Bitcoin [BTC] and Ethereum [ETH] have different niches, says Andreas Antonopoulos

Andreas Antonopoulos, a Bitcoin expert and author of ‘Internet of Money,’ discussed the contrasting use cases and goals of Bitcoin and Ethereum blockchains in a recent interview. He said that the two blockchains’ use cases cannot be performed by the other.
“Essentially the two systems ETH and BTC evolved in divergent directions and they can occupy different niches but they can’t actually occupy the same niches at the same time.”
Even though maximalists from both sides urge that the use cases of one can be performed by the other blockchain, Antonopoulos claimed that it was ‘meaningless.’ He admitted that any blockchain with a different use case can only achieve this partially, and not outperform the original blockchain.
Bitcoin, which strives to become global money, is vastly different from that of Vitalik Buterin’s Ethereum, Antonopoulos said. He asserted that the latter’s core was different from that of the former, not in terms of application, but in terms of design choices and engineering of the two blockchains. He said,
“It’s in its DNA, the two systems have been evolved, not in the random mutation but a direct evolution perspective.”
The author further suggested that the initial design decisions and trade-offs made for Bitcoin facilitated the blockchain to become a very “robust, secure, nation-state resistant, a censorship-resistant form of global money.”Antonopoulos further added that this subsequently attracted a particular set of individuals to come forward with the same vision, strengthening the existing design trade-offs in that direction.
Talking about the design trade-offs in Ethereum, he said that the ETH blockchain was built with “an unconstrained software engineering mentality.” According to him, the developers were looking to address a “broader set of problems to solve.” The design trade-offs for this attracted a different set of people in comparison to Bitcoin.
The author also said that building a trade-off in Ethereum required its own blockchain for it to be meaningful. He also suggested that issues such as scaling in the ETH blockchain were much harder than that for BTC.
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Source: AMB Crypto

Bitcoin [BTC] proponent: There are going to be more state-sponsored cryptocurrencies because cash is going to be eradicated

Andreas Antonopoulos, the author of Mastering Bitcoin and a well-known Bitcoin proponent, spoke about state-sponsored cryptocurrency, during the recent Q&A video uploaded on Youtube. Here, he discussed whether it is a “good idea” to have these currencies or whether it is better to accept the duality of Fiat and cryptocurrencies.
Andreas started by stating that the state-sponsored cryptocurrencies don’t “really change anything”, adding that the purpose of the cryptocurrency “by definition” will be centralized, controlled, surveilled, closed, would required identity verification and would be allowed only to a “select few”. He said:
“What we don’t realize is that one of the reasons why we’re going to see more and more states promoted crypto currencies or other forms of digital currency is because we are entering the last era of cash.”
The author went on to say that cash would soon be eradicated and that this would happen “within our lifetimes”, adding that “in many cases our children will never see cash unless they visit a museum.” Moreover, according to him, the reason why cash would be eradicated is that it creates an “unfortunate opening” for freedom in places where freedom is not allowed. He said:
“Cash allows some flexibility in the system right when ridiculous things are made illegal captures the way you do them and generally speaking the big crimes don’t use cash because you can’t move that much cash for the big crimes what you need to do is buy yourself a banking license and use a bank to do it”
He further added that one of the ways to eradicate cash is by introducing digital state-sponsored currencies.
“What they [governments] are trying to create is a currency panopticon a situation a virtual digital prison of money in which everything you do is controlled everything you do can be seen can be monitored and at that point your freedom is one binary switch free not free free not free and one day someone’s gonna go through that virtual control room ago click-click click-click click-click I won the election of course”
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Source: AMB Crypto

Bitcoin [BTC]: Lightning Network’s Splicing feature is powerful and underappreciated, says Andreas Antonopoulos

Andreas Antonopoulos, on the latest session of Let’s Talk Bitcoin, discussed the second layer payment technology solution – Lightning network. He also spoke about what he considers to be its “most powerful and underappreciated feature” – splicing.
According to him, users will keep a huge volume of their funds in the Lightning network at all times and the funds that are not on the network will only be the ones which are stored in the cold wallets. The splicing functionality comes into the picture with respect to the propagation of Bitcoin transactions between on-chain and off-chain. Antonopoulos stated,
“… splicing allows you to do is blend the open channel, close channel and on-chain Bitcoin outputs into a single transaction.”
He further elucidated that splicing encompasses completion of all operations – opening, closing and re-balancing of funds on the on-chain wallet. The process enables a network user to send Bitcoin in the Lightning channel, channeling out Bitcoin to the Bitcoin blockchain and executing the open and close of the channel simultaneously in a single transaction.
When asked if this was a way to piggyback on existing traffic with a view that the transaction will be executed periodically by the users, Antonopoulos said,
“It [the wallet] decides, depending on who you want to pay and whether they can be reached on-chain or off-chain to construct your transaction and piggyback as many open and closed channels as it needs to do.”
Further, the author of Mastering Bitcoin also spoke about the function of CoinJoin, stating that it was effective for both obfuscation and privacy in the Lightning network. However, he emphasized that CoinJoin substantially reduces fees by ‘batching,’ re-balancing and all the other operations on the channel. He stated,
“It also saves on transaction fees. Because if you’re going to do that transaction anyway and you get five other strangers to join you and do their transactions, you pay one transaction fee across all of you. One transaction with five times the outputs is a lot cheaper than five transactions.”
Antonopoulos also called the Privacy-Preserving Light Wallet Protocol, Neutrino, an amazing improvement as opposed to its precursor. The Bitcoin proponent went on to state that the protocol can be leveraged to enhance the privacy of on-chain Bitcoin transactions on mobile wallets.
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Source: AMB Crypto

Here’s How Ripple’s XRP Could Hit $589 or Even $11,400 One Day

CoinSpeaker

Here’s How Ripple’s XRP Could Hit $589 or Even $11,400 One Day

Recently, the XRP Community was divided among the lines of those who believe in a theory and those who don’t. The theory in question is whether XRP will reach $589 in price before the end of the year or even $10,000 one day.

Here’s How Ripple’s XRP Could Hit $589 or Even $11,400 One Day

Continue reading at Coinspeaker
Source: CoinSpeaker

“People interested in XRP are not interested in Bitcoin,” says Andreas Antonopoulos

Andreas Antonopoulos, the author of Mastering Bitcoin and a well-known Bitcoin proponent, spoke about Blockstream’s Liquid sidechain, the first Bitcoin production sidechain, during a Q&A session on YouTube. Here, the author also spoke about whether there was any competition between Bitcoin’s Liquid sidechain and XRP/ Ripple, with respect to use case.
Antonopoulos started by talking about the Liquid sidechain, wherein he stated that the product was designed by Blockstream, a well-known company in the Bitcoin space that has been a part of numerous projects related to Bitcoin. The initial discussion for a Bitcoin Liquid sidechain solution commenced in 2015.
Here, a sidechain refers to a separate blockchain that is connected to the main chain via a two-way peg, a mechanism that enables assets to be fungible at a predetermined rate. Andreas explained sidechain as,
“[…] you can move [value] from Bitcoin’s chain… to this other blockchain, use it [there for some purpose], and then move it back.”
Sidechain introduces a concept wherein a user of the main chain has to send coins to an output address, which is then locked up to avoid the user from using it for other purposes. This is followed with a confirmation that is transmitted through the chain after the initial transaction is completed. Succeeding this, the same amount of coins will be released on the sidechain, which can later be used by the user. The same concept applies when the coins are transferred from the main chain to the sidechain.
With Liquid sidechain, users can make use of Liquid BTC, which is a “one-to-one equivalent of Bitcoin,” to lock up 1 BTC on the Bitcoin blockchain, which then becomes 1 Liquid BTC that can be used on the Liquid sidechain. This enables faster and cheaper transactions, without burdening the Bitcoin blockchain.
Antonopoulos also said, “in the case of Liquid, it is first sidechain implemented by Blockstream,” adding that it has been in the beta stage for over a year. He stated that this sidechain is intended to be a “backend exchange-to-exchange pipeline” for transactions of the largest cryptocurrency in the space. It will ensure that the coin moves “very fluidly” between exchanges without the need for on-chain transactions.
“The idea being, you have exchanges around the world who must withdraw and deposit… bitcoin to addresses that belong to other exchanges. Every time they do a withdrawal or deposit, they are not only using up space on the Bitcoin blockchain, but they also need to pay fees.”
He further added,
“Liquid is essentially payment channels with exchanges that allow them to move money… between themselves directly, like a SWIFT network. Liquid uses a federated signing model. It is not a mined chain, but a signed chain. It uses a proof-of-authority [consensus algorithm]”
This was followed by the author stating that this sidechain solution is not suitable for end-users and consumers, but a solution for exchanges that manage large Bitcoin transactions, “in a network that is off-chain and commercial product.”
Antonopoulos also voiced his opinion on whether there is any competition between Liquid sidechain and XRP saying,
“I don’t think so. Ripple [XRP] has a different model in its consensus layer, as well as… how the currency is used within the network. I think the people who are interested in XRP are not interested in Bitcoin, even through a sidechain.”
He further added,
“There is a spectrum of applications here, from payment channels and atomic swaps with… [decentralized] Lightning Network, to a [distributed proof-of-authority] sidechain like Liquid, to XRP / Ripple. There is some overlap in those applications, but I don’t think the overlap is enough and… I think they differentiate enough that they don’t directly compete.”
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Source: AMB Crypto

Bitcoin’s Lightning Torch Moves Through 37 Countries, Twitter CEO the Latest to Take It

CoinSpeaker

Bitcoin’s Lightning Torch Moves Through 37 Countries, Twitter CEO the Latest to Take It

Bitcoin’s Lightning Torch experiment has amassed over 140 participants from 37 countries with several popular global figures endorsing it.

Bitcoin’s Lightning Torch Moves Through 37 Countries, Twitter CEO the Latest to Take It

Continue reading at Coinspeaker
Source: CoinSpeaker

Bitcoin [BTC] proponent elucidates the biggest risks associated with losing funds

The author of Mastering Bitcoin, Andreas Antonopoulos, a well-known Bitcoin influencer, spoke about whether it is safe to store cryptocurrency in hardware wallets. He also elucidated on hardware wallet back-up and whether users should have additional layers of security.
According to the author, storing cryptocurrency on a hardware wallet is a “relatively” high-level of security. This was followed by the author speaking about the storage of the hardware wallet. Here, he quoted the example of a wallet with a PIN, wherein the keys are secure, but the device is vulnerable to physical attacks and a user needs to secure the location of the wallet. This was followed with Andreas speaking about the seed backups, the twenty-four characteristics, which also has to be protected by the user.
He considered the biggest risk as losing the seed, forgetting it and not making a back-up for the same. Furthermore, he spoke about how to prevent the risks. He said:
“Step one: Create another layer of protection. Make a passphrase on top of the seed so you have this additional layer of security. You still need to backup your passphrase […] A simple [set] of four to six random English words is a sufficient [passphrase], if you physically protect your seed against disclosure.”
Furthermore, he went on to say that an individual does not need to go to the technical complexity of the Glacier Protocol, adding that users’ promoting the use of this are not striving to achieve better protocol, but, in turn, are either “pushing people to overextend their technical skill” or “pushing people toward custodial exchanges and wallets”. He added:
“The vast majority of people, having read things like the Glacier Protocol, will think, ‘I don’t know about this.’ They will try to do it, without understanding it and [feeling] very uncomfortable with their knowledge, and probably lose their crypto because they messed it up. Or they will give up on the first page, move their crypto into custodial storage, and let someone else take care of the security.”
He went on to say that there are products in the intermediate level that can be used by people like the hardware wallets, with paper backups and secured with a passphrase, which is also easy to use. He said:
“[Hardware wallet] It is not more likely to be hacked now than it was at any time in the past. 99% of the attacks against hardware wallets that… you read about in academic papers or see at security conferences require physical access to the device. Even then, they [probably] won’t work if you have updated your firmware correctly. More importantly, the biggest risk you face is losing your crypto because you didn’t properly back-up your [keys].”
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Source: AMB Crypto

Bitcoin proponent: Users’ lack of technical expertise has a higher chance of making them lose their crypto than a hack

Andreas Antonopoulos, a well-known Bitcoin proponent and the author of Mastering Bitcoin, spoke about one of the most controversial topics in the space at present, secure storage of Bitcoin [BTC] and other cryptocurrencies, during a Q&A session on Youtube.
Here, the author elucidated Trace Mayer’s statement that a user required Bitcoin Core for network validation, Armory for managing the private keys, the Glacier Protocol for standard operating procedures and a Purism laptop for hardware. He also spoke about the gold standard for the storing cryptocurrency, which would apply for non-technical investors as well.
On Trace Mayor’s pre-requisites, the author exclaimed that different groups have its own risk model and tolerance for technical complexity. He added that the important factor is that the technical complexity is a part of the risk model, adding that a user would be at “serious” risk of losing their cryptocurrency is the technical complexity is above their skill level. He went on to elucidate on the reason:
“Not because it is stolen, but because your ambition for technical excellence exceeds your current skill level, and you messed up [on the execution]. This applies to every level of technical expertise. There is always a ‘higher level’ of security to achieve, by adding a bit more complexity. Security is not an on / off thing, “it is secure” vs. “it is not secure”.”
He further affirmed that the is “no gold standard” that applies to everyone. However, a user can reduce the risks faced by identifying and understanding who could be after their crypto and under what circumstances they could access it. He added:
“[…] Whatever else the risk model might [include], then you must balance that against your technical skills. Find which of these risks you can eliminate, in a way that you and anyone designated to help your loved ones… recover your crypto if something happens to you, can execute flawlessly. That is the sweet spot.”
This was followed by the author stating that there Trace Mayer’s sweet spot turned out to be Bitcoin Core for network validation, Armory for managing keys, Glacier Protocol for operating procedures and a Pursim laptop for hardware. Andreas further stated that other people have higher standards in comparison, like that of Coinbase, which uses a Faraday cage for cold storage – a room lined with an electromagnetic shield to ensure that it does not leak radio frequencies. However, others don’t have anything that protects their storage room. He said:
“Trace is identifying his sweet-spot based on his level of technical expertise […] For 99% of users, this is not right, because 99% of crypto users do not have the technical expertise to execute on a plan of this complexity. As a result, what they will do is over-extend and underachieve on technical execution, standing a much bigger risk of losing their crypto due to key loss than having it stolen by an external adversary.”
He continued to say that a user’s lack of technical expertise, over-ambition in execution can result in them losing their cryptocurrency instead of losing them to “some nefarious hacker”.
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Source: AMB Crypto

Bitcoin [BTC] proponent calls out fake conferences as community comes together

Bitcoin [BTC] and other cryptocurrencies have had a rollercoaster ride over the past few weeks, with the prices and the investor sentiment fluctuating throughout. In the midst of this, many proponents and critics of the space have done their fair share of work to put the industry in the limelight.
Recently Andreas Antonopoulos, the author of Mastering Bitcoin and a Bitcoin [BTC] proponent, announced that some cryptocurrency conferences were spreading fake news of attending the events. The main culprit of this scam is Ed Reich’s Ledger & Tokens Investor Summit. Antonopoulos had tweeted:
“A scam-conference by
@edevanrich is sending out an email (https://gist.github.com/aantonop/8d45fc275139e488337a3e5113b0686e …) with a list of “confirmed speakers”. I’m not “confirmed”. How many others are lies?”
The Bitcoin bull also posted a GitHub thread talking about the invite and its contents. The list of speakers included Andreas himself, Sir John Hargrave and Olga Feldmeier. Later discussions on Antonopoulos’ Twitter thread revealed that several names on the list were unaware of the news. Adryenn Ashley, another name on the list and a famous crypto influencer replied:
“I don’t think so! I’d know if I was sharing a stage with you!”
To which Antonopoulos replied:
“Third lie by @edevanrich. Keep them coming…”
Some other followers had other suggestions for Andreas, even going to the extent of putting forth Cease and Desist orders to which he said:
“No need. Name and shame works better than cease and desist. People who abuse my reputation get to deal with the backlash.”
Antonopoulos was also in the news recently when he claimed that Bitcoin can achieve Store of Value over long periods of time. He had elucidated on the ways in which Bitcoin could be used as money rather than the idea of using it in day-to-day commerce. He then spoke about how money has three fundamental functions: Medium of Exchange [MoE], Store of Value [SoV] and Unit of Account [UoA]. In his words:
“[So far, Bitcoin is] able to achieve store of value over long periods of time, with a few asterisks. [Bitcoin is] not very good at doing medium of exchange. The velocity of transactions is not good enough yet. The blockchains [with faster confirmation times] sacrifice decentralization in order to do that. As a result, that is not a sacrifice worth doing. So, we’re not ready.”
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Source: AMB Crypto

Bitcoin [BTC] proponent elucidates on the difficulty of mining Bitcoin

Andreas Antonopoulos, the author of Mastering Bitcoin and a well-known Bitcoin proponent, spoke about the difficulty of Bitcoin mining and why each block of Bitcoin is mined every ten minutes, during a Q&A session on Youtube.
The author stated that he was asked whether it is a rule or an average number based on computation power that blocks are formed every ten minutes. To which, he stated that it is both, adding that it is a rule in Bitcoin that the difficulty target is based on the computational power of the network that forms blocks every two weeks.
He went on to say:
“The rule in Bitcoin is [about] the difficulty of doing the calculation, which is adjusted every two weeks. The average number of blocks in a period of time [will] equal a block about every ten minutes.”
Andreas stated that this would result in the 2016 blocks mined within a timespan of two weeks. He added that if the blocks mined the previous two weeks are exactly 2016, then the difficulty of solving the PoW algorithm and the amount of hash power committed by the miners for Bitcoin mining is perfect.
The author further stated:
“Let’s say that instead of 2016 blocks, we had 2217 blocks, or effectively 10% more blocks. The network [would adjust] the difficulty [to be] 10% [more difficult], the same ratio as the [percentage] of extra blocks we had versus the number of blocks we should have.”
Andreas continued to say that if there was a difference of 10%, then the difficulty target will also be adjusted by 10%, because of which 10-minute blocks would be “closer” in the future. He further elucidated the result if it was 10% lower, stating:
“[…] 10% short, we would adjust by about 10% in the difficulty target. That calculation happens every two weeks, at exactly the same block, and affects the difficulty of the next block across the entire network [of nodes].”
The Bitcoin proponent stated that every computer in the network counts the number of blocks noticed over the past two weeks, measuring the amount of time between the blocks, and adjusts the difficulty in accordance, “and arrives at the same answer, as the entire network switches [the difficulty target]. For the exact same amount, every two weeks.”
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Source: AMB Crypto

Bitcoin proponent: The only two choices in current voting system are red Goldman Sachs vs blue Goldman Sachs

Andreas Antonopoulos, a well-known Bitcoin proponent and author of Mastering Bitcoin, spoke about Ryan Bundy, a candidate for governor of Nevada and his plans on implementing cryptocurrency and blockchain technology to solve the problems encountered by people, in his recent Q&A video on Youtube.
Antonopoulos was asked about his suggestions on implementing blockchain governance into the current government. This was followed after the statement about Ryan Bundy planning on bringing blockchain into government first.
The governor candidate wants to introduce Nevada insured metals-backed cryptocurrency and plans to educate, incubate and promote the use of blockchain technology in the state. He plans on creating a crypto-friendly environment, and encourage crypto-influencers to visit and develop their business in the state.
Antonopoulos stated that he does not think that blockchain can fundamentally change the governance system until they are decentralized. He went on to say:
“Most of the proposals I hear from people in this space who grabbed the word blockchain are indistinguishable from simply saying database or cloud this is a simple litmus test. Take the proposal of your favorite new blockchain system that someone’s proposed in government replace the word blockchain with database and if it still reads correctly, it’s not really anything interesting.”
He continued to say that it would be a highly centralized database, wherein the responsibility will be given to one party and that this is “business as usual with a sprinkling of fairy dust” on top. Antonopoulos added that all the government-driven blockchain projects he has come across so far are fundamentally about asserting control over the blockchain. This means that their business would continue to be the same, except with the disguise of being something revolutionary.
Antonopoulos further stated:
“They’re not at the moment. We can’t even get people to use this as money without sacrificing their independence and autonomy because they, as I just mentioned, they go to custodial services. I don’t see any way that you can have people use it to vote, for example, and again the problems we have in our democracy have nothing to do with validating whether the votes were counted correctly or whether there was fraud.”
The author stated that the problems which are currently faced by people are related to disenfranchisement on a massive scale and complete “voter apathy”. This is because people are given only two choices in the current voting system, red Goldman Sachs vs blue Goldman Sachs. He added, “picking the color isn’t democracy.”
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Source: AMB Crypto

Bitcoin proponent equates cryptocurrency custodial services to modern-day bank robbery schemes

Andreas Antonopoulos, a well-known Bitcoin proponent and author of Mastering Bitcoin, gave his opinion on whether Bitcoin custodial wallets and banks are a threat to the hard money quality of Bitcoin, in his recent Q&A video on Youtube.
The Bitcoin proponent was questioned about whether he thought that the custodial wallet and Bitcoin banks could threaten the hard money quality of Bitcoin. This was followed after it was stated that the hard money aspect of Bitcoin has the potential to remove the government’s ability to steal their citizens through inflation with the motive of funding corruption and wars.
Antonopoulos stated that Bitcoin is completely undermined as it can be directly stolen if not through inflation. He went on to say:
“One way to do that is just to go in and seize all of that Bitcoin directly from the custodial accounts, which will start happening in different countries, right. So again, depending on how you look at it in modern societies, bank robberies nowadays happen in a very different way than they used to.”
The author claimed that the most successful bank robberies at present are carried out by people with a banking license. However, this is not classified as theft as the people stealing the money then legalize the stolen money, he added. This would result in no one being apprehended for the crime. This, according to him, is a “far better way” to rob a bank in comparison to the earlier days wherein thieves would use a machine gun. He added:
“Being a regulator in the banking industry, even better than having a banking license. If you want to rob a bank, being a central banker, say the European Union, allows you to rob an entire country. Like what happened to Greece and Cyprus and again far far better than using a gun because you just take 10 million people hostage.”
Antonopoulos further spoke about the risks in Bitcoin’s custodial system, which is a result of centralization and concentration of power. He stated that the risk would become “systemic risks”. He explained:
“when you have institutional custodial systems, like that the people who can rob them, are the people who have authority over them and they don’t need inflation to do that.”
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Source: AMB Crypto