Opinion: What is important is the function of cryptocurrencies we have lost sight of along with Satoshi
Material posted: Publication date: 21-01-2018
Daniel Jeffries, one of the authors of the website Noon Hacker, futurist and thinker, in his article Why Everyone Missed the Most Mind-Blowing Feature of Cryptocurrency , talks about what the most important feature of cryptocurrencies we used not to pay attention and what happens if we activate it.

There is one outstanding feature of cryptocurrency, which seems to be overlooked almost everything, including Satoshi Nakamoto. However, this feature really exists, and it is gaining force like a distant storm in the sea, which is gradually approaching the shore.

This invisible feature is not yet active. However, when this function is activated, it will shake the whole world and rebuild all aspects of human society. To understand, about what speech, it is necessary to recall the history of money.

The ascent of money

Money is power and power. And no one understood this better than the rulers of the ancient world. That's why they gave themselves an absolute monopoly on coinage of money. They turned shiny metal in coins, to pay for the service of their soldiers, and the soldiers were buying things in local stores. Then the Governor passed through the soldier dealers the following message: "Pay taxes in this coin, otherwise we will kill you."

In this paragraph — almost the entire history of money. Coercion and control of the business through violence — what can be called a violent invasion to control everything.

With the transfer of power from monarchs to the national States, in fact, there was a transition of power from one strong man to a small group of powerful people, and the right to print money transferred to the state. Anyone who's tried to create its own money, destroyed.

The reason is simple: "beheading the snake" — a sure way of destroying the centralized enemies. So there were those who dared to challenge the authority of the state and almost divine right to create coins.

That's what in 2008 happened to e-gold is one of the first attempts to create an alternative currency. The system, launched in 1996, and by 2004 numbered more than one million accounts, and its at the peak in 2008 it processed transactions amounting to more than $2 billion.

The US government made the attack on four leaders of e-gold, presenting their allegations of money laundering and conduct of business "unlicensed money transfer". The case has got a big name "U.S. V. e-gold, etc.". The company was destroyed, bankrupt its founders. The verdict of the leaders of e-gold was not severe, but it was enough to finish the game. Although the government technically is not closed e-gold, practically it was the end. "Unlicensed" is the key word in this attack. The power to issue licenses is monopoly power.

E-gold could apply for a licence for cross-border remittances. Only she wouldn't be able to get it. Of course, the company was thrown out of business. Such a scenario is activated every time when it pleases the rulers. Kings and nation-States know the real Golden rule: Control the money and you control the world.

This story is many thousands of years. The first Emperor of China Qin Shi Huang (260-210 BC) abolished all existing forms of local currency and introduced a uniform copper coin. Since then it has become a ready-made recipe: will destroy alternative coins; you create one to rule them all; use violence and blood to maintain their power at any cost.

In the end, almost any system is vulnerable to violence.


Have a decentralized system there is no head that can be cut off. A decentralized system is not a snake but a Hydra. Cut off one head, you will see that a few others will be ready to take this place.

In 2008 an anonymous programmer, working in secret, figured out how to solve the problem of violent incursions once and for all, and wrote:

Governments are well able to cut off the heads of centrally controlled networks like Napster. However, p2p networks like Gnutella and Tor seem to be holding up, for now.

It was the first decentralized monetary system, bitcoin. Obviously, it was designed in order to resist coercion and control by centralized authorities. Satoshi Nakamoto, apparently, for this reason decided to remain anonymous and did very wisely. He knew that his head will come, because he was the symbolic "head" of bitcoin.

It happened whenever someone said that he is Satoshi Nakamoto, or when the media "found" the mysterious Creator of bitcoin. When there was a "fake Satoshi" named Craig Wright, Australian authorities immediately raided his house. The official reason for the RAID was contrived, and the true intention was to "behead the snake."

The growth rate of bitcoin the hunt for Satoshi will only increase. He controls at least a million coins that never left his wallet. If a venture capitalist Chris Dixon is right and the rate of bitcoin will reach $100,000 for a coin, then these millions of coins will be worth $100 billion And if bitcoin reaches $1 million Satoshi will be the world's first trillionaire. And this leads to the fact that the mechanism of suppression will begin to work even harder and faster. You can be 100% sure that he at any moment will be ready to deploy this operation.

Wherever he was, my advice for Satoshi is the following: Stay anonymous till you die!

However, the ability to resist censorship and violence is only one of many functions of bitcoin. Many of these key components are already working in other cryptocurrencies and decentralized applications, particularly in the blockchains.

Blackany is distributed registries and the third factor in the world's first accounting system of triple entry. And breakthroughs in accounting has always been a surge of economic growth.

Triple entry, decentralization, and resistance to the violent invasion is also not all that capable of cryptocurrency, and this is their true power. It's just the system mechanisms, due to which cryptocurrencies survive and thrive, providing new possibilities to mankind.

A key feature of bitcoin and other cryptocurrencies are still hidden from the public, despite some hints.

The true power of cryptocurrency is the ability to print and distribute money without the participation of centralized power.

Maybe this feature seems obvious and even implemented, but I assure you it is not. Especially in the sense of distribution. The power has always belonged to the rulers and nation States, which were "God's anointed" and enjoyed appropriate rights. To the current moment.

Now it's right back to the rightful owners: the ordinary people. And it opens doors for them world of trade, sowing the seeds for the economy of abundance in the spirit of "Star trek" and sending the old world order with its economy of resource scarcity on the pages of history books.

There's only one problem. No one has created a cryptocurrency which we really need. Satoshi understood the first part of the statement — about the power to print money. What he didn't count on is the ability to distribute this money.

The second part is the most important in the puzzle. It gave rise to a critical flaw in the bitcoin ecosystem. Rather than distributing the money as widely as possible, bitcoin was just replaced by Central bankers at a group of miners for whom no one voted.

For many years, these miners undermine the bitcoin ecosystem: do not miss this important software updates like SegWit threaten meaningless hardforum, sow fear, uncertainty and doubt to get their hands on more coins at a reduced price.

What if there was another way? What if you could create a system that forever changed the economic landscape of the world? The key point is the distribution of money directly at the time of their creation.

And the very first group that will understand and implement, can change the world.

To understand why, you need to see how money is created and put into the system today.

The great pyramid

Today, the money originate somewhere at the top and flow down to everyone else. Imagine it as a pyramid.

No wonder the great pyramid with all-seeing eye depicted on the dollar.

One of the most hackneyed arguments against bitcoin is that it is allegedly a pyramid scheme. The creators of classic trading pyramid attract more losers, paying them rather attract new suckers than the sale of goods or services. In the end, the people who might join such a system over, and she collapses like a house of cards. In fact, pyramid schemes attracting initial investors about the return on investment, the same thing happens: subsequently, they lured an increasing number of new suckers, admiring the "huge income".

However, the irony is that Fiat currency, that is government money, such as yen or dollar, closer to pyramid scheme than bitcoin. Why? Because Fiat money minted in the top part of the pyramid Central banks, and then get the smallest amount, all the rest.

The problem is that the money flow is not very good.

The money goes through big banks, which either give them a loan, or give in return for labor. In fact, getting a job or loan are the main ways to get money for those who are in the lowest part of the pyramid. In other words, these people sell for money, its current time (at work) or your future (by getting credits). When you have a man time is a limited resource, and sell it only until then while it will not end.

Let's imagine the economy as a game. Any person in the system is the player seeking to maximize their advantage and the advantage of his team (the company of family and friends, etc.) for the purpose of receiving more money. However, to start the game, you first need to allocate the money, otherwise no one will be able to play. The distribution of money is like the definition of the boundaries of the playing field.

So, if you were in charge of the money, how would you distribute them online? Would you want to keep to themselves and therefore to set the rules that maximize your benefits. Yes, that is what you want to do! This is something that would make anyone who is of sound mind, — maximize its power and kept it as long as possible.

What did the kings and Queens of the ancient world, and this is what States are doing today. As said Navale Ravikant in his epic series of tweets about the blockchain, today's networks are operated by "kings, corporations, aristocrats and gangsters," and "the rulers of these networks — the most influential people in society."

That's why all system in the world distributes money only one way — from TOP to bottom.

Because it maximizes the benefits of of kings and bandits at the top.

Unfortunately, this means that most of the money never leaves the upper part of the pyramid. They remain there as frozen and lost potential that is never realized. Too little incentive for the movement of money. Since money is power, the accumulation of like the accumulation of greater power, and no one will give up that power willingly.

In other words, the money game in real world begins with the manipulation. We need a way to restart the game.

So far our prospects in this respect look quite dull.

For example, we could adopt a law on universal basic income (UBI). In addition, each person could get the flow of money to put it on the playing field and get more opportunities to participate in the system. The participation of more people in the system would unlock all kinds of hidden and untapped value.

How many great inventors have failed to make another breakthrough, because they lived in the daily routine of working seven days a week to feed a family? They carved out for themselves free time and did not see a clear way out of debt. How many great writers have gone to the grave without writing his great novels? How many scientists have not discovered a medicine for cancer or heart disease?

Problem with implementation of all previous plans, from UBI to socialism (when higher taxes are levied on the rich people, the money and benefits in the game were distributed more evenly), is that correct distribution of money is impossible after they have already found their owners. People who already got money, rightly opposed to its redistribution. Margaret Thatcher, said about this:

The problem with socialists is that eventually they run out of other people's money.

But what if the money has not been distributed? What if there was no need for anybody to take money?

This is the lost property of all of today's digital currencies. Cryptocurrencies create new money. Unlike financial institutions in the credit market, which are usually just pretending that they can increase the money supply, systems, cryptocurrency really print money. And they don't give them to people in debt — they give them for network maintenance.

It's like microloans themselves without loans.

Pile Ravikant said:

Society gives you money because you give it what it wants. Blackany give you coins because you give it what it wants.

Maybe there is a better option than to give all the money to a small group of miners? There is a much better.

There is a project Cicada that flips the idea of mining turned on its head. According to him, all network members shall be miners, and each participant in the network should be no more than one miner. The miners in this system are chosen at random and ensure smooth operation of the network. They go about their business, walking and drinking coffee while their phone does not signal that you need a few minutes to work for the benefit of the network. Soon after, he again "falls asleep". As a reward people get new coins for being on their phone at the time it was installed the appropriate application. Simple, isn't it?

Because everyone is involved, everyone gets paid and in fact are in the system, like UBI, now.

And this is just one of the ways. I can think of dozens of others. And don't think identification will be required: pick up randomly can do without it. The main thing — to liberate the mind from what was proposed by Satoshi, and come up with something new.

We need to ramificati wide distribution of money at the time of their creation!

The money can be distributed as remuneration for the use of applications or as distributed to the Commission for mining or as a fee for mining to organizations that provide the value of the network — and this is only the tip of the iceberg. There are thousands of ways, we just used to look at the problem incorrectly.

In other words, we all missed it, what the real power the brainchild of Satoshi Nakamoto: it's the right distribution of money.

The first system that will be able to ramificati the distribution of money is guaranteed meteoric rise, and it will radically change the current system for the better. "Primary game field" will be set dynamically, allowing you to compete successfully for those people who previously could not participate in the game. The more players, the more effective and valuable will be the network itself.

The networks should be "network effect", and the addition of each new member increases the value of the network for all participants.

While we are not adding new members in the network of the future fast enough, and these systems are still vulnerable to violent invasion. Gamification of money can lead to exponential growth.

If the system can quickly grow to quite a large size in a relatively short time, it is likely to become uncontrollable giant, and all the rest of the economic space is to adopt the new playing field, that is, to accept its rules of the game.

When the playing field will be joined by giants such as Amazon and Google, their survival instinct will force them to take care of this field. And this new network will behave differently. Instead to reward only the people at the top, which always drew the rules in their favor, the game will completely restart with a new set of rules.

The result will benefit the entire network and not only a narrow circle of people at the top.

The blockchain is a new invention that allows deserving members of the open web to manage it without any chiefs and intermediaries. Blockchain protected from unauthorized access, opened based on voting and is able to consider the merits of the users. Honored users are those who work for the benefit of the network. Open and honest blockchain markets will replace those networks, which had previously been ruled by kings, corporations, aristocrats and gangsters.

Participants who join the network and help it grow, will prosper along with it. It will also increase their own value. Even small contributions to the system will be rewarded.

Conversely, economies that try to harm this new network, will pay a high price. The system would stretch around the world, but in the end will take root only the most important rule, because the updates of a distributed system requires universal consensus. As people can agree upon is really essential for all issues, harmful and senseless rules will be doomed to failure.

Suppose that the government decides to restrict the ICO for its citizens or to make cryptocurrencies illegal. It won't kill the network, but will strongly affect the creators of such rules. Affected only the citizens of this state, as they, for example, will not be able to use the potential of the ICO, and the money will go to a competing economy. And if the government will make cryptocurrencies illegal, they just go underground and the Treasury will receive less tax.

With the spread of this system to the people back in control of their own financial power. No one can Rob people of their money. And that's good.

Of course, not all think so. Some people think that people will use their power to harm and to commit crimes. However, bad things and bad people always were and will be. To adjust them the whole system is madness. This approach has never worked and will not work again.

There are people who will never believe in a new system.

They implicitly trust the Central authority. Enough to provide a convenience argument (child protection or the fight against terrorism — does not matter) and half the time to fool half the population, promoting her most terrible form of government.

However, I found that the people who are looking for answers to all the questions in a centralized system, usually a whole life lived in such a system in terms of stability. A few days of instability and their opinion is changing dramatically.

Don't believe me? Imagine that you live in Syria.

A centralized infrastructure is destroyed, you have no money. You don't want war, but there's nothing you can do about it. Your home gone, your friends and family died, your banks are being bombarded, and banish you. You're stuck: you have no home, no money. No one wants to help you, and everywhere you build obstacles. You never expect, you can't stay where you are, and you are ruined.

What would happen if your money continues to exist in the blockchain? You could download and restore your wallet, enter the passphrase and get access to their funds. How much easier it would be to start a new life!

Cryptocurrency finally give us the ability to control our own destiny. For the first time in the history of the world, we have a method to generate and distribute the money without the participation of the Central government. People will be able to control the money they rightfully earned.

And, even better, instead of playing with the original rigging we can make the game the way it should be: open and flexible competition rules in a dynamic system, where there is a place for everyone.

However, we need to be smart about this and find a way to distribute money in new ways, not taking them from other people. By doing this, we can forever change the global money game. A centralized money — it's a chain. Break this chain and you will free the world.

Source: https://coinspot.io/analysis/mnenie-kakuyu-vazhnuyu-funkciyu-kriptovalyut-my-upustili-iz-vidu-vmeste-s-satoshi/

Tags: finances , bitcoin