Fork Wars Episode I – The Phantom Futures

If you haven’t been living under a rock for the last couple of weeks then you know that the whole block size debate is boiling to a close.  Segwit2x arose to be a compromise solution, lead by ex-core developer Jeff Garzik, brokered and agreement in New York after the Consensus 2017 conference which had over 90% of the miners and ecosystem in agreement.  Since then BIP91 has locked in, which is an effective lowering of the much exalted soft fork consensus threshold of 95%, by which half of the inner circle of core devs felt was deficient. Regardless of how this was on the surface seen to be a ‘lowering of the standards’ it was done anyway and conveniently so, as segwit was not looking like it would ever pass the 95% bar anyhow (ahem. “I TOLD YOU SO” to all the neckbeards out there, and u/jonny1000!).  Now that segwit2x/segwit is going to be ‘forced’ by way of 90% of the miners starting to reject non-segwit signaling blocks, this ensures that segwit’s threshold of 95% of last 1000 blocks will be met sometime in mid-August.  (yes, you read correct, BIP91 was an 80% majority agreement to come to a 95% agreement by forcing the 20% to agree with you or be orphaned — by force!).

This has set the stage for the drama to follow.  For one there is already a growing group of big blockers who have mobilized to fork off the current Segwit2x/Segwit Bitcoin (let’s call this SegwitCoin) who have identified themselves as BitcoinCash.  They are a fork of BitcoinCore 0.14.x with Segwit and RBF components disabled, and a 8mb Hard Fork coded to engage at Aug 1, 12:20 UTC time.  This guarantees that there will be a ‘big block’ Bitcoin regardless of what happens with the SegwitCoin and the expected in-fighting among the new ‘stewards’ of the main chain (Jeff Garzik and his btc1 team) vs. the old guard which have been deposed (Bitcoin Core, Blockstream). Continue reading

On Ponzi’s, Equity Derivatives, and Ethereum

Charles_Ponzi

Many people will talk about ponzi schemes without actually thinking about what that actually means. They say that Ethereum will fail because it was founded on and funded by lies. But when it comes down to it, how are these different from that of the current central banking debt based fiat money system?

Fund first, ask questions later

Ethereum was a project funded with 18m USD of value mostly in BTC. After writing a whitepaper and creating a proof of concept prototype, they hired developers to write it. Most of them were loaned money and worked for free but were promised exorbitant 20% bonuses after the crowd-sale.  They made a windfall after selling ETH before the blockchain was even in operation in what is called an initial coin offering or ICO to the public. Once the money was raised they patted themselves on the back, and all the developers who were promised pay in stock options (ETH) simultaneously breathed a sigh of relief and cheered.

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