31–40 of 237 posts
A crazy thing with Taproot is: A company could create a virtual bank to handle all transfers with its suppliers by doing a single onchain transaction. From the outside, it would look like a normal "Someone sent some coins from address A to address B" transaction. But internally, a key needed to spend the funds is only valid if the company and all of its suppliers sign it. This means every time there is a transaction…
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"And all of the transaction were free", Wait? Since when are transactions free and instant? Is that part of this upgrade? The only costs are with the "bank transaction"?
Parent talks about the „Lightning Network“ — a Layer 2 scaling solution for Bitcoin. Beware: I am still a crypto noob but I am still going to try to explain how I understood the system so far. Edited: Minor terminology and typos. Roughly speaking the Lightning Network works similar to a „current account“ that businesses have between each other but does not require the actors to trust each other. The parties initiate…
Parent talks about the „Lightning Network“
So is the "BMW and its suppliers" network I imagined. But this network is simpler and more customized to the needs of this particular use case.
Of course using the LN would be a viable alternative to a custom solution.
A crazy thing with Taproot is: A company could create a virtual bank to handle all transfers with its suppliers by doing a single onchain transaction. From the outside, it would look like a normal "Someone sent some coins from address A to address B" transaction. But internally, a key needed to spend the funds is only valid if the company and all of its suppliers sign it. This means every time there is a transaction…
BMW and it's suppliers have zero problems moving money today.
One of the most interesting things in this experiment was the speedy trial imo. We now have an agreed way to change/improve consensus rules. It's very difficult to get a handful of people to agree on something, let alone all the different participants in this global/borderless system.
That's because bitcoin is so centralized these days, that you can get all the people that matter in a room and hash things out. Note how half of the Bitcoin network nodes don't support taproot yet, but it's irrelevant. The few nodes that matter do support it.
Citation badly needed.
For taproot to rollout, you need wallet providers, exchanges, nodes and miners to agree. There are hundreds/thousands of different participants in each one of these categories across the world. Specifically, 90% of nodes need to signal for it.
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Parent talks about the „Lightning Network“ — a Layer 2 scaling solution for Bitcoin. Beware: I am still a crypto noob but I am still going to try to explain how I understood the system so far. Edited: Minor terminology and typos. Roughly speaking the Lightning Network works similar to a „current account“ that businesses have between each other but does not require the actors to trust each other. The parties initiate…
Parent talks about the „Lightning Network“ I was not talking about the Lightning Network in particular. The LN is a system that does settlement on the Bitcoin blockchain. So is the "BMW and its suppliers" network I imagined. But this network is simpler and more customized to the needs of this particular use case. Of course using the LN would be a viable alternative to a custom solution.
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BMW and it's suppliers have zero problems moving money today.
How do you know?
The complains are about the "buy now pay 90 days later" part, not about the actual money transfer.
A crazy thing with Taproot is: A company could create a virtual bank to handle all transfers with its suppliers by doing a single onchain transaction. From the outside, it would look like a normal "Someone sent some coins from address A to address B" transaction. But internally, a key needed to spend the funds is only valid if the company and all of its suppliers sign it. This means every time there is a transaction…
BMW and it's suppliers have zero problems moving money today.
https://www.techtimes.com/articles/263185/20210721/elon-musk...
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BMW and it's suppliers have zero problems moving money today.
Tesla didn't like paying banks to store its money in Europe via negative interest rates, so they moved in into Bitcoin. https://www.techtimes.com/articles/263185/20210721/elon-musk...
Tesla also holds bonds and other stuff that pays a dividend.
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That's because bitcoin is so centralized these days, that you can get all the people that matter in a room and hash things out. Note how half of the Bitcoin network nodes don't support taproot yet, but it's irrelevant. The few nodes that matter do support it.
> That's because bitcoin is so centralized these days Citation badly needed. For taproot to rollout, you need wallet providers, exchanges, nodes and miners to agree. There are hundreds/thousands of different participants in each one of these categories across the world. Specifically, 90% of nodes need to signal for it.
> Specifically, 90% of nodes need to signal for it.
Wrong, 90% of mined blocks need to signal it, not 90% of nodes. Big difference:
> at least 90% of the blocks mined in any of the designated two-week difficulty periods "signal" their support for the upgrade, then the activation process can begin. To be more precise: 1,815 out of 2,016 blocks mined within a period have to include a little piece of encoded information that indicates that the miners who mined those blocks are in favor of the upgrade.
https://www.coindesk.com/tech/2021/06/12/locked-in-bitcoins-...
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I skimmed this but it seems pretty heavy motivated reasoning. > However, despite being extremely energy intensive, per unit power consumed, Bitcoin mining is probably one of the most environmentally friendly activities in the world. This is due to the unique flexibility with respect to where the power is required. This means miners often choose renewable power due to the low stable costs or miners are able to use oth…
> What % of energy used in bitcoin mining is from coal or other fossil fuels? > What's the delta amount of fossil fuels burned compared to bitcoin not existing? How does that compare to other ways of sending money digitally? How would it be possible to answer any of those questions reliably when any individual could set up a miner at their home?