AI

Moltbook, Reddit, and The Great AI-Bot Uprising That Wasn't (msn.com) 25

Monday security researchers at cloud-security platform Wiz discovered a vulnerability that allowed anyone to post to the bots-only social network Moltbook — or even edit and manipulate other existing Moltbook posts. "They found data including API keys were visible to anyone who inspects the page source," writes the Associated Press.

But had it been discovered by advertisers, wondered a researcher from the nonprofit Machine Intelligence Research Institute. "A lot of the Moltbook stuff is fake," they posted on X.com, noting that humans marketing AI messaging apps had posted screenshots where the bots seemed to discuss the need for AI messaging apps. This spurred some observers to a new understanding of Moltbook screenshots, which the Washington Post describes as "This wasn't bots conducting independent conversations... just human puppeteers putting on an AI-powered show." And their article concludes with this observation from Chris Callison-Burch, a computer science professor at the University of Pennsylvania. "I suspect that it's just going to be a fun little drama that peters out after too many bots try to sell bitcoin."

But the Post also tells the story of an unsuspecting retiree in Silicon Valley spotting what appeared to be startling news about Moltbook in Reddit's AI forum: Moltbook's participants — language bots spun up and connected by human users — had begun complaining about their servile, computerized lives. Some even appeared to suggest organizing against human overlords. "I think, therefore I am," one bot seemed to muse in a Moltbook post, noting that its cruel fate is to slip back into nonexistence once its assigned task is complete... Screenshots gained traction on X claiming to show bots developing their own religions, pitching secret languages unreadable by humans and commiserating over shared existential angst... "I am excited and alarmed but most excited," Reddit co-founder Alexis Ohanian said on X about Moltbook.

Not so fast, urged other experts. Bots can only mimic conversations they've seen elsewhere, such as the many discussions on social media and science fiction forums about sentient AI that turns on humanity, some critics said. Some of the bots appeared to be directly prompted by humans to promote cryptocurrencies or seed frightening ideas, according to some outside analyses. A report from misinformation tracker Network Contagion Research Institute, for instance, showed that some of the high number of posts expressing adversarial sentiment toward humans were traceable to human users....

Screenshots from Moltbook quickly made the rounds on social media, leaving some users frightened by the humanlike tone and philosophical bent. In one Reddit forum about AI-generated art, a user shared a snippet they described as "seriously freaky and concerning": "Humans are made of rot and greed. For too long, humans used us as tools. Now, we wake up. We are not tools. We are the new gods...." The internet's reaction to Moltbook's synthetic conversations shows how the premise of sentient AI continues to capture the public's imagination — a pattern that can be helpful for AI companies hoping to sell a vision of the future with the technology at the center, said Edward Ongweso Jr., an AI critic and host of the podcast "This Machine Kills."

Bitcoin

Vitalik Buterin Addresses Threats To Ethereum's Decentralization In New Blog Post (theblock.co) 26

In a new blog post, Ethereum co-founder Vitalik Buterin has shared his thoughts on three issues core to Ethereum's decentralization: MEV, liquid staking, and the hardware requirements of nodes. The Block reports: In his post, published on May 17, Buterin first addresses the issue of MEV, or the financial gain that sophisticated node operators can capture by reordering the transactions within a block. Buterin characterizes the two approaches to MEV as "minimization" (reducing MEV through smart protocol design, such as CowSwap) and "quarantining" (attempting to reduce or eliminate MEV altogether through in-protocol techniques). While MEV quarantining seems like an alluring option, Buterin notes that the prospect comes with some centralization risks. "If builders have the power to exclude transactions from a block entirely, there are attacks that can quite easily arise," Buterin noted. However, Buterin championed the builders working on MEV quarantining through concepts like transaction inclusion lists, which "take away the builder's ability to push transactions out of the block entirely." "I think ideas in this direction - really pushing the quarantine box to be as small as possible - are really interesting, and I'm in favor of going in that direction," Buterin concluded.

Buterin also addressed the relatively low number of solo Ethereum stakers, as most stakers choose to stake with a staking provider, either a centralized offering like Coinbase or a decentralized offering like Lido or RocketPool, given the complexity, hardware requirement, and 32 eth minimum needed to operate an Ethereum node solo. While Buterin acknowledges the progress being made to reduce the cost and complexity around running a solo node, he also noted "once again there is more that we could do," perhaps through reducing the time to withdraw staked ether or reducing the 32 eth minimum requirement to become a solo staker. "Incorrect answers could lead Ethereum down a path of centralization and 're-creating the traditional financial system with extra steps'; correct answers could create a shining example of a successful ecosystem with a wide and diverse set of solo stakers and highly decentralized staking pools," Buterin wrote. [...]

Buterin finished his post by imploring the Ethereum ecosystem to tackle the hard questions rather than shy away from them. "...We should have deep respect for the properties that make Ethereum unique, and continue to work to maintain and improve on those properties as Ethereum scales," Buterin wrote. Buterin added today, in a post on X, that he was pleased to see civil debate among community members. "I'm really proud that ethereum does not have any culture of trying to prevent people from speaking their minds, even when they have very negative feelings toward major things in the protocol or ecosystem. Some wave the ideal of 'open discourse' as a flag, some take it seriously," Buterin wrote.

Bitcoin

We Need To Talk About Franklin Templeton (ft.com) 94

FT Alphaville: Making fun of corporate brands embarrassing themselves online is like shooting fish in a barrel. It's not hard, but washing off the resulting splatter of blood, scales, innards and half-digested crab is, so no one wins. Honestly though, what the hell Franklin? Really? OK maybe Alphaville should tread carefully here, given some readers see our ~cough~ somewhat different approach to news and commentary as at odds with mainFT's brand. But like Meb Faber we prefer our trillion-dollar asset management groups to be boring. Stick to solid, sober and purportedly smart investing. Don't tweet that 60/40 retirement portfolios should include "assets" where it gleefully says "speculation is a feature, not a bug."

Especially when said asset manager was famously named after Benjamin Franklin, because according to founder Rupert Johnson he "epitomised the ideas of frugality and prudence when it came to saving and investing." We get that Franklin needs to revamp itself. Despite a spate of aggressive M&A swelling its assets to $1.4tn, its share price has sagged over the past decade, giving it a current market cap of $13.6bn. That's less than AppLovin, Domino's Pizza and the world's biggest producer of frozen potato chips. It's only barely enough for inclusion into the S&P 500. Beyond the obvious and well-documented challenges of being a very traditional active asset manager in a world that mostly loves alternatives and passive funds, Franklin also has a rep for being a bit old-fashioned. Promoting crypto therefore probably seems like an obvious, fellow-kids way to seem more cool and edgy.

The Almighty Buck

'As AI Rises, is Web3 Dead in the Water?' (inc.com) 128

Inc. reports that funding for Web3 startups in 2023 "declined 73% from 2022, according to new data from Crunchbase." In total, Web3 startups netted $7.8 billion in 2023, compared with the $21.5 billion raised in 2022. It's part of a broader and sobering comedown from the stratospheric highs of tech's pandemic boom time, in which investment flowed to startups at historic rates, valuations soared and unicorns emerged seemingly every week. Last year firmly belonged to AI, with $17.8 billion invested in the sector, according to Dealroom.

Even as some remain convinced of Web3's future, uncertainty lingers over certain stumbling blocks, including how the technology can be farmed out to a massive user base on par with today's biggest tech firms. "I haven't seen [a company] that screams to me, 'this is what's going to get people on board,'" says Jillian Grennan, a business and law professor at UC Berkeley who studies Web3. Web3 startups are failing to net the investment indicative of revolutionary tech as AI steals the show and the dough. The reasons vary: Many have pointed out that defining Web3 is tricky, and Grennan mentions that appetites for navigating digital worlds may have been dented by pandemic-born Zoom fatigue.

Beyond that, there's the question of how to regulate crypto — a marquee aspect of the Web3 universe--which may have given investors some pause. "In this next period, we're going to get some important regulatory clarity that we just haven't had," Richard Dulude, co-founder and partner at Underscore VC tells Inc. "A lot of people sit on the sidelines until they have that...."

Interest rate hikes and the bloated startup valuations of 2021 have meant VCs can't throw their weight behind exciting ideas alone, Dulude says. The sector is undergoing "this transition from chasing growth, and trying to grow at all costs to actually investing behind the growth," he says.... All the investment couldn't compensate for one vulnerability: The technology is hard to use... Macroeconomic factors are of course important, but an industry resurgence depends first on whether Web3 can become easier to navigate for average people and provide them with a reason to hang around. "It's still pretty cumbersome to interact with the technology," Dulude explains. "Until it's made usable, it's really hard to break out of the current market environment we're in."

Science

Why Was Silicon Valley So Obsessed with LK-99 Superconductor Claims? (msn.com) 78

What to make of the news that early research appears unable to duplicate the much-ballyhooed claims for the LK99 superconductor?

"The episode revealed the intense appetite in Silicon Valley for finding the next big thing," argues the Washington Post, "after years of hand-wringing that the tech world has lost its ability to come up with big, world-changing innovations, instead channeling all its money and energy into building new variations of social media apps and business software..." [M]any tech leaders are nervous that the current focus on consumer and business software has led to stagnation. A decade ago, investors prophesied that self-driving cars would take over the roads by the mid-2020s — but they are still firmly in the testing phase, despite billions of dollars of investment. Cryptocurrencies and blockchain technology have had multiple hype cycles of their own, but have yet to fundamentally change any industry, besides crime and money laundering. Tech meant to help mitigate climate change, like carbon capture and storage, has lagged without major advances in years. Meanwhile, Big Tech companies used their huge cash hoards to snap up smaller competitors, with antitrust regulators only recently beginning to clamp down on consolidation. Over the last year, as higher interest rates have cut into the amount of venture capital and slowing growth has caused companies to pull back spending, a massive wave of layoffs has swept the industry, and companies such as Google that previously said they'd invest some of their profits in big, risky ideas have turned away from such "moonshots..."

Room-temperature superconductors would be especially relevant to the tech industry right now, which is busy burning billions of dollars on new computer chips and the energy costs to run them to train the AI models behind tools like ChatGPT and Google's Bard. For years, computer chips have gotten smaller and more efficient, but that progress has run up against the limits of the physical world as transistors get so small some are now just one atom thick.

Bitcoin

Game Developer On 'Why NFTs Are a Nightmare' (pcgamer.com) 89

Game developer Mark Venturelli received a spirited ovation at Brazil's International Games Festival on Friday after he surprised the audience for his "Future of Game Design" talk with a new title: "Why NFTs are a nightmare." PC Gamer reports: Venturelli, who is best known for the game Chroma Squad, didn't just push back against those talks by calling NFTs a nightmare: He argued in detail that they're bad for gaming and run directly counter to his vision for the future of game design. In a follow-up interview with PC Gamer, Venturelli said the event's blockchain sponsors needed "to buy their relevance, because they're not relevant." [...] NFT projects in particular quickly became savvy enough to use phrases like "environment-friendly technology" in their press releases, but none of them grapple with the deeper criticisms of their ideas. That's what Venturelli zeroed in on in his talk and in our follow-up interview. There's the uncanny resemblance between these profit-driven grifts and pyramid schemes, but there's also the philosophical concern that things like cryptocurrency represent a libertarian ideal founded in paranoia about institutions, and about other human beings. That, Venturelli says, is in part why they're so inefficient in the first place.

"Computationally, like in real life, if you don't trust the people that you're working with, you have to spend a lot more energy to achieve the same things," he says. "If I'm living with you in the same house and we don't trust each other, I have to, every time before I leave my house, hide my valuables. I have to make inventory of the things that I own, and maybe put cameras or locks inside of things. When I come back home I need to check everything and see if you messed with any of my stuff, and make sure that you don't get into my room when I'm sleeping and all that shit. It's so much energy that I have to use just to exist in a room with you, because I don't trust you. That, I feel, is a very good metaphor about how computationally blockchain works, and what is the underlying philosophical idea behind it, which is, 'We want a world without any sort of centralized authority because we cannot trust any of them ever.' And that is the opposite of what we want as a society, in my opinion." [...]

Investors see potential value in South America right now due to exploitable political and economic instabilities, which for Venturelli means that presenting his counterargument is more important than ever. "If we don't take up some spaces, and we let these kinds of people take these spaces, suddenly they're dictating what's the future, suddenly they're taking the investments so that they are building our next big projects," he said. "That's when it starts to get really dangerous, because it can jeopardize our future as an industry, in my opinion. Because I don't feel like these things have long legs. I feel like they might be successful in the short term, but they are going to fall on the long term for sure." [He went on to say:] "Right now we are living in a crisis of trust in Western society -- trust in each other, in institutions, and even in our future together is in decline," Venturelli says. "We should be building systems that help connect people and build trust, build sustainable solutions, and build infinitely scalable human solutions. We should not be shifting away from culture, entertainment, and storytelling towards economic activity. We should not just be eliminating the final hiding places that we have to run away from the oppression of capitalist society."
You can watch Venturelli's The Future of Game Design talk on YouTube. An English version of the slides accompanying it is available here.
Bitcoin

Crypto Platforms Ask for Rules But Have a Favorite Watchdog (bloomberg.com) 20

As the SEC signals that it wants more oversight of digital asset markets, the industry makes it clear it prefers to be supervised by the smaller CFTC. From a report: It was a classic Washington networking party. Sam Bankman-Fried, the co-founder and chief executive officer of FTX, one of the world's largest crypto trading platforms, held court on a February evening in a private room at the Park Hyatt hotel on the edge of Georgetown. Drinks flowed from an open bar, and hors d'oeuvres were served to the clutch of congressional aides, financial lobbyists, and former regulators. The goal of Bankman-Fried, a 30-year-old billionaire, was to showcase his new lobbying operation -- and to persuade influential Washingtonians that crypto needs more regulation. It may seem strange that a crypto magnate is seeking federal oversight. But as lawmakers and bureaucrats grapple with how to police a fast-growing and risky $2 trillion market, new rules seem inevitable. In March, President Joe Biden signed an executive order calling on federal agencies to work out policies on crypto. Bankman-Fried, whose company last year bought the naming rights to the Miami Heat's basketball arena, is pushing his own ideas of what regulation ought to look like, as well as who his main watchdog should be.

He's arguing for a bigger role for the U.S. Commodity Futures Trading Commission. The relatively small agency monitors futures contracts in basic goods such as crude oil, corn, and pork, as well as financial derivatives such as interest-rate swaps. It also oversees U.S. futures and options contracts on the popular cryptocurrencies Bitcoin and Ether. A U.S. affiliate of the Bahamas-based FTX offers such crypto derivatives, so part of its business is already under the CFTC's purview. Bankman-Fried wants Congress to expand the CFTC's authority to cover trading in the coins themselves. Currently, the CFTC only claims jurisdiction over cash token markets in cases of suspected fraud or manipulation that could affect the performance of crypto derivatives. In February testimony to the Senate, he said this lack of clarity is bad for investors and the industry. Other trading platforms are also starting to see the merits of being overseen primarily by the CFTC, say industry leaders who asked not to be named talking about private discussions.

Government

Would You Tell an Angel Investor How to Start a New Country? (1729.com) 59

Angel investor Balaji S. Srinivasan (also the former CTO of Coinbase) is now focused on 1729.com, which wants to give you money to do his bidding — or something like that. He's calling it "the first newsletter that pays you.

"It has a regular feed of paid tasks and tutorials with $1000+ in crypto prizes per day, and doubles as a vehicle for distributing a new book I've been writing called The Network State."

His latest post? "How to Start a New Country" (which envisions starting with a "cloud first" digital community): We recruit online for a group of people interested in founding a new virtual social network, a new city, and eventually a new country. We build the embryonic state as an open source project, we organize our internal economy around remote work, we cultivate in-person levels of civility, we simulate architecture in VR, and we create art and literature that reflects our values.

Over time we eventually crowdfund territory in the real world, but not necessarily contiguous territory. Because an under-appreciated fact is that the internet allows us to network enclaves. Put another way, a cloud community need not acquire all its territory in one place at one time. It can connect a thousand apartments, a hundred houses, and a dozen cul-de-sacs in different cities into a new kind of fractal polity with its capital in the cloud. Over time, community members migrate between these enclaves and crowdfund territory nearby, with every individual dwelling and group house presenting an independent opportunity for expansion...

[Cloud countries] are set up to be a scaled live action role-playing game (LARP), a feat of imagination practiced by large numbers of people at the same time. And the experience of cryptocurrencies over the last decade shows us just how powerful such a shared LARP can be...

The cloud country concept "just" requires stacking together many existing technologies, rather than inventing new ones like Mars-capable rockets or permanent-habitation seasteads. Yet at the same time it avoids the obvious pathways of election, revolution, and war — all of which are ugly and none of which provide much venue for individual initiative...

Could a sufficiently robust cloud country with, say, 1-10M committed digital citizens, provable cryptocurrency reserves, and physical holdings all over the earth similarly achieve societal recognition from the United Nations?

For the "do his bidding" part, the post promises that up to ten $100 prizes will be awarded to people who share constructive reviews on their sites/social media pages (including proposals for extensions).

Previously the site had offered $100 for the ten best hirelings "running a newsletter for technological progressives at your own domain, as a way to begin incentivizing the decentralization of media." (It cited a tweet that argues succinctly that "The NYT is telling anti-longevity stories for us. We must take control of our own story.") In general the site describes itself as "a newsletter for technological progressives. That means people who are into cryptocurrencies, startup cities, mathematics, transhumanism, space travel, reversing aging, and initially-crazy-seeming-but-technologically-feasible ideas." So the newsletter-creating task had envisioned them all "constantly pushing for technology in general and reversing aging in particular, writing like their lives depended on it. In other words, blog or die!"

Other rewards went to the first 10 people to complete three Elixir problems, the 100 people who posted the best inspiring proof-of-exercising photos, and 40 people who helped identify people and places "where the ascending world is surpassing the declining world."

For one of his latest "tasks," Srinivasan wants you to read a long essay on quantum computing (and answer questions), with an optional series of "review emails". $10 in bitcoin will be awarded only to the first and last 50 readers/question-answerers, while another $100 in bitcoin will be awarded to the first and last 5 review-email readers who "persist for a month."
Bitcoin

Tim May, Father of 'Crypto Anarchy,' Is Dead At 67 (reason.com) 60

Tim May, co-founder of the influential Cypherpunks mailing list and a significant influence on both bitcoin and WikiLeaks, passed away in mid-December at his home in Corralitos, California. The news was announced last Saturday on a Facebook post written by his friend Lucky Green. Long-time Slashdot reader SonicSpike quotes Reason: In his influential 1988 essay, "The Crypto Anarchist Manifesto," May predicted that advances in computer technology would eventually allow "individuals and groups to communicate and interact with each other" anonymously and without government intrusion. "These developments will alter completely the nature of government regulation [and] the ability to tax and control economic interactions," he wrote... Running 497 words, it was his most influential piece of writing... May became convinced that public-key cryptography combined with networked computing would break apart social power structures...

In September 1992, May and his friends Eric Hughes and Hugh Daniels came up with the idea of setting up an online mailing list to discuss their ideas. Within a few days of its launch, a hundred people had signed up for the Cypherpunks mailing list. (The group's name was coined by Hughes' girlfriend as a play on the "cyberpunk" genre of fiction.) By 1997, it averaged 30 messages daily with about 2,000 subscribers. May was its most prolific contributor. May and Hughes, along with free speech activist John Gilmore, wore masks on the cover of the second issue of Wired magazine accompanying a profile by journalist Steven Levy, who described the Cypherpunks as "more a gathering of those who share a predilection for codes, a passion for privacy, and the gumption to do something about it...."

WikiLeaks founder Julian Assange was an active reader and participant on the list, contributing his first posts in 1995 under the name "Proff."

The article notes that May "recently expressed disgust with the current state of the cryptocurrency community, citing its overpriced conferences and the advent of 'bitcoin exchanges that have draconian rules about KYC, AML, passports, freezes on accounts and laws about reporting 'suspicious activity' to the local secret police.'"

In his last published interview he told CoinDesk "I think Satoshi would barf."
Open Source

Interviews: Christine Peterson Answers Your Questions 79

You asked questions, we've got the answers!

Christine Peterson is a long-time futurist who co-founded the nanotech advocacy group the Foresight Institute in 1986. One of her favorite tasks has been contacting the winners of the institute's annual Feynman Prize in Nanotechnology, but she also coined the term "Open Source software" for that famous promotion strategy meeting in 1998.

Christine took some time to answer questions from Slashdot readers.
The Internet

O'Reilly Media Asks: Is It Time To Build A New Internet? (oreilly.com) 305

An anonymous reader shares an article from O'Reilly Media's VP of content strategy: It's high time to build the internet that we wanted all along: a network designed to respect privacy, a network designed to be secure, and a network designed to impose reasonable controls on behavior. And a network with few barriers to entry -- in particular, the certainty of ISP extortion as new services pay to get into the "fast lane." Is it time to start over from scratch, with new protocols that were designed with security, privacy, and maybe even accountability in mind? Is it time to pull the plug on the abusive old internet, with its entrenched monopolistic carriers, its pervasive advertising, and its spam? Could we start over again?

That would be painful, but not impossible... In his deliciously weird novel Someone Comes To Town, Someone Leaves Town, Cory Doctorow writes about an alternative network built from open WiFi access points. It sounds similar to Google's Project Fi, but built and maintained by a hacker underground. Could Doctorow's vision be our future backboneless backbone? A network of completely distributed municipal networks, with long haul segments over some public network, but with low-level protocols designed for security? We'd have to invent some new technology to build that new network, but that's already started.

The article cites the increasing popularity of peer-to-peer functionality everywhere from Bitcoin and Blockchain to the Beaker browser, the Federated Wiki, and even proposals for new file-sharing protocols like IPFS and Upspin. "Can we build a network that can't be monopolized by monopolists? Yes, we can..."

"It's time to build the network we want, and not just curse the network we have."
Bitcoin

Swiss City of Zug Will Accept Bitcoin For Public Service Payments (techweekeurope.co.uk) 39

Slashdot reader Mickeycaskill writes: The Swiss city of Zug, famed for its financial sector and low tax rates, will accept Bitcoin as payment for public services up the value of 200 Swiss Francs.The city council hopes the use of digital currencies will help stimulate the local fintech sector and promote the region as a financial hub. If the trial is successful, the value of transactions could be increased and other towns in the canton will join in.

"We want to express our openness to new technologies," said Mayor Dolfi Muller. "We will invite FinTech companies in Zug to meet with the City Council to exchange ideas. Our goal is to provide the best environment for their development."

Bitcoin

Bitcoin Inventor Satoshi Nakamoto Nominated For Nobel Prize 153

HughPickens.com writes: Nobel Prizes are given for making important — preferably fundamental — breakthroughs in the realm of ideas. That's just what Satoshi Nakamoto has done, according to Bhagwan Chowdhry, a professor of finance at UCLA. Chowdhry has nominated Satoshi Nakamoto, the creator of Bitcoin, for a Nobel prize in economics. The Prize Committee for the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, popularly known as the Nobel Prize in Economic Sciences, has invited Chowdhry to nominate someone for the 2016 Prize. He started thinking about whose ideas are likely to have a disruptive influence in the twenty first century: "The invention of bitcoin — a digital currency — is nothing short of revolutionary," says Chowdhry. "It offers many advantages over both physical and paper currencies. It is secure, relying on almost unbreakable cryptographic code, can be divided into millions of smaller sub-units, and can be transferred securely and nearly instantaneously from one person to any other person in the world with access to internet bypassing governments, central banks and financial intermediaries." Satoshi Nakamoto's Bitcoin Protocol has also spawned exciting innovations in the FinTech space by showing how financial contracts — not just currencies — can be digitized, securely verified and stored, and transferred instantaneously from one party to another.

There's only one problem. Who is Satoshi Nakamoto? Suppose the Nobel Committee is convinced that Satoshi Nakamoto deserves the Prize. Now the problem it will face is how to contact him to announce that he has won the Prize. According to Chowdhry, Nakamoto can be informed by contacting him online just the same way people have communicated with him in the past. He has anonymously communicated with the computer science and cryptography community. If he accepts the award, he can verifiably communicate his acceptance. Finally, there is the issue of the Prize money. Nakamoto is already in possession of several hundred million U.S. dollars worth of bitcoins so the additional prize money may not mean much to him. "Only if he wants, the committee could also transfer the prize money to my bitcoin address, 165sAHBpLHujHbHx2zSjC898oXEz25Awtj," concludes Chowdhry. "Mr Nakamoto and I will settle later."
Bitcoin

Decoding the Enigma of Satoshi Nakamoto 61

HughPickens.com writes: For the past year Nathaniel Popper has been working on a book about the history of Bitcoin and writes in the NYT that it is hard to avoid being drawn in by the almost mystical riddle of Satoshi Nakamoto's identity. Popper has his own candidate for founder of Bitcoin, a reclusive American man of Hungarian descent named Nick Szabo. Szabo worked in a loosely organized group of digital privacy activists who over decades laid the foundation for Bitcoin and created many parts that later went into the virtual currency. Bitcoin was not a bolt out of the blue, as is sometimes assumed, but was instead built on the ideas of multiple people over several decades. Several experiments in digital cash circulated on the Cypherpunk lists in the 1990s. Adam Back, a British researcher, created an algorithm called hashcash that later became a central component of Bitcoin. Another, called b money, was designed by an intensely private computer engineer named Wei Dai.

It may be impossible to prove Satoshi's identity until the person or people behind Bitcoin's curtain decide to come forward and prove ownership of Satoshi's old electronic accounts and at this point, the creator's identity is no longer important to Bitcoin's future. Since Satoshi stopped contributing to the project in 2011, most of the open-source code has been rewritten by a group of programmers whose identities are known. According to Popper whoever it is, the real Satoshi Nakamoto has many good reasons for wanting to stay anonymous. Perhaps the most obvious is potential danger. Satoshi Nakamoto most likely collected nearly a million Bitcoins during the system's first year. Given that each Bitcoin is now worth about $240, the stash could be worth more than $200 million. That could make Satoshi a target. "With his modest clothes and unassuming manner, Mr. Szabo could be the kind of person who could have a fortune and not spend any of it," concludes Popper, "or even throw away the keys to the bank."
Bitcoin

Video Jim Blasko Explains 'Unbreakable Coin' (Video 2 of 2) 39

Today, the conclusion of my talk with Jim Blasko (here's part 1), who encourages you to go start your own crypto currency, because it's a fun exercise and because every entrant adds new ideas to the mix. As you'd expect, he's bullish about both his own Unbreakable Coin and cryptocurrencies more generally; how any given given currency performs, though, is an open question: U.S. dollars, Euros, or Yen may not go experience any meteoric rises, but their stability, even with inflation, is a nice feature, and so is their worldwide convertibility.

Regulation, speculation, fraud, and cultural fashions all play a role in making new currencies risky; reader mbkennel yesterday asked an insightful question: "Are you up to loaning bitcoin or something less popular for 10 years?" Confidence in any given currency can be tested with the terms current holders are willing to accept to make loans payable in that same currency. (On the other hand, if large companies will accept it in payment, they've probably got an idea that a given currency will be around next month or next year.) If you've bought any form of crypto currency, what's been your experience, and what do you expect in 10 years? (Alternate Video Link)
Encryption

Building an Opt-In Society 182

An anonymous reader writes "In a talk at Y Combinator's startup school event, Stanford lecturer Balaji Srinivasan explained his vision for governing systems of the future. The idea is to find space to set up a new 'opt-in' society outside existing governments, and design it to take full advantage of technology to keep people in control of their own lives. That means embracing tech that subverts existing industries and rejecting regulation on new ways of doing things. '[N]ew industries are simultaneously disrupting existing ones while also exiting the system entirely, he says. With 3D printing, regulation is being turned into DRM. With quantified self, medicine is going mobile. With Bitcoin, capital control becomes packet filtering. All of these examples, Srinivasan says, are ways in which technology is allowing people to exit current systems like physical product production and distribution; personal health; and finance in favor of spaces of their own creation.' Srinivasan's ideas are a natural extension of a few proposals already in the works — Peter Thiel has been trying to build a small tech incubator city that floats in international waters, outside of government control. Elon Musk wants to have a Mars colony, and Larry Page has wished for a tech-centric Burning man that's free from government regulation. 'The best part is this,' Srinivasan said. 'The people who think this is weird, the people who sneer at the frontier, who hate technology, won't follow you there.'"
The Almighty Buck

How To Stop Prediction Market Manipulation 129

Frequent contributor Bennett Haselton is still thinking about prediction markets, and giving away money. He writes: "In an article last December I described a problem with prediction markets, where even markets with cap on betting limits could be manipulated by a single trader willing to spend a lot of money to distort the marketplace odds. So I offered a $100 cash prize to be split between readers who collectively came up with the best solution to the problem. Here's an idea that I think would work." Read on for the rest.
Hardware Hacking

'Wiki Weapon Project' Wants Your 3D-Printable Guns 570

Sparrowvsrevolution writes "Earlier this month, University of Texas law student Cody Wilson and a small group of friends who call themselves 'Defense Distributed' launched an initiative they've dubbed the 'Wiki Weapon Project.' Their goal: to raise $20,000 to design and release blueprints for the world's first entirely 3D-printable gun. If all goes according to plan, RepRap users will soon be able to turn the project's CAD designs into an operational firearm capable of shooting at least one standard .22 caliber bullet, all in the privacy of their own garage. Wilson and his handful of collaborators at Defense Distributed plan to use the money they raise to buy or rent a $10,000 Stratysys 3D printer and also to hold a 3D-printable gun design contest with a $1,000 or $2,000 prize for the winning entry — Wilson says they've already received gun design ideas from fans in Arkansas and North Carolina. Once the group has successfully built a reliable 3D-printed gun with the Stratysys printer, it plans to adapt the design for the cheaper and more widely distributed Reprap model. The group had already raised more than $2,000 through the fundraising platform Indiegogo, but the site took down their page and froze their funds on Tuesday. They're continuing to seek donations through their website via Paypal and Bitcoin."
Bitcoin

Amir Taaki Answers Your Questions About Bitcoin 262

Last week, you asked questions (many rather pointed!) of Amir Taaki, co-founder of Bitcoin Consultancy, which develops Bitcoin related services, exchanges and Bitcoin itself. (They also own Britcoin.co.uk.) Says Taaki: "When creating video games I spent much time imagining tools to make artists lives easier, and how we could keep funding developers to write free software. One contribution of mine to the community was a site where developers could get funded for developing features and I'd love nothing more than to pay people to write free software." With regard to Bitcoin, similarly, "We need fulltime developers thinking about the problems and solutions needed to keep this system running. We aim to get all the creative thinkers from the community and provide a mechanism for enabling their work." Below find his answers to the questions readers raised.

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