the quick synopsis: The answer is “No”. Bitcoin will not end government, nor its ability to tax, spend—or even enforce compliance.

But there is an irony: Most lawmakers and regulators have not yet figured this out. They perceive a great threat to their national interests. That’s why Andreas M. Antonopoulos runs around the world. He briefs prime ministers, cabinets and legislators with the noble purpose of demystifying and de-boogieing Bitcoin.

Continue reading “Will Bitcoin End the Reign of Government?” »

A piece I wrote recently about blockchain & AI, and how I see the Lifeboat Foundation as a crucial component in a bright future.

Blockchain technology could lead to an AI truly reminiscent of the human brain, with less of its frailties, and more of its strengths. Just as a brain is not inherently dictated by a single neuron, neither is the technology behind bitcoin. The advantage (and opportunity) in this sense, is the advent of an amalgamation of many nodes bridged together to form an overall, singular function. This very much resembles the human brain (just as billions of neurons and synapses work in unison). If we set our sights on the grander vision of things, humans could accomplish great things if we utilize this technology to create a truly life-like Artificial Intelligence. At the same time, we need to keep in mind the dangers of such an intelligence being built upon a faultless system that has no single point of failure.

Just as any technology has upsides and corresponding downsides, this is no exception. The advantages of this technology are seemingly endless. In the relevant sense, it has the ability to create internet services without the same downfalls exploited in the TV show ‘Mr. Robot,’ where a hacker group named “fsociety” breached numerous data centers and effectively destroyed every piece of data the company held, causing worldwide ramifications across all of society. Because blockchain technology ensures no centralized data storage (by using all network users as nodes to spread information), it can essentially be rendered impossible to take down. Without a single targeted weak point, this means a service that, in the right hands, doesn’t go offline from heavy loads, which speeds up as more people use it, has inherent privacy/security safeguards, and unique features that couldn’t be achieved with conventional technology. In the wrong hands, however, this could be outright devastation. Going forward, we must tread lightly and not forget to keep tabs on this technology, as it could run rampant and destroy society as we know it.

Continue reading “Blockchain & Artificial Intelligence” »

For most of us, figuring out the value of something that we want, comes from research. If you want a new set of wine glasses, you check the price online. Perhaps you consult a catalog. If the set of 8 stemware goblets that you like are a current model from a major company, there are probably many places to buy them. If there are multiple Ebay sellers and many recently completed sales, then you can establish the value with precision.

I’ve written a lot of Bitcoin articles on this Lifeboat Blog and elsewhere, so, let’s dig a bit deeper this time. Let’s talk about from where value really comes.

Supply and Demand

In the end, an item’s value is a direct result of supply and demand. It’s no different with a currency. And let’s be clear: Despite a raging debate, Bitcoin is a currency and not just a payment instrument. How can I be certain? Try this mental exercise—

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The controversial group behind several bitcoin ‘stress tests’ has confirmed it will push ahead with its biggest experiment to date.

Speaking to CoinDesk, CoinWallet COO James Wilson said the test – which could reportedly cause a 30-day backlog of transactions – would be executed at 10am Thursday (GMT) next week.

The mysterious group, which sees its work as a drastic but necessary demonstration of Bitcoin XT’s need, has been criticised by some users for “bullying” a live network worth several billion dollars.

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A brief introduction on the coming technological singularity. And a hint at how digital peer to peer cryptocurrencies like bitcoin which was the first. Will turn the ‘internet of things’ into the ‘economy of things’. Plus also I feel validates the case for a new debt free monetary system to provide a universal citizen’s dividend.

#technologicalSingularity #singularity #AI #cryptocurrency #bitcoin #citizensDividend #socialDividend #universalBasicIncome #basicIncome

Continue reading “Humans Need Not Apply” »

Is Bitcoin money? To its users the answer is probably yes, but to many people the answer is less clear. Alan Greenspan, for example, said in December 2013: “I do not understand where the backing of Bitcoin is coming from. There is no fundamental issue of capabilities of repaying it in anything which is universally acceptable, which is either intrinsic value of the currency or the credit or trust of the individual who is issuing the money, whether it’s a government or an individual.” Indeed, one of the things holding back the adoption of cybercurrencies such as Bitcoin is that they do not fit well with traditional ideas about money.

Answers to the question “what is money” have typically fallen into one of three camps. The first, known as metallism or bullionism, holds that money needs to be backed by precious metal. The second camp is chartalism (from the Latin charta for a record) which holds that coins and other money objects are just tokens, that the state agrees to accept as payment of things like taxes. Finally, there is the dominant, hands-off school of thought, which most mainstream economists would agree with, which says that money has no unique or special qualities, but instead is defined by its roles, e.g. a medium of exchange.

Bullionists and chartalists therefore emphasise a different aspect of money – the inherent value or the authorising stamp – while most economists treat it as an inert chip. But none of them seem to apply well to emerging cybercurrencies, which are not backed by precious metal or the state, and (at least at first) are not much use as a medium of exchange. So how do they become money? The answer to this question is that money has quantum properties which allow it to be booted up from the ether.

Quantum money

Continue reading “Bitcoin needs a quantum theory of money” »

Responding to this nugget from Engadget:

Tokyo’s district court has ruled that it’s not possible for people to own bitcoin, and therefore they cannot sue for compensation in the wake of Mt. Gox’s collapse.

The ruling comes days after the head of the world’s largest bitcoin exchange was arrested on charges of fraud. Judge Masumi Kurachi felt that bitcoins do not possess “tangible qualities” to constitute owned property. Mt. Gox held thousands of individual accounts, and so there’s plenty of angry customers looking for compensation.

Continue reading “Japanese Court: Bitcoin Cannot be Owned” »

Can you picture a world without physical money? A world where we don’t have to carry bills and coins in our pockets and wallets? Generation Z can.
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