1988-ijiri.pdf: “Momentum Accounting and Managerial Goals on Impulses”, Yuji Ijiri (1988-02-01):
Conventional accounting measures wealth W (assets and liabilities) and accounts for its net change, W(t + 1) − W(t), by means of income Δ_W(t), classified into various revenue and expense items. Proposed “momentum accounting” measures income momentum Ẇ = dW/
dt(time rate at which income is being earned at a given point in time) and accounts for its net change, Ẇ(t + 1) − Ẇ(t), by means of impulses ΔẆ(t). Here the impulses, a term borrowed from the momentum-impulse principle in mechanics, are classified into various factors, internal or external to the enterprise, that contributed to the momentum change. If conventional accounting is viewed as focusing on an odometer of a car, momentum accounting is analogous to focusing on its speedometer and attributing the change in its reading to impulses that are judged to be responsible for the change. This paper proposes impulse-based managerial goals as a substitute for currently popular income-based managerial goals, discussing problems associated with the latter that highlights short-term income achievements and that tends to reward management for the momentum created by their predecessors as it is realized as income by the mere passage of time.
2008-nakamoto: “Wei Dai/Satoshi Nakamoto 2009 Bitcoin emails”, Satoshi Nakamoto, Wei Dai (2014-03-17):
Below are 3 emails 2008–2009 between cryptographers Wei Dai & Satoshi Nakamoto; they were quoted in the Sunday Times’s 2014-03-02 article “Desperately seeking Satoshi; From nowhere, bitcoin is now worth billions. Where did it come from? Andrew Smithset off to find Satoshi Nakamoto, the mysterious genius behind the hit e-currency”.
The then-unknown Satoshi Nakamoto contacted Wei Dai, one of the few cryptographers to even dabble in e-currency speculation at the time, for citation details for his draft Bitcoin white paper, and to advertise his ideas. Wei Dai was not particularly interested but told Nakamoto about Nick Szabo’s uncited Bit Gold; in retrospect, Wei Dai interprets this as evidence that Satoshi is not Nick Szabo.
2009-nakamoto.pdf: “Bitcoin: A Peer-to-Peer Electronic Cash System”, Satoshi Nakamoto (2009-03-24):
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.
2011-davis: “The Crypto-Currency: Bitcoin and its mysterious inventor”, Joshua Davis (2013-04-18):
Dept. Of Technology about bitcoin [sic] and its mysterious creator. There are lots of ways to make money: You can earn it, find it, counterfeit it, steal it. Or, if you’re Satoshi Nakamoto, you can invent it. That’s what he did on the evening of January 3, 2009, when he pressed a button on his keyboard and created a new currency called Bitcoin. It was all bit, and no coin. There was no paper, copper, or silver-just thirty-one thousand lines of code and an announcement on the Internet. Nakamoto wanted to create a currency immune to the predations of bankers and politicians. The currency was controlled entirely by software. Every ten minutes or so, coins would be distributed through a process that resembled a lottery. This way, the bitcoin software would release a total of twenty-one million bitcoins, most all of them over the next twenty years. Interest in Nakamoto’s invention built steadily. More and more people dedicated their computers to the lottery, and forty-four exchanges popped up, allowing anyone with bitcoins to trade them for dollars, euros, or other currencies. At first, a single bitcoin was valued at less than a penny. But merchants gradually began to accept bitcoin, and at the end of 2010 the value began to appreciate rapidly. By June of 2011, a bitcoin was worth more than twenty-nine dollars. Market gyrations followed, and by September the exchange rate had fallen to five dollars. Still, with more than seven million bitcoins in circulation, Nakamoto had created thirty-five million dollars of value. And yet Nakamoto was a cipher. There was no trace of any coder with that name before the début of bitcoin. He used an e-mail address and Web site that were untraceable. In 2009 and 2010, he wrote hundreds of posts in flawless English, invited other software developers to help him improve the code. Then, in April, 2011, he sent a note to a developer saying that he had “moved on to other things.” He has not been heard from since. Tells about failed attempts to hack the bitcoin encryption code. Writer tries to deduce Nakamoto’s true identity from clues in his posts and his code. Describes the Crypto 2011 conference of cryptographers, where the writer went looking for Nakamoto. Writer speaks with two possible candidates, Michael Clear and Vili Lehdonvirta, both of whom deny that they are Nakamoto. Also tells about Kevin Groce, who runs a bitcoin-mining operation in Kentucky. Over the summer, hackers targeted bitcoin, and though they were unable to break Nakamoto’s code, they were able to disrupt the exchanges and destroy Web sites that helped users store bitcoins. The number of transactions decreased and the exchange rate plummeted. Commentators predicted the end of the currency. In September, however, volume began to increase again, and the price stabilized, at least temporarily.
2014-mccaleb: “2014 Jed McCaleb MtGox interview”, Jed McCaleb (2014-02-16):
2015-andresen.pdf: “What Satoshi Did Not Know”, Gavin Andresen (2015-07-16):
[Invited keynote at International Conference on Financial Cryptography and Data Security 2015]
When Bitcoin was invented six years ago (cf. ), Barack Obama had just been inaugurated president and Lady Gaga had just released her first big single. If you are 20 years old, that probably seems like forever ago. If you are 48 like me,that seems like not all that long ago. I first heard about Bitcoin in 2010, and was attracted to it because it combined economics, peer-to-peer networking and crypto in a really interesting way.
I’m going to talk about what we have learned over the last six years. Satoshi knew a lot, but he wasn’t omniscient—I think there were a lot of things, both big and small, that he didn’t know when he was inventing Bitcoin. I will finish by talking about some things that I think we still do not know.
[What he did not know:
- would Bitcoin bootstrap? Would it be used for anti-email spam?
- was it legal?
- how people would attack Bitcoin for no particular reason, with silly things like sending spam transactions back and forth
- formal cryptography like Schnorr or Lamport signatures, or cutting-edge cryptographic research on anonymity (or future developments in homomorphic encryption & SNARKs)
- formal validity of transactions: validity and semantic meaning
- how to scale Bitcoin to large numbers of transaction]