I hope none of you have been selling your ethereum because o

>>1065342
Doesnt the fact that it costs 80 cents to mine one ethereum on gpu sort of indicate the current price is a tad high?

>>1065344
Get mining then, you are free to do so. The more people mining the more the mining difficulty increases. And the more secure and powerful the network becomes!

It's a perfect system. And it would be, Satoshi Nakamoto himself helped design it.

Lambos don't buy themselves. Better get on the moon rocket quick sharp before smart people eat your lunch!

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Write up in german equivalent of Time magazine Stern (Star) on our glorious leader V buterin and the ethereum blockchain

http://stern.de/wirtschaft/vitalik-buterin--das-blockchain-genie-6654386.html

Wouldn't you rather look at the earth from the moon instead of the other way round?

>>1065434
He looks like a fucking autist LMAO

The world is about to get the second $Billion + blockchain.

Don't be left behind.

>>1065436
He is a fucking autist. He's a savant, like rain man. And he is making it rain

8d1b4e41652eacec5715dc5c4833f6b713573de6

To donate add 0x

When the shorts finish losing all their money we're going to the next level. Shitcoins btfo. Divest your holdings of shitcoins and dead-in-the-water BTC and get your ass into the space capsule before liftoff.

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On the other hand it's looking exceedingly shitty for bagholders and the 4 Chinese people that control Bitcoin mining.

It took another $10 dump today. What could be more satisfying than taking a great big piss over those greedy clueless Chinese people that ruined crypto by pumping shitcoins.

>>1065342
>>1065423
>>1065434
>>1065437
>>1065441
>>1065459
>>1065467
>>1065493
>He's so desperate to shill his meme coin that he posts every 5 minutes

Lmao. Give it a rest. No one is falling for it.

>>1065497
You're welcome anon.

What site allows me to sell ETH for USD?

>>1065606
Any of the major exchanges

https://bitcoinmagazine.com/articles/ethereum-overtakes-litecoin-in-market-cap-after-continued-upward-trend-1454003090

>>1065342
>Don't miss out on bitcoin 2.0 because fedora tipsters told you the whole thing was bullshit.
No, I'm missing out because I don't trust the opinions of NEETs and shills on a Samoan testicular cancer chatroom.

>>1065726
Do you think the way to financial wellbeing is to be relentlessly negative about all opportunities that arise?

Seems like the market is 2 days from a major price bump by 30%. Get the hell in

>>1066218
Why would it go up by 30%?

>>1066218
Ok you've convinced me.

I just bought $800 worth of ETH.

What do I do next? Should I just wait? When is a good time to sell it?

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>>1066225
pics or diddndnt happen

>>1065726
>No, I'm missing out because I don't trust the opinions of NEETs and shills on a Samoan testicular cancer chatroom.
I said the same thing. In 2009. I'm still poor now.

>>1066225
Just chill. Put it in a safe wallet now and forget about it. In 6 months time, check the price. Or wait till you hear about it on the TV news then consider the market at that point wether you want to sell.

Protip bever sell for less than you bought it for. This shit isn't going to stop until the full potential of crypto is achieved.

Ethereum has the potential to make AAPL look like a penny stock.

>>1066246
This guy knows. Imagine if you sold BTC for $3. Then 18 months later it's $1200 a piece. You'd kick yourself.

This stuff has the potential to make BTC look like childsplay.

>>1066249
I mean

>>1066243
This guy knows.

>>1066242
>>1066246
>>1066249
Just kidding I didn't buy this bullshit.

No one wants your worthless imaginary currency, get out of here.

>>1066261
Your loss m8. Im sure being such a master ruseperson will get you far in life

>>1066265
You literally spend your day shilling some pump and dump coin and bumping a thread no one cares about.

You aren't going much further in life. Once Ethereum falls through you'll go right back to /r9k/ posting about "chads" and "staceys"

>>1066269
He's right though. This is the first crypto since Bitcoin that isn't a shillcoin. Ethereum takes the blockchain concept laid out by Satoshi Nakamoto in the Bitcoin whitepaper and expands the vision beyond currency to a general decentralized ledger, basically the platform Nick Szabo has been imagining for like 20 years.

Do yourself a favor, read up on blockchains and smart contracts, check out the original Bitcoin whitepaper and then read some of the documentation on Ethereum.

Or don't, I don't really give a shit. I've been mining since August, fuck you, got mine.

>>1066269
Sorry im not into the chad stacey paradigm. In fact i'm highly educated and mature. That's the reason I invested in one of the best investments that 2016 has to offer. If you don't want to invest, just sit back and watch with growing regret as ethereum continues to apreciate in price over the next year make millionaires of the peopke that were smart enough to invest in the most game changing technology in the field of cryptographic science.

>>1066293
You posted 18 times in a thread of 30 total posts.

Are you sure you're not a NEET?

>>1066296
I dont have to work a 9 - 5 those days are long gone. Ethereum is my hobby and I'm addicted to 4chan.

>>1066315
How did you earn enough money to do that?
Is shilling shitcoins really that lucrative? I might look into it.

>>1066293
You know we can see your ID right?
GOKRbz4w, it's even highlighted in red.

Stop shilling.

>>1066325
Im aware you can see my id apparently you are under the impression i care

can anyone here recommend where to get legitimate information and how to get into serious discussions about cryptos besides leddit?

The people biz think that they're going to get rich by investing their chicken tendies points in crap coins because of highly volatile market conditions. They see that other people are making money and think that if they jump on the gravy train right now it will happen to them too. But the money has already been made and it was made by the people who were able to reason about the potential of Etheurem before the unwashed masses pounced on it. As a result: there's nothing left for you retards. The people who currently hold are going to sell when they've secured a tidy profit and you spastics will be left to hold the bag.

Just some advice: investing isn't about finding short cuts in life but making money work smartly for you. A smart bunch of $100 tendie points still isn't smart enough to make you another tendie. Sorry folks, but its true. Also, fuck buying anything that biz suggests. I am shorting ether.

>>1066417
Literally just search and read and search and read, starting with the white papers. Educate yourself on the technology first. That's why it's so hard to generalize about why ethereum might be a good buy. The tech behind cryptocurrency and eth in particular is quite deep, but still obtainable.

From an unbiased view point, from what I've read ethereum is going to surpass BTC. It's just better tech and launched with BTC's failings in mind.

>>1066463
>shorting ether

Thanks for your donation to the ethereum project

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Another day, another fat green candle. When will you see that this is going up and up? Now? In a months time? In 2 months? Or when it's too late to make megabucks?

You tricked me with doge coin, you aint tricking me now

>>1066520
You tricked yourself with dogecoin. Which shows you're an idiot. So i can understand why you can't see this is going to make you money.

>>1066439
Someone who goes to the effort to make a picture like that must be bagholding litecoin.

How do I get in on this?
Is it still early enough to mine with a CPU and make enough?

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>>1066249
>>1066246
you know /biz/ has ID's

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>>1066854
Hahahahahahhahshshsbuwheuaheuhsjshxhienekdixidjdidk WTF

>>1065606
>>1065621

What about buying Eth for USD?
I mean as long as you NEED bitcoin to buy Eth... the value of bitcoin will go up with Eth relative to USD.

>>1066858
eth holders a minority compared to btc

also once you have some ether, make sure to continue the shilling

a meme, a bubble, nothing else to it.

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>>1066246
>>1066249

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Im counting on the dgb pump then i'll buy ethereum

except xem has its days coming too.

>>1066498
As an aside anons, right after this guy posted this I shorted and made a 4% gain on my crypto portfolio.

>>1066439
lol'd hard

>>1066439
FOKen KEK'd , buy up all that bullshit ETH because, ain't that retard gonna goof hemself a mansion unless you don't lol.

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0x8cf421a53fde0e264cd495c85d0a35b54701a9b6

Anyone willing to donate a little to my girlfriend?
My girlfriend really got into ETH and every time we meet she looks at the chart to see if it's going up, I'm really happy she got into it and I have something to share with her.

I've been giving her a few ETH wherever I could but right now it's a little crammy having to pay for my study in economics and all.
Don't want to sound greedy or anything though.

>>1068046
You fucked up. She's going to break up with you for sure when she realizes it's shit.

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>>1068050
Believe it or not, she actually wanted to invest into it herself after I showed all the currencies and pointed out that I was holding a little ETH myself because she wanted to hold ETH together.

>Tfw I made it girlfriend wise

>>1068059
So you conned her? I wouldn't get in a relationship with a girl that dumb desu senpai

>>1066847
cpu mining doesn't make enough by design, its only worth gpu mining

>>1066292
Do you think the public is going to do this or do you think they are going to say "Oh yeah, it's like that bitcoin thing you never hear about anymore."

>>1068063
Conned?
She invested like 30 euro max and shes having lots of fun with that, its adorable.

>>1068083
>losing money
>adorable
K.

>>1068085
Its something we do together, thats what makes it fun.

>>1068095
Your gf is probably butters f a. M. But she becomes more attractive to me because she is interested in turing complete blockchains.

Sent ;)

>>1065342
I hope you get paid to waste your time shilling this eth bullshit.

>>1068170
You don't get it. This isn't about money, it's about taking down the centralised internet oligarchy, facebook, google and all the other NSA spyshit centralised sites. It's Ideological not financial for me. Ethereum is hardened against both mass data collection and censorship. It's also completely open at the same time. It's cryptonite to the centralised closed source internet.

I have the same energy to ethereum-post as a stormfag on /pol/ would make nigger hate threads.

I just cant help myself.

>>1068190
>
I have the same energy to ethereum-post as a stormfag on /pol/ would make nigger hate threads.

I just cant help myself.

I shed a tear.

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>>1068190
>it's about taking down the centralised internet oligarchy, facebook, google and all the other NSA spyshit centralized sites
>by shilling a trivial shitcoin on a Ugandan soap carving forum

Well someone has an overinflated ego...

>>1068210
You think i'm the only one? You think this is the only site i visit? You think i only speak one language? Lol! Oh look you're laughing but you're reading a thread about ethereum and so will millions of other.

>>1068272
>You think this is the only site i visit?
Lmfao

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>>1068290
Behold partly my handiwork (pic related)

Continued exponential growth in the number of ethereum addresses
http://etherscan.io/charts/address/

And china can't even buy the shit yet.

>>1068299
Silly.

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Hashrate (amount of computing power securing the network and processing transactions)

>>1065342
I don't understand any of the cryptoshit. How do you monetize this. I start mining and collecting ether. In the long run how do i use this to buy goods?
Or do i not, to i have to trade them to other users for dollars?
Are you faggots actually mining? or are you just buying with BTC?

>>1068130
So mad you don't have glorious investment waifu that will make you etherich one day and have an ether bugatti with an ether house and an etherkid.

>>1065347
What;s a good gpu to mine with? Are there gpus better fit to mining as opposed to gaming? Or do you just find the most power efficient and use that?

>>1068419

Im just a shill. If you want to know about mining go and ask reddit or somewhere.

>>1068506
Yeah i did a bunch or searching around. From the online calcs i could find, at the moment it would be a small net loss per day. So i guess you'd do it expecting a price rise later. If not, you've wasted a small mount money. Couple hundred dollars in electricity.

Small risk if the price was to even double. Probably a waste of time overall.

>>1068535
Well, you can buy a mining contract. If you pay upfront they mine for a whole year at a certain hashrate no matter what the price is. Its probably the cheapest way to obtain ether unless you already own a powerful graphics card.


Genesis mining.

>>1068642
I have a 970 but that apparently can only go about 7.5-8 MHs. If i threw two in i could get to about 15-16 MHs which is 4.5 Eth a week.

>>1067157
>dgb pump?

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>>1065434
>>1065434
>"Vitalik is from another world," she says. "An Alien. Or rather a man who has come from the future. In order to help."

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>>1068299
Fucking hell

>>1068046
>sent ;^)

Who else ready for the next big pump here?

>>1070507
which pump?

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>>1069903
Thanks a bunch man, she's really happy with it.

>>1070537
You didnt hear about the pump? On monday there's going to be a pump.

>>1070564
pump on what?

>>1070585
Ethereum

http://youtu.be/-0sJZBmh77g

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>>1070590
>Ethereum

.........k

>>1070540

What a semen demon. Future ex-waifu material.

What would be a safer way to store ether right now, in the beta wallet or the poloniex exchange?

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>>1065342
>temporary market correction

>>1070623
In a usb stick up your bum

bump the pump

>>1068190
>it's about taking down the centralised internet oligarchy

and your going to do this by giving all your money to a Russian autist?

>Ethereum is hardened against both mass data collection and censorship.

Yes, if there's one people who value freedom more than anything it's the Russians....you fucking retard.

>>1071278
>trying this hard to force the russian meme

Ethereums chief scientist Vitalik Buterin is a Russian born autist who moved to the states at the age of 9 YES

but Ethereum devs are a mix of British, American, Canadian and German computer scientists.

>better than handing your money to the chinese who own ALL the bitcoin mining

>>1071288
I don't need to buy coke online so I don't need bitcoins either.

How much actual money would a person need to corner this imaginary money market?

>>1071312
corner the market?

I don't know probably half a billion

>>1071316
According to these random people here
https://etherscan.io/stats/supply

There is nearly 77 million ETH in existence. Going rate is 2.2 uds per so a market cap of about 174 million.

For something that is inherently worthless it's amazing to see. People bitched about going off the gold standard as real currencies would only be backed by the vale of good produced in issuing countries and here we are with a currency backed by thin air worth millions.

>>1071330
oh look it appears that someone misunderstands what "money" is

WHAT IS MONEY?

DO YOU KNOW THE SCIENTIFIC DEFINITION?

DO YOU KNOW WHY THE UK GOVERNMENT CHIEF SCIENTIST CONSIDERS BLOCKCHAIN TECHNOLOGY A EMERGING THREAT TO NATIONAL SECURITY?

HERE'S A CLUE: IT HAS NOTHING TO DO WITH TERRORISTS OR BUYING DRUGS OFF THE INTERNET.

IT'S BECAUSE NOW THE DEFINITION OF WHAT MONEY IS HAS BECOME CLEARLY DEMONSTRATED

>>1071330
>these random people here

you mean the blockchain right? the IMMUTABLE TRUSTLESS blockchain.

UNFAKEABLE blockchain. jesus christ you people need your heads smashed in.

soooo THICK

>>1071338
no they just want their taxes, it's not some sinister agenda

>>1071338
Money issued by a government is backed by that government and the wealth of the country they represent.

What's eth backed by?

>>1071343
LOL you jknow how easy it is to catch tax evaders on the blockchain?

it's fucking trivial.

you know the reason they don't do so? BECAUSE THEN THEY WOULD HAVE TO ACKNOWLEGE THE FACT THAT BLOCKCHAIN IS MONEY. AND FAR FAR BETTER MONEY THAN THE TOILET PAPER THE BANK OF ENGLAND SHITS OUT TONNES OF ON A DAILY BASIS.

>>1071347
THE IMMUTABLE LAWS OF MATHEMATICS AND PHYSICS. THE COMMUNITY AND CONSENSUS OF EVERY NODE IN THE ETHEREUM NETWORK. SATOSHI NAKAMOTOS ELEGANT SOLUTION TO THE BYZANTINE GENERALS PROBLEM. AND EFFECTIVE DISTRIBUTED SECURITY WHICH MAKES A MOCKERY OF ANY AND ALL CENTRALISED SYSTEMS.

IF I WAS RELIGIOUS I WOULD CALL IT A GIFT FROM GOD.

>>1071348
no matter what thread you are in, I immediately know who you are because of your excessive use of caps

>>1071347
I like you sir

>>1071352
Scarcity is not inherently valuable.

If it was my one off worlds greatest dad mug would be fucking priceless.

>>1071347
money issued by and controlled by a government is fucking worthless and long term the value is ALWAYS ZERO.

in 200 years any government and currency backed by them will not exist.

apart from maybe sterling can you think of a single government backed currency that has lasted more than 250 years?

governments come and go, and they mostly go. and the toilet paper they issue for us plebs to use becomes worth precisely zero.

>>1065342
how do i buy say 100 bucks worth of this stuff?

>>1071359
Abstract money today primarily involves accounts and other computerized bits, but traditionally came in the form of paper. The Chinese, who invented paper money called it "flying money." Abstract money is worthwhile because the dominant kind of money over human evolution, unforgeably costly commodities, can be quite costly to store and transport compared to abstract documents. For money the biggest costs of storage and transportation are typically not mundane real estate or carriage costs, but active security threats such as robbery and embezzlement.

Abstract documents, unlike unforgeably costly commodities, require trust in a human institution to enforce the abstract claims of value made in the document. This enforcement, if effective, lets the recipient of the document be confident that it can be converted into something of value, traditionally an unforgeably costly commodity that backs the document. If the recipient of the document wants to trade the document to third parties -- negotiate it -- this enforcement may also provide confidence to these third parties that they too can receive something of value in exchange for relinquishing the abstract claim.

Enforcement typically came in the form of legal and reputation systems. For example, the Medieval European law merchant enforced contracts and monetary promises in the merchants' own courts, with remedies such as bankruptcy and expulsion from merchant guilds. Bosses (principals) enforced orders against their employees (agents), and there were also often family relationships within firms that increased trust within the firm.

>>1071359
seems like you misunderstand the differtence between "scarcity" and "unforgability"

why don't you read about what money actually is from the person who invented an entirely new and superior form of money

unenumerated dot blogspot dot co dot uk

>>1071374
there's a million and one ways. i can't tell you the way that would work best for you because I don't know where you live or wether you own bitcoin already or not.

>>1071363
>money issued by and controlled by a government is fucking worthless

...So if I bring 70 thousand of my dollars to the Mercedes dealership they won't give me a car in return?

>in 200 years any government and currency backed by them will not exist.

In 200 years we will all be dead and who the fuck knows what will happen.

I'll bet on the US government surviving longer than a made up currency I can't buy anything with.

>>1071377
Read this again.
>>1071347

>>1071389
New Zealand, I have never bought crypot currency, only reason im interested is i saw one guy buy like 150 bucks worth when writing an articale then like 5 years later its worth a fair chunk of change (hundreds of thousands IIRC)

>>1071395
read this:
http://szabo.best.vwh.net/shell.html

>>1071400
followed by this:
http://szabo.best.vwh.net/distributed.html

>>1071406
and this:
http://szabo.best.vwh.net/formalize.html

>>1071397
buy bitcoin first from localbitcoins domestic bank transfer, then use shapeshift.io to convert to ETH

>>1071410
THanks

>>1071395
Over the long stretch civilization, paper represents only one of many technologies used to mediate commercial relationships. The Inca used quipu -- accounts encoded on strings, a system with interesting tamper-resistance properties. Early Middle Eastern civilizations used clay tokens for thousands of years. These combined the function of, and were a precursor to, both cuneiform writing and coins. Coins started out as lumps of standardize metal and weight. Since these were too expensive to test during a normal business transaction, they came to be stamped by reputable or powerful authorities. Coins played a major role in commerce for thousands of years, but that era is now over.

Business is now dominated by paper and institutions of written literacy. Security measures have included chops, seals, and written signatures. Value has been transered via bills of exchange (which evolved into checks), bearer certificates, and accounts using the double-entry bookeeping system. Most importantly, we take for granted that contracts and law are written on this static medium, to be interpreted and enforced by human authorities.

We are now entering an era of online communications and software "literacy". The "physics of cyberspace", studied by computer scientists, are radically different from the properties of paper, to an even greater degree than paper was different from string, clay, and metal. Not only written but also aural, visual, and other sensory media can be combined. Most importantly, digital media are dynamic -- they not only transmit information, but can also make some kinds of decisions. Digital media can perform calculations, directly operate machinery, and work through some kinds of reasoning much more efficiently than humans.

>>1071395
The movement from static to dynamic media promises to bring about a fourth cost revolution in the related areas of jurisdiction, trust, and security. Impacts on business will be felt in law, accounting, auditing, billing, collections, contracts, confidentiality, and so on: in short, the entire nature of our business relationships will be altered in ways only partially foreseeable.

The main traditional way to formalize a business relationship is the contract, a set of promises agreed to in a "meeting of the minds". We naturally think of contracts as written, but oral agreements are also considered contracts, and have been around since prehistory. The contract is the basic building block of a market economy. Over many centuries of cultural evolution has emerged both the concept of contract and principles related to it, encoded into common law. Such evolved structures are often prohibitively costly to rederive. If we started from scratch, using reason and experience, it could take many centuries to redevelop sophisticated ideas like contract law and property rights that make the modern market work. But the digital revolution challenges us to develop new institutions in a much shorter period of time. By extracting from our current laws, procedures, and theories those principles which remain applicable in cyberspace, we can retain much of this deep tradition, and greatly shorten the time needed to develop useful digital institutions.

>>1071395
Computers make possible the running of algorithms heretofore prohibitively costly, and networks the quicker transmission of larger and more sophisticated messages. Furthermore, computer scientists and cryptographers have recently discovered many new and quite interesting algorithms. Combining these messages and algorithms makes possible a wide variety of new protocols. These protocols, running on public networks such as the Internet, both challenge and enable us to formalize and secure new kinds of relationships in this new environment, just as contract law, business forms, and accounting controls have long formalized and secured business relationships in the paper-based world.

In electronic commerce so far, the design criteria important for automating contract execution have come from disparate fields like economics and cryptography, with little cross-communication: little awareness of the technology on the one hand, and little awareness of its best business uses other. These efforts are striving after common objectives, and converge on the concept of smart contracts

Smart contracts reduce mental and computational transaction costs imposed by either principals, third parties, or their tools. The contractual phases of search, negotiation, commitment, performance, and adjudication constitute the realm of smart contracts. This article covers all phases, with an emphasis on performance. Smart contracts utilize protocols and user interfaces to facilitate all steps of the contracting process. This gives us new ways to formalize and secure digital relationships which are far more functional than their inanimate paper-based ancestors.

>>1071400
>>1071406
>>1071409

That is all "I just watched zeitgeist" tier idiocy.

>>1071418

You are still, quite desperately, trying to dodge the question of what backs ETH? What is it's inherent worth?

Try answering this time instead of posting a page of unrelated shit.

>>1071395
The basic idea behind smart contracts is that many kinds of contractual clauses (such as collateral, bonding, delineation of property rights, etc.) can be embedded in the hardware and software we deal with, in such a way as to make breach of contract expensive (if desired, sometimes prohibitively so) for the breacher. A canonical real-life example, which we might consider to be the primitive ancestor of smart contracts, is the humble vending machine. Within a limited amount of potential loss (the amount in the till should be less than the cost of breaching the mechanism), the machine takes in coins, and via a simple mechanism, which makes a freshman computer science problem in design with finite automata, dispense change and product according to the displayed price. The vending machine is a contract with bearer: anybody with coins can participate in an exchange with the vendor. The lockbox and other security mechanisms protect the stored coins and contents from attackers, sufficiently to allow profitable deployment of vending machines in a wide variety of areas.

Smart contracts go beyond the vending machine in proposing to embed contracts in all sorts of property that is valuable and controlled by digital means. Smart contracts reference that property in a dynamic, often proactively enforced form, and provide much better observation and verification where proactive measures must fall short.

As another example, consider a hypothetical digital security system for automobiles. The smart contract design strategy suggests that we successively refine security protocols to more fully embed in a property the contractual terms which deal with it. These protocols would give control of the cryptographic keys for operating the property to the person who rightfully owns that property, based on the terms of the contract.

>>1071395
In the most straightforward implementation, the car can be rendered inoperable unless the proper challenge-response protocol is completed with its rightful owner, preventing theft. But if the car is being used to secure credit, strong security implemented in this traditional way would create a headache for the creditor - the repo man would no longer be able to confiscate a deadbeat's car. To redress this problem, we can create a smart lien protocol: if the owner fails to make payments, the smart contract invokes the lien protocol, which returns control of the car keys to the bank. This protocol might be much cheaper and more effective than a repo man. A further reification would provably remove the lien when the loan has been paid off, as well as account for hardship and operational exceptions. For example, it would be rude to revoke operation of the car while it's doing 75 down the freeway.

In this process of successive refinement we've gone from a crude security system to a reified contract:

(1) A lock to selectively let in the owner and
exlude third parties;
(2) A back door to let in the creditor;
(3a) Creditor back door switched on only upon nonpayment
for a certain period of time; and
(3b) The final electronic payment permanently switches
off the back door.

Mature security systems will be undertaking different behavior for different contracts. To continue with our example, if the automobile contract were a lease, the final payment would switch off leasee access; for purchase on credit, it would switch off creditor access. A security system, by successive redesign, increasingly approaches the logic of the contract which governs the rights and obligations covering the object, information, or computation being secured. Qualitatively different contractual terms, as well as technological differences in the property, give rise to the need for different protocols.

>>1071395
Outside of the financial cryptography community, and long predating it, there is a deep tradition of protocols used in the course of performing contracts. These protocols consist of a flow of forms ("data flow", canonically displayed in data flow diagrams), along with checks and procedures called "controls". Controls serve many of the same functions as cryptographic protocols: integrity, authorization, and so on. This article uses "control protocols" or simply "controls" to refer to this combination of data flow and controls.

Control protocols, and the professions of auditing and accounting [ 2 ] based on them, play a critical but ill-analyzed role in our economy. Economists lump them, along with other costs of negotiating and ensuring the performance of contracts, under their catch-all rubric of "transaction costs". But without controls, large corporations and the economies of scale they create would not be possible. Controls allow a quarrelsome species ill-suited to organizations larger than small tribes to work together on vast projects like manufacturing jumbo jets and running hospitals. These control protocols are the result of many centuries of business experience and have a long future ahead of them, but the digital revolution will soon cause these paper-era techniques to be dramatically augmented by, and eventually integrate into, smart contracts.

Controls enable auditing of contract performances, allowing more precise inference of the behavior of an agent. Auditing is costly, so it is undertaken by random sampling. Economists study the substitutability between the probability of verifying a breach and the magnitude of legal fines, where physical enforcement is used. Conceivably, one could substitute increasingly high penalties for increasingly rarer and less expensive auditing. However, this is not robust to real-world conditions of imperfect information.

>>1065434
How much adderall is this kid on?

>>1071418
>>1071420
>>1071421
>>1071424

tl;dr

instead of copypasting try to summarize it to get an argument within two sentences - the shit you're doing leads to cherrypicking your shit which then results in you being butthurt because nobody got the point

>>1071395
Since controls primarily address the implicit contracts between employees and employer, there is little mapping from contract to control. A secondary function of controls to to monitor contracts with other organizations. Here there is some mapping, but it is confounded by the integration of the two functions in most controls. Rather than based on contractual terms, controls are typically based on managerial authorization.

Controls are typically based around amounts of money and quantities of goods. A canonical control is double entry bookkeeping, where two books are kept, and there must be arithmetic reconciliation between the books. To conceal an irregularity, necessary to omit from both sides, or to record entries offsetting the irregularity. Notice that there is a problem distinguishing error from fraud. This problem crops up in many areas in both auditing and smart contracts. To illustrate, here are two common control techniques:

>>1071395
mprest: this is a family of controls involving the receipt or disbursement of bearer certificates (usually notes and coins). One example is the protocol used at most movie theaters. Entry is segregated from payment by introducing tickets and establishing two employee roles, the ticket seller in a booth, and the ticket stub salesman at the entrance. Periodically, a bookkeeper reconciles the number of tickets with the total paid. Discrepancy again indicates fraud or error.

Customer audit: Techniques to get the customer to generate initial documentation of a transaction. For example, pricing goods at $.99 forces the employee to open the cash register to make change, generating a receipt.

A complete control protocol typically features the generation of initial documentation, segregation of duties, and arithmetic reconciliation of quantities of goods, standard service events, and money.

Of these, the segregation of duties deserves special comment.

In a large business, transactions are divided up so that no single person can commit fraud. Segregation of duties is an instance of the principle of required conspiracy. For example, the functions of warehouse/delivery, sales, and receipt of payments are each performed by different parties, with a policy that each party reports every transaction to a fourth function, accounting. Any singular reported activity (e.g., delivery without receipt of payment) indicates potential fraud (e.g., a delivery was made to a customer and the payment pocketed instead of being put into the corporate treasury). Segregation of duties is the auditor's favorite tool. Where it is absent the auditor cries "foul", just as a good engineer would react to a single point of failure. Many cryptographic systems have rightfully gone down to commercial failure because they ground down to trust in a single entity rather than segregating functions so as to require conspiracy.

>>1071436

This book has two parents:
Capitalism and Freedom,
our earlier
book, published in 1962 (University of Chicago Press) ; and a
TV series, titled, like the book, "Free to Choose." The series will
be shown on the Public Broadcasting Service for ten successive
weeks in 1980.
Capitalism and Freedom
examines "the role of competitive
capitalism—the organization of the bulk of economic activity
through private enterprise operating in a free market—as a sys-
tem of economic freedom and a necessary condition for political
freedom." In the process, it defines the role that government
should play in a free society.
"Our principles offer,"
Capitalism and Freedom
says, "no hard
and fast line how far it is appropriate to use government to accom-
plish jointly what it is difficult or impossible for us to accomplish
separately through strictly voluntary exchange. In any particular
case of proposed intervention, we must make up a balance sheet,
listing separately the advantages and disadvantages. Our principles
tell us what items to put on the one side and what items on the
other and they give us some basis for attaching importance to the
different items."
To give substance to those principles and illustrate their ap-
plication,
Capitalism and Freedom
examines specific issues—
among others, monetary and fiscal policy, the role of government
in education, capitalism and discrimination, and the alleviation
of poverty.

>>1071395
There are least three significant differences between the scope and emphasis of smart contracts and controls. Controls are paper-era protocols designed around static forms, place little emphasis on confidentiality, and are based on management authorizations rather than one-to-one relationships.

Smart contracts can be based on a wide variety of interactive protocols and user interfaces, and can be involved in a wide variety of kinds of contractual performance. Control protocols, developed in the era of paper, are based on static forms passed as messages and processed in tables and spreadsheets. Controls focus on money and counts of standardized goods and service events, easily recorded by numbers and manipulated by arithmetic, while mostly ignoring other kinds or aspects of contractual performance. Checksums on numbers, the basis of reconciliation, are crude and forgeable compared to cryptographic hashes. Electronic Data Interchange (EDI) keeps these static forms and maintains reliance on controls. It uses cryptographic hashes for nothing more sophisticated than integrity checks on individual messages.

>>1071395
Controls place little emphasis on confidentiality, at least in the modern accounting literature. The emphasis on confidentiality in paper-era protocols is lacking because violation of often implicit confidences, via replication of data, was much more difficult with paper. Furthermore, technologies for protecting confidentiality while auditing were not feasible. Businesses traditionally trusted accounting firms with confidences, a trust that has eroded over the last century, and will erode still further as accounting firms start taking advantage of the vast amounts of inside and marketing information they are collecting from their customers' databases during audits. Using paper-based protocols in a digital world, there are few effective controls against the auditors themselves. Post-unforgeable transaction logs and multiparty secure computation, discussed below, indicate the possibility of cryptographic protocols to implement less relavatory but more effective auditing trails and controls; their use may be able to ameliorate the growing problems with data mining and breach of confidentiality.

Auditors place quite a bit of trust in management to authorize transactions in a secure and productive manner. Objecting to this dual trust in management and distrust of employees inherent in the accounting tradition, there has been a trend in the last two decades towards a loosening of controls as a part of hierarchy flattening and empowerment of professional employees. Unfortunately, loose controls have led to several recent scandals in the banking and investment trade. The most recent view is that there must be a learned tradeoff between controls and empowerment.

>>1071438
Free to Choose is
a less abstract and more concrete book.
Readers of
Capitalism and Freedom
will find here a fuller de-
velopment of the philosophy that permeates both books—here,
there are more nuts and bolts, less theoretical framework. More-
over, this book is influenced by a fresh approach to political sci-
ence that has come mainly from economists—Anthony Downs,
ix
x
FREE TO CHOOSE: A Personal Statement
James M. Buchanan, Gordon Tullock, George J. Stigler, and
Gary S. Becker, who, along with many others, have been doing
exciting work in the economic analysis of politics.
Free to Choose
treats the political system symmetrically with the economic sys-
tem. Both are regarded as markets in which the outcome is
determined by the interaction among persons pursuing their own
self-interests (broadly interpreted) rather than by the social goals
the participants find it advantageous to enunciate. That is implicit
throughout the book and explicit in the final chapter.
The TV series covers the same topics as this book: the ten
chapters of the book correspond to the ten programs of the TV
series and (except for the final chapter) bear the same titles.
However, the TV series and the book are very different—each
true to its own character. The book covers many items that the
ti
me constraints of the TV programs made it necessary to omit
or allude to only briefly. And its coverage is more systematic and
thorough.

>>1071441
We were induced to undertake the TV series in early 1977 by
Robert Chitester, president of PBS station WQLN of Erie, Penn-
sylvania. His imagination and hard work, and his commitment to
the values of a free society, made the series possible. At his sug-
gestion,
Milton presented between September of 1977 and May
of 1978 fifteen public lectures before various audiences followed
by question-and-answer sessions, all of which were videotaped.
William Jovanovich committed Harcourt Brace Jovanovich to the
marketing of the videotapes and provided a generous advance to
help finance the videotaping of the lectures, which are currently
being distributed by Harcourt Brace Jovanovich, Inc. The tran-
scripts of the lectures served as raw material for designing the
TV programs themselves.
Before the lectures were completed, Bob Chitester had suc-
ceeded in obtaining sufficient financial support to permit us to
proceed with the TV series. We selected Video-Arts of London
as the best group to produce it. After months of preliminary
planning, actual filming began in March of 1978 and was not
completed until September of 1979.
Anthony Jay, Michael Peacock, and Robert Reid of Video-
Arts played a key role in the initial design of the series and an
i
mportant supervisory role thereafter.

>>1071439
irrelevant m8 irrelevant to the question at hand.

>>1071446
>>1071423

Answer question.

>>1071423
you are missing the point of what money is. what is the INHERENT WORTH of a $20 bill?

nothing much.

there's nothing inherently worth $20 about a 20 dollar bill.

it's merely the community agreement on the shared meaning of arbitrary symbols.

The blockchain is far more immutable than any government and the blockchain cannot arbitrarily decide that I don't get my $20

the blockchain will always be there, the government wont always be there.

>>1071446

the question at hand would be? I'm currently asking myself why you had to post so much shit

>>1071450
because i know you lazy close minded fucks wont read the damn link i posted.

>>1071450
if you read the link you will no longer have a fuzzy view about money. it's like that "aha" moment you kow. oh shit someone just explained a great truth to me that I didn't see before. Why doesn't everyone know this already? you know? one of those moments.

>>1071453
I've actually started reading all three of your shitty links but then you started shitposting

>>1071449
Read this again for fucks sake and understand.
>>1071347

So your saying there is no inherent value in ETH then? Yes? But no other currency has any worth either so it doesn't matter, that's your argument correct?

>>1071453
Because it's shit, unbelievable conspiracy theory, tinfoil hat shit.

>>1071450
http://szabo.best.vwh.net/

read it and it will answer the question "what is ETH backed by" In fact you will cease to see it as even an interesting or worthwhile question to ask. Instead you will begin to ask "what is government money backed by" and the answer to that is "trust"

"but why can we not just have MONEY without TRUST?" you will ask yourself. well, luckily we have solved the problem of trust using distributed systems. that is what ETH is, it is an implementation distilled from the ideas about trust, money, cryptography and distributed computing security that are contained within the papers here:

http://szabo.best.vwh.net/

and many more like them in similar papers by scientists working on similar subjects.

>>1071459
>cutting off your own nose to spite your face.

just read it, it's really interesting. It's not conspiracy theory stuff Nick Szabo is a respected scientist you pleb

>>1071463
I'm going to take that as a yes, ETH is backed by thin air and the scarcity of that thin air which we hope people will decide should be valuable because their too stupid to see it's worthless.

Feel free to respond with a link to another website that looks like it belongs in an early 90's high school class project.

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>>1071472
no. you can take it as a no actually. just read the damn link and be educated for once in your miserable goddamn life

>>1071476
Right after you read Basic Economics.

Sorry your going to lose all your money in ETH. Hopefully you learn something from the experience.

>>1071472
I'll email Nick Szabo, genius, scientist, polymath and probably at this point multimillionaire and ask him to update his 90's era homepage because it isn't easy enough to digest for some dense fuckhead on 4chan

How's my ETH pump and dump going.

See my fellow shills are doing a decent job of maintaining the hype.

Let's keep this shit going, I have a stake.

>>1071480
i already know basic economics. basically I'm here to tell you that most of the economics you think you know or that you learnt at school is about to become deprecated.

This will be the future, smart contracts, blockchain technology. you will be like the indians still using beads and necklaces for money in an age of double entry accounting and the telegraph.

you will either adapt or be swept away by the progress of science.

TELL ME HOW MANY SEASHELLS BUYS A BIGMAC?? HOW MANY??

>>1071481
>Nick Szabo

How much bit gold did you own?

>crypto currency will last forever
>sites a guy who's currency lasted a couple of months as a guru

Just stop.

HOW MANY TALLY STICKS BUYS A BIG MAC? #WAIT YOURE TELLING ME YOU DONT ACCEPT SEASHELLS AND TALLY STICKS IN MCDONALDS??? HAVEN'T YOU READ BASIC ECONOMICS?

>>1071485
BITGOLD WAS SHUT DOWN BECAUSE IT RELIED ON CENTRALISED SYSTEMS BITCOIN SOLVED THAT PROBLEM ELEGANTLY.

>>1065342
>0.01BTC by the weekend!
>ETH currently crashing

>>1071490
>solved elegantly
>by someone else

I'm going to die laughing. Enough for me.

Keep shillin that imaginary money. I'm sure it will pay off.

>>1071496
YOU ARE ONE DENSE MOTHERFUCKER IF YOU CAN'T SEE THAT "SATOSHI NAKAMOTO" IS A PSEUDONYM FOR "NICK SZABO"

I just recieved ANOTHER spam PM in reddit by a 1-post account shill. The ETH bagholders are panicking hard. They want to get that last pump before ETH gets deprecated by sidechains.

this whole situation is like a kids table version of trading for neckbeards with under a hundred dollars to spare. That's me, so I'm in. Very surprised the leading currency isn't called chickentendyCoin

>>1071614
kek. I put around 0.25 BTC in ETH just to be along for the ride. Giving it all of my keks, at least Vitalik will be able to buy food. kekekekeke

>>1071500
Not this retard again...

Holding $2000 in ETH.

My plan was to buy and forget for the next months.

Should I hold or get out while I can? I bought in at around a dollar.

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>>1071674
Forgot my picture

>>1071674
>>1071677
You bought in at around a dollar? id fuckin sell and get the couple grand dude. i think its at 2.25 right now.
Unless 2 grand isnt that much to you. It is to my broke ass though.

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>>1071674
Sell it fucking all holy christ

>>1071577
Lol u mad that just one ETH supporter can hack reddit and spam anyone they like. Oh, why hasn't anyone ever achieved that in the history of reddit? Is it because ETH atttracts the elite hackers. LOL,

Don't war with us plebian BTC owner we will crush you. we will crush reddit and if nescessary we will crush 4chan too. We will crush the whole internet if it comes to that.

Ethereum uber alles

>>1071674
Dont listen to these tards this would be the equivalent of selling BTC for $3

>>1071645
YOURE THE RETARD. YOU GET ALL YOUR FALSE INFO FROM BITCOINTALK AND r/theymos

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>>1072121
>>1072123
>>1072124
ass-blasted eth-fag detected

ETH faggots are just bums who missed the bitcoin train and are hoping for their next big chance?
Putting so much faith in zeros and ones, good luck lads

>>1072127

>Putting so much faith in zeros and ones

What is the internet.

You're the assblasted ones who invested in BTC at $600 and then whatever 2014 era shitcoin you got tricked into buying.

Look how cheesed off you are at ethereums success. It's pretty self evident you are jelly as fuck

Ethereum will show you all how it's done. Don't invest at your own financial peril.

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>>1072146
sucks your coin is crashing bro I hope you got out

>>1073227
>crashing

Now you sound like a nocoiner. Please are you content to sink that low?