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Category: internet – Page 270

Oh, Cheez…We’re back to this question, again!

As a Bitcoin columnist, I get this question a lot. Today, an answer was requested at Quora.com, where I am the lead contributor on cryptocurrencies:

“Clearly, some people value Bitcoin. But How can
this be? There is nothing there to give it value!”

Many individuals, like the one who asked this question, suspect that Bitcoin was pulled out of thin air—and that it is not backed by gold, a government, or an authoritative redemption guaranty. After all, it is just open source code. What stops me from creating an ElleryCoin using the same code?!

Let’s start with the short answer:

  • Indeed, it was pulled out thin air
  • It isn’t backed by an asset, government or promise
  • You could easily clone Bitcoin (the entire mining ecosystem) and distribute it yourself. It would be exactly like Bitcoin. Yet, Bitcoin is clearly valued by everyone, and your new coin is unlikely to generate interest or adoption.

A More Complete Answer: What is value?

Bitcoin has more intrinsic value than a government printed paper bill. The value arises from a combiation of fundamental properties:

  • It has a capped supply
  • It is widely recognized, liquid, and resistant to legislation
  • It has attained the robust supply-demand of a growing, 2-sided network.
  • It is open and transparent. This elevates user trust
  • Unlike cash and credit, Bitcoin requires no back-end settlement. That’s because it is not a payment instrument. Rather it is money itself.
  • Finally, it’s value is likely to be durable, because it is not printed by a country that has racked up debt. In fact, it can never be inflated.

Downside and Risks

But wait! What about the long transaction delay and high cost? There are sharp disagreements anong miners, users and developers concerning block size, transaction malleability, and replay issues. Aren’t these a deal killers? And what about wild volatility in the exchange rate? Doesn’t this retard adoption as a functional currency?

These are transient issues associated with a new technology. Although Bitcoin is weathering growth pains that arise from a new and distributed governance technology (democracy can be messy!), all of these issues have sound solutions. We have already witnessed and tested the solyutions with various forked coins. Think of them as beta tests. Even if current problems delay the day when you can spend bitcoin at every retail establishment—it is already sucking liquidity from national currencies and becoming the world’s de facto reserve currency.

Many individuals find all of this hard to accept. That is because we have been conditioned to think that ‘value’ arises from assets with ‘intrinsic’ value, the promise of redemption, or by edict. This is not true. In all things, (including gold, a Picasso painting, or your labor) value arises from simple supply and demand.

Some individuals claim that all other factors are secondary. But, even this statement is false. All other factors are irrelevant. They may be related, but they are not the source of value.

I recognize that this answer may seem smug or definitive. So, allow me to suggest related questions with answers that are a bit more interesting, because they are subtle. Unlike the question of value, these two questions are open to analysis and opinion: (1) “Will people continue to value bitcoin in the future?” — And (2) “When will Bitcoin stop swinging wildly in value?” (measured by its exchange rate with other currencies).

This is fun! Let’s explore…

Philip Raymond co-chairs CRYPSA, publishes A Wild Duck and hosts the New York Bitcoin Event. Last month, he kicked off the Cryptocurrency Expo in Dubai. Click Here to inquire about a live presentation or consulting engagement.

Let’s say that you no longer trust your currency exchange to host your Bitcoin wallet and you don’t trust a Trezor or Nano hardware wallet. You don’t trust your memory and you don’t trust your kids. And you certainly know better than to keep your wealth in your PC or phone. That would be downright crazy—right? What can you do?!

A growing number of people are printing paper wallets. It is the ultimate form of security. Some individuals even delete their cloud wallet, leaving everything to a string of hex characters or a QR code printed onto a slip of paper. (NB. You had better be certain that you and a few trusted individuals know how to find that piece of paper!)

But here’s an interesting mystery. If you print the paper wallet off-line and delete your other wallets, then how can the blockchain ‘know’ that you have changed wallets? The short answer: It doesn’t and you haven’t!

Let’s explore a bit deeper…

  • The deed to your house is stored and maintained by a registry. It is housed in a court house or other government building.
  • With a bearer bond, a certificate in your posession is the actual item of value.

But, in both cases, the fact that you made a photocopy of your deed or corporate bond is not of any consequence to others. It is the same with a Bitcoin wallet. (In this case, the ownership record is netiher in a government warehouse nor in your posession. It is crowd-sourced).

Printing out a paper wallet does not change your wallet ID. The paper wallet is simply another method of storing and retrieving the proof that you own a part of a mathematical solution set—That is, you know the solution to a problem.

Your paper wallet is just a copy the keys to your wealth. Of course, you may choose to destroy the other keys, that’s your business. No one knows or verifies that you still have access to your stored knowledge or how you stored it. It’s up to you to maintain access to the “document”. The blockchain only records a transfer of ownership from one wallet to another at the time of a payment transaction.

Got it? I hope you like the metaphors. I am fairly proud of myself for this explanation.

Philip Raymond co-chairs CRYPSA, publishes A Wild Duck and hosts the New York Bitcoin Event. Last month, he kicked off the Cryptocurrency Expo in Dubai. Click Here to inquire about a live presentation or consulting engagement.

China has unveiled three-year plans to increase the country’s economic competitiveness by developing “key technologies” in nine industrial sectors, from robotics to railways.

Other areas include smart cars, robotics, advanced shipbuilding and maritime equipment, modern agricultural machinery, advanced medical devices and drugs, new materials, smart manufacturing and machine tools.

The aim is “to make China a powerful manufacturing country” and upgrade the nation’s industrial power through “the internet, big data and artificial intelligence”, the commission said.

To achieve that goal, the agency has laid out specific targets to develop key technologies and guide research and the flow of funds in each sector.

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But the dream of the nanofabricator is not yet dead. What is perhaps even more astonishing than the idea of having such a device—something that could create anything you want—is the potential consequences it could have for society. Suddenly, all you need is light and raw materials. Starvation ceases to be a problem. After all, what is food? Carbon, hydrogen, nitrogen, phosphorous, sulphur. Nothing that you won’t find with some dirt, some air, and maybe a little biomass thrown in for efficiency’s sake.

Equally, there’s no need to worry about not having medicine as long as you have the recipe and a nanofabricator. After all, the same elements I listed above could just as easily make insulin, paracetamol, and presumably the superior drugs of the future, too.

What the internet did for information—allowing it to be shared, transmitted, and replicated with ease, instantaneously—the nanofabricator would do for physical objects. Energy will be in plentiful supply from the sun; your Santa Clause machine will be able to create new solar panels and batteries to harness and store this energy whenever it needs to.

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The internet may be an international system of interconnecting networks sharing a rough global consensus about the technical details of communicating through them – but each country manages its own internet environment independently. As the U.S. debate about the role of government in overseeing and regulating the internet continues, it’s worth looking at how other countries handle the issue.

As the U.S. weakens its protections for internet users, it risks falling behind the rest of the world.

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Breakthrough research from The University of Texas at Arlington and The University of Vermont could lead to a dramatic reduction in the cost and energy consumption of high-speed internet connections.

Nonlinear-optical effects, such as intensity-dependent refractive index, can be used to process data thousands of times faster than what can be achieved electronically. Such processing has, until now, worked only for one optical beam at a time because the nonlinear-optical effects also cause unwanted inter-beam interaction, or crosstalk, when multiple light beams are present.

An article published in the prestigious Nature Communications journal, by the research group of Michael Vasilyev, an electrical engineering professor at UTA, in collaboration with Taras I. Lakoba, a mathematics professor at UVM, detailed an experimental demonstration of an optical medium in which multiple beams of light can autocorrect their own shapes without affecting one another.

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An experiment that created a 3.5 Mbps broadband internet connection won’t sound very impressive to most of us, especially since the average download speed in the US is about 75 megabits per second. But the surprising part is that it was established using a 6ft 7in piece of wet string.

While broadband connections tend to rely on wires made of materials such as copper, engineers at a small British internet service provider called Andrews and Arnold wanted to see if it was possible to send data through something less conventional.

They soaked the long piece of twine in a salt water as it’s a good conductor of electricity, though it had to be re-soaked every half an hour, and used a pair of alligator clips to establish the connection. “The upkeep of these wet string connections is very hard; in our tests, we had to continually re-wet the string approximately every 30 minutes to avoid a complete loss of sync, and this process was always disruptive to the signals,” wrote Adrian Kennard, the ISP’s director, in a blog post.

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Even as autonomous robots get better at doing things on their own, there will still be plenty of circumstances where humans might need to step in and take control. New software developed by Brown University computer scientists enables users to control robots remotely using virtual reality, which helps users to become immersed in a robot’s surroundings despite being miles away physically.

The software connects a robot’s arms and grippers as well as its onboard cameras and sensors to off-the-shelf virtual reality hardware via the internet. Using handheld controllers, users can control the position of the robot’s arms to perform intricate manipulation tasks just by moving their own arms. Users can step into the robot’s metal skin and get a first-person view of the environment, or can walk around the robot to survey the scene in the third person—whichever is easier for accomplishing the task at hand. The data transferred between the robot and the virtual reality unit is compact enough to be sent over the internet with minimal lag, making it possible for users to guide robots from great distances.

“We think this could be useful in any situation where we need some deft manipulation to be done, but where people shouldn’t be,” said David Whitney, a graduate student at Brown who co-led the development of the system. “Three examples we were thinking of specifically were in defusing bombs, working inside a damaged nuclear facility or operating the robotic arm on the International Space Station.”

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Scientists have developed new 3D-printed plastic objects that can hook up to Wi-Fi without the aid of any electronics or batteries, meaning household devices could get a lot smarter in the future without the need for any circuitry.

If that’s not blowing your mind just yet, think about this: the tech could be used to make a laundry bottle that orders a refill online as soon as it runs out, or a simple volume slider that connects to your speakers without any cabling or even a power source.

So how is this possible? To achieve this, a team from the University of Washington built a system comprising a plastic switch, spring, gear, and antenna, which when activated with a press or other movement can absorb or reflect passing Wi-Fi signals in order to communicate.

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