1ConfValue is a generalised way to reason about the cost of performing a double-spend event on a network and setting confirmation thresholds that are probabilistically safe.

This article is in the public domain. A PDF version of this article is available here.

Abstract

We present a concise method to determining reasonably safe confirmation thresholds for any proof-of-work chain for any amount of value transacted. We do this by assuming a double-spend attacker is a purely profit-seeking entity and will seek to invest the minimum amount of capital in an attack with sufficient risk thresholds and return on investment. We find that for a double-spend attacker to be the most capital efficient, they will rent and/or bribe existing 59% of the existing hash power and incur costs at least 2.88 times the value of a single block. Over sufficiently long settlement times, this asymptotes to be around 50% the block’s value to miners. We call this the “1ConfValue” and analysed this across multiple chains, finding that for most chains that since fees are negligible, the block value is essentially just the block subsidy. …


A closer look at ranking coins using the Volume-Weighted Cap (VWC) methodology.

In a previous blog I looked into Bitcoin’s Market Dominance, finding it dominates over 80% of the market with liquidity taken into account.

Feedback from the blog was collected:

  1. Formalising a method of using and displaying VWC
  2. Accounting for wash trading, aka, fake volume
  3. Analysing all 2000 coins, instead of just Top 100
  4. Considering a larger date range for market dominance

This follow-up article treats these four points.

1. Formalising VWC

Volume-Weighted Cap accounts for liquidity by simply including it as a multiplier.

VWC = Market Cap * Liquidity

  • Market Cap should be circulating supply * price ($).
  • Liquidity is any form of standardised liquidity metric ($). …

Analysing Bitcoin’s true market dominance, taking liquidity into account. A new metric, Volume-Weighted Cap, is derived and shows that Bitcoin has Pareto dominance (>80%) on the market.

Image for post
Image for post
CMC’s Market Dominance — a flawed metric

Browsing twitter recently I saw a tweet quoting Vitalik, the infamous founder of Ethereum, from some podcast:

I took the comment to be rather disingenuous, knowing that Vitalik enthralls at every chance to show mathematical edge. He seemed to be referring to CoinMarketCap’s “Market Dominance”, a metric fixated on by many, despite being based on “market cap” — a lamented metric. Market Cap on CMC is simply the market price multiplied by circulating supply, which many argue can easily be manipulated by things such as low volume, pre-mines and circulating supply malfeasance.

I immediately wondered if market share was some form of Pareto-distribution, “the law of the vital few, or the principle of factor sparsity”. Pareto Distribution is itself a form of Power Law, and is often observed in nature where the rule of equilibrium abounds. …


How to deploy and run a LNDHub instance on Mac OSX and connect to BlueWallet.

Requirements:

Let’s create a self-sovereign mobile lightning wallet using nothing but a Mac, a mobile phone and some software supplied by the fantastic open source community!

Image for post
Image for post

Step 1 — LND

1A — Download and set up Pierre Rochard’s NodeLauncher.

Setup guide here:


17m CAN (85%) of Founder Tokens will be re-locked.

Image for post

Overview

The CanYa ecosystem is powered by trust-minimized technologies, targeting the gig economy and capturing that value in the form of a single digital asset, the CAN token. This token has the following functions:

  • A unit of account for payments between users
  • A medium of exchange, solving the double coincidence of wants; the freelancer wishes to sell their service for money, whilst the client wishes to buy their service with money
  • A store of value — pegged to the USD price whilst held in escrow
  • A governance token allowing community members to share their input in a sybil-resistant manner
  • An incentive token to trustlessly pay out to entities contributing to the…

A quick review of 2018 and what to expect for 2019 and beyond

Image for post

The CanYa team have been hard at work in 2018. After 12 months here are some numbers we can hang our hats on:

CanYa — Some Numbers

Here’s a quick summary of the year:

Q1 2018

The team launched the token on 08 January 2018 on a number of exchanges, fulfilling the promise of early liquidity. In the preceding months the team worked hard to achieve the following:

  • Listing on over 10 exchanges
  • Debuted Trust Wallet’s first airdrop to about 10k…

A proposal to improve the allocative efficiency of the ENS domain system without losing investment efficiency by using an adapted Harberger tax with economic staking.

This blog proposes a potentially better system to the current ENS vickery auction style distribution method for ENS domains. It uses an adapted Harberger tax with demonstrable economic staking to more effectively allocate ENS resources.

Image for post
Image for post
ENS

Harberger Taxes; an intro

Harberger taxes are an economic system that attempts to have both optimal allocative and investment efficency. Property owners only pay tax on what they think their property is worth, but the price that they establish for their property, is the price that the property is to be sold at in the wider market. This allows the property to be easily re-distributed at fair market price.

Allocative Efficiency refers to the efficiency of a system to continually and optimally distribute goods and services, taking into account consumer preferences. Optimal allocative efficiency means that the marginal cost of a product equals its marginal utility. An example of this is land acquisitions — if a new highway that is set to benefit a wider community needs to be built through a section of land that is currently occupied by private owners, then ideally the land moves from the private owners to the public good. However, without a mechanism for the land to be fairly re-allocated, the original private owners can simply hold and prevent the highway from going ahead. …


TRUSTLESS PEER-PEER LENDING AND INVESTMENT WITH COLLATERISED DEBT

As we transition to a debt-free economy with the Bitcoin Standard; the question must be asked — is it possible to raise debt (loans) in order to invest? What will the future start-up entrepreneur do?

The solution is to simply tokenise oneself; or rather, tokenise one’s income and credit score. These tokens can be held as fractional ownership and can be used to raise debt — but the debt is always secured.

Overview

This blog proposes a smart contract implementation that allows anyone to tokenise themselves and receive deposits from others. These deposits are collaterised with transparent leverage, and are treated as both investments as well as loans to the token owner. Depositors earn a monthly earnout, that accumulates in collateral. …


Using the Lightning Network as a user

In the first part of this series I discussed how Lightning Network (LN) is making money programmable and setting the foundation for a world powered by digital, state-less, debt-free money. In this part I’ll discuss how individuals today and in the future will be using the Lightning Network.

Image for post

Part 1 The Lightning Network — Programmable Money

Part 2 — Using the Lightning Network as a user

Part 3 — Using the Lightning Network as a business

Part 4 — Using the Lightning Network as a country

Part 5 — When the world is powered by Bitcoin

In the future we will be able to use the LN for the following time of…


Uncovering the link between EOS and Tether.

Image for post
Image for post

Tether is a $2.7bn stablecoin cryptocurrency that is backed by $2.7bn in cash, secured on the Omni blockchain.

Full audit here (at time when Tether was worth $2.5bn): https://tether.to/wp-content/uploads/2018/06/FSS1JUN18-Account-Snapshot-Statement-final-15JUN18.pdf

Or is it?

The Premise of Tether

About

JP Thor

Bitcoin will be the global reserve currency. #buybitcoin https://twitter.com/jpthor__

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store