Dustin D. Trammell

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From dtrammell@dustintrammell.

com Sun Jan 11 23:14:04 2009


Subject: Re: Bitcoin v0.1 released
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
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On Fri, 2009-01-09 at 03:27 +0800, Satoshi Nakamoto wrote:


> Announcing the first release of Bitcoin, a new electronic cash
> system that uses a peer-to-peer network to prevent double-
spending.
> It's completely decentralized with no server or central authority.

I'm currently reading through your paper. At the timestamp server


section you mention newspapers and usenet, so I thought you might be
interested in this if you have not seen it already:

http://www.publictimestamp.org/

By the way, I'm also currently running the alpha code on one of my
workstations. So far it has two "Generated" messages, however the
"Credit" field for those is 0.00 and the balance hasn't changed. Is
this due to the age/maturity requirement for a coin to be valid?

Cheers,

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From satoshi@vistomail.com Mon Jan 12 18:52:45 2009


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Subject: Re: Bitcoin v0.1 released
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> I'm currently reading through your paper. At the timestamp server
> section you mention newspapers and usenet, so I thought you might
be
> interested in this if you have not seen it already:
>
> http://www.publictimestamp.org/

Thanks, I hadn't seen that yet. It looks very well presented.


There was an older one that's been running for a long time that
publishes its hashes to Usenet. I'm surprised this one isn't
using Usenet, although it is kind of difficult to get access to
post to Usenet in an automated way these days. If they can get a
magazine or newspaper to publish their hashes, it would work a lot
easier in court for their purposes. Bitcoin and all timestamp
servers share the basic functionality of periodically collecting
things into blocks and hashing them into a chain.
> By the way, I'm also currently running the alpha code on one of my
> workstations. So far it has two "Generated" messages, however the
> "Credit" field for those is 0.00 and the balance hasn't changed.
Is
> this due to the age/maturity requirement for a coin to be valid?

Right, the credit field stays 0.00 until it matures, then it'll be
50.00. Do you think it would be clearer if I left the credit
field blank until it matures? I should put some text in the
transaction details (when you double click on it) explaining how
it works. (was it obvious you can doubleclick on a line for
details?)

Be sure to upgrade to v0.1.3 if you haven't already. This version


has really stabilized things.

Satoshi

From dtrammell@dustintrammell.com Mon Jan 12 21:29:52 2009


Subject: Re: Bitcoin v0.1 released
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
In-Reply-To: <CHILKAT-MID-8f43d6cf-f570-d943-f12d-
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On Tue, 2009-01-13 at 02:33 +0800, Satoshi Nakamoto wrote:


> Thanks, I hadn't seen that yet. It looks very well presented.
> There was an older one that's been running for a long time that
> publishes its hashes to Usenet. I'm surprised this one isn't
> using Usenet, although it is kind of difficult to get access to
> post to Usenet in an automated way these days. If they can get a
> magazine or newspaper to publish their hashes, it would work a lot
> easier in court for their purposes. Bitcoin and all timestamp
> servers share the basic functionality of periodically collecting
> things into blocks and hashing them into a chain.

It actually posts the hash blocks to a Google Group called


'proof-hashes', so similar result as if it were posting to Usenet.

http://groups.google.com/group/proof-hashes

Since I run that group, and it's sole purpose is to archive


proof-of-work hashes, feel free to join an account to have your
system
post there as well if you like.

> Right, the credit field stays 0.00 until it matures, then it'll be
> 50.00. Do you think it would be clearer if I left the credit
> field blank until it matures? I should put some text in the
> transaction details (when you double click on it) explaining how
> it works. (was it obvious you can doubleclick on a line for
> details?)

No, I think having $0.00 there is more appropriate than being blank.
The entries in my BitCoin software (4 of them now) all say
'unconfirmed'
however, so I'm not sure what that means, but I did grok that the
coins
were generated and just not 'mature' yet, but I had also read your
whitepaper so I may have understood that concept from there. When
the
coins mature, will that generate a new 'credit' transaction, or will
the
existing generation transaction line's credit field be updated?

No, I was unaware that you could double-click a transaction line for
further details... I just did that and it currently just has the
same
information there that is in the transaction line. Putting more
information there would definitely be useful.

> Be sure to upgrade to v0.1.3 if you haven't already. This version


> has really stabilized things.

I was running 0.1.1... I will update now. Perhaps a new version


notification or auto-update feature is in order? (:

Electronic currency and cryptography are two things that I am very


interested in so as you would assume I was drawn to this project
immediately when I saw it posted to the Cryptography email list.
Feel
free to ping me for feedback or to test out new features, I'll be
happy
to help out.
Cheers,

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From dtrammell@dustintrammell.com Mon Jan 12 21:40:58 2009


Subject: Re: Bitcoin v0.1 released
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
In-Reply-To: <CHILKAT-MID-8f43d6cf-f570-d943-f12d-
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On Tue, 2009-01-13 at 02:33 +0800, Satoshi Nakamoto wrote:


> Be sure to upgrade to v0.1.3 if you haven't already. This version
> has really stabilized things.

Two issues with upgrading:


When closing my previous version (help said 0.1.1 but I think it was
really 0.1.0), the process did not exit. The UI exited but the
process
remained. I had to manually kill the process before I was able to
start
version 0.1.3.

Upon opening version 0.1.3, all four of my transaction entries still


say
'unconfirmed', but now the Descriptions say 'Generated (not
accepted)'.
Does this mean that some other node had extended the chain first and
my
coins were generated in a dead branch? If so, why did the previous
instance of the software not detect this immediately and begin
generating coins in the winning branch? Bug in 0.1.0?

I'll watch this instance and see how it goes...

Thanks,

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From dtrammell@dustintrammell.com Mon Jan 12 21:49:02 2009


Subject: One Other Question
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
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One other question I had... What prevents the single node with the
most
CPU power from generating and retaining the majority of the
BitCoins?
If every node is working independently of all others, if one is
significantly more powerful than the others, isn't it probable that
this
node will reach the proper conclusion before other nodes? An
underpowered node may get lucky once in a while, but if they are at
a
significant horsepower advantage I would expect the majority of
BitCoins
to be generated by the most powerful node.

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From satoshi@vistomail.com Tue Jan 13 07:55:20 2009


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Subject: Re: Bitcoin v0.1 released
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> It actually posts the hash blocks to a Google Group called


> 'proof-hashes', so similar result as if it were posting to Usenet.
>
> http://groups.google.com/group/proof-hashes
>
> Since I run that group, and it's sole purpose is to archive
> proof-of-work hashes, feel free to join an account to have your
system
> post there as well if you like.

Sweet, I was looking for a group like that on Usenet at one point to
see
what I would use if I needed, and nothing really fit. I'm sure
Google
groups is a lot easier to post to.

There are some scenarios where a Usenet or Google group could be


used as
a supplemental defence. Bitcoin is at its most vulnerable in the
beginning when the total network CPU power is small. That's offset
by
the fact that the incentive to attack it is also low when it's
small.
Hopefully the easy solution of just growing up and getting past that
stage will work. If not, there are ways a Google group could help,
if
it really came to that.

> Electronic currency and cryptography are two things that I am very
> interested in so as you would assume I was drawn to this project
> immediately when I saw it posted to the Cryptography email list.
Feel
> free to ping me for feedback or to test out new features, I'll be
happy
> to help out.

We definitely have similar interests!

You know, I think there were a lot more people interested in the
90's,
but after more than a decade of failed Trusted Third Party based
systems
(Digicash, etc), they see it as a lost cause. I hope they can make
the
distinction, that this is the first time I know of that we're trying
a
non-trust based system.

> When the


> coins mature, will that generate a new 'credit' transaction, or
will the
> existing generation transaction line's credit field be updated?

The existing transaction line will change.

> Upon opening version 0.1.3, all four of my transaction entries


still say
> 'unconfirmed', but now the Descriptions say 'Generated (not
accepted)'.
> Does this mean that some other node had extended the chain first
and my
> coins were generated in a dead branch? If so, why did the previous
> instance of the software not detect this immediately and begin
> generating coins in the winning branch? Bug in 0.1.0?

You're right, sorry about that. It's the bug that was fixed in
0.1.3.
The communications thread would get blocked, so you would make
connections, but they would go silent after a while. When you found
a
block, you couldn't broadcast it to the network, so it didn't get
into
the chain. You weren't receiving anything either to know that the
network had gone on without you, until you restarted it.

The bug is also what caused bitcoin.exe to fail to exit. The


communications thread was blocked and failed to exit. Bitcoin does
a
careful shutdown in case it might be in the middle of an important
transaction, but actually it's completely safe to kill it.

This is all fixed in 0.1.3. If you give me your IP, I'll send you
some
coins.

> One other question I had... What prevents the single node with the
most
> CPU power from generating and retaining the majority of the
BitCoins?
> If every node is working independently of all others, if one is
> significantly more powerful than the others, isn't it probable
that this
> node will reach the proper conclusion before other nodes? An
> underpowered node may get lucky once in a while, but if they are
at a
> significant horsepower advantage I would expect the majority of
BitCoins
> to be generated by the most powerful node.

It's not like a race where if one car is twice as fast, it'll always
win. It's an SHA-256 that takes less than a microsecond, and each
guess
has an independent chance of success. Each computer's chance of
finding
a hash collision is linearly proportional to it's CPU power. A
computer
that's half as fast would get half as many coins.

> I'll watch this instance and see how it goes...

Let me know how it goes. If you have any trouble with it, send me
your
debug.log file. I can often figure out what went wrong just from
that.

Satoshi

From dtrammell@dustintrammell.com Tue Jan 13 18:40:28 2009


Subject: Re: Bitcoin v0.1 released
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
In-Reply-To: <CHILKAT-MID-4796e86e-
a686-4a4b-2438-8bec9d82ecfe@server123>
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On Tue, 2009-01-13 at 15:39 +0800, Satoshi Nakamoto wrote:


> Sweet, I was looking for a group like that on Usenet at one point
to see
> what I would use if I needed, and nothing really fit. I'm sure
Google
> groups is a lot easier to post to.

Yea, that particular group is completely open, you don't have to


join to
post (in fact I think I made it difficult for people to actually
join),
you just email proof-hashes@googlegroups.com and the content of the
email gets posted to the group.

> There are some scenarios where a Usenet or Google group could be
used as
> a supplemental defence. Bitcoin is at its most vulnerable in the
> beginning when the total network CPU power is small. That's
offset by
> the fact that the incentive to attack it is also low when it's
small.
> Hopefully the easy solution of just growing up and getting past
that
> stage will work. If not, there are ways a Google group could
help, if
> it really came to that.

Yea, I was thinking you could have a client post the current block
chain
every 10k blocks or something, just to occasionally document the
current
winning proof-of-work chain.

> We definitely have similar interests!

Indeed.

> You know, I think there were a lot more people interested in the
90's,
> but after more than a decade of failed Trusted Third Party based
systems
> (Digicash, etc), they see it as a lost cause. I hope they can
make the
> distinction, that this is the first time I know of that we're
trying a
> non-trust based system.=20

Yea, that was the primary feature that caught my eye. The real
trick
will be to get people to actually value the BitCoins so that they
become
currency. Currently, they're just collections of bits...

> This is all fixed in 0.1.3. If you give me your IP, I'll send you
some
> coins.

I'm currently at 24.28.79.95, but that's dynamic so it may change.


I've
had that address for a while though so hopefully my dhcp client is
being
successful at renewing and not losing my address. It does change
from
time to time, but that address should be good for a while.

> It's not like a race where if one car is twice as fast, it'll
always
> win. It's an SHA-256 that takes less than a microsecond, and each
guess
> has an independent chance of success. Each computer's chance of
finding
> a hash collision is linearly proportional to it's CPU power. A
computer
> that's half as fast would get half as many coins.

Ahh I see... So each guess is like the spin of a roulette wheel,


completely independent from all other guesses and the extra CPU
power
just translates to more successful guesses than anyone else.
Unfortunately my ability to understand complex mathematics is
conversely
proportional to how interested I am in cryptography (:

> Let me know how it goes. If you have any trouble with it, send me
your
> debug.log file. I can often figure out what went wrong just from
that.

Will do...

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From dtrammell@dustintrammell.com Thu Jan 15 00:05:15 2009


Subject: A few thoughts...
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
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I'm glad to see you considered the possibility of a BitCoin client


making a payment to itself and have an appropriate description in
the
transaction log (:

I did this primarily so that I could get a packet capture of the


network
traffic during a transaction to analyze. Without knowing your
packet
structure, I only see a bit of cleartext information in the packets,
mostly just what is shown in the transaction detail such as name and
comments. There are a couple of other strings that show upon the
wire
such as 'version' and 'reply', but the rest is pretty cryptic.

While pondering transactions, I realized that there is no


identifiable
information involved other than an IP address or a BitCoin address.
In
the case of the IP transaction, the BitCoin client seems to trust
that
the IP that it has connected to really is the intended recipient of
the
transaction. It is fairly trivial to launch a man-in-the-middle
attack
and steal incoming transactions. Consider the scenario where a
co-worker and myself have our workstations on the same LAN. Being
nefarious, I could be ARP poisoning the local broadcast domain and
routing all traffic destined for his workstation through my
workstation
as an intermediary. Both of us, not being good employees, play the
MMORPG-du-jour and like to buy and sell game items using BitCoins.
I
could easily watch for incoming connections on TCP port 8333 and
terminate them at my workstation rather than passing those
particular
connections on to his workstation. A bit convoluted, yes, but it
illustrates the point. This type of attack could be performed at
any
hop along the route between the two transacting parties. If I were
an
evil admin at Big ISP USA, well, you get the idea.

I would recommend not allowing the use of network addresses as the


address of an intended recipient. I would think it would be a bit
more
secure to always require a BitCoin address and do transactions that
way.
If I understand how that is done correctly, you just compute the
transaction into the block chain and let the intended recipient
'discover' it, correct? An alternative could be to allow the
network
nodes to provide a resolution service, where they ask around for the
network address of a BitCoin address, and if that node is online,
once a
consensus is agreed upon by the network for that address the sending
BitCoin application connects directly there. Because the BitCoin
addresses are tied to the keys of the node, I would think that some
method could be devised to prove ownership of that BitCoin address
by
the sending node and not to proceed with the transaction if so. At
the
very least I would recommend, if you intend to retain the recipient
addressing by IP method is to allow for matching a hash of a shared
secret between the parties or something that an intermediary would
not
know, but since you have the crypto in place, keys generated, etc.
anyhow, using that would be a much stronger solution.

Or am I over-thinking this and the network connection is just to


send
immediate notification of the transaction and context information
such
as the comment? The BitCoin application mentioned getting the
recipient's public key and a few other things, and there seems to be
a
lot more going on in the network traffic than what would be required
for
a simple notification.

Talk to you soon,


--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From satoshi@vistomail.com Thu Jan 15 19:15:23 2009


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> I've had that address for a while though so hopefully my dhcp
> client is being successful at renewing and not losing my address.
> It does change from time to time, but that address should be good
> for a while.

There's at least one node who's inbound IP keeps changing all the
time within the same class B. Maybe every time the program is
run. I wasn't expecting that.
Do you mind if I CC the rest of this to bitcoin-list or
Cryptography?

BTW, bitcoin-list is:


bitcoin-list@lists.sourceforge.net
Subscribe/unsubscribe page:
http://lists.sourceforge.net/mailman/listinfo/bitcoin-list
Archives:
http://sourceforge.net/mailarchive/forum.php?forum_name=bitcoin-list

> Dustin D. Trammell wrote:


> > Satoshi Nakamoto wrote:
> > You know, I think there were a lot more people interested in the
90's,
> > but after more than a decade of failed Trusted Third Party based
systems
> > (Digicash, etc), they see it as a lost cause. I hope they can
make the
> > distinction that this is the first time I know of that we're
trying a
> > non-trust-based system.
>
> Yea, that was the primary feature that caught my eye. The real
trick
> will be to get people to actually value the BitCoins so that they
become
> currency.

Hal sort of alluded to the possibility that it could be seen as a


long-odds investment. I would be surprised if 10 years from now
we're not using electronic currency in some way, now that we know
a way to do it that won't inevitably get dumbed down when the TTP
gets cold feet.

Even if it doesn't take off straight away, it's now available for
use by the next guy who comes up with a plan that needs some kind
of token or electronic currency. It could get started in a closed
system or narrow niche like reward points, donation tokens,
currency for a game or micropayments for adult sites. Once it
gets bootstrapped, there are so many applications if you could
effortlessly pay a few cents to a website as easily as dropping
coins in a vending machine.

It can already be used for pay-to-send e-mail. The send dialog is


resizeable and you can enter as long of a message as you like.
It's sent directly when it connects. The recipient doubleclicks
on the transaction to see the full message. If someone famous is
getting more e-mail than they can read, but would still like to
have a way for fans to contact them, they could set up Bitcoin and
give out the IP address on their website. "Send X bitcoins to my
priority hotline at this IP and I'll read the message personally."

Subscription sites that need some extra proof-of-work for their


free trial so it doesn't cannibalize subscriptions could charge
bitcoins for the trial.

Satoshi

From satoshi@vistomail.com Thu Jan 15 19:46:35 2009


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I group attacks into two classes:


1) Attacks that can only be done by someone actually in the chain
of communication
2) Attacks that can be done by anyone on the Internet from anywhere

Type 1 exposes you to people in your house or company on your


local LAN, admins at ISPs in between, and the LAN on the
recipient's side. Type 2 exposes you to a billion people who can
self-select to be attackers and get economy of scale when they
develop one technique to attack multiple victims.

Sending by IP requests a new public key, so yes, it's vulnerable


to type 1 man-in-the-middle. If that's a concern, sending to a
Bitcoin address doesn't have that vulnerability, although there's
a small privacy tradeoff. I have a feeling most of the time
people will get Bitcoin addresses off of non-SSL websites and
unsigned cleartext e-mail, which is already vulnerable to type 1
and type 2 through DNS poisoning.

One solution would be to use both the IP and Bitcoin addresses


when sending (maybe 1.2.3.4-1Kn8iojk...), where the recipient uses
the public key of the Bitcoin address to sign the new public key
to prove that you're sending to who you think you are. If the
system starts to be used for real business purposes, I will
certainly implement that. Another solution is to use SSL.

For now, it's pretty obvious that if you send to an IP, you didn't
give any other identifying information about the recipient, so
you're blindly sending to whoever answers that IP.

Another feature for later is an option to encrypt your wallet.

> If I understand how that is done correctly, you just compute the
> transaction into the block chain and let the intended recipient
> 'discover' it, correct?

That's correct.

> An alternative could be to allow the network


> nodes to provide a resolution service, where they ask around for
the
> network address of a BitCoin address, and if that node is online,
once a
> consensus is agreed upon by the network for that address the
sending
> BitCoin application connects directly there.

It would be nice to only need the Bitcoin address and have the IP
worked out behind the scenes. Might have privacy or denial of
service issues. Certainly before another sending method is
implemented, there's plenty of time now to fully think through the
design and make sure it's the best way.

Satoshi

From dtrammell@dustintrammell.com Thu Jan 15 19:03:34 2009


Subject: Re: A few thoughts...
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
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On Fri, 2009-01-16 at 03:42 +0800, Satoshi Nakamoto wrote:


> Sending by IP requests a new public key, so yes, it's vulnerable
> to type 1 man-in-the-middle. If that's a concern, sending to a
> Bitcoin address doesn't have that vulnerability, although there's
> a small privacy tradeoff. I have a feeling most of the time
> people will get Bitcoin addresses off of non-SSL websites and
> unsigned cleartext e-mail, which is already vulnerable to type 1
> and type 2 through DNS poisoning.

True, but the upside to using the BitCoin address is that two people
can
communicate via a number of different channels to verify the
address.
If my friend gets my address off my website, and thinks something
fishy
is going on, he can call me, or IM me, or email me, etc. to verify
the
address. An attacker would then have to basically be replacing my
address with the malicious one in every possible communications
channel,
including voice, which is a difficult feat. MITMing the direct
communication via network addresses doesn't have that benefit
because
the attacker is spoofing the address or intercepting. My friend can
verify what my address is with me in the same ways, however
verifying
the address doesn't actually improve the situation.

> One solution would be to use both the IP and Bitcoin addresses
> when sending (maybe 1.2.3.4-1Kn8iojk...), where the recipient uses
> the public key of the Bitcoin address to sign the new public key
> to prove that you're sending to who you think you are. If the
> system starts to be used for real business purposes, I will
> certainly implement that. Another solution is to use SSL.

That is a good solution. If you transact regularly you probably


already
have the other person's BitCoin address in your address book.

> Another feature for later is an option to encrypt your wallet.

One thing that came to mind on this topic is the potential for
BitCoin
loss if you have a system failure. The application doesn't seem to
store any data in the directory that it runs in, so I assume it's
stored
in the registry and other places (haven't cracked out
ProcessExplorer
yet to check myself), so it may be a good idea to have the
application
be able to export everything that it needs for recovery to a file
that
could be backed up off of the system.
=20
> It would be nice to only need the Bitcoin address and have the IP
> worked out behind the scenes. Might have privacy or denial of
> service issues. Certainly before another sending method is
> implemented, there's plenty of time now to fully think through the
> design and make sure it's the best way.

You could always make that optional, such as a toggle that says
'Advertise my BitCoin address to the network' that the user could
turn
on or off. If you're not found on the network when searched for by
BitCoin address, the transaction is inserted into the block-chain as
normal. If you are, the transaction meta-data could be communicated
to
the network address.

One other thing I noticed today is that if you close the application
it
doesn't appear to cleanly close it's network sockets (TCP RST's
start
flying). Probably an item for the low-priority todo list (:

Talk to you later,

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From dtrammell@dustintrammell.com Thu Jan 15 19:14:27 2009


Subject: Re: Bitcoin v0.1 released
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
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On Fri, 2009-01-16 at 03:10 +0800, Satoshi Nakamoto wrote:


> There's at least one node who's inbound IP keeps changing all the
> time within the same class B. Maybe every time the program is
> run. I wasn't expecting that.

Pretty sure that's not me. My BitCoin application at work should be


coming from our static NAT address and my connection at home has had
the
IP that I gave you for at least 3 days now (that I've been
transferring
coins between them for test purposes).

> Do you mind if I CC the rest of this to bitcoin-list or


> Cryptography?

Sure, no problem.

> BTW, bitcoin-list is:


> bitcoin-list@lists.sourceforge.net
> Subscribe/unsubscribe page:
> http://lists.sourceforge.net/mailman/listinfo/bitcoin-list
> Archives:
> http://sourceforge.net/mailarchive/forum.php?forum_name=3Dbitcoin-
list

I'll join right now, thanks (:

> Hal sort of alluded to the possibility that it could be seen as a


> long-odds investment. I would be surprised if 10 years from now
> we're not using electronic currency in some way, now that we know
> a way to do it that won't inevitably get dumbed down when the TTP
> gets cold feet.

Yes, I saw that message and was one of the other reasons I started
up a
node so quickly. My systems aren't doing much of anything else
while
idle, so why not create BitCoins? And if they're worth something
someday...? Bonus!

> Even if it doesn't take off straight away, it's now available for
> use by the next guy who comes up with a plan that needs some kind
> of token or electronic currency. It could get started in a closed
> system or narrow niche like reward points, donation tokens,
> currency for a game or micropayments for adult sites. Once it
> gets bootstrapped, there are so many applications if you could
> effortlessly pay a few cents to a website as easily as dropping
> coins in a vending machine.=20

I can see how various types of sites that have a need for
micropayments
could use them, however I also see an impedement to adoption if they
want to use an existing BitCoin peer group rather than a closed
system
since they would first have to generate enough coins to support what
they intend to do (or buy them from someone else). A closed system
obviously doesn't have that problem.

> It can already be used for pay-to-send e-mail. The send dialog is
> resizeable and you can enter as long of a message as you like.
> It's sent directly when it connects. The recipient doubleclicks
> on the transaction to see the full message. If someone famous is
> getting more e-mail than they can read, but would still like to
> have a way for fans to contact them, they could set up Bitcoin and
> give out the IP address on their website. "Send X bitcoins to my
> priority hotline at this IP and I'll read the message personally."

Interesting application (:

> Subscription sites that need some extra proof-of-work for their
> free trial so it doesn't cannibalize subscriptions could charge
> bitcoins for the trial.

Another good idea.

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From satoshi@vistomail.com Fri Jan 16 18:35:31 2009


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> Dustin D. Trammell wrote:


> > Satoshi Nakamoto wrote:
> > You know, I think there were a lot more people interested in the
90's,
> > but after more than a decade of failed Trusted Third Party based
systems
> > (Digicash, etc), they see it as a lost cause. I hope they can
make the
> > distinction that this is the first time I know of that we're
trying a
> > non-trust-based system.
>
> Yea, that was the primary feature that caught my eye. The real
trick
> will be to get people to actually value the BitCoins so that they
become
> currency.
I would be surprised if 10 years from now we're not using
electronic currency in some way, now that we know a way to do it
that won't inevitably get dumbed down when the trusted third party
gets cold feet.

It could get started in a narrow niche like reward points,


donation tokens, currency for a game or micropayments for adult
sites. Initially it can be used in proof-of-work applications
for services that could almost be free but not quite.

It can already be used for pay-to-send e-mail. The send dialog is


resizeable and you can enter as long of a message as you like.
It's sent directly when it connects. The recipient doubleclicks
on the transaction to see the full message. If someone famous is
getting more e-mail than they can read, but would still like to
have a way for fans to contact them, they could set up Bitcoin and
give out the IP address on their website. "Send X bitcoins to my
priority hotline at this IP and I'll read the message personally."

Subscription sites that need some extra proof-of-work for their


free trial so it doesn't cannibalize subscriptions could charge
bitcoins for the trial.

It might make sense just to get some in case it catches on. If


enough people think the same way, that becomes a self fulfilling
prophecy. Once it gets bootstrapped, there are so many
applications if you could effortlessly pay a few cents to a
website as easily as dropping coins in a vending machine.

Satoshi Nakamoto
http://www.bitcoin.org

From satoshi@vistomail.com Fri Jan 16 18:42:18 2009


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> One thing that came to mind on this topic is the potential for
BitCoin
> loss if you have a system failure. The application doesn't seem to
> store any data in the directory that it runs in, so I assume it's
stored
> in the registry and other places (haven't cracked out
ProcessExplorer
> yet to check myself), so it may be a good idea to have the
application
> be able to export everything that it needs for recovery to a file
that
> could be backed up off of the system.

The files are in "%appdata%\Bitcoin", that's the directory to


backup. The data is stored in a transactional database DBM, so
it should be safe from loss if there's a crash or power failure.

%appdata% is per-user access privilege. Most new programs like


Firefox store their settings files there, despite the headwind of
Microsoft changing the directory name with every Windows release
and being full of spaces and so long it runs off the screen.

> One other thing I noticed today is that if you close the
application it
> doesn't appear to cleanly close it's network sockets (TCP RST's
start
> flying). Probably an item for the low-priority todo list (:

Just now added code to the next release for that.

Satoshi

From owner-cryptography@metzdowd.com Sat Jan 17 14:58:34 2009


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From: "Satoshi Nakamoto" <satoshi@vistomail.com>
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> Dustin D. Trammell wrote:


> > Satoshi Nakamoto wrote:
> > You know, I think there were a lot more people interested in the
90's,
> > but after more than a decade of failed Trusted Third Party based
systems
> > (Digicash, etc), they see it as a lost cause. I hope they can
make the
> > distinction that this is the first time I know of that we're
trying a
> > non-trust-based system.
>
> Yea, that was the primary feature that caught my eye. The real
trick
> will be to get people to actually value the BitCoins so that they
become
> currency.

I would be surprised if 10 years from now we're not using


electronic currency in some way, now that we know a way to do it
that won't inevitably get dumbed down when the trusted third party
gets cold feet.

It could get started in a narrow niche like reward points,


donation tokens, currency for a game or micropayments for adult
sites. Initially it can be used in proof-of-work applications
for services that could almost be free but not quite.

It can already be used for pay-to-send e-mail. The send dialog is


resizeable and you can enter as long of a message as you like.
It's sent directly when it connects. The recipient doubleclicks
on the transaction to see the full message. If someone famous is
getting more e-mail than they can read, but would still like to
have a way for fans to contact them, they could set up Bitcoin and
give out the IP address on their website. "Send X bitcoins to my
priority hotline at this IP and I'll read the message personally."

Subscription sites that need some extra proof-of-work for their


free trial so it doesn't cannibalize subscriptions could charge
bitcoins for the trial.

It might make sense just to get some in case it catches on. If


enough people think the same way, that becomes a self fulfilling
prophecy. Once it gets bootstrapped, there are so many
applications if you could effortlessly pay a few cents to a
website as easily as dropping coins in a vending machine.

Satoshi Nakamoto
http://www.bitcoin.org

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From dtrammell@dustintrammell.com Sun Jan 18 09:23:02 2009


Subject: BitCoin Transfer
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
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Hey Satoshi,

After that first transfer of 25.00, you didn't send me another


100.00
did you? I sent myself 100.00 from my BitCoin application at work
to my
one at home using the BitCoin address rather than by IP. My
application
at home has a 100.00 transfer received, however it's transaction
details
say "Received with: Satoshi 12higDjoCCNXSA95xZMWUdPvXNmkAduhWv".
That
is not my BitCoin address from work, so I assume this means that I
received the payment encoded with a block that was computed by your
client? If so, how did it know your name in addition to the BitCoin
address that generated it? I don't recall there being a place in my
application to even put my name.

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From satoshi@vistomail.com Sun Jan 18 17:01:09 2009


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Subject: Re: Bitcoin Transfer
Content-Type: text/plain
From: "Satoshi Nakamoto" <satoshi@vistomail.com>
Reply-To: satoshi@vistomail.com
To: dtrammell@dustintrammell.com
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It should be your Bitcoin address at home that you received it


with. There's no way for it to know who it's from, so the best
it can do is tell which of your addresses it was received on.
You can create multiple addresses and give a different address
to each person and label them to help figure out who's sending
to you.

It doesn't know any names other than what you tell it. The name
printed there is what's associated in your address book for that
address, either under the Address Book button or the "Change..."
button to the right of your Bitcoin address.

>Hey Satoshi,
>
>After that first transfer of 25.00, you didn't send me another
100.00
>did you? I sent myself 100.00 from my BitCoin application at work
to my
>one at home using the BitCoin address rather than by IP. My
application
>at home has a 100.00 transfer received, however it's transaction
details
>say "Received with: Satoshi 12higDjoCCNXSA95xZMWUdPvXNmkAduhWv".
That
>is not my BitCoin address from work, so I assume this means that I
>received the payment encoded with a block that was computed by your
>client? If so, how did it know your name in addition to the
BitCoin
>address that generated it? I don't recall there being a place in
my
>application to even put my name.
>
>--
>Dustin D. Trammell
>dtrammell@dustintrammell.com
>http://www.dustintrammell.com
>
From dtrammell@dustintrammell.com Sun Jan 18 18:09:32 2009
Subject: Re: Bitcoin Transfer
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
In-Reply-To: <CHILKAT-
MID-365d0fe3-70f0-6f32-75a4-0c939706daf9@server123>
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On Mon, 2009-01-19 at 00:54 +0800, Satoshi Nakamoto wrote:


> It should be your Bitcoin address at home that you received it
> with. There's no way for it to know who it's from, so the best
> it can do is tell which of your addresses it was received on.
> You can create multiple addresses and give a different address
> to each person and label them to help figure out who's sending
> to you.

Ah! I didn't even notice it was my address at home, you're right (:


I
do have multiple addresses created at home so I didn't make the
connection.

> It doesn't know any names other than what you tell it. The name
> printed there is what's associated in your address book for that
> address, either under the Address Book button or the "Change..."
> button to the right of your Bitcoin address.

Ahh you're right, 'Satoshi' is associated with the address that


received
the payment under the Change button's addresses. I don't recall
setting
that value though, is that the default or something? (this is the
first,
default, address that the application generated itself when I first
ran
it)

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From satoshi@vistomail.com Mon Jan 19 17:02:37 2009


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>On Mon, 2009-01-19 at 00:54 +0800, Satoshi Nakamoto wrote:


>> It should be your Bitcoin address at home that you received it
>> with. There's no way for it to know who it's from, so the best
>> it can do is tell which of your addresses it was received on.
>> You can create multiple addresses and give a different address
>> to each person and label them to help figure out who's sending
>> to you.
>
>Ah! I didn't even notice it was my address at home, you're right
(: I
>do have multiple addresses created at home so I didn't make the
>connection.
>
>> It doesn't know any names other than what you tell it. The name
>> printed there is what's associated in your address book for that
>> address, either under the Address Book button or the "Change..."
>> button to the right of your Bitcoin address.
>
>Ahh you're right, 'Satoshi' is associated with the address that
received
>the payment under the Change button's addresses. I don't recall
setting
>that value though, is that the default or something? (this is the
first,
>default, address that the application generated itself when I first
ran
>it)

The first default one is labelled "Your Address" when it's created.

All the places where address book labels are set are where the user
manually sets it. The only time it automatically adds a label is a
blank one when you send to a new address. I guess you could have
entered the label on an address you thought was mine but the
software was confusing and you put it in the wrong place.

Address book labels for receiving addresses is confusing but I'm not
sure what else to do. Anyone using it for more than just simple
purposes would need to create different receiving addresses for each
payer so they could tell who's paying them. That concept doesn't
have much analogy in the real world.

Satoshi

From dtrammell@dustintrammell.com Mon Jan 19 19:58:23 2009


Subject: Re: Bitcoin Transfer
From: "Dustin D. Trammell" <dtrammell@dustintrammell.com>
To: satoshi@vistomail.com
In-Reply-To: <CHILKAT-MID-a4a29e15-b5ce-16c0-623b-
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On Tue, 2009-01-20 at 00:44 +0800, Satoshi Nakamoto wrote:


> The first default one is labelled "Your Address" when it's
created.
>=20
> All the places where address book labels are set are where the
user manua=
lly sets it. The only time it automatically adds a label is a blank
one wh=
en you send to a new address. I guess you could have entered the
label on =
an address you thought was mine but the software was confusing and
you put =
it in the wrong place.

That would make sense, I bet that's what happened.

> Address book labels for receiving addresses is confusing but I'm
not sure=
what else to do. Anyone using it for more than just simple
purposes would=
need to create different receiving addresses for each payer so they
could =
tell who's paying them. That concept doesn't have much analogy in
the real=
world.

I think had it said "Received with address: X" rather than just
"Received with: X" I think I would have understood, although I'm
sure
that address being mislabeled 'Satoshi' was the primary reason for
my
initial confusion. You're right though, there's really nothing
comparable in the current financial system that people are used to
other
than maybe being able to use multiple recipient email addresses for
PayPal. Perhaps it could say "Received payment to: X"?

--=20
Dustin D. Trammell
dtrammell@dustintrammell.com
http://www.dustintrammell.com

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From satoshi@vistomail.com Sun Jan 25 16:03:21 2009


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Hal Finney wrote:


> > * Spammer botnets could burn through pay-per-send email filters
> > trivially
> If POW tokens do become useful, and especially if they become
money,
> machines will no longer sit idle. Users will expect their
computers to
> be earning them money (assuming the reward is greater than the
cost to
> operate). A computer whose earnings are being stolen by a botnet
will
> be more noticeable to its owner than is the case today, hence we
might
> expect that in that world, users will work harder to maintain
their
> computers and clean them of botnet infestations.
Another factor that would mitigate spam if POW tokens have value:
there would be a profit motive for people to set up massive
quantities of fake e-mail accounts to harvest POW tokens from
spam. They'd essentially be reverse-spamming the spammers with
automated mailboxes that collect their POW and don't read the
message. The ratio of fake mailboxes to real people could become
too high for spam to be cost effective.

The process has the potential to establish the POW token's value
in the first place, since spammers that don't have a botnet could
buy tokens from harvesters. While the buying back would
temporarily let more spam through, it would only hasten the
self-defeating cycle leading to too many harvesters exploiting the
spammers.

Interestingly, one of the e-gold systems already has a form of


spam called "dusting". Spammers send a tiny amount of gold dust
in order to put a spam message in the transaction's comment field.
If the system let users configure the minimum payment they're
willing to receive, or at least the minimum that can have a
message with it, users could set how much they're willing to get
paid to receive spam.

Satoshi Nakamoto

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