♫Little CTO… You’re Really Lookin’ Fine ♪

March 3rd, 2015

File:1969 GTO Judge.jpg

“The wave of change is at once unavoidable and heading straight for you.”  Gavin Wood (Effective) CTO Ethereum on facing the music and The ’69 Judge.

photo Gtoman


Dave’s written plenty of blog posts about Ethereum and the work of Vitalik Buterin.  With the exception of Vitalik’s attempt to replace “anno domini” with “the the year of Satoshi”, Dave doesn’t find himself judging Vitalik too hard.  However, judging Ethereum’s strategy has become somewhat of a hobby since the self-appointment of Vinay Gupta as Chief Twittering Office and official appointment as “Ethereum Release Coordinator.”  Is it just me or does that sound like something that may involve Corrections Corporation of America?  Then again, maybe it’s more like that early 1980′s hit TV series starring Lee Majors as the Unknown Stuntman ~ Fall Guy.  I think Lee drove a GTO… but I digress.

Dave has done a few takeovers and a few turnarounds and knows what confusion looks like when he sees it.  Dave also knows that being able to say “I’ve got the pink slip daddy” when it comes to your Little Deuce Coupe is one thing, but that doesn’t keep the tank filled and the tires road worthy if the burn rate exceeds the incoming flow of gas money.

As crew chief, clearly Vitalik is not attempting to humbly share pre-launch credit with the other Ethereum team members.  When you’re preparing your Oscar acceptance speech for “Best Crypto not built on Bitcoin” you don’t refer to your downstream posse as “many of whom”.  No!  To the contrary, you give a shout out by individual name or Coinye (that would be Dave in this instance) may just grab the microphone out of your hand and do it for you.

Dave wasn’t one hundred percent sure that the Little Ethereum GTO was due for an overhaul until the self-proclaimed “Effective” CTO blogged about the condition of his whip.  The first couple of passes when Dave read it, all I could think of was that I had pulled into Pep Boys for a simple oil change and this service writer that sounds like the teacher from the Charlie Brown cartoon comes out dressed like Ronnie from the Daytonas and starts singing the following tune:

♫ Wa-wa… wa, wa, wa, wa, wa, wa ♪ (Yeah, yeah little GTO)
♫ Wa-wa… wa, wa, wa, wa, wa, wa ♪ (Yeah, yeah, little GTO)
♫ Wa-wa…  wa, wa, wa, wa, wa, wa ♪ (Yeah, yeah, little GTO)


About this time, the entire retail store turns into one of those singing and dancing choreographed flash mob thingys that you see on Youtube that normally happen at a train station or the Mall of America (when it’s not been evacuated for terrorist threats).  Everybody breaks into this Grease like soundtrack reminiscent of John Travolta and Olivia Newton John…

(actual soundtrack from crypto release nightmare is found here: https://www.youtube.com/watch?v=o_FSicQWimU)

Gonna save all my money (turnin’ it on, blowin’ it out) and buy a CTO
Get a helmet and a roll bar (turnin’ it on, blowin’ it out) and I’ll be ready to go
(Turnin’ It on, blowin’ it out)
Take it out to Pomona (turnin’ it on, blowin’ it out) and let ‘em know(turnin’ it on, Blowin’ it out), yeah, yeah
That I’m the coolest thing around
Little buddy, gonna shut you down
When I turn it on, wind it up, blow it out CTO

So, what did Chief Gavin Wood have to say exactly about Ethereum’s impending release.  Well, you can read it for yourself but Ðave took the liberty of checking the tread level for you…

1.  Gavin is “wearing multiple hats of ÐΞV and advisory.”  That can be convenient when it comes time to change hats.

2.  “The board will be recruited from accomplished professionals with minimal conflicts of interest; the present set of “founders” officially retired from those positions.

3.  “ÐΞV will function much more as a department of the Foundation’s executive rather than a largely independent entity.  Key word is “much.”  That’s an accounting and governance term for ♫ Wa-wa.


4.  Probably the single most important executive communication regarding the launch of Ethereum was amazingly written; “As I write this, I’m sitting on a crowded early commuter train, Vinay Gupta in tow.”  Now that’s saying something.  I had no idea Monsieur Gupta got up that early.  Heck of a job Vinay.

Gavin apologized ostensibly to everyone who sent their Bitcoins to Ethereum in anticipation of the launch by saying “I’m sorry it has been so long without an update.”  I guess we should be thankful that he can tow Vinay and type a major strategic path document simultaneously.

Oh, regarding that burn rate.  Don’t worry… like the carburetor on a GTO it’s “choked up” and “soaked up”… Gavin explains:  “The last 2 months has been somewhat busy, choked up with travel and meetings, with the remaining time soaked up by coding, team-leading and management.”  Ka-ching.

What about the accounting?  I’m glad you asked.  Time for a milepost on the irreversible nature of an income statement by drawing a line in the sand with the one money man (Aeron) “stepping down.”  The search begins for “successors” to the success next week.  Time to divide and conquer when it comes to finance.  In the turnaround game, that’s called a soft fork to finance.  In the music business it sounds like this… ♫ Wa-wa… wa, wa, wa, wa, wa, wa ♪

Are you finding yourself wondering how much it’s gonna cost you for a new set of tires and a tank full of Ethereum “gas” for your little GTO?  Read it and weep:  https://blog.ethereum.org/2015/03/02/gavs-ethereum-d%CE%BEv-update-v/

It’s Not The Moustache That’s Brass

February 26th, 2015



Chaos As A Service: The Implications Of A Global Synchronous IOU

February 24th, 2015


The Snack Stack:  “You got your money in my internet.  You got your internet in my money.” 


How “pay me later” became “pay me now” which became “pay me before”.


(Editor’s Note: this is Part 1 in a series)

You will be hard pressed to find a nicer fellow in the cryptocurrency Bitcoin blockchain space than Meher Roy of the Hyperledger project.  Meher could not be more friendly and deferential on the outside while being more pointed, direct and downright disabling on the inside.  I mean who else, comes out of nowhere with blockchain/sidechain/ethereum is nothing more than a database kryptonite and tells both globetrotting Bitcoin master Andreas Antonopoulos and Ripple CEO Chris Larsen “Dudes… you’re wrong.” in a single sentence?  That is precisely what Meher did when he launched his paper An Architecture for the Internet of Money on November 26, 2014.

You see, it seems that while Andreas had referred to Bitcoin as “the internet of money” and Chris Larsen had referred to Ripple as “the internet of money” Meher was tightening down his thinking cap and decided that due to a variety of ubiquitous barriers to global entry (cough Putin) neither Bitcoin nor Ripple were the internet of money and he doesn’t mind telling you just that.  Regardless of who got their peanut butter in who’s chocolate cup first, Dave is here to tell you.  It’s not how you stack your cups Joel Monegro that matters so much as who is doing the stacking. 

Even IHOP Flies A Flag on National Pancake Day ~ “Free” Stack ~ March 3, 2015″

Before Dave delves into Meher’s short stack in an attempt to flatten his fork resistant pancakes a bit, allow me to tell you a short story about Dave’s fav-o-rite pancake maker… Mrs. Dave.  Mrs. Dave is not only wife, mother and hotcake maker, but she’s also our in-home network administrator.  Don’t ask Dave how she does it, but she can put more haiku on a Roku Box and rig up more Microsoft workarounds than Steve Ballmer has “developers! developers!” dance moves.  I’m just waiting to come home one day and find her climbing up a telephone pole while explaining to me how the state utilities commission allows her to rebroadcast the Super Bowl via drone just so long as she doesn’t actually sell advertising, but she needs me to download Senator Ed Markey’s latest draft EFF bill just to make double sure that her definition of “FREE”  isn’t as in “FREE Barrett Brown.”

So my wife and I are talking about a internet connection that she is setting up for us in a business location when I ask her a question.  “Honey, why do you think there are so many internet connections in this commercial area, but none of the companies choose to share their connections?  I bet in an apartment building there’s a connection for every resident… just think of the money they could save if they shared their internet.”  My wife explains to me that people don’t want to share their internet connections because they don’t trust their neighbors, they don’t know what they may be downloading and folks (that would be Barrett’s mom) don’t want to get in trouble for something illegal that their neighbors did.

That seems like a reasonable explanation, but of course Dave’s mind immediately turns to next gen distributed storage applications such as Maidsafe.org and Storj.io and the latest IPFS Alpha and how they are going to deal with this issue of potentially storing illegal stuff on other people’s hard drives.  Dave’s sure that he’s not the first person to ever think of such concerns and he’s also sure that since the storage is just “bits” and not the entire “bite” then the teeth of enforcement are kept at bay by the private keys of cryptography.

Then again, maybe we’re moving from the phase of a) storing the past on our hard drives and b) processing the present with our bandwidth to c) paying for future network access in advance as what WAS your device is increasingly part of the public domain thanks to Reed Hastings hogging the road with Netflix.  I could discuss such things with Mrs. Dave if she read the blog, but she doesn’t and she’s practical while Dave’s theoretical (Honey! My internet’s not working!) but we both watch Netflix, so back to Meher.

So, two of my intellectual favorites, Meher Roy and Tim Swanson, were interviewed by Arthur Falls on the Beyond Bitcoin podcast about some of the ideas that Meher had proposed in his paper and strategies that the Hyperledger project was implementing.  The content of the interview was fascinating and the prowess of Meher’s mind is only exceeded by his humility which is also exceeded by the humiliation of being exposed as those who claim to have discovered the Internet of Money only to be channeling Geraldo and the Mystery of Al Capone’s Vault (don’t dis Rivera’s 30 million+ viewers).

Is that the “call me maybe” sign or a left jab?

Dave’s not even in the same league as these guys, but it never stopped me from typing before and the way I see it, Meher got it half right, so Dave’s jumping into the blockchain cage match like some guy asking Gina Carano out on a date while attempting to avoid the right hook.

Meher describes a standard as a “public good.”  Now Dave’s not saying that Tim Berners-Lee wasn’t one of the good guys or that Barack Obama plus the AT&T/Verizon duopoly plus an aircraft carrier in the Straits of Hormuz doesn’t equate to a “good” internet kill switch because it probably does.  There are standards that have the capability of functioning as a public good just like the Boston Common has the ability to be turned into a “snow farm.”  However, standards by their very nature emerge from private motivations and personal values and are spread via political strategies and financial means.


A standard is a flag or a “stand hard.”

Yes, it’s true that you don’t have to pay to write a message in the English language (assuming you can use your own blood if a pencil isn’t available and your student loan is paid up) and Noam Chomsky hasn’t changed the meaning of your words while you weren’t looking.  Indeed there is no royalty due to Warren Buffet for measuring the Burlington Northern railroad tracks in miles vs. kilometers even if rubber ducky crony bathtub-isms with Jeff Immelt have permanently let the tide out of our democratic republic of price discovery.

Words and inches are free standards (for now), but the internet is hardly free when it’s not the internet itself that is the expression of value.  It’s network access that counts.  The petro dollar can’t be used to pay your tax bill but it will power your car, but I would suggest you avoid engaging in a debate over “size matters” when it comes to the oil market’s “rig count” with the King of Saudi Arabia or your will end up with a close up view of the mat.

As we move away from the time value of money and displace Irving Fisher in our Michael Woodford drive to the zero lower bounded Chicago Plan, it’s the access to the Super Bowl of Internet Things that we’re looking for because we don’t get to take the seats with us when we leave.  Your ticket is a license to use that seat, not ownership.  Sovereignty is so passe.  You were so focused on the national debt clock that you didn’t actually realize that you owned the nation.  Whodathunkit?

Dave has written a thousand times about the Soros’ political paradigm of substituting “open” for “free” and how when a Realtor holds an open house, the “free” finger sandwiches come at a price to your privacy.  The same thing goes for storage (backdoors included for FREE), bandwidth (surveillance included for FREE) and increasingly access (denied if not PREPAID) which is all that matters in the quantum state of The Union and the so-called emergent velocity of money standard.

Standards, as in flags, originate as an outward expression of an inward value and thereby form a rallying point – think William Wallace’s blue cruxed face in Braveheart.  Just because the Scots still fly the Saltire doesn’t mean that they still value the ideals expressed by Saint Andrew’s crux decussata which was fairly clear by their recent referendum.  A flag doesn’t have to represent a moral or values standard and a moral or values standard doesn’t have to be represented by a flag especially when we have World of Warcraft contained within the network and ISIS contained within a green screen.  The concept of value (as represented by a flag or standard) are not always mutually exclusive or symbiotic, but as Buckminster Fuller liked to say, they’re synergetic.

Meher takes a stand when he says “a standard eventually becomes fork resistant” and a standard is “a public good.”  Dave has sat on some standards making boards and I can tell you from experience… it ain’t so.  Way back in the 1990′s I was a contributor to the United States Department of Agriculture development of the organic standards.  You know those little green stickers that you see on food and textiles that says “organic.”  What Dave thought was a debate about the public good devolved into a political business driving strategy in the cotton industry that resulted in Nike and The Gap making  a last minute reversal of their privately “good” position on an otherwise public policy costing Dave plenty to the benefit of their shareholders – not Dave’s.

A Constitutional Right To Bear Leg Lamps ~ photo Kevin Dooley

You don’t forget a thing like that and making the public good a private enterprise has become equivalent to “doing God’s work” in a Blankfeinian/Himpton Doctrine nature of the administration of economic justice just-us when we use Jon Corzine as the poster child for deferred prosecution and Too Big To Fail as the meme of moral hazard.  Is the leglamp blockstack (blockchain as a lamp stack) somehow immune from such corruption or is the chance of someone getting their eye shot out by a Red Ryder bee bee gun only increasing by the day?

Is the TCP/IP internet protocol suite a public good?  Well, if you include the NSA having a backdoor to your Lenovo laptop or Gemalto sim card as part of the “the only people who don’t want to tell the truth are people with something to hide Barack Obama” doctrine of public good, then who’s to argue?  Just hand over your permanent liberties and get some temporary securities (aka crypto-equities) by pushing the Staple’s Easy Button.  That was easy.  Then again, it’s no coincidence that TCP/IP was originally known as the DoD Model as in Department of Defense.  Such ideas are no doubt what led NYU to cite such current tech hipsters as Benjamin Franklin circa 1737 in their most recent brief in the Twitter case against Attorney General Eric (didn’t he resign?) Holder.

The Internet Engineering Task Force and the Internet Society are fundamentally political enterprises. You could say the IETF is “open” but you can’t say it’s FREE! at $650 to join and if you ask Dave, technically speaking, “rough consensus” as a political structure is roughly the same as what Tony Soprano uses, but no doubt more intellectually bullying in an empathic sense (not).  When it gets right down to it, the IETF is not even an organization based on the definition of the word.  It’s a mailing list… albeit an organized mailing list.


To promote the open development, evolution and use of the Internet for the benefit of all people throughout the world.

The Internet Society

There’s nothing about FREE in the ISoc’s mission, but it does cover “all people throughout the world” (must be those Bill Gates “unbanked again) and just like the Super Bowl is “open to the public” it hardly means that the public will be getting in there.  It’s no coincidence that the administration of all things internet is being overseen by a former Verizon staff Kathryn Brown and if you ask Dave, it’s not entirely far-fetched to make a reasonable argument that the fact that internet standards are copyrighted by ISoc that it has an exclusive claim on those standards.  Dave’s jus’ sayin’ unauthorized linking to those standards may be the equivalent of linking to a Stratfor email and could end you up in prison for 5 years.  Yup.  Hey!  It’s a copyright and they’ve got their rights… DMCA’s age not withstanding.

Let Them Eat Cake With Licensed Images On It   (photo Mike Mozart)

Meher says “a standard eventually becomes fork resistant.”  I guess the same could be said about access to Brett Favre’s hall of fame induction ceremony.  It’s scheduled for the 1,500 seat atrium at Lambeau Field, but Brett wants it to be held in the 80,000 seat stadium.  Heck… why don’t we just hold it on the internet… It’s FREE!!!  Everyone can come to the public good and then maybe Mrs. Dave can actually sell some of that advertising.  Not gonna happen.

The NFL is about creating a false sense of scarcity (as in football is scarce), when in reality playing football is free and watching your local high school team is significantly more impactful than wasting money on contrived civic pride which is corporate earnings in disguise and Dave has done some work in pro sports and licensing, so I know what i speak of, but I can’t say I’m not interested in seeing how Russell Brand wiggles his way out of this politically incorrect Chelsea pro soccer train wreck.  Maybe I can get some pointers on how to avoid being knocked out by Meher.  But this is only Part 1 of the series, so there’s always money to be made selling George Foreman Grills even if intellectual grok boxing isn’t that profitable – “I feel your pain Dave.”

Let them eat cake is the ultimate call to the Soros Open Society.  It’s like the Jonestown equivalent of free beer tomorrow being as emergently empathic as FREE KOOL AID TODAY!  At its core, this is a debate over scarcity and abundance.  Standards, if they are anything they  are not inherently agnostic.  A standard (think the Federal Reserve System) is either one based in scarcity or one based in abundance (think Christianity or forgiveness of sins, or grace as a standard) or something as ridiculous as printing “In God We Trust” on our money and everyone using it… or writing the date on every check that declares the Year Of Our Lord.  Christmas is just a story… right?  It’s a video downloadable from Netflix.  No?  Yes?

A purchasable communion token from the Free Presbyterian Church Of Scotland

(with single freedoms like this, who needs two concepts of liberty)

Where we run into trouble is when we move from one system to another.  We are attempting to pivot from one standard (say the quantity theory of money) to a new standard (say quantitative “easy”).  One nation under God, indivisible, with liberty and justice is becoming one world under technology with democratized  (i.e. required) participation in everything from vaccines to opt-in organ donation because they know better than you do.  It’s about the collective.  You see, if there was any confidence in the current monetary system there would be plenty of circulation velocity of money and not an overabundance of hoarding Tim Swanson’s “subway tokens”.  People may choose to trust God or not, but increasingly they don’t trust Greece (or the troika) any more than they trust the Swiss National Bank not to pull a fast one on short notice.

The problem with tapering the ponzi (h/t Max Keiser) is that it has to be offset with an equivalent expansion of confidence and if you ask Alan Greenspan such a tapering won’t happen without a “measurable” impact on the price of gold.  This is nothing more than an outward expression of an entire lack of confidence and it can only be manipulated so much and for so long until it breaks.  People understand abundance.  People understand scarcity.  People watched Brian Williams too.  So there.

They “get it” regardless of what you tell them and yes they will buy an Iphone even though a new Iphone is coming out and believe it or not they will start hoarding proverbial subway tokens if they start believing that network access will start being restricted based on a new standard of “global justice” (i.e. resource based economics delivered via London School of behavioral Economics modeling).  This is precisely what has happened to all that money and all that credit that was created since 2007.  Yes, the plunge protection team drove everyone into the shrinking float of equity buybacks, but no confidence has not been restored and that’s why a new global system is being put through its paces.

Meher’s hometown turned down a return to a gold standard by referendum just like the Scottish voters turned down their independence from the crown.  The democratization of morals (7 billion shades of grey) continues to move us from the divine right of kings, to an enlightened form of representative government and resource based economics ala Adam Smith, but now we are hurtling into a democratized world of smartphone enabled personages known as every man for himself (including 2 years of free community college) but subject to being Nudged by Cass Sunstein who has access to all available information.


(to be continued…)  IOU:  The Internet Of Money IS The Internet Of You




Chain With Kyle

February 16th, 2015

The first interview in a new Raoul Pal chain letter style peer-to-peer series called The Chain.  I will be curious to see how this project works out.

Trade Packets With Maasai Warriors

February 15th, 2015


Dave has the feeling they are not celebrating the arrival of a smartphone loaded with Bitcoin.

They don’t come much better than Ian Grigg when it comes to great minds in the crypto accounting and blockchain space.  He ranks right up there with deep thinkeres such as the late great Aaron Swartz and Dan Kaminsky.  Nonetheless, Dave can’t help but laugh to himself when he hears people talking about “the unbanked of Africa.”  You know, those ancient civilizations that didn’t get along until The Bill & Melinda Gates Foundation showed up with their shares of Monsanto enabled Roundup-Ready agriculture and a fully loaded smartphone… ready to help.  We’re here!!

Nonetheless, the accounting industry (and by default, finance and banking) have reached a watershed peak and we’re now heading down the other side… into an entirely new watershed.  You thought you could go anywhere you wanted, but you were stuck in a room with your packet.


Could Bitmesh allowing you to take your extra bandwidth and turn it into “crypto equity” be the killer app that DAO/DAC’s have been looking for?

Here’s a good example of just the type of mesh networking Ian is referring to:



Bitmesh introduction:


If you want to know who was covering mesh networks over four years ago.  That would have been Dave and Jaromil.  There had to be some reason you keep coming back to this blog:



Trade With The Idea Of Dave

February 13th, 2015

photo: Jenn Sterling

“So here’s my number…” Extensibly speaking, a loosely coupled component applied with no direct knowledge of the object of your crush.


Somebody asked Dave one time; “Do you like being married, or is it that you just like the idea of being married?”  I said, “I thought that was the idea… to like being married… as opposed to not liking being married.”  Believe me, I like being married.  Yes, it is a two-way street and yes, when we agree we do things Dave’s way, but “loose coupling” is not something that Dave buys into anymore than Dave believes in trusting a trustless system or a trustworthy “system” for that matter.  It’s the system designer that creates the trust issue and Dave puts his trust solely in The Original Designer and there’s no app for that.

The way Dave sees its, either you’re coupled or the couple is loosed.  Loose coupling isn’t coupling… it’s agreeing.  Agreeing in the absence of coercion is a form of trust, not withstanding the existence of a contract.  It’s implicit, not explicit and if you clicked the terms of service, then it’s debatable in a DMCA kind of way.  Yes, the protocol is reliable in a Hotel California check-in desk “Mr. Harrison, we have your reservation right here” kind of way.  Dave’s not saying that you can’t build a sound computer program based on loose coupling, or a republic like the U.S. of A. or a default opted-in organ donation program dedicated to Cass Sunstein’s ideals.  You can.  It’s the decoupling that you need to be concerned about, because it’s not so loose.

We voluntarily participate in loose coupled systems everyday.  Obamacare is loosely coupled.  You can check in, but you can’t check out, because it’s your data and money that they want, not your health – that’s your problem.  It’s not like you can take data back.  Once you literally pull back the kimono and discover that the emperor failed to participate in the briefs vs. boxers debate there’s no removing the image burned into your memory by the likes of @WilliamBanzai7 .  The entire concept of consent of the governed is a loosely coupled idea.  If you consent… you’re governed, and not doing anything about it (or quietly occupying Zuccotti Park for that matter) is the essence of consent.

So Larry Summers has been caught passing a note with the Dealbook Deputy Editor at the New York Times saying that Larry “likes likes” Bitcoin.  Hold on one Nakatomi!  Larry doesn’t like Bitcoin.  Larry likes likes the “idea” of Bitcoin, but in a Hank Paulson like liked congress kind of way when he offered them that bailout by ensuring “that their money will not be stolen.”  With appreciable friends like Larry, Bitcoin hardly needs fractional reserve enemies.

“If the day ever comes where Bitcoin counts for an appreciable fraction of commerce that takes place in the world economy, on that day it will be because that commerce is regulated and subject to safeguards and people believe that something other than a mathematical algorithm is ensuring that their money will not be stolen.”  Larry Summers


If you ask Dave, it’s the sidechain that Larry “Hey I just met you, and this is crazy, but” Summers has his crush on.  Dave’s been a believer that the father of the #WWGT hashtag (What Would Goldman Think?) has been carrying a torch for Blockstream’s side o’chains for quite some time, not Bitcoin proper.  Larry says as much in his NYTimes thumbs down of the “hyperlibertarian aura” (you gotta like that).  Let’s take a look at some of the names behind the sidechains blockbuster known as Blockstream, who unlike Ethereum, didn’t raise their money in Bitcoins… don’t you hate when you do that and the price collapses?

At the headwaters of Blockstream there’s the father of the invitation to being loosely coupled into a self-populated B2B version of Facebook known as LinkedIn founder Mr. Reid Hoffman.  Dave calls it ChainLinkedIn, like a chain link fence.  Khosla Ventures, Real Ventures, Crypto Currency Partners, Google Chair Eric “Creepy Line” Schmidt, Innovation Endeavors, Future/Perfect Ventures, Mosaic Ventures, Ribbit Capital and Jarry Yang co-founder of Yahoo! round out the dark pool of investors.  Don’t leave out Paypalantir Mafia founding member Max Levchin’s role at Blockstream.  Max ranks right up there with the Peter Thiels, Elon Musks and Pierre Omidyars.

Getting back to the concept of “loose coupling.”  Has anyone ever said to you; “Hey, give me a call.  We’ll go to lunch”?  That’s loose coupling.  You see, when someone says “Give me a call, we’ll go to lunch”, there’s an all-you-can-eat portion of plausible deniability.  It’s not a genuine invitation.  You have not been invited to lunch.  In the same way software makes a call, you’ve been invited to make a call, but you have no idea if the “here’s my number” that she gave you is really hers and furthermore whether or not she will accept your solicitation.  As a matter of fact, if you respond to the “loosely coupled” request, you may very well unknowingly be extending an invitation and someone may eat your lunch accordingly and stick you with the bill.  Hey!  I know it’s crazy, but you called me maybe.

Loosely coupled system design means that the components (in this case the blockchain) have (or can have) no knowledge of the definitions of other components (in this case the sidechain).  Dave isn’t saying that the Blockstream sidechain scheme won’t work.  Actually, I am saying the opposite, it will work… at least for Larry Summers types.  Where Dave is concerned is that if the elements of the sidechain have no intention of ever exiting the sidechain, say to be exchanged for Bitcoin, but instead intentionally check in to the Hotel California with no intention of ever checking out, you’ve got a “serious” situation (in a Jean Claude Junckering sense of the word).

Anytime an organization puts this on their website (see below), it ought to give you pause that you are rapidly approaching, or may have already crossed, the Eric Schmidt creepy line of no return in a Benoit Mandelbrott inspired effort to reach the zero lower bound of Michael Woodford’s Chicago Plan.  Not gonna happen, or as they say in Greece – Varoufakis.

can't be evil


At least with the Bitcoin blockchain you know precisely what you’re getting into even if getting into Bitcoin as a currency is a crap shoot; one that Dave is becoming increasingly interested in as the price makes a beeline from its towering $1,000 height to the sidewalk below.

Implicit is not explicit (and Dave’s not denying the smart contract… jus’ sayin’) because you don’t know what the call is going to return unless you are on the receiving end, not the originating end.  If the plan is for your so-called trustless counterparty (say Lloyd Blankfein) to never attempt to escape the sidechain once “it” (your cryptoasset) is in the sidechain then that’s an idea worth thinking about.  No doubt Nixon thought about such ramifications when he closed the gold window… watch your fingers!

If you don’t think they can change “what the meaning of is is” then you haven’t been trading ideas with Dave.  The entire Dodd-Frankenstein-Donkey-Kong-Fraud was designed to extend and pretend that swaps and insurance could avoid being defined until the London Whale was securely on the beach and the blubber had been consumed (i.e. deferred prosecution agreement) by the system and fully functioning Goldman Sachs laptops had been found in New York “garbage rooms” to assign the bailout blame (i.e. Himpton Doctrine).  That’s precisely why Wall Street will be all in for sidechains, because unlike the blockchain itself, they are open to interpretation.

Know they Winkelvii?  You will know them by their socks…

In what seems to be an attempt at channeling Hank Paulson, Mr. Summers interjects a regulatory threes-a-crowd personality into the otherwise trustless model of Bitcoin blind dates.

“If the day ever comes where Bitcoin counts for an appreciable fraction of commerce that takes place in the world economy, on that day it will be because that commerce is regulated and subject to safeguards and people believe that something other than a mathematical algorithm is ensuring that their money will not be stolen.”  Larry Summers

For you management gurus out there who want to talk about “simultaneous loose-tight properties” or physicists and “wave-particle duality” or pet owners who want to know “who killed Schrodinger’s cat in a box”, I’ve got eight words for you; DO AS I SAY, NOT AS I DO or to quote scripture Matthew 6:3  “But when thou doest alms, let not thy left hand know what thy right hand doeth.”


Lawsky and Larry side with history: http://tradewithdave.com/?p=20832


Blockstream.com:  “We transform global systems of value exchange that, by design, make it possible to trust anyone.”

Actually, this isn’t about trust.  It’s about being prepaid into a network.

Sidechains white paper http://blockstream.com/sidechains.pdf

Go ahead and geek yourself out with the mensa of Blockstream.  Yes, I listened to “unchained love”  three times and still managed to hold onto my Valentine, but it’s not recomended:


Can You Hear Me Now Howey? Smokin’ Tokens

February 10th, 2015

Can you hear me now?  No!  It’s not a security… it’s a token!  No!  Not a smokin’ tokin’.   I said TOKEN… like a subway token.

h/t Pete Rizzo CoinDesk.com  http://www.coindesk.com/token-security-research-analyzes-blockchain-us-law/


Swarm Working Paper:  Distributed Networks And The Law


The First Stellar Is The Fellar

February 6th, 2015

Lookin to avoid the hard fork?  Then don’t hire the Hell’s Angels as your security team and pay them in beer…


So here’s how it works.  Senator Dianne Feinstein comes out with some regulation that requires “real” journalists to get a license from the federal government before they can exercise their First Amendment right to freedom expression.  Sounds about right.

Then, all the bloggers go away and we’re left with Fox News, MSNBC and CNN which by this point are all probably owned by Rupert Murdoch assuming he finds a backer to replace Prince Bin Alwaleed Bin Talal.  Sounds about right.

However, one guy slips through a crack in the floor.  His name is Michael Craig.  Somehow he manages to get a Feinstein license to blog and then he writes the following story and changes the world, or at least the global impact of those cubby holes at Stellar that house the costumes and neat hat collection.  You may need to call into work and tell them you’re sick, because you’re going to be reading this three or four times.  Wow!… what can I say?


Here’s to real investigative journalism that didn’t get co-opted by Pierre Omidyar for a change.



The German Engineering Behind Calvin Jeans

February 3rd, 2015

Interestingly, you don’t see these particular BMW models any more.


For you deep thinkers out there who are considering the implications of the world’s entire legal framework being hashed into the blockchain, here’s the Ultimate Driving Machine of engineered culture.  For everything else… there’s Mastercard.

Whoever said “there’s no accounting for good taste” must have known that good taste would ultimately be parameterized into a smart contract and accounting would be preconfigured by consensus (aka no longer necessary).

Andy Perry on the Cultural Constituencies of Angela Merkel’s blue jean size:


Dave on the Calvinist inconsistency of blue jean sizes as measured across cultures:


Bossy Penguin – Cabbage Patch Kid Meet Internet Of Things

February 3rd, 2015


What could possibly go wrong with a cuddly consensus carrying plush artificially intelligent robot?  Your kids will love Bossy! 


“Our new Bossy Penguin seemed so warm and cuddly.  The kids really loved it.  That was until it hashed Grandpa’s Obamacare consensus and shut down his in-home oxygen supply based on a pre-configured smart contract while the wife and I were outlet shopping.  Parameterizing Grandpa’s economic value to society seemed like such a ‘reasonable’ idea at the time, you know… with the resource-based economy and all.  We’re gonna miss that guy, but the kids have Bossy to keep them company now and he’s not as smelly as Grandpa.”

Don’t want to wait for your Sharper Image catalog?  No Brookstone store in your tier 3 mall?  Then build your own Bossy!  It’s E-Z!

1.  You’re going to need $35 for this:  http://www.raspberrypi.org/raspberry-pi-2-on-sale/

2.  I guess the Factom blockchain operating system (Boss for short) registry part is going to be free:  http://kencode.de/projects/ePlug/Factom-Linux-Whitepaper.pdf

3.  You can buy your own “Bossy Plush” cuddly exterior on Ebay for $12.99: http://www.ebay.com/itm/LINUX-OS-Tux-Ties-Necktie-Penguin-Motiff-Blue-/251003754296?pt=US_Mens_Ties&hash=item3a70fd5738

Dave suggests that you spring for the model with the Linux necktie… just in case “choking distance” becomes an issue.  Red Hat not included.