The original article appeared here: https://www.securities.io/what-is-blockchain-technology/ Its been almost ten years since Satoshi Nakamoto first introduced Blockchain technology to the world in his 2008 Bitcoin Whitepaper. Since that time, these revolutionary networks have gained popularity in both the corporate and governmental sectors. This growth is easily explained when you consider that blockchain technology provides the world with some unique advantages that were previously unimaginable. Consequently, today, you can find blockchain technology in nearly every sector of the global economy.
What is Blockchain Technology?
A blockchain is a network of computers that share a distributed ledger across all network participants (nodes). This strategy is far different than say, fiat currencies that originate from a centralized authority figure. Importantly, this ledger keeps an unbroken chain of transactions since the birth of the network. This “chain” of transactions grows larger as new “blocks” of transactions are approved and added to it. Bitcoin Whitepaper In order to approve new transactions, each node works together with others to validate new blocks. Additionally, the nodes also validate the current state of the entire blockchain. In order for a new block of transactions to be added to the blockchain, they must receive approval from 51% of the network’s nodes. Nodes are also referred to as miners. In this manner, blockchain networks are decentralized networks that provide unmatched security to the world of digital assets.
Security via Decentralization
Decentralization is an important aspect of blockchain technology because it makes these revolutionary ledgers immutable and unalterable. In fact, since there is no centralized attack vector, hacking a blockchain is nearly impossible. The larger the blockchain network, the more secure the data on it remains. For example, let’s look at the world’s largest blockchain, Bitcoin. Currently, the Bitcoin blockchain has over 10,000 active nodes located across the globe. This distribution means that in order for an attacker to alter even just one tiny piece of information on the blockchain, they would need to successfully hack 5,000+ computers at once. While this task may not be impossible for the quantum computers of the future, it’s so unprofitable that it makes no sense to even attempt such a monumental task. Additionally, on top of successfully hacking 5000+ computers at once, an attacker would also need a supercomputer to recalculate the new blockchain transactions in time to introduce them into the network. It would literally be more affordable to create a new cryptocurrency from scratch.
One of the reasons why blockchain networks are so secure is the integration of consensus mechanisms. Consensus mechanisms are cryptographic protocols that leverage the participants of a blockchain network in securing its data. In the case of Bitcoin, the Proof-of-Work (PoW) consensus mechanism is used.
The Proof-of-Work consensus mechanism was revolutionary to the world of cryptography when it was first introduced years prior by Adam Back in his Hashcash whitepaper. In the concept, Back describes the integration of a mathematical equation to the network’s security protocols. In this way, every computer can show “proof” of their work securing the network.
It’s important to understand that nodes receive a reward for their mining efforts. These rewards adjust automatically depending on the network’s difficulty and value. In the case of Bitcoin, miners originally received 50 Bitcoin for their efforts. Today, this seems like fortune, but back in 2009, Bitcoin was only worth pennies. As the value of the token rises and the network goes, the mining rewards shrink. Today, Bitcoin miners receive 6.5 BTC if they add the next block to the chain.
Notably, every node validates and secures the blockchain, but only one gets to add the next block of transactions to the network. To determine who the next miner is that gets to add this block, every computer competes in a mathematical race to figure out the PoW equation. In the case of Bitcoin, the equation is known as SHA-256. Importantly, the first SHA algorithm dates back to Hashcash. This early version of the equation was known as SHA-1. Notably, the SHA-256 equation is so difficult that it’s easier and more efficient for your computer to just make random guesses rather than attempting to figure out the equation directly. The answer to the equation must begin with a predetermined amount of 0s. In the Bitcoin blockchain, the equation’s answer must start with four zeros. However, if the network’s congestion rises, so does the difficulty of these equations. This difficulty adjusts by the addition of another zero at the beginning of the required SHA-256 answer. Similarly to traditional commodities such as gold, there are costs that are associated with the creation and introduction of these digital assets into the market. These random guesses utilize intense computational power. This power equates to real-world costs such as electricity bills. Studies have shown that securing the Bitcoin network can use more electricity than required by entire countries. Luckily, over 80% of Bitcoin’s power consumption comes from renewable sources such as solar or hydroelectric. This cost of mining also adds measurable value to each Bitcoin.
As Bitcoin began to gain in profitability, its network’s computing power expanded significantly. In the beginning, nodes, also known as miners, could mine for Bitcoin using nothing more than your home PC. Eventually, miners realized that graphic cards were far better at the repetitive guessing required to figure out the SHA-256 algorithm. This led to a computational race in the market.
Eventually, large blockchain firms such as Bitmain introduced Application Specific Integrated Circuit (ASIC) miners into the equation. These purpose-built miners were thousands of times more efficient at guessing the SHA-256 algorithm than the GPUs and CPUs before them. Consequently, their introduction created a scenario in which the average miner now needed to invest thousands in mining equipment to stay relevant.
Luckily, some creative minds in the field began to think of ways to level the playing field out again. They developed “mining pools.” A mining pool is a network of miners that all share computational power for the common goal of mining blockchain transactions. Importantly, mining pool participants receive a percentage of the reward based on their contributions to the network’s overall hash (computational power). Importantly, over the last three years, there has been a push to move away from power-hungry consensus mechanisms such as PoW. This desire to secure blockchains in a more efficient manner has led to the development of some truly unique consensus mechanisms in the sector.
The Proof-of-Stake mechanism does away with the difficult mathematical algorithms and instead utilizes a more psychological approach to securing the network. In a PoS blockchain, users don’t need to compete mathematically to add the next block to the blockchain. Instead, PoS users “stake” their coins via network wallets to secure the network. The way staking works is simple. Keeping a certain amount of coins in your wallet allows you to participate in transaction validations. The more coins you stake, the more likely the chances are you get to add the next block of transactions to the network. In most PoS systems, a miner from those with the most tokens staked at the time receives the chance to add the blocks. The advantages of a PoS consensus mechanism are immediately evident. For one, you don’t need to pour tons of resources into your network to keep it safe. Additionally, since nodes are chosen based on their amount of staked coins, there is never a scenario in which a node gains anything from validating incorrect transactions. Basically, a hacker would have to fully invest in the cryptocurrency prior to attacking the network. In this way, PoS systems create a huge deterrent to attackers.
The Future of Blockchain Technology
Blockchain technology has come a long way from its early days as a means to secure cryptocurrency networks. Today, blockchain technology has numerous uses across every type of industry imaginable. Specifically, blockchain programs have impacted the logistical, financial, and data security sectors in a major way.
Blockchain Technology Logistics
Blockchain logistical systems are more efficient and cost-effective to operate than traditional paper-based models. In fact, the immutable and unalterable nature of blockchain tech makes it ideally suited to logistical tasks. Soon, you may be able to ascertain much more information regarding the creation and delivery of your products thanks to these new-age systems emerging.
Blockchain technology has also altered the way in which businesses raise funds. In a traditional corporate crowdfunding strategy such as an IPO, companies must balance between cost-effectiveness and participation. The inability to process smaller transactions meant that for the longest time, companies had to turn away potential investors. Nowadays, blockchain technology enables businesses to easily automate these procedures via smart contracts.
Smart Contracts feature preprogrammed protocols that execute when they receive a certain amount of cryptocurrency sent to their address. These contracts live on the blockchain and enable remarkable functionality. For example, in the case of fundraising, a smart contract can automate processes such as the approval of investors and the distribution of funds.
Blockchain Technology Today
You can expect to see further expansion of the blockchain sector in the coming months as more governments and institutions explore its benefits. For now, the blockchain revolution is well underway.
Final version 1.3.0 of the core software was released bringing all the enhancements reported last month to the rest of the community. The groundwork for SPV (simplified payment verification) is complete, another reduction of fees is being deployed, and performance stepped up once again with a 50% reduction in startup time, 20% increased sync speed and more than 3x faster peer delivery of block headers (a key update for SPV). Decrediton's integrations of SPV and Politeia are open for testing by experienced users. Read the full release notes and get the downloads on GitHub. As always, don't forget to verify signatures. dcrd: completed several steps towards multipeer downloads, improved introduction to the software in the main README, continued porting cleanups and refactoring from upstream btcd. Currently in review are initial release of smart fee estimator and a change to UTXO set semantics. The latter is a large and important change that provides simpler handling, and resolves various issues with the previous approach. A lot of testing and careful review is needed so help is welcome. Educational series for new Decred developers by @matheusd added two episodes: 02 Simnet Setup shows how to automate simnet management with tmux and 03 Miner Reward Invalidation explains block validity rules. Finally, a pull request template with a list of checks was added to help guide the contributors to dcrd. dcrwallet: bugfixes and RPC improvements to support desktop and mobile wallets. Developers are welcome to comment on this idea to derive stakepool keys from the HD wallet seed. This would eliminate the need to backup and restore redeem scripts, thus greatly improving wallet UX. (missed in July issue) Decrediton: bugfixes, refactoring to make the sync process more robust, new loading animations, design polishing. Politeia: multiple improvements to the CLI client (security conscious users with more funds at risk might prefer CLI) and security hardening. A feature to deprecate or timeout proposals was identified as necessary for initial release and the work started. A privacy enhancement to not leak metadata of ticket holders was merged. Android: update from @collins: "Second test release for dcrandroid is out. Major bugs have been fixed since last test. Latest code from SPV sync has been integrated. Once again, bug reports are welcome and issues can be opened on GitHub". Ask in #dev room for the APK to join testing. A new security page was added that allows one to validate addresses and to sign/verify messages, similar to Decrediton's Security Center. Work on translations is beginning. Overall the app is quite stable and accepting more testers. Next milestone is getting the test app on the app store. iOS: the app started accepting testers last week. @macsleven: "the test version of Decred Wallet for iOS is available, we have a link for installing the app but the builds currently require your UDID. Contact either @macsleven or @raedah with your UDID if you would like to help test.". Nearest goal is to make the app crash free. Both mobile apps received new design themes. dcrdata: v3.0 was released for mainnet! Highlights: charts, "merged debits" view, agendas page, Insight API support, side chain tracking, Go 1.11 support with module builds, numerous backend improvements. Full release notes here. This release featured 9 contributors and development lead @chappjc noted: "This collaboration with @raedahgroup on our own block explorer and web API for @decredproject has been super productive.". Up next is supporting dynamic page widths site wide and deploying new visual blocks home page. Trezor: proof of concept implementation for Trezor Model T firmware is in the works (previous work was for Model One). Ticket splitting: updated to use Go modules and added simnet support, several fixes. docs: beginner's guide overhaul, multiple fixes and cleanups. decred.org: added 3rd party wallets, removed inactive PoW pools and removed web wallet. @Richard-Red is building a curated list of Decred-related GitHub repositories. Welcome to new people contributing for the first time: @klebe, @s_ben, @victorguedes, and PrimeDominus! Dev activity stats for September: 219 active PRs, 197 commits, 28.7k added and 18.8k deleted lines spread across 6 repositories. Contributions came from 4-10 developers per repository. (chart)
Hashrate: started and ended the month around 75 PH/s, hitting a low of 60.5 and a new high of 110 PH/s. BeePool is again the leader with their share varying between 23-54%, followed by F2Pool 13-30%, Coinmine 4-6% and Luxor 3-5%. As in previous months, there were multiple spikes of unidentified hashrate. Staking: 30-day average ticket price is 98 DCR (+2.4). The price varied between 95.7 and 101.9 DCR. Locked DCR amount was 3.86-3.96 million DCR, or 45.7-46.5% of the supply. Nodes: there are 201 public listening nodes and 325 normal nodes per dcred.eu. Version distribution: 5% are v1.4.0(pre) dev builds (+3%), 30% on v1.3.0 (+25%), 42% on v1.2.0 (-20%), 15% on v1.1.2 (-7%), 6% on v1.1.0. More than 76% of nodes run v1.2.0 and higher and therefore support client filters. Data as of Oct 1.
Obelisk posted two updates on their mailing list. 70% of Batch 1 units are shipped, an extensive user guide is available, Obelisk Scanner application was released that allows one to automatically update firmware. First firmware update was released and bumped SC1 hashrate by 10-20%, added new pools and fixed multiple bugs. Next update will focus on DCR1. It is worth a special mention that the firmware source code is now open! Let us hope more manufacturers will follow this example. A few details about Whatsminer surfaced this month. The manufacturer is MicroBT, also known as Bitwei and commonly misspelled as Bitewei. Pangolinminer is a reseller, and the model name is Whatsminer D1. Bitmain has finally entered Decred ASIC space with their Antminer DR3. Hash rate is 7.8 TH/s while pulling 1410 W, at the price of $673. These specs mean it has the best GH/W and GH/USD of currently sold miners until the Whatsminer or others come out, although its GH/USD of 11.6 already competes with Whatsminer's 10.5. Discussed on Reddit and bitcointalk, unboxing video here.
@matheusd started tests on testnet several months ago. I contacted him so we could integrate with the pool in June this year. We set up the machine in July and bought the first split ticket on mainnet, using the decredbrasil pool, on July 19. It was voted on July 30. After this first vote on mainnet, we opened the tests to selected users (with more technical background) on the pool. In August we opened the tests to everyone, and would call people who want to join to the #ticket_splitting channel, or to our own Slack (in Portuguese, so mostly Brazilian users). We have 28 split tickets already voted, and 16 are live. So little more than 40 split tickets total were bought on decredbrasil pool. (@girino in #pos-voting)
KuCoin exchange listed DCBTC and DCETH pairs. To celebrate their anniversary they had a 99% trading fees discount on DCR pairs for 2 weeks. Three more wallets integrated Decred in September:
Atomic desktop wallet added Decred in version 0.1.31. The team answered many questions on Reddit.
AnyBit wallet added Decred. It features built-in price and news tracking. Notably, the source code is open for their Android and iOS wallets.
Coboadded Decred support into their Android and iOS wallets.
ChangeNow announced Decred addition to their Android app that allows accountless swaps between 150+ assets. Coinbase launched informational asset pages for top 50 coins by market cap, including Decred. First the pages started showing in the Coinbase app for a small group of testers, and later the web price dashboard went live.
The birth of a Brazilian girl was registered on the Decred blockchain using OriginalMy, a blockchain proof of authenticity services provider. Read the full story in Portuguese and in English.
Advertising report for September is ready. Next month the graphics for all the ads will be changing.
Marketing might seem quiet right now, but a ton is actually going on behind the scenes to put the right foundation in place for the future. Discovery data are being analyzed to generate a positioning strategy, as well as a messaging hierarchy that can guide how to talk about Decred. This will all be agreed upon via consensus of the community in the work channels, and materials will be distributed. Next, work is being done to identify the right PR partner to help with media relations, media training, and coordination at events. While all of this is coming up to speed, we believe the website needs a refresher reflecting the soon to be agreed upon messaging, plus a more intuitive architecture to make it easier to navigate. (@Dustorf)
Raedah Group went on the streets of Portland, USA with a pretty blue tent. (photos)
Meetup at Binzantin Cafe in Taipei, Taiwan. @morphymore: "There were 20-ish attendees, and about half of them have joined the Chinese FB group. Most of them don't hear about Decred before, but have expressed the interest in learning more about it after the event. Overall, it's a good exposure for Decred in the Taiwan community.". A report with photos was posted on Facebook, more photos are here and here.
@joshuam made a Decred Jacket appearance at Singapore Grand Prix. (photos)
NewTech PDX meetup in Portland, USA. Raedah Group presented Decred and reported "lots of new converts". (photos)
North Shore Bitcoin & Blockchain in Glenview, USA. @dustorf gave a five minute overview of Decred and noted: "There were only about 25 people, but about 1/3 of them were aware of Decred prior. (...) Our simple presence and explanation of the project moved opinion from 'another shitcoin they sold after mining' to 'an interesting and viable project worthy of further investigation'.". (photos: 12)
Bitcoin Meetup CDMX in Mexico City on Oct 6. @elian will be talking about Decred at the oldest Bitcoin meetup in Mexico.
SF Blockchain Week in San Francisco, USA on Oct 9. @lukebp will discuss DPoS vs PoS on a panel 9:30a-10:15a at the Titans of Tech Stage, Hilton Union Square.
Decred Meetup in Casablanca, Morocco on Oct 27. @butterfly will host the event and talk about Decred in French.
Texas Bitcoin Conference Austin, USA on Oct 27-28. @BAB: "The great thing about this is that it will also be a Decred Summit. We will have half of the conference dedicated to Decred topics, updates, etc."
Websummit in Lisbon, Portugal on Nov 5-8. @moo31337 will be on a panel discussing "2018: A Rollercoaster Year for Cryptocurrencies"
We'll begin shortly reviewing conferences and events planned for the first half of 2019. Highlights are sure to include The North American Bitcoin Conference in Miami (Jan 16-18) and Consensus in NYC (May 14-16). If you have suggestions of events or conferences Decred should attend, please share them in #event_planning. In 2019, we would like to expand our presence in Europe, Asia, and South America, and we're looking for community members to help identify and staff those events. (@Dustorf)
August issue of Decred Journal was translated to Russian. Many thanks to @DZ! Rency cryptocurrency ratings published a report on Decred and incorporated a lot of feedback from the community on Reddit. September issue of Chinese CCID ratings was published (snapshot), Decred is still at the bottom. Videos:
The underbelly of blockchain Governance - fiat licensing and our code with Marco Peerboom and Chris DeRose (youtube, tweet, decred, missed in August issue) Insightful dialogue about men's underwear, licenses, subtleties of GPL, BSD wars, tiling window managers and much more.
Introduction to Decred (Korean, youtube) @Killawhale collected a lot of feedback from the community and produced this video to spread the word in Korea.
Perspectives on Governance from Nathan Wilcox, Jonathan Zeppettini, Vitalik Buterin (z.cash)
Decred - an example of governance (Portuguese, youtube)
Decred, the crypto that wants to compete with Bitcoin (French, youtube)
Exodus.io Live with Marco from Decred! (youtube) Marco joins Exodus.io to discuss what makes DCR an asset that will stand the test of time.
Building Decred With Systems Development Lead Marco Peereboom - Governance, Politeia, Lightning (youtube) Topics: early days, Politeia, the structure of Decred, dcrtime, Lightning Network, attracting users and developers, future plans (DEX, Schnorr signatures, privacy, DAEs).
Decentralized autonomous funding of blockchain projects by @Richard-Red (medium, discussion on decred and dashpay)
The trouble with infrastructure, "thin" protocols in particular, is that someone has to build them at a cost. e.g. LN takes a ton of work, doesn't necessarily generate value itself, but it magnifies the value of BTC or whatever coin that uses it. I see the DEX in a similar light - whoever creates it is not going to make a bunch of money from it, but it will magnify the value of the underlying asset(s) that end up having a deep order book on the DEX. (@jy-p in #dex)
Twitter: why decentralized governance and funding are necessary for network survival and the power of controlling the narrative; learning about governance more broadly by watching its evolution in cryptocurrency space, importance of community consensus and communications infrastructure. Reddit: yet another strong pitch by @solar; question about buyer protections; dcrtime internals; a proposal to sponsor hoodies in the University of Cape Town; Lightning Network support for altcoins. Chats: skills to operate a stakepool; voting details: 2 of 3 votes can approve a block, what votes really approve are regular tx, etc; scriptless script atomic swaps using Schnorr adaptor signatures; dev dashboard, choosing work, people do best when working on what interests them most; opportunities for governments and enterprise for anchoring legal data to blockchain; terminology: DAO vs DAE; human-friendly payments, sharing xpub vs payment protocols; funding btcsuite development; Politeia vote types: approval vote, sentiment vote and a defund vote, also linking proposals and financial statements; algo trading and programming languages (yes, on #trading!); alternative implementation, C/C++/Go/Rust; HFTs, algo trading, fake volume and slippage; offline wallets, usb/write-only media/optical scanners vs auditing traffic between dcrd and dcrwallet; Proof of Activity did not inspire Decred but spurred Decred to get moving, Wikipedia page hurdles; how stakeholders could veto blocks; how many votes are needed to approve a proposal; why Decrediton uses Electron; CVE-2018-17144 and over-dependence on single Bitcoin implementation, btcsuite, fuzz testing; tracking proposal progress after voting and funding; why the wallet does not store the seed at all; power connectors, electricity, wiring and fire safety; reasonable spendings from project fund; ways to measure sync progress better than block height; using Politeia without email address; concurrency in Go, locks vs channels. #support is not often mentioned, but it must be noted that every day on this channel people get high quality support. (@bee: To my surprise, even those poor souls running Windows 10. My greatest respect to the support team!)
In September DCR was trading in the range of USD 34-45 / BTC 0.0054-0.0063. On Sep 6, DCR revisited the bottom of USD 34 / BTC 0.0054 when BTC quickly dropped from USD 7,300 to 6,400. On Sep 14, a small price rise coincided with both the start of KuCoin trading and hashrate spike to 104 PH/s. Looking at coinmarketcap charts, the trading volume is a bit lower than in July and August. As of Oct 4, Decred is #18 by the number of daily transactions with 3,200 tx, and #9 by the USD value of daily issuance with $230k. (source: onchainfx) Interesting observation by @ImacallyouJawdy: while we sit at 2018 price lows the amount locked in tickets is testing 2018 high.
ASIC for Lyra2REv2 was spotted on the web. Vertcoin team is preparing a new PoW algorithm. This would be the 3rd fork after two previous forks to change the algorithm in 2014 and 2015. A report titled The Positive Externalities of Bitcoin Mining discusses the benefits of PoW mining that are often overlooked by the critics of its energy use. A Brief Study of Cryptonetwork Forks by Alex Evans of Placeholder studies the behavior of users, developers and miners after the fork, and makes the cases that it is hard for child chains to attract users and developers from their parent chains. New research on private atomic swaps: the paper "Anonymous Atomic Swaps Using Homomorphic Hashing" attempts to break the public link between two transactions. (bitcointalk, decred) On Sep 18 Poloniex announced delisting of 8 more assets. That day they took a 12-80% dive showing their dependence on this one exchange. Circle introduced USDC markets on Poloniex: "USDC is a fully collateralized US dollar stablecoin using the ERC-20 standard that provides detailed financial and operational transparency, operates within the regulated framework of US money transmission laws, and is reinforced by established banking partners and auditors.". Coinbase announced new asset listing process and is accepting submissions on their listing portal. (decred) The New York State Office of the Attorney General posted a study of 13 exchanges that contains many insights. A critical vulnerability was discovered and fixed in Bitcoin Core. Few days later a full disclosure was posted revealing the severity of the bug. In a bitcointalk thread btcd was called 'amateur' despite not being vulnerable, and some Core developers voiced their concerns about multiple implementations. The Bitcoin Unlimited developer who found the bug shared his perspective in a blog post. Decred's vision so far is that more full node implementations is a strength, just like for any Internet protocol.
About This Issue
This is the 6th issue of Decred Journal. It is mirrored on GitHub, Medium and Reddit. Past issues are available here. Most information from third parties is relayed directly from source after a minimal sanity check. The authors of Decred Journal have no ability to verify all claims. Please beware of scams and do your own research. Feedback is appreciated: please comment on Reddit, GitHub or #writers_room on Matrix or Slack. Contributions are also welcome: some areas are adding content, pre-release review or translations to other languages. Credits (Slack names, alphabetical order): bee, Dustorf, jz, Haon, oregonisaac, raedah and Richard-Red.
World History Timeline of Events Leading up to Bitcoin - In the Making
A (live/editable) timeline of historical events directly or indirectly related to the creation of Bitcoin and Cryptocurrencies *still workin' on this so check back later and more will be added, if you have any suggested dates/events feel free to lemme know... This timeline includes dates pertaining to:
Forms of money
Widely accepted economic systems
Widely accepted forms of government
Inventions which advanced FinTech
Inventions in computer science and related technology
Inventions which connected the world via transportation, communication and information
Development of cryptography and cyberwar
Notable Social Movements
Hyperinflation and National Debts
Ancient Bartering – first recorded in Egypt (resources, services...) – doesn’t scale Tally sticks were used, making notches in bones or wood, as a form of money of account 9000-6000 BC Livestock considered the first form of currency c3200 BC Clay tablets used in Uruk (Iraq) for accounting (believed to be the earliest form of writing) 3000 BC Grain is used as a currency, measured out in Shekels 3000 BC Banking developed in Mesopotamia 3000 BC? Punches used to stamp symbols on coins were a precursor to the printing press and modern coins ? BC Since ancient Persia and all the way up until the invention and expansion of the telegraph Homing Pigeons were used to carry messages 2000 BC Merchants in Assyria, India and Sumeria lent grain to farmers and traders as a precursor to banks 1700 BC In Babylon at the time of Hammurabi, in the 18th century BC, there are records of loans made by the priests of the temple. 1200 BC Shell money first used in China 1000-600 BC Crude metal coins first appear in China 640 BC Precious metal coins – Gold & Silver first used in ancient Lydia and coastal Greek cities featuring face to face heads of a bull and a lion – first official minted currency made from electrum, a mixture of gold and silver 600-500 BC Atbash Cipher A substitution Cipher used by ancient Hebrew scholars mapping the alphabet in reverse, for example, in English an A would be a Z, B a Y etc. 400 BC Skytale used by Sparta 474 BC Hundreds of gold coins from this era were discovered in Rome in 2018 350 BC Greek hydraulic semaphore system, an optical communication system developed by Aeneas Tacticus. c200 BC Polybius Square ??? Wealthy stored coins in temples, where priests also lent them out ??? Rome was the first to create banking institutions apart from temples 118 BC First banknote in the form of 1 foot sq pieces of white deerskin 100-1 AD Caesar Cipher 193 Aureus, a gold coin of ancient Rome, minted by Septimius Severus 324 Solidus, pure gold coin, minted under Constantine’s rule, lasted until the late 8th century 600s Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty, 960–1279 c757–796 Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa 806 First paper banknotes used in China but isn’t widely accepted in China until 960 1024 The first series of standard government notes were issued in 1024 with denominations like 1 guàn (貫, or 700 wén), 1 mín (緡, or 1000 wén), up to 10 guàn. In 1039 only banknotes of 5 guàn and 10 guàn were issued, and in 1068 a denomination of 1 guàn was introduced which became forty percent of all circulating Jiaozi banknotes. 1040 The first movable type printer was invented in China and made of porcelain ? Some of the earliest forms of long distance communication were drums used by Native Africans and smoke signals used by Native Americans and Chinese 1088 Movable type in Song Dynasty China 1120 By the 1120s the central government officially stepped in and produced their own state-issued paper money (using woodblock printing) 1150 The Knights Templar issued bank notes to pilgrims. Pilgrims deposited their valuables with a local Templar preceptory before embarking, received a document indicating the value of their deposit, then used that document upon arrival in the Holy Land to retrieve their funds in an amount of treasure of equal value. 1200s-1300s During the 13th century bankers from north Italy, collectively known as Lombards, gradually replace the Jews in their traditional role as money-lenders to the rich and powerful. – Florence, Venice and Genoa - The Bardi and Peruzzi Families dominated banking in 14th century Florence, establishing branches in many other parts of Europe 1200 By the time Marco Polo visited China they’d move from coins to paper money, who introduced the concept to Europe. An inscription warned, "All counterfeiters will be decapitated." Before the use of paper, the Chinese used coins that were circular, with a rectangular hole in the middle. Several coins could be strung together on a rope. Merchants in China, if they became rich enough, found that their strings of coins were too heavy to carry around easily. To solve this problem, coins were often left with a trustworthy person, and the merchant was given a slip of paper recording how much money they had with that person. Marco Polo's account of paper money during the Yuan Dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country." 1252 Florin minted in Florence, becomes the hard currency of its day helping Florence thrive economically 1340 Double-entry bookkeeping - The clerk keeping the accounts for the Genoese firm of Massari painstakingly fills in the ledger for the year 1340. 1397 Medici Bank established 1450 Johannes Gutenberg builds the printing press – printed words no longer just for the rich 1455 Paper money disappears from China 1466 Polyalphabetic Cipher 1466 Rotating cipher disks – Vatican – greatest crypto invention in 1000 yrs – the first system to challenge frequency analysis 1466 First known mechanical cipher machine 1472 The oldest bank still in existence founded, Banca Monte dei Paschi di Siena, headquartered in Siena, Italy 1494 Double-entry bookkeeping system codified by Luca Pacioli 1535 Wampum, a form of currency used by Native Americans, a string of beads made from clamshells, is first document. 1553 Vigenere Cipher 1557 Phillip II of Spain managed to burden his kingdom with so much debt (as the result of several pointless wars) that he caused the world's first national bankruptcy — as well as the world's second, third and fourth, in rapid succession. 1577 Newspaper in Korea 1586 The Babington Plot 1590 Cabinet Noir was established in France. Its mission was to open, read and reseal letters, and great expertise was developed in the restoration of broken seals. In the knowledge that mail was being opened, correspondents began to develop systems to encrypt and decrypt their letters. The breaking of these codes gave birth to modern systematic scientific code breaking. 1600s Promissory banknotes began in London 1600s By the early 17th century banking begins also to exist in its modern sense - as a commercial service for customers rather than kings. – Late 17th century we see cheques slowly gains acceptance The total of the money left on deposit by a bank's customers is a large sum, only a fraction of which is usually required for withdrawals. A proportion of the rest can be lent out at interest, bringing profit to the bank. When the customers later come to realize this hidden value of their unused funds, the bank's profit becomes the difference between the rates of interest paid to depositors and demanded from debtors. The transformation from moneylenders into private banks is a gradual one during the 17th and 18th centuries. In England it is achieved by various families of goldsmiths who early in the period accept money on deposit purely for safe-keeping. Then they begin to lend some of it out. Finally, by the 18th century, they make banking their business in place of their original craft as goldsmiths. 1605 Newspaper in Straussburg c1627 Great Cipher 1637 Wampum is declared as legal tender in the U.S. (where we got the slang word “clams” for money) 1656 Johan Palmstruch establishes the Stockholm Banco 1661 Paper Currency reappears in Europe, soon became common - The goldsmith-bankers of London began to give out the receipts as payable to the bearer of the document rather than the original depositor 1661 Palmstruch issues credit notes which can be exchanged, on presentation to his bank, for a stated number of silver coins 1666 Stockholms Banco, the predecessor to the Central Bank of Sweden issues the first paper money in Europe. Soon went bankrupt for printing too much money. 1667 He issues more notes than his bank can afford to redeem with silver and winds up in disgrace, facing a death penalty (commuted to imprisonment) for fraud. 1668 Bank of Sweden – today the 2nd oldest surviving bank 1694 First Central Bank established in the UK was the first bank to initiate the permanent issue of banknotes Served as model for most modern central banks. The modern banknote rests on the assumption that money is determined by a social and legal consensus. A gold coin's value is simply a reflection of the supply and demand mechanism of a society exchanging goods in a free market, as opposed to stemming from any intrinsic property of the metal. By the late 17th century, this new conceptual outlook helped to stimulate the issue of banknotes. 1700s Throughout the commercially energetic 18th century there are frequent further experiments with bank notes - deriving from a recognized need to expand the currency supply beyond the availability of precious metals. 1710 Physiocracy 1712 First commercial steam engine 1717 Master of the Royal Mint Sir Isaac Newton established a new mint ratio between silver and gold that had the effect of driving silver out of circulation (bimetalism) and putting Britain on a gold standard. 1735 Classical Economics – markets regulate themselves when free of intervention 1744 Mayer Amschel Rothschild, Founder of the Rothschild Banking Empire, is Born in Frankfurt, Germany Mayer Amschel Rothschild extended his banking empire across Europe by carefully placing his five sons in key positions. They set up banks in Frankfurt, Vienna, London, Naples, and Paris. By the mid 1800’s they dominated the banking industry, lending to governments around the world and people such as the Vanderbilts, Carnegies, and Cecil Rhodes. 1745 There was a gradual move toward the issuance of fixed denomination notes in England standardized printed notes ranging from £20 to £1,000 were being printed. 1748 First recorded use of the word buck for a dollar, stemming from the Colonial period in America when buck skins were commonly traded 1757 Colonial Scrip Issued in US 1760s Mayer Amschel Rothschild establishes his banking business 1769 First steam powered car 1775-1938 US Diplomatic Codes & Ciphers by Ralph E Weber used – problems were security and distribution 1776 American Independence 1776 Adam Smith’s Invisible Hand theory helped bankers and money-lenders limit government interference in the banking sector 1781 The Bank of North America was a private bank first adopted created the US Nation's first de facto central bank. When shares in the bank were sold to the public, the Bank of North America became the country's first initial public offering. It lasted less than ten years. 1783 First steamboat 1791 Congress Creates the First US Bank – A Private Company, Partly Owned by Foreigners – to Handle the Financial Needs of the New Central Government. First Bank of the United States, a National bank, chartered for a term of twenty years, it was not renewed in 1811. Previously, the 13 states had their own banks, currencies and financial institutions, which had an average lifespan of about 5 years. 1792 First optical telegraph invented where towers with telescopes were dispersed across France 12-25 km apart, relaying signals according to positions of arms extended from the top of the towers. 1795 Thomas Jefferson invents the Jefferson Disk Cipher or Wheel Cipher 1797 to 1821 Restriction Period by England of trading banknotes for silver during Napoleonic Wars 1797 Currency Crisis Although the Bank was originally a private institution, by the end of the 18th century it was increasingly being regarded as a public authority with civic responsibility toward the upkeep of a healthy financial system. 1799 First paper machine 1800 Banque de France – France’s central bank opens to try to improve financing of the war 1800 Invention of the battery 1801 Rotchschild Dynasty begins in Frankfurt, Holy Roman Empire – established international banking family through his 5 sons who established themselves in London, Paris, Frankfurt, Vienna, and Naples 1804 Steam locomotive 1807 Internal combustion engine and automobile 1807 Robert Fulton expands water transportation and trade with the workable steamboat. 1809 Telegraphy 1811 First powered printing press, also first to use a cylinder 1816 The Privately Owned Second Bank of the US was Chartered – It Served as the Main Depository for Government Revenue, Making it a Highly Profitable Bank – charter not renewed in 1836 1816 The first working telegraph was built using static electricity 1816 Gold becomes the official standard of value in England 1820 Industrial Revolution c1820 Neoclassical Economics 1821 British gov introduces the gold standard - With governments issuing the bank notes, the inherent danger is no longer bankruptcy but inflation. 1822 Charles Babbage, considered the "father of the computer", begins building the first programmable mechanical computer. 1832 Andrew Jackson Campaigns Against the 2nd Bank of the US and Vetoes Bank Charter Renewal Andrew Jackson was skeptical of the central banking system and believed it gave too few men too much power and caused inflation. He was also a proponent of gold and silver and an outspoken opponent of the 2nd National Bank. The Charter expired in 1836. 1833 President Jackson Issues Executive Order to Stop Depositing Government Funds Into Bank of US By September 1833, government funds were being deposited into state chartered banks. 1833-1837 Manufactured “boom” created by central bankers – money supply Increases 84%, Spurred by the 2nd Bank of the US The total money supply rose from $150 million to $267 million 1835 Jackson Escapes Assassination. Assassin misfired twice. 1837-1862 The “Free Banking Era” there was no formal central bank in the US, and banks issued their own notes again 1838 First Telegram sent using Morse Code across 3 km, in 1844 he sent a message across 71 km from Washington DC to Baltimore. 1843 Ada Lovelace published the first algorithm for computing 1844 Modern central bank of England established - meaning only the central bank of England could issue banknotes – prior to that commercial banks could issue their own and were the primary form of currency throughout England the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt. 1848 Communist Manifesto 1850 The first undersea telegraphic communications cable connected France in England after latex produced from the sap of the Palaquium gutta tree in 1845 was proposed as insulation for the underwater cables. 1852 Many countries in Europe build telegram networks, however post remained the primary means of communication to distant countries. 1855 In England fully printed notes that did not require the name of the payee and the cashier's signature first appeared 1855 The printing telegraph made it possible for a machine with 26 alphabetic keys to print the messages automatically and was soon adopted worldwide. 1856 Belgian engineer Charles Bourseul proposed telephony 1856 The Atlantic Telegraph company was formed in London to stretch a commercial telegraph cable across the Atlantic Ocean, completed in 1866. 1860 The Pony Express was founded, able to deliver mail of wealthy individuals or government officials from coast to coast in 10 days. 1861 The East coast was connected to the West when Western Union completed the transcontinental telegraph line, putting an end to unprofitable The Pony Express. 1862-1863 First US banknotes - Lincoln Over Rules Debt-Based Money and Issues Greenbacks to Fund Civil War Bankers would only lend the government money under certain conditions and at high interest rates, so Lincoln issued his own currency – “greenbacks” – through the US Treasury, and made them legal tender. His soldiers went on to win the war, followed by great economic expansion. 1863 to 1932 “National Banking Era” Commercial banks in the United States had legally issued banknotes before there was a national currency; however, these became subject to government authorization from 1863 to 1932 1864 Friedrich Wilhelm Raiffeisen founded the first rural credit union in Heddesdorf (now part of Neuwied) in Germany. By the time of Raiffeisen's death in 1888, credit unions had spread to Italy, France, the Netherlands, England, Austria, and other nations 1870 Long-distance telegraph lines connected Britain and India. c1871 Marginalism - The doctrines of marginalism and the Marginal Revolution are often interpreted as a response to the rise of the worker's movement, Marxian economics and the earlier (Ricardian) socialist theories of the exploitation of labour. 1871 Carl Menger’s Principles of Economics – Austrian School 1872 Marx’s Das Capital 1872 Australia becomes the first nation to be connected to the rest of the world via submarine telegraph cables. 1876 Alexander Graham Bell patented the telephone, first called the electric speech machine – revolutionized communication 1877 Thomas Edison – Phonograph 1878 Western Union, the leading telegraph provider of the U.S., begins to lose out to the telephone technology of the National Bell Telephone Company. 1881 President James Garfield, Staunch Proponent of “Honest Money” Backed by Gold and Silver, was Assassinated Garfield opposed fiat currency (money that was not backed by any physical object). He had the second shortest Presidency in history. 1882 First description of the one-time pad 1886 First gas powered car 1888 Ballpoint pen 1892 Cinematograph 1895 System of wireless communication using radio waves 1896 First successful intercontinental telegram 1898 Polyethylene 1899 Nickel-cadmium battery 1907 Banking Panic of 1907 The New York Stock Exchange dropped dramatically as everyone tried to get their money out of the banks at the same time across the nation. This banking panic spurred debate for banking reform. JP Morgan and others gathered to create an image of concern and stability in the face of the panic, which eventually led to the formation of the Federal Reserve. The founders of the Federal Reserve pretended like the bankers were opposed to the idea of its formation in order to mislead the public into believing that the Federal Reserve would help to regulate bankers when in fact it really gave even more power to private bankers, but in a less transparent way. 1908 St Mary’s Bank – first credit union in US 1908 JP Morgan Associate and Rockefeller Relative Nelson Aldrich Heads New National Monetary Commission Senate Republican leader, Nelson Aldrich, heads the new National Monetary Commission that was created to study the cause of the banking panic. Aldrich had close ties with J.P. Morgan and his daughter married John D. Rockefeller. 1910 Bankers Meet Secretly on Jekyll Island to Draft Federal Reserve Banking Legislation Over the course of a week, some of the nation’s most powerful bankers met secretly off the coast of Georgia, drafting a proposal for a private Central Banking system. 1913 Federal Reserve Act Passed Two days before Christmas, while many members of Congress were away on vacation, the Federal Reserve Act was passed, creating the Central banking system we have today, originally with gold backed Federal Reserve Notes. It was based on the Aldrich plan drafted on Jekyll Island and gave private bankers supreme authority over the economy. They are now able to create money out of nothing (and loan it out at interest), make decisions without government approval, and control the amount of money in circulation. 1913 Income tax established -16th Amendment Ratified Taxes ensured that citizens would cover the payment of debt due to the Central Bank, the Federal Reserve, which was also created in 1913.The 16th Amendment stated: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” 1914 November, Federal Reserve Banks Open JP Morgan and Co. Profits from Financing both sides of War and Purchasing Weapons J.P. Morgan and Co. made a deal with the Bank of England to give them a monopoly on underwriting war bonds for the UK and France. They also invested in the suppliers of war equipment to Britain and France. 1914 WWI 1917 Teletype cipher 1917 The one-time pad 1917 Zimmerman Telegram intercepted and decoded by Room 40, the cryptanalysis department of the British Military during WWI. 1918 GB returns to gold standard post-war but it didn’t work out 1919 First rotor machine, an electro-mechanical stream ciphering and decrypting machine. 1919 Founding of The Cipher Bureau, Poland’s intelligence and cryptography agency. 1919-1929 The Black Chamber, a forerunner of the NSA, was the first U.S. cryptanalytic organization. Worked with the telegraph company Western Union to illegally acquire foreign communications of foreign embassies and representatives. It was shut down in 1929 as funding was removed after it was deemed unethical to intercept private domestic radio signals. 1920s Department stores, hotel chains and service staions begin offering customers charge cards 1921-1929 The “Roaring 20’s” – The Federal Reserve Floods the Economy with Cash and Credit From 1921 to 1929 the Federal Reserve increased the money supply by $28 billion, almost a 62% increase over an eight-year period. This artificially created another “boom”. 1927 Quartz clock 1928 First experimental Television broadcast in the US. 1929 Federal Reserve Contracts the Money Supply In 1929, the Federal Reserve began to pull money out of circulation as loans were paid back. They created a “bust” which was inevitable after issuing so much credit in the years before. The Federal Reserve’s actions triggered the banking crisis, which led to the Great Depression. 1929 October 24, “Black Thursday”, Stock Market Crash The most devastating stock market crash in history. Billions of dollars in value were consolidated into the private banker’s hands at the expense of everyone else. 1930s The Great Depression marked the end of the gold standard 1931 German Enigma machines attained and reconstructed. 1932 Turbo jet engine patented 1933 SEC founded - passed the Glass–Steagall Act, which separated investment banking and commercial banking. This was to avoid more risky investment banking activities from ever again causing commercial bank failures. 1933 FM Radio 1933 Germany begins Telex, a network of teleprinters sending and receiving text based messages. Post WWII Telex networks began to spread around the world. 1936 Austrian engineer Paul Eisler invented Printed circuit board 1936 Beginning of the Keynesian Revolution 1937 Typex, British encryption machines which were upgraded versions of Enigma machines. 1906 Teletypewriters 1927 Founding of highly secret and unofficial Signal Intelligence Service, SIS, the U.S. Army’s codebreaking division. 1937 Made illegal for Americans to own gold 1938 Z1 built by Konrad Zuse is the first freely programmable computer in the world. 1939 WWII – decline of the gold standard which greatly restricted policy making 1939-45 Codetalkers - The Navajo code is the only spoken military code never to have been deciphered - "Were it not for the Navajos, the Marines would never have taken Iwo Jima."—Howard Connor 1940 Modems 1942 Deciphering Japanese coded messages leads to a turning point victory for the U.S. in WWII. 1943 At Bletchley Park, Alan Turing and team build a specialized cipher-breaking machine called Heath Robinson. 1943 Colossus computer built in London to crack the German Lorenz cipher. 1944 Bretton Woods – convenient after the US had most of the gold 1945 Manhattan Project – Atom Bomb 1945 Transatlantic telephone cable 1945 Claude E. Shannon published "A mathematical theory of cryptography", commonly accepted as the starting point for development of modern cryptography. C1946 Crypto Wars begin and last to this day 1946 Charg-it card created by John C Biggins 1948 Atomic clock 1948 Claude Shannon writes a paper that establishes the mathematical basis of information theory 1949 Info theorist Claude Shannon asks “What does an ideal cipher look like?” – one time pad – what if the keys are not truly random 1950 First credit card released by the Diners Club, able to be used in 20 restaurants in NYC 1951 NSA, National Security Agency founded and creates the KL-7, an off-line rotor encryption machine 1952 First thermonuclear weapon 1953 First videotape recorder 1953 Term “Hash” first used meaning to “chop” or “make a mess” out of something 1954 Atomic Energy Act (no mention of crypto) 1957 The NSA begins producing ROMOLUS encryption machines, soon to be used by NATO 1957 First PC – IBM 1957 First Satellite – Sputnik 1 1958 Western Union begins building a nationwide Telex network in the U.S. 1960s Machine readable codes were added to the bottom of cheques in MICR format, which speeded up the clearing and sorting process 1960s Financial organizations were beginning to require strong commercial encryption on the rapidly growing field of wired money transfer. 1961 Electronic clock 1963 June 4, Kennedy Issued an Executive Order (11110) that Authorized the US Treasury to Issue Silver Certificates, Threatening the Federal Reserve’s Monopoly on Money This government issued currency would bypass the governments need to borrow from bankers at interest. 1963 Electronic calculator 1963 Nov. 22, Kennedy Assassinated 1963 Johnson Reverses Kennedy’s Banking Rule and Restores Power to the Federal Reserve 1964 8-Track 1964 LAN, Local Area Networks adapters 1965 Moore’s Law by CEO of Intel Gordon Moore observes that the number of components per integrated circuit doubles every year, and projected this rate of growth would continue for at least another decade. In 1975 he revised it to every two years. 1967 First ATM installed at Barclay’s Bank in London 1968 Cassette Player introduced 1969 First connections of ARPANET, predecessor of the internet, are made. started – SF, SB, UCLA, Utah (now Darpa) – made to stay ahead of the Soviets – there were other networks being built around the world but it was very hard to connect them – CERN in Europe 1970s Stagflation – unemployment + inflation, which Keynesian theory could not explain 1970s Business/commercial applications for Crypto emerge – prior to this time it was militarily used – ATMs 1st got people thinking about commercial applications of cryptography – data being sent over telephone lines 1970s The public developments of the 1970s broke the near monopoly on high quality cryptography held by government organizations. Use of checks increased in 70s – bringing about ACH One way functions... A few companies began selling access to private networks – but weren’t allowed to connect to the internet – business and universities using Arpanet had no commercial traffic – internet was used for research, not for commerce or advertising 1970 Railroads threatened by the growing popularity of air travel. Penn Central Railroad declares bankruptcy resulting in a $3.2 billion bailout 1970 Conjugate coding used in an attempt to design “money physically impossible to counterfeit” 1971 The US officially removes the gold standard 1971 Email invented 1971 Email 1971 First microcomputer on a chip 1971 Lockheed Bailout - $1.4 billion – Lockheed was a major government defense contractor 1972 First programmable word processor 1972 First video game console 1973 SWIFT established 1973 Ethernet invented, standardized in ‘83 1973 Mobile phone 1973 First commercial GUI – Xerox Alto 1973 First touchscreen 1973 Emails made up more than ¾ of ARPANET’s packets – people had to keep a map of the network by their desk – so DNS was created 1974 A protocol for packet network intercommunication – TCP/IP – Cerf and Kahn 1974 Franklin National Bank Bailout - $1.5 billion (valued at that time) - At the time, it was the largest bank failure in US history 1975 New York City Bailout - $9.4 billion – NYC was overextended 1975 W DES - meant that commercial uses of high quality encryption would become common, and serious problems of export control began to arise. 1975 DES, Data Encryption Standard developed at IBM, seeking to develop secure electronic communications for banks and large financial organizations. DES was the first publicly accessible cipher to be 'blessed' by a national agency such as the NSA. Its release stimulated an explosion of public and academic interest in cryptography. 1975 Digital camera 1975 Altair 8800 sparks the microprocessor revolution 1976 Bretton Woods ratified (lasted 30 years) – by 80’s all nations were using floating currencies 1976 New Directions in Cryptography published by Diffie & Hellman – this terrified Fort Meade – previously this technique was classified, now it’s public 1976 Apple I Computer – Steve Wozniak 1976 Asymmetric key cryptosystem published by Whitfield Diffie and Martin Hellman. 1976 Hellman and Diffie publish New Directions in Cryptography, introducing a radically new method of distributing cryptographic keys, contributing much to solving key distribution one of the fundamental problems of cryptography. It brought about the almost immediate public development of asymmetric key algorithms. - where people can have 2 sets of keys, public and private 1977 Diffie & Hellman receive letter from NSA employee JA Meyer that they’re violating Federal Laws comparable to arms export – this raises the question, “Can the gov prevent academics from publishing on crypto? 1977 DES considered insecure 1977 First handheld electronic game 1977 RSA public key encryption invented 1978 McEliece Cryptosystem invented, first asymmetric encryption algorithm to use randomization in the encryption process 1980s Large data centers began being built to store files and give users a better faster experience – companies rented space from them - Data centers would not only store data but scour it to show people what they might want to see and in some cases, sell data 1980s Reaganomics and Thatcherism 1980 A decade of intense bank failures begins; the FDIC reports that 1,600 were either closed or received financial assistance from 1980 to 1994 1980 Chrysler Bailout – lost over $1 billion due to major hubris on the part of its executives - $1.5 billion one of the largest payouts ever made to a single corporation. 1980 Protocols for public key cryptosystems – Ralph Merkle 1980 Flash memory invented – public in ‘84 1981 “Untraceable Electronic Mail, Return Addresses and Digital Pseudonumns” – Chaum 1981 EFTPOS, Electronic funds transfer at point of sale is created 1981 IBM Personal Computer 1982 “The Ethics of Liberty” Murray Rothbard 1982 Commodore 64 1982 CD 1983 Satellite TV 1983 First built in hard drive 1983 C++ 1983 Stereolithography 1983 Blind signatures for untraceable payments Mid 1980s Use of ATMs becomes more widespread 1984 Continental Illinois National Bank and Trust bailed out due to overly aggressive lending styles and - the bank’s downfall could be directly traced to risk taking and a lack of due diligence on the part of bank officers - $9.5 billion in 2008 money 1984 Macintosh Computer - the first mass-market personal computer that featured a graphical user interface, built-in screen and mouse 1984 CD Rom 1985 Zero-Knowledge Proofs first proposed 1985 300,000 simultaneous telephone conversations over single optical fiber 1985 Elliptic Curve Cryptography 1987 ARPANET had connected over 20k guarded computers by this time 1988 First private networks email servers connected to NSFNET 1988 The Crypto Anarchists Manifesto – Timothy C May 1988 ISDN, Integrated Services Digital Network 1989 Savings & Loan Bailout - After the widespread failure of savings and loan institutions, President George H. W. Bush signed and Congress enacted the Financial Institutions Reform Recovery and Enforcement Act - This was a taxpayer bailout of about $200 billion 1989 First commercial emails sent 1989 Digicash - Chaum 1989 Tim Berners-Lee and Robert Cailliau built the prototype system which became the World Wide Web, WWW 1989 First ISPs – companies with no network of their own which connected people to a local network and to the internet - To connect to a network your computer placed a phone call through a modem which translated analog signals to digital signals – dial-up was used to connect computers as phone lines already had an extensive network across the U.S. – but phone lines weren’t designed for high pitched sounds that could change fast to transmit large amounts of data 1990s Cryptowars really heat up... 1990s Some countries started to change their laws to allow "truncation" 1990s Encryption export controls became a matter of public concern with the introduction of the personal computer. Phil Zimmermann's PGP cryptosystem and its distribution on the Internet in 1991 was the first major 'individual level' challenge to controls on export of cryptography. The growth of electronic commerce in the 1990s created additional pressure for reduced restrictions. Shortly afterward, Netscape's SSL technology was widely adopted as a method for protecting credit card transactions using public key cryptography. 1990 NSFNET replaced Arpanet as backbone of the internet with more than 500k users Early 90s Dial up provided through AOL and Compuserve People were leery to use credit cards on the internet 1991 How to time-stamp a digital doc - Stornetta 1991 Phil Zimmermann releases the public key encryption program Pretty Good Privacy (PGP) along with its source code, which quickly appears on the Internet. He distributed a freeware version of PGP when he felt threatened by legislation then under consideration by the US Government that would require backdoors to be included in all cryptographic products developed within the US. Expanded the market to include anyone wanting to use cryptography on a personal computer (before only military, governments, large corporations) 1991 WWW (Tim Berners Lee) – made public in ‘93 – flatten the “tree” structure of the internet using hypertext – reason for HTTP//:WWW – LATER HTTPS for more security 1992 Erwise – first Internet Browser w a graphical Interface 1992 Congress passed a law allowing for commercial traffic on NSFNET 1992 Cpherpunks, Eric Hughes, Tim C May and John Gilmore – online privacy and safety from gov – cypherpunks write code so it can be spread and not shut down (in my earlier chapter) 1993 Mosaic – popularized surfing the web ‘til Netscape Navigator in ’94 – whose code was later used in Firefox 1993 A Cypherpunks Manifesto – Eric Hughes 1994 World’s first online cyberbank, First Virtual, opened for business 1994 Bluetooth 1994 First DVD player 1994 Stanford Federal Credit Union becomes the first financial institution to offer online internet banking services to all of its members in October 1994 1994 Internet only used by a few 1994 Cybercash 1994 Secure Sockets Layer (SSL) encryption protocol released by Netscape. Making financial transactions possible. 1994 One of the first online purchases was made, a Pizza Hut pepperoni pizza with mushrooms and extra cheese 1994 Cyphernomicon published – social implication where gov can’t do anything about it 1994-1999 Social Networking – GeoCities (combining creators and users) – had 19M users by ’99 – 3rd most popular after AOL and Yahoo – GeoCities purchased by Yahoo for $3.6B but took a hit after dotcom bubble popped and never recovered – GC shut down in ‘99 1995-2000 Dotcom bubble – Google, Amazon, Facebook: get over 600M visitors/year 1995 DVD 1995 MP3 term coined for MP3 files, the earlier development of which stretches back into the ‘70s, where MP files themselves where developed throughout the ‘90s 1995 NSFNET shut down and handed everything over to the ISPs 1995 NSA publishes the SHA1 hash algorithm as part of its Digital Signature Standard. 1996, 2000 President Bill Clinton signing the Executive order 13026 transferring the commercial encryption from the Munition List to the Commerce Control List. This order permitted the United States Department of Commerce to implement rules that greatly simplified the export of proprietary and open source software containing cryptography, which they did in 2000 - The successful cracking of DES likely helped gather both political and technical support for more advanced encryption in the hands of ordinary citizens - NSA considers AES strong enough to protect information classified at the Top Secret level 1996 e-gold 1997 WAP, Wireless Access Point 1997 NSA researchers published how to mint e cash 1997 Adam Back – HashCash – used PoW – coins could only be used once 1997 Nick Szabo – smart contracts “Formalizing and Securing Relationships on Public Networks” 1998 OSS, Open-source software Initiative Founded 1998 Wei Dai – B-money – decentralized database to record txs 1998 Bitgold 1998 First backdoor created by hackers from Cult of the Dead Cow 1998 Musk and Thiel founded PayPal 1998 Nick Szabo says crypto can protect land titles even if thugs take it by force – said it could be done with a timestamped database 1999 Much of the Glass-Steagal Act repealed - this saw US retail banks embark on big rounds of mergers and acquisitions and also engage in investment banking activities. 1999 Milton Friedman says, “I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that's missing, but that will soon be developed, is a reliable e-cash - a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A.” 1999 European banks began offering mobile banking with the first smartphones 1999 The Financial Services Modernization Act Allows Banks to Grow Even Larger Many economists and politicians have recognized that this legislation played a key part in the subprime mortgage crisis of 2007. 1999-2001 Napster, P2P file sharing – was one of the fastest growing businesses in history – bankrupt for paying musicians for copyright infringement
THANK YOU GUYS SO MUCH! I HAVE TO GO TO SLEEP NOW - ANY NEW ORDERS WILL BE DELIVERED TOMORROW. COUPON CODES ALMOST RUNNING OUT BTW. FIXED:
Global shipping should now work! :)
Prices Have dropped 30-50% for all Doge!! :)
Restocked more dogecoins! :)
USD should now be accepted through paypal
Prices will drop due to community feedback! Expect much fairer prices. DONE
Trying to get region-specific pricing to work at the moment
I went way overboard on the tips but it feels good to give :)
Better graphics/design to come
Thanks all on your feedback! You guys rock. No doubt the moon is ours.
Hello fellow shibes, As some of you may know, there really isn't an easy solution to buying doge online. Trading on the exchange gets you the lowest prices, but to do that you need a way to purchase bitcoin - which isn't easy since most bitcoin sellers want a freaking birth certificate and stool sample which they may or may not use to steal your identity. I want to fix all that. For the last week I've been working on an e-commerce solution to making buying all sorts of cryptocurrencies (but mainly doge) as easy as possible. There's only one problem. I hate marketers and the idea of advertising makes my skin crawl. So, I thought why not get in the Shibe spirit and pay anyone who comments (and hopefully visits) 500 Doge. I literally got the site live 2 days ago and it's definitely rough around the edges. I want feedback from the community - Is this a dumb idea? Are the prices stupidly high? Is the website just plain ugly? Are Canadian prices displayed for US viewers? Honest opinions - good or bad - you'll get 500 Doge. First 100 commenters (and those late but with thoughtful responses). www.quickcryptocoins.com As another thank-you, if you do plan on purchasing, use coupon code 50OFF4SHIBE for 50% off all dogecoin. To the moon!
Bitan Interview | Bring 200,000 Developers and one billion mobile terminals into the blockchain world.
Egretia has combined existing H5 technology and the production tool to create a complete blockchain game development tool. By using the set of Egretia tools, developers can rapidly create blockchain games without having to fully understand the complex technology implemented on the bottom layer. Also, the development tool could connect the virtual asset in blockchain games. Egretia, together with the world’s leading H5 technology provider, Egret Technology, aims to bring 200,000 developers and one billion mobile terminals into the blockchain world. In this “Bitan Interview”, we invited the founder of Egretia, Mr. Huang Jun, to talk about what revolutions Egretia will bring.
Huang, I see you have many years of Internet product and gaming project R&D management experience. How did you come into contact with the Blockchain industry?
Huang Jun: I came across the blockchain industry around 2012. I have some old friends who work with software and hardware technology, and they invested in Bitcoin in its early stages, so I have been familiar with Bitcoin and blockchain since 2012. However, at that time, I had not formed a complete opinion about it.
Why did you start the Egretia project?
Huang Jun: I was working at Adobe in 2014 and because I was so optimistic about the development of HTML5 technology, I joined Egret technology. Four years ago, our opinion regarding the development of H5 games was that H5 gaming certainly could have better performance on the mobile platform. Earlier this year, Tencent, Facebook, and other internet giants all had a H5 game line. So our initial judgment about HTML5 was correct. We had following reasons to start Egretia: The first reason is based on our judgment regarding the trend of technology. The entire Blockchain market is still at an early stage. Starting Egretia now, a blockchain gaming technology service provider, seems relatively early, but we feel that this is a promising direction to take. Any and every technology will go through a long process from its birth to its rise in popularity. I do believe Blockchain technology is the trend of the future. If we just put enough energy and time into it, then we will certainly see blockchain technology grow in popularity. The second reason is that we need to see how a new technique can realize value. When the game “Catching Crazy Cats” was coming up as the front-runner of the first batch HTML5 games, we saw that the basic concept of the game was very simple. Then later, the type of game and rule became more and more diversified, even gradually developing into more complex, multiplayer games. Throughout the whole development process, content grew from less content to more, shifting from “the nature” to”the quantity”. So with in the same train of thought, along with the development of blockchain technologies also came the improvement of the ecological environment.. There will be a large number of requirements for DApps on the market. Today, there are a lot of projects to on the chain,and the biggest need is to have a real product as soon as possible. The third reason is that we should have plenty of developers to help build the ecological environment. Since the creation of Egret, we have always had one goal, and that is to create a complete workflow environment for development as well as provide easy-to-use tools as a one-stop solution for developers. After just four years of development, Egret now has over 200,000 developers across the world and Egret engine tools have already covered more than 1 billion mobile terminal equipment units. What is Egretia’s goal? Our slogan is to bring 200,000 Developers and one billion mobile terminals into the Blockchain world. Egret posseses mature and refined tools, comprising of 14 tools total. Through combining our existing tools and Blockchain technologies, we have sealed the complex APIs and chains in the background, greatly enhancing development efficiency. Developers can use their existing knowledge and skills, and do not need to spend too much energy and time in studying this complex new technology. Developers can focus more on developing fun DApps and let Egretia do the dirty work of complex tasks. What’s the value of doing these things? We observed that no matter what kind of new technology, it will require content and application to drive its growth. Why is VAR less popular now? The reason is that its technology is not friendly enough to developers, resulting in scarcity of content and an inability to have a complete and healthy ecological environment. Blockchain industry and technology will become more valuable as more apps come up. When tokens truly have users, it will then be able to liquidate in the market. Otherwise, the Token is only in the exchange, and there is no way it could cover the majority of the target users.
In the white papers, it mentioned the various roles Egretia Token has played within the system. A very important function is that it replaced the current game industry payment system. What problems does this resolve for the ecological participant?
Huang Jun: We will use Tokens within the Egretia system to build a complete economic system. For developers, if they have a good project, we can support and incubate it within our official Token. If they produce good content, eventually they can get Token from users. For the users, if he/she finds an interesting game, he/she can use the Token to support it, which is also a sort of recognition for the Developers. From the complete tool perspective, we will open-source our API so that everyone can help us improve the tools. As long as you provide constructive criticism to us, you will get official Token rewards. Ultimately, once our ecology become more prosperous , Token will be liquidated on the Egretia platform. At present, our primary task is to build the existing tools using blockchain technology, allowing developers to quickly produce more high-quality content that could become the next super-star game. 4.Egretia as a game development tool and service provider will be involved in the economic field of the entire game industry, and can even be considered to penetrate to the interior of the gaming economy. Do game developers and operators have any concerns about this? Huang Jun: I think for game developers and operators, they do not need to have concerns since we only offer value-added services. Why is it that most developers, after developing an Android version, also want to develop an IOS version? It is because they are hoping to reach more users. If their product in certain channels have been validated and well-received, why not put these products through Egretia, a convenient development channel, to the blockchain users? This is value-added service for them. They not only get extra Token but also accumulate more users. Developers will eventuallyfind that using blockchain technology and smart contracts can produce a truly fair game. I feel that developers will welcome this new channel and will enjoy using this new technology to contact more users.
If the Token could be widely used in all areas, it would certainly be more convenient for the users. But it might have some effects such as the disappearance of the current funding entrance but players’ asset liquidity would, on the other hand, be greatly enhanced. What are the advantages and disadvantages of the Tokken towards users and the industry? What do you think of these?
Huang Jun: I think Token will definitely have an impact on the entire industry, and the use of district blockchain technology will certainly change the traditional channels of communication. Traditional channels of communication, in reality, is a monopoly market, a centralized market. And if we are able to use blockchain technology to truly achieve decentralization, then the whole industry will be driven by the contents user’s really enjoy. This is no doubt a very healthy development trend. Blockchain technology’s impact is very broad and not just limited to the gaming industry. I have seen a lot of companies use the blockchain technology that IBM provides to enable companies to operate more efficiently while reducing waste resources. I believe that in the future we will see more and more great products and more and more practical applications accepted by the companies. They should grow in profit through this process.
The design of Egretia, also referred to as various virtual assets stored in a wallet, would involve large amounts of data being stored on the chain. Will this cause problems in efficiency and storage capacity?
Huang Jun: No matter whether for gaming or public chain, TPS, or the speed of the transaction, is the primary problem we need to solve. I think there are a few steps for this: The first step is, a lot of the games developers make are merely payment connected, and you can buy simple items such as resurrection cards, magic cards, etc. The second step — connect the core assets to the blockchain. By doing this, the total number of assets will not be able to be easily changed and the issue of fairness of the game will be resolved. We are currently testing our internal network and have reached nearly 3000 TPS, a speed fully capable of supporting a large number of transactions within the games. The next step for when we reach a better and faster computing power is to put the game logic into the smart contract. For certain types of games, chess for example, fairness is very important and so we can put its game logic on the blockchain and place it inside the smart contract. I personally prefer step-by-step to achieve a variety of functions. When H5 technology and games were just coming out, we all thought that “Catch Crazy Cat,” this kind of product, couldn’t be called a true “game” since its rules are very simple and the graphics are very basic. Including — and especially — the first blockchain game “Crypto Cats,” we also feel like this cannot be called a real game. However, technical development is an iterative process. Just like for original website games, beginning with car parking games, stealing food games, then developing into interactive games, and then later 3-D page games. All technical and content development will go through a gradual, evolutionary process. Blockchain technology is able to resolve some long-standing problems in the gaming industry, such as “opaque data.” Although current blockchain technology is not a perfect solution, I am very optimistic about its future. There will be more and more Blockchain-based content being developed to improve content on demand and even improve the performance of the blockchain. Why Bitcoin fork? What’s the next generation of Ethereum? What problems does EOS super node solve? It is because we have real needs and these needs drive the technology progress. With more and more applications popping up, users’ demand will increase too. Projects, including Egretia, will gradually iterate and improve. Rome is not built in one night.
The White Paper mentions that players can mine the token. What can you tell us about this mechanism?
Huang Jun: This is an idea somewhat similar to an incentive mechanism for the community or the player. Our initial thought is to have an algorithm that incentivizes users base on live time. Of course, after our chain goes online, we may provide relevant software solutions or hardware solutions, but for now the plan has not been finalized yet. 8.Egretia’s incentive mechanism is POG. Will it have an incentivation problem? Huang Chun: This is exactly what we need to pay attention to to try and avoid. We will design a good standard and judgment mechanism. If a Token and some points have a certain exchange relationship, then users may use this relationship incentivize more points in exchange for more Tokens. This is what the front-end and back-end must solve. But the entire industry is facing the same problem as well.
Why does Egretia want to build their own chain? Similar DPOS-using mechanisms have EOS and BTS, and so, why not just choose one of them?
Huang Jun: First of all, our strength is to provide front-end and back-end services and create the workflow. Our tools, SDK, and cloud services will support the mainstream public chain, such as EOS, Ethereum, and so on. Our vision is not only to support our own chains. So why do we want to do it ourselves? Because we need to improve some features, particularly for the game industry. Ethereum is a mature and stable chain, so why not just do it on top of it? Operationally Ethereum is fine, but for games, we have found that it cannot meet certain requirements, so it is better to re-design a chain specifically for the gaming industry. Based on the demand from the gaming industry, we will gradually perfect Egretia’s public chain. I have developed a process which, if there are other chains issued that are very suitable to the gaming industry, we will consider it. Our front-end and back-end technology could quickly access the chain.
Egretia plans to give the game server-side access to the network and become a blockchain node. Will this increase the input costs?
Huang Chun: This is the service we wanted to offer to aim at reducing costs for small and medium teams. Big development teams can build servers for themselves but many small and medium developers may prefer to access existing back-end services. Our partners, or us ourselves, can provide more convenient service. For example, those who develop a multiplayer game could quickly connect to the nearest server to ensure a better user experience.
The reform Egretia brings to the game developer is not just for technology. Since there is no developed method to allow for centralized service access to the blockchain, developers might need to consider transitions in the development process, too. In addition to providing a convenient development tool what else can Egretia provide?
Huang Chun: We will maintain long-term communication with our developers, including social and technical forums where members can learn from each other. We will also organize periodic blockchain game conferences everyone can work together to understand the future of blockchain games. In the blockchain industry, just talking about empty concepts cannot bring about real growth. We need to explore together and and push to further the entire industry. We will also support a number of high-quality business developer teams, and thus contribute to the blockchain applications. We are currently planning to organize a blockchain gaming conference in late May, and after that other countries will have similar conferences too. We hope to gather more developers to push the development of the industry.
For blockchain gaming, maybe due to the industry’s threshold, users are typically people from the coin world. There are not many traditional game players coming in. Do you have any solutions to this problem?
Huang Wei: I think users need a guided process. Players in the coin world may have some intersection with traditional game players, but that’s not absolute. The most important thing is how to design a game for users in the coin world based on their special characteristics. For traditional game players, how to solve their understanding of Token and how to provide them with more convenient Token payment methods. At present, users need to install wallets to play games. After the wallet is installed, where Token comes from, how to get an airdrop, how to go to the exchange, and so on, the users do not understand. In this case, the entire industry does not actually open to the public. And getting through this whole process requires the collaboration of the entire industry. This is also what we want to do in the future. We will work with wallets and exchanges. Users who are not in the coin world can also have a better experience and use Token more smoothly.
Recently, Cocos2D and Unity3D both stated that they are willing to enter the blockchain industry. Are they competitors of Egretia? What is your view on their move into the blockchain sphere?
Huang Hao: If there is no competition in the industry, then it means that the industry simply will not flourish. I think that competition is a good thing. Cocos2D is an old brand for many years. And for Unity3D, no matter if you’re looking at their product or business model, they’re great at both. Unity is also working with third parties to introduce the Token mechanism. I think these are all positive signals. We are very open about this kind of competition. It requires competition to be able to make yourself better. More and more people want to do this, indicating that this industry is doing well and the is are moving in the right.
The roadmap shows that in 2018 Quarter 2 you will release testnet and other tools. When did Egretia start development work?
Huang Hao: Developmental work has been going on for more than a year. In addition to our own team, there are some strategic partners of ours working together on development. Internal testing is currently going on but has not been opened to the public yet. At present, the testnet and test tools are planned to be announced at the end of the second quarter, and will be availble for everyone to test. 15.Egretia mentioned that it will support game development teams and individuals. We as a blockchain related media have also been exposed to a number of developers interested in blockchain games. Can you tell us what resources and help Egretia will give to game developers, and what the requirements and restrictions are for developers? Huang Wei: First of all, as for the requirements and restrictions, I don’t think there will be any restrictions. As long as it is a good team, a good idea, or they have a proven product, we can provide support. We will provide support from both technical and financial aspects. On the technical side, we can help them better connect to blockchain technology. With respect to finances, we can help them solve the team’s survival and development issues through equity investment, Token investment, and so on.
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