Stellar payment protocol

Stellar is a open source consensus protocol, forked out of Ripple.

White paper by David Mazières from Stellar Development Foundation “introduces a new model for consensus called federated Byzantine agreement (FBA). (…) and Stellar Consensus Protocol (SCP), a construction for FBA. Like all Byzantine agreement protocols, SCP makes no assumptions about the rational behavior of attackers. Unlike prior Byzantine agreement models, which presuppose a unanimously accepted membership list, SCP enjoys open membership that promotes organic network growth. Compared to decentralized proof of-work and proof-of-stake schemes, SCP has modest computing and financial requirements, lowering the barrier to entry and potentially opening up financial systems to new participants”

 

Bitcoins: Payments Among Men with No Names – by Sarah Meiklejohn et al

A Fistful of Bitcoins: Characterizing Payments Among Men with No Names
Sarah Meiklejohn, Marjori Pomarole, Grant Jordan, Kirill Levchenko, Damon McCoy, Geoffrey M. Voelker, Stefan Savage

“Bitcoin is a purely online virtual currency, unbacked by either physical commodities or sovereign obligation; instead, it relies on a combination of cryptographic protection and a peer-to-peer protocol for witnessing settlements. Consequently, Bitcoin has the unintuitive property that while the ownership of money is implicitly anonymous, its flow is globally visible. In this paper we explore this unique characteristic further, using heuristic clustering to group Bitcoin wallets based on evidence of shared authority, and then using re-identification attacks (i.e., empirical purchasing of goods and services) to classify the operators of those clusters. From this analysis, we characterize longitudinal changes in the Bitcoin market, the stresses these changes are placing on the system, and the challenges for those seeking to use Bitcoin for criminal or fraudulent purposes at scale.

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Smart Contracts – Nick Szabo

Smart Contracts: Building Blocks for Digital Markets

Copyright (c) 1996 by Nick Szabo

“…New institutions, and new ways to formalize the relationships that make up these institutions, are now made possible by the digital revolution. I call these new contracts “smart”, because they are far more functional than their inanimate paper-based ancestors. No use of artificial intelligence is implied. A smart contract is a set of promises, specified in digital form, including protocols within which the parties perform on these promises.Continue reading