• Centralization Still Rampant in Crypto (and it’s all under the hood)
    https://hackernoon.com/centralization-still-rampant-in-crypto-and-its-all-under-the-hood-299a23

    99% of #cryptocurrency Products are still Centralized and that’s a Problem“He who is given power will inevitably become an oppressor and exploiter of society.” — Mikhail BakuninThe ultimate promise of blockchain technology and cryptocurrencies: the #decentralization of power. The vision was to give transparency, power, control back into the hands of the people. After all, this was born (just 3 weeks) out of the 2008 financial crisis where the culmination of years of abuse of power came to a tipping point. Big banks told us to “give us your money and just trust us”. We did, and we all paid for it.What happened: The creation of the most overvalued real estate market of the century driven by stated income loans. Insolvent banks. Then a $700 billion bailout. People made mistakes (read: committed (...)

    #cryptocurrency-investment #centralized-crypto #bitcoin

  • It’s time to address the massive problems of centralized exchanges
    https://hackernoon.com/its-time-to-address-the-massive-problems-of-centralized-exchanges-ac2cfb

    The problems that need to be solvedAs the massive bull-run of 2017 demonstrated, the early adoption of cryptocurrencies is primarily speculative trading. However, the current experience of trading crypto assets is a fragmented experience with scattered pockets of liquidity, and a highly technical and high friction process.Security flaws plague the industry and hinder adoption. Investors today need to have a particular appetite and tolerance for risk, not to mention an acute ability to discern legitimate investments from the rampant exit scams and phishing attacks.Centralized trading platforms have massive security risksThere are a plethora of centralized exchanges available to retail investors today, but a much smaller subset of these exchanges are properly regulated, not to mention (...)

    #bitcoin #crypto-exchange #ethereum #cryptocurrency #centralized-exchange

  • A very interesting paper (I said “interesting”, I didn’t say I agree!) on open networks where independant nodes with independently developed programs interoperate thanks to standards. The author claims closed and centralized systemes are better, because they allow faster evolution (he uses security and privacy as an example).

    https://whispersystems.org/blog/the-ecosystem-is-moving

    #Internet #privacy #federated_systems #centralized #decentralized

    • Like any federated protocol, extensions don’t mean much unless everyone applies them, and that’s an almost impossible task in a truly federated landscape. What we have instead is a complicated morass of XEPs that aren’t consistently applied anywhere. The implications of that are severe, because someone’s choice to use an XMPP client or server that doesn’t support video or some other arbitrary feature doesn’t only effect them, it effects everyone who tries to communicate with them. It creates a climate of uncertainty, never knowing whether things will work or not. In the consumer space, fractured client support is often worse than no client support at all, because consistency is incredibly important for creating a compelling user experience.

      #XMPP

    • “I no longer believe that it is possible to build a competitive federated messenger at all” - Moxie’s conclusion makes me sad: his lack of utopia is disappointing.... But it is a lucid analysis of the contemporary landscape, though one may take into account his service provider bias considering his interest in Open Whisper Systems. The notification panel as federation locus - yuck... But it is the current reality and it works.

    • Troll put aside (« it’s undeniable that XMPP still largely resembles a synchronous protocol with limited support for rich media, which can’t realistically be deployed on mobile devices. If XMPP is so extensible, why haven’t those extensions quickly brought it up to speed with the modern world? » is pure ignorance or, worst, deliberate misleading), this is not a technical problem, but a pretty old political one.

      It’s not new that some people think or declare that a monarchy or dictatorship (with a « enlightened leader ») is more efficient than a system involving cooperation and discussion. History has proven it wrong many times.

      I really don’t understand why free software (talking about free software, not open source) community is even paying attention and sometime giving credit to this kind of text, this is in total oposition of what free software are made for.

    • @Goffi : I’m paying attention because acquisition of users is critical where network-effect is the main usage driver. Centralization has a huge advantage in contact discovery - currently big enough to make decentralized systems seem incapable in comparison. Everything else is moot if a new user can’t instantly fill his contacts list. Decentralized will still work best for closed groups or in privacy-critical environments, but the mass market is now centralized - I have recently decided that this battle is lost... But I’m still wondering about the holy grail of privacy-preserving contact discovery in decentralized systems - maybe some cryptographic wizardry will make that possible one day and change the whole game. Until them I’ll go where my girlfriends are.

      PS: I still run an ejabberd but the number of people I reach through it can now be counted on the fingers of one hand - on a good day. The girlfriends used to be there... That era is gone.

    • Also, this made me think about a short discussion I had with Dean Bubley a couple of weeks ago : https://twitter.com/liotier/status/727848142994018304 - he argues that the comparative benefit of freedom of service provider choice inherent to decentralized networks is made irrelevant when users can setup and populate a new centralized network in 30 seconds. Still proprietary, still a trust SPOF - but those are minor factors in mass market user choice.

    • @liotier : centralisation allows contact discovery *in the network*, you wont find my contact on Twitter for instance because I’m not there. In addition, the biggest network to date in term of user (before FB) is a decentralised one: email.

      Anyway the network effect is a bad usage driver, I wish that this notion doesn’t exist anymore in the future. Network effect exists because people are not able to talk to each other between networks. If interoperability exists, you can have a network with 10 or even 1 person, if you can talk to all the others there is no more notion of network effect. Again email is a good exemple, I’m the only one on my server and I’m not isolated because of network effect.

      @stephane : thank for the ping, I’ve already seen this text on XSF muc room. I’m really not fond of the certification thing by the way.

    • Network effect exists because people are not able to talk to each other between networks. If interoperability exists, you can have a network with 10 or even 1 person, if you can talk to all the others there is no more notion of network effect.

      Other example of this kind: the phone networks. There is a large number of companies, that manage different networks, but all interoperate. And in many countries, there are also regulatory norms that mandate “portability” to allow users to switch from one network to another without cost.

      Maybe part of the solution is regulatory, no technological.

    • > Maybe part of the solution is regulatory, no technological

      Hampering interoperability might be interpreted as abuse of dominance as defined by Article 102 of the Treaty on the Functioning of the European Union (http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:12008E102)... But you’ll have a hard time building a convincing case when the “product market” (as defined by same article) arguably encompasses all equivalent services between which users switch easily (see Signal’s signup spike when Whatsapp became temporarily banned in Brazil). POTS was heavily regulated because no such market diversity existed, so the dominance and abuse thereof were obvious.

      Email is driven by standards-based interoperability because it grew up at a time where no one was seeing value in owning users... That era is past, even though we enjoy its legacy.

      Service/standard adoption are investment driven:
      – Investment in development
      – Investment in usage (yes, for a user, setting up a system and learning its use is an investment)

      Now, think about why the developer (in the business sense, not the technical one) and the user would invest ?

      For the user, it is all about innovation: given acceptable levels of service, the user will switch to where the exciting new functionality is (see Simon Wardley’s works for this line of argumentation). Decentralized loses because innovation requires consensus - working with standards body is a long tedious slog... So time to market will be unacceptable or at least it will be to late for any competitive advantage. So it follows that businesses will only standardize if they have no choice but delivering an interoperable solution because they don’t have a strong market position - otherwise, fuck standards: either the customers will eat whatever the dominant provider feeds them or the provider better deliver exciting functionality before anyone else if they want to keep growing.

      Even merely opening an API to third-party clients is a threat to that model: it freezes the service in its current form, thus slowing functional change... Businesses don’t want that - except when the customers put interoperability before other functionality, which seldom happens.

      As for some hope for the free world ? As I said - and as David Cridland explains, it lies in a revolution in contact discovery. Who knows if a cryptographic protocol could let users expose chosen bits to chosen interlocutors in a distributed way (did anyone say “blockchain” ?)... I have no idea and it is a hard problem - seen Moxie’s take on this (notably the mention of encrypted bloom filters): https://whispersystems.org/blog/contact-discovery - posted by @stephane a couple of years ago. David Cridland offers the less utopian idea of a centralized directory for the open world... It could surely work and it might even be sufficiently cheap to be fundable - but what a SPOF in every dimension !

  • #bitcoin anyone ? - Roelof Roscam Abbing (nettime-l)
    http://permalink.gmane.org/gmane.culture.internet.nettime/7367

    We can see how the design of Bitcoin as a mathematical framework does not make it free of politics. For in it’s design it also contains certain (unconscious) political ideas about society that are grounded in anarcho-capitalism. The mathematical framework has thus for not shown to be capable of preventing the extremely quick formation of potentially disruptive monopolies in a system that was designed to be neutral and decentralized.

    The idea that setting the right technical parameters will remove the necessity for supervision and accountability is thus incorrect. For we are witnessing the appearance of #cartels and #monopolies that could have never been formed in a properly regulated market. Bitcoin as such will not work to empower the individual and free him from centralized power, instead Bitcoin serves to create new #centralized_power_structures that are unregulated, opaque and unaccountable.

    où l’on découvre les #mining_guilds qui « contrôlent » bitcoin

    • j’y suis allé de mon petit billet #shameless_autopromo
      https://fluxetfixe.wordpress.com/2013/04/16/bitcoin-bulle-paroxystique (mais j’avais pas encore vu les guilds... donc shame quand même)

      Cf. Bitcoin / La monnaie virtuelle pour les débutants
      http://www.arretsurimages.net/contenu.php?id=5777

      Et Bitcoin : le Net se frappe de monnaie
      http://www.ecrans.fr/Bitcoin-le-Net-se-frappe-de,16252.html

      Pour utiliser des bitcoins, rien de plus simple, il suffit de se créer un porte-monnaie grâce à un logiciel (Bitcoin-Qt sur un ordinateur, Bitcoin Wallet sur Android). Un porte-monnaie est composé d’une clé publique (que l’on peut transmettre à tout le monde, qui sert à recevoir des dépôts) et d’une clé privée (à garder secrète, comme son nom l’indique, étant donné qu’elle sert à payer). Ces deux chaînes de 34 et 50 caractères suffisent. Nul besoin de s’identifier ou d’effectuer la moindre démarche. Du coup, on peut même sauvegarder son porte-monnaie en l’imprimant. Ensuite, pour obtenir des bitcoins, il faut qu’ils soient transférés depuis un autre porte-monnaie. Des sites se sont naturellement montés pour gérer les transactions entre acheteurs et vendeurs. C’est le cas de Mt.gox ou Bitcoin-central.net. Lorsqu’une transaction est effectuée, l’ordre est transmis au réseau de machines chargé de gérer le système. N’importe qui peut d’ailleurs inscrire son ordinateur dans ce réseau pour participer à l’effort. La validité de l’ordre va ensuite être confirmée par plusieurs machines (elles vont vérifier les antécédents de chaque porte-monnaie pour voir si les sommes sont disponibles), puis il sera ajouté à ce qui s’appelle la « chaîne de blocs », un journal ultrasécurisé qui répertorie toutes les transactions effectuées sur le réseau Bitcoin. Ce sont ces ordinateurs qui mettent en circulation les nouveaux bitcoins. En récompense du travail effectué, ils peuvent aussi percevoir des frais de transaction.

  • Declouding freedom: reclaiming servers, services and data - 2020 FLOSS Roadmap
    https://flossroadmap.co-ment.com/text/NUFVxf6wwK2/view

    Le cloud computing libre selon Philippe Aigrain

    In practice, offers of [#libre] #cloud computing hosting as well as service provision on them will have to fulfill three conditions:
    True software freedom, including for #virtualization software,
    Architecture choices that put #data and services under user control. A freedom-respectful approach must include support for three models, with smooth transition between them: #centralized hosting and #personal hosting (as in the wordpress.com model), but also #group hosting allowing users to host for “their friends and neighbours”,
    * #Transparency (for the user) of location (physical control is essential to autonomy), except when cloudiness of the data location is needed in face of #censorship, #repression, or #surveillance.

    (RT @hlc)