Coin Sheet - June 15, 2017

◤What people are talking about...

Look at all that red! Cryptocurrency prices have taken a hit across the board. Why? Who knows. It might be because the Fed raised interest rates. It might be because the gov't is trying to regulate crypto (see below). It might be because people are scared of the Bitcoin fork come August. It might be bubble sentiment, so people are selling to realize their gains. It might be all of those things, or it might be none of those things. Prices go up, and prices go down.

Oh Senate, Senate, Senate, why you do dis?

Litecoin stay chillin, no issues since SegWit activation.

Sia vs Dropbox and Amazon.

Morgan Stanley making people lol. "They want regulators involved so the blockchain can be adequately controlled. “Regulators are looking to have a master key so all transactions are visible to them,” the bank noted." Sigh...such donkeys. 

◤THINGS I LIKE

How Cedric Dahl thinks about internet money. Seem's like a cool, informative dude and I've enjoyed his videos.

Goldman Sachs investing in a crypto start-up.

◤FUNDAMENTALS

Today in Fundamentals: Merkle Trees (Pre-requisite: Hash Functions)

Simply put, a Merkle Root is a hash of a hash. Take a look at the diagram I drew up in below.

Above you will see my example of a hash from a previous FUNDEMENTALS, and another random hash of some data I just added. You can see the two hashes being added together into a longer string, and then being hashed again into what's called a Merkle Root.

Being the bright young mind you are you may think to yourself "Hey, can't we do the same process with the Merkle Root since it's just a hash of a hash with a fancy name?" You goddam right we can.

Take a look at this other wonderful work of art below.

Above you can see that we took a two Merkle Roots (remember that a Merkle root is just a hash of a hash),added them together, and got a hash. 

Okay so...why would anyone ever use this?

Three words, efficient data verification. The Merkle tree creates a single value that proves the integrity of all of the transactions under it. 

  • Merkle trees provide a means of proving the validity of your data.
  • Merkle trees require are computationally easy and fast.
  • Merkle trees require little memory (separates the validation of the data from the data itself, think of that Google password example from here).

That was long enough! If you found this interesting you can read more on Merkle Trees here and here.

◤QUOTE OF THE DAY

Vitalik Buterin: "I absolutely do not wish ill on bitcoin, and I hope that it continues to prosper. Satoshi *is* after all the father of cryptoeconomics.."

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I appreciate everyone's support and feedback. Much love.