Introduction
Robin Linus, the creator behind BitVM, has released a white paper titled "Bitstream" on November 11, 2023. This paper proposes a system that aims to reform the economic structure of file storage by introducing bitcoin payments. The system is designed to reward server contributions based on usage.
Bitstream: Overhauling Data Hosting with Bitcoin
The Bitstream white paper, authored by blockchain programmer Robin Linus, introduces a method where servers receive direct bitcoin payments for each file download they facilitate. This system addresses the current imbalance in hosting economics by aligning server profit with content demand.
Compensating Servers
According to the white paper, servers are compensated for their service to the network, which involves the distribution of files. The Bitstream system creates a directory of accountable servers from which clients can choose.
Swift Microtransactions for File Access
Bitstream leverages Bitcoin's payment channels, including technologies like the Lightning Network, Liquid, Chaumian ecash, Fedimint, or Cashu, to facilitate quick microtransactions for file access. The encrypted files are designed to prevent fraud, and a bond contract guarantees the client receives the exact file or can punish the server.
Merkle Tree for File Verification
Bitstream utilizes a Merkle tree for file verification, which enhances both the uniqueness and security of hosted data. By breaking down files into hashed components, the system can quickly confirm the accuracy of the content being transferred.
Uncompromising Security with One-Time Pad Cipher
Linus has implemented a straightforward encryption method using the one-time pad cipher for its uncompromising security guaranteed by bitwise XOR operations. If the encrypted file fails to decrypt correctly, the client can derive a succinct fraud proof.
Reception and Criticism
After the publication of the white paper, there were mixed reactions. Some people were enthusiastic about the proposal, while others were more critical. One person questioned if there would be frequent revolutions in Bitcoin, while another criticized the inclusion of user edge storage and bandwidth, stating that it doesn't solve any particular problem.
BitVM and Mainnet Transaction
Linus has also been working on the BitVM concept and recently implemented a Blake3 hash lock in Bitcoin Script, marking the first mainnet transaction. This development showcases the potential of the Bitstream framework.
Conclusion
The Bitstream white paper presents a unique approach to decentralized file hosting by integrating bitcoin payments. While the practical application of this system remains to be seen, it proposes an incentive system that eliminates the need for trust or heavy-weight cryptography. Share your thoughts and opinions on the Bitstream white paper in the comments section below.
Frequently Asked Questions
Is gold buying a good retirement option?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion bar is the best way to invest in precious metals. There are many ways to invest your gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs can include stocks of precious metals refiners and gold miners.
How much are gold IRA fees?
The Individual Retirement Account (IRA), fee is $6 per monthly. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
If you want to diversify, you may be required to pay extra fees. These fees vary depending on what type of IRA you choose. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Many providers also charge annual management fees. These fees are usually between 0% and 1%. The average rate for a year is.25%. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
Can I buy or sell gold from my self-directed IRA
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts can be described as financial instruments that are determined by the gold price. They let you speculate on future price without having to own the metal. You can only hold physical bullion, which is real silver and gold bars.
What is a gold IRA account?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase physical bullion gold coins at any point in time. To start investing in gold, it doesn't matter if you are retired.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold assets will not be subjected tax upon your death.
Your heirs will inherit your gold, and not pay capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done that, you'll receive an IRA custody. This company acts as a middleman between you and the IRS.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. The minimum deposit is $1,000. You'll get a higher rate of interest if you deposit more.
When you withdraw your gold from your IRA, you'll pay taxes on it. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
Even if your contribution is small, you might not have to pay any taxes. However, there are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
Avoid taking out more that 50% of your total IRA assets each year. Otherwise, you'll face steep financial consequences.
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
finance.yahoo.com
investopedia.com
cftc.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ
How To
How to Hold Physical Gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. But, this approach comes with risks. These companies may not survive the next few years. Even if they do survive, there is still the possibility of losing money to fluctuating gold prices.
You can also buy gold directly. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's easier to track how much gold is in your possession. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You're also less susceptible to theft than investing with stocks.
However, there are disadvantages. You won't get the bank's interest rates or investment money. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, tax man may want to ask where you put your gold.
BullionVault.com is the best website to learn about gold purchases in an IRA.
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By: Jamie Redman
Title: Bitstream White Paper Proposes Bitcoin Payments to Disrupt File Storage Economy
Sourced From: news.bitcoin.com/bitstream-white-paper-proposes-bitcoin-payments-to-disrupt-file-storage-economy/
Published Date: Sun, 12 Nov 2023 07:30:30 +0000
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