Cryptology ePrint Archive: Report 2018/400 Date: submitted by
2018-05-01 Author(s): Nicholas Stifter, Aljosha Judmayer, Philipp Schindler, Alexei Zamyatin, Edgar Weippl
The term Nakamoto consensus is generally used to refer to Bitcoin's novel consensus mechanism, by which agreement on its underlying transaction ledger is reached. It is argued that this agreement protocol represents the core innovation behind Bitcoin, because it promises to facilitate the decentralization of trusted third parties. Specifically, Nakamoto consensus seeks to enable mutually distrusting entities with weak pseudonymous identities to reach eventual agreement while the set of participants may change over time. When the Bitcoin white paper was published in late 2008, it lacked a formal analysis of the protocol and the guarantees it claimed to provide. It would take the scientific community several years before first steps towards such a formalization of the Bitcoin protocol and Nakamoto consensus were presented. However, since then the number of works addressing this topic has grown substantially, providing many new and valuable insights. Herein, we present a coherent picture of advancements towards the formalization of Nakamoto consensus, as well as a contextualization in respect to previous research on the agreement problem and fault tolerant distributed computing. Thereby, we outline how Bitcoin's consensus mechanism sets itself apart from previous approaches and where it can provide new impulses and directions to the scientific community. Understanding the core properties and characteristics of Nakamoto consensus is of key importance, not only for assessing the security and reliability of various blockchain systems that are based on the fundamentals of this scheme, but also for designing future systems that aim to fulfill comparable goals.
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Hope all is well guys. Our third Intelligence report is out. Again, thank you all very much for the feedback on our last Bitcoin Trading Intelligence newsletter. We hope we were able to address some of the issues from last time. Feedback and any other comments are welcome. If you like this and want more, you can now reserve your spot in our Bitcoin Trading Intelligence platform. We haven't figured out pricing for the course yet. I would appreciate if you guys took a look at the Bitcoin Trading Intelligence platform and let me know what you think is a fair price for this. BTCVIX is our trader and with his real time alerts subscribers have a chance of making some serious money Bitcoin in August
August has witnessed the rapid devaluation of Bitcoin, accelerated by fundamental data and augmented by technical glitches. The possible forking on the minds of the Bitcoin community, the repeated blows following the Mt Gox disaster and the effects of the BitLicense have cast a bearish shadow over the market which resulted in a month that managed to breach significant lows.
“After the stunning price action of the last couple weeks we have seen BTCUSD grind up the traders seeing patterns that aren’t there, complete chopfest. Rather than whittling away hard earned profits remember NO position IS a position — just need to know when them time is. Just like me, many other traders in the Whaleclub believe that sometimes not trading is a right decision and people should appreciate that.” BTCVIX, Professional Bitcoin Trader
Post the flash crash last week, the market has tested 200 and has been on a correction curve ever since. With many countries calling for increased regulation, let’s see how market emotions fared last week.
Nigeria’s central bank has called for Bitcoin regulation in order to stop money laundering and avoid international penalties. Dr. Okwu Nnanna the governor of the financial system at Nigeria’s Central Bank has cited that cryptocurrencies have no borders and hence are an easy channel for money laundering and thus there is a need to monitor them. AB 1236, a proposed California law to regulate virtual currencies has faced lot of opposition from industry lawyers.
It has now been amended saying companies that take ‘full custody’ of the currency are to be licensed and the bill is being backed by other major companies who are mostly made up of software developers. Another important country to look out for whose ecommerce demographic can play a pivotal role in the development of bitcoin system would be India.
With major companies like Microsoft and IBM backing bitcoin based startups, the Governor of RBI has made it clear that cryptocurrencies are being observed for now and would be regulated in the future.
The collapse of Mt Gox has racked up many controversies and the latest one, the arrest of Mark Karpeles, is over the issue of a fresh warrant for allegations that he has pocketed over $2.6 million from the company funds of Mt Gox. While Japan’s cryptocurrency scenario is restructuring for the best after the impact of Mt Gox, the Japanese Government has decided to regulate cryptocurrencies so as to avoid the risk of money laundering and terrorist funding.
How these coordinated regulations among different countries would affect/aid the growth and development of bitcoin is to be seen. While the ‘one-off’ depreciation of the Chinese Yuan has beaten the stock markets down in the USA and China, BTC China’s Greg Wolfson has remarked that the corresponding dip in prices in bitcoin is not devastating and in the times of uncertainty just like Gold, people are turning towards bitcoin as their safe haven.
The immediate correction after the dip is being seen as people hedge their positions in bitcoin.
Meanwhile on the Korean front, things are looking bright with a new exchange traded fund (ETF) tracking the value of bitcoin planned for launch on Korea Exchange next year.
This news coupled with Korean Bitcoin Exchange ‘Korbit’ announcing the launch of Bitwire, which allows people to send money using Bitcoin to any Korean bank account in less than two hours, the bitcoin ecosystem in Korea is trending towards a positive position.
On the European continent, the sentiment is consolidating with the launch of Mycelium Gear with Cashila’s API being integrated, this enables merchants to accept bitcoins that are automatically converted to Euros.
The financial crisis in Greece is here to stay for some time and bitcoin services providers like Cubit are trying to do what they can to help. Cubit in coordination with BTC-Greece is helping Greek citizens move their money out of the country to business partners and suppliers.
The aim is to try and work around the various capital controls that have been enforced in Greece in the hope that some private businesses can get back up and running once more. They have plans to install 1000 ATMS in order to make the this work. Even in the Black Sea Basin there are more than 13,600 locations where you can access bitcoin related stores, ATM and service providers.
On a corporate front, things have been picking up pace with Intel expressing its intention to unify the Internet of Things with bitcoin transactions. World Wide Web creator Tim-Berners-Lee leads the W3C to establish online payment standards, including Bitcoin, another sign of positive acceptance.
UBS’s Alex Batlin’s statements about Blockchain, saying that the technology will be an opportunity or threat to companies like UBS basing on how quick they act on it, has once again clarified that the technology is here to stay and is slowly gaining traction.
Patrick Byrne, the founder of Overstock.com, has acquired a broker-dealer firm built deep into the DNA of Wall Street. When the technology at the center of the acquisition is switched on, Byrne said, it will mark the first time the decentralized ledger behind bitcoin is plugged directly into Wall Street. This way it will be possible to bridge the gap between bitcoin technology and the blockchain.
With Coinbase reaching a valuation of $1 billion, it is listed as one of the top 50 tech startups in the USA. Fortifying their market share, they have launched services to purchase bitcoins through debit cards and credit cards and most recently launched in Canada.
While the service providing companies are doing well, the exchanges have taken a back step last week. The Bitfinex trade engine was blamed for the flash crash and many people experienced problems with exiting their positions during the crash, Australian Exchange, iGot, halted their trading activity and this has led to angst among its traders and customers.
So in conclusion, it is fair to say this past week of has seen lots turmoil in bitcoin trading with loads of negative factors contributing to the market sentiment bearish. Long Term Technical Analysis
On a weekly scale, the market has tested its long term support level at 200 and retraced quickly to 227. The bearish arc of this swing was a strong move ranging over a month, driven by fundamental factors. The Bollinger bands in the weekly chart still remain parallel showing that the market is in bounds and judging by the regression lines, is setting up for a bull trend after consolidation.
On a long term scale, RSI is approaching oversold region while MACD just took a bearish turn crossing the signal line. Since the market is yet to consolidate, taking a long term position right as of now wouldn’t be feasible. Short term trades around 224 region with stop loss around the lows of previous week’s candle, targeting 5 SMA would be feasible. Long term trades can be planned on basis of consolidation. As soon as both Bollinger and 5 SMA become trending in the upward direction after significant consolidation, entering into trades with a long term plan would be profitable. Proper entry points for such trades would be around 220 region with stops below 217. With Market trending, possible exit points could be 266, 300 and 317.
If the market breaks out on the downside, breaking the support zone at 200, possible targets can be 157 and further drop in prices would seem likely. Midterm Technical Analysis
In the daily chart, the support encountered around 217 region was breached and market has now found long term support at 200. With the Bollinger bands and SMA’s pointing downwards, the setup is going to remain bearish for some time until a base of consolidation is formed. The descending triangle as shown in the daily chart between the downward trend line and support line at 200 might possibly see good number of volumes being traded in the coming days. In which direction the break out would be or the setup would change will depend on how the market approaches the vertex of the triangle.
If the Bollinger bands and short term SMA’s don’t straighten out or change direction, the break out might as well be in the downward direction, continuing the set trend. The MACD is about to cross the signal line and turn bullish, RSI has crossed 30 from the downside indicating impending bullishness in the market but when the bull run takes off is to be seen.
In the medium term, it appears that it is going to be bearish/sideways for some time. Shorting opportunities at the trend line and retracement trades with 5 SMA as support hold good potential. Short term Technical Analysis
On a short term scale, the market has retraced over 220 levels and is expected to trade in this range for some time before either consolidating and going for a reversal or crashing down further more.
We can observe that 100 SMA is offering good support and market has not been able to go beyond 34 SMA. Picking longs over 100 SMA with 34 SMA as target would be a good short term trade. With the Bollinger bands and SMA’s still pointing downwards and higher time frame charts supporting, shorting around 34 SMA would be a good option.
The possible targets for such trades would be 100 SMA and if the market gets further trendy, a crash down back to 200 levels can also be expected, although these trades have to be done with tight stop loss. The MACD and RSI don’t give much indication as the market is sideways in the short term and retracing. Sentiment Analysis
This week saw a lot of action with countries announcing regulation moves and unveiling of technologies which ease bitcoin and blockchain adoption. While the sentiment was bearish majorly, let’s take a look at what happened in the market:
The Bank of England has announced that Bitcoin is ‘harder money’ than Gold because of Deflation. During a presentation on digital currencies, Andy Haldane, Chief Economist and the Executive Director of Monetary Analysis and Statistics of the Bank of England stated the above statement explaining that sustained adoption would see ongoing deflation.
An article from ibtimes has given a thorough analysis of how adopting blockchain technology to the existing banking system would be difficult and how Deutsche bank’s economist sees blockchain as a threat because of the lack of the IT infrastructure to support the technology involved. On educational front, Stanford has joined NYU and Duke University in offering bitcoin course, Princeton has launched its own bitcoin course on Coursera, strengthening the sentiment that cryptocurrencies are here to stay and further studies and research in these fields embedded into the course work is a strong possibility.
On the technological front, with e-coin launching Bitcoin Debit card affiliate program, which aims at bridging the gap between traditional financial services and bitcoin, it’s now possible to load bitcoins into debit cards and make payments for the transactions. With Coinbase also enabling purchase of bitcoin through debit-card/credit-card, we are now in a transformative phase where the traditional financial services are being used to develop and adopt systems that would be framework for the future bitcoin usage.
How the technology will evolve to accommodate or change the traditional banking system is to be seen. Developments in Blockchain
On August 20th, Nasdaq revealed its plans with the underlying technology of Bitcoin and Blockchain. In an interview with efinancialnews Fredrik Voss, Vice President and head of Blockchain strategy at Nasdaq answered questions about how the program is progressing and what other applications Nasdaq is thinking of.
Nasdaq is planning to launch the private market initiative later this year and is clearly looking at commercial uses for the Blockchain now. The application of distributed ledgers in financial markets for things like settlement and custody, to create efficiency in back-office processes is the primary aim.
Another application of Blockchain this week would be the launch of John McAfee SwiftMail which is a new free peer-to-peer, proof-of-work, encrypted mail system that uses the technology underlying Bitcoin to replace email. The system is said to have very high encryption as privacy is one of the key aspects of SwiftMail. Technocorner
On the techspace, what has been hogging all the limelight is the new chip for Antminer S7 by Bitmain that is believed to be more powerful than its predecessor. Bitmain, the bitcoin mining ASIC provider, announced on August 20th it is launching its fourth-generation ASIC, the BM1385. This chip is claimed to generate a 45 percent increase in hashrate while needing 50 percent less electricity than its former chip, the BM1384.
Another interesting development would be Netcoins which can supposedly turn any device (iPad, Android devices) into a bitcoin ATM. It is ideally designed for retailers to enable transactions in bitcoin and attract tech savvy customers.
News that’s also been doing rounds is about the Mike Tyson ATM. While initially the prospect was heralded to be a scam, the ATM was launched in Las Vegas with Bitcoin Direct backing the launch.
While security threats in Windows 10 has put the wallet developers in a tight situation, the iOS space is now crowded with launch of new wallets everyday making it hard for the users to choose from the many apps. Most people believe that the advanced bitcoin demographic belongs to iOS users and this is the primary reason for the competition while some say that the lack of a secure wallet in Android and security issues with Windows has led to this development. For the same report with the Technical Graphs please see the original post: Bitcoin Trading Intelligence: September 1st, 2015
"The basic law of Counter-Economics is to trade risk for profit. Having done so, one naturally (acting to remove felt unease) attempts to reduce the risks. If you reduce your risks while others continue to face the higher risks, you naturally out-compete and survive longer. And you profit." Samuel Edward Konkin III, An Agorist Primer.
In 2008, I took a software development gig at a startup in Santa Monica, CA called LP33 (lp33.tv). The company had originally been named MyAWOL (My Artists WithOut Labels). The “My” prefix was a not-so-subtle nod to MySpace, the giant (at that time) of the social media industry. Facebook had opened to the public in 2006, but was still an outlier in the space. Venture capitalists around the world, at that time, were dumping money on startups promising to create “The MySpace of X.” MyAWOL had been founded by music industry veterans and sought to become the premier social network for independent musicians - “The MySpace of Indie Artists.”
For the past several years, the most exciting label for a startup is “The Uber of X.” Unlike MySpace, Uber is seeing its market share continue to grow and is expanding into other areas. UberEats, for instance, is Uber’s own entry into the already established (and crowded) “Uber of Food Delivery.” The ubiquity of smartphones and mobile broadband connections has given birth to such startups as “The Uber Of Stylists” (TheGlamApp.com), “The Uber of Dog Walking” (Rover.com), “The Uber Of Car Rental” (Turo.com), and even “The Uber Of Car Rental For Uber Drivers Who Need To Rent A Car To Use To Drive For Uber” (HyreCar.com). It is remarkable how quickly the outlaw antics of Uber are swept aside when such antics generate profits.
It was (over-) regulation on the part of government that, ostensibly, led to Uber’s creation. It was overreaction on the part of regulatory agencies that clearly led to the creation of “The Uber Mystique.” Uber has achieved victory in the vast majority of battles it has fought with governments determined to keep the service out of certain jurisdictions. In the cases where Uber has retreated, new “Grey Market” opportunities have arisen in the space left by Uber’s absence. Uber’s brief history serves as a case study which proves that Agorist theories - put forward by Samuel Konkin in the late ‘70s and early ‘80s - give a powerful framework for a peaceful supplanting of government coercion by non-violent, market means.
Although Uber was created in San Francisco, its first significant battle was fought in New York City, the Mecca of the taxicab industry in the United States. Overregulation created the space for driver demand. Overreaction on the part of Las Vegas authorities, in their dealings with Uber, created a public relations scenario that allowed Uber to finally gain a foothold in my lucrative hometown.
In Austin, TX, overreaction by government eventually ended with Uber (and competitor, Lyft) deciding to pull up stakes and remove themselves from the municipality. The market demand created by the ensuing vacuum incubated what may turn out to be the Facebook to Uber’s Myspace. The tale of these three cities is a harbinger of the new economic paradigm that lies just on the horizon. Those who understand the paradigm will have great economic opportunity in the coming years.
The Counter-Economy is vast. Our brief study of economics tells us that this should be no surprise. The more controls and taxation a State imposes on its people, the more they will evade and defy them. Since the United States is one of the less (officially) controlled countries, and the CounterEconomy here is fairly large, the global Counter-Economy should be expected to be even larger — and it is. Samuel Edward Konkin III, An Agorist Primer
Uber launched in New York City in May of 2011, a year after the app first went live (in San Francisco). Uber arrived on the scene in the middle of the latest battle in a taxicab civil war that had already been raging for a century. Their arrival tipped the scales in favor of the Counter-Economy.
The metered cab industry first began in New York City in 1907. Immediately, grey market “illegal” cabs began plying their trade on the streets. The grey market grew alongside the white market. In Los Angeles, these illegal cabs were known as “jitneys” (a slang term for a nickel, which was their fare in the early days). By the 1930s, the grey market cabs of New York had acquired the moniker “wildcat taxis.” The wildcats were known for providing drastically reduced fares, and the licensed drivers complained that they were losing business to these illegal competitors. This claim was demonstrably unfounded, however, because by the 1960s licensed drivers (medallion holders) had a lucrative enough business that they began restricting their activities to the hub of Manhattan - refusing rides to certain “types” of people and to certain destinations. The wildcats (now known as “gypsy” cabs - a name still used today) became the primary operators in the outer boroughs - mainly Brooklyn and Queens.
In 1967, as a reaction to lobbying by medallion holders, the city ordered that medallion cabs paint their taxis yellow (gypsy cabs must paint their cars some other color) so that riders could immediately distinguish between the two. The reaction was swift. Gypsy drivers turned over or burned no less than 14 licensedmtaxis in Brooklyn. The mayor, John Lindsay, offered full police protection to medallion holders but simultaneously voiced his opposition to the law that gave birth to New York’s famous Yellow Cab.
In 1971, the city created the Taxi and Limousine Commission (TLC). In a moment of foreshadowing that would echo through the decades, the new TLC Chairman, Michael Lazar, suggested that the gypsies could become legal by simply no longer taking “street hails” and only picking up fares who had called ahead and scheduled rides. The gypsies in The Bronx organized protests of the initiative. The protests turned violent when firefighters, responding to a blaze set by the protesters, were attacked with bottles and bricks. The initiative eventually went through - creating the livery, or Black Car, industry - but the gypsies never fully left the streets.
In 2011, New York was in the middle of the implementation of the Green Cab system. A green cab is a cab licensed only to operate in the outer boroughs where the yellow cabs do not. In other words, the green cabs (or “borough cabs”) were the city’s attempt to “license the unlicensed.” Yet another battle between the state and the grey market was in full swing. The TLC began doing undercover enforcement in the boroughs, pulling over and citing gypsy drivers. The gypsies, in turn, began forming “crews” to hold onto turf and as protection against the TLC. Puncturing the tires of TLC vehicles and chasing off green cabs became necessary crew activities. Enter Uber.
In 1987, Michael Lazar, the former TLC chairman who established the livery laws, was indicted on federal racketeering charges, fined $200,000, and sentenced to 3 years in prison. Lazar’s weapon in New York’s taxi wars, regardless of its impact in 1971, has turned out to be the “sword pulled from the stone,” that has enabled Uber to triumph. Uber’s model – pre-arranged rides – falls squarely within the boundaries of the livery system. Lazar’s weak attempt at stifling the gypsies gave Uber the foothold it needed.
The 2011 green cab program, one of Michael Bloomberg’s final acts as mayor, pushed the gypsy drivers - now in fear of losing their livelihood – right into Uber’s arms. The city tried for 5 years, unsuccessfully to oust Uber. Uber stuck to its guns and “hacked” the livery system. Now there are millions of weekly Uber rides in New York City (not to mention deliveries from UberEats and UberRush). Uber’s fleet is more than 3 times the size of the entire licensed taxi fleet. Uber drivers, many of them former gypsy drivers, are averaging between $30,000 and $60,000 per month.
Had the city simply left the outer boroughs alone, the story might have been different. A yellow cab medallion, in 2011, could only be purchased at auction (the city didn’t issue new medallions). Medallions were going, at auction in 2011, for a million dollars a piece. Had the gypsies been allowed to keep their turf unmolested, Uber would have had to fight battles on 2 fronts against the yellow cabs and the TLC in Manhattan and against the gypsies in the outer boroughs. As it happened, however, the city’s overregulation united the grey market and shifted the balance of power in a Hundred-Year War.
Everyone is a resister to the extent that he survives in a society where laws control everything and give contradictory orders. All (non-coercive) human action committed in defiance of the State constitutes the Counter-Economy. (For ease of analysis, we exclude murder and theft, which are done with the disapproval of the State. Since taxation and war encompass nearly all cases of theft and murder, the few independent acts really should be classified as other forms of statism.) Since anything the State does not license or approve of is forbidden or prohibited, there are no third possibilities. Samuel Edward Konkin III, An Agorist Primer
In October of 2014, two representatives from Uber had a meeting with Bruce Breslow, the Director of Nevada’s Department of Business and Industry. Up until that time, Uber had stayed out of Vegas, a market dominated by a cartel of politically powerful taxicab companies that some call the last vestiges of “Old Las Vegas” (aka The Mob). The taxicab lobby effectively neutered the Las Vegas Monorail (the largest, privately owned, public transportation system in the US) by preventing expansion to McCarran Airport. Instead, the end of the futuristic train’s line is across the street from the airport, at MGM Grand Hotel - ample distance to prevent it’s use by air travelers. The taxi cartel is also well known in Vegas for shaking down strip clubs – charging a per-head fee for every patron brought, by taxi, to a club. The shakedown is so noxious that clubs find it more profitable to maintain fleets of complimentary limousines and party buses than to pay off the cab drivers. The Uber representatives were meeting with Breslow to see where the state itself stood on the company’s planned entry into Sin City.
Breslow told the representatives that they could either apply with the Nevada Transportation Authority as a common carrier (like a limousine company) or they could register with the aforementioned Taxicab Authority as a taxicab company. The representatives thanked Breslow for his time and walked out of the office. Two days later, Breslow, a registered Uber user himself, received an email – sent to all registered Uber users in Nevada – with the subject line “Your Uber is arriving now, Las Vegas!”
Uber’s legal department, after reviewing Nevada’s laws, had ascertained that Uber, as a ride-sharing company, was not required to be regulated as either a limousine or taxicab company. They turned on their app and drivers hit the Las Vegas Strip. The Taxicab Authority hit back. Masked Authority agents in unmarked SUVs, armed with assault rifles, used Uber’s app to tail suspected drivers. When the drivers stopped at the passenger’s destination, the agents swarmed from their cars, like movie terrorists with a neon backdrop. Drivers were arrested. Cars were impounded. A Nevada judge issued a preliminary injunction banning Uber from Nevada.
Instead of fighting a protracted battle in the courts, Uber sent a battle-tested team of lobbyists into Southern Nevada and began to fight in the court of public opinion. Suddenly there were political fundraisers for Nevada politicians, hosted by Uber, being thrown in hip Downtown Las Vegas. Twitter and Facebook ads filled Nevadans’ news feeds. By the summer of 2015, just months after that meeting in Breslow’s office, Uber had secured enough legislative votes to begin service again in Las Vegas. Their only concession, a new 3% excise tax levied against all cars for hire – including taxis. Not only did the taxicab cartel lose market share to Uber’s grey market tactics, but Uber convinced the state to punish the cartel for fighting by stealing 3% more of its revenue. The goonish tactics of the corrupt state agencies swayed public opinion toward Uber and the grey market.
The other business is Information. The Internet explosion has led the American State — for now, at any rate — to throw up its tentacles at regulation of the Information industry. Every legislative session, however, brings new attempts to tax and control the [Internet]. But consider this well: should the Counter-Economy lick the information problem, it would virtually eliminate the risk it incurs under the State's threat. That is, if you can advertise your products, reach your consumers and accept payment (a form of information), all outside the detection capabilities of the State, what enforcement of control would be left. Samuel Edward Konkin III, An Agorist Primer
Uber arrived in Austin, Texas in 2014. Unlike Las Vegas and New York City, Austin didn’t have a highly established taxi industry. However, the growing tourist base (mainly attendees of the SXSW and Austin City Limits music festivals) created a demand for more readily accessible transportation. Uber filled the void perfectly. Austin is a young, tech-savvy town that took to Uber like a duck to water. The Uber drivers I have had in Austin have been some of the most pleasant of any with whom I’ve ridden. But…statists gonna state.
Allegations of sexual assault by drivers and (of course) lobbying by cab companies became the impetus for the city fathers to demand that Uber fingerprint all their drivers (just like the taxi drivers). Uber balked at this suggestion and raised the stakes in the gunfight. Uber funded a referendum. Were Uber to win the vote, the company would be forever exempt from fingerprinting requirements. Uber played the state’s game…and Uber lost. Austin voters did not grant the exemption. As a result, Uber (and competitor Lyft) pulled up stakes and left Austin for good. In their wake, they left 10,000 unemployed drivers and even more riders without wheels.
The vacuum created by the Uber departure, combined with Austin’s peculiar culture, gave birth to a fateful experiment. In a Facebook group called Arcade City, individual drivers and riders began arranging rides privately. Riders would make a request in a post, drivers would reply with a specially formatted driver bio (called a “collage”), and the rider would pick the driver they wanted by sending a private message. Soon, thousands of rides – and quite a bit of press – were being generated.
This grey market activity attracted the curiosity of a team of software developers working in the cryptocurrency Blockchain space. The developers saw an opportunity to combine Uber with Bitcoin, creating a completely “unregulatable” platform for ride-sharing (or house sharing, or “anything-sharing”) where the Blockchain handled both payment and reputation management. Stark differences in vision between the original Austin community and the developers saw a fracturing of the project. The Austin ride-share group has kept the Arcade City name and has launched an app that moves the functionality off of Facebook and onto their own platform. The developers started Swarm City (named after the term for the nodes on their network – “the swarm”) and have been slowly rolling out their platform. Both projects embrace the grey market ethos and provide virtually no handhold for regulatory authorities. By trying to overregulate Uber, Austin created a hydra-like, unregulatable replacement. Konkin’s vision of Agorism is not a prescription for ideological action. It is, instead, a description of the world in which we live.
The Counter-Economy is growing stronger every day as technology makes the State obsolete. Every attempt by the State to overregulate creates a niche for creative entrepreneurs to avoid that regulation. Soon, a point of critical mass will be reached. A free society is the goal of many people, not all of them agorists or even libertarians. Agorists can see nothing but a free market in a free society; after all, who or what will prevent it? Samuel Edward Konkin III, An Agorist Primer. https://archive.is/Am9pM
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