Hugo Nguyen Profile picture
Founder @nunchuk_io. I chain, therefore I am ⛓️
HarshMell0w Profile picture Shaoping Profile picture 2 added to My Authors
May 12 6 tweets 2 min read
Stuff like this shows how insanely powerful evolutionary pressure is.

Same with money. Grokking Bitcoin is about respecting thousands of years of selection pressure: what kinds of objects ppl gravitate to for storing wealth, and what are the common denominators of those objects? PoW = emulating unforgeable costliness of gold
Fixed supply/ease of transport/verifiability/etc = humans’ evolved preference for these types of assets for storing & exchanging values

Physical AND social phenomena crystallized into code.
Apr 24 15 tweets 3 min read
The way a statechain takes raw UTXOs and mint them into standardized units (fixed-denomination UTXOs) is similar to turning raw gold into gold coins. The digital equivalence of coinage.

Absolute genius. Maybe, just maybe, the Lydian moment for Bitcoin. 1/ I think statechain’s true potential is a payment solution that rivals the Lightning Network, not a niche privacy tool. 2/
Apr 23 13 tweets 2 min read
Random thoughts on different L2 tech.

Sidechain is pretty much PoS (sans the penalty).

Aside from PoW, it’s interesting how the ratio 1/3 keeps reappearing in various distributed settings. It is like the number Pi, but for networking.

(Also a testament to Satoshi's genius.) 1/ The biggest downside of sidechain is the ultimate trust you must put in the federation. There is no failsafe (unless you count the multisig held by a subset of the federation as a failsafe).
Depending on whom you ask, 33% failure mode might not be a high enough bar for safety. 2/
Feb 13 4 tweets 1 min read
BT lack nuances in discussions. I personally dislike that Trezor promotes shitcoins to users/initially supported AOPP, but they've arguably been net good.
Otoh, Coldcard for a long time was the only option for a Bitcoin-only HWW. For that alone they earned perpetual karma points. In a climate infested with easy fiat money and scammy shitcoins, many Bitcoin companies have taken the easy but less ethical route, pumping-n-dumping on 3rd-world retail. But CC has always stood firm.

So massive respect for having principles / a backbone.
Dec 21, 2021 58 tweets 14 min read
Debunking Ethereum "Rollups"

Several Ethereum people commented that I was wrong about Rollups in my previous Ethereum thread.

This holiday, let’s have some fun and debunk them. 1/
Prior to Rollups, Ethereum had something called Plasma.

Plasma was hailed as THE solution to Ethereum’s scaling woes, but it died 2 years ago without much fanfare. @Cointelegraph had an article about it here. 2/
cointelegraph.com/news/did-ether…
Dec 11, 2021 9 tweets 3 min read
PoS is about trusting the richest stakeholders to enforce rules, with no other recourse.

PoW is about putting physics and math ABOVE humans to enforce rules.

PoW takes humans out of the decision-making loop and lessens the chance for corruption.

PoW is the innovation. The history of human progress has been one where humans gradually realizing their own shortcomings, taking themselves out of the equation, and letting the wonders of math, physics and engineering do the work.

Bitcoin PoW is no exception.

Less human intervention, not more.
Dec 8, 2021 40 tweets 7 min read
Proof-of-Work versus Proof-of-Stake redux

The difference between PoW and PoS becomes starkly clear once you understand these 2 things:

* PoS is a modified, weaker form of PoW
* Energy efficiency and conservation of energy

A thread. 1/ Abstract: The only way PoS-aka-modified-PoW could be seen as an improvement over pure-PoW is _if and only if_ SHA256 hashing, which is what actually happens when you mine Bitcoin, is inefficient when it comes to protecting the Bitcoin ledger. 2/
Dec 1, 2021 10 tweets 3 min read
Insightful article from @LynAldenContact. I love this question:

“[…] are there use-cases for a partially-centralized and partially-decentralized database?”

My answer is no. Because it’s a highly slippery slope. 1/

lynalden.com/proof-of-stake/ It is evidenced by the dilemma Ethereum faces when dealing with challengers.

You can’t claim “you’re not decentralized enough” when decentralization is a fuzzy metric, and especially when you don’t have a clear set of principles like Bitcoin. 2/
Nov 29, 2021 59 tweets 17 min read
Ethereum’s BS and intellectual dishonesty.

A thread. 1/ Some background: About 3 and 1/2 years ago I started looking into PoS systems and published a series of articles documenting my thoughts & findings. 2/

hugonguyen.medium.com/work-is-timele…
hugonguyen.medium.com/proof-of-stake…
hugonguyen.medium.com/proof-of-stake…
Jul 12, 2021 9 tweets 3 min read
Can MEV happen in PoW? Yes.

Will it be a big deal? No.

IMO the mistake with these doomsday analyses of PoW in the fees era is to assume non-adaptive behavior.

Simply waiting for more confs under PoW will give strong protection against reorgs (CZ-like scenario). Not so for PoS.
Jan 5, 2021 25 tweets 4 min read
A friend, who's a seasoned CFA analyst, cited Buffett's criticism of Bitcoin that it's a nonproductive asset and most successful Bitcoin investors were "lucky", i.e. investing based on sentiment not skill (like valuing stocks based on DCF).

Of course I need to play defense 🙂 1/ First of all, I’ve always been a fan of Buffett. Love his autobiography “Snowball” and I take his compounding interest lesson to heart. In investing and everything else in life: everything compounds. Knowledge, friendship, etc. 2/
Oct 31, 2020 32 tweets 8 min read
I just published Introducing Nunchuk: Multisig Made Easy link.medium.com/7uYBIDxk2ab (Bitcoin, year 11.)

Alice: This year sucks. You know what’s almost as bad as 2020?
Bob: Yeah?
Alice: Multisig is still scary.
Nunchuk: Hold my beer.

1/
Apr 12, 2020 6 tweets 2 min read
Why S2F has been misapplied in Bitcoin, in mathematical terms:

By using S2F and by restricting ‘flow’ to merely rewards, you are saying Bitcoin supply is an integral function (of changes in supply over time).

But asymptotically changes are zero. There’s nothing to integrate. Applying S2F to things that are not integrals in nature is a mistake. Math is useful only when it’s applied correctly to phenomenon. It’s mental masturbation otherwise.
Jan 28, 2019 15 tweets 3 min read
Last few words on @VladZamfir's poor piece of “work” (or is it propaganda?).

A 18-min rant to express what are some very simple ideas should be enough of a major red flag. But let me point out some tactics/fallacies. They are used elsewhere in this “space” too. Tactics/fallacies used:
(a) “Call black white, white black”
(b) Deflection
(c) Framing
(d) Ad Hominem
(e) Intentional Vagueness
Dec 31, 2018 32 tweets 6 min read
1/ People have asked me to elaborate on the “verification-not-computation” point. And why Ethereum has a flawed architecture from the get-go.

Thread. 👇

*Note: I use “blockchain systems” to refer to Bitcoin-like blockchains that are based on PoW. 2/ First of all, Greg Maxwell explained verification-not-computation concept so well already so I highly recommend reading his full post, linked in @TuurDemeester ’s thread here.
Sep 29, 2018 12 tweets 4 min read
1/ Emin again with the BS that PoW’s role is merely a “Sybil-controlled mechanism”. (And therefore PoS is a reasonable drop-in replacement.)

It’s the classic mistake domain experts make when analyzing systems purely from their Point-of-View. 2/ Here is Emin’s original “lecture” for reference

I seriously hope Emin is not the only one teaching blockchain at @Cornell. Because he is dead wrong.
Aug 27, 2018 11 tweets 3 min read
1/ Great article by @LaurentMT !

The TL;DR is that energy spent per block contributes not just to UTXOs belonging in that block, but retroactively to all global & past UTXOs.

The often-cited “energy spent per Bitcoin tx” number in many economic papers is flawed for this reason. 2/ Another way to put it is that Bitcoin transactions are secured by high stock-to-flow ratio.

I mentioned this recently in terms of mining hardware stock. But economic history is also another kind of stock.
Jun 7, 2018 20 tweets 3 min read
1/ Thread on variance.
PoW mining is critical to Bitcoin network security. Mining, in turn, is subject to 3 major sources of variance, from (roughly) easiest to tame to hardest:

i/ Finding blocks via SHA256 hashing
ii/ Market demand (for BTC & transactions)
iii/ Tech innovation 2/ Quick note: contrary to popular belief that miners are bad & evil, they are vital to Bitcoin’s survival. So it’s imperative to foster a healthy mining industry.
Apr 14, 2018 14 tweets 3 min read
1/ This is an interesting idea. Leaving aside the issue of whether this would actually stop the rise of altcoins, I doubt that in-protocol incentives for future development would be feasible. 2/ The reason Bitcoin’s incentive scheme works is that it’s actually pretty simple.

*Note: this does not imply that the Game Theory aspect of Bitcoin is simple. Complex dynamics could develop from very simple rules (e.g.: think of Go/Chess).
Mar 21, 2018 11 tweets 3 min read
1/ The fact that people still ask questions like this shows how not-well-understood Bitcoin still is. Bitcoin token has value because it directly represents the asset it tokenizes: an unforgeable, costly and decentralized ledger. (thx @NickSzabo4 for the lovely term). 2/ Bitcoin token-asset relationship is closed-loop. There’s a direct, self-enforceable linkage between the token & the asset. The token doesn’t reference any input outside of the BTC ecosystem.
Mar 13, 2018 19 tweets 5 min read
1/ Did you know, that the Vietnam war was a major contributor to the US going off the Gold Standard (aka the "Nixon shock"), which gave birth to the international fiat currencies system that we know today? 2/ The Vietnam war was a senseless war that killed 3 millions people & crippled a beautiful country (my motherland). The US dropped 8 million tons of bombs in Vietnam- which is 3 times *the total amount used by all forces* in WW2.