Only 22 years old, this program ape can beat bitcoin?

Only 22 years old, this program ape can beat bitcoin?

(original title: the 22 year old Bob can beat Bitcoin ?)

The DAO attacks

Berlin time on Friday June 17th at 8:15 in the morning, suddenly began to chaos.

The German technology company Griff community organizer Green issued “emergency alert in public chat channel!” The warning. Then, he went to a large investment stakeholders request: “please as soon as possible to the members of the data mining!” (the DAO is his investment together with the company to start the project, after the project is considered to be the most successful in the history of the project to raise the public) three people immediately replied: “oh!” “What’s the matter?” “A big deal!” After half an hour, Green added: “we are not sure what happened, but the the DAO project is currently in an emergency.”

The DAO autonomous organization project represents the decentralization of their concept is that startups should is a new company established in the form of Digital currency Technology (bitcoin), to carry out daily operations with the algorithm to replace the human manager. The DAO programmers want to become a the DAO like Kickstarter or Kleiner Perkins venture capital company.

A month ago, thousands of investors on the experimental $160 million investment. Their investment is in Ethernet coin (Ether, history only a year of digital currency, bitcoin competitors) exists in the form of virtual token exchange. Founder the DAO has designed a software to perform the token holder through collective vote willingness to invest.

In the project financing activities, sponsor the DAO, is also a partner at Stephan Tual and chief operating officer of investors that their investments in the DAO’s money is very safe, safety program for all banks more than. But now, the and DAO have been hackers broke into stealing the DAO fund. Green suggest you to send spam to the web, as hackers theft thief slow speed like a clogged pipeline. He said gravely: “yes my friends, this is not a drill.”

In the second days before the to regain control, the hackers have stolen more than $50 million, which is almost the DAO fund 1/3. When people exclaimed disaster atmosphere when the forum sounded a name: “where’s Vitalik?” “Wake up Vitalik!” “Vitalik, our king, help us!”

A voice replied: “calm down, Vitalik is resolved.”

A month after the attacks, but also on whether to start hard to make up for the loss of DAO the bifurcation procedure when the voting ended, Vitalik Buterin met with a Pok mon hat wearing a young man, he was an assistant professor of computer science. Vitalik Buterin on his talk show expressionless. The young people are excited to present complex logical problems existing, Vitalik Buterin solution with a witty interrupted him. He said: “yes, this is really cool!”

The etheric Fang Vitalik and Buterin

The 22 year old programmer Vitalik Buterin is organized by the Cornell University to participate in the IC3 training camp. This is a study of the payment system of academic alliance activities, there are about 24 programmers gathered in the Bill and Melinda Gates foundation in Gates hall. The meeting was to discuss “stochastic dominance”, “Merkle tree” and “zk-SNARKs” tense.

Although the youngest group stayed in the room, Buterin is arguably become one of the most striking in the team. After all he is a child prodigy network founder coin “ether Ethernet square”. Hundreds of millions of dollars worth of Virtual currency The etheric coins in less than ten years into the public view, bitcoin become the biggest competitor. He also became the 2016 under the age of 40 most influential people in thirty-first.

Map Block chain The new currency chart

From last year since landing, the etheric currency value from zero or one jumped to nearly $10 million, surpassing the hundreds of other virtual currency competitors. But more importantly, the Buterin technology has been established beyond the possibility of digital currency speculation. Ethernet square supporters believe that this network may one day be applied to the center of the ruler, the application may be a no censorship of the social network, or a public car service, or Crowdsourcing market forecast and investment companies, and even government agencies.

The creation of Buterin programmers has gone beyond the field of work. Fortune 500 companies have already started testing technology. Last year, Samsung and IBM started a program of network equipment, the workshop in the etheric network (such as dishwashers, lamps) for cooperative control. At the beginning of this year, including 11 U.S. banks, bank wealth Barclays Bank, UBS, Credit Suisse and HSBC using Ethernet to run a workshop technology financial services pilot project. Microsoft and DDT also promote their experimental projects in the etheric Fang on the network.

You may feel the etheric is destined to be the latest Silicon Valley square, tens of millions of startups, but would you please think about it, because you are not familiar with Buterin typical entrepreneurs. He did not VC investment funds, not even in the Silicon Valley business. In fact, he is more like a wanderer without backpack program ape, on the sofa or any local programming. He did not want in the future will be listed companies, instead, he will set the startup for a nonprofit foundation in Zug. As the chief scientist of the etheric Fang, Buterin will Linux kernel inventor Linus Torvalds as his example. In this sense, Buterin became a representative of virtual currency technology banks and investors to invest in the future could change the world: programmable programming.

As the etheric Fang founder Vitalik Buterin, Julie Glassberg, Fortune source: Photography

Buterin looks nothing like a Wall Street ideal business partner. The first time I met Buterin, he was tall and thin, wearing a crumpled T-shirt, wearing a Purple Striped Swatch watch, with a smiling cat on the dial. While he is in his side with the improvement of open source software, an approximate computer generated voice to answer our questions.

He said his ultimate goal is to complete the transformation of the network using Ethernet square, reset the existing power structure, the right to transfer from traditional brokers to public hands. Of course, if his success of the revolution, his technology to achieve a large-scale application, so his plan will greatly increase the he and other coin holders of ethernet. But if the influence of Buterin flat, so they are not what his ambition.

But before the Buterin changed the world order, he must first prove that the user can safely use his technology, because the infrastructure of Ethernet network is square, rationality weakness hacked the DAO. In recent months, many people have science and technology transfer from other digital currencies such as bitcoin currency to the etheric body. But in this turbulent world of virtual currency and idealistic creator environment, loyalty this thing is very variable.

In the global economic system collapse edge, digital currency movement is emerging. In November 1, 2008, it was Lehman brothers declared bankruptcy and triggered a global financial crisis a few weeks later, cryptography enthusiasts mailbox appeared such an announcement: “I was creating an electronic currency system, can not fully trust the third party to achieve point-to-point transaction.” The announcement also included a nine page detailed academic papers. The system of the invention people will call it bitcoin.

To solve the Byzantine Generals Problem has long plagued the computer discipline under the name of inventor Satoshi Nakamoto (Byzantine for Generals Problem). Based on the original research, he proposed a decentralized system of decentralization, in this system, no one can successfully cheat. Nakamoto’s genius is to ensure that every person’s honesty use mixed strategy, mathematical cryptography and game theory. Rather than rely on some overall database administrator to permit a visible all payment transaction records, why don’t you record a copy of the data extension assigned to each person? This idea is easy to say but hard to do, but the Nakamoto system achieved a great achievement. The original Nakamoto invention is called a block chain, which is a new structured data system.

As the name itself means a block chain consists of a series of connected blocks or list. Each block contains a timestamp with the transaction records, who recorded at what time transaction amount. The system combines the rules of mathematics and economic incentives, and open networks for all transactions transparent requirements, all the people said agreed on the requirements of the system. Just like the Internet, block chain to reduce the single point of failure, an arbitrary node can self surge, the whole system can be accurately and completely survived.

Early, bitcoin split architecture has attracted a large number of fanatical “encryption anarchists, liberals and curious technology researchers note. Until 2011, Nakamoto suddenly mysteriously disappeared from the network in the world (the recent global hunt has not seized their identity). But the Nakamoto initiative interest was the explosive growth, and to attract an extreme fascination with computer youth in Toronto……

One day in February 2011, Dmitry Buterin introduced a remarkable invention on the Internet he learned to his son: bitcoin. At first, Vitalik did not show much interest. Compared with World of Warcraft, digital currency sounds really boring. But he did not agree with his father’s strict view of the values of liberalism. But after some research on virtual currency, Buterin changed his mind. May be the mathematics that attracted him.

When the Buterin is not always with the children playing, on the contrary, he was on the digital obsession. The disintegration of the Soviet Union after several years, learning computer Buterin parents in a university in Moscow, he was with grandparents living together. When he gave Lego toys to play, he does not spell the tower or animal figures, he will fight figure. When he was 4 years old when his father gave him a computer, he was immediately attracted to this gift. The father said: “Excel is his most love toys.”

In 1999, Buterin’s parents divorced, his father moved to Toronto, Buterin also followed a few months to live. Later, things are going smoothly, high school Buterin no longer shy, joined the debate team. But the computer is still the center of his life.

The picture provided by the father of Buterin

When Buterin understand principle of bitcoin, he began to look for some money for. The first time for him to write a web page for each post, 5 bitcoin (or about $4 a), but later this site closed down. He began to write two articles every week on technology and its potential social influence of the article, published in the summary paragraph in the bitcoin forum. He will publish his bitcoin address (which is like a bank account information), then announced that he would publish an article in the bitcoin after get enough. Gradually, he got more and more bitcoin.

Later, he created his own magazine. In September 2011, a 23 year old Romania programmer named Mihai Alisie suggested that the 17 year old Buterin together with his own publications published. They created bitcoin magazines, including print and online edition. Later they read up to 1 million 500 thousand. Buterin wrote most of the articles in the magazine (now the magazine still in publication, but does not belong to them).

Master Buterin time just perfect. The public interest in bitcoin exploded. In order to seize this opportunity to read a Buterin decided to drop out from University of Waterloo (he later won a scholarship to PayPal founder Peter Thiel). Bitcoin’s value with the increase of publicity increased substantially, from less than $1 in 2011 rose to nearly $1000 in 2013. The entrepreneur and the venture capital began to bitcoin as a subversion of the traditional financial sector opportunities. The bank in secret experiments with this technique.

Buterin took his surge in value of bitcoin, began a world tour. He began to live a life everywhere, involved in various projects. For a time, he told a group of “crypto anarchist” living in an abandoned cottage in Barcelona. He said: “now they spent two months later, I left for anarchist feelings more profound. Everyone in the team for collective cooking obligations, but for a long time, people began to become lazy, began to escape from the original agreed obligations. This let me know if there is no economic incentives or forced people to complete the task rules, so they will not finish the task.”

Buterin also began to recognize the limitations of bitcoin. When more and more people began to use it when a problem has become increasingly prominent: the network cannot expand. It can only handle 7 transactions per second, if the system has become the mainstream, this capacity is not enough. The opposite example is Visa, which can deal with thousands of transactions per second.

Aspiring developers will face an unfortunate reality: very difficult to create applications in bitcoin. Because the original function of this system is as a safe path to deliver value, rather than a system for creating software. Nakamoto deliberately constrained bitcoin, making it less vulnerable to attack. The key programming and it’s most influential person seems to quickly solve this potential problem indifferent.

So a bold idea emerged in Buterin’s mind. If someone can make a more common use platform, how one can create any financial derivatives in the above platform? He proposed this idea to work with programmers, but they rejected. Buterin said: “no matter what they think, I do.” So he gave a few close friends email explained his idea. At the beginning of 2014, he had a group of aides, to create the etheric fang.

From the exterior view, ConsenSys is like a rehearsal instead of a high-tech start-up companies. Because it is situated in Broolyn the next fashion Bush Vic, there is a market for organic food and a sushi restaurant on the left and right sides. The door is covered with peeling of the nameless punk rock band the stickers, upstairs open office area was crowded with many application developers Ethernet square.

Figure ConsenSys founder Joseph Lubin photograph: Cole Wilson source: New York Times

The incubator is the brainchild of Joseph Lubin. He is a software expert, has done a hedge fund manager. Lubin is critical to the etheric workshop project landing. He offers some project start-up capital, and create a ConsenSys at the beginning of this year, as a profitable technology factory, mode of operation is similar to Betawork and IdeaLab, but it set up completely in the etheric square at the center and foundation.

Lubin captures the virtual currency “problem” in 2008 after the financial crisis vulnerability. When he was in Princeton learning computer and electronic engineering, he said: “I am very worried about the global economic situation, when I learned when bitcoin, feeling to see the path to create a new system.”

Now, Lubin is busy recruiting structure future bank manager to help him and Buterin transformation from finance to energy into all areas of health management. Lubin said: “our goal is not to create the control structure of a hierarchical demand, but on behalf of those who stood in their position on startup.”

ConsenSys is one of the many companies workshop project based on ethernet. Lubin organizations have begun to experiment with the blockchain token provides automatic music copyright payment service, permanent service and transaction service solar provinces verification. In addition, a start-up company called Augur is to establish a currency based Ethernet market forecast. The Spanish international bank is also working with a camp named Ethernet ( Company co founded a new form of digital cash.

Figure six relates to the future of technology startups, source: Forbes

The ability of Ethernet square is that it can automatically convert complex encoding relations into a smart contract. This contract is a function as an overview of commercial logic software program, including these logic in a now decided under the condition of currency transfer, equity transfer and other debt constraint rules. At the same time the etheric Fang has a built-in programming language called Solidity, the language allows anyone to easily create their own application in the system.

Buterin allies said these characteristics make the etheric Fang victory bitcoin. Ethernet Fang Hexayurt project manager said: “the single currency itself will not make you have the ability to create new social structure. But once in the intelligent contract, you have the ability to organize the world, then the work will become very interesting.”

However, for bitcoin researchers retort that the etheric Fang is not fatal weakness of its safety, they also mentioned that the mentioned the DAO attacks. However, even in the bitcoin community, there are also some people envy the etheric Fang flexibility. Network called “bitcoin God” Roger Ver is the virtual currency is the most active promoter, he said: “the etheric get so much attention because of the expansion of fast enough. The same thing happened in the Friendster and MySpace body. The user experience is poor, no improvement as soon as possible and server software, so everyone moved to a new generation of products.” “Say it makes me sad.” He added.

The DAO attack is a big setback for Ethernet square. But Buterin did not feel very frustrated. He was in the China to be absorbed in trying to solve the problem. He said: “generally speaking, I won’t feel too much emotion in the face of the problem, I just deal with it actively.”

However, network theft in the aftermath still unfinished. The final solution is Buterin Ethernet square community caused a strange split.

In many disputes, Buterin and his team suggested that the etheric Fang start hard to solve the DAO bifurcation theft. Simply put, they will be in the trading account to write encoding, the DAO token in the electronic level to retrieve the stolen. Hackers will not be able to exchange his lost shares, while DAO investors will regain currency investment in the form of ethernet. In the vote, the bifurcation method of hard to get through, 85% square network carried out the scheme of ethernet.

But the other 15% are starting to rebel, they feel separated from the etheric Fang network, to establish their own rules, and form a new block chain, called “ether by classical square (Ethereum classic)”. In advancing the hard bifurcation method, these purists insist against, because Buterin and other etheric Fang managers violates the basic principles of the public ledger blockchain: Sacred and irrevocable of.

In their view, hackers successfully in the DAO software for the attack by a “loophole”. So in the etheric Fang classic block chain, hackers only retained strength. (although the decline in the value of a lot, when hackers in the etheric Fang classical school recently is about $1, and $12 for the normal Ethernet Fang)

This feud gradually makes the potential of cooperation for the development of the etheric Fang from the etheric Fang can be deadly.

Accenture block chain unit global investment marketing director David Treat said: “I think the current situation is that the Ethernet and Ethernet classical Fang Fang exist at the same time, people in the two continuous mining, which is unfortunate.” He and his team are still working with large bank customers continue to use Ethernet square encoding. David doesn’t think the blockchain will be immutable and frozen. He believes that the customer may one day need to correct potential errors in the split block chain. He asked: “if one day the wrong, who have the right and ability to make a change? This change is how to make?” He said that these problems should be solved in advance.

Buterin is trying to solve the problem, he believes that in the future this scheme can prevent most hacker attacks like software debugging. He will the DAO attack as a ritual of the etheric Fang, because it happens to be the second large-scale network attacks, also just happened at the end of September on the eve of the etheric Fang meeting in Shanghai.

In view of the split and attack, we have reason to ask questions: Ethernet square and other block chain network can get enough trust? They will replace our existing financial system? Buterin think it will take some time, but he is very patient. He said in an email Chinese wrote: “the main advantages of blockchain technology is it safer, but new technologies often make it difficult to believe that this paradox is difficult to avoid. We can only experience it, overcome it.”

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