Software designer with focus on user experience and security. Crypto-crypto anarchy bitcoin is not some crazy utopian ideology, but a very viable thing that unfolds in front of our eyes this very moment. But first, lets start with some history.
Cypherpunk movement started as a mailing list in 1992. It implies many changes in the way the world works. Private channels between parties who have never met and who never will meet are possible. Totally anonymous, unsinkable, untraceable communications and exchanges are possible. Transactions can only be voluntary, since the parties are untraceable and unknown and can withdraw at any time.
This has profound implications for the conventional approach of using the threat of force, directed against parties by governments or by others. In particular, threats of force will fail. Voluntary communications only, with no third parties butting in. I am fascinated by Tim May’s crypto-anarchy. It’s a community where the threat of violence is impotent because violence is impossible, and violence is impossible because its participants cannot be linked to their true names or physical locations. The RPOW scheme uses a secure processing module that simultaneously acts as a mint and as a custodian for the ledger of proof-of-work tokens.
In late 2008 Satoshi Nakamoto publishes an overview of Bitcoin and on January 3rd, 2009 releases the code and begins the blockchain. Bitcoin is the exact implementation of the system envisioned by Tim C. May, Wei Dai and Nick Szabo. The only requirement is for transacting parties to remain anonymous. If there’s no trace to physical persons, there is no place for the violent intervention and thus the contracts can only be enforced according to the voluntarily agreed-upon rules between the parties. Bitcoin allows encoding these rules right in the transactions so they are automatically enforced by the whole network.