Hyperloop: A New Concept by Lightning Aiming to Solve Liquidity Problems

To make managing liquidity as efficient as possible, Lightning Labs has developed a proposal called “Hyperloop,” a concept that aggregates swaps so that individual transactions don’t occur on-chain with individualized signatures and outputs.

The post Hyperloop: A New Concept by Lightning Aiming to Solve Liquidity Problems appeared first on Bitcoin Magazine.

This Bitcoin Startup Is Working on Free Speech Alternatives to Patreon

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Patreon has been making the case for censorship-resistant money increasingly apparent.

The platform allows members to contribute to artists or creators that they support. These contributions are made via standard payment methods like credit cards.

Over the past few months, there has been an increase in public outcry over multiple separate instances where Patreon has removed creators from its platform. BitPatron, a Bitcoin-friendly version of the website, has recently come to the surface as a possible alternative.

A Series of Bans

One of the first well-known bans dates back to August 2018 when James Allsup, a far-right political commentator, was banned from the funding platform.

In December, a wave of media attention ensued when another alt-right activist and spokesperson, Milo Yiannopoulos, was shut down almost 24 hours after he had set up an account to fund his “magnificent 2019 comeback tour.” Patreon’s reasoning for removing Yiannopoulos’s account was due to his past association with the Proud Boys, a violent, far-right political group (whose founders were kicked off of Facebook and Twitter recently as well).

Only a day after Yiannopoulos’s ban, British YouTuber Sargon of Akkad had his account removed for violating Patreon’s hate speech guidelines by making racist and hateful remarks toward minority groups.

Another notable example occurred when Patreon had to close an account against their will when Mastercard required them to remove the account of Robert Spencer, a political activist and author of several “counter-Jihad” books.

In response to Spencer’s removal and other account bans, Jordan Peterson, professor of psychology at the University of Toronto, and David Rubin, creator and host of The Rubin Report, announced they were leaving Patreon because of the way that the platform has handled these situations.

Bitcoin and BitPatron

Bitcoin is a censorship-resistant currency. One of its many valuable attributes is that nobody can tell anyone what they can or cannot do with their bitcoin. As long as someone is able to receive bitcoin (which, by design, is very easy to do), no transaction from anywhere can be stopped.

BitPatron is a direct response to Patreon’s proclivity to censor content on the platform. It will offer a similar crowdfunding platform as its predecessor, but will allow users to support creators with bitcoin.

By using Bitcoin and Lightning as payment methods, BitPatron expects to offer lower fees than its competitor. BitPatron’s payment processing system is built on top of BTCPayServer, an open-source payment processor for Bitcoin and Lightning. According to the website, there is no minimum pledge amount, compared to Patreon’s $1 minimum. Total fees for the platform are 4 percent, much lower than Patreon’s 10 percent.

The platform’s co-founder believes that, more than just offering users a lower fee competitor to Patreon, BitPatron’s focus on bitcoin is about free speech.

“Patreon publicly admitted that Mastercard required them to remove accounts. This is where Bitcoin and BitPatron come in. Bitcoin is censorship-resistant, free-speech money, and BitPatron is taking a leading role at building a Bitcoin-based, censorship-resistant platform that gives the power back to the community where it belongs,” Vin, co-founder of BitPatron, told Bitcoin Magazine.

But BitPatron is still not a completely, “anything goes” platform yet. A spokesperson for the company told Bitcoin Magazine: “For now, we are planning to monitor and block only in extreme cases, such as illegal pornography, threats or calls for violence, or terrorism-related content.

He added that ideally, in its purest form there would be no centralized control, but there’d be some sort of decentralized algorithm to perform the necessary checks. “That’s why we are considering blockchain platforms that would allow users to self-host their content and be responsible for it.

“We want to remain a platform for every voice, which is, in our opinion, a far greater task than monitoring ‘hate speech.’ We therefore need to make sure that the platform remains interesting for voices of the entire spectrum.”

Who Is It For?

BitPatron will first allow podcasters and video creators to offer exclusive content to their supporters, and it also has plans integrate with Discord groups to support chat rooms.

In the bigger picture, a platform like BitPatron could support content creators from all walks of media. It is a platform where people receive financial support from others all across the world in a seamless and instant way with a censorship-resistant currency.

According to the platform, the public beta will go live next month.

This article originally appeared on Bitcoin Magazine.

Educating the Next Wave of Bitcoin Developers

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Bitcoin is an open-source protocol that anybody can interact with. It is getting attention and attracting participation in different ways, whether it is through speculation, investing and sending money, all the way to contributing to what’s underneath the hood. The entire Bitcoin repository is on GitHub, inviting any developer to see the protocol’s code and perhaps contribute toward solving existing problems if they can.

A noteworthy fact, however, is that the pool of developers today is quite small.

“It’s not an easy field to get into,” Jimmy Song, author of Programming Bitcoin and instructor at Programming Blockchain, told Bitcoin Magazine. “Interestingly enough, the thing that makes Bitcoin hard to get started on is the cryptography, and that’s hard because the math is not familiar to developers. Specifically, finite fields and elliptic curves.”

Some would argue, though, that the small number of developers in Bitcoin today is not too small. In fact, it’s perfectly fine at the size it is for such a new industry.

“Bitcoin has only been around for 10 years, and it only started getting a lot of mainstream attention in 2017, so it hasn’t been a long time to build up an ecosystem of developers,” said John Newbery, a Bitcoin Core developer and Bitcoin engineer at Chaincode Labs.

“It’s something that we hear a lot, that it is difficult to find experienced Bitcoin engineers … [Bitcoin] really only started getting mainstream attention two or three years ago, so it’s as expected. We’re doing everything we can at Chaincode to widen and deepen that pool.”

Even outside of developer knowledge, there are many aspects of various fields of expertise that require a significant level of understanding in order to grasp Bitcoin all around. Since there are so many paths that need to be explored, the question is: Where do you start?

It is important to be realistic and realize that a complete understanding of the digital currency will always be unreachable.

“I don’t think it’s possible to understand all aspects of Bitcoin,” Newbery said. “The frontiers are continually being pushed forward so having ‘proper education’ that covers the entire Bitcoin space is a constantly moving target.”

Perhaps a better approach to answering this question requires going back to the very first Bitcoin educator himself, Satoshi Nakamoto. How did Nakamoto introduce something like Bitcoin for the very first time in his white paper so that as many people as possible could understand?

Nakamoto seems to have realized that the best way is to break down concepts separately, explain why they do or don’t work individually, and then tie all the strings together at the end.

A Few Examples in Action

BUIDL Bootcamp

One such solution that presents a similar approach has presented itself in the form of Justin Moon’s BUIDL Bootcamp, a grassroots effort by Moon that aims to educate “HODLers” about Bitcoin beyond the basics. Similar in structure to Bitcoin’s white paper, Moon’s four-project curriculum, starts with “How Bitcoin Works.” The first BUIDL Bootcamp class is already halfway complete.

Similar to how the white paper first introduces transactions, then explains timestamp servers and proof-of-work systems before putting all the pieces together, Moon’s curriculum takes a progressive, constructive approach.

Project 1 starts with students making what’s called a “PNG coin.” This is not a coin at all, instead it is a .png photograph of a paper signature with a message, like “I, Alice, issue 10 coins to Bob,” with a signature below it. Just as Satoshi Nakamoto introduces each of his concepts and proceeds to explain how alone they are subject to failure, Moon then shows his students how, with such a simple .png concept, it is easy to double spend transactions.

Eventually, the course introduces digital signatures to replace these image coins and introduces further concepts in a gradual fashion to teach similar lessons about why Bitcoin was built the way it was. All of this, is also only in project one out of four.

One of the most surprising things about the bootcamp is the extent to which people who had little programming experience were able to follow the course.

“We’ve had a few people that had no prior programming experience besides an introductory programming course, like Code Academy, and we’ve had them get all the way through building an 800-line ‘mini bitcoin’ that has all the main features,” said Moon.

Chaincode Labs

The efforts at Chaincode are working toward a similar goal of educating about Bitcoin. Also a bootcamp-style learning course, Chaincode accepts a select number of applicants to go through a multiple-week course about Bitcoin-related technologies. Their developer-focused initiatives educate about the entire Bitcoin system, with residencies covering topics from the actual protocol to second-layer technologies like Lightning.

“We’ve done two versions of the residency focused on Bitcoin Core and Bitcoin, the protocol. And then we did the Lightning residency last year,” said Newbery.

Adam Jonas, who leads the education initiative at Chaincode, added, “We’re also planning a little bit longer residency this summer, a three-month residency, which is much longer than anything Chaincode has run in the past. It is probably an opportunity to sort of fuse both the lecture series and onboarding efforts that we’ve done, along with some project-based work. So hopefully getting the best of both worlds.”

This article originally appeared on Bitcoin Magazine.