CoinGeek Conference 2020 | Satoshi Omoto: You have a misunderstanding about Bitcoin!

From February 20th to 21st, the CoinGeek conference was held in Old Billingsgate, London. This is the fifth CoinGeek conference.

According to official data, the conference brought together more than 800 people including Craig S. Wright, cryptographer Ian Grigg, economist and writer George Gilder, and Wikipedia founder Jimmy Wales. This conference can be said to be a feast for BSV, and BSV can also be said to be the sole protagonist of the CoinGeek conference.

In fact, both BSV and Craig Wright have been controversial in the crypto community. The founder Craig Wright is not recognized by most members of the crypto community. His self-proclaimed Satoshi Nakamoto is full of loopholes; but at the same time, the BSV community is very active and has an almost fanatical fan base. This controversy makes the outside world curious about BSV and Craig Wright.

On the first day of the conference, Craig Wright delivered a speech entitled "Satoshi Nakamoto: A Correct Understanding of Bitcoin", which clarified several of his beliefs that people have misunderstood Bitcoin. Beep News has reorganized Craig Wright's point of view as follows, I hope you like it.

I am honored to be able to speak in front of so many people. We have witnessed the development of the industry in the past few years, and thank you all for your presence. I want to talk about my original intention of writing the Bitcoin white paper, because everyone has misunderstood many of the contents.

01. Without identity information, you cannot sign

First, what is a digital signature?

Digital signatures have been legalized in the UK for several years. A digital signature is a digital signature.

What is a signature? Signing is a legally binding act. To sign, you need to have an identity.

We talked about Bitcoin, in fact, Bitcoin applies to many laws.

For small transactions, such as £ 500 and transactions under $ 500, no identity verification is required. You do n’t need to verify your identity when you buy coffee and pay for your meal.

But if you want to buy a car, you can't buy a new car without providing driver's license information and identity information.

For those who do digital gold trading, trading gold requires AML and KYC.

Suppose you want to transfer $ 100,000 worth of gold, then you must provide identity information, otherwise, you are not considered legally held. The same is true if you are transferring $ 100,000 worth of Bitcoin, Ethereum, Monero.

So without identity information, we cannot do electronic transactions. This is why Section 10 of the Bitcoin white paper talks about “identity”.

02.Bitcoin network allows users to manage their own identity information

It is important that people control their privacy (identity information).

There has been a hacking incident in which about 100 million user identities were stolen. The reason why hackers do this is because an identity value is about 7-11 US dollars. If a hacker steals 100 million such identities, they can get a lot of money.

Hackers obtain this identity information by attacking trusted third parties.

(And the Bitcoin network allows users to hold their own identity information)

When you have your own identity information, it is almost impossible for a hacker to steal the identity information of 100 million people because he needs to attack every user.

Therefore, Bitcoin is a tool for security and privacy.


03. The Bitcoin network is used for small transactions

Signing is actually meaningless for small transactions.

No one will track 3 cents (the whereabouts of small funds). If someone steals 3 cents from you, you will definitely not go to the police, at most you will no longer use that site, or remind your friends that this site is a scam; no one will make a website to attack for 3 cents Other users. Considering the cost of time and energy, I don't think anyone will steal small funds. So, for small transactions, we don't need middlemen.

The Bitcoin network is designed for small transaction scenarios.

The Bitcoin network allows users to keep their own identity information. In other words, when you buy things with Bitcoin, you are protected. If someone steals your Bitcoin or other assets, this will be broadcast (to the entire network), and the stolen funds will be worthless (invalid). When the police track your stolen funds, and you get the money back, the money will become legal again.

The second term I want to explain is "Trusted Third Party".

Bitcoin is not getting rid of all the middlemen.

The presence of a middleman makes sense, it makes operations more efficient and enables accountability. Trusted third parties play a role in AML and KYC. They keep identity information. But at the same time, such systems are also vulnerable.

I don't know if you have heard of Diginotar (this is a Dutch certificate authority). When Diginotar was hacked, the Microsoft signing certificate was stolen by the Irish, who turned it into malware and stored it on millions of machines. Microsoft found no problems. The Irish later used this to intercept and exploit user information.

The trust network of this model is garbage. Such networks are fragile, not distributed, and not robust. It requires all parts of the network to be secure, like the lights on a Christmas tree. If one light goes out, all lights go out.

The Bitcoin network solves this problem. In the Bitcoin network, if a node fails, the impact is not significant. Bitcoin is an economic incentive network. Part of the network is attacked and does not work. The remaining nodes can make more money. So this is a fraud prevention network.

04. Bitcoin network did not remove trusted third parties

Bitcoin does not remove trusted third parties, but small transactions do not require trusted third parties.

But in large transactions, we still need trusted third parties. If you want to transfer $ 6 million, you'd better do KYC, don't think that if it is Bitcoin, it won't be stolen.

I used to work in the gaming industry. Many people present were also engaged in this industry. Some of our old birds may still remember Black Friday. I remember Black Friday because during that time, I had no income, my deposit had shrunk by half, the Americans forced the casino to close, and even a licensed casino could not open, I had to find a new job.

So we need compliance, we need internet commerce, not micro-payments through middlemen, they are too vulnerable.

05.Bitcoin network does not support illegal transactions

What is P2P? I buy coffee. I give you money. You give me coffee. This is P2P.

The transactions on the Bitcoin network are not randomly chosen by the opponent, but from one IP address to another.

What people think of as an insecure network is, for example, the police are monitoring the network and getting my IP address and machine information. He is clear about my transaction information. This is what people think is an insecure network. .

(In the Bitcoin network) we can encrypt information, encrypt people, and stolen funds are recoverable.

Why do we discuss P2P because we have two networks.

We have a network of nodes and the government can see our Bitcoin transactions.

If you trade drugs on the Internet, if you fund terrorists or do other illegal things, your funds will be frozen, as it is on the Bitcoin, Ethereum, and Monero networks.

Anyone who has experienced Black Friday knows that if Americans were to break the banking system, it would be broken. Many Chinese exchanges are not open in mainland China because the government can easily close them.

If miners want to package these illegal transactions into blocks, doing so is also bad for miners. Every transaction packaged by this miner will become invalid, no matter who the recipient of these transactions is, because the transaction is tracked abnormally by the network, and a warning is sent to the entire network, anyone who receives the funds cannot Use this money. This miner invests a lot of electricity costs, but without any income, he will suffer economic losses and even go bankrupt.

The Bitcoin node network is an economic security system. We do not allow any illegal transactions on the Bitcoin network.

06. I hope Bitcoin can be used for micropayment services

I want people to pay for real services on the Bitcoin network, such as buying cars, houses, coffee, shopping, and recording transaction information.

I often hear people say: Bitcoin is not electronic cash. Satoshi Nakamoto designed Bitcoin as digital gold. (ridicule)

Bitcoin was originally designed to be used in P2P micropayment scenarios, which is the holy grail. This is an area that people have been trying. Bitcoin is not the first PoW (Proof of Work) system.

I don't want Bitcoin to be used for large capital transactions, I want it to be used for small transaction scenarios. I also hope that the transaction volume of micropayments can be very large, reaching billions of transactions per minute per day.

Google does 56,000 searches per second. Now Google's search results are junk. It provides search results based on your browsing history.

I hope that users can pay for a small fee to enjoy these search services so that Google will make more money and provide users with the information they really need.

Even people in underdeveloped areas can make some money through this network if they don't have the money to pay for these costs. This is an economically-motivated network, and you will earn more on this network than you spend.

From 1991 to 2001, the failure of many platforms can be attributed to one reason-there is no correct incentive mechanism, and no one does micropayments. Micropayments are important.

07. Decentralization is the biggest lie in the crypto world

Decentralization is the biggest lie in the crypto world. There is only one way to make all systems decentralized-you cannot change the rules. When we are talking about decentralization, we are talking about decentralization of rights.

If I am the Ethereum Foundation, I said, we will not switch to PoS, and this week we will do the 95th application, and we want to completely change the consensus mechanism, then my behavior is actually giving orders. This is not decentralization. This is not a vote. Voting is to end coercion. Coercion means you have to follow the rules. If you don't like the rules I created when I created Bitcoin, you create one yourself and compete with me.

It is wrong to say that the code is the rule. Bitcoin is not anarchism.

Use bitcoin instead of saving it, hoping it will add value, and wait until everyone can make a fortune with bitcoin to buy Lamborghini. Bitcoin is P2P cash, and money is used.