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Bitcoin API: Is Money Becoming Programmable?

Elie
December 09, 2013

Bitcoin API: Is Money Becoming Programmable?

A look at Bitcoin as a protocol.

Elie

December 09, 2013
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  1. Headline should look like this Wanted to update my last

    talk “API as a product"
 But I got distracted
  2. Headline should look like this Let’s start with the conclusion

    "Any competent programmer has an API to cash, payments, escrow, wills, notaries, lotteries, dividends, micropayments, subscriptions, crowdfunding, and more."
 
 Naval Ravikant (Founder @AngelList)
  3. Headline should look like this Bitcoin timing is excellent •

    "Why store my money with strangers who may make crazy bets on derivatives (JPMorgan)? ! • Why keep my money in a bank that could threaten to seize it (Cyprus)? ! • Why keep my hard-earned savings in a currency that could be devalued because of an incompetent government (Argentina)?” ! Chamath Palihapitiya
  4. Headline should look like this Protocol => platform
 Platform =>

    building "entrepreneurs and developers are now building technology on top of Bitcoin to make it more useful, more accessible, and more secure.” Fred Wilson
  5. Headline should look like this The concept "Bitcoin is an

    open source peer-to-peer electronic money and payment network"
  6. Headline should look like this What is money? "any object

    or record that is generally accepted as payment for goods and services and repayment of debts"
  7. Headline should look like this What is a payment? "The

    act of transferring money from one party to another, it’s a transaction"
  8. Headline should look like this Bitcoin is about transactions You

    need to trust the other party right? Well, no longer, thanks to Bitcoin.
  9. Headline should look like this 4 concepts behind Bitcoin transactions

    - Digital signatures - P2P network - Distributed blockchain (ledger) - Proof of work system to prevent double spending => The system doesn’t require trust
  10. Headline should look like this Remove trust = automation No

    more uncertainty or intermediaries: transactions become programmable
  11. Headline should look like this Bitcoin has an Open API

    - Distributed (P2P) - Open Source
  12. Headline should look like this “The Internet is for snacking"

    "simple, focused products that capture an atomic behavior and become compound only by linking in and out to other services"
  13. Headline should look like this Capacity limitations of the block

    chain 7 transactions per second 10,000 transactions per second
  14. Headline should look like this Key feature: "Contracts" "The (Bitcoin)

    design supports a tremendous variety of possible transaction types that I designed years ago. Escrow transactions, bonded contracts, third party arbitration, multi-party signature, etc." Satoshi
  15. Headline should look like this Bitcoin uses a scripting system

    for transactions e.g. "A list of instructions recorded with each transaction that describe how the next person wanting to spend the Bitcoins being transferred can gain access to them."
  16. Headline should look like this Other “contracts" possibilities - Smart

    property - Agents - Distributed markets - The Ripple currency exchange
  17. Headline should look like this Hence the conclusion "Any competent

    programmer has an API to cash, payments, escrow, wills, notaries, lotteries, dividends, micro- payments, subscriptions, crowdfunding, and more."
 
 Naval Ravikant (Founder @AngelList)
  18. Headline should look like this The future of the ecosystem

    now investors buy bitcoins tomorrow, they’ll fund Bitcoin ventures
  19. Headline should look like this Bitcoin Transport Layer API "working

    on the API connecting to the bitcoin client to other transport layers / data back-ends.” (…) "A radio station could transmit the block-chain over short-wave radio so that everyone in the world has access to it. The same API could be used for a program to automatically import the block-chain updates in the Bitcoin software."