Bitcoin Tech Talk #342
Interesting Stuff
Motorcycles and War - This intriguing article examines the role of motorcycles in modern warfare, particularly as a favored vehicle for insurgencies. The post explores the reasons behind their effectiveness in combat, but also acknowledges the downsides, such as high accident rates, which make them less practical for conventional armies. As a result, an asymmetry exists that allows insurgencies to mount effective resistance despite being vastly outspent. The article draws a parallel between motorcycles and Bitcoin, both serving as disruptive tools in their respective fields.
Girl with Seven Names - A captivating book, the story follows a woman who spends a decade in China after inadvertently escaping from North Korea. It offers a raw insight into the challenges faced by someone on the run, including the many people who attempt to exploit her vulnerability. The most powerful aspect of her journey is her love for her family, which provides her with a sense of purpose and understanding amidst her assimilation and suffering.
Mortality - This somewhat pretentious review of a science fiction novel ends with a poignant reflection on the significance of love as we age. The author suggests that love retains its importance while other aspects of life fade. The review also touches on how fiat money has drained meaning from many things, causing them to be discarded due to their perceived lack of metaphysical value. Memento Mori.
What I'm up to
Krypto Seoul Meetup - My presentation from the altcoiner meetup in Seoul is now available online! I've given this talk multiple times, focusing on the theme "Fiat Ruins Everything," which is also the subject of my new book. What stood out for me was the Q&A session, where the audience asked about various topics. Mostly comprised of altcoin enthusiasts, I tried to persuade them that Bitcoin is the better option, highlighting the growing momentum behind it. I've mentioned to many that Korea seems to be about 5 years behind the US, placing them in a 2018-like phase, where disillusionment with altcoins is setting in.
Good vs Evil - The recording of my panel discussion from LightningCon is up, where we debated the morality of Bitcoin. I emphasized the importance of conviction and argued that authenticity is not a negative trait. In contrast to the fiat model of authenticity, which often involves sharing vulnerability, true authenticity means expressing your genuine thoughts even if they might offend others.
Jeju Island and Tokyo - I don't have any events scheduled at the moment, but if you organize a Bitcoin Meetup in either Jeju Island or Tokyo, I'm eager to present. Additionally, if you have any recommendations for must-see attractions or experiences, please reach out!
Nostr Note of the Week
What I’m Shilling
Unchained Capital is a sponsor of this newsletter. I am an advisor and proud to be a part of a company that’s enhancing security for Bitcoin holders. If you need multisig, collaborative custody or bitcoin native financial services, learn more here.
Bitcoin
Prioritizing Usage - I recently read AJ Towns' post from a few months ago, which provides an excellent overview of how he approaches Bitcoin from a usage perspective. He lists seven different reasons people use Bitcoin, offering a valuable framework for deciding on feature implementation or bug fixes. Understanding how users interact with a product can be immensely helpful in determining the next steps for development.
Nostr Broadcasting - NIP89 allows you to broadcast Bitcoin transactions using Nostr! Transactions are relayed through a Nostr relay instead of a Bitcoin node, which can help prevent information leaks. Users can specify the network for their transaction (mainnet, testnet, or a custom signet) and the transaction is base64 encoded for easy transport. Implementing an additional layer of indirection like Dandelion at this level, rather than the node layer, could be beneficial.
Munstr - Along similar lines, a project is underway to coordinate MuSig signing over Nostr. Given that such protocols require multiple rounds, this security approach could pave the way for new methods of securing Bitcoin. Although cold storage has been the primary recommendation, the potential for having keys online in varied setups might make coordinated signing a viable option.
Open Source ASIC - Block has shared an update on their progress in ASIC creation. They have completed a 5-nanometer lithography process chip design and are working on a prototype. They are also developing a 3-nanometer design and actively hiring to make this chip a reality. This advancement could significantly contribute to the commoditization of mining manufacturing, and hopefully, lead to the integration of such components into innovative machines.
Lightning
Taproot Channels - Elle Mouton's Taproot series continues with a comprehensive post discussing how Schnorr/MuSig will alter channel structures. Channel opens will now use a 2-of-2 MuSig instead of the multisig from Segwit v0. This change not only reduces on-chain space usage but also enhances privacy, as these transactions become indistinguishable from normal single-sig (or other MuSig) Taproot transactions.
What’s an HTLC? - Voltage's blog post delves into the concept of hashes, cryptographically secure hashes, and their connection to HTLCs. It serves as an excellent introduction to the importance of one-way functions and how they secure payments on the Lightning Network. Hopefully, they'll cover PTLCs and their pros and cons in a future post!
Submarine Swap market - Submarine swaps have long been valuable for bridging on-chain and Lightning transactions, as well as for privacy. Now, a Nostr-based market for submarine swaps is available, allowing makers (those offering either side of the swap) to earn money from takers (those accepting the offer). This innovative concept could lead to a competitive market with fair fees. As the market evolves, it may diversify to offer swaps catering to various needs, such as privacy or liquidity.
Economics, Engineering, Etc.
April Macro - Lyn Alden shares her insightful macro analysis for April, focusing on the debt ceiling and exploring the implications of inflation. In general, those with debt benefit from inflation, while those with fixed incomes suffer. This observation may explain the prolonged period of artificially low inflation, as society is under a gerontocracy.
BLDF - The Bitcoin Legal Defense Fund is a new initiative aimed at protecting core developers from frivolous lawsuits. Regrettably, the legal system has been exploited by individuals like CSW to cause harm, despite the lack of merit in their cases. The fund seeks to crowdfund defense efforts to prevent such baseless lawsuits from succeeding. It's unfortunate that such measures are necessary, but that's the reality of the fiat world.
TVP Ecosystem Report - Trammel Venture Partners reveals the extent of malinvestment in the broader crypto space. Although Bitcoin dominates the market in terms of liquidity, altcoins receive the majority of funding. This trend demonstrates the ecosystem's entrapment in a fiat mindset, which prioritizes money over reputation and results in significant waste, particularly for retail investors.
Adamant’s Market Report - Tuur Demeester maintains his tradition of releasing market reports during bear markets, suggesting that a bull market is approaching. Positioning oneself for this shift by investing in Bitcoin is the best strategy, as it offers significant upside without the risks associated with individual companies or organizations. In contrast, diversification may be an ineffective form of decentralization.
Quick Hits
De-dollarization is US’s fault - A Chinese outlet claims that the US is undermining its own dollar hegemony by weaponizing it. While the argument may be biased, it raises valid concerns about the consequences of the US's actions.
Argentina suffering from 100% inflation - Governments continue to fund programs like free schooling and healthcare by spending money they don't have. However, these services are not truly free when considering the impact of inflation.
Google Auth Phones Home - If you use the widely adopted Google Authenticator 2FA app, avoid enabling the cloud save feature to protect your privacy.
Zimbabwe Gold-backed Currency - After destroying their reputation with their previous fiat currency experiment, Zimbabwe is attempting to introduce a gold-backed currency. However, it is only a matter of time before the suspension of convertibility becomes an issue.
Fiat delenda est.