cypherpunk

In this new series, we’re talking about remarkable cypherpunks who helped to create decentralized money and more privacy and online freedom tools for everyone. Let’s remember that the group named “cypherpunks” was formed by computer science, cryptography experts, and Internet activists aiming to create new software to foster privacy and social change. As you may imagine, a lot of people in the crypto world belong there. 
Wei Dai is, of course, one of them. Maybe his name is ringing a bell if you ever read the Bitcoin whitepaper. He’s one of the references at the end. We don’t know much about his personal life, because he’s a very private person —like most cypherpunks, indeed. However, we do know about his career. 
Probably born in 1976, of Chinese origin but living in the USA, Dai went to the University of Washington. He graduated in computer science with a minor in mathematics. According to some sources, his career began at TerraSciences, where he contributed to developing security solutions for the oil and gas industry. Later at Microsoft, he played a crucial role in optimizing encryption algorithms.
Dai's notable contributions include the widely-used open-source Crypto++ library, employed in projects like Microsoft Office Groove and LastPass. Dai's VMAC algorithm, designed for 64-bit systems, demonstrated high-performance data verification. He also identified critical vulnerabilities in SSH2's Encryption Block Chaining and was part of the team that discovered the BEAST protocol vulnerability in SSL/TLS, posing a significant risk to Internet security. 
Besides, his work on b-money influenced the core concepts implemented in Bitcoin. This is a very similar system, published before the Bitcoin whitepaper. Despite speculation, Dai denies being Satoshi Nakamoto, or even having some real influence in the cryptocurrency creation. 
B-money Proposal

B-money is considered an important precursor of all cryptocurrencies, even though it was never released. “Fascinated”, in his own words, by Tim May’s crypto-anarchism ideology with its purpose of making the government unnecessary and the threat of violence impotent, Dai designed potentially unregulated money for the crypto-anarchist community to operate, free of governmental intervention. 

He described, indeed, two protocols. The first one, described as impractical, establishes a basis for the second, more feasible one. In both, an untraceable network is assumed, where participants are identified solely by digital pseudonyms. The first protocol relies on a synchronous and uninterrupted anonymous broadcast channel, with participants maintaining databases of money ownership tied to pseudonyms. It covers the creation and transfer of money, and enforcement of contracts, including arbitration mechanisms.
The second protocol shifts the accountability of the money mint to a subset of participants called servers, connected through a Usenet-style broadcast channel. Transaction messages remain similar to the first protocol, but participants must verify that messages are received and processed by a randomly selected server subset. To prevent collusion, servers are required to deposit money for potential fines or rewards, periodically publishing and committing to money creation and ownership databases. 
B-Money and Bitcoin
These two systems share many similarities. Both of them aim to establish unregulated digital currencies operating in a peer-to-peer (P2P) network without the need for a central authority. The use of Proof of Work (PoW) for the creation of new units of currency is considered as well. In both b-money and $BTC , participants can generate new coins by solving computational problems. This PoW process serves the dual purpose of securing the network and preventing abuse.

Additionally, both systems employ cryptographic mechanisms to ensure secure and private transactions. B-money, like Bitcoin, uses digital pseudonyms (public keys) to identify participants, providing a level of anonymity. Transactions are signed and encrypted, contributing to the privacy and security of the overall system.
The concept of a distributed ledger is another shared element. B-money and Bitcoin utilize a decentralized approach to maintain a ledger of transactions. In b-money, participants maintain separate databases, while Bitcoin realizes these databases as a blockchain—a public ledger that records all transactions across a network of computers.
Overall, the conceptual foundations of b-money, particularly the use of PoW, cryptographic techniques, and decentralized ledgers, laid the groundwork for the subsequent development of Bitcoin and other cryptocurrencies. Even the “b” in the name may result in suspicion. But Dai himself denied any contribution or involvement.
“I didn't create Bitcoin but only described a similar idea more than a decade ago. And my understanding is that the creator of Bitcoin, who goes by the name Satoshi Nakamoto, didn't even read my article before reinventing the idea himself. He learned about it afterward and credited me in his paper. So my connection with the project is quite limited.”
Not that decentralized
B-money was only one of the important steps to what we have today, and to the real decentralization we’re still aiming to achieve in crypto. It wasn’t really decentralized, as you may have noticed: the “servers” (middlemen) were in control of the money. Something similar happens with Bitcoin, indeed. 
Miners, in charge of minting new coins, can cherry-pick or even censor transactions. If more than half of the big miners collude, they could take over the whole network. And they’re not even a lot of parties, considering that only two mining pools are currently in control of 54% of the network power (hashrate). 
Bitcoin Hashrate by Mining Pool as of 13/01/2024. Source: CoinDance

Obyte, on the other hand, has solved this issue by completely eliminating the mining system. Instead, its Directed Acyclic Graph (DAG) structure is fully censorship-resistant. There are no powerful parties behind, and only Order Providers (OPs) are required to order transactions. Their transactions serve as waypoints to order the rest, and nothing else. If someone sends a transaction to the DAG, it can’t be blocked or censored by any party. The total supply is also fixed, protecting against inflation.
Interestingly, as Wei Dai described enforcement of contracts and arbitration mechanisms, we also have contracts with arbitration as well as an arbiters store (ArbStore) in Obyte. This is a new decentralized escrow payment solution, specifically designed for international trade. 
Operating on the decentralized Obyte crypto platform, contracts with arbitration facilitate safe transactions using smart contracts (without users needing to code anything) and cryptocurrencies, offering a decentralized escrow that safeguards funds until the conditions of the contract are met. With the added layer of protection from independent arbiters in case of disputes, the parties involved are assured a fair resolution process. 
We’re in debt to our predecessors. Distinguished cypherpunks like Wei Dai and Satoshi Nakamoto laid the groundwork for the building of real decentralization in the financial and online world. Let’s continue their mission!

#bitcoin #cypherpunks #cypherpunk #decentralization #Obyte
Featured Vector Image by Garry Killian / Freepik
Originally Published on Hackernoon [Cypherpunks Write Code series]

Vitalik Buterin Calls for a Resurgence of "Cypherpunk" Spirit in Ethereum

#Ethereum co-founder @VitalikButerin has recently urged a revival of the #cypherpunk ethos within the Ethereum network. Buterin emphasized the need to re-embrace "cypherpunk" values, including decentralization, open participation, censorship resistance, and credible neutrality.

Ethereum's Original Vision: A Decentralized Shared Hard Drive

#Ethereum initial conceptualization envisioned a decentralized platform resembling a shared hard drive, leveraging peer-to-peer messaging and decentralized file storage. However, this vision started to fade in 2017, coinciding with the surge in DeFi applications and the trend toward financialization on the Ethereum network.

Rising Transaction Fees and Shift in Culture

#VitalikButerin pinpointed the escalation of transaction fees as a significant factor leading to Ethereum's altered trajectory. He argued that when transaction fees soared, a group he referred to as "degen gamblers" (high-risk traders) dominated the chain. This shift, according to Buterin, not only influenced public perception but also altered the internal culture of the crypto space.

Advancements Amid Challenges and Web3

Buterin emphasized the network's progress in various domains, including innovations such as rollups, zero-knowledge proofs, account abstraction, and more. He also revisited the term "Web3," originally coined by Ethereum co-founder Gavin Wood, who envisioned Ethereum not merely as "Bitcoin plus smart contracts" but as a foundational technology for a more open internet stack.

Challenges to Overcome and Hope for a Decentralized Renaissance

Acknowledging the difficulties in resisting certain pressures, Buterin pointed out examples of potential deviations from cypherpunk principles, such as highly centralized layers and nonfungible token ecosystems stored on centralized websites. Despite challenges, Buterin expressed optimism for Ethereum's future, highlighting advancements in scaling solutions, second-generation privacy solutions, and the emergence of account abstraction and light clients as promising developments in 2023.

Preserving the Unique Value of Crypto Ecosystem

In conclusion, Buterin warned against the risk of losing the unique value of the #crypto ecosystem. He urged the crypto community to resist pressures that could lead to recreating a clone of the existing web2 ecosystem with additional inefficiencies. Earlier, Buterin proposed a simplification of the Ethereum proof-of-stake chain by reducing the number of signatures validators are required to make, aiming to make the network lighter and more efficient.

#CryptoNews #CryptoPatel
$ETH $BTC $SOL

The identity of Bitcoin’s creator, Satoshi Nakamoto, remains one of the greatest mysteries in the world of technology and finance. Since the cryptocurrency’s inception, various theories have circulated, trying to connect the dots and uncover the person—or people—behind Bitcoin. One particularly compelling theory links Satoshi Nakamoto to Len Sassaman, a cryptographer and privacy advocate, whose expertise and ideology overlap with many elements of Bitcoin's design and ethos. This article explores the various pieces of evidence, weaving together cryptography, peer-to-peer (P2P) networking, and the personal details of Len Sassaman's life, to ask: could he be the person behind Satoshi Nakamoto?
The Idiosyncrasies of Bitcoin’s Code
The first major clue lies within Bitcoin’s code, which is as brilliant as it is unconventional. Described as “brilliant but sloppy,” the code lacks some common software development practices, such as unit testing. Yet, it showcases cutting-edge security architecture and a deep understanding of academic cryptography and economics.
When prominent security researcher Dan Kaminsky reviewed Satoshi’s code, he was astonished by its resilience. Kaminsky attempted nine different exploits, but to his amazement, Satoshi had anticipated and patched all of them. “I came up with beautiful bugs, but every time I went after the code, there was a line that addressed the problem. I’ve never seen anything like it,” Kaminsky said. This level of expertise points to a person with substantial experience in cryptography and security—a realm where #LenSassaman was deeply embedded.
Not only was Len skilled in these areas, but he co-authored a paper with Kaminsky on attacking public key infrastructure, adding to the theory that he and Satoshi shared similar security knowledge.
A LaTeX-Formatted Whitepaper
Satoshi Nakamoto’s introduction of Bitcoin came through a whitepaper, released in October 2008. Uniquely formatted using LaTeX—a tool typically used for academic publications—the whitepaper stood out among the largely informal discussions on the #cypherpunk mailing list. The paper included an abstract, conclusion, and MLA citations, a stark contrast to other proposals like Bitgold and b-money, which were presented more as blog posts or open discussions.
This suggests that Satoshi had an academic background or was at least very familiar with academic writing practices. Given Len Sassaman’s extensive work in academia, including cryptographic research, it’s not far-fetched to consider him a likely candidate.
European Origins?
Though many assume Satoshi Nakamoto was American, clues suggest a European connection. The writing in Bitcoin’s forum posts exhibits British English spelling—words like “bloody difficult,” “maths,” and “grey”—and Satoshi frequently used the European date format (dd/mm/yyyy). Moreover, the Genesis Block of Bitcoin included a headline from The Times newspaper, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This edition was specific to the UK and Europe, further suggesting Satoshi was based on that continent during Bitcoin’s early days.
At the time, Len Sassaman was living in Belgium, working at COSIC, a research group based at the University of Leuven. Interestingly, The Times was among the top 10 most-read newspapers in Belgium, especially among scholars. Though Sassaman was American, he frequently used British English in his writings, a quirk that adds to the intrigue surrounding his potential identity as Satoshi.
Another clue lies in the analysis of Satoshi’s online activity. Bitcoin-related posts were often made during late hours, consistent with the behavior of a night owl living in Europe. Sassaman’s personal online history shows that he also was active late into the night, a pattern that closely matches Satoshi’s posting times.
Expertise in Peer-to-Peer (P2P) Networking
Bitcoin wasn’t the first attempt at creating a cryptocurrency, but it was the first to be based on a fully peer-to-peer, distributed network. Satoshi highlighted this P2P nature from the start, saying, “I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party.”
In order to design such a system, Satoshi would have needed to deeply understand P2P networking, cryptography, and economics—all areas where Len Sassaman had significant experience. During his time in San Francisco, Sassaman lived and worked with Bram Cohen, the creator of BitTorrent, the most widely used P2P protocol. Before #BitTorrent , Cohen developed MojoNation, one of the earliest digital currencies with a P2P economy. MojoNation’s currency system used a public ledger and tokens for distributed storage, a concept that influenced Bitcoin’s blockchain.
Len was deeply involved in this ecosystem, and the design principles of MojoNation—along with Cohen’s subsequent work on BitTorrent—are echoed in Bitcoin’s decentralized, incentive-based model. Len’s close proximity to these developments suggests he had the knowledge and exposure needed to create Bitcoin.
Hacktivism and Open-Source Advocacy
A key aspect of Bitcoin’s development was its open-source, decentralized nature. Unlike earlier digital currencies, which were often proprietary and backed by companies (e.g., David Chaum’s Digicash), #Bitcoin❗ was released as a grassroots project with no central authority. This aligned with the hacktivist principles of the Cypherpunk movement, which advocated for privacy and freedom through technology.
Satoshi’s reluctance to take personal credit for Bitcoin and their emphasis on the collective development effort mirrors Len Sassaman’s own open-source ethos. Sassaman contributed to many open-source projects, including PGP (Pretty Good Privacy) and Mixmaster, a remailer protocol designed to enhance online anonymity. His ideological leanings toward open knowledge, privacy, and freedom from corporate control also align with Satoshi’s stated goals of using Bitcoin to “gain a new territory of freedom.”
The Tragic End of Len Sassaman
Len Sassaman’s life was marked by brilliance, but also by personal struggles. In 2006, he began suffering from non-epileptic seizures and other neurological issues that severely impacted his ability to work. Despite his deteriorating health, he continued contributing to the cryptography community until shortly before his death in 2011. Tragically, few people knew the full extent of his struggles, as he concealed his illness from friends and colleagues, trying to maintain his persona as a hyper-competent cryptographer.
Sassaman’s death was a massive loss to the Cypherpunk and cryptographic communities, and many mourned the passing of a person who had contributed so much to the field of privacy and open-source technology. One particularly poignant tribute from Hacker News reads: “We were reimagining our world, riddled with cryptosystems that would mathematically enforce the freedoms that we treasured … All this is a highly academic geek utopia exercise. I tend to keep it that way, but Len wanted to get his hands dirty. Cypherpunks write code.”
Was Len Sassaman Satoshi Nakamoto?
The evidence surrounding Len Sassaman’s potential identity as #SatoshiNakamoto is compelling, though not conclusive. Sassaman’s expertise in cryptography, P2P networking, and digital currencies, combined with his ideological leanings and unique personal traits, make him a strong candidate. The overlaps between his life and work, and Satoshi’s contributions to Bitcoin, are hard to ignore.
However, the mystery of Satoshi Nakamoto may never be fully solved. Sassaman’s death in 2011, around the same time Satoshi ceased communicating, adds a tragic dimension to this story. Whether or not Len was Satoshi, his contributions to the world of cryptography and privacy are undeniable, and his legacy will live on, perhaps most notably in the form of Bitcoin itself.

In the past week, the Ethereum community has become vibrant as the debate over privacy has intensified. Many are concerned that Ethereum is gradually straying from the original values of the Cypherpunk movement – where privacy is not just a feature but a default right that cannot be overlooked. In response to the call to 'Make Ethereum Cypherpunk Again', founder Vitalik Buterin has officially spoken out with a minimalist yet practical privacy roadmap, offering a new direction for the entire ecosystem.

That summer when the ice bucket challenge spread virally on YouTube, Hal Finney's ventilator emitted a rhythmic wheeze. The sunlight in August 2014 pierced through the blinds of the Santa Barbara nursing home, casting alternating shadows on his bony fingers, resembling the immutable hash values on the blockchain.
His eye-tracking device captured the news push about Bitcoin's price breaking $600, and an already prepared smiley face popped up on the screen. This was his last way of communicating with the world - controlling a virtual keyboard through subtle muscle twitches in his face; each keystroke felt as difficult as chiseling holes in ice.

In a recent address, Buterin highlighted the challenges new developers face when integrating into the Ethereum ecosystem, citing the increasing complexity of the platform. He advocates for a simplification of the blockchain to foster greater inclusivity and innovation. This approach is not merely technical but also cultural, aiming to preserve the ethos of decentralization and open participation that Ethereum was built upon.

Buterin's vision includes a return to "#cypherpunk " values—principles that prioritize privacy, decentralization, and resistance to censorship. He believes that by realigning with these values, Ethereum can avoid the pitfalls of over-financialization and maintain its unique position in the #blockchain space.

Layer 2 Solutions: Beyond Scalability

Layer 2 (L2) solutions have been instrumental in addressing Ethereum's scalability issues. However, Buterin sees them as more than just technical fixes; he views L2s as cultural extensions of Ethereum. These solutions enable diverse communities to build applications that reflect various subcultures within the Ethereum ecosystem, from cypherpunks to decentralized finance (DeFi) enthusiasts. This diversity fosters innovation and ensures that Ethereum remains a dynamic and inclusive platform.

Leadership and Governance: A Decentralized Approach

In line with his vision for a more #CulturaCripto ally aligned Ethereum, Buterin has announced #significant leadership changes within the Ethereum Foundation. These changes aim to enhance communication between the foundation and the broader Ethereum community, support decentralized application developers, and reinforce the platform's commitment to decentralization and privacy. Importantly, Buterin emphasized that the foundation will steer clear of political lobbying, focusing instead on technical excellence and community engagement.

The Road Ahead: #Balancing Innovation and Core Values

As #Ethereum✅ continues to evolve, Buterin's emphasis on cultural alignment serves as a reminder of the platform's roots and the importance of maintaining its core values. By simplifying the blockchain and embracing a decentralized, inclusive culture, Ethereum aims to foster an environment where innovation thrives without compromising its foundational principles.

This cultural shift is not just about preserving Ethereum's identity; it's about ensuring its sustainability and relevance in the rapidly changing world of blockchain technology. By balancing technological advancements with a strong cultural foundation, Ethereum is poised to navigate the challenges of the future while staying true to its mission.