Tag Archives: Aeon Cash

Monero and CryptoNote Derived Cryptocurrencies Doomed?


ASIC Resistance is futile.

Sitting in the pits of their protocol is a rotten thing. It’s at the core of the CryptoNote code. The inappropriately applied idea of “egalitarianism.” I mention this now because it comes up constantly on the “boards” during discussions. By boards, I mean the official (and unofficial — think Reddit) Monero and Bytecoin and other cryptocurrency channels. Most of the time, it is ignored or given some whitewash to hide the true colors.

It’s also a way to fool the average Joe.

There are discussions about ASIC’s v. CPU v. GPU v. FPGA ad nauseam. On the surface, it all seems rather mundane but there is a missing piece here. It is the piece called “why.” As in “why” are the CryptoNote fans so adamant about keeping the ASIC’s out?

There are built-in protection guarantees offered by the CryptoNote systems, you see. They advise that the most efficient mining systems will be made less efficient, by design. So, don’t worry comrade, stick around, help us developers stay rich. We will protect you by leveling the playing field. Kicking out the best ASIC players. In other words, even the most inefficient e-miners or e-mining systems will carry the same weight and power as the efficient ones.

On the surface, the CryptoNote systems appear to reflect certain political systems. The United States, for example, has two Senators (House of Lords) from each state and it balances against representatives (House of Commons), which are population-based. So the state of Rhode Island (our smallest state) has the same senatorial power as California, one of our largest socialistic failing states.

But the application of political/governmental power, I assert, is to protect a very narrow set of human rights. The right to life, liberty (freedom) and to own property…in the pursuit of happiness as it were.

If any CryptoNote coin claims that equality before the law is egalitarian, then I’d support them but they don’t mean this. They are not talking about inalienable human rights. Rights we are born with and not handed down or proclaimed on some document or granted by a group of thugs on a Wednesday. No, the CryptoNote gang is talking about social leveling and control when you use their protocol. E-mine with us, they say and we’ll do our best to look out for the “little guy.”

One cannot deny a certain group of people their rights, simply because they are able to build better, faster, more efficient machines to mine more gold. In cryptocurrency, however, you can punish such people. It’s a man-made network modeled on some very shaky ideals. It can change like the wind and reflect, in effect, a type of communistic crypto-paradise. From each according to his ability, to each according to his need. And we all know how well those political systems work. (Hint: they don’t.)

Unfortunately, this is the way many in the cryptocurrency community define “equality.” Egalitarianism with the blurred lines. If an ASIC or any system is developed, that will perform (e-mine) faster, it is blocked. They don’t want that. ASIC’s are sidelined in favor of slower, less efficient systems, so that the average slow processor (think ‘Comrade-in-Arms’) may still participate. That is not “equality” it’s a recycle bin bromide.

Of course, this won’t happen until the developers reap their rewards, however. After they suck in all the wealth, like any good group of politburo chiefs, like say, Bytecoin still does. Since they are anonymous, they can simply walk away and lay on a nice beach, whilst you wonder why such a perfect egalitarian dream went bust. Where’s your dacha, comrade?

Think about it. Fearing faster and better computing machines that can race through the protocols at speed, e-mine with abandon, and process with efficiency is backward thinking. It is the equivalent of the rolling “brownout” solution, instead of building more power plants. Of having everyone wearing dark sunglasses on a moonless night while driving his family in a compact vehicle on a major highway, with his headlights off. No trucks allowed, they can haul too much gold.

The idea is not to fear progress but embrace it. Use it. Accept it. Not hate it for being good, but use the technology to build a better and stronger private cryptocurrency, such as Monero. (Not Bytecoin. Why is that one still around? How many people will they fool?)

Monero suffers the “equality” falsehood. The egalitarian foible. You can see it in their constant “bar lowering.” They fail to embrace and use the newest tech. They wish to hold onto their slingshots, while the machine guns are being oiled and airplanes fly over their collectivist heads. They escape to their coding labs, tweak the protocols and rejoice that for one more week, they have halted the advance of technology with software. The Arms Race continues, however. And it will pass them by, if they do not adapt.

We all probably understand the reasoning. Why Monero (CryptoNote based coins) wants to keep the waters as level as possible by plugging the holes that keep appearing in their dam. To make sure big players don’t swoop in and take over the spillways. Allegedly, this is the current problem with bitcoin. But as the cracks keep appearing, the dam may break anyway.

How do they solve their crisis? How could any cryptocurrency, for that matter, make the process as fair as possible and not allow one giant mega computer to take over? That question will undoubtedly be answered by the new tech itself. Surely, if new systems (new tech) are developed, new cryptocurrencies will evolve right along with them. It seems that the “fear” of quantum computing should be tempered by the realization that it will also be utilized to better secure the new types of cryptocurrencies that will develop in its wake.

How about at present though? How can we help the private coins? Or any proof-of-work based cryptocurrency? If the idea is to mimic mining for gold, then a limit (number) of coins should be set. That has been done. But when more e-miners flock to the e-gold fields, it seems that less e-gold is to be had. Or, one or two strike it rich and they begin to buy out the others. Then the big groups come with their Goliath machines and the small miner moves on.

The finding of real gold is not about power, specifically. It’s about the search, the research, the location, the process, the physical reality – where the gold is – and sometimes it’s pure chance. Cryptocurrency of the alleged egalitarian type, the man made type, simply turns down the e-gold flow, when more e-miners flock to the field and vice versa. It does this by rejecting e-mining hardware advancements and playing to the weak hands – the comrade with a (CPU) pick and shovel — and that makes it weaker. It is not fair to those who are wealthier and smarter, but it does cater to the less apt and the less affluent. The upshot is, any two-bit dictator can force his slave CPU laborers to e-mine.

One problem with cryptocurrency of the people (as I submit Monero tries to be) is that the e-miners also own the e-banks – the transmission mechanism. The e-miners dig up the e-gold, smelt it, e-mint it into pretty little e-bars and if the e-miners are effective, they can take over the entire mine (51% Attack), and reassign all the e-gold ever e-mined, to themselves. Now that’s a problem. Chances are, if this happened, the e-gold would then become worthless.

Some say that this possibility (51% Attack) alone keeps the big miners at bay…unless they want to destroy the cryptocurrency. Now, who would want to do that? Competitors? Governments? Methinks yes, in the case of XMR or haven’t you heard?

Think about that. If there was only a single real gold mine on the entire planet you’d want to make sure no one large group owns it, right? So you’d pass a law to prevent it. “No smart, efficient miners/bankers allowed on Earth’s only gold mine.” Only picks and shovels here. Ma and Pa banks, please. We call it protectionism or a kind of a tariff. And we all know what happens then, everyone loses. But there are many real gold mines, just like there are many real cryptocurrencies.

Random e-gold (e-bar finds) are not fair they’re just random, especially if there’s a single e-mine, like Monero or Aeon. It’s like everyone digging in the same e-hole, but only one e-miner or a group of e-miners is rewarded at a time. In the real world, there are lots of real gold mines, remember? Lots of chances to strike it rich. It’s not, “Here you go, you won this e-gold-bar, but nobody else did. Maybe next time they will strike it rich! Oh, not really, we have a one e-gold-bar at a time policy. Sorry. No major strikes allowed, ever.”

Gold is not all in one place like Monero’s e-gold is or Bitcoin’s. And yes, I know I can mine different crypto’s. If I mine them with a pick and shovel, however, rather than an industrial process, it should make a difference. If I am wealthier and smarter and I can e-mine more e-gold with my industrial sized ASIC, than the guy with the CPU shovel then I should reap more e-bars, not be told that I’m being stingy. Not have to wait my turn at the freaking roulette wheel, like all the other nice e-people. At the same time, I shouldn’t be able to own the one e-bank (or the e-casino, if you prefer) that controls all the e-gold.

Monero’s (or any cryptocurrency for that matter) e-gold should not be e-mined all in one place. E-miners should not be told the e-mine is closed when their big e-steam shovels come out. No crypto should be 51% attack-able in the first place. We don’t lose our gold when the Chinese Government stocks up on gold bars. Why should we lose, if a bot scams the e-mining algo?

If Monero (or any cryptocurrency) can get to that place, then they or Aeon might survive. And by “place” I mean like the gold mining/selling process. Gold is mine-able by different processes, and with differing rewards. One might hit a “strike” of gigantic proportions in a mountain and then bring in the big guys or sell the “strike” to others. One might use a vast process that filters the ocean for gold. What is the equivalent with crypto? ASIC’s?

Then reality kicks in.

If a cryptocurrency does not attempt to provide a service like a smart contract or a remittance mechanism or represent an asset, it might fail for the same reason fiat currencies fail. It’s happening with crypto-fiat faster since we are not forced to use them. Unless they find some better way to instill trust.

(Full disclosure: I own XMR’s.)

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Do You Own “S2S Compromised Cryptocurrencies?”


It’s about peers versus subjects, is it not?

Are you a P2P or and S2S Person? That’s the gist of it, right?

P2P is what? Peer to peer, right? Person to person.

S2S is what? Subject to subject. Slave to slave, in some countries.

Pause. Think. Slave to slave = S2S?

So much is said in that P2P acronym. So much is lost in S2S. It matters.

If you are P2P, you are probably safe. But you can be safer. You can do one better.

As an S2S believer, you are in trouble. But don’t take my word for it. Ask Mr. History.

When observing the changing cryptocurrency landscape, we note capitulation and appeasement. Those who bring change; and those who want to stick to the old way of doing business. If not the old way, then bending the new way to the will of the old.

But P2P is not new. It has just been adapted to the blockchain.

S2S is the old way.

Why do we own certain cryptocurrencies, but not others? Why is the P2P idea the best thing to have hit cryptocurrency, let alone the human condition, in thousands of years?

But…there is P2P and there is private P2P, correct?

Many of the newest breeds of crypto-entrepreneurs have forgotten the words of Satoshi Nakamoto and have instead, chosen to use the blockchain technology for other reasons. And there is nothing wrong with that, save the lack of vision of such people. The automatic and almost tribal reductionism is inherent in the herd mentality.

In other words, the desire of many to belong to the herd at any cost. Spare no expense, they say. Trade your privacy and your freedom for a false sense of security.

Don’t rock the boat. Don’t go against the flow. You don’t really need or want P2P. You need S2S. We hear this so often.

So, let’s recall those words, just a few of them, purposely embedded within the Bitcoin Blockchain. “Satoshi’s Warning,” I will call it.

These words resonate today, and I submit that they will resound into the future — if we are still here. And these words will be taken more seriously in ten or twenty years, if world economies do finally collapse, and if cryptocurrencies save the day after that foreseen collapse.

The warning:

‘The Times 3 January 2009 Chancellor on brink of second bailout for banks’.

This statement gives one the clear sense that Satoshi had a problem with governments and bank bailouts. He did not agree with the current monetary system in general.

Why?

We can speculate about his motives, read his various quotes, but can we agree that he/she/they invented a well-functioning, but not private, peer-to-peer e-cash system? It seems to me that Satoshi, and I have stated this before, provided the outline – the foundation – upon which others could build.

And remember that: P2P. Let that echo over and over until it seems to lose meaning. Until the echo of it comes back after a time and reminds us what it really is. What its value really is.

P2P is that rock in the river, standing against the tide of financial tyranny. If that rock is hardened (privatized), all the better, but bitcoin’s P2P rock sits high in the rapids. It is “exposed” P2P and it is sandstone. Sandstone will not last. Even so, some want to convert bitcoin to S2S, now. They want to blast that sandstone apart.

If “exposed” P2P is the core value of the bitcoin service, how can it be improved? Satoshi warned that this P2P system was only temporary. That it probably would not last. Was he correct?

Satoshi showed the way.

Then Nicolas van Saberhagen came along and privatized the blockchain. It was the next step in the evolution of blockchains. Many other P2P models are “exposed” at some level.

Saberhagen (he/she/they) created CryptoNote and after a rocky start a new crypto pulled away from the pack: Monero (XMR).

Monero has one well known face: fluffypony (Riccardo Spagni). He came forward and I submit, took his freedom in his hands when he did so.

For all the rancor surrounding Monero and all the concerns I still have about its developers remaining behind the curtain of anonymity, I respect Mr. Spagni. And that is the point: trust. Not to mention that Monero was the first successful private crypto on earth. (Okay – that’s an assertion. Prove me wrong.)

There is another crypto that deserves mention here and I have cited it before. Aeon. “Smooth” is the developer of Aeon and works on Monero. Smooth is anonymous. This might be important in the future since Monero is slowly gaining acceptance on an international scale. Aeon would seem to be the logical partner in that effort.

And there are other private crypto’s out there, but I am only mentioning Monero and Aeon in this post as examples. Many of the other privacy based coins do not have the longevity, have changed hands, or have known developers – which is a risk.

There are arguments against the PoW (proof-of-work) based blockchains, such as Monero and Aeon, as well. Even bitcoin uses PoW, but Ethereum is apparently considering a PoS (proof-of-stake) blockchain addition or change-over. PoS is more energy efficient, certainly.

Obviously, these “proofs” will evolve over time, but getting hung-up in the debate may not be the best course of action.

In fact, allowing the salesmen, flush with crypto-cash, financed to the gills with venture capital, to present vivid images of Crypto 3.0, is a trip to S2S.

How so? These salesmen, often experts in the field of blockchain, are not experts in the field of privacy.

The war now is to destroy the very essence of bitcoin and any cryptocurrency attempting to remain private. It is an effort to undermine the best P2P out there. Usually, by means of overregulation and/or making such transactions illegal.

KYC. Know your customer. Papers please, comrade. You might be a communist-terrorist-tax-evading-immigrant. You might be a criminal. Just in case, we need to know you. Who is this we?

On the other hand, you are probably just an innocent citizensubject wanting to keep as much of your money as possible. And it is your currency, right? No, it is the State’s Currency. “But I have some XMR’s,” you answer, “not State Currency.” All the more reason to know you, comrade.

Privacy? You have no right to that; the herd tells you. What are you trying to hide? Nothing? Prove it. Show us all your currency and let us decide.

Welcome to America, land of the citizen-subjects. Hey, at least we can emigrate – so long as we have paid our taxes first. Even if you hand in your citizenship-subject papers, you must still pay your exit bills, before you may emigrate, right? And they dare call this freedom? (Hey, I’m American, but America is not a place – it was an idea – in the past.)

Is it any better in the UK, Australia, Canada, or Switzerland?

Because of government pressure, the cryptocurrency innovators are beginning to give in. Or maybe they never had the guts in the first place. They are creating what amounts to “S2S” or Subject-to-subject transactions. Weak sister versions of the almost true form. Compromised crypto’s, the lot of them.

But I’m sure they work just fine.

These new S2S innovators are the compromisers. They help support the current fiat monetary systems. The highly centralized, highly controlled, inflation pushing bureaucracies.

I labeled Cardano (ADA) as S2S compromisers. But they are not alone. Ripple (XRP) is S2S compromised as well. Even Ethereum (ETH)  advises that they will comply with governmental information requests. I’m certain there are many more S2S compromisers.

Few have the tenacity to protect privacy. Legitimate privacy. Many of the cryptocurrency exchanges bow to the might of “.gov” as well.

These S2S capitulators have good people working for them, however. They have children and dreams and I do not fault them for coloring within the lines. If they are to remain at liberty, to exercise their delimited freedoms, they must bow down. No blame can be placed upon subjects working within their enclosures.

It is odd that a fluffypony will not bow, however. It requires vision and nerve to stand, virtually alone. To back a crypto that will not comply.

The same can be said of Smooth and all the developers of both coins (Monero and Aeon). To believe that the “.govs” of the world have not discovered some of their identities, is foolish. And they know it.

And don’t give me that bull about sacrifice. These men and women working behind the curtain to privatize crypto are not doing so for free. Their trade, their gain, is profit. Their potential loss is their freedom. Is this a sacrifice or a trade? Are they, in a sense…

…mutually pledging to each other, their lives, their fortunes and their sacred honor?

Private P2P is a down payment on future value few can imagine. To buy the freedoms of their children. To refuse the current call for S2S, and see what happens.

I hope these private P2P men and women, keep at it.

If you need to convince yourself that privacy is important, buy this: “For the New Intellectual”


 

Note: As usual, the above is only an opinion. I welcome any responses. In the meantime, do not base investment decisions upon any of it. Call your banker, broker, insurance salesman and/or financial advisor, if you must.