Matt Odell Profile picture
bitcoin, distributed systems, and privacy advocate ▫️ projects, resources, disclosures, and PGP key: https://t.co/9UwVzHnXiI ▫️ stay humble. stack sats.
12 Nov 19
You: Here's a multipage breakdown of all the hardware wallets currently on the market and their respective tradeoffs.

Me: Buy a coldcard.

At this point, the only reason to consider a bitcoin hardware wallet other than coldcard is if you are using both in a multisig setup.
Competition is good but when it comes to securing your precious sats nobody wants to use the second best. Shoutout to all you hardware manufacturers out there.

Do better.
Read 2 tweets
27 Sep 19
15/ Binance announced trx staking earlier today. They quickly became the largest validator and it's not even close...

Announcement: binance.com/en/support/art…

Data: tronscan.org/#/sr/represent…

h/t @bennd77 @Bitcoin_Vending ImageImage
16/ lol I’m going to stop adding to this thread soon I think it’s become pretty obvious that Proof of Stake validation will centralize among exchanges and other custodians 🤷‍♂️

Read 5 tweets
7 Mar 19
"please provide us with all the addresses you control and use"

Expect your country of residence to follow suit in the coming years. I'm surprised it took this long.

Be ready for when they do. Don't get caught off guard.
This is one of the main reasons @wasabiwallet and other user friendly privacy solutions are so important. Each person that discloses their addresses reduces the anonymity set of everyone else.

We need users to have plausible deniability before this becomes more widespread.
@wasabiwallet Yes, it will be hard to enforce, but they will do it on a case by case basis, and make examples of people.

It's a simple technique. Ask you to disclose your addresses, then catch you in a lie if you don't disclose a known address, then they throw the book at you. Be prepared.
Read 4 tweets
8 Jan 19
"Linzhi said it was “shocked” by the move, stating, “We reject arbitrary enforcement of rules, and request clear and equal guidelines to be established for all hardware makers.”

Linzhi just spent $4M designing their new ethash asic...

coindesk.com/ethereum-miner…
Read 2 tweets
27 Nov 18
re: ASICs > GPU

ASICs are inevitable. ASICs are your friend. Embrace them.

1. There is no such thing as an ASIC proof PoW algo. Given enough time and financial incentive someone will figure out a way to make a purpose built rig that outperforms GPUs.
2. The only practical way to keep ASICs off your network is to continuously manually change the algo, which bricks current ASICs, with the hope of discouraging future ASIC development. This comes with centralization & third party risk. Who decides when and how it changes?
3. ASICs enhance the loose game theory that backs bitcoin's security model. Attacks become much more expensive since the ASICs are useless after. GPUs can mine on other chains after an attack, ASICs cannot.
Read 8 tweets
30 Aug 18
One of the major conflict points in this space is that US based VCs & HFs are investing in quasi-legal(to put it lightly) projects & attempting to extract an ROI. That alone makes the project vulnerable. It means there are known actors which the US gov can go after.
Key characteristics that make a protocol or app more censorship resistant (anonymous/global devs, open source. lack of central control) go directly against the idea of US based VCs & founders being able to extract an ROI. They themselves are one of the main vulnerabilities.
So they really only have one option:
(1) Deny that they & their biz model are an attack vector.
(2) Move forward without permission & hope US gov doesn't crackdown.
(3) Lobby gov for a favorable result.
(4) Comply if forced.
(5) Hope to compete against distributed alternatives.
Read 4 tweets
15 Aug 18
18/ Spoke too soon, looks like they are moving ahead with the fork.

"As of today, all Nebulous (the company employing sia's core developers) and Obelisk employees are supportive of a fork," 

Really bad decision. Extremely shortsighted.

coindesk.com/coders-renew-e…
19/ "the Sia core team has decided to reset the Sia Proof-of-Work function to brick the Bitmain and Innosilicon hardware"

"Innosilicon is Sia’s largest miner, mining a stable 37.5% of the Sia hashrate."

Sia devs just shot themselves in the foot. 🤦‍♂️

blog.sia.tech/sia-proof-of-w…
20/ "We like to see high availability of hardware. Ideally, the best hardware in the world is available to everyone easily, and any deals that are presented by manufacturers to some group are also made available broadly."

This move will do the opposite.
Read 6 tweets
13 Aug 18
Couple of thoughts re: bitmain IPO.

(1)Bitmain will want to make their holdings look as impressive as possible, so they will probably try to pump bch (maybe the other alts too) before the IPO. They have been trying (and failing) to corner the market for the last year.
(2a) The added transparency for the IPO has put them in a vulnerable position. They are overexposed to bitcoin cash and now their competitors know. I have theorized in the past that the main reason bch hasn't been 51% attacked yet is due to fear of retaliation from bitmain.
(2b) So with that said, my thought now is bitmain's competitors have an extra incentive to attack the bitcoin cash chain to disrupt the IPO. On top of that, bitmain is probably less likely to retaliate given the extra attention the IPO brings.
Read 4 tweets
4 Jul 18
My take re: $SYS pump on Binance

1. Many Binance users were using a 3rd party trading bot w/ API access.
2. Bot was compromised.
3. Malicious actor set high SYS sell orders, then used compromised accounts to pump SYS price into them.
4. Same method used w/ $VIA in March.
So most likely neither binance or $SYS were hacked. It was the 3rd party trading bot, which was either an inside job or was compromised. My guess is inside job.

This is a risk users take when they trust a trading bot & its operator with access to their exchange funds/account.
Looks like binance is going to rollback the trades made with the compromised trading bot. They don't have to do this in my opinion, fault lies on the user. Binance & CZ should be applauded here on their user friendly response.

support.binance.com/hc/en-us/artic…
Read 4 tweets
23 Jun 18
In every other asset class, a buy and hold long term investment strategy is encouraged and considered conservative, with bitcoin critics frame it as reckless and irresponsible.

In practice, most people will lose a lot more money if they try to trade bitcoin short term.
Would I have preferred to sell the top & rebought at the bottom? Of course. I just know I wouldn't have been able to do that. Bitcoin has a ton of volatility, & if you try to time it you will most likely end up FOMO buying & panic selling. Not good for your wallet or your health.
Long term is a way less risky bet than trying to time these cycles. Bitcoin has a tiny float & a truly fixed supply, as adoption increases price should rise substantially. Furthermore, actively trading on exchanges exposes you to substantial risk, exchange failures & exit scams.
Read 7 tweets
16 Jun 18
EOS launch has been a complete joke, not surprised.

Classic Larimer, launch with bugs, shit incentives, and broken security assumptions.
Also, if this is true, it is absolutely hilarious. Talk about a stupid design decision.

Not only can you only get EOS by buying from an existing holder, b/c it's DPOS instead of PoW(where you can mine), but you need them to make a wallet for you. 🤦‍♂️

Oh yeah, and while we are at it. The network can confiscate your EOS if you don't make a transaction within 3 years. I'm sure they'll do a conference call before they take your money though, don't worry.

I honestly don't know where he comes up with half this shit.
Read 7 tweets
13 Jun 18
"The authors of the new 66-page paper do not have emails or documents that prove that Bitfinex knew about or was responsible for price manipulation...This method is not conclusive"

nytimes.com/2018/06/13/tec…
I've said this countless times before, the fact that Tether supply increased during market declines doesn't prove manipulation. That's exactly what should happen if Tether is working as designed.
Prices fall -> users sell for USDT -> USDT price increases as a result -> More Tether issued to bring price back down to $1 peg
Read 6 tweets
10 Jun 18
Wow. Tezos foundation is holding contributions hostage unless contributors submit to KYC/AML...

May be used to prevent US citizens from claiming their XTZ.

There was no KYC at the time of ICO(a year ago).

Wouldn't be surprised if this results in two chains at launch.
Interesting, looks like Tezos cofounder @ArthurB(murbard on reddit) is saying he isn't on board with the decision.

"Not my call."

reddit.com/r/tezos/commen…
I already questioned @ArthurB & @breitwoman's security assumptions with Tezos but this move will make their network even less secure. Every tezos holder at launch will have a passport registered with both the foundation & a third party company...
Read 7 tweets
12 Feb 18
While everyone is on the topic of mining using hydroelectric because of the recent WSJ piece, worth mentioning that's what the majority of China based mining ops have been using for years now. Excess hydro is insanely cheap.

#bitcoin $btc #cryptocurrency
2/ Source: en.wikipedia.org/wiki/List_of_c… which pulls most data from iea.org

Also, there's been a couple of articles highlighting Chinese mining ops that are relevant:

chinafile.com/multimedia/pho…

theweek.com/captured/71873…

aljazeera.com/indepth/inpict…

qz.com/1026605/photos…
3/ "The global "capital of bitcoin mining" is China's Sichuan province, thanks to its abundance of hydropower plants and some of the world's cheapest electricity. Bitcoin mines there can gross millions per year"
Read 11 tweets
26 Jan 18
1/ Part of the reason the 'hodl' philosophy came about was because we have learned not to trust exchanges. Trading requires trusting a third party, holding long term doesn't. Decentralized exchanges will help, but connections to fiat will always come with third party risk.
2/ Store your keys yourself. Hardware wallets are best for most, they make it really easy, are very secure, & support all the top chains. I recommend @TREZOR or @LedgerHQ.

Also, tails.boum.org built-in electrum is great tool for storing $btc.

3/ Simple guide for using tails.boum.org for $btc cold storage:

1. Download tails, install to usb
2. Disconnect computer from internet
3. Boot from tails, launch electrum
4. Write down seed on paper
5. Send $BTC to wallet address
6. Unplug USB
7. Destroy computer
Read 4 tweets
27 Nov 17
#Tether is/was:
- created to bypass KYC/AML laws & the banking blockade on exchanges that don't comply.
- a centralized stop-gap solution until connections to fiat are unneccesary.
- most likely holding reserves in an offshore bank account.

#bitcoin $btc
2/ @Tether_to cannot defend themselves b/c they risk gov't intervention. Making their bank account(s) public puts them at greater risk of being shut down & assets seized. They also can't acknowledge back room deals between the exchanges & them, that puts the exchanges at risk.
3/ The similarity between Tether & the online sportsbooks/casinos that have had to route around banking blockades for years is obvious. Both need to use sketchy banking practices to maintain their businesses or face government intervention.
Read 6 tweets
24 Jul 17
1/ Don't be scared of potential hard forks. They are a key component of #bitcoin's ability to upgrade through rough consensus/game theory.
2/ A healthy #Bitcoin network is one which will fork many times in its future. Forks can enable new ideas, market will value accordingly.
3/ Only reason we don't already have many #bitcoin forks (w/ different PoW) is b/c devs can make a lot more $$ starting a fresh chain. $btc
Read 14 tweets