I read all the best Bitcoin content out there so that you can listen. This is a crypto. Kana me quick read with guys swan. All right. So Lucas has let me know that I've been pronouncing his name wrong warning. I pronounce it wrong for this entire episode. It is not newsy. It is Newt see like pizzas got like the TS sound so just a heads up nothing but incorrect pronunciation for this episode. What is up crew? Welcome back to the show. I am guys Swan the guy who's read more about Bitcoin then anybody else, you know, I got another quick read today. Sorry about the little bit of a gap, but I figured it would be a perfect opportunity to let you guys digest money Bitcoin and Time by Robert Breedlove. And for those of you who had listened to the earlier sections that we did. I actually never got through the time piece and that was like an hour and 10 minutes of that. And a half hour, um beast. So if you enjoyed those first parts and haven't listened to the thing in full, I highly recommend it. We are hitting another one by Lucas newsy today, which we've done I think three or four pieces by him on the show and this is a great one that I want to talk about and we'll also talk about some of his previous works that we've done. But without further Ado, let's go ahead and just jump in to this Reed and then we will talk about it afterward. This is Again by Lucas newsy a look at innovation in Bitcoins technology stack. Bitcoin has come a long way over the past 10 years relative to the first iteration of its software the quality and reliability of current implementations has remarkably improved rapidly and organically Bitcoin was able to lure a legion of developers to dedicate thousands of hours to improve and at times revamp most of its underlying code base. Nevertheless Bitcoin is still the same much like a constitution the core set of consensus rules that Define its monetary properties such as its algorithmic inflation and hard-coded Supply remain unchanged time and time again factions have attempted to change these core properties, but all hostile takeovers. Thus far have failed. It's often a painful process, but one that highlights and solidifies to of Bitcoins. the biggest virtues One no single party can dictate how Bitcoin evolves into the lack of centralized control protects Bitcoins monetary properties. Interestingly, these are the rules that attract cypherpunks and institutional investors alike. These are the rules that make Bitcoin and unprecedented type of money. However, these are also the rules that make developing software atop Bitcoin more challenging than any other digital asset in essence Bitcoins Constitution Awards developers a limited toolkit so that they can't infringe upon its monetary policy. There's too much at stake to move fast and break things. That means that innovation in Bitcoin requires creativity patients and perhaps most importantly ego minimization after all the fundamental rules embedded in Bitcoins Constitution, ultimately superseded technology. This is why Silicon Valley has had a hard time understanding Bitcoins value proposition. It's not just a technology Financial instrument or consumer application. It's an higher monetary system supported by technology changing Bitcoins Constitution requires a quasi political process that can infringe upon its monetary properties. Therefore technological innovation is implemented as modules. As often pointed at Bitcoins modular approach to Innovation is analogous to the evolution of the Internet Protocol Suite whereby layers of different protocols specialized in specific functions emails were handled by SMTP files by FTP web pages by HTTP user addressing by IP and packet routing by TCP over the years each of these protocols. Evolved to provide the full experience that you're having this very second. In Spencer Bogaerts, excellent post on the emerging Bitcoin technology stack. He makes the case that we are now witnessing the beginning of Bitcoins own protocol Suite. As it turned out the inflexibility of Bitcoins core layer gave birth to several additional protocols that specialize in various applications, like Lightnings bolt standard for payment channels Innovation is both vibrant and relatively safe as this modular approach minimizes systemic monetary risks. So much is happening at the many layers of Bitcoins technology stack. It can be incredibly difficult to keep track of emerging Solutions. The diagram below is an attempt to map all relatively new initiatives and showcase a more complete picture of Bitcoins technology stack. It is not exhaustive and it does not signal any endorsement for specific initiatives. It is nevertheless impressive to see The Innovation is being pushed. On all fronts from layer 2 Technologies to emerging smart contract Solutions begin graphic. He's basically got a web of a connected Technologies and their main themes like the layer 2 Technologies around performance and usability around smart contracts privacy Mining and side chains and then goes off into branches from their listing out a lot of the major technologies that are currently being In worked on I highly encourage checking this out because this is a pretty amazing graph here of everything that is currently going on in Bitcoin and paints a pretty amazing picture of the entire system. But let's go ahead and jump back into the article. I will link to this in the show notes and also share the image on Twitter so that you can check it out. layer 2 There has been a lot of talk lately about the rate of adoption of the lightning Network Bitcoins most prominent layer to technology critics often point at an apparent decline in the number of channels and total Bitcoin locked in lightning two metrics frequently used to evaluate user adoption. Although the community has converged on such metrics. It is important to point out that they are fundamentally flawed given the way lightning works under the hood. One of the most underrated virtues of the lightning network is its straightforward privacy properties since lightning does not rely on global validation of all state changes IE. Its own blockchain users can transact privately using additional techniques and network overlays like tour at this point. We can estimate the percentage of private usage of the lightning Network by analyzing the number of Channel opening transactions. It's on chain and comparing that to the number of public channels off chain Christian Decker estimates that 41 percent of lightning channels are private. Activity happening within these channels is not captured by popular lightning explorers as such an increase in private usage of lightning results in a decrease in what can be publicly measured leading observers to erroneously conclude that adoption is down while it is true that lightning must overcome substantial usability barriers before it can enjoy wide adoption. We must stop using misleading metrics to make assertions about the Current state of the network as Decker pointed out in his talk at the latest lightning conference in Berlin, even the above estimate of private versus public channels is flawed as the adoption of snore signatures will make Channel opening transactions indistinguishable from regular transactions. Another interesting recent development in the field of layer to privacy was the creation of what's at a private messaging system atop lightning. This project is a modification of the lightning demon, which allows for re layers of private messages The Messengers that connect the entity's communicating to be compensated for their services via micro payments, this decentralized censorship and spam resistant chat was enabled by Innovations in L&D itself such as In improvements in the lightning - onion lightning Zone onion routing protocol. The growth of the labs or lightning applications demonstrate the wide applicability of these Innovations when it comes to Consumer applications from a lightning powered cloud computing VPS to an image hosting service that shares ad Revenue via micro transactions, and that's just layer to Innovation within lightning more. Generally we Define layer to as a suite of applications that uses Bitcoins base layer has a court where exotic Events are reconciled and disputes are settled. As such the theme of data anchoring on Bitcoins blockchain is much broader with companies like Microsoft pioneering a decentralized ID system a top Bitcoin such initiatives increase the demand for own chain reconciliation and are instrumental for the long-term development of a Bitcoin fee Market. smart contracts there are also a number of projects attempting to bring back expressive smart contract functionality to Bitcoin in a safe and responsible way. This is a significant development because starting in 2010 several of the original Bitcoin opcodes the operations that determine what Bitcoin is able to compute or removed from the protocol this came after a series of terrifying bugs were unveiled which led Satoshi himself to disable some of the functionality of script Bitcoins programming language over the years it became crystal clear that there are non-trivial security risks that a company highly expressive smart contract functionality. The common rule of thumb is that the more functionality is introduced to a virtual machine the collective verification mechanism that processes opcodes, the more unpredictable its programs will be more recently. However, we've seen new approaches to Smart contract architecture in Bitcoin that can minimize unpredictability, but also provide vast functionality The devised of a new approach to bitcoin smart contracts called Merc alized abstract syntax trees or Mast has ignited a new wave of supporting technologies that attempt to optimize the trade-offs between security and functionality. Most prominently is Taproot An Elegant implementation of the Mast structure that enables an entire application to be expressed as a Merkle tree, whereby each Inch of the tree represents a different execution outcome along with Taproot will come a programming language called tap script which can be used to more easily express the spinned conditions associated with each branch of the Merkle tree. Another interesting Innovation that has recently resurfaced is a new architecture for the implementation of covenants or spend conditions on bitcoin transactions originally proposed as a thought experiment by Greg Maxwell back in 2013 covenants are an approach to limit the way balances can be spent even as their custody changes. Although the idea has existed for nearly seven years covenants were impractical to be implemented before The Advent of Taproot now a new opcode called up check template verify formerly known as up secure. The bag is leveraging this new technology to potentially enable covenants to be safely implemented in Bitcoin. At first glance covenants are incredibly useful in the context of lending and perhaps Bitcoin based derivatives as they enabled the creation of policies like clawbacks to be attached to specific Bitcoin balances, but their potential impact on the usability of Bitcoin goes vastly beyond lending covenants can allow for the implementation of things like Bitcoin vaults which in the context of custody provide the equivalent of a second privately. Key that allows a party that has been hacked to freeze stolen funds. There are so many other applications of this technology, like non-interactive payment channels congestion control transactions coins. It truly deserves a standalone post. For more on this check out Jeremy Rubens be IP draft. It is important to note that schnoor signatures are the technological primitive that make all of these new approaches to Smart contracts possible. After schnoor activates even edgier techniques can be theorized such as script list scripts which could enable fully private and scalable Bitcoin smart contracts to be represented as digital signatures as opposed to opcodes similarly discrete log contracts also employ the idea of representing a smart contracts execution outcome as a digital signature for better privacy and scalability. Together these new approaches may enable novels smart contract applications to be built atop Bitcoin and schnoor is the basis of it. Mining there have also been some interesting developments in mining protocols. Especially those used by mining pool constituents, even though the issue of centralization in Bitcoin mining is often wildly exaggerated. It is true that there are power structures retained by mining pool operators that can be further decentralized. Namely pool operators can decide which transactions will be mined by all pool constituents which grants them considerable power over time. Some operators have abused his power by censoring transactions mining empty blocks and reallocating hashing output to other networks without the authorization of constituents. Thankfully there are technologies that are attempting to flip that power structure upside down. One of the most substantial changes coming to Bitcoin mining is the second version of stratum. The most popular protocol used in mining pools stratum V2 is a complete overhaul that implements better Hash a secondary protocol that enables mining pool constituents to decide the composition of the block they will mine and not the other way around. Stratum V2 also implements several optimizations and allows mining pool constituents to better communicate and coordinate. Another interesting development in the mining industry that should contribute to more stability is reignited interest in hash rate and difficulty derivatives. These can be particularly useful for mining operations that wish to hedge against hash rate fluctuations in difficulty readjustments while these derivatives have yet to be productized this marks an interesting evolution in the industrialization of Bitcoin mining. privacy After our report on schnoor signatures some privacy coin Advocates were outraged by the suggestion that sufficient privacy may be optionally achieved in Bitcoin at some point. Although this suggestion May challenge Theses around the long-term value proposition of privacy assets. There are a host of emerging protocols that can bring better privacy into Bitcoin. Although it is likely that privacy and Bitcoin will continue to be more of an art than a science. Since there have been interesting Innovations on this front that are worth highlighting. Before we delve into specific privacy Innovations. It's important to highlight that the biggest impediment to private transactions across digital assets is the fact that most solutions are half-baked privacy assets that focus on transaction graph privacy often neglect Network level privacy and vice versa both vectors suffer from a lack of maturity and usage which makes transactions easier to D anonymize via statistical traceability analysis. He's at either the peer-to-peer Network layer or the blockchain layer. Thankfully there are several projects pushing boundaries on both fronts when it comes to transaction graph privacy Solutions like P2 EP or pay to end point and check template verify are interesting because privacy becomes a byproduct of efficiency as novel approaches to coin join these Solutions can increase the adoption of private transactions by users that are solely motivated. By lower transaction fees although privacy guarantees are still suboptimal under a coin model unshielded Cent amounts can still be beneficial as they preserve the auditability of Bitcoins Supply and free float. if lower transaction fees become a motivator and lead to an increase in Bitcoins anonymity set the percent of UT EXO's that are coin join outputs, the anonymization Via statistical clustering analysis will become even more subjective than it already is some Block Chain analysis companies have been able to trick law enforcement agencies into believing in assigned probability that a you T XO belongs to a specific person, but the underlying model is all Extremely nuanced and fragile if the majority of UT EXO's become coin outputs that might break existing approaches to clustering. Before that can happen. There's a tremendous amount of work that needs to be done on the usability front so that all Bitcoin users tech-savvy or not have equal access to privacy mechanisms. Beyond pay to end point and check template verify a recent development in usability was The Proposal of Snicker simple non-interactive coin join with keys for encryption reused a novel way to generate coins with untrusted peers Snicker combines several Technologies to Grant users access to coin transactions without having to trust or interact with their peers. Progress is also noticeable in protocols that aim to improve the privacy and efficiency of peer-to-peer Communications over the course of 2019. The privacy-preserving network protocol. Dandelion was successfully tested across from multiple crypto Networks. Even though privacy and transaction propagation is not a silver bullet when it comes to the full spectrum of peer-to-peer communication protocols like dandelion can still meaningfully increase user privacy by hiding the originating IP address of the node broadcasting a transaction a final development in Bitcoins. Networking stack worth highlighting is the new transaction real a protocol called early although still at a very early development. Stage early is an important innovation because it can considerably reduce the bandwidth requirements of running a Bitcoin full node. If implemented early lays efficiency gains can enable users to participate in transaction relay, which is bandwidth intensive and continuously validate the chain, especially in countries where internet service providers impose caps on bandwidth the tip of the iceberg it is incredibly difficult to track all the Innovation happening in Bitcoin. And this post is just a scratch on the surface. This brings us to the key takeaway of this piece Bitcoin in its totality is a constantly evolving Suite of protocols. The modular approach to Innovation described here is important as it plays a key role in minimizing politicize mm in the evolution of Bitcoin in protects, its fundamental monetary. Please remember this article the next time someone claims Bitcoin is a static technology. Connect with DAR. If you'd like to learn more about Dar click here to reach out or our free daily newsletter chock-full of the highest quality crypto news and information sign up here links included. All right dir is digital asset research. That is Lucas newsy is the director of Technology over there and I will link to all of the stuff in the show notes. So don't forget to check that out. Let's go ahead and hit our sponsor and then let's talk about This awesome piece in the development in the state of the Bitcoin protocol Suite. For anyone who has a podcast anchor cannot be beaten particularly for trying to get off the ground their entire platform is free. This includes unlimited hosting both in audio that you upload and how much your listeners download. I have uploaded an incredible library of audio now and I've never paid anchor a dime. In fact, they connect me with other sponsors and have run an ad consistently on my show. So they've paid For exposure to my audience that's really hard to beat even if we ignore that I can record directly in the app or my browser. I don't need any other software. If I don't want it I can edit at sound effects clips and they automatically published to all of the top podcasting platforms. I never had to do a thing. So if you were thinking of starting a show or already have a podcast, there's no better platform out there check out anchor by downloading the app or go to Anchor dot f FM today Our this is definitely going to be my go to for the next little while on because that's constantly hear that Bitcoin is stagnant and not doing anything because we're not making fundamental changes to the monetary policy or to the fundamental consensus rules, which is opening the up the Avenue of changing the monetary policy. Which and that's one of the one of the most important ideas that you can pull from. This is that Bitcoin is the foundation of an entire monetary system. It will be modularly applied to all of the different applications which we can use a monetary system to solve which it's such a crucial idea and it's so so deeply misunderstood because it's a very abstract and nuanced topic the whole concept of of this as a new thing. It's very different from the sort of perception that was laid out in the white paper and it was come to thought of originally And I think it's a different than what Satoshi originally thought. He was solving. I think the more important problem that was solved was the monetary system the fact that he created a way to issue own and Trust the the hierarchy of incentives that the set of incentives within a monetary system without any third party and he knew that the problem was was trust at this all over the white paper. Is that all the problems are with trust? With the whole abstract says and that's the problem. He solved in with it through the immense amount of a number of Technologies and things that we can build on top of this that we can tether to the chain as a dispute resolution system as a ultimate Arbiter as to who owns what in external or a branch networks off of this thing is Limitless and clearly the the the protocol Suite is not stagnant and I love the examples as emails were handled by SMTP files by FTP web pages by HTTP user addressing by IP and packet routing by TCP. I think we will see the same thing. It's it's very much like a Bitcoin is worse is better actually has a really interesting section actually just reread that I'm not too long ago, and I'm going to be doing it on the show just because I'd forgotten how much great stuff was in it, but It talks about exactly that like this is the this is something that we've seen with the internet. This is something we've seen with these protocols before where people assumed or treated in thought of these things as fundamentally limited and uncapable like that. Look at all these things that can't do look at all these features that we can't even squeeze in here and yet they took over and yet somehow they succeeded massively in the face of so much competition so many Herbs that supposedly could do more and it's just a fundamental misunderstanding of how this technology evolves and what it's what the key fundamentals are the must stay in place for the rest of it to actually evolved and so a huge huge. Thank you to Lucas an Uzi for putting this piece together because I've been doing I even there's a couple of things that he even mentioned in here that I wasn't aware of Snicker. I realized I had heard about but had never dug in And this has gotten me there's all the way there are links to all of this stuff through it. So if you want to check out what's at you want to check out congestion Transit congestion control transactions non-interactive payment channels, which are fascinating by the way. I just went through and read the VIP video links to so much so much good stuff in here. And like I said, even even I who is trying to keep up with this stuff constantly, like literally two or three. I didn't know secure the bag had changed to check template. Verify so that would confuse the hell out of me just so much so much great stuff in here to read. I've been kind of lost in the Suave little late on this episode today. It's just cuz I've been lost in the VIPs that he linked to on a chip template verify basically read this whole thing from Jeremy Ruben and it is crazy to try to wrap my head around the congestion control transactions. This diagram is one of the most I'm gonna have to go through it a couple of different times. but it looks really interesting as a way to Aggregate and then release data from a set of transactions that you're trying to do so that you can essentially Aggregate and prep for the release of these later transactions while these are incredibly High while there's High congestion and then you can piecemeal release it later when congestion is low and it's a it looks like really interesting setup and then covenants I Not know much about those up to this point. I had read them briefly in the Bitcoin Dev and mailing list because they've been a hot topic of discussion in there as I kind of skimmed through those. So that's another really big thing that are going to be really fascinating and the application of being able to stipulate additional details on being able to move Bitcoin from one custodian to another but continue to attach Then it's attached attached other details to like a Fail-Safe like a like a contractual agreement is set previously The Lending being the obvious example, but the number of things that you can do with that and I want to really get clarity on exactly how this thing works and if it can be attached to it seems like it would have to be attached to certain amounts, which I think has another handful of really crazy. Ins that I would love to see but I want to confirm before I kind of get into talking about it but this is such a good such a thorough breakdown of a lot of the major ones that are going on in many that we've talked about on the show obviously schnoor signatures are a huge one and the plethora of stuff that that enables and new scripts that are going to make possible Taproot. So Merkel has abstract. Tech trees Mast is just a way to create essentially a program a a set of outcomes for a Bitcoin transaction that can in a sense be infinitely long. Like obviously there are limitations to like transaction size and other details and stuff. But for our sakes a perfect just just for the sake of conversation we can just keep adding trees and branches and new legs to this. Ash tree, but because of that I didn't realize I've got a quote about the implementation of mass Just Smokes. Most prominently is Taproot An Elegant implementation of the Mast structure that enables an entire application to be expressed as a Merkle tree, whereby each branch of the tree represents a different execution outcome. And this actually puts this in a set of wording that I hadn't quite realized was so powerful is that we have a lot of like when you're in a programming language, there are always use cases are there are always cases are typically there are cases in the code where things can be executed or some final result can be reached it was not intended, you know, essentially a bug sometimes not necessarily a bug but just some degree of unpredictability where someone created a set of program or an environment in code that they pected to have outcome a b or c and it turns out D and E are also possible. We're some Loop is stuck in the middle. And this is fundamental to the security trade off of Bitcoin that these limitations are specifically there for security and the having unpredictability not being able to predict or know what the possible outcomes of a script R is is a horrible precedent to set at the fundamental monetary. Because if you cannot predict what the possible outcomes are, you cannot predict if you have no way of knowing if all the outcomes do in fact adhere to the consensus rules, so that's why the script is so heavily restricted. That's why it's so limited in what it can do is so that the monetary properties are unbelievably sound and that's why I a talks about Satoshi himself. Disabled a lot of the functionality of script very early on because a handful of really really bad bugs were uncovered and he basically said, all right. We're just going to remove I think it's like 12 or something like different scripts just just straight out because a couple of them were proven unsafe and without the ability to easily or quickly verify the others is just like well, why don't you remove all of the ones where we're not a hundred percent certain and then kind of start from there. I'm with the intent to maybe are at least open the possibility of putting the scripts back in or adding additional functionality later, which obviously we see has been made possible particularly cleverly through segue which able enables us to actually add additional scripts in a very easy way or very easy way a much easier way than in the past and that's really exciting. And the the number of things that have been built out already the potential applications have seen or signatures like what can actually be done with this is so exciting. It's a little bit scary at the same time because there's so much amazing potential both from the Privacy efficiency and capability side with snore signatures, but the fact that it's still a couple years out soft Fork. It's amazing. All this development and all these standards and capabilities are being sorted out now even before like we're getting there so that when this saw Fork happens is much can be put into it as possible from the application of snore signatures, but the fact that there's still this limitation. There's this possibility that it might not get implemented. It's a little bit like, oh God like it's it raises stress levels every time I get I read more about snore signatures or some new use case of snore signatures and then simultaneously like so I'm getting more excited about it. But then because of that I'm my expectation of it being implemented is ever Higher and Higher and and it increases my stress. I'm like, oh God, how long is this gonna take what happens to all of this beautiful stuff if it doesn't happen, so and privacy just The got where is that? I'm going to check this thing whole second. Okay, when it comes to transaction graph privacy Solutions, like peda endpoint and check template verify are interesting because privacy becomes a byproduct of efficiency. I love a that line but more importantly just the concept of that because you know privacy is one of those this one of the issues with privacy is an opt-in solution is most people don't care and genuinely or specifically with with privacy Solutions. Typically if people opt out like if people aren't opting in those who opt in actually become targets and the anonymity set becomes smaller. So the the amount of privacy that you're getting because other people aren't choosing privacy is actually change. There's actually affected. Jesus I had to go shut up my stove. I thought it was just going to beep at me once and it just kept beeping. So yeah, where was I what we're talking about privacy is if it's okay. Yes, so privacy and anonymity set people don't choose privacy but affects your privacy that's a bit of a problem and opt-in privacy Solutions always end up becoming like these like Niche or Niche like these little like sub-networks and like other things in the infrastructure. never really gets built out that here's the fascinating thing is if something like a Snicker, this is one of the things that I have not dug into like I said, I recognize the term but I did not realize exactly what it was and I'm not dug into it and I'm really just just the one paragraph about Snicker has got me really excited and I've got to dig into this further, but when when privacy becomes so simple once you get the Kinks worked, Worked out and then it becomes a byproduct of seeking efficiency. Everyone wants cheap transactions. Everyone wants the fee wants to split the fee with someone else like the ability to spend less money to do the same thing. That is something that is broadly acceptable broadly understood as being valuable. And if in that tool you also get privacy you also get Opti. Nation if coin joined becomes the more efficient the more cost effective solution to Simply transact that is a game-changer that fundamentally Alters the entire aspect of like the Privacy and anonymity set like how this tool is actually interacted with because it again it can see adoption for an entirely different reason and it's the Privacy simply becomes the byproduct so The Privacy measures actually become the the push for adopting the more efficient Technologies and for simplifying their use for making the user experience in utilizing these things basic just click a button and it works sort of thing. And that's a such a huge huge thing with with all this stuff. That's one of the most important things in my opinion about privacy because there's that trade-off that there was actually a recent Twitter thread that was Really good about the trade-offs between the auditability ands, the I think was about putting in Nimble wimble on Litecoin as a side chain or as an extension block. I didn't really dig into the conversation, but I did read a couple people salts like Dan held and I think I think even Sabo Nick Carter people like that on actually put in their two cents. I'll see if I can find that thread actually if I can I'll post it in the show notes. What is really interesting little conversation back? Back and forth about the trade-offs between auditing the supply and private transactions is the risk is always there that if you cannot easily audit the supply you regardless of whether you get privacy you may have you may have no way to prove that. The monetary policy is in fact still the monetary policy. If something breaks, you may never be able to fix it again, you may never be able to find why or where it broke and you Fundamentally altered especially doing it as an extension block rather than something like a side chain which again go back to that has the the bit of the problem of the opt-in scenario is that if it's a side chain or some specifically send your Bitcoin to well then they just the target becomes everybody who uses the sidechain who opts in to have that level of privacy. So it's definitely definitely a lot of trade-offs and nuances involved and I think auditability at the base. A Slayer this goes back to actually Lucas's recent other article that he actually talks about with schnoor signatures is that and I think he has a comment about other people like getting getting aggravated with the good enough privacy. Yeah. That's what it was the outrage by the suggestion that sufficient privacy may be optionally achieved in Bitcoin at some point and that's With the schnoor signatures, I will link to that when we've done three other articles by Lucas. I think maybe for one of them might not be listed with him as the author I think because I hadn't been doing that for very long, but That was a really really good one and another one that hits on a lot of these topics more in depth and really really interesting. Look at the whole how privacy and efficiency may very well go hand in hand with a lot of these technologies that are coming and that at the base layer we want that auditability. It's incredibly important not to well. It's a very dangerous trade-off to give that away in exchange for privacy. He when we may have other methods for simply disconnecting the owner from the balance and the transaction itself from the balances. That's what's kind of important is. Yes, you'll have a lot of these balances and addresses and stuff. But what if each of these addresses is multiple people and what if payments come across multiple of these addresses it wants what if payment is hidden within, you know multisig contract that then enables off chain. Movements in transactions and exchanges with multiple Keys involves. What if you can move a key to an address example being State chains? You can move the keys to an address without actually moving anything in the address what if multiple people hold ownership of multiple denominations of a single address in something like a tap script. So there's that is a level of privacy that simply negates the concept of using Block Chain analysis. in Deciding who the owner is. It makes the blockchain and not what a system of storing data. That isn't exactly used like a straight. I have this transaction. This was a explicit Exchange in the real world that we can connect to maybe it was many exchanges. Maybe it was a single dispute that went wrong after 50 other exchanges and I think that's actually a good thing but exchanging auditability. At the base layer could be extremely dangerous and might just be ill-advised across-the-board. Maybe we can get away with actually achieving privacy without giving up the auditability and that's just another whole rabbit hole and bag of crap to unfold in and of itself and we haven't even really talked about lightning in this one, but that's kind of because I've been putting together a lot. Lot of information about lightning and trying to get my head around a number of different concepts that I want to talk about. So I actually want to devote a full episode sometime next week into lightning and a lot of the stuff that I'm working on. So because I think it will be hitting a lot of these Concepts and actually a huge another thank you too. Lucas is that I'd had not listened to the Christian Decker video about how to figure out whether a Channel or measure the number of public and private channels and that is Truly a huge help because I needed that for something and was having a really really hard time finding that so and it also got me to watch like three other things from the lightning conference that I had not seen because I only wash like two hours of the seven on day one. Lots of great stuff there always great stuff from Lucas newsy and digital asset research. So I will link to all of that good stuff. Do not forget to check out the show notes. I also have it in the Twitter post. Thank you to these guys always for letting me read this stuff on the show and share these Concepts and this work. Don't forget to clap drop some up dolls on medium.com / digital asset research. That's where this is all posted under their medium page and lots of other great stuff to cover. They have a whole Bitcoin 101 Series this really good. If you're kind of new to all of these Technologies and stuff. I know this piece itself was pretty dense, so Lots of check out there. I will have those show notes available. Don't forget to follow Lucas on Twitter as well. I think his tag is just his name that will be listed. Where is it? Yeah, it's just Lucas knew l ucas in use Easy. I shoot him a thank you for this great article and drop some Applause on medium. Alright guys until next time that should do us for today. Do not forget to get your tickets to bit block boom using offer code CC. Other get you a 30% discount and you can come see my speech at bit bought room as well as so many other great authors or excuse me of great speakers and and we'll get to hang out and get drunk and talk about Bitcoin. We had an awesome time last year and I'm so excited or I guess this year and I'm so excited to do it again. So with that we will close this one out. Thank you so much for listening. This is the crypto Cana me with guys want where you are going to learn about all of the amazing stuff that is propelling us into the future of the crypto Konami of The Sovereign digital individual and it is Our obligation to learn how these things work to learn how to make use of these tools to get us to that future it is it is us it is our responsibility to get us there if we want it. Well then all we have to do is implement it that technology is there let's do it. That is the crypto economy Mission. I am guys. One I love you all. Thank you for listening and until next time take it easy guys.
For everyone that tells you Bitcoin is a stagnant technology going nowhere, this is the article to point them to. Another be returning author Lucas Nuzzi, we cover a piece that touches on the plethora of developments happening across all fronts in the Bitcoin ecosystem. Much like the development of the internet, Bitcoin has the benefit of building a modular protocol stack to solve a vast array of problems without compromising the underlying network. A great read to close the week. Follow Lucas Nuzzi on Twitter, be sure to drop some applause on the article, check out the link to explore all the crazy stuff discussed in this piece, and lastly check out Digital Assets Research for more great work: https://medium.com/digitalassetresearch/a-look-at-innovation-in-bitcoins-technology-stack-7edf877eab14  Check out the other great reads we have by Lucas! Schnorr Signatures & the Inevitability of Privacy https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_226---Schnorr-Signatures--The-Inevitability-of-Privacy-in-Bitcoin-Lucas-Nuzzi-e3jfhi The Resolution of the Big Block Experiment https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_218---The-Resolution-of-the-Big-Block-Experiment-Lucas-Nuzzi-e3g7ms The Liquid Network w/ Thoughts from Lucas Nuzzi https://anchor.fm/thecryptoconomy/episodes/CryptoQuikRead_166---Liquid-Network-Launch-and-Thoughts-from-Lucas-Nuzzi-e2ndp8  If you want to support the show and join the Cryptoconomy Telegram crew, become a patron below! https://www.patreon.com/thecryptoconomy  ---   This episode is sponsored by  · Anchor: The easiest way to make a podcast. 