The Original Let's Talk Bitcoin Show tracks on Soundclound

#mindtomatter

  • Upcoming Halloween Livestream Show
    The Original Let's Talk Bitcoin Show
    01:27
    0

    Adam B. Levine provides a brief update on our upcoming halloween livestream episode and how you can participate or watch live.

  • SOB #448 Where Does Bitcoin Fit in the Global Reserve Currency Game?
    The Original Let's Talk Bitcoin Show
    37:18
    Technology
    0

    On this “Speaking of Bitcoin” episode, join hosts Adam B. Levine, Andreas M. Antonopoulos, Stephanie Murphy, and Jonathan Mohan for a look at the past, present and future of global reserve currencies This episode is sponsored by Crypto.com, Nexo.io and Elliptic In the beginning (way back in 2009) there was the global reserve currency (U.S. dollars,) national currencies like the Japanese Yen, alternative currencies like Ithaca hours and just one cryptocurrency, Bitcoin. But what a difference a decade can make, today there are thousands of cryptocurrencies, many created by enthusiasts who have ideas on how to make something even better than bitcoin, but also currencies that use some of the technology that makes Bitcoin so powerful, but which pairs it with the authority of a national government, like the Digital Yuan in China, the Digital Euro out of Brussels, or even a globe-spanning corporation with billions of customers like the Libra, backed by Facebook. In this emerging picture, is bitcoin still interesting? First attempts at new technologies, even when successful at introducing a powerful new idea, are often not the ones which eventually succeeds in changing everything. And importantly, as the world changes and we get closer to something other than the dollar standard, where does bitcoin fit?

  • SOB #447 Signal, Noise and the Coming Era of AI Curation
    The Original Let's Talk Bitcoin Show
    39:01
    Technology
    0

    On this “Speaking of Bitcoin” episode, join hosts Adam B. Levine, Stephanie Murphy, Jonathan Mohan and special guest Martin Rerak, creator of AllYourFeeds.com, for a look at how “AI curation” is being used to figure out what’s useful information and what’s just fluff. This episode is sponsored by Crypto.com, Nexo.io and Elliptic Hundreds of tabs In the early days of Bitcoin, there were just a few places you might go to read news and stay informed, but over the years things have changed dramatically. Today there are thousands of projects and hundreds of articles written each day. And that’s assuming you ignore the wilds of YouTube or the depths of crypto Twitter. There were days I was waking up to a hundred tabs that I was basically just reloading from the prior day... You know, looking at Slack, Telegram, Twitter accounts, Discord, Reddit and dozens of publications online [...] It was very easy to point somebody in the [right] direction if they're saying, "Where can I buy cryptocurrency?" But if they were saying, "Is there a use case here for traceability?" or "What do you think I should invest in?" or "How is this project developing?" that becomes a lot more loaded and challenging... - Martin Rerak See also: What Is GPT-3 and Should We Be Terrified? In this episode, we discuss the crypto-media landscape, AI training, the challenges around bias and un-biasing practices, potential impacts of the natural-language-generating algorithm known as GPT-3 and more. Biased AI While unsettling on the surface, the idea of bias within an AI is not as controversial as you might imagine – it’s almost required. As humans, we each have our own experiences and preferences which shape our viewpoint and our biases. Modern artificial intelligence consumes “training material” curated by humans to learn what’s right or wrong for its particular task. Once trained, AI can help us with those tasks and is at its most useful when it’s “instincts” match whomever it is working on behalf of. Of course whether bias is good or bad depends a lot of your priorities. When Google trained an AI to help with hiring, the data around past and current employees led it to believe that an ideal “Google engineer” wouldn’t have a woman’s college on their academic transcript. For Google, their past records did not match their future ambitions and so bias was a problem. But personally, I’ve developed patent-pending AI technology that assists with audio editing, and here the idea of bias is critical. There is no objective standard of what sounds best, only personal preferences. For an AI to assist an audio editor, it must be in tune with those preferences and be able to make decisions that are objectively correct for the person it is assisting. This is much the same with AI assisted news curation. We all have our own preferences, interests and biases which help us decide what we do or don’t care about. On today’s show we dig into this fascinating topic where one size rarely fits all and the future is wide open.

  • Quick Update from The Original Let's Talk Bitcoin Show
    The Original Let's Talk Bitcoin Show
    02:07
    Storytelling
    310

    Adam provides an update on an upcoming series of retrospective episodes on The Original Let's Talk Bitcoin Show

  • SOB #446 The 51% Attack Nightmare Scenario (Isn't That Bad)
    The Original Let's Talk Bitcoin Show
    43:48
    Technology
    0

    On this Speaking of Bitcoin episode, join hosts Adam B. Levine, Andreas M. Antonopoulos, Stephanie Murphy & Jonathan Mohan for an in-depth discussion about what’s really at risk when blockchains suffer the dreaded 51% attack. This episode is sponsored by Crypto.com, Bitstamp and Nexo.io. On today’s show we’re talking 51% attacks, the much discussed, infrequently seen and fairly misunderstood doomsday scenarios. It’s recently re-emerged as a topic of discussion as Ethereum plans its transition to Proof-of-Stake and fork Ethereum Classic is hit by its third in less than a month. Although the numbers may change, basically any blockchain you can imagine is vulnerable to some form of the so-called 51% attack. By distributing the power within a protocol, say to miners instead of a corporate board, blockchains and other decentralized systems create and maintain a “Consensus Reality”, where what most of the network believes to be true is true, or becomes true for the entirety of the network. See also: How Does Kraken’s New Crypto Bank Work? If you think about it, this makes sense. Each blockchain creates a game with a distinct set of rules that need to be followed for the thing to work. It requires lots of people who don’t know each other to individually follow those rules and get rewarded by the system for doing so. The assumption underlying all of these systems is that most of the people are going to be compelled by the offered rewards to follow the rules. Even if a lot of people aren’t following the rules, they’re probably breaking them in different ways rather than working together. In a 51% attack, that assumption is broken as most, or at least enough of the network is overcome by bad actors who aim to rewrite reality in their favor. It’s a real problem, one of the biggest blockchains face, especially less popular ones… But even if you could pull one off, the outcome might not be as bad as many fear. But what is actually at risk? What’s possible and what’s safe? Tune in to find out. Photo by Hasan Almasi on Unsplash

  • SoB #445 How Does Kraken's New Crypto Bank Work?
    The Original Let's Talk Bitcoin Show
    29:19
    Technology
    0

    This week Kraken Financial became the first crypto company to receive a banking charter under Wyoming's Special Purpose Depository Institution statute. Join CEO David Kinitsky for a look at what it all means and how it'll work with hosts Adam B. Levine, Andreas M. Antonopoulos and Stephanie Murphy. This episode is sponsored by Crypto.com, Bitstamp and Nexo.io.

  • New Episodes Releasing as "Speaking of Bitcoin" for a while
    The Original Let's Talk Bitcoin Show
    01:21
    0

    Adam B. Levine provides an update on why the show is temporarily changing its name while sorting out trademark confusion.

  • OLTB #444 The Remedy to ICOs w/Kevin Owocki
    The Original Let's Talk Bitcoin Show
    45:41
    Technology
    0

    In this episode of the Original Let's Talk Bitcoin Show, open source developer and Gitcoin creator Kevin Owocki joins Andreas M. Antonopoulos, Stephanie Murphy, Jonathan Mohan and Adam B. Levine for an in-depth discussion on modern fundraising. Find Kevin on Twitter: https://twitter.com/owocki GitCoin project page: https://gitcoin.co/ (This episode was recorded in late July) OLTB #444 features music by Jared Rubens and Gurty Beats, with editing by Jonas.

  • OLTB #443 Improving Bitcoin Privacy w/ Chris Belcher
    The Original Let's Talk Bitcoin Show
    41:02
    Technology
    0

    On today's episode of The Original Let's Talk Bitcoin Show, we're talking privacy on the bitcoin blockchain with special guest developer Chris Belcher, inventor of JoinMarket and Electrum Personal Server. You can find Chris Belcher... at https://twitter.com/chris_belcher_ and https://github.com/chris-belcher Today's episode features Chris Belcher, Andreas M. Antonopoulos, Stephanie Murphy and Adam B. Levine with music by Jared Rubens and FromEther. This episode was edited by Jonas and if you have any questions or comments, email [email protected]

  • OLTB #442 Lessons From Zimbabwe's Latest Hyperinflation
    The Original Let's Talk Bitcoin Show
    01:09:00
    Technology
    0

    On today's episode of The Original Let's Talk Bitcoin Show, hosts Adam B. Levine, Andreas M. Antonopoulos, Stephanie Murphy & Jonathan Mohan sit down for another wide-ranging discussion. In this episode we'll discuss the philosophical differences behind recent turmoil over the supply of ETH, lessons to be learned from Zimbabwe's most recent bout of Hyperinflation and how the prevalence of Mobile Money impacts things this time around and more. This episode is running without sponsors and features a special update for long time listeners about the show's new name (The Original Let's Talk Bitcoin Show) and how you can help us orient for our next 8 years. Today's episode features Adam B. Levine, Andreas M. Antonopoulos, Stephanie Murphy and Jonathan Mohan with music by Jared Rubens and Gurty Beats. This episode is edited by Jonas and the album art features modified images from Jeremy Pagden and Alex Steyn, both of whom can be found on Unsplash.com If you have any questions or comments, send us an email at [email protected] And we'll be back next week with more episodes of The Original Let's Talk Bitcoin Show

  • LTB E441 Paypal, Banks and Real Life Infrastructure Inversion
    The Original Let's Talk Bitcoin Show
    50:58
    Technology
    0

    Join Adam B. Levine, Andreas M. Antonopoulos, Stephanie Murphy and Jonathan Mohan for another wide-ranging discussion on the messy reality in which bitcoin and blockchains intersect real life. For those of you who haven't already taken the time, please subscribe to the new show feed at http://ltbshow.com. We're changing up our distribution as the show gets ready for our next marathon of growth and we want to make sure you don't miss any episodes. On this episode we discuss the significance of a recent, seemingly innocuous letter released by the Office of the Comptroller of the Currency... The now-completed cycle of corporate adoption as a differentiator to the biggest countries and companies in the world getting involved out of fear their competitors will steal a march on them and more. Shownotes: Caitlin's twitter thread https://twitter.com/CaitlinLong_/status/1286226852244160512 Preston's twitter thread https://twitter.com/prestonjbyrne/status/1285984029154648064 Andreas's talk on Infrastructure Inversion https://www.youtube.com/watch?v=5ca70mCCf2M Original PayPal article https://www.coindesk.com/paypal-venmo-to-roll-out-crypto-buying-and-selling Now-Deleted Twitter Thread on PayPal internal decisionmaking re: Bitcoin buy/sell https://webcache.googleusercontent.com/search?q=cache:7Cd6geXrYHcJ:https://twitter.com/hodl_american/status/1275231405790728193+&cd=1&hl=en&ct=clnk&gl=us Credits: This episode featured Andreas M. Antonopoulos, Stephanie Murphy, Jonathan Mohan and Adam B. Levine with editing by Jonas and music by Jared Rubens.

  • LTB E440 Bitcoin, Decentralization and the Twitpocolypse
    The Original Let's Talk Bitcoin Show
    48:30
    Technology
    1,225

    In the aftermath of a major Twitter compromise that impacted a broad swathe of the largest, most influential accounts, join Andreas M. Antonopoulos, Stephanie Murphy and Adam B. Levine for a dive into the crazy series of events, what impact it has on bitcoin, decentralization and more. This episode is sponsored by eToro.com and The Internet of Money Volume 3. Subscribe to Let's Talk Bitcoin! at www.LTBSHOW.com to make sure you never miss an episode. Photo by Sara Kurfeß on Unsplash

  • LTB E439 Bitcoin Only Matters Because the Game Is Rigged
    The Original Let's Talk Bitcoin Show
    44:46
    Technology
    0

    The episode is sponsored by eToro.com and The Internet of Money Vol. 3 On today's show we're going back to basics. While bitcoin and digital bearer assets in general are an incredibly important technology, the reason they're likely to be important to the future has little to do with the token and everything to do with the context surrounding them: The world we live in every day, where government controlled money is abused for the benefit of the few and to the detriment of the many. * * * "Bitcoin is a way of achieving consensus. And consensus is a way for a bunch of people who may disagree on things to agree to a singular fact that they then execute, so imagine if Congress actually had bipartisan support to unilaterally pass a bill every ten minutes... That's basically what's occurring in Bitcoin. There's nothing more political than money because money affects everything else, and yet Bitcoin works. I think there's a lot of people looking at trying to reform the governance structures of the places that they're in, what they really should be doing is looking at things like Bitcoin and frameworks using blockchains to say "OK, how can we come to consensus over this or that governance issue of which money would be one... But I think the most transformative and phenomenal thing it'll do is, Nakamoto Consensus and then just blockchain governance writ large is a phenomenal way to have self governance. We see these breakdowns and these desires to federate cities and the way decisions are made, [but] maybe rather than turning to a government based political solution, a community based solution using something like a blockchain would be something with a lot greater staying power and impact." - Jonathan Mohan Topics: Who is the economy still working for, and who is it not serving? What’s wrong with money that makes alternatives attractive? Why and how is Bitcoin disconnected from the current system? What’s the value in the US and western Europe compared to the value in less developed parts of the world? What role does speculation play in the story of bitcoin? Bitcoin’s been around now for more than ten years. Are we on track to make a difference? What’s the normal adoption curve for disruptive or revolutionary technologies? What IS a disruptive or revolutionary technology? Who is bitcoin potentially disrupting? Does being part of the bitcoin community make you politically affiliated, or represent a distinct political viewpoint? Credits This episode of Let's Talk Bitcoin features Stephanie Murphy, Andreas M. Antonopoulos, Adam B. Levine and Jonathan Mohan. Music provided by Jared Rubens and Gurty Beats, with editing by Jonas. Photo by Macau Photo Agency on Unsplash

  • LTB #438 Bootstrapping Mobile Mesh Networks with Bitcoin Lightning
    The Original Let's Talk Bitcoin Show
    50:41
    Technology
    0

    On today’s episode of Let’s Talk Bitcoin! you’re invited to join Andreas M. Antonopoulos, Adam B. Levine, Stephanie Murpy and special guest Richard Myers for an in-depth look at the past, present and future of ‘Mobile Mesh Networking’ technology and the open source LOT49 protocol built on top of lightning. Just as cryptocurrencies like Bitcoin don’t rely on static infrastructure and professional providers, mobile mesh networking allows the creation of inexpensive, high range, low bandwidth and power consumption ad-hoc networks that’ll let your phone send text messages or even bitcoin lightning network micro-transactions, even in areas with no coverage. According to Richard, Bitcoin’s Lightning is a what’s needed to make mobile mesh networks catch on by bootstrapping on top of the payment routing infrastructure. “…the Lightning network currently sends payments from A to B to C and then all those intermediate nodes can connect a small fee if the payment is delivered at the end. All we’re doing is saying ‘Not only [can you send] a payment, but [you can send] a small message. In our case it’d be a SMS message. So you’re sending an SMS message along with a Lightning payment from A to B to C to D, and when D receives that message they return proof that it was delivered and that’s what flows back through the network. In the Lightning sense, that’s your pre-image. It’s computed from the message, that’s how the nodes are able to collect payment even if they lose touch with the original person who sent it.” But the way the Lightning network uses data natively isn’t ideal for mobile mesh. The open source Lot49 protocol is another layer on top of lightning that Richard says is necessary to make it work at scale while using mesh devices as an extremely low-bandwidth TOR-like privacy layer. “In many ways we’re not making a new protocol, we’re literally using lightning. Lot49 is custom communication protocol that’s optimized for mesh. For example, right now there’s a 1300 byte onion that’s used to route messages over the internet and that’s very important because you lose a lot of privacy… you lose all your privacy… if you were to just send messages over the internet without onion routing. We’re sending over more or less a physical TOR network since it’s going from node to node, not through a central ISP who can associate who you’re trying to pay. We’re also doing it over a low bandwidth network, so if you were sending 1300 bytes it may not sound like much in the age of the internet but we’re talking about devices that [have a maximum data transmission capacity of] about a kilobyte a minute so that’s a significant amount of the bandwidth that you have [tied up just in the web’s onion routing] So for example with LOT49, we take out the onion and we use the native routing at the mesh device [level] which is optimized for mesh communications. And there’s a few other little changes we make like that in order to reduce the bandwidth by chunking up messages… the ultimate goal is to minimize the lightning protocol overhead so that there is more bandwidth available for data… For things like sending an SMS and as bandwidth increases there may be things like internet protocol…” Credits This episode of Let’s Talk Bitcoin features Stephanie Murphy, Andreas M. Antonopoulos, Adam B. Levine and Richard Myers. Music provided by Jared Rubens and Gurty Beats, with editing by Jonas.

  • LTB #437 Be Your Own Bank and the Luxury of Apathy
    The Original Let's Talk Bitcoin Show
    49:54
    Technology
    0

    The episode is sponsored by eToro.com and The Internet of Money Vol. 3 On today's episode of Let's Talk Bitcoin! you're invited to join Andreas M. Antonopoulos, Adam B. Levine, Jonathan Mohan and Stephanie Murpy for an in-depth discussion about the ups and downs, the good and the bad about being your own bank in the modern world of Bitcoin. The powerful idea and meme at the core of Bitcoin self-sovereignty is incredibly empowering but has an unspoken element that requires persistent competence and at least for some makes it more trouble than it's worth. As the world reels from the response to COVID-19 and disorder seems the trend on the rise, we discuss how although Bitcoin makes it possible for anyone to be their own bank, who actually wants the constant vigilance and anxiety that goes along with it? And what happens when things go wrong and there's no-one to blame but ourselves? "...There is tremendous luxury in having institutions that at least appear to be stable over some period of time where you don't need to worry about the details of how they work and what happens under failure conditions. That luxury is pretty concentrated in just a few places in the world and at some point you can't afford that luxury of apathy. - Andreas M. Antonopoulos, LTB! #437 Credits This episode of Let's Talk Bitcoin features Stephanie Murphy, Jonathan Mohan, Andreas M. Antonopoulos and Adam B. Levine. Music provided by Jared Rubens, FromEther and Adam B. Levine, with editing by Jonas. Photo by Pathdoc on Shutterstock

  • LTB #436 We Need 30 Different Words for Censorship
    The Original Let's Talk Bitcoin Show
    36:31
    Technology
    0

    'The best Sundays are for long reads and deep conversations. Recently the hosts of the Let's Talk Bitcoin! Show gathered to discuss state sponsored propaganda, corporate censorship and how cryptocurrency or decentralization changes the game. The rallying cry of the totalitarian is "He farted first", but if both systems have produced similar outcomes, is there much of a difference? Inspired by a recent article in the Atlantic, in today's wide-ranging discussion the hosts of Let's Talk Bitcoin! dig deeply into the questions of censorship, propaganda and how things are both better and worse than in years past. The episode is sponsored by eToro.com and The Internet of Money Vol. 3 Full shownotes (Not enough room on Soundcloud) at https://www.coindesk.com/we-need-30-different-words-for-censorship-feat-andreas-m-antonopoulos Credits This episode of Let's Talk Bitcoin features Stephanie Murphy, Jonathan Mohan, Andreas M. Antonopoulos and Adam B. Levine. Music provided by Jared Rubens and Gurty Beats, with editing by Jonas. Photo by Sebastiaan Stam on Unsplash

  • LTB! #435: Bitcoin Miners, US Energy Producers and Moores Law
    The Original Let's Talk Bitcoin Show
    30:45
    Technology
    1,801

    Although some believe bitcoin mining is a wasteful activity, on today's show we dig into the relative world of constant fuel production, lumpy demand and bitcoin based load balancing. After years of bitcoin mining domination by china-based miners, some US power producers, both professional and incidental, are beginning to get into the game as a way to be more green. It's a narrative reversal if ever we've seen one and if proven successful by the early players could change the bitcoin mining landscape as we know it. But even without a "Green Bitcoin" narrative in the US, one of China's two major mining advantages has evaporated as Moores Law stretches out the useful lifespan of modern bitcoin miners hardware. Correction: Before installing miners, Greenidge Generation previously shut down during off-peak season, during the episode Adam incorrectly stated that it previously shut down during off-peak hours. Today's episode features Andreas M. Antonopoulos, Stephanie Murphy, Jonathan Mohan and Adam B. Levine This episode features music by Jared Rubens and Gurty Beats. Today's show is edited by Jonas, and sponsored by eToro.com Photo by Thomas Kelley on Unsplash

  • LTB #434: Lightning Network Messaging, Political Expediency and What Crisis Has Revealed
    The Original Let's Talk Bitcoin Show
    49:48
    Technology
    0

    On today's show we've got a pair of interviews for you. First we speak with John Cantrell, the author of Juggernaut, a new messaging layer 3 application being built on top of layer 2 lightning network, which is itself built on top of layer one bitcoin. It's a lot of layers, but as a technological concept currently in beta it's a fascinating project, and we talk about it. (Juggernaut on Github) After the break we're joined again by Alex Gladstein of HRF.org for a discussion on political expediency in the age of pandemic and what crisis has revealed about various governments, and different types of governments around the world. Alex is one of my favorite returning guests, with his global human rights focused work taking him to some of the most interesting and most oppressed places around the world "What's interesting is that citizen journalists I know in Taiwan have pressed the government on this and they've gone to parliament and it's all on record, and they've said 'Have these (...) digital contact tracing or cell phone surveillance things been useful?' And the governments said "Only in one case.... Only in one case was this sort of mass surveillance approach been useful', so they've actually been honest with the people... But at the end of the day it does teach us that even the most progressive governments are going to be lured by the sirens call of using surveillance to tackle problems." - Alex Gladstein, Chief Strategy Officer HRF.org This episode of Let's Talk Bitcoin is sponsored by eToro.com and features content from John Cantrell, Alex Gladstein and Adam B. Levine. Todays show features music by Jared Rubens and Gurty Beats with editing by Jonas. Album Art original photo by Goh Rhy Yan on Unsplash

  • LTB #433 Coronavirus Impacts and Improving on Bitcoin With BitTorrent Creator Bram Cohen
    The Original Let's Talk Bitcoin Show
    01:03:07
    Technology
    0

    In Today's discussion we'll briefly talk about some of the knock-on, or second order affects which the coronavirus disruption is having on our world today, and which may continue into the future. Then for the meat of the show we'll dig into specific areas where bitcoin could, or perhaps is being improved with the creator of one of the most impactful peer to peer technologies in the world today. Shownotes for LTB! #433 Topic 1 - Second Order Impacts of Coronavirus Lockdowns Social distancing and the revenge of the Hikikomori Coronavirus second order effects It’s an extroverts world but we’re all introverts this month The AOL moment for Zoom meetings and arguing the potato Interpersonal compression, zoomers and enforced quality time Will overall deaths go down because of pandemic lockdowns? The end of “Bus Mode” for Lyft and Uber Autonomous vehicles, grocery deliveries and the last mile problem Tampons, cocktail sausages and a very weird month This episode is sponsored by eToro A friendly government delivery service? Opportunities in sterilization and social changes that’ll last Automated cleansing cycles and Far-UVC Internet infrastructure, Netflix social signaling and the recycling dilemma Masks, headphones and the changing standard of social isolation TOPIC 2 - How the creator of BitTorrent thinks he’s created a less wasteful, more distributed, more secure approach to Nakamoto Consensus Decentralized systems and the critical success of BitTorrent Naming projects, vegetables and a list of grains Proof of Space and Time Warehouses of computers, competitive money burning and Keynesian stimulus Proof of Work works and that’s a huge accomplishment, but could be better Centralization, Nakamoto consensus and Proof of Stake Moats and losing the battle with ASIC-hard consensus algorithms “Grinding attacks” as the competitive strategy Fundamental economics, storage capacity and the loophole Airdrops for something over-resourced and under-provisioned Losing money on buying “farming” hardware The early days of bitcoin mining with CPUs Power and CPUs, GPUs, FPGAs, and ASICs Hard Drives ,hard drives, hard drives and hard drives Storing data as proof, but not people's data is like Proof of Work; the work isn’t useful, it’s just a measuring stick that doesn’t need your name or a long term commitment Printing lottery tickets with ASICs vs. a hard drive full of bingo cards Proofs of Space need Proofs of Time Less wasteful by using an underutilized resource More distributed because excess hard drive capacity is already distributed and there is no “ASIC” equivalent possible for hard drives. Just better or faster hard drives More secure because less wasteful and more distributed equal better security in distributed consensus Breaking, tweaking and proving proofs of time and space Miners don’t run data centers UTXOs, message passing on-chain programming environments and walking a fine line between Bitcoin and Ethereum Rate limiting wallets and reversible paper wallets Improving colored coins Decentralized exchange doesn’t need decentralized exchanges Farming, pre-farming, farming rewards and trailing emissions Why pre-farm? Is it viable to farm with AWS? Carrying hundred dollar bills and Chia’s business model involves loaning Tokens To Large International Companies Covenants replicate many banking system benefits without requiring banks or centralization Complexity, Bitcoin Script and Protocol Level Improvements This episode was sponsored by eToro.com, with music by Jared Rubens, Gurty Beats and Adam B. Levine. Today's show featured Bram Cohen, Andreas M. Antonopoulos, Stephanie Murphy, Jonathan Mohan and Adam B. Levine with editing by Jonas.

  • LTB! #432 How MKRs Stablecoin Survived the Crash, Smart Contract Bugs and Full Decentralization
    The Original Let's Talk Bitcoin Show
    48:27
    Technology
    0

    In the aftermath of the so-called "Black Thursday" crash from several weeks ago, MakerDAO's "DAI" ethereum backed dollar pegged stablecoin came untethered and was, for a time at least, functionally insolvent. In the aftermath, holders of the MKR token which allows holders to participate in governance decisions opted to do a couple of things, including adding the centralized stablecoin USDC to the list of acceptable collateral, which drew both condemnations mostly around centralized risk being added to the system and praise for making the system more robust against sudden ETH collateral price crashes. And now most recently, the Maker Foundation which had held some centralized control over the protocol completed their long-planned exit with all authorities now transferred to the holders of MKR tokens, removing both a point of control which had been used as a safety check and a point of risk in that centralized control can be co-opted and used to disrupt a system as we've seen in other examples. On today's show we're digging into: What is Decentralized Finance (DeFi)? How does decentralized finance differ from traditional banking? Fractional reserve vs over-collateralized loans Liberty Dollars’s missing collateral and USDC’s risky name MakerDAO, DAI dollar-pegged stablecoins and how this DeFi stablecoin actually works SDAI (Single Collateral DAI) vs. DAI (Multi Collateral DAI) Smart contract ‘vaults’ Lending money to yourself: 150%, 300%, insurance and auctions What happened on ‘Black Thursday’ as the price of Ether dropped more than 50% What happened when transaction fees went through the roof A bug in the collateral auction smart contract A surprising crash: as the system became functionally insolvent the price of the dollar pegged stablecoin actually went up. Oasis.app vaults are transparent and pretty interesting, take a look! Loaning yourself money using your ether (at interest) How MakerDAO’s approach differs from SALT Lending The other half of the DAI system: saving vault smart contracts DAI Saving Rate (DSR) and the new certificate of deposit The reward for using MKR tokens to administer a good system Can savings vaults be liquidated? Smart contract risks, consensus risks, systemic risks and response time risks Sponsors: eToro.com and Purse.io What specifically went wrong with the auction smart contracts? Recapitalizing the system by diluting MKR governance stakeholders Even with bugs, market mechanisms to fill the solvency hole seemed to work better than government bailout equivalents. Completing the transition from foundation-overseen to full tokenized governance. Decentralization transition - A necessary step or a natural one? Single collateral vs. Multi-collateral stablecoins Why would a decentralized stablecoin want to allow a centralized stablecoin for collateral? External political risks vs. internal technological risks “Life finds a way” and DeFi’s natural circuit breakers (also Mt.GOX) Whats the point of putting USDC in to get DAI out? How does DeFi stablecoin insurance work? A modular ecosystem How DeFi and traditional finance are similar DeFi vs. 2nd layer protocols See also: Bailouts, Bitcoin, Disruption, Failures and Hope Credits Hosts: Adam B. Levine, Andreas M. Antonopoulos, Jonathan Mohan & Stephanie Murphy Sponsors: eToro.com and Purse.io Music: Jared Rubens and GurtyBeats Editing: Jonas