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Issue #406: Gather round now

Issue #406: Gather round now

Jan 25, 2019
Marty's Ƀent

Issue #406: Gather round now

It's time to take a trip down (Adam Back's) Memory Lane and reminisce on the many iterations of digital cash that came before Bitcoin and the importance of Proof of Work. Fair warning, this is a long thread.

As you can see, the problem that plagued previous digital cash solutions was the ability to control the rate of inflation without the need for a central authority to step in. The solution, Proof of Work with a difficulty adjustment that reacts to the inflow and outflow of energy being expended to secure the network. The act of automating the difficulty adjustment every 2016 blocks is the crux of the beautiful feedback loop that is Bitcoin's incentive system.

Without the ability to adjust the difficulty, assuming that Bitcoin had value and miners were joining the network, blocks would come in way too fast, expediting the issuance to the point where Bitcoin wouldn't be good as a money. Satoshi discovered the magic ingredient needed for a truly sovereign, distributed digital gold that cypherpunks had been pursuing for a while. So when someone tries to tell you that Bitcoin is the "Myspace of crypto", first, tell them to kindly be better, try harder and think more critically. Then send them to this issue of this rag and the thread Uncle Marty expanded on today.

Final thought...

Sort of want to learn how to play the piano. Seems like a great party trick.

Enjoy your weekend, freaks.


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