added poetic justice portion of the essay
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I fell in love with word-smithing in the eleventh grade after reading Shakespeare's sonnets because Iambic pentameter is the edge effect where the languages of Mathetmatics and English meet and I thought this was the coolest thing in the world. This inspired me to write my own Sonnets. I even gave one to my hopeless crush. She wasn't as impressed, but in retrospect, poetry was my first love.
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I had some flings with fiction, a few blogs, and in 2014 fell in love with a younger, sexier form of mathematical poetry--Bitcoin: A Peer-To-Peer Electronic Cash System. She taught me what Copernicus observed so long ago. Mathematics is the language of the universe. I did not understand most of the math in the white paper when I first read it. I had no idea what a "digital signature" was. I never had the word hash without the words corned beef in front of it, but I thought fractional reserve banking and bailouts helped the rich get richer and the poor get poorer. My limited background knowledge from messing around with Napster and BitTorrent clued me in incentivized incentivizedto the fact that Bitcoin was a full reserve banking system in cyberspace. Satoshi was gifted and the white paper looks like an important historical document. He writes in plain English, math, and C+ which means bitcoin is written in three languages like the Rosetta Stone.
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I had some flings with fiction, a few blogs, and in 2014 fell in love with a younger, sexier form of mathematical poetry--Bitcoin: A Peer-To-Peer Electronic Cash System. She taught me what Copernicus observed so long ago. Mathematics is the language of the universe. When I first read it, I did not understand most of the math. I had no idea what a "digital signature" was. I never had the word hash without the words corned beef in front of it, but believed **fractional reserve banking and bailouts helped the rich get richer and the poor get poorer**. My limited background knowledge from messing around with Napster and BitTorrent in my younger years gave me enough background knowledge to understand that Satoshi'swhite paper was an important historical document. He wrote in plain English, math, and C+ explaining Bitcoin in three languages like the Rosetta Stone.
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"To implement a distributed timestamp server on a Peer-To-Peer basis we will need to use a proof-of-work system similar to Adam Back's Hashcash, rather than newspaper or Usenet posts."
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--Satoshi Nakamoto, Bitcoin: A Peer To Peer Electronic Cash System
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@ -14,16 +14,17 @@ I had some flings with fiction, a few blogs, and in 2014 fell in love with a you
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## Proof Of Poetry
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Adam Back discovered hashcash. Satoshi cited this in the White paper, as noted above. Despite it's name, hashcash was not a "cryptocurrency." It would be more accurate to describe it as a digital stamp. Stamps have a cost, of course, and so does hashcash. We can't hand a piece of paper with a portrait of some dude wearing a wig, of course. We must pay for electronic stamps with the only resource computers can use, energy. This makes energy, or electricity rather, currency for computers. Therefore, you must pay for the hashcash stamp with electricity. As everyone who has been shocked by their electricity bill in the summer knows, electricity has a real cost. The beauty of hash cash is you wouldn't notice a difference on your electric bill if you sent a dozen emails a month. If you spammed the whole Word Wide Web with a chain-letter, chances are you'll cuss out your electric bill. Hashcash is a stamp you pay for with computational power, which requires your computer to get paid with electricity.
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Adam Back discovered hashcash. Satoshi cited this in the White paper. Despite it's name, hashcash was not a "cryptocurrency." Hashcash is more like a digital stamp. Stamps have a cost, of course, and so does hashcash. We can't hand a piece of paper with a portrait of some dude wearing a wig to a computer, of course. We must pay for electronic stamps with the only fungible currency computers can use, electriity. This makes electricity the de-facto currency for computers. Therefore, you must pay for the hashcash stamp with electricity. As anyone who has been shocked by their electricity bill in the summer knows, electricity has a real cost. The beauty of hash cash is you wouldn't notice a difference on your electric bill if you sent a dozen emails a month, but if you spammed the whole Word Wide Web with a chain-letter, your electric bill will drain your bank account . Hashcash is a stamp you pay for with computational power, which requires your computer to work. That work can only be paid for with electricity.
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Proof Of Work is a little different on hashcash than bitcoin because it uses SHA1 and bitcoin uses SHA256, but check line from hashcash.org out:
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Proof Of Work is a little different on hashcash than bitcoin because it uses SHA1 and bitcoin uses SHA256, but here's an example of how it works from hashcash.org:
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When you type this into the command line:
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`echo -n 0:030626:adam@cypherspace.org:6470e06d773e05a8 | sha1
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00000000c70db7389f241b8f441fcf068aead3f0
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`echo -n 0:030626:adam@cypherspace.org:6470e06d773e05a8 | sha1`
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`
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The computer will show you this answer:
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`00000000c70db7389f241b8f441fcf068aead3f0`
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See those C00l-looking zeros in the front? Satoshi called them “zero bits.” Whenever someone sends a bitcoin transaction, it goes to the mempool. This is like Purgatory for bitcoin transactions. A bitcoin doesn't get it's wings right away like when a bell rings on It's A Wonderful Life. It needs to be confirmed like a Catholic. If it's not confirmed, it does not reach heaven. You know how computers use electricity, but not paper money? Transactions don't have an actual afterlife in the clouds either, These transactions are trying to get into the precious, scarce blockspace of the bitcoin time chain. Miners include different transactions in a block template and add a nonce, number used once...I'm gonna stop myself here before readers die of boredom. It's just math. If you're interested in seeing this math in action play around with [this website](https://xorbin.com/). You can type whatever you want. The math works on all [ASCII](https://en.wikipedia.org/wiki/ASCII) characters because each letter or symbol represents a number.
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See those C00l-looking zeros in the front? Satoshi called them “zero bits.” Whenever someone sends a bitcoin transaction, it goes to the mempool. This is like Purgatory for bitcoin transactions. A bitcoin doesn't get it's wings right away like when a bell rings on It's A Wonderful Life. It needs to be confirmed like a Catholic. If it's not confirmed, it does not reach heaven. Transactions don't have an actual afterlife in the clouds, These transactions are trying to get into the precious, scarce blockspace of the bitcoin time chain. Miners include different transactions in a block template and add a nonce, number used once...I'm gonna stop myself here before readers die of boredom. It's just math. If you're interested in seeing this math in action play around with [this website](https://xorbin.com/). You can type whatever you want. The math works on all [ASCII](https://en.wikipedia.org/wiki/ASCII) characters because each letter or symbol represents a number.
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If we hash the code from hashcash.org above using the SHA1 calculator it gives us this result.
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@ -33,7 +34,7 @@ If we add a question mark to this text, we get this result.
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![the same thing with ?](https://i.nostr.build/QlWTMFzRPH32nthY.png)
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We see a totally different 64 character combination. This is how data is verified in Cyberseurity, and bitcoin is no different which should not suprise anyone since SHA256 is also used in cybersecurity. To change the math requires changing every single one of these transactions since January 3rd, 2009. How horifying would your electric bill need to be to accomplish this? I don't know, but It's not likely to happen since honesest miners are rewarded with fees, These fees are like tribute transactions must pay to get out of purgatory, Some transactions pay more, some try to pay less. The miners are incintivized to let the more expensive transactions to go through the pearly white gates of the bitcoin time chain.
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We see a totally different 40 character combination. This is the math used to verify data in Cyberseurity, and bitcoin is no different. To change the math requires changing every single one of these transactions since January 3rd, 2009. How horifying would your electric bill need to be to accomplish this? I don't know, but It's not likely to happen since honesest miners are rewarded with fees, These fees are like tribute transactions must pay to get out of purgatory, Some transactions pay more, some try to pay less. The miners are incintivized to let the more expensive transactions to go through the pearly white gates of the bitcoin time chain.
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Adam Back's email is not a transaction, but those leading zero bits are the backbone of the bitcoin time chain. If you hash my full legal name with SHA1, we get this result `02c53da577460a2e8eead6e85da88199c64eb1bd`. If we hash it with SHA256, I see two zero bits. `0024f0a28bf81851ed8490c4e87173f8790bd9d8ea9423442114d25ad7137f51` Pretty cool, right?
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@ -47,23 +48,27 @@ These zerobits are also found in the bitcoin timechain. Look at the blocks 87402
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Notice how each line from a from an instance of mepool that I run from a [Start9](https://store.start9.com/) server has zerobits in the front. This is because bitcoin uses the same matehmatical poetry that Adam Back Discovered in 1997. It's elegant, has a pattern, dare I say rhthym and looks like art like a sonnet.
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Notice how each line from a from an instance of mepool that I run from a [Start9](https://store.start9.com/) server has zerobits in the front. This is because bitcoin uses the same matehmatical poetry that Adam Back Discovered in 1997. It's elegant, has a pattern, dare I say rhthym and looks like a matematical sonnet.
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![shakespere sonnet 18](https://i.nostr.build/LFKPOX9jwC2a2l6W.png) Look at those last two lines. Like zerobits repeated in the bitcoin timechain, the words So long are repeated in the begining of lines 13 and 14. Bitcoin looks like poetry because bitcoin is poetry.
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![shakespere sonnet 18](https://i.nostr.build/LFKPOX9jwC2a2l6W.png)
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Look at those last two lines. Like zerobits repeated in the bitcoin timechain, the words So long are repeated in the begining of lines 13 and 14. Bitcoin looks like poetry because bitcoin is poetry.
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### The Difficulty Adjustment Is Poetic Justice
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Whenever a miner produces a hash with the required amount of zerobits to send the transactions from the mempool purgetory to the place where the chosen math spirits hang out in the p2p distributed networking cloud, one more block is added to the time chain. It is called a "chain" because the transaction are also hashed with the block header from the previous block. This verifies that each transaction is valid and easily verifiable with a single calculation which means it can be validated on cheap computers like raspberry pi's, but to be honest, you're better off with a better computer if you don't like pulling your hair out. The problem is money has an infinite demand. This is why the axiom, "you can never be too rich or too skinny" exists so how did Satoshi make sure bitcoin is for everybody and not just the OG Cypherpunk nerds? He discovered the difficulty adjustment.
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Whenever a miner produces a hash with the required amount of zerobits to send the transactions from the mempool purgetory to the place where the chosen math spirits hang out in the p2p distributed networking cloud, one more block is added to the time chain. It is called a "chain" because the transaction are also hashed with the block header from the previous block. This verifies that each transaction is valid and easily verifiable with a single calculation which means it can be validated on cheap computers like raspberry pi's, but to be honest, you're better off with a better computer if you don't like pulling your hair out. The problem is money has an infinite demand. This is why the axiom, "you can never be too rich or too skinny" exists. Everybody loves money and is incintivized to get as much of it as they can as early as they can.This begs the question, how did Satoshi make sure bitcoin is for everybody and not just the OG Cypherpunk nerds? He discovered the difficulty adjustment.
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At this point in history, most people have heard the story about Lazzlo buying two pizzas for 10,000 whole Bitcoin. It is often touted as the worst investment in history by the mainstream media, but journalists focus on the sensational and miss the subtleties of this story since they are experts in journalsism, but not so good at cryptography, a branch of mathematics that no one is taught in high school and only the nerdiest of nerds tend to learn it in college. The lesser known part of the story is Lazzlo was also the first person to mine Bitcoin using ASICS ASICS were used well by IT professionals well before bitcoin was discovered, but Lazzlo learned he could mine bitcoin much faster with these spcialized chips than with a laptop. As the first person to figure this out, he must have had an extremely unfair advantage, so why couldn't he just mine all 21 Bitcoin in a matter of months? He was limited by the Difficulty Adjustment.
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At this point, most people have heard the story about Lazzlo buying two pizzas for 10,000 whole Bitcoin. It is often touted as the worst investment in history by the mainstream media, but journalists focus on the sensational and miss the subtleties of this story since they are experts in journalsism, but not so well-versed at cryptography, a branch of mathematics that no one is taught in high school and only the nerdiest of nerds tend to learn it in college. The lesser known part of the story is Lazzlo was also the first person to mine Bitcoin using ASIC chips. ASICs were used well by IT professionals well before bitcoin was discovered, but Lazzlo learned he could mine bitcoin much faster with these spcialized chips than with a laptop. As the first person to figure this out, he must have had an extremely unfair advantage, so why couldn't he just mine all 21 Bitcoin in a matter of months? He was limited by the Difficulty Adjustment.
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Here is how it works:- Every hour we can expect 6 blocks- Every Day we can expect 24x6 blocks or 144 blocks- Every week, we can expect 1008 blocks- Every two weeks, we can expect 2016 blocks
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At the end of 2016 blocks, if blocks are mined faster than this, the math problem miners try to solves becomes more difficult to slow them back down to ten minutes. When Lazzlo ramped up Bitcoin production, he could only have an unfair advantage for 2016 blocks. Let's say he mined 90% of the blocks within a week. Good for him, but now his ASICS mining slows down because the blocks become much more difficult to mine. His fancy miner essentially must find more zerobits. It's a little more complex than this, but that's the non-boring gist of the story.
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At the end of 2016 blocks, if blocks are mined faster than this, the math problem miners try to solves becomes more difficult to slow them back down to ten minutes. When Lazzlo ramped up his bitcoin production, he could only have an unfair advantage for 2016 blocks. Let's say he mined 90% of the blocks within a week. Good for him, but now his ASICS mining slows down because the blocks become much more difficult to mine. His fancy miner essentially must find more zerobits. It's a little more complex than this, but that's the non-boring gist of the story.
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Without Satoshi's discovery of the difficulty adjustment, the Cypherpunks like Lazzlo would have mined all 21 million bitcoin before the first 210,000 blocks. The difficulty adjustment makes the distribution fair.
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Without Satoshi's discovery of the difficulty adjustment, the Cypherpunks like Lazzlo would have mined all 21 million bitcoin before the first 210,000 blocks. The difficulty adjustment makes the distribution fair because the block subsidy limits how much Bitcoin can be created every ten minutes and that amount is cut in half every 4 years.
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"Total circulation will be 21,000,000 coins. It'll be distributed to network nodes when they make blocks, with the amount cut in half every 4 years. first 4 years: 10,500,000 coins next 4 years: 5,250,000 coins next 4 years: 2,625,000 coins next 4 years: 1,312,500 coins etc... When that runs out, the system can support transaction fees if needed. It's based on open market competition, and there will probably always be nodes willing to process transactions for free."
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-Satoshi Nakamoto
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This is poetic justice.
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