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Jimmy Song (송재준)

10 Jan, 12 tweets, 5 min read

Proof of Stake is Useless and stories from the past week.

#Bitcoin Tech Talk #274

1/

Proof-of-stake has been bandied about as an alternative to proof-of-work, but from a CS perspective, it doesn't solve anything.

2/

The idea is that you get signers instead of computation to achieve consensus. The problem is that to get consensus in that environment, the signers have to know which is the "right" block to sign.

3/

Signing the "wrong" block usually has penalties, which involve losing some or all of the staked coins. But how do you decide what is the right one?

4/

This is where some form of centralization sneaks in. The "right" block is determined by someone or something and that's your central authority.

5/

As a result, it's not decentralized consensus, it doesn't solve the problem of decentralized coordination and is ultimately trading an objective observable standard for a subjective central authority.

6/

In other words, Proof-of-stake is a buzzword that has no substance behind it.

7/

@lopp

Bitcoin
@lopp does a 2021 #Bitcoin stats review
@Coinkite publishes an NFC standard
zensored explains the benefits of OP_CTV
@hrf announces 4.25 BTC in grants

8/

@FanisMichalakis

Lightning
aljazceru aggregates LN operation resources
@FanisMichalakis explains what anchor outputs are
@marcrjandrew reviews all the innovations on LN in 2021
@LightningEscrow has a new model for escrow

9/

@LynAldenContact

Econ, etc
@LynAldenContact explains Ponzis
@moxie shows how NFTs are centralized
@ARKInvest has a BTC valuation
Margot from @BitcoinMagazine talks progressivism
@level39 reviews @AlexGladstein's contributions

10/

This and much more in #Bitcoin Tech Talk #274

jimmysong.substack.com/p/proof-of-sta…

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More from @jimmysong

Jimmy Song (송재준)

@jimmysong

27 Dec 21

Jack Dorsey vs. the VCs and stories from this past week

#Bitcoin Tech Talk #272

1/10

@jack

@jack has pissed off a bunch of VCs by saying that Web3 is a scam. @a16z in particular tried very hard to convince him otherwise, but ended up frustrated that he held his ground.

2/10

VCs haven't gotten much criticism. Founders, Media and Gov't generally say positive things about them because they control the money.

3/10

Read 10 tweets

Jimmy Song (송재준)

@jimmysong

22 Nov 21

Taproot gives us more tools against practical security threats and #Bitcoin news from the past week.

A thread. 1/8

@lopp

As @lopp identifies, there are 5 primary security threat models against Bitcoin holders: Accidental loss, Digital theft, Government seizure, Physical theft and Inheritance planning. Taproot gives us tools against all of these. 2/8

Accidental loss - you can add recovery options for free, e.g. 2/5 of your friends' keys, none of whom know about each other.

Digital theft - because there are better recovery options with self-custody, people will self custody more and not leave them on exchanges. 3/8

Read 10 tweets

Jimmy Song (송재준)

@jimmysong

7 Jan 21

@NSKinsella

1/ Wow, what an essay, trying to distill thoughts from this masterpiece: cdn.mises.org/rae7_1_1_2.pdf

Hat tip: @NSKinsella

The essay is about inflation's effect on culture, through the analysis of a short story set in Weimar Germany. I've selected some quotes and will comment.

2/ "With all points of reference gone, the only law...appears to be perpetual change."

When money changes, everything else anchored on money starts to change as well. Prices being the most obvious one, but crucially, not the only one.

3/ "...if we seek an explanation for the dissolution of authority in the world he is portraying, we should look to the monetary madness of the Weimar Republic."

The insanity and disorder of society, in other words, can be traced back to monetary policy.

Read 12 tweets

Jimmy Song (송재준)

@jimmysong

11 Dec 20

@RussellOkung

1/6 Announcing a new book! Thank God for Bitcoin is available on Amazon in digital and paperback.

Forward written by our favorite NFL player @RussellOkung

This book makes the moral case for #Bitcoin from a Christian perspective.

amzn.to/3qQApLJ

2/6 The subtitle is "The Creation, Corruption and Redemption of Money" and speaks to money's purpose, how it's been corrupted over time and how Bitcoin redeems the corrupt nature of the current central-bank backed fiat monetary system

3/6 The main audience for this book is Christians, many of whom hold wildly biased notions of Bitcoin and makes the moral argument for Bitcoin. Not only is it a better, harder money, but it's a more moral money that's better aligned with building up civilization.

Read 6 tweets

Jimmy Song (송재준)

@jimmysong

15 Jul 19

Short rant about Quantum Computing breaking bitcoin:

1/ If you study even a little of it, you realize very quickly that the engineering challenges are enormous. Most attempts use temperatures a tiny fraction of a degree above absolute zero, not exactly easy to produce.

2/ What's more, the way quantum works is that you have lots of coherence problems and half-life problems. You need redundancy which adds enormous complexity to the system.

3/ Add to that the best quantum algorithms really only give you a square-root factor speed-up. So if it took 2^256 operations for a brute force attack, congrats, now you need to do 2^128 operations... on a quantum computer.

Read 7 tweets

Jimmy Song (송재준)

@jimmysong

8 May 19

1/ Back of the envelope math for doing a 58 block reorg (current confirmations for the tx that took money from binance):

Minimal cost: 58 * 12.5 btc = 725 BTC (assumes every miner would get roughly the same tx fees in the new chain and that 100% of miners go with this scheme)

2/ If 75% of the network going with this scheme, you would need on average 116 blocks to overtake the current chain, or about 1450 BTC worth of mining rewards.
At 60%, this becomes 290 blocks or 3625 BTC. At 55%, 580 blocks/7250 BTC.

3/ 7250 BTC > 7000 BTC, so at minimum, you need more than 55% of all hashing power to agree to reorg the chain. In 58 more blocks, this rises to 60%, in 116 blocks, 65%. In 174 blocks, 70%, 232 blocks/75%. The cost goes up pretty quickly assuming everyone agrees.

Read 7 tweets

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