Daniel Larimer, EOS and infinite scalability

In a recent tweet, Daniel Larimer, CTO of Block.one, the company behind the development of EOSio and the EOS blockchain, shared his idea about an alternative system to increase scalability and make transactions private.

Checkout my latest blog post talking about the potential of creating infinitely scalable and completely private digital cash and the open source release of a proof of concept implementation. It can be leveraged by #EOS, #BTC, and just about any chain. https://t.co/Q9RiPIAi6F

– Daniel Larimer (@bytemaster7) January 7, 2021

The Scalability of Bitcoin

In the post, Larimer starts from a problem intrinsic to any blockchain technology, namely scalability, which is the parameter that allows for more transactions to be processed per second.

Larimer looks at bitcoin and the possibility of dividing it into many satoshi, something that is only feasible in theory but that the fees make impossible. If we wanted to move Immediate Edge units of satoshi between one address and another, it would cost more in fees than anything else, making it effectively indivisible in satoshi.

Larimer’s idea for greater scalability

So here’s Larimer’s solution: transfer ownership of the private key by passing on the entire amount contained in it without paying a fee in the process. For example, if we were to transfer 2,000 satoshi to a person, we could give him the private key of the address.

To do this, Larimer envisages using a hardware system that allows for a separate environment that is inaccessible from the outside. This environment could only be used by a specific user.

Take, for example, Apple’s password protection system that we find on its devices. This is a secure environment that only the user could access through passwords and/or biometric solutions.

In the case of the blockchain, the process would involve inserting the private key into this secure environment, encrypting it and sending it to the sender.

Afterwards, third-party applications would verify that the private key has been deleted by the sender and that only the recipient is in possession of it.

Obviously, Larimer takes into account that this system is not perfect and that with advanced tools, such a private key could be extracted, but we are still talking about extreme cases and do not represent the norm for users. So, at macro level, whoever sends and receives the private key would have no idea and no way of recovering it.

Mojey already exists

This could certainly be an interesting idea, if it weren’t for the fact that a similar solution already exists and is called Mojey (open code and available to all). It is a system that uses the transfer of tokens via Bluetooth and via messages, and in addition does not require an Internet connection. Among other things, it uses the very system developed by Apple with the Whitebox crypto.

However, it should be noted that by using Mojey, the possibility of backing up the private key is lost, so in the unfortunate event that the system fails, there is no way to recover the crypto inside.

However, the advantage of this system is that it eliminates the cost of transactions, since it is on par with a message or file sent virtually instantaneously and without limits.

Finally, we know that Larimer himself is working on something like this and is very excited to reveal it.

Block.one is in fact working on an ‚offchain‘ system for transferring the private key to which an ‚onchain‘ address containing one or more tokens is linked.

Knowing, among other things, that Block.one has invested in a Bitcoin mining company and Block.one itself owns hundreds of thousands of BTC, these onchain addresses will most likely contain BTC.

A Bitcoin bet that paid off – There is no shortage of fantastic life stories to tell among those interested in Bitcoin (BTC), from its earliest years of existence. This is the case of a user of the Reddit social network, who announces that he fell into Bitcoin in 2011, with all the emotional roller coasters that this implies.

5 BTC removed to make room for a video game

You may have followed our incredible stories from the Taihuttu family or this Japanese restaurateur , who bet on Bitcoin as early as 2013. It had already changed their lives . But today is the story of an even earlier early adopter of the cryptocurrency created by Satoshi Nakamoto.

On Reddit, user Graphene_Hands tells us, in a long post , how his adventure with the king of cryptos began:

“I first heard about Bitcoin in 2010, on one of the many forums I have frequented in my libertarian internet circle . It was an interesting concept for me, but I didn’t pursue it at all [at first]. “

A few months later, the same year, he briefly had fun creating a Bitcoin wallet , to collect a few cents (at the time) of bitcoins via a faucet : around 5 BTC , he said (i.e. the trifle of … 170,000 dollars today).

But he quickly gave up on this first experience, removing the wallet (and its bitcoins) forever to “probably make room for a Steam video game” .

2011: the first purchase and mining

It was a little later, in May 2011 , that our friend fully converted to Bitcoin. At that time, he explains that he spent all his free time studying Satoshi Nakamoto’s creation:

“After a week or two of obsessing and reading about Bitcoin, I decided it was the most important invention since the internet – the most perfect form of money ever created. One of the most ingenious systems ever designed by man (…) ”

At that time, the Mt Gox platform was a must-have for buying bitcoin for fiat money. He wanted to invest $ 500 to try to get some BTC, at $ 3 each .

Problem: By the time his money got to Mt Gox, our poor friend saw bitcoin keep rising . So he got caught in FOMO (fear of missing out on a good deal). So, 3 days after he initiated his money transfer, he was finally able to jump on Bitcoin (and too bad if its price was then on a historic high ). He bought 50 BTC at $ 10 apiece .

He is still announcing HODLer today those first BTCs (which he thank goodness removed from Mt Gox before the platform collapsed ), worth $ 1.7 million as of this writing. lines. It leaves you dreaming!