Posts Tagged ‘Bitcoin’

There’s been a lot of churn lately over the price of Bitcoin. There’s also been much talk about uses (commercial and otherwise) for the blockchain technology that underlies it. I’ve taken an interest, as of late, in the subject and I found a promising source of information in the Michael J Casey, Paul Vigna book The Truth Machine.

If you’re looking for a book on how to write blockchain software. This book isn’t going to be of much interest to you. If you have interest in the history of the technology, its applications and societal impacts, you will find it to be a solid read.

Bitcoin and  Ethereum, and the like are discussed with enough depth to provide non-developers a good sense of use cases. This is after all the point of a technology. Otherwise you’ve got yourself shelfware. All the major players are discussed running the gamut from crypto-anarchists to Wall Street bankers. I find the dynamic of these two extremes battling over this technology fascinating.

One definitely comes away with the sense that the technology is still very much a work in progress. Personally, I find it unfortunate that the public sees it as another get-rich-quick methodology. This loops back to the volatility of the Coin markets.

Another, and arguably more important, takeaway is that the systems currently in place do not scale (or at least have yet to be proven to scale). That Bitcoin can process six transactions per second in a world where Visa processed ten thousand is quite telling.

The underlying problem of who’s in charge comes to mind. Without some form of human governance, poor programming will result in bad actors taking advantage of the system. Nowhere does the book address the issue of longevity. The thing about paper (or animal hide for that matter) is that it has a permanence that has proven itself outside of our advances in storage technology. If we did move to a blockchain-based system of ownership tracking, what happens when another, better one comes along? What will the impact of quantum computing be in a world where work is proportional to CPU expended? What happens when people decide that it’s easier to steal the resources used to mine the coin?

I only have a few issues with the book.

First, for a book on a complex technological subject, I expect extra fact checking. I noticed two rookie mistakes in this department. ASIC is defined as ‘Application-Specific Integrated Chips’ whereas it should be ‘Application-Specific Integrated Circuit.’ It also doesn’t require quotes. In the realm of techno-history, the authors attributed Public-Key Cryptography to Whitfield Diffie and Martin Hellman. This is of course incorrect. That distinction belongs to James H Ellis (at least until the NSA owns up to when they started using it). Although his work was once classified, it have been publicly recognized for some time now.

Second, the book wanders off the path of techno-history and into the realm of  conspiracy theory and political opinion when they introduce ‘speculation’ of hacking in the MH370 incident and spend the bulk of the last chapter on the latter.

On the whole, I found the book to be a very good and current survey of the landscape of blockchain technology and its history.


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