Ep. 42 That Episode with Paul Sztorc In It

In this episode of the Unhashed Podcast: Mario is still gone but we have something that is obviously better (cuz what could be worse amirite?) Paul spork is on the show today and he’s here to talk peer-to-peer oracles and prediction markets, but can you predict what his opinion will be on whether or not dogecoin is a sidechain of litecoin?

Weekly News Wrap Up:

  1. Crypto prediction market Veil is closing up shop.  The platform was a somewhat more user friendly front end to Augur, but due to low demand and “a difficult onboarding process” the team is moving on to other things. Now, an ICO funded company closing down isn’t a surprise to anyone, but the fact that it’s centered around prediction markets is something to talk about.

    1. Paul, what got you interested in prediction markets and is that still something that motivates the direction of your work?

    2. How does drive chain fit into prediction markets?

    3. Do you see it as possible for a prediction market to ride on top of BTC

      1. if so, what is your best guess on the time horizon?

      2. What needs to get added to BTC to allow it to happen?

  2. Blockchain validation platform VeriBlock produced almost 25% of on-chain Bitcoin (BTC) transactions in 24 hours July 14, the company confirmed on social media. VeriBlock, which uses its own ‘Proof-of-Proof’ protocol to validate blockchains using Bitcoin’s computing power, launched its mainnet implementation in March. The service allows miners to compete for block rewards on altcoin blockchains, while tapping into Bitcoin’s superior levels of security due to the computing power sustaining its Proof-of-Work algorithm. The roughly one-quarter figure signalled by VeriBlock this weekend equates to around 68,000 transactions. Veriblock had previously generated higher proportions of Bitcoin traffic. According to statistics from monitoring resource and wallet provider Blockchain, however, the more recent figures appeared to coincide with a sharp spike in the average block size on the Bitcoin blockchain to over 3MB. (source)

  3. In a show of open-source solidarity, the trustless Bitcoin payment processor BTCPay Server is launching a crowdfunding campaign for the privacy-preserving Tor browser, a fundraise which, its benefactor hopes, will demonstrate the impact of bitcoin-based fundraising and the community’s support for open-source initiatives. BTCPay Server began as a project to offer people a self-hosted, feeless alternative to popular crypto payment processors like BitPay. Its creator, Nicolas Dorier, actually forked the open-source payment portal from BitPay in 2017 with the expressed purpose of obsolescing its progenitor. (source)  

  4. President Donald Trump finally broke his silence on Bitcoin, saying he is “not a fan of Bitcoin and other Cryptocurrencies, which are not money and whose value is highly volatile and based on thin air.” He then went on to cite Washington, D.C.’s most referenced use case for cryptocurrency (drugs and “other illegal activities”). Bitcoin then rallied 3 percent following Trump’s comments, and everyone said Trump accidentally pumped Bitcoin. Then Bitcoin dumped to 10k, and everyone said Trump caused the dump. (source)

  5. The developers from Kriptode have decided to make use of Lightning payments in order to integrate quick and private text messaging. LNSMS.world and Receive SMS don’t ask you for any kind of identification, allow you to pay for every use of a common phone number and grant you the best kind of confidentiality you can get when using the services of phone operators. The principle is very simple: You basically rent a fixed phone number with which you send SMS messages for 700 satoshis/text, or get a new number from one of the seven different countries served at a cost of 40,000 satoshis. (source)

  6. Bitcoin (BTC) Lightning Network nodes have claimed 2.2 BTC in “justice transactions” to deter potential thieves, a BitMex Research analysis revealed on July 15. A so-dubbed “justice transaction” is a punitive mechanism involving the closure of a lightning channel that is suspected to be attempting theft. As the report outlines: “[B]y design, when a thief attempts to steal funds on the lightning network, if caught, they do not only lose the money they tried to steal, they lose all the funds in the relevant channel. This ‘punishment’ is expected to act as a deterrent and is sometimes called ‘justice’. BitMEX researchers claim to have potentially identified 241 justice transactions since the second-layer network’s in December 2017 — all the while noting that there is a possibility the data includes false positives and that other, more robust tools exist to identify such transactions than the basic search methodology used for their report. (source)

Listener Questions:

Cameron asks, “If BTC wasn't around, what would each of you be doing, dream jobs as kids?”

Price Analysis:

Number go sideways

Shout Outs: 

Bryan: Joe Kernen and the hosts of Squawk Box on CNBC present the Bitcoin thesis in 2 min.   
Ruben: The Elephant in the Brain

Colin aulds