TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2020.02.17

Episode Date: February 20, 2020

This week Marty and Matt discuss: - Bisq v1.2.6 adds support for L-BTC - Bisq volume up 2.6x YoY - Zeus v0.2.1 - RTL v0.6.5 - c-lightning v0.8.1 - ColdCard firmware v3.1.0 adds support for HSM mode called [ckbunker](https://coldcardwallet.com/docs/upgrade & http://ckbunker.com/) - Fully Noded 2 released on testflight - BTCSessions mynodebtc.com build your own node walkthrough video - Microsoft ION distributed identity project - OpenNode fiat integration - Peter Thiel backed Layer1 begins mining operation in West Texas - What Constant Surveillance Does to Your Brain - hardware wallet threat modeling - DoD systems (DISA) compromised, PII taken - Bitcoin's fifth largest hourly price drop in history - FTX election markets - Thought Police in New Zealand Shoutout to this week's sponsors. Cash App. Start #stackingsats today. Use the promo code: "stackingsats" to receive $10 and contribute $10 to OWLS Lacrosse you download the app. Unchained Capital. Head over to www.unchained-capital.com/vaults and check out their 2-of-3 multisig vaults.

Hey there, freaks. It's your boy Marty Bent here to introduce this week's sponsors. Matt and I just had a great rip. Make sure you stay to the end of the ads because we have an announcement. Not an announcement. We forgot something to put into the end of the podcast that we want to make sure you guys get to. This episode of Tales from the Crypt is brought to you by the Cash App. You freaks already know all about them. They're helping you do many things. You can save money at merchants with their boost program. You get a personalized card. They're not giving you a car. They're giving you a card. you can personalize that with your signature little bitcoin sign whatever you go to their partner merchants you turn on your boost you save a little money you get some money back and then

you can use that money to stack sats they're allowing you to stack sats sell sats receive sats send sats on the app it's a great place for stacking sats and on top of that they're also letting you stack slivers of stonks they just introduced cash app investing a few months ago and this allows you to stack slivers of stonks if your favorite stonk is just a little too expensive out of your pay grade but you still want to get a little exposure to it cash app investing is letting you invest as little as one dollar you get that sliver of that stonk and because all this excuse me because it's connected to your bank account all this is possible you can start doing all this right away you don't have to wait four to five day you don't have to wait four to five

days to do this it's going to go right to your bank account you start using the booze program stacking stock stonks or most importantly stacking sacks sats i can't speak right now use the code stacking stats it's one one s-t-a-c-k-i-n-g-s-a-t-s you're gonna get ten dollars when you download the app and then ten dollars gonna go to our good friends at owls lacrosse someone get that bird some help it needs help uh this episode's also brought to you by our great incredible friends at unchained capital all right unchained's uh creating financial services for bitcoiners uh they started out with their vault program uh excuse me with their uh loan program you can use your bitcoin uh as collateral to get a us dollar loan uh it's very

tax friendly and it allows you not to sell your bitcoin friends don't let friends sell their bitcoin if you want some liquidity you can use their loan service put some bitcoin in a multi-sig and get us dollars right away speaking of the multi-sig they have their vault program which i mentioned a little too early in the ad. This is a product that allows you to engage in a multi-sig quorum with Unchained. Unchained will hold one of the keys, and if you ever need them to sign a transaction for you to move it off of Unchained, they will be there for you. It's two of three. You will hold two keys, either on a ledger, treasure, a combination of both. I believe they're working on cold card too, and you can move that off yourself. On top of that, they're working

own open source technology including uh caravan which is their multi-sig uh solution so if you don't want unchained involved in the multi-sig they've open sourced their solution in a web app or excuse me a desktop app you can download that and create your own multi-sigs with that they're also working on slip 39 hermit and a bunch of other stuff including their incredible blog series uh drew uh parker phil joe kelly and crew putting out some incredible content particularly parker's gradually then suddenly a series that's great orange pill fodder to send people

go to www.unchained-capital.com it's www.unchained-capital.com what did we forget? so I forgot in the episode what's up freaks I hope you enjoyed this episode I forgot to mention that Stefan Levera

our boy we love him he just released two episodes in a row that are really important in respect to privacy the first one was with adam gibson waxwing who's done a lot of important privacy work he's a contributor to join market and then the second one was with at samurai wallet one of the leads at samurai wallet was on it and both both podcasts are fucking fantastic you should definitely give them a listen uh very helpful and everyone should listen to them i've been a bit busy they're on my docket to get to very very good we'll be listening to them this

weekend. All right. Hope you guys enjoy this episode. Hope you like new intro music too. bitcoin wins in the world of fiat currencies bitcoin is the victor i mean that's part of the bull case for bitcoin if you're not paying attention you probably should be hey there freaks it's your boy marty bent here on another thursday for another edition of rabbit hole recap matt how we doing yo yo yo yo yo what is up freaks that's half a claw deep already half a claw deep marty wouldn't let me drink whiskey hey you didn't ask i would have brought it down i'm sure you should just know i'm sorry hands are full i brought some mineral water down with me today um yeah big week big week i'm tired uh not a big news week a lot of updates this week

uh app updates a lot of things to talk about uh it was really slow this week yeah it was pretty slow besides our precipitous thousand dollar hourly drop yeah we're gonna get to that that was actually a big price movement in the history of bitcoin feels good that's good i like the i like the big pain wicks and the the glory wicks i like both ways but the volatility keeps me alive the the shorts and the longs need to get wrecked you know everyone except the sat stackers the humble sat stackers the humble the humble stat stackers i am but a humble stat stacker sat stacker excuse me um speaking of that wick it wicked down i forget how low i think it went to like $9,100, I believe, at one point.

Right now we're sitting at $9,557, according to Clark Moody's dashboard. Sats per dollar is at $10,464, back under five, or excuse me, over five figures if you're stacking sats on a dollar-by-dollar basis. I know our boy Fartface has been doing that for quite a while. What else are we looking at here?

The sats per dollar will never be under 10K again. I don't believe it. I don't believe it. Or percentage. Percentage of Tor nodes for the Bitcoin network is 16.56% for the Lightning network. Getting closer. Are we getting further away? It's 39.5%.

We're right there at 39.6%. We've just been flat around here for the last three weeks. Yeah. And Lightning capacity has just been flat. Public capacity, 876 Bitcoin. Yeah. It seems like it's been about flat. and uh what was the last difficulty adjustment yeah so we haven't had a difficulty adjustment

since last week the blocks are coming in slower last week it was 10 minutes 10 seconds this week it's 10 minutes 16 seconds within this uh this block time period um mining epoch we're still in epoch three we're getting closer to the having we're uh 11 758 blocks away and that is scheduled to happen right now around may 9th 2020 nueve de mayo nueve de mayo do you celebrate cinco de mayo only nueve de mayo hey it could happen on any excuse to like drink with friends i celebrate those things i like those there was like a bunch of having parties around the city last time it happened how do you schedule a having party we're gonna very flexibly i think i think we're gonna do beefsteak we were talking about that last night oh let's talk about last night last night was dope

cool uh bit devs meet up uh with a very focused topic though coin joining what uh i was not able to attend what so this was bit devs white paper series right we're fortunate to have bit devs uh which is monthly meetup the socratic seminar exactly and this was uh their white paper series which works adjacent to the monthly meetup. So the monthly meetup was last week, which I unfortunately couldn't attend that. Neither did you. I was rubbing it in.

This one was CoinJoin specific, so the freaks know it was right up my alley. It was just two hours, huge attendance. We had tons and tons of people there. It was at Baruch College last night too, right? Yeah, it was at Baruch. um professor charles hosted us shout out to charles our boy uh and it was fantastic we had a great room great attendance great discussion um did you learn anything bullish i'm bullish

why are you bullish um i'm bullish that so many people cared you know that they came out on their wednesday night and um talked coin join in the open yeah you know we need more of that yeah uh so that was really fantastic to see um i was i was speaking to jay who runs them uh fucking awesome dude and i there's gonna be we're gonna do more follow-up coin joint discussions yeah jay's a very uh lesser known bitcoiner but a fucking incredible bit not in new york in new york he's a fucking legend yes that's true um and i guess everywhere else he's legend too because no one knows who he is uh but uh the man the myth the legend jay uh but yeah we're gonna do more of them and i'm really looking forward to it i'm definitely gonna

keep participating i love i mean we love bit devs but those formats fantastic in general it's spreading too so we went through like all the different implementations and like the history of coin join um the foot gun moments a lot of things that a lot of if you listen to this podcast would have heard in the past um but it was really nice and open forum and there was a lot of people there that were new to the concepts um which is you know it's great to see um and then we got drunk afterwards which is one of my favorite parts of bit devs that's always a great time but yeah it was it was good uh yeah i mean i i don't think there was any there was no like groundbreaking insights or anything it was just a really positive constructive discussion about using bitcoin more

privately and we need more of that that's the beauty of bit devs uh shout out to the montreal community i believe fib put this together they just launched their socratic seminars up there i fucking love all the bit devs forks um those are all the forks you should huddle and like all credit goes to jay on that like he like inspired just tens of different bit devs all around the world right fucking awesome shout out to jay um all right let's jump into it here uh i thought we talked about this last week bisque version 1.2.6 adds support for liquid did we talk about that i think we did i was like on the fringe because i like go back to like i went back february 13th you know you doubled up on the list bro yeah i mean it's not worth the double up it's

worth like a casual mention yeah um bisque liquidity is up this year they've reported they were they did like a release of their numbers and stuff like that i think you can just look up their numbers i don't think they have to do a release but they did do a release um and volumes up 2.6 x and the actual number of trades is up 91 percent yeah max hildebrand shout out max jumped into this in 2018 bisque had uh 5256 bitcoin worth of volume on their exchange their decentralized exchange uh that last year in 2019 they had 13 782 uh bitcoin and mind you that's when the price was rising so um no it was this last year right yeah 2019 oh well it was throughout the year the price was down the price was up the price

was all over the place yeah um their biggest markets are u.s dollar euro bitcoin and then bitcoin the bitcoin monero pair is has gotten a lot of liquidity lately that makes sense right because they've been cut off from like shapeshift and all these other monero has well to go from monero to bitcoin is is easy because um that guy binary fate has xmr.2 uh so you can just send xmr and send it to any bitcoin address you want no kyc or anything but the bitcoin to monero side is is more difficult and that's where bis comes in and actually with lbtc it's the opposite with lbtc you can peg in without kyc you it's hard it's hard to get out you can't get out without i mean you can get out without kyc but you can't

it out trustlessly um or like you can't even really get out in that trust minimized of a fashion bisque enters the fray there and it might make it it should make it a lot easier to go from lbtc back to bitcoin i'm surprised like on the xmr.2 front i'm surprised you don't see that with more altcoins like it seems like you know it's a centralized service but like the guy runs it through tor and stuff it's like the most like if you're running one of these altcoin if you're an altcoin stakeholder like that should be like your number one priority is like being able to to move out to bitcoin pay any bitcoin address right yeah it's weird that you don't see more um altcoins that more of a priority yeah it's fascinating like all the all the the ways in which people

are routing around the traditional system forced to in some cases in a lot of cases um speaking of routing around a couple of lightning apps have been updated in the last week zeus a good friend evan colludis um has upgraded that to version 0.2.1 so go check that out with this upgrade um oh i just downloaded it i thought that was going to take me to a web page um do you know the exact specs i think that one was like a maintenance release um i don't think anything big happened in that release uh he did just recover from the flu oh so good to see him in good health uh not the chinese flu just the regular flu i'm led to believe um rtl update is a bigger update yeah this is a big one the rtl update includes

circular channel rebalancing which i think is a really really fucking cool concept for routing notes um where basically you use two of your channels and you send a payment to yourself and it balances both channels against each other yeah it's sort of a a loop like function but between yourself almost right loop is i mean it is a loop you're making a loop but like lightning loop the service is between on chain and off chain the rebounds and lightning yeah yeah um this is just completely on lightning you just you pay out of one channel it goes through a bunch of hops and then you receive out of another channel of yours and it balances it in the process yeah so to see that in RTL which is you know the best way to run a routing node is fucking fantastic yeah that's

available for LND version 0.9.0 right now and then also available for all LND versions is being the ability to sign messages with your pub key and verify message signature pairs which is pretty cool so circular channel rebalancing isn't live on sea lightning only lnd yes yes only on lnd so be aware if you're running sea lightning it's not there yet and i don't know if you have this on the list but while we're talking about lightning um and new upgrades chris stewart from short bits tweeted out uh i retweeted that but i did not include it on the list happy i had it on top of my mind we discussed this at the bit dev centennial while we were drinking afterwards me and chris yeah so this is a let me find it here it's a cool update it's uh it's really you're

running two you're basically running a mirror node that allows you to uh if your node goes down if especially if you're an enterprise company running lightning uh it allows you to run two nodes in parallel if one goes down the other um just picks up where that where that failed so you can preserve your node id channel liquidity and connectivity to your peers without like losing all your money yeah this is pretty big because like when you try and run multiple instances of lightning um you always run the risk of broadcasting an old state and losing everything because your peers think that you're trying to cheat them yeah so chris uh tweeted out this is a must for large bitcoin businesses using lightning so slowly but surely no this is

redundancy it's crucial yeah it's like raid for lightning yeah and i believe this the way this or yeah this happens is you hook up the mirror node to i'm going to butcher it protege produce protege sql it's one of those databases and then your mirror node basically resets every 30 seconds i believe every minute um basically uh backing up the node that's live yeah i mean look we need more redundancy we need easier backups like these are big things for lightning um good to see staying on lightning sea lightning version 0.8.1 has been released by the elements project this had a weird update to it where i guess it's not weird it's kind of useful just something i never really thought about uh you can pay someone while you open the channel

interesting i open a channel to you and i also pay you a hundred thousand sats at the same time what is that trying to incite reciprocity i i i do not know what the reasoning is it seems like maybe it could be a privacy improvement i i it was something that just completely caught me off guard well if you're out there working on sea lightning and you have a better explanation of why this is happening let us know tweet at us it might just be like a why not you know like if i'm opening a channel to you anyway and i plan on paying you might as well pay you during the channel opening that makes sense yeah maybe yeah because that happens a lot like i open a channel with the store or something because i want to get a payment through quick or like it happens a lot

for a regular user i would imagine yeah you know like you're you're you open a channel with a new game that you want to send some funds to you might as well just do it in the opening transaction put their release notes it says something providing a brand new way to lose money with an exclamation point right gotta be more excited about a brand new way to lose money uh so on top of this invoice route hints can be overridden using exposed private channels try setting uh to close brackets to eliminate all of them to fit your invoice in twitter messages ooh invoices and twitter messages well i've never used c lightning so disclosure but on lnd it's optional to include routing hints so i usually don't include routing hints when i send an invoice to someone right routing hints

are like you tell them the the end part of how to get to your node you give them clues to the path to get to you to make payments easier and especially as fuck you guys um if you have private channels important if you have private channels uh you need the routing hints otherwise the person who's paying you doesn't know you have that private channel at the end that that you're actually receiving the transactions through that makes sense um so my read of this of at least the notes is that they didn't let you disable the routing hints before and now they let you disable them but with lnd you have to actually optionally choose to include them that's good opt-in yeah so like i never had the twitter invoice issue um on top of this the new c lightning implementation

includes wallet which are all transactions that now set an end lock time making them blend in more with other wallets so privacy advancement there yeah you just want them to fit into the same heuristic uh i i know the end lock time is what core has set so they might be mimicking that yeah that makes sense yeah i think core has it set to end lock time one slowly but surely um and this was really cool i really like to see this from cold card moving away from lightning right now cold card firmware version 3.1.0 add support for hsm mode called ck bunker and this basically begins the process of open sourcing a bit go like service where you can basically create permission trees from your cold card cold card only right now it

seems and create unique signing schemes if your business looking to move funds and stuff like that yeah so hsm stands for hardware security uh modules so basically um the idea is like you have a a secure device that is in charged of signing all of your important things um this is used for like tons of different like encryption stuff uh signing processes with this you actually you by putting the firmware on your cold card your cold card can work as like a cheaper hsm like not as secure but pretty secure and you like set policies for it um you know only send up to a half a bitcoin per day only send to these addresses stuff like that and it is compatible with psbt in general so if ledger or trezor releases when they

eventually release psbt support you could actually use it with one of those um and then you send it to your remote cold card for signing in like a multi-sig scheme. Just very useful to have. And we kind of teased this in the Square Crypto episode that it basically allows anyone to be their own BitGo.

And at the same time, this also added user modes so you can have different users. So you could actually theoretically use this mode and be BitGo for you could be uncle jim you know uncle jim could be running basically bit go for friends and family um and act as a second signer while not actually being able to move any funds um just to approve the move yeah no it's uh i thought this was pretty this is pretty big right like

in terms of open source infrastructures that can be built off of this yeah i mean it's one of those things that's you know no one ever really talked about it until rodolfo did um i'm like how do we not have this this is really great uh and you can be really creative with it you know it's a nice simple tool um the link we have has a video demoing it uh so check it out yeah if you want to go straight to the site at ckbunker.com the other thing is this firmware this firmware first of all the hsm mode isn't compatible with the mark ii the second cold card um the the first cold card if you if you put this firmware on the first cold card the mark one it bricks the cold card it's like make sure you don't update your mark one with it uh he's not he's just they're

discontinuing up updates to the mark one be aware be aware last firmware that's the one with the touch buttons or whatever and it's just not capable of handling any of it doesn't i think it doesn't have enough ram um so uh yeah you're not going to get hsm mode on the mark 2 because it's not possible to do it and the mark 1 if you do it you brick so just make sure you don't do that um be aware and make sure you have your your seed backed up just in case you do brick it which is like not great like what like the mark 1 was released two years ago or something um it's not great that the upgrades have stopped uh but even with the last firmware that it had it's reasonably secure i feel like if you're storing like any kind of large amounts of money like you

should be upgrading them anyway right yes um so beware uh it's not like the it's not the best thing but it's not like i i would never use a mark one anyway just because the touchscreen buttons are just and also like on the mark 3 like you can show the qr code on the screen yeah that's fucking cool so much better um this is cool i didn't realize christopher allen was working on fully noted so he's working on the computer side okay on the client side so so he's working on the you can with this simple install process it sets up core for you runs it through tor and gives you a qr code that fully noted can then scan okay so it's and so the combo of the two is what makes it really powerful because then fully noted you have on your iphone um and you're

able to use it with your full node that you have at home that you set up um through i think what is this company blockchain comms yes i believe so um through that program and then so you have core running through tor there you connect it to your node through your through your phone and then you could use your phone as a multi-sig key and you can use it with psbts to sign um and i believe you can use core as well um in that multi-sig quorum and a hardware wallet if you if you so please yeah chris's uh company or project is blockchain commons uh comments not comms and well the twitter handle is blockchain c-o-m-n-s which is a little confusing oh it looks like Yeah. Christopher tweeted out that Fully Noded 2 allows you to use your own full node over Tor, easily installed with Bitcoin, stand-up app or Linux script, and two or three multi-sig.

Only iOS currently. Successor app to Fully Noded version 1. So they're looking for people to help test that. So if you are willing and able, that new upgrade is available on TestFlight right now. Awesome. Have you played with Fully Noted yet? Not yet. I've got to play with it. I'm always a late adopter to this stuff.

Sorry, freaks. I'll make sure I play with it before next week, and then we will discuss it again. We don't have any shout-outs this week, right? Oh, we do. Thank God you mentioned that. I also wanted, you guys might have appreciated our new intro that we played with this week,

and that was at Clockwork Underdash Pryor who made that. What a boss. that's uh and that's the that's like a a cut up of the clip from cnbc that we're talking about a few weeks ago last week we were talking about it last week and we said i was like i would love if that clip was the beginning of the of the podcast and he clipped it out for us so we had to run it um all right here's a shout out it's a question i believe um i'm not gonna read uh the first half because it's blowing smoke up our asses. I'm blowing smoke.

I mean compliments. I appreciate the compliments. I don't want to blow smoke up our ass on the air, though. I'll take some smoke up my ass. Is it a good compliment? Uncle Marty and Humble. All right, we're going to do it. Uncle Marty and Humble Matt, you guys rock.

Thank you for all that you do. I really mean that. And you guys have helped me so much as guides in my own personal journey. Don't trust us. Don't trust us. Verify. That was me partying on the shout-out. I was going to say, I like that he told us not to trust ourselves.

No, no, no. i was saying well anyway the smoke really tickled my butt and i liked it uh this this uh this shout out has a specific question for the two of us and i hope he hopes or she uh can help him and his or her freaks uh out with so if you purchased your sats on a kyc exchange and had them on a hardware wallet currently but have unfortunately not used good privacy along the way you can please can you please provide a step-by-step guide with best practices to anonymize these stats from where we currently stand if possible any help on this would be incredibly appreciated keep up the incredible work fellas we love you um he threw in that

pica so i had to do it he threw in the pica as part of the shout out yeah um yeah so if you have I'm assuming the assumption I'm going to take from this question is that you have bought Bitcoin on a KYC exchange and it's simply one hop away, potentially, in a hardware wallet. This isn't a bad position to be in. My assumption is that he's also using Ledger Live or Trezor's web wallet instead of his own full node at the same time. That's probably a good assumption to make as well.

Which doxes your addresses to their servers, which is probably the situation that most Bitcoiners, a lot of Bitcoiners find themselves in, if not most. if not most of our of the listeners probably most of the listeners um look anonymity is a strong word in bitcoin um i'm not sure if any of us can be anonymous in the current state of things but if you want to improve your privacy the steps are relatively simple um you want to first of all you want to run your own full node um that and connect to it with your your hardware wallet so that's either going to be through electrum or wasabi wasabi is probably a lot easier wasabi is a lot

easier it's the best ux you don't have to run an electrum server so you run core on your computer you run wasabi on your computer it's automatically pulling blocks from there you connect your hardware wallet to that um ideally you get a cold card or something like that and create your keys offline well yeah the easier way to do it is to to just buy a new hardware wallet um but you could also just add a passphrase to your hardware wallet and if you add a passphrase it gives you a whole new set of addresses you don't even have to add a passphrase

you can just open up a new account you do because you do because your xpub is doxed to ledger or trezor already so you create a passphrase and sort of create that onto the bus gives you a new public key, gives you a new set of addresses

and then you go through coinjoin slowly and then you send them out back to the new um device the the new device or the passphrase wallet right so you have new addresses and you send them out to individual addresses one utxo at a time post mix yeah um and then from that point on you just always um use your full node to access it and you always uh whenever you spend you go through another coin join to like isolate that wallet from any kind of um and is this a perfect solution no that's not a perfect solution but it should improve your privacy significantly

and it definitely can't hurt your privacy no thanks for the shout out i hope uh i hope our answer was helpful and you can dm dm dm dm if you have more questions yeah don't be shy don't be shy and btcprivacy.org extremely useful resource by our boy 6102 bitcoin yeah i've been chatting privacy.org i've been chatting with 6102 he's going to come out with some uh some good coin join um content soon which i'm excited to see i took a very risky approach because the dot org domains was just purchased by some like hedge fund you saw that no and they're like trying to raise the prices of dot orgs um so there's like some good dot orgs you can get so i bought btc privacy and redirected it to 6102 site that's uh so we'll see if they jack up the prices on me but

right now btc privacy.org that's coming from your local domain name hoarder mr i don't know what you're talking about i'm not a hoarder i'm a hodler hodler holding domains is using domains marty that's true okay that's true is this squatting the squatting the use case it's not squatting um our boy btc sessions from bull bitcoin uh created my node btc.com and it's a build your own no he didn't my node btc is the website but he used my nodes my node software he walks you through how to build your own node using my node um in the video sorry for the slip up there and uh it's it's a fantastic video walkthrough i think my node i still haven't used it yet i know i have to yeah sorry yeah the the dude's down in uh alabama or the right and then i said you

doxed him and then you're like no it's public yeah yeah um my node's great like you can run Electrum. You can run Electrum Personal Server on it. You can run Whirlpool on it. Your own Block Explorer. It goes through Tor. It's a great little display. It's pick and choose what you want. RTL. And Dojo support is coming soon.

So you'll be able to run my node, run Dojo and Whirlpool on it, connect it to your Samurai Wallet on your phone, and you get a full stack there. You can also connect it to Wasabi if you want to connect it to Wasabi. And it's, yeah. It seems fantastic.

I have not used it, but a lot of people I respect have been recommending it. And this guide shows just how easy it is to set it up. So you can just buy off-the-shelf parts, Raspberry Pi 4, an SSD, a case for it, an SD card, and you're good to go. It's like $150 all said and done, plus $99 if you want the premium features that my node offers to them, one-time fee. So you're talking about like $250, $225, all said and done. You have your own node. You could be Uncle Jim, you know? and i'm happy to see our boy ben getting back into the uh the video walkthrough game he back

in the day he did a bunch of how to's on youtube got away from it for a little bit happy to see him back into it look speaking from experience it's fucking frustrating the shit changes so much like this this guide he showed this thing's gonna be outdated in six months so guys go view it use it you know before it gets outdated to where our buddy ben yeah shout out ben shout of bull bitcoin um this is cool something that's been uh teased for a while but it sounds like it's finally coming to market excuse me losing my voice here our boy csw csu wildcat yeah uh he's been working on an open source uh for microsoft importantly microsoft is uh basically funding the team that he's been building and they're building basically an open source identity

um identity layer for distributed identity layer yes did did did and um yeah so this is something it's something that we were talking about christopher allen uh earlier this is something that he was fascinated about too identity on a second layer um and again this is not like tying your it could be if you wanted to tying your your name to uh the blockchain it could be a pseudonym or something like that oh i didn't include that in the list we got to talk about that later okay we'll talk about that later what's that do you see the decrypt uh like docs a bunch of people using the ethereum name service yeah we'll talk about that this is not that this is like you know digital passports that you anchor into the bitcoin blockchain and microsoft is super

bullish on bitcoin in terms of security um there's no other chain that they've they really considered to anchor this data into because bitcoin is the most secure by far um so so yeah Basically, you could have like, we could have our ID systems instead of the completely centralized platforms that they're on right now. They can be on this more open platform and services can interact with it. And it should give people more freedom to move between services and stuff like that because they'll have this open identity. Yeah. And it's something, so CSU Wildcat, his real name is Daniel Buckner. I'm pretty positive it's public, right?

Yeah. Yeah, it's completely public. It literally says it on Twitter. yeah so he's been working on this and he'll always be csu wildcat to me yeah he's uh he's been making the argument this is going to help help develop a fee market in some capacity there's something i've been talking about a lot this week well we need like if you want if you want like a sustainable fee market you need to have like reserve demand that's always um and this argument has been made up with with both coin join and lightning also provide this um where you have

this reserve demand we're like just constant just like people constantly want to open channels people constantly need to coin join people constantly need to anchor their identity into the bitcoin blockchain and should cause um more sustainability in terms of fee market instead of it going from like you know one sap per byte to 100 sap per byte back down to one there'll be like a plateau that it hits right whereas like all those reserve transactions are trying to get processed yeah that's a yeah it was a big topic on on my mind this week the fee market a lot of people already clamoring for uh an inflation rate on bitcoin because they don't think uh the fee market alone tail emission tail emissions what what do the ethereans call it um

it's a minimum budget no minimum viable security minimal viable issuance and the other thing daniel said uh which is interesting is that he thinks that it's um from from a perspective of the amount of security they get it's extremely cheap for them to use the bitcoin chain yeah all this all this thought about bitcoin being too expensive to use and microsoft thinks it's way cheaper than if they got those kind of security assurances in any other way yeah i remember it's funny to see microsoft come back to bitcoin because i remember back in the day in new york like the couple of the first quote unquote blockchain meetups i came to the city were like block stack talking about how azure microsoft azure was anchoring into their systems and thinking

about building it on something like block stack but now it seems like they're coming back to bitcoin well azure had a tool where you could just like build a blockchain yeah like a bullshit you know enterprise blockchain like instantly on their servers and also microsoft you know power to them uh they were one of the first to accept bitcoin payments i remember one of the big companies i think that was like 2015 or something yeah um you guys you can look back on my twitter there's a tweet where i'm like you can buy master chief with bitcoin now like bullish as fuck really wasn't that bullish but it's a nice little legitimacy like did i ever buy an xbox game with bitcoin nope no you know i think they use bitpay like hey never fucking used it i thought it was

really bullish but you know they microsoft they did it so props to them i haven't haven't seen anything out of apple uh pertaining to bitcoin or blockchain at all no no they're very conservative yeah that makes sense yeah but we have you know we have some moles in in apple pay team shout out to our apple pay moles love you guys uh let's get bitcoin as a funding option right for our credit cards without numbers on them or whatever oh well actually fuck we're gonna bite it we're gonna bite our tongues literally the next topic it's open uh open node it's not really apple integrate it's like kind of all right um so open node and apple pay are no it's open node

is helping they're working with wire so wire lets you buy bitcoin with debit card or apple pay and now wire is integrated into open nodes merchant services so if you're an open node merchant when it shows a Bitcoin invoice where you can pay with Lightning or on-chain, it also says you can pay with Apple Pay or Debit Card. And if you pay with Apple Pay or Debit Card, it automatically converts it into Bitcoin.

The merchant receives Bitcoin. So you can be a Bitcoin-only merchant and you can accept US fiat payments directly integrated into the OpenNode payment flow. Very similar. It seems very useful. Yeah, useful. Very similar to Strike and Asher.

Not exactly the same. but there was some inspiration was my guess yeah um but uh it's important to realize here like i they're gonna have to deal with chargebacks and stuff and credit card debit card fraud i think that's why they're using debit cards and not credit cards um maybe credit card fraud is higher yeah it's easier to charge back right it's easier to get a credit card company to just cancel something yeah so and apple pay i guess has has way less fraud risk because you have like face id and apple has all their kyc and shit like that that they know who you are um so that's why apple pay is also accepted but it should be interesting to see unfold i you know safe

mentioned this on twitter maybe like a year ago in a thread that i was in with him um and i fucking love the idea the idea of like a reverse payment processor which is how i've described ellen strike as well um it's very interesting to me because as as a bitcoiner like if we could just a pod for instance like if we could accept fiat payments and get paid with bitcoin i think that's more preferable to us than going into a bank account right like i would rather stack sats in that situation yeah um so it's nice that merchants have that option and especially if you're an international merchant um it could open up a lot of possibilities with accepting fiat from from u.s customers i don't like a little shill here i've been testing out the escher app

over the weekend and uh with the fold app particularly i've been taking a lot of ubers and buying uber uh gift cards via fold and if you just hook up your your debit card you get less sats back and then if you pay via lightning so with escher which i have my bank account hooked up to i'm able to pay lightning invoice with that so i don't have to spend the sats that i already own i'm getting more sats back which has been a pretty cool experience yeah because if you pay with like credit card then fold has to eat the credit card fee but if you pay with sats then it transfers the fee over to you a little bit because you pay the usher fee or whatever but it's still way less and you get better cash back yeah sats back um obviously these services have

strict KYC to late KYC so if you're using them make sure you're centralized and they're going to be heavily regulated and we'll see how it all unfolds but more options the better yep yep yep yep shifting to mining big news

week for the layer 1 team they've officially started mining I believe they have 2 megawatts up and running that's it I think that's what they have live right now I thought it was higher than that maybe five regardless uh the peter teal back oh two and a half two and a half yeah

oh no multiple that have two and a half okay so they brought up like 10 or something okay so they're live now um several mining containers each at two and a half megawatt capacity have been deployed with liquid cooling technology to combat the high temperatures in the west texas region cooling technology it's actually important uh so this is something we've been talking about a lot uh mining shifting uh to the states something that i personally think is an issue of national security in the long run so it's good to see these guys uh finally up and running uh shout out to alex uh legal in team uh doing that in west texas have some pretty lofty projections on the amount of hash rate they can get by the end of 2021.

It'll be interesting to see if they can hit those goals. I hope they can, but they are pretty lofty. They don't have to hit 30% to be significant. 30% is a ridiculously high number. If they're 10% of the mining hash rate, that's pretty fucking massive. Yeah. Shout-out to the miners turning on North American soil. Shout-out to Layer 1 and team there.

What does constant surveillance do to your brain? it fucks up your brain man it gives you like ptsd style fucking shit so this is what we're referencing here is an article on vice um titled what constant surveillance does to your brain technology is getting more adept at tracking our moves and anticipating our choices and being watched all the time can make us feel anxious i know me personally i feel this like my wife and i will be talking about something saying something very specific and we'll get ads serve to us via instagram instagram's always the worst with it and people self-police and they feel like they're never alone in their thoughts you know and they're not able to um be a real person

you know and it it has knock-on effects that compound over time that just like really fuck with people um it's what big brother wants and it's not appreciated it's a mental health issue yeah it's a mental health issue they want to control you they want to control your thoughts that's what 1984 was all about maybe the thought police are here maybe in countries with socialized health care we will have less surveillance issues because they will end up having to pay for it i uh find that very hard to believe that is matt's positive swing for the day but now be careful like this shit the thought police are actually on the streets now i don't know if you saw this uh somebody forwarded to me earlier this week there's a video out in new zealand i believe

of police officers showing up to somebody's house and harassing him about comments he made on facebook or something like that and this was in china new zealand oh because i've seen it it's happened in china yes but now it's happening in new zealand it's fucked up so they knocked on this guy i'll try to find the video if we can share them they knocked on his door and basically said uh why like do you think it's a good idea to have these thoughts and to be saying them online is a productive uh think and i believe they did say if i recall correctly uh think of the consequences in the future um so they literally that's like some mafia's shit exactly it's like some gestapo bullshit man i mean at a lesser extent this is what twitter does every day right

when they send you those emails and they're like we've locked your account until you delete this tweet yeah but now they have actually people with guns show up to your house that's where well do new zealand police have guns i think they might i know they're they're trying to take the guns away from the citizens or may have already done it successfully it is true after that they handed it over right away in a crisis yeah crisis is guys crisis is you had we had september 11th we got the patriot act um they in china right now they have the coronavirus they just completely clamped down on their population in new zealand they had the christ church shooting and they just took everyone's guns and everyone just handed them over like people are really easy to manipulate

during crisis is crises crises and you got to be aware freaks you got to you got to be aware because this is going to keep on happening yeah we got fucking bulldozed with the patriot and there's no going back after it happens the fucking floodgates open you know a lot of this extra kyc we see comes directly from that patriot act so fuck this shit man when they originally signed the patriarch they're like hey we're only going to get metadata on terrorists right and now no u.s citizens no u.s citizens and now they're using social media metadata to help map out who's got guns i think how could it be bad marty it's called the patriot act are you not a patriot do you not care orwellian bullshit man the 1984 they want to control your thoughts the patriot act

is a orwellian wordplay never gonna get rid of it be aware no we can get rid of it speak up speak up more people need to speak up reverse the thought crime or not thought crime the thought manipulation that's happening to you at least try to and you can do that by thinking critically about this stuff um so i thought this was a really interesting tweet by rodolfo um yeah something important to touch on just like hardware wallet threat modeling in general um what are you trying to protect against what are you worried about what are your biggest threats um a lot of people tend myself included tend to jump to these like super complicated threat models where like people are like storming into your home and your office and like five different

locations like all at once and you gotta like worry about it but really at the end of the day like what are you really worried about you're worried about like basic burglaries you're worried about like a maid or employee or a family member or a friend getting their hands on a hardware wallet or or your seed phrase yeah um you're worried about losing it um you're worried about traveling with it uh when you travel with it you basically should just assume that anyone when you travel that any of those security guys can just have physical access to anything you fucking have um and then you got to plan accordingly uh based on that threat model um and and this is it's a very you know it's a hard topic because it's a very personal

um that's why that's why multi-sig is it's a very personal thing though it depends on what your personal situation is and what you're trying to protect against yes i think multi-sig helps protect against a lot of these attacks though yes absolutely yeah um and then like the other thing i wanted to mention is just like with all this shit going on you guys know we love cold card we think cold card is the best hardware wallet on the market um but if you look at the top three you look at ledger trezor and cold card um i don't think there's been a single case uh where one of them has been actually compromised like in the wild uh maliciously um so jameson yeah not well jameson other than five dollar wrench attacks like jameson wrench attacks you

know they come in they torture you they beat you up and they ask you for your shit um that happened to son like the last that's happened a bunch of times 2017 bull run i believe somebody's like somebody's best friend did it to them yeah but like hacks um yeah we have one in new york too um but in like in terms of hacks um i don't think any have happened but if you use a trezor make sure you use a pass raise make sure you know it's a very strong pass raise uh because it is easier to pull those seeds out now on the trezor um and just be aware just constantly evolve your threat modeling and and your security but but also don't go too paranoid that you fucking shoot yourself in the foot yeah make it too hard to get keys yeah um the department of defense got wrecked they can't

even keep their information or their own personal day what the fuck you reported on this what happened what the fuck i they don't tell us what happened they just sent out fucking letters to like a bunch of dod personnel and they were like uh your information may have been compromised and we won't tell you by who or what information or whatever and we're going to give you free credit reporting i'll read the free credit reporting fuckers so this is dated uh february 11th so nine days ago dear sir or madam his letter is to notify you of a potential compromise of your person that personally identifiable information during may to july 2019 time frame some of your personal information, including your social security number, may have been compromised in

a data breach on a system hosted by the Defense Information Systems Agency, DISA. While there's no evidence to suggest that your personal information was misused, DISA policy requires the agency to notify individuals whose personal data may have been compromised. We take this potential data compromise very seriously. As a result, we put additional security measures in place don't worry they got additional security measures in place now to prevent further incidents and we are adopting new protocols to increase protection of all personal identifying information in addition deesa will provide free credit monitoring services to you at no cost it's free that's a redundant that's a redundant line there somebody who tries to avoid redundancy in sentences

department defense fucked up here information concerning credit monitoring including how to sign up for the service will follow in a separate letter matt just got my laptop wet open up a claw if you have concerns about the identity fest you may wish to review the recommended actions outlined in the federal trade commission's website send them to website you may also wish to place a fraud alert on your credit report the tldr is we fucked up trust us don't verify exactly and we're not going to tell you what what happened or who took your data all this kyc information all this private information that they make us give them and they collate in these large

ass fucking databases. That shit is even less secure than their own. This is like, this is Department of Defense personnel. This is like the most important information for them to keep secure. They can't keep that information secure. So, you have to just operate under

the assumption that all your private information that you share with these third parties is going to be leaked, hacked, compromised, bought, sold, eventually. It's gonna fucking happen. And if you don't If you don't take precautions now, like anyone who does compromise that data, whether that's the Chinese government

or the Iranians or the Russians or whatever the fuck it is, are going to be able to track all your Bitcoin transactions. They're going to be able to track all your other personal information, photos you keep in the cloud and shit, messages.

All wrecked. Come on, guys. You got to take it into your own hands because clearly they don't know what they're doing. We're going to keep pressing this issue because it's fucking... It's unacceptable, honestly. like it's it's like how can you try to force these laws on people and these compliance this

compliance uh on people and it'd be completely unsafe like it doesn't make any sense it doesn't compute in my mind yeah i mean i there's no such thing as perfect security but like if you're gonna fucking take all this information like you better keep it secure yeah uh otherwise you're just fucking hypocrite and you're just putting all your citizens at risk yeah which is what exactly is fucking happening right now your citizens and the people protecting your government as well they're not even protected uh we mentioned it excuse me burp there i mentioned in the beginning episode our boy yassin amandra pointed out that uh when was this yesterday or two days ago yesterday um so yesterday marked bitcoin's fifth largest hourly price drop in price history

and around $1,000 drop in under an hour. The only other time we've seen a greater dollar price drop is at the December 2017 peak data via CoinMetrics. So that's just a data point there. I heard rumors that it might have been a fat finger on Coinbase or something like that. I'm not sure how reliable that is. I don't know. This is Bitcoin. I fucking love it.

Yeah. I mean, it was probably like fat finger combined with like cascading fucking margin calls. Margin calls, yeah. speaking of margin calls how many people got margin called on bloomberg last night so the ftx election markets we've i think we just discussed this last week we did we did um is in full force um and we're seeing how it looks to have like a pretty liquid kyc free prediction market um that you could use leverage um and i think what did i say what

Bloomberg, there was a debate last night that neither of us watched, and Bloomberg apparently did poorly per FTX because he went down 28% overnight. Yeah, I think Elizabeth Warren. Went up like 50% or something. So this is what's kind of interesting, I mean what's really fascinating about prediction markets in general is that you get real-time data that's way more accurate than other methods

because there's skin in the game. yeah um we you know if you go on to cnn right now which i would never do and i haven't been on cnn for a while i would imagine what they're saying is you know someone says their opinion about who won the debate someone says their opinion they're like we'll wait to see what the polls say in two weeks or whatever i wouldn't be surprised if those polls are very representative of what we saw in ftx literally an hour after the debate ended or during the debate and then you know immediately following yeah that's crazy to see play out um very reflexive and they had i only saw clips and it was just basically elizabeth warren saying this dude has a bunch of

sexual assault lawsuits against him the only politics i'll talk about is fucking election markets yeah and how trump probably owns bitcoin don jr definitely does um circle back to ens so ethereum has this ens system somebody actually i'm not gonna dox up who did it i actually can't call from the top of my mind but somebody offered us the tftc 21 ens uh earlier today did they try and sell it to you yeah someone tried to sell me tftc and stacking stats you know like fuck you like i'm not fuck you that's fine you keep it yeah no that's what i said i was like yeah i'm not interested i'm not gonna ever hold eth so we don't need an ens but anyway um we've talked about this before on the podcast um basically ens lets you link an address to a a readable a readable

english name which a lot of people use their twitter handle or their real name for and you can choose which address it goes to. But what is often overlooked by even diehard ETH heads, ETH founders, is that the address that you actually purchase the domain with is also publicly viewable. And that is where Decrypt ended up doing the best, you know, the most doxing happened through that address that they used to purchase it. So even if they were smart enough to create a new address um to use with the ens uh the address they purchased it with was an address they've used a shit ton in the past and you're able to see their balances you're able to see every transaction they make um and let's remember here ethereum using an account based system they

don't use the utxo based system of bitcoin uh so by default every transaction goes to the same account number same address um so you see everything you see all the tokens hold held all the transactions that have happened um and this is just another data point that gets added into all the private data that's being leaked to be fair both on bitcoin and ethereum but on ethereum it's it's much more substantial i mean people aren't running their own nodes they're using metamask they're connecting it to ens they're using kyc services then they're going into like quote-unquote defi right and doing like compound loans and all this fucking shit um and there's a shit ton of information out there the uh the profiles they were able to put

together of some pretty prominent people um actually know bobby young i've met him a few times uh founder of coin gecko his was interesting they were able to cross reference so that you're basically able to create a profile of these users of bobby was tweeting about a meetup that he's going to go it wasn't that he tweeted about the meetup he well so he tweeted about the meetup and then they were able to prove via the ens system that he was actually there because he was buying guy inside no no that's not so i thought that's what it no it was it's actually kind of cool because it was a cool it was a cool idea for a dap that so it's an idea that i've thought of in the past as we've run bitcoin citadel which is the idea is that our boy josh away slice on twitter

um doesn't like hosting free events he thinks people don't show up if it's a free event so they have this dap called kickbacks and the idea is you put in amount of money you you pay them eat or die you pay them die before the event so two weeks before the event bobby ong paid them die right and it's registered on chain to his ens right so it's completely publicly visible that's the issue but this is where the cool part you pay the die and if you show up then you sign the transaction with whatever key they give you when you get there and then you get paid the portion of the deposit of people that don't show up so then he got paid he got he paid 10 die to do the deposit that said i'm going in two weeks and got and then when he went he got paid 19 die because

certain people didn't show up so they were able to both know he was going in two weeks and then that he actually verifiably went because of the kickback transaction so the actual concept of the kickbacks is like a cool you know like i could like see meetup doing it with fiat like i that would make sense to me yeah no it's um yeah but like the profiles that you're able to to produce with this system it's pretty scary they were other people were making business deals on a mean they had a mean from spank chain or whatever like they saw his business deals on the fucking transaction there was someone else they saw their salary they could deduct how much salary they were making they were getting paid in tokens stop watching porn kidding yeah half kidding uh no yeah just

be aware uh if you're if you're using that ens system um apparently they're coming out with mixers to fix this tornado cache i believe it's called or something like that um we'll see we'll see if it wants to be serious about privacy like i'll believe it when i see it tornado cache looks kind of promising from the outside point of view um but everything they've done up until this point has been the opposite so we'll see we shall see um that's all i got right now that's the list anything to riff on we're almost exactly an hour in um so two things uh bloomberg released like a crypto statement uh that people were like you know doing their old hard bullshit about um it's basically like a non-statement and then you know he's like we want a sandbox for for tech and but

we need regulations for fraud crime and stuff and blah blah blah so it was like really a non-statement I don't think that was bullish or anything. It doesn't really matter. And then in that same vein, I believe FinCEN followed up after Munch and Butt's comments last week and said that they're unaware of the new guidelines. And if there are new guidelines presented, they will go through a process of acceptance. So nothing set in stone. And FinCEN isn't even aware.

So beware. Yeah, I think you're just talking big game. Look, the Trump administration is inept. so we'll see if they actually can pull anything off. I'd be more worried if Bloomberg seems like he'd be more up to task to regulate the shit, like Elizabeth Warren or something. And we've long held on this podcast, at least I have, that Hillary Clinton was born to regulate the shit.

Hopefully Trump continues to be inept in that regard. The other thing was Mark Yusko was on CNBC yesterday. yesterday right after the thousand dollar drop stack your sats baby yeah and he dropped stacking sats which is cool he's like stack your sats and build your portfolio which is like the nice boomer integration of the stack sats meme uh it's good to see that on mainstream media the other thing is um they mistitled the bottom it said bitcoin drops a thousand dollars after hours dan held point out we don't have after hours in bitcoin 24 7 the third thing is um i don't know if i'm allowed to say who one of the new york city bitcoiners stood outside the cnbc

thing um and held a bitcoin fixes this sign behind him yesterday yeah there's a i believe uh surfer jim tweeted that out yeah i don't think we're i'm we're not supposed to say who who held the sign right i'm i'm not gonna i'm not gonna disclose who anyway he's our boy and it was fucking badass yeah um something i saw the citadel crew talking about you want to talk about what you guys are going to do with the um overflow funds yeah so i mean going back to this kickback thing josh refused he thinks there always needs to be even if we get the food and drink for the workshop sponsored you need to people need to pay the 30 just so that because we have limited capacity with the workshops we can only do like max 30 people we need to do hands-on like

you know you want it to be an intimate experience for everyone that everyone gets a good experience so we're very much capped on the amount of people we can have and if um if people don't show up it sucks to have like 20 people there and we could have fit 10 more people and the people didn't show up um so we do charge a little bit of money right now 30 is what we've been doing the citadel workshop in san francisco right now is sold out um but so then it's like but we're not running it for profit we're all volunteering so what do we do with that money um the plan is we're going to start bounties um for very specific things it's very very specific upgrades and finishing touches on existing software that we want to see and devs that successfully complete those bounties

we will pay out the funds to them um so um that's the plan stuff like you know like uh one big one for me is like i want people to be able to run join market on their mac with just core and a dmg file just nice and simple you just run the two things you have no command line you don't do that stuff like that um i think it would be really great to see um yeah i love it dude so yeah we're all about giving back here at tftc um go buy btc pay server hat we're gonna uh what we're gonna do with the proceeds to that is buy a bunch of the hats for got it i'm losing my voice there for rockstar dev to hand out uh during bitcoin 2020 yeah we got to make sure we order those but their turnaround's pretty quick yeah it's pretty

quick yeah so we might as well try and maximize how many we can bring them yeah tftc.io slash merch um help buy hats for the people of bitcoin 2020 it's a fucking dope hat i wear it everywhere i brought it with me today it's sitting right there yeah um yeah that's all we got anything else um no i don't have anything all right stay humble stack sets peace a lot freaks