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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. Bitcoin: Is Money
    Becoming Programmable?
    Money APIs…

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  2. Elie CHEVIGNARD
    @mailjet
    @Elie__
    [email protected]

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  3. Headline should look like this
    Wanted to update my last talk
    “API as a product"

    But I got distracted

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  4. Headline should look like this
    The cause of the distraction

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  5. 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)

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  6. It matters
    Semantics

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  7. 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

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  8. Headline should look like this
    Still…

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    South Sea Bubble

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  10. Headline should look like this
    Who knows Bitcoin?
    Who owns bitcoins?
    ?

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  11. Headline should look like this
    bitcoins VS Bitcoin
    The bitcoin currency,
    VS the Bitcoin network

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  12. Headline should look like this
    bitcoins Bitcoin

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  13. Headline should look like this
    Bitcoin

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  14. 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

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  15. To summarise
    - Gold 2.0
    - Currency
    - Platform
    - Protocol
    Buying
    Building

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  16. It’s about transactions
    Bitcoin

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  17. Headline should look like this
    The concept
    "Bitcoin is an open source peer-to-peer electronic
    money and payment network"

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  18. 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"

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  19. Headline should look like this
    What is a payment?
    "The act of transferring money from one
    party to another, it’s a transaction"

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  20. Headline should look like this
    Bitcoin is about transactions
    You need to trust the other party right?
    Well, no longer, thanks to Bitcoin.

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  21. 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

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  22. Headline should look like this
    Remove trust = automation
    No more uncertainty or intermediaries:
    transactions become programmable

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  23. Examples
    Building

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  24. Headline should look like this
    Bitcoin has an Open API
    - Distributed (P2P)
    - Open Source

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  25. Headline should look like this
    Safe/sane ecosystem
    Third parties can build services.

    Let’s see an example.

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  26. 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"

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    Micro-payments are late

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  28. Headline should look like this
    Blockchain = distributed
    maintenance of the ledger

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  29. Headline should look like this
    Capacity limitations of the block chain
    7 transactions
    per second
    10,000 transactions
    per second

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  30. Headline should look like this
    "Taking transactions off-block"
    Solution 1: Third party

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  31. Headline should look like this
    Solution 2: Native
    Bitcoin has "dormant features"

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    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

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  33. 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."

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  34. Headline should look like this
    Remember Coinbase?
    "they are only possible between two
    Coinbase accounts"

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  35. Headline should look like this
    Protocol for micro-payments

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  36. Ecosystem = third party &
    native services
    - Proprietary APIs
    - (Really) Open APIs

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    Other “contracts" possibilities
    - Smart property
    - Agents
    - Distributed markets
    - The Ripple currency exchange

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  38. 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)

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  39. Headline should look like this
    The future of the ecosystem
    now investors buy bitcoins
    tomorrow, they’ll fund Bitcoin ventures

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  40. Headline should look like this
    BTW, "bubble" or "user growth?"

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  41. Want more?
    Future

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  42. Headline should look like this
    BTC = SMTP, HTTP OR TCP/IP?

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  43. 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."

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  44. Headline should look like this
    Headline should look like this

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