Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Thank you very much for having me. I'm visiting with my family and it's an honor to visit your beautiful town. We're spending over a week here so if there are any things which I absolutely MUST SEE please let me know.

State of

Bitcoin Cash 2019

Gabriel Cardona

developer.bitcoin.com

@cgcardona

gabriel@bitcoin.com

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

My name is Gabriel Cardona. I’m Director of Developer Services at Bitcoin.com. Today I'm presenting on the State of Bitcoin Cash in 2019. I'd like to consider where we are today and to project forward to where we're headed in the future. But before we do that let's reflect on how we got to where we are today.

Looking Back

How we got here

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Looking Back. First let’s take a look at how we got here

Humble Beginnings

The journey of a thousand miles...

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Bitcoin was originally created as a Peer-to-peer Electronic Cash System. For the first time ever offering the ability to send any amount of money to anyone anywhere, nearly instantly and nearly for free. Censorship resistant digital cash for the Internet Nation. Sitting where we are today with the influx of blockchain technology and all the whiz-bang features it's easy to forget the purity of that original vision.

But if you can internalize that money is critical to the human condition and put yourself back when bitcoin emerged during the financial crisis of 2008. You can remember how impactful it felt. It has properties which could make it more than the best **money** the world has ever known. It can be the first value transfer network the world has ever known.

Satoshi Nakamoto kicked off a Financial Revolution which could overturn institutions nearly as old as humankind. For that I would like to express my gratitude to Satoshi, whomever or whatever he, she or it may be.

Transaction Volume

Network Effect of Value

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Bitcoin Cash was born from a confluence of events. Starting in 2015 it was clear that eventually the 1MB blocks would fill up. Many highly talented people proposed many solutions and there was a scaling debate that raged from 2015–2017. Segregated Witness, also known as SegWit, which was pitched as both a scaling solution and a transaction malleability fix, was scheduled to go live in Aug 2017 which acted as a tipping point leading to the fork away from Bitcoin Core BTC and in to Bitcoin Cash BCH on Aug 1st 2017.

We think of Bitcoin Cash as not just money of the Internet but as the Internet of Money. A value transfer network where network effects apply. Here you can see the number of txs per day squared lined up with the market cap. This chart is logarithmic so 45 deg is exponential. You can see they line up nearly perfectly until 2015 when the blocks start to get full at which point the two lines diverge. Of course correlation does not imply causation so take from these charts what you will

In my opinion not scaling the blocks has stunted blockchain technology and the impact that it could already have made on Earth. I believe that had we scaled the blocks then the trend lines which you see here would have continued and even accelerated.

Battle Hardened

Social and Technical Attacks

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Bitcoin Cash has been battle hardened on multiple fronts both social and technical. I've worked on many projects in my career and never have I witnessed an Open Source project with a larger amount of disinformation. Online dialog is incredibly aggressive and Bitcoin Cash proponents take their share of heat.

We faced the BSV fork with so called Hash War and we've also faced a zero-day exploit attack during the last May 15th upgrade. Attacking BCH isn’t free. Identifying 0-day vulnerabilities takes time and focus from a talented engineer. It costs resources. The fact that BCH it is under continuous attack tells me that it is a threat. Make no mistake about it the work we are doing is making an impact worldwide.

It's no small feat to fork in to a successful chain. BCH not only successfully forked but has survived a hostile takeover attempt and at least 1 hack attack.

More info: May 15th, 2019 Bitcoin ABC Incident Report https://www.bitcoinabc.org/2019-05-28-incident-report/

The Present

Where we are now

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

That's how we got here. Now let's talk about where we are now.

Metrics

What’s measured improves

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

First let’s talk numbers

Price

300% recovery from low

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

In Dec of last year the entire crypto market took a huge hit which acted as sort of a global reset so here looking at numbers after the December 2018 crash.

BCH has had nearly 300% recovery from the low. IMO price is the least interesting metric. I personally think that BCH is hugely undervalued from a price perspective and from a market mindshare perspective.

The general public are blinded by the Bitcoin Core brand and don’t yet realize that they’re massively overpaying for the wrong coin. You can only fool the Market with censorship, name calling and misinformation for so long.

Eventually the Market is going to correct and I believe there is massive upside to Bitcoin Cash.

Transaction Volume

Nearly 10x increase

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Transaction volume is up nearly 10x from the December low. A big part of this is when CashShuffle came online. Also there are many token transactions in here. And of course there is the epic Blitz Ticker Data app at 1b1itzeSKYEKhdcthUSnNJ47Fx2U8Zwwn which is distributing rates of crypto, forex, bullion prices and many more every second on to the blockchain to make it instantly verifiable, unhackable, and forever retrievable.

This metric is one that my team watches closely. We believe there is a network effect of value are doing everything we can to increase tx volume. Of course we have SDKs, cloud services, a wallet and a high level language for smart contracts to make it possible for developers to change the world with bitcoin cash.

Merchant Adoption

Worldwide

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

We are seeing steady increase in adoption with hotspots like N. Queensland, Tokyo and Bangkok popping up. Big shoutout to Hayden and the Coinspice team for their work here in N. Queensland, Akane for her work in Tokyo and jajaaSB for her work in Bangkok.

Of course we want to see much more adoption. Both real and virtual world. Countries with more economic freedom have greater life expectancies, better standards of living, lower infant mortality, less crime, cleaner environment and much more. Bitcoin Cash is an engine of economic freedom and if we unleash it on the world at scale it has the potential to disempower banks and wall street and bring greater economic freedom to people and nations worldwide.

As Roger often says “By virtue of exchange one man’s prosperity is beneficial to all others.” Merchant adoption is one of the most important metrics and we want to do everything we can to push it higher every day.

If you’re a merchant please check out https://marcocoino.bitcoin.com and get your store listed.

Innovation

The best way to predict the future is to invent it

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

The pace of change is accelerating and according to Kurzweil’s Law of Accelerating Returns we won’t experience 100 years of progress in the 21st century—it’ll be more like 20,000 years of progress (at the year 2000’s rate). The pace of change being the slope as in rise over run in a linear function in algebra.

All that to say innovation does not stand still. It accelerates. And to compete we have to innovate at scale and velocity. As Alan Kay says, the best way to predict the future is to invent it.

https://www.kurzweilai.net/the-law-of-accelerating-returns

Commerce

Paypal Scale

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Going all the way back to the BTC/BCH fork is the question of “is Bitcoin a medium of exchange or is Bitcoin a store of value?” Some say it is only one. Some say that it is both. Bitcoin Cash proponents, for the large part, say that it is both.

To greater facilitate the medium of exchange aspect of Bitcoin we have scaled up the blocksize to 32MB which is around the size of PayPal. Following the great roadmap laid out by Bitcoin ABC, which is led by Amaury Sechet, the goal of Bitcoin Cash is 50 on-chain transactions daily for 10 billion humans. We feel like this enables world-wide commerce, tokens, smart-contracts, the Internet of Things and stuff we haven’t even imagined yet.

The very heart of the value proposition that BCH brings is money/cash/value transfer. We see commerce as a hugely important problem to solve. There has been a lot of innovation around 0-confirmation which let merchants feel confident accepting BCH for payments.

One of them is a family of preconcensus algorithms by team rocket and helped by the excellent professor Emin Gun Sirer. Thank you for your amazing work Prof. Sirer and team.

Another is Storm by Awemany. It uses weak blocks to bring nearly instant confirmations. Also there is Solving the 0-conf problem using forfeits

Tokens

Simple Ledger Protocol

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

I spend a large part of my workday on-ramping businesses in to Bitcoin Cash. They nearly universally say two things.

1. We know you do 'cash' great and we're interested in accepting BCH for payments.

2. How you create tokens and smart contracts on BCH?

Tokens let us take all the things which we love about the blockchain--it's decentralized, distributed, trustless and p2p nature, and apply those properties to real-world and virtual goods. Tokens are not a solution which we need to force on the Market. The Market has been asking us for a solution.

We know that our focus and number one asset is ‘cash’ and so when looking for a token protocol we wanted something which complemented and didn’t compete with our cash layer and SLP tokens[0] fit the bill perfectly. Credit to James Cramer, Jonald Fyookball and the rest of the team for a simple yet powerful token protocol.

SLP tokens leverage Bitcoin Cash Script so anything BCH can do our tokens can do. Because each token transaction is a BCH transaction with a small miners fee, the more token txs there are then the more bch txs there are.

Tokens can be tethered to assets or backed by services, products, or events. They can represent gold, dollars, equities, virtual goods, mobile minutes, automation bots, gym memberships, concert tickets, one side of a wager and more.[1]

Tokens act as a channel for capital to enter our ecosystem. There has $28billion in token sales over the last 4 years and we'd like to see that happen in Bitcoin Cash. We're calling it the Tokambrian Explosion

[0] https://simpleledger.cash

[1] https://twitter.com/CoinText/status/1166729117670109185

Contracts

CashScript

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Per my previous slide, along with tokens, smart contracts are something that is universally requested when on-ramping businesses and developers in to our ecosystem. Bitcoin has a scripting language called Script and it was the first widespread smart contract language ever.

Script lacks loops, recursion and state so it’s not suited for general purpose computing. However, due to Bitcoin Cash's nature as a highly focused value transfer network, and thanks to OP codes such as OP_CHECKDATASIG, BCH Script is especially well suited for a class of contracts which Vin Armani has termed, Non Custodial Financial Services, or NCFSes.

NCFSes position Bitcoin Cash to be at the forefront of a new wave of payment automation and next generation ICOs, STOs, and DAOs. NCFSes are simpler and more powerful than general purpose smart contracts. Instant, reliable, inexpensive, and scalable![0].

We wanted a language for creating smart contracts that felt modern and which abstracted away all the complexity of raw BCH Script. We wanted to learn from other ecosystems which have vibrant smart contract platforms. And we wanted something which integrated in to a modern Web and BITBOX-centric workflow. For that we created CashScript[1]

[0] https://twitter.com/CoinText/status/1161311344953450496

[1] https://developer.bitcoin.com/cashscript/docs/language

Privacy

Cash Shuffle & Fusion

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Privacy is a basic human right. What you do with your mind and body in the privacy of your own personal space is your prerogative. Digital technology both empowers individual freedom while also enabling mass surveillance. We're committed to building tools which empower financial sovereignty and human liberty while protecting personal privacy.

Privacy-focused coins face potential backlash from governments due to being so disruptive. However similar to our token layer, our privacy layer is optional and compliments, not competes, with our primary focus, our cash layer.

CashShuffle is a fully decentralized coin mixing protocol that shuffles your Bitcoin Cash with other network participants. This shuffling process obscures your real spending and makes it difficult for chain analysis companies to follow your transactions.

Cash Fusion is a method to coordinate coinjoin transactions with multiple inputs per user. Credit to ZQuestZ, Jonald and team for leading the charge on privacy.

CashID

Authentication

Identity

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

The real and virtual worlds are converging. In the same way that cryptography enables cryptocurrencies, the tokenization of assets on the the blockchain and digital non-fungibility, it also enables authentication and identity.

Weak passwords are a huge problem on the web. People notoriously reuse passwords and when one of their accounts gets hacked all of the other accounts, which they shared the password with, are now vulnerable as well. To alleviate that problem the state-of-the-art is to use a password manager with strong and unique passwords for each site. No longer do you even need usernames and passwords. CashID enables authentication by allowing a website to issue a challenge which a user can sign along with providing optional metadata.

Secure authentication with optional metadata is useful, for example to…

Credit to Jonathan Silverblood for CashID

Cash Accounts

  • qrhncn6hgkhljqg4fuq4px5qg74sjz9fqqj64s9la9
  • cgcardona#122
  • Supported in Badger Wallet

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Email hit mass adoption partially because email addresses are so easy to share. The WWW hit mass adoption partially because URLs can be easy to share. For mass adoption we need accounts and addresses which can safely and easily be shared in real-world scenarios.

No longer do you need to pass around cryptic addresses, such as qrhncn6hgkhljqg4fuq4px5qg74sjz9fqqj64s9la9, to receive BCH or tokens. Cash Accounts allows for human readable account names such as cgcardona#122

Credit again to Jonathan Silverblood for work on Cash Accounts

Badger Wallet

Your gateway to BCH

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

We think that Bitcoin Cash has the potential to be as meaningful as the Web and beyond. It offers a rich and dynamic API which developers can leverage to creating amazing experiences. And in the same way if you aren't running an up to date web browser you won't get the best of the Web, if you aren't running a state-of-the-art wallet you won't get the latest and greatest that Bitcoin Cash has to offer.

Badger has a Web4BCH API for gluing your smart contracts to the Web’s Document Object Model. There is also the very popular Badger Button for quickly integrating BCH and Badger integration in to your site or app.

Remember--not only is Bitcoin Cash money of the internet. It's the Internet of Money. A value transfer network. Badger Wallet is your gateway to Bitcoin Cash. We believe something very powerful happens when your identity, cash and digital assets in the form of tokens converge with a Web augmented and empowered by smart contracts.

Markets

Local.bitcoin.com

exchange.bitcoin.com

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Tokenization represents a radical leap forward for finance. Fully expect that everything you can imagine, from stock options to loyalty points to video game armour, and much more will ultimately be tokenized and represented on the blockchain.

Providing on/off ramps between fiat and the cryptoken-economy is another huge problem which we're solving in multiple ways.

First with local.bitcoin.com, which is a shining example of what it possible with Bitcoin Cash. local.bitcoin is a fully non-custodial, end-to-end encrypted and no KYC platform for trading BCH locally and globally. Unlike with cryptocurrency exchanges, we don’t ever store the coins you buy or sell. Instead, our encrypted blind escrow contract acts as the decentralized go-between for your trades.

Second with exchange.bitcoin.com which is launching in a few days. BCH base currency with dozens of trading pairs and SLP token support.

Looking Forward

Where we’re headed

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

That's where we came from and where we are currently. Now let's project forward to where we're headed.

Smart Money

Non Custodial Financial Services

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

Every one here should feel greatly honored to witness this chapter in Bitcoin's history. Bitcoin Cash is evolving from simple payments to next-generation payment automation of digital cash and tokens powered by smart contracts. Privacy, identity, authentication and more at global scale.

1/NCFS

  • Spending Constraints
  • Oracles
  • Covenants
  • Stablecoin

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

- Spending Constraints

- Tendo Pein

- https://honest.cash/v2/pein_sama/spending-constraints-with-op_checkdatasig-172

- Oracles

- importing external data into the blockchain to determine the truth or falsehood of the condition

- https://medium.com/@g.andrew.stone/bitcoin-scripting-applications-decision-based-spending-8e7b93d7bdb9

- Covenants

- restrict how funds can be spent

- https://fc17.ifca.ai/bitcoin/papers/bitcoin17-final28.pdf

- Stablecoin

- futures based stable coin

- https://www.yours.org/content/futures-based--stable-coin--asset-solution-b784632e457f

2/NCFS

  • Recurring Payments
  • Blind Escrows
  • Digital Good Purchase via PGP signature
  • Pay to ID

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

- Recurring Payments

- Patronage with time and value restriction.

- https://github.com/KarolTrzeszczkowski/Mecenas-recurring-payment-EC-plugin

- Bind Escrows

- non custodial escrows

- https://local.bitcoin.com/faq#how-does-the-escrow-script-work

- Digital Good Purchase via PGP signature

- Dr. Mark L.

- Oracle wants to use PGP

- Atomic Swap of BCH for PGP key cert

- https://gist.github.com/markblundeberg/af59d7cd234cbdb14dcf9e00f0ea2c17

- Pay to ID

- Dr. Mark L.

- payment is made to a personally identifying string (real name, email address, social media handle, etc.) instead of directly to a cryptographic key.

- https://gist.github.com/markblundeberg/bd28871548108fc66d958018b1bde085

3/NCFS

  • Cold Wallet Timeout
  • Enforced Multi-Sig Signing Order
  • PvP Gaming
  • Chess on the Blockchain

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

- cold wallet timeout

- you could put a mandatory timeout of one week on spends from your cold wallet. During the timeout, you could only spend the coins back into your cold wallet. But if you waited for the timeout to expire, you could spend the coins to any arbitrary address. This means that if someone stole a copy of your cold wallet’s private key, you could use this mechanism to prevent them from spending your bitcoins by returning them to your cold wallet during the timeout period

- https://bitcoinops.org/en/newsletters/2018/10/09/

- Enforced Multi-Sig Signing Order

- PvP Gaming

- Vinstradamus

- players stake some amount and the winner takes all. Game dev is paid in aseparate output

- https://twitter.com/vinarmani/status/1109053882901192704

- Chess on the Blockchain

- Tobais Ruck

4/NCFS

  • SIGHASH_NOINPUT
  • Permissionless Inheritance
  • On-chain Auctions
  • Secure Multi-Party Computation

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

- SIGHASH_NOINPUT

- Dr. Mark L.

- redacts information about the spending inputs, most notably their transaction IDs

- allow to build Lightning, Eltoo with bilaterally funded smart contracts

- https://gist.github.com/markblundeberg/79db7714c38bbba114dc192324f8382b

- Permissionless Inheritance

- Karol Trzeszczkowski

- Licho92

- Implements a dead man's switch with a 6 months will trigger,

- If you don't refresh your Last Will contract for 6 months, funds become available for your inheritor,

- One-click refreshing from a hot wallet,

- Refreshing wallet can't access your funds,

- You can always access your funds from a cold wallet.

- https://github.com/KarolTrzeszczkowski/Electron-Cash-Last-Will-Plugin

- On-chain Auctions

- P2P DEX

- https://old.reddit.com/r/btc/comments/bhq3hx/announcing_slp_agora_a_decentralized_onchain_app/

- Secure Multi-Party Computation

- https://www.youtube.com/watch?v=tGzsz_-oSss

Gabriel Cardona

developer.bitcoin.com

@cgcardona

gabriel@bitcoin.com

@BitcoinCashCity #BCHcity

Bitcoin Cash City September 2019

Gabriel Cardona State of Bitcoin Cash 2019

As I mentioned before Bitcoin Cash has properties which make it far greater than the best money the world has ever known. It's a value transfer network which lets you tokenize anything imaginable and send it to anyone anywhere, permissionlessly and with no middlemen, nearly instantly and nearly for free. You can't overstate how powerful and disruptive that is.

Bitcoin Cash is Smart Money. Censorship-resistant digital cash for the Internet Nation This is an idea whose time has arrived and you can't beat an idea whose time has arrived.

Thank you

Gabriel Cardona - BCCC Speech - Google Slides