Just a little bit more Bitcoin trouble

There has been so much tumult in bitcoin and cryptocurrency over the past few days! Interest and concern extends beyond online communities. Motives vary.

screenshot of bitcoin mining in Windows

Bitcoin miner GUI running Windows 7

Anonymous and decentralized

There are two conceptual pillars of trust that uphold bitcoin as being superior to fiat currency. (The fiat currency of reference is primarily the US dollar. Why? Because the US dollar is the world’s reserve currency, for now.)

The first is anonymity. US dollars held as cash are bearer instruments. Ownership and use is anonymous, but only until one wants to use them for commercial transactions of significant size as defined by anti-money laundering rules. Bitcoin does have some anonymity shortcomings, as transactions on the blockchain are actually pseudonymous, but there may be tractable remedies. Further details have been widely covered elsewhere.

The second conceptual pillar of bitcoin is decentralization. The US dollar is highly centralized. As ideological (but not market) confidence in the dollar diminishes, the appeal of an apolitical, alternative currency increases, especially one that is a fungible store of value.

All markets are game theoretic. Bitcoin is too.  I really wish we could ask Professor John Nash what he thinks of bitcoin! Nash wrote a pleasant, accessible article that described bitcoin-like currency, titled “Ideal Money” a few years ago.

I mention game theory because monopolists and cartels can assert control over bitcoin production. This is playing out right now.

Centralization of bitcoin

Currently, Bitcoin’s most acute concern is loss of decentralization. This is due to the documented, persistent existence of a 51% majority mining pool controlled by gHash.io. gHash is owned and operated by private entity cex.io. gHash’s market dominant behavior was noted in March 2014, however the situation was transient. That has since changed. (more…)

PDF history and something special from Adobe

Part One: PDF history 

PDF is a formal open standard, ISO 32000. It was invented by Adobe Systems 17 years ago.

PDF = Portable Document Format

PDF history by Adobe

History of the PDF by Adobe Systems

The image links to a pleasant interactive timeline of Adobe Systems and its role in the development of the PDF. The chronology is in Flash, and thankfully free of any video or audio. Read more about Adobe Systems role in the history of PDF file development.

PDF files are more versatile than I realized, and

  • are viewable and printable on Windows®, Mac OS, and mobile platforms e.g. Android™
  • can be digitally signed
  • preserve source file information — text, drawings, video, 3D, maps, full-color graphics, photos — regardless of the application used to create them

Additional PDF file types exist, including PDF/A, PDF/E and U3D. All are supported by Adobe software.  (more…)

Published in: on September 5, 2011 at 7:30 pm  Comments (3)  
Tags: , , , , , ,