11. Calculations
Binomial Random Walk

Bitcoin White Paper
https://t.me/BitCoinWP


La caminata aleatoria o paseo aleatorio o camino aleatorio, abreviado en inglés como RW (Random Walks),
https://es.wikipedia.org/wiki/Camino_aleatorio


https://math.stackexchange.com/questions/1766678/binomial-random-walk


The first part of this chapter introduces the random walk initially in a form with stochastic shocks generated by a random variable with a binomial distribution. In the simplest version of this process the random variable has two equally likely outcomes resulting in a symmetric binomial random walk. The idea is simple enough and the terminology is due to a problem posed by Pearson (see Hughes, 1995, p.53), although the concept dates from much earlier, originating in games of chance. Starting from the origin, at regular intervals a walker takes equally spaced steps either to the left (north) or to the right (south), with equal probability. The walker’s progress can be plotted in two dimensions by recording the distance from the origin on the vertical axis and the elapsed time on the horizontal axis; for example, one step to the north followed by one step to the south returns the walker to the origin. Such a graph will look like a series of equally sized steps, see Figure 1.1; perhaps surprisingly, the resulting path does not generally oscillate around zero, the theoretical mean of the process. This lack of ‘mean reversion’ is one of the key characteristics of a random walk. In this form the process has its origins in gambling, where the gambler gains or loses an equal amount at each gamble, with equal probability, and intuition might suggest that the gambler is not systematically losing or winning. The ‘distance from the origin’ corresponds to the gambler’s win/lose tally, which is one-dimensional and can be represented on the vertical axis.
https://link.springer.com/chapter/10.1057/9780230299306_1

Publication date 2008-10-03 https://archive.org/details/bitcoin-a-peer-to-peer-electronic-cash-system

Since 2007. At some point I became convinced there was a way to do this without any trust required at all and couldn't resist to keep thinking about it. Much more of the work was designing than coding.

Users can link identity.

See Section 10 of my Whitepaper.

At no point is identity removed from bitcoin. Rather, in the new privacy model of bitcoin identities are exchanged where needed between individual parties. Today, there are laws for cash and the transaction of money using cash. Because you're using cash does not mean that you can avoid recording identity.

Know your customer requirements, customer due diligence and anti-money laundering laws all cover cash.

https://www.gov.uk/guidance/money-laundering-regulations-high-value-dealer-registration

Whether it is a single transaction or multiples, where the value is €10,000 or more, the person transacting would require registration as a high-value dealer.

This even applies if you make instalments or payments on account. Bitcoin is a cash money system. Consequently, all of the money laundering regulations concerning cash will apply.

If you're receiving small amounts of money, not only micro-payments but even if you're running a coffee shop or restaurant, there will be no requirement to register as a high-value dealer. A real estate broker offering commercial leases could easily exceed this amount and thus have to require registration.

The majority of exchanges made using bitcoin will not require registration. Any exchange or custodial service will require registration. Local bitcoin and related organisations will require registration. When people go wrong is to think that normal everyday coffee shops and related organisations will require registration.

The need for trust is mitigated using registered identity based keys and hierarchies of linked keys.

CSW
Mar 26, 2020
https://metanet-icu.slack.com/archives/C5131HKFX/p1585249153076800?thread_ts=1585249153.076800&cid=C5131HKFX

https://t.me/CSW_Slack/2103

There are separate legislations here in the United Kingdom but I won't go into in detail but in the United States, the majority of states in the US have implemented the uniform commercial code.

Article 2 of the UCC governing contracts for sales of goods and other exchanges. and this also covers commodities.

Bitcoin is a commmodity.

The UCC rules concerning sales contracts are mandatory and cannot be mitigated or removed using a warranty

So, where software warranties state that the merchantability doesn't matter, this is not valid.

The implied warranty of fitness for a particular purpose that comes under UCC section 2-315 does not allow you to exclude parts of the software and being that the bitcoin White Paper promises protection to the buyer and not merely the possessor, this cannot be excluded.

Ownership is defined within the White Paper (p. 2, 6.)

Possession is not.

If you wonder why I have studied international law and letters of credit, why I wrote about documentary credit contracts before bitcoin,

https://www.lexisnexis.co.uk/legal/guidance/commodities-types-of-contract-disputes

It becomes necessary to remember that bitcoin is a commodity. As a commodity it is covered under a variety of different acts There was always a reason for not making bitcoin an account based system

CSW
May 3, 2021
https://metanet-icu.slack.com/archives/C5131HKFX/p1620074377419900?thread_ts=1620074377.419900&cid=C5131HKFX

https://t.me/CSW_Slack/2182

These costs and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communications channel without a trusted party.

Take the time to read this properly.

This does not state that you send to the network and that the network sends to you.

This states that one person can make a payment to another person.

if you don't get that, the following paragraph makes this very clear.

"allowing any two willing parties to transact directly with each other without the need for a trusted third party."
@BitCoinWP

Again, this is not stating that you send to the nodes to validate your transaction it is saying that Bob sends to Alice and that Alice can use the Blockchain to record the transaction

To have the network as the intermediary is to have an intermediary

i.e. a trusted third-party

CSW
May 4, 2021
https://metanet-icu.slack.com/archives/C5131HKFX/p1620136352495100?thread_ts=1620136352.495100&cid=C5131HKFX

https://t.me/CSW_Slack/2195

Follow up with Quotes

Dr. Craig Wright awarded USA Copyright for Bitcoin White Paper
The USA Copyright office has awarded Dr. Craig Steven Wright the copyright for the original Bitcoin whitepaper, which Dr. Wright originally published online in 2008 under the pseudonym Satoshi Nakamoto.
The copyright was awarded after the Copyright office was presented with the concrete proof that Dr. Wright was indeed the author of the seminal paper which started the Bitcoin revolution.
In addition to the original Bitcoin whitepaper, the USA Copyright office awarded Dr. Wright the copyright for most of the original Bitcoin code (version 0.1).
The copyrights can be found here.
 U.S. copyright registration no. TXu 2-136-996, effective date April 11, 2019, for the paper entitled Bitcoin: A Peer-to-Peer Electronic Cash System, with year of completion 2008. The registration recognizes the author as Craig Steven Wright, using the pseudonym Satoshi Nakamoto.
 U.S. copyright registration no. TX-8-708-058, effective date April 13, 2019, for computer program entitled Bitcoin, with year of completion 2009 and date of first publication January 3, 2009. The registration recognizes the author as Craig Steven Wright, using the pseudonym Satoshi Nakamoto. Wright wrote most of version 0.1 of the Bitcoin client software, and the registration covers the portions he authored.

Wright originally come out as the creator of Bitcoin in 2016, and provided proof to several people, including Gavin Anderson former lead developer of the Bitcoin project. However, the Bitcoin Core (BTC) group, who had commandeered the Bitcoin project, led a successful smear campaign against Dr. Wright.
The group had twisted the original vision of Bitcoin by stifling scaling attempts and creating secondary settlement networks, like the Lighting Network, which take transactions off chain and away from what Bitcoin was meant to be.
It was this bastardization, twisting and crippling of Bitcoin that turned it into what BTC is today. This pushed Wright to lift the Satoshi Nakamoto veil for good.
Dr. Wright explains, “When I wrote the bitcoin Whitepaper, I uploaded it on the bitcoin.org domain so that people would start understanding bitcoin. I've come to understand that few people if any of taken the time to understand what is written in this paper so I have formally published it and registered it with the copyright registry so that I can start teaching people the true meaning of what bitcoin is about and stop people twisting the narrative.”
That twisted narrative lead to criminals, like drug dealers and money launders, to become the face of Bitcoin. The accountability and traceability that the Bitcoin blockchain provides was left on the back burner, and it was marketed to the worst elements of society. Wright could not stand for that.
“The last thing that I said to Gavin Anderson in 2011 when I handed him the control of the code was that "I wish you wouldn't keep talking about me as a mysterious shadowy figure, the press just turns that into a pirate currency angle,” Dr. Wright recalls. “Maybe instead make it about the open source project and give more credit to your dev contributors; it helps motivate them.”
Now that Wright has reclaimed ownership of the Bitcoin whitepaper, he’s hoping his creation can regain the original mission it was meant to have. “Bitcoin was designed to be honest and not another criminal coin,” he said. “It's time for people to learn that and see that I'm (as Satoshi) not just some shady figure because I didn't want publicity”
Dr. Wright will be attending the upcoming CoinGeek Toronto scaling conference, and will feature prominently in a Fireside chat with Bitcoin Association Founding President Jimmy Nguyen. The conversation is bound to have plenty of revelations about the early history of Bitcoin, so it will be well worth attending.

https://coingeek.com/bitcoin-creator-craig-s-wright-satoshi-nakamoto-granted-us-copyright-registratio

CSW
May 21, 2019
https://t.me/CSW_Slack/2220

BitCoin White Paper
En castellano
Traducción:
@breathingdog

https://t.me/BitcoinWP/353

"Bitcoin Whitepaper Series Part 1: Introduction, Transactions, and Timestamp Server" Bitcoin and beyond - 12 sept 2018 - 41:17
https://youtu.be/8UXGMudloTM

"The Majority Decision is Represented by the Longest Chain"" Bitcoin and Beyond - 12 sept 2018 -1h17
https://youtu.be/TwfNBgjaa0o

2- "Miners, Inflation, and The Bitcoin (Cash) Whitepaper" Bitcoin and Beyond - 26 sept 2018 -1h
https://youtu.be/7nqKyfWl5aI

3 "The Bitcoin Whitepaper Series Part 3: Sections 7-12" Bitcoin and Beyond - 03 oct 2018 -1h01
https://youtu.be/rEF5f78gNBU

_Reputed, responsible and established fiduciary body all parties accept from an agreement, transaction or deal._

https://thelawdictionary.org/trusted-third-party/

CSW
Feb 6, 2020
https://metanet-icu.slack.com/archives/C5131HKFX/p1581177681098000

https://t.me/CSW_Slack/2307

What is TRUSTED THIRD PARTY?
Reputed, responsible and established fiduciary body all parties accept from an agreement, transaction or deal.

https://thelawdictionary.org/trusted-third-party/

3.    Servidor de sellado de tiempo
 

4.    Proof­of­Work

BitCoin White Paper
https://t.me/BitcoinWP/353

4.    Proof­ of­ Work
https://t.me/BitcoinWP/367

CSW
Sep 26, 2019
https://metanet-icu.slack.com/archives/C5131HKFX/p1569516387039500?thread_ts=1569516387.039500&cid=C5131HKFX

https://t.me/CSW_Slack/2311

_To solve this, we proposed a peer-to-peer network using proof-of-work to record a public history of transactions that quickly becomes computationally impractical for an attacker to change if honest nodes control a majority of CPU power._

You will note that I am very specific in the Whitepaper. In the sentence above, I have stated that a public history of transactions is created that is computationally impractical for an attacker to change. This is an important aspect that people overlook. I have not stated that bitcoin cannot be changed. If the honest nodes are acting to enforce the system, they can always seek to make the necessary alterations that they are required to do. Miners acting within the law can change the system. Those changes will be recorded. This leaves an audit trail available for all people to inspect and act on if necessary.

It is not impractical for the honest nodes to seek to change the public history while leaving a record of the change. Honest nodes will act to stop people who have been found to be money launderers, drug dealers, dealers and illicit material including stolen art or property or child porn.

When you read that comment in the conclusion to the Whitepaper what you need to consider is the nature of both the statement and its alternative. I have clearly stated that it is computationally impractical for an attacker to seek to change the bitcoin network. To do this they will leave evidence and come under the law.

What is missed in this statement is that I have not said at any point that it is impractical for an honest node working in conjunction with the other nodes to make a change to the bitcoin blockchain or code. By nature, miners are able to vote on the implementation of changes. If they seek to vote to act against the law they will face the consequences the law and this will include confiscation and civil loss. Bitcoin is not a cryptographic solution, it is not the desired anti-government thing that was wished for by cyberpunks, it is the product of my mind and I believe in law.

CSW
sep 26, 2019
https://metanet-icu.slack.com/archives/c5131hkfx/p1569516387039500?thread_ts=1569516387.039500&cid=c5131hkfx

https://t.me/CSW_Slack/2311