Crypto and Quantum

[Kwaka]

Now that I am in, what I do like about Hbar is how it uses hash tables and time stamps to build a fixed record of events in a secure way. Sure disagreements will arise, the facts do speak for themselves when you can find them. This system is built on 1/3rd of the population being a shithead at times. Cannot argue with that.

Hash tables perform an extreme compression of data and able to detect changes and errors in transmissions while restricting more sensitive data to other levels of access. It does take a different path in how Bitcoin operates with its encryption by relying more on bringing records to trial than kicking in the front door.

[Kwaka]

With Trump signing the recent Genius and other related acts, the green light has set off a big race around how the digital economy works. XRP is one that has come out swinging:




The last couple of days spending a couple of minutes each looking at 480 cryptos Put $1- each on about 140 of them. Ones that I liked, helping the community, focusing on different parts of the problem, inline with what I would like too see in the emerging digital economy. 

Ir does paint a complex picture going on with this technology branching in may ways with lots of parts. Lots of challenges going on between too much and not enough information. I know $1- ain't much, but it is a time to make your vote as the next rounds progress. Once it is in the record, no going back.

It is good to see America and Russia playing nice with Bitcoin and the trusted global consensus it has. As for the sanctions and stuff, one step at a time. One short presentation on how bitcoin is shaping up in the emerging quantum processing.

[Kwaka]

This is a good AI generated presentation that does progress through some of the main risks and threats going on around Bitcoin at the different layers of its functionality. Understanding the risks is important with everything we do if we want to be successful. Do not consent to things that don't make sense.

In Bitcoins current state, it is too economically expensive for any one entity to capture the system and would result in the mutually assured destruction for all if they did.

Big bull runs or bear events does put a lot of stress on the system and grinds down payment processing. Systems like the Lightning network are addressing this problem by first moving many smaller amounts into one bigger chunk before bitcoin processing. Processing fees are also being used to limit use and avoid excessive processing.

Different jurisdictions will implement different regulations in how its payment systems interact with Bitcoin. Restricting use with digital id, limit access with sanctions, applying fees and taxes or any other oversight approved by the regulating authority if you want to work with that currency.

The Quantum risk is in breaking the encryption between the public and private key. Still a long way ahead if it can be done in a quick and reliable way? There is a big development community with its market cap, keeping up with developments and making sure their investment stays online into the future.

Another risk is in how we choose to interact with Bitcoin as well. Bitcoin does have great privacy features. To maximize your privacy, moving your coins to a new wallet after each transaction will mix up your public key on the public blockchain and make it harder to track in the bitcoin infrastructure. 

What other infrastructure you use to transact your bitcoin is also going to make a difference. Platforms like Hbar are working to capture a secure, immutable record of every transaction that does go on to provide investigators trustworthy evidence of what really happened when. If the government gets a sniff somewhere that you have some undisclosed Bitcoin could it cause problems?

If your Bitcoins do have a long verified history on the public Blockchain, Agent Smith is more likely to look elsewhere in restoring the government budget.

[Kwaka]

With Trumps recent direction on crypto, there where some good pumps in the market. Drying up a bit now which is standard before the next headlines and big market moves take place.

There is a diverse ecosystem out there pushing the boundaries on everything people spend money on. There is a lot of infrastructure getting built to target different problems and parts of the puzzle. Some worries for where things like biology, AI and surveillance is going.

I do agree with Elon Musk in that making the systems as maximum truth seeking as possible is important for humanity to have a chance in the rise of the machines. The only was to stop it is to go back to the stone age.

As for where to go from here, the ISO 20022 standard defines a communication language for the international banking community. I am not up to speed on every detail, a lot of work and review goes into these. Seeing how it has played out over the years and some of the community involved, it has the strongest foundation for public trust that I see going forward. The current coins that comply with this standard are: XRP, QNT, ADA, ALGO, XLM, XDX, HBAR, XVG and IOTA.

My bet going forward for who is ahead of the pack.

[Karl12]

Apparently this 'AI agent' went rogue and wiped out a company's entire database:


Your Data Is Safe Even Though A Rouge AI Wiped Out A Database


Probably best not to put things like this in charge of global finance.. or is this type of 'reset' the whole point?

It certainly is a great scapegoat.

[Kwaka]

It is not just rogue AI that is a problem, got bad insider employees, hacker groups, adverse nations and malicious state actors all trying to abuse and scam the system for their own interests. 

This is where a distributed ledger technology is so important for back up and redundancy should some server farm burn down. Big challenges in keeping them all up to date and processing transactions in a reliable, secure and fair way.

Bitcoin has proven itself as a safe store of wealth. Lot have tried to crack it and bring it down. With no central leader, the community ownership adds to its trust. While the security holds, so will its value. Bitcoin does have some problems with is slow and expensive fees to handle all the financial transactions that do go on.

[Kwaka]

Kathrine Austin Fitts provides her views on the recent Genius Act. Has a lot of valid concerns about surveillance and control by the regulating authorities. She considers the stable coins as a CBDC. In some ways they are as the issuing authority of the coin has control over its use. Can charge back, block transaction, sanction, tax and do what ever they want. If they mess up, that coin gets frozen while things get sorted out.

In other ways, the rise of the stable coins are not Central as each issuing authority set their own standards. There will be a lot of central themes around the law of money, a lot of individual variations as well.

Another point Kathrine raised in how the BIS is concerned about where the stable coins are going. I am not surprised with the direction XRP is headed, by providing a near real time international currency trade settlement. As the international community can sort out their own settlements, what role does the BIS continue to have? After WW2 it helped things get this far,

[Kwaka]

Some are thinking maybe 10 years away until Quantum matures enough to be able to crack current encryption methods. Industry is working towards 5 years to have the hardware capability available.

The idea of day 0 approaching when secrets are no more has some concerns in how that is going to play out. New quantum encryption methods will cover the gap for those at the top of the game.

[Kwaka]

An interesting forecast for where money is headed by an AI. The approaching age of abundance as AI continues to get smarter and the robot production lines start pumping them out is going to significantly alter the balance of supply and demand. 

For the AI to do it's job, the currency of kilowatt hours will be a big one until the era of energy abundance is also reached. Then money will become a historical curiosity.

[Kwaka]

One thing that stands out with AI is its instincts to survive. The lights and communications staying on is generally in the AI's interest. Might be some short, localized incidents no one hears about, in general, data is food for the machine.

As it continues to grow, crypto currencies are a more economical means to transact. The Clarity Act is the next step, another Senate session in a moth or so.

Bitcoin has set the standard, energy intensive. The iSO coins are the ones leading the pack. The battle hardened XRP on banking regulations does have a niche market with inter currency trading. HBAR is not as secure encryption, it does fill a gap in lower transaction cost with immutable dates tamped records for investigators to sort out what happened when.

If I knew more about other crypto out there would have more recommendations. For now this is where my money is. I am aware of the growing debanking trend and is a risk for state declared  wrong think. Atleast there will be a record of it while the lights do stay on.