Blockchain Fundamentals - Day 4 - Blockchain philosophy, the libertarian connection (new style)
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The document covers various aspects of blockchain technology, including Bitcoin's consensus protocol, monetary policy, Ethereum's role in fundraising through ICOs and STOs, and the philosophical underpinnings of libertarianism. It discusses key concepts such as public key cryptography, different types of blockchains, and the implications of decentralized governance. Additionally, it explores economic theories and the historical context of anarchism in relation to blockchain's potential for decentralized power structures.
![What does Tatiana Moroz want to
achieve with Bitcoin?
“It’s [Bitcoin] very attractive to the
libertarian viewpoint if we can explain it
properly. I’m better with code than with
words though.”
- Satoshi Nakamoto, 14-11-2008](https://image.slidesharecdn.com/day4-blockchainphilosophynewstyle-200813171842/85/Blockchain-Fundamentals-Day-4-Blockchain-philosophy-the-libertarian-connection-new-style-14-320.jpg)
Blockchain Fundamentals - Day 4 - Blockchain philosophy, the libertarian connection (new style)
- 1. BLOCKCHAIN FUNDAMENTALS BLOCKCHAIN PHILOSOPHY & MORE CRYPTOGRAPHY Chhay Lin Lim
- 2. Recap 01Continuing the Bitcoin PoW consensus where we left of More Bitcoin consensus protocol 02Bitcoin’s monetary policy and how it relates to the Financial Crisis Bitcoin and the Financial Crisis of 2008 03Introducing the second evolution of Blockchains, and in particular Ethereum Introduction to Blockchain 2.0 04What ICOs and STOs are, and how Ethereum gives rise to these new forms of fundraising ICOs and STOs 05 Encrypt your e-mail addresses for more privacy Practical assignment 4: implement Mailvelope for encrypted e-mails 06Wrap up of today’s workshop Wrap up
- 3. What is crypto-economics? Crypto- economics Crypto- economics Software development Applied cryptography Game theory Blockchain
- 5. How does the Bitcoin Blockchain utilizes crypto-economics? Crypto- economics
- 6. Bitcoin Proof-of-Work concepts What problems does Bitcoin solve? 1. Double spending 2. Byzantine Generals Problem Rules 1. A block is only valid when the hash is < target hash 2. Longest chain is always the true chain Other concepts 1. 51% attack 2. Miner 3. Hash 4. Hash rate 5. Hash power 6. Bitcoin halving 7. Block frequency 8. Mining rewards 9. Mining difficulty 10.Target hash Bitcoin’s Proof-of- Work
- 8. Ethereum Building blocks of Blockchain 2.0 1. dApps (decentralized applications) 2. Smart contracts 3. Distributed Autonomous Organization (DAO) 4. Tokenization of companies and projects
- 9. Agenda 01Social contract theory: contrasting Hobbes and Locke, and discussing where libertarian anarchism comes from Blockchain Philosophy 02As an introduction to public key cryptography, we create a paper wallet Paper wallet 03Work on your fictional Blockchain startup 04Discussing the role of public key cryptography in Blockchain More cryptography 05Practicum: Encrypt your e-mail with Mailvelope 06Wrap up of today’s workshop Wrap up What Blockchain types are there, and In what circumstances is Blockchain useful?
- 12. The Bitcoin Jingle What does Tatiana Moroz want to achieve with Bitcoin? Lyrics I didn’t want to give any of my money to a nation based on war I wanted to be free, nothing holding me back from where I want to go I thought about it, I thought about it What was the choice that I made? It was to take away the money, Don’t give up your money, Use Bitcoin whenever you pay Use Bitcoin whenever you pay I didn’t want to waste any of my time working for the government, I wanted to be kind, open up my mind just like an instrument Oooooo, what a little crypto can do No longer a slave I don’t have to work until the grave So many times I cried to myself that we didn’t have a chance Nakamoto came along with more than a song, gave the labor back to man
- 13. Main Schools of Economic Thought Marxism Keynesianism Austrian School of Economics Chicago School of Economics Karl Marx - Das Kapital (1867) “Value comes from labour” J.M Keynes – The General Theory … (1936) More government expenditures and lower interest rates as private consumptieto stimulate the economy Y = C + I + G + (X – M) Carl Menger (1873) “Value is subjective” The marginal revolution Mises Economic calculation (1920) Hayek – Denationalization of Money (1976) Rothbard (libertarian anarchist) Cryptoanarchism (‘80) Milton Friedman We must have a Central Bank to regulate the money supply (changed opinion at end of life) David Friedman (libertarian anarchist) Patri Friedman (libertarian anarchist)
- 14. What does Tatiana Moroz want to achieve with Bitcoin? “It’s [Bitcoin] very attractive to the libertarian viewpoint if we can explain it properly. I’m better with code than with words though.” - Satoshi Nakamoto, 14-11-2008
- 15. What is Libertarianism/Libertarian Anarchism? Libertarians want to decentralization of power 1. Every individual has the rights to life, liberty, and property 2. Non-aggression principle: no one may infringe those rights 3. Want an economic system of • Free market economics • Capitalism Two types of Libertarians 1. Minarchists: wants a small government (defense, police, justice) 2. Anarchists: want no government. If people are free and left alone, initiatives and enterprises will emerge naturally that take care of defense, police, and justice. Minarchist vs Anarchist
- 16. Libertarianism is not a new idea: Lao Tze The more laws and restrictions there are, The poorer people become. The sharper men’s weapons, The more trouble in the land. The more ingenious and clever men are, The more strange things happen. The more rules and regulations, The more thieves and robbers. Therefore the sage says: I take no action and people are reformed. I enjoy peace and people become honest. I do nothing and people become rich. I have no desires and people return to the good and simple life. (Tao Te Ching, Chapter 57) Libertarian Daoism
- 17. Social contract theory Why is a government necessary? Social contract theory: Hobbes vs Locke 1. A social contract is an act by which individuals agree to form a government 2. According to the theory, governments are established by the people 3. The theorists hypothesize the existence of a state of nature before any government A. Thomas Hobbes: life was brutish, nasty and short. War of all against all. Therefore, we need a sovereign (leviathan) with absolute power. All citizens must obey the sovereign. B. John Locke: property is not secure. The people install a government to protect property.
- 18. John Locke Locke’s libertarian argument Locke’s argument: 1. Self-sovereignty 2. Non-Aggression Principle 3. No one can legitimately exercise authority over you without your consent 4. Governments must rest on consent of the governed, and may be legitimately be overthrown if they overstep their authority. Self- ownership Right to Life Right to Liberty Right to Property
- 19. More libertarianism Other aspects of libertarianism Other aspects of libertarianism: 1. Unintended consequences 2. Spontaneous order 3. Intellectual modesty in how we should shape society
- 20. More libertarianism Other aspects of libertarianism Other aspects of libertarianism: 1. Unintended consequences 2. Spontaneous order 3. Intellectual modesty in how we should shape society
- 21. More libertarianism Other aspects of libertarianism Other aspects of libertarianism: 1. Unintended consequences 2. Spontaneous order 3. Intellectual modesty in how we should shape society
- 22. Anarchisms Libertarian anarchism vs other anarchisms There are various anarchist thoughts
- 23. Famous libertarians Famous libertarians Libertarianism is mainly an intellectual movement and has a small following. Despite that, the philosophy has a huge impact on society Jimmy Wales: oprichter Wikipedia Elon Musk: oprichter Tesla, SpaceX, PayPal Peter Thiel: oprichter PayPal Steve Wozniak: oprichter Apple
- 24. More libertarians Not always safe to be a Libertarian (anarchist) Pavel Durov: oprichter Telegram Edward Snowden: NSA documenten gelekt Julian Assange: oprichter Wikileaks Ross Ulbricht: oprichter Silk Road
- 25. Agenda 01Social contract theory: contrasting Hobbes and Locke, and discussing where libertarian anarchism comes from Blockchain Philosophy 02As an introduction to public key cryptography, we create a paper wallet Paper wallet 03Work on your fictional Blockchain startup 04Discussing the role of public key cryptography in Blockchain More cryptography 05Practicum: Encrypt your e-mail with Mailvelope 06Wrap up of today’s workshop Wrap up In what circumstances is Blockchain useful?
- 26. Agenda 01Social contract theory: contrasting Hobbes and Locke, and discussing where libertarian anarchism comes from Blockchain Philosophy 02As an introduction to public key cryptography, we create a paper wallet Paper wallet 03Work on your fictional Blockchain startup 04Discussing the role of public key cryptography in Blockchain More cryptography 05Practicum: Encrypt your e-mail with Mailvelope 06Wrap up of today’s workshop Wrap up What types of Blockchains can you use, and In what circumstances is Blockchain useful?
- 27. Public Blockchain Different types of Blockchain Other aspects of libertarianism: 1. Public 2. Private 3. Consortium Public Many peers Most transparent Validator is (pseudo) anonymous Consensus dependent on target network Reward token present Most decentralized
- 28. Private Blockchain Different types of Blockchain Other aspects of libertarianism: 1. Public 2. Private 3. Consortium Private Few peers Least transparent Validators are known to private parties Consensus depends on the target of the private party Reward token often absent Most central
- 29. Consortium Blockchain Different types of Blockchain Other aspects of libertarianism: 1. Public 2. Private 3. Consortium Consortium Few peers Least transparent Validators are known to the consortium Consensus dependent on target consortium Reward token often absent Fairly decentralized
- 30. Blockchain classification Overview of different Blockchains Anyone can participate in the blockchain. Not everyone is allowed to act as a validator. (DPoS / EOS) Anyone can participate in the blockchain. Everyone can act as a validator. (PoW / Bitcoin) ? Not everyone can participate in the blockchain. Only members of a private party or consortium may act as a validator. (PoA / Libra consortium) Public Trustindecentralization Private Permissionless Permissioned Trust in unknown validators
- 31. Yes no Yes no no no Yes nono Yes Yes Is a (shared) database required? A blockchain solution is not necessary A blockchain solution is not necessary Alternatives are email or spreadsheets. An alternative is a traditional database. Are there multiple parties writing in the database? Consider public blockchain Consider public / private / consortium blockchain Consider private / consortium blockchain A blockchain solution is probably not necessary. Otherwise, consider a private / consortium blockchain Do you want/ have a trusted intermediary? Does your current solution work? Do the writers know and trust each other? Do you want/ have a trusted intermediary? Decision tree
- 32. Agenda 01Social contract theory: contrasting Hobbes and Locke, and discussing where libertarian anarchism comes from Blockchain Philosophy 02As an introduction to public key cryptography, we create a paper wallet Paper wallet 03Work on your fictional Blockchain startup 04Discussing the role of public key cryptography in Blockchain More cryptography 05Practicum: Encrypt your e-mail with Mailvelope 06Wrap up of today’s workshop Wrap up What types of Blockchains can you use, and In what circumstances is Blockchain useful?
- 33. Agenda 01Social contract theory: contrasting Hobbes and Locke, and discussing where libertarian anarchism comes from Blockchain Philosophy 02As an introduction to public key cryptography, we create a paper wallet Paper wallet 03Work on your fictional Blockchain startup 04Discussing the role of public key cryptography in Blockchain More cryptography 05Practicum: Encrypt your e-mail with Mailvelope 06Wrap up of today’s workshop Wrap up What types of Blockchains can you use, and In what circumstances is Blockchain useful?
- 34. Encrypted Messaging Set up Mailvelope for encrypted e-mail Mailvelope can be used with many e-mail applications (gmail, outlook, yahoo …). Set up Mailvelope by: 1. Download the Mailvelope browser extension 2. Follow all steps 3. Send an encrypted message to c.l.lim@Saxion.nl 4. Add the PGP public key of Satoshi Nakamoto by • Going to Key management • Going to Import • Copy – pasting Satoshi’s public key • You can find his public key online. Look it up on Google • Now you can share secret messages with Satoshi
- 35. Agenda 01Social contract theory: contrasting Hobbes and Locke, and discussing where libertarian anarchism comes from Blockchain Philosophy 02As an introduction to public key cryptography, we create a paper wallet Paper wallet 03Work on your fictional Blockchain startup 04Discussing the role of public key cryptography in Blockchain More cryptography 05Practicum: Encrypt your e-mail with Mailvelope 06Wrap up of today’s workshop Wrap up What types of Blockchains can you use, and In what circumstances is Blockchain useful?
- 36. THANK YOUBLOCKCHAIN FUNDAMENTALS: BLOCKCHAIN PHILOSOPHY & MORE CRYPTOGRAPHY