Podcast: Bitcoin vs. blockchains without coin

The blockchain is considered by many to be the groundbreaking innovation behind Bitcoin. But Bitcoin is more than just a chain of data blocks. Does a blockchain without a Bitcoin-like asset make any sense at all?

A Peer-to-Peer Cryptosoft Revolution

Bitcoin is much more than just a cryptosoft blockchain. Because Bitcoin is a sophisticated, digital money system without a controlling institution. More info here: https://www.onlinebetrug.net/en/cryptosoft/ Participants can send money directly to each other as easily as they can send e-mails. These transfers are documented on the blockchain. Ensuring their integrity is the task of the miners, who compete with each other. In order for a transaction to be confirmed, a miner must provide the so-called proof of work.

As a reward for the demonstrably performed work, the miner receives a digital asset that is native to the blockchain: Bitcoin. The blockchain is therefore only one component in the electronic peer-to-peer cash system. In addition to the proof of work, the asset, Bitcoin, also plays an essential role. In other words, the digital asset serves as an incentive for the miners to do their job. What’s more, it gives the whole construct a unit with which value can be transferred and measured. In addition, Bitcoin is open to anyone and the computer code can be verified. Therefore the genius of Bitcoin goes far beyond “the blockchain”. Consequently, the terms Bitcoin and Blockchain are not synonymous. That is why Onur and I are discussing this topic in today’s podcast episode.

Onur Akpolat of the crypto heroes

Onur Akpolat is enthusiastic about crypto currencies and says: “This is the digital revolution I’ve been waiting for”. His passion led him to create the crypto hero podcast Hung Tieu. In today’s episode he is our guest in the BTC-ECHO podcast studio and philosophises with me about the sense of blockchains without coin.

Blockchain yay, Bitcoin nay” is the attitude of many established companies to the technological phenomenon of the 21st century. On the one hand the big players want to be hip and innovative, on the other hand decentralized technology undermines established power structures. This is why Bitcoin is usually actively hushed up in such circles. Blockchain technology, on the other hand, is very popular. After all, blockchain technology is the essence of Bitcoin and the fundamental innovation with which many processes can be overhauled. In addition, efficiency can be gained without having to abolish middlemen. But is that true?

Hodl the forest fairy – New Ledger Nano S Apps to store Bitcoin

For Bitcoin owners, proper storage of Bitcoins is almost more important than the Bitcoin course. With two new apps, wallet manufacturer Ledger is now taking on two important building blocks in the Bitcoin business: Hodlins and Recovery Phrases.

If you can’t trade, you have to hodl – that’s how it was in the legendary Bitcoin talk thread “I am hodling”. The apparently drunk user GameKyuubi explained in a slightly cryptic outburst of feelings why he preferred to keep Bitcoin on his wallet instead of doing daytrading with it – he was simply a bad trader. The small spelling mistake finally became the motto of an entire movement: Hodln until the Bitcoin price rises (and beyond). Sido, Kool Savas, gynaecologist and other rappers made a song out of it. And now Ledger, the wallet operator, has developed an app especially for it.

HODL – Keep Bitcoin loophole safe

From Ledger’s official announcement: “We have developed Ledger Hardware Wallets to give people a way to keep their crypto currencies safe. Far away from online exchanges or a computer that could be hacked or attacked.” So if you do a transaction and the address and number of crypto currencies like Bitcoin loophole, Ethereum and Co match, you can be sure that your crypto assets are kept safe, Ledger continues. The new Hodl app will now make it easier to check wallet addresses when receiving crypto currencies. Ledger Nano S thus acts as a “virtual keyboard”. For this you have to master four steps:

Selecting the address field on the computer
Open the HODL app
Use the Nano S Ledger to select the wallet you want to use.
Have the address inserted automatically
The HODL app now promises to help ensure that you enter the correct address. As most people know, these are quite long, so even the biggest Bitcoin professionals can make mistakes when entering the address. The app is easy to install on the Ledger Live application.

Comment by BTC-ECHO editor Christopher Klee:

Hodl the forest fairy. It’s nice that Ledger is now helping the Hodlers to stop making gross mistakes when holding Bitcoin.

Recovery Check – for more security with the HODLN of Bitcoin, Ether and Co.
As a second new app Ledger presents RecoveryCheck – now you can check your recovery phrase. What anyone who should know about storing crypto currencies on wallets: With the recovery phrase the stored tokens stand or fall if the ledger is lost or stolen – without it you can’t get to your funds afterwards – which can lead to high losses.

With the Recovery-Check-App this should be much easier now. You can simply enter it into the app again and the app automatically checks whether you have written down the right words – then you can best copy it again and store it in a safe place.

The company on its blog:

“We are happy to bring these new features to our community and we will continue to work on improving our products for the future.

Just to remind you, storing crypto currencies on Exchanges is not a good option if you are concerned about security. The problem is now well known – although crypto currencies themselves are protected against attacks – the stock exchanges are not always. Again and again we have to report about phishing attacks on crypto exchanges where users lose their carefully coded bitcoins. If you want to be on the safe side and don’t trust your memory enough for brain wallets, you’ll always be well served by ledgers like Ledger Nano S, Archos or Trezor.

Meanwhile, the Bitcoin rate remains stable at over 8,000 dollars. This means that the leading crypto currency is currently at a 7-day plus of 6.36 percent and a monthly upswing of just under 28 percent. There it is not wrong to continue hoddling Bitcoin. The same applies to Ether, Ripple and most Altcoins, which are in the upwind.

Scaling Bitcoin formula – Five lectures to look forward to

Scaling Bitcoin, the big Bitcoin Summit, will begin on 9 October with five interesting presentations.

Will Bitcoin formula finally be scaled?

This is the question the current Bitcoin formula Developers Conference will address. Scaling Bitcoin formula runs from October 8th to 9th and is the third conference to address the question of how to create more users and more transactions.

Even if this Bitcoin Summit has lost some of its original fascination, this conference is eagerly awaited: It is about the technological roadmap of Bitcoin, a project critics say is losing ground compared to other crypto currencies.

But this conference will not just be about scaling Bitcoin. In general, one would like to discuss how Bitcoin can be improved. For example, one would like to talk about Segregated Witness.

Roughly speaking, the technical presentations will be divided into six sections. Top tier developers will be addressed on topics such as Bitcoin network issues, privacy and security.

In previous editions of this conference, things like Segregated Witness or Bitcoin-NG, a proposal to revise Bitcoin, have been presented.

There will be a live stream to be found on Youtube, and in an IRC channel even the physically absent audience will be able to interfere in the discussions. So what can you see live or via livestream? Now five interesting talks are briefly touched on, so that one knows what kind of lectures one can expect – what else there is to talk about can be found here. For the readers, the titles of the lectures are left in English, so that you can quickly find them on the Internet if you are interested.

Fungibility Overview (Adam Black and Matt Corallo)

The following four talks will deal with fungibility, which is why an introductory talk on this topic is useful.

Fungibility is ultimately the idea that a Satoshi is as good as any other – as is the case with cash. In the Bitcoin blockchain, this is not necessarily the case – individual coins are interchangeable.

The concept of fungibility goes hand in hand with transaction anonymity: if one can hide details of transactions from the eyes of third parties, the money will ipsofacto not carry around any information about old transactions – at least not in such a way that third parties can see it.

Adam Black, the inventor of Hashcash and CEO of Blockstream, has always been a proponent of the principles of fungibility and privacy. He will give this lecture.

Onion Routing in Lightning (Olaoluwa Osuntokun)
The Bitcoin Lightning network is seen by many as the future of Bitcoin, but it is not yet clear to many how all the pieces of the puzzle will fit together to form a working, fast payment network.

One way to bring anonymity to the Lightning network is through onion routing (a process you should know from the Tor network). Osuntokin is a pioneer in this approach and published standards for onion routing a few months ago.

Unlinkable Outsourced Channel Monitoring (Tadge Dryja)
Off-chain networks for microtransactions is a major topic. In this lecture one of the inventors of the Lightning network, Tadge Dryja, will talk about a special challenge.

The Lightning Network requires that there be someone who constantly monitors individual payment channels and ensures that users do not cheat on each other.

It was suggested that such a job be outsourced to specialists. They should look for fraud attempts without having control over these transactions themselves. But how this will work in Lightning Network has remained open so far.

Dryja’s presentation will certainly try to clarify a few things here. The word “Unlinkable” suggests that we will be dealing here with private transactions. So one can assume that there is something new regarding the Lightning network.

Sidechain Scaling (Paul Sztorc)
Sidechains, another strongly observed Bitcoin feature, is currently being driven primarily by the Montreal-based company Blockstream.

In order to motivate creative minds to do more experiments in the Bitcoin ecosystem, you can enable users to move Bitcoin to other blockchains. On these so-called sidechains other rules can apply than on the Bitcoin blockchain; see Rootstock, for example, Smart Contracts could run on them.

Paul Sztorc, a developer who submitted his own sidechain proposal called Drivechain, will show how these sidechains work with Bitcoin’s Skalie