Thursday, 17 May 2018

NSA SHA-256 SHA-2 Mrkel Trees and Magic Money Trees Bitcoin and the CIA

I received a link to this article  , It's interesting but not at all a great revelation in respect of the basis of what is provably true about it. The real fun starts though when one puts the provable Facts into their real world context.
In Short look deeper there is something to see here but why would it surprise anyone who knows anything about this stuff?

Bitcoin is US Dollar 2.0 Created by CIA | Kaspersky Co-founder

There’s a reason why China, Russia and South Korea are about to shut down Bitcoin operations in their turf. It has been a CIA project from the very beginning. That explains why there’s no transparency as to who actually created it, and the impending shutdown is bringing bitcoin’s market value down to at least 40%, for now.


SHA-256 is a member of the SHA-2 cryptographic hash functions designed by the NSA. SHA stands for Secure Hash Algorithm. Cryptographic hash functions are mathematical operations run on digital data; by comparing the computed "hash" (the output from execution of the algorithm) to a known and expected hash value, a person can determine the data's integrity. A one-way hash can be generated from any piece of data, but the data cannot be generated from the hash.
SHA-256 is used in several different parts of the Bitcoin network:
  1. Mining uses SHA-256 as the Proof of work algorithm.
  2. SHA-256 is used in the creation of bitcoin addresses to improve security and privacy.


  • From Wikipedia, the free encyclopedia
    Secure Hash Algorithms
    hash functions · SHA · DSA
    Main standards
    SHA-0 · SHA-1 · SHA-2 · SHA-3

    DesignersNational Security Agency
    First published2001
    Series(SHA-0), SHA-1, SHA-2, SHA-3
    CertificationFIPS PUB 180-4, CRYPTRECNESSIE
    Digest sizes224, 256, 384, or 512 bits
    StructureMerkle–Damgård constructionwith Davies–Meyer compression function
    Rounds64 or 80
    Best public cryptanalysis
    A 2011 attack breaks preimage resistance for 57 out of 80 rounds of SHA-512, and 52 out of 64 rounds for SHA-256.[1] Pseudo-collision attack against up to 46 rounds of SHA-256.[2]
    SHA-256 and SHA-512 are prone to length extension attacks. By guessing the hidden part of the state, length extension attacks on SHA-224 and SHA-384 succeed with probability 2−(256−224) = 2−32 > 2−224 and 2−(512−384) = 2−128 > 2−384 respectively.
    SHA-2 (Secure Hash Algorithm 2) is a set of cryptographic hash functions designed by the United States National Security Agency (NSA).[3] They are built using the Merkle–Damgård structure, from a One-way compression function itself built using the Davies-Meyer structure from a (classified) specialized block cipher.
    Cryptographic hash functions are mathematical operations run on digital data; by comparing the computed "hash" (the output from execution of the algorithm) to a known and expected hash value, a person can determine the data's integrity. For example, computing the hash of a downloaded file and comparing the result to a previously published hash result can show whether the download has been modified or tampered with.[4] A key aspect of cryptographic hash functions is their collision resistance: nobody should be able to find two different input values that result in the same hash output.
    SHA-2 includes significant changes from its predecessor, SHA-1. The SHA-2 family consists of six hash functions with digests (hash values) that are 224, 256, 384 or 512 bits: SHA-224, SHA-256, SHA-384, SHA-512, SHA-512/224, SHA-512/256.
    SHA-256 and SHA-512 are novel hash functions computed with 32-bit and 64-bit words, respectively.

Bit-coin is a part of the functionality of Ether the Ethereum exchange medium.In a way Bitcoin provides both liquidity and stability to Ether in much the same way envisaged by Nu Bits and Peer Coin.
 Ethereum is more democratic and decentralised though than its (for the moment), larger brethren. It has been designed with the benefit of seeing how Bitcoin developed and with Bitcoin investment. In a sense the two are competitive in one space and complimentary in and to all the other Blockchain Spaces. The benefit of hindsight leads to a greater potential of prescient features to avoid the faults in Bit Coin that some people , including me , find disagreeable. Peer Coin, ( ) and its  associated brethren, Nu Bits,( there is a common developer and advocate behind both ) ( ), both set out many of the potentials not exploited by Bit Coin and resolves some of the problems real and potential in Bitcoin. With its proof of stake as well as proof of work hybrid.Peer Coin also offers  Minting as well as mining, yet uses the same encryption Algorithm, SHA 256, as Bitcoin. Bizarrely SHA 256 is patented by the NSA ( Go Figure), There is something fundamentally UN-libertarian about the NSA, can we all put our finger on that and catch a distinct whiff of Irony, I always do.

I decided I would not Invest in Bitcoin, I had been studying it very closely for about a year but ultimately felt it was not what I was looking for in line with my own political stance with respect to Monetary reform and provision of Credit and liquidity into democratic debt free community economies.

You heard about Crypto Currencies,

Bitcoin infographic

See Large bitcoin-infographic

Thats really cool, can they do anything else?

 Dr Craig Smith Says in the infamous video here, That Fourth and fourth like languages actually do loop and have dual stack architecture. ''Everything we are talking about in derived form contracts can actually be done in the Bitcoin protocol´´. @5'24 ´´

Update Dr Craig Wirght confirms his pseudonym

Dr Craig Smith refers to Ethereum in passing whilst making the point that thinking of Bitcoin as a mere currency is thinking to small. Seperating Bitcoin from Bitcoin Protocol is a leap in imagination similar to abstarcting the conflicting roles of Money as Store of Value or Means of Exchange from its index function as Unit of account. Peer Coin and Nu Bits provide resolution of these conflicts of roles for money as it is used for different functions.

Extraordinary Claims Require Extraordinary Proof - Dr. Craig Wright Blog: Yesterday, Andreas Antonopoulos posted a fantastic piece on Reddit. Andreas said something critically important and it bears repeating: “I think the identity of Satoshi Nakamoto does not matter”. He’s absolutely right. It doesn’t – and shouldn’t ­– matter to the Bitcoin community. I cannot deny that my interest in bringing the origins of Bitcoin into the light is ultimately and undeniably a selfish one – the only person to whom this should matter is me.…

Thats Nick Szabo in the stripped shirt. Take a look at this piece which states that Szabo is Satoshi.

Jon Matonis is widely recognised as a leading Bitcoin researcher and is a non-executive board director for several notable companies in the space. Since 2012, his technology and security writings have appeared in publications such as ForbesCoinDeskBitcoin MagazineAmerican Banker, and PaymentsSource.
Jon is also a founding director for the Bitcoin Foundation which served as the industry’s first nonprofit trade association originally chartered to provide financial compensation for voluntary protocol code developers and to promote the vision of Bitcoin worldwide. His career has also included senior roles with Sumitomo Bank, VISA International, VeriSign, and Hushmail.

The distributed web is above all about Democracy. There are many watered down versions of democracy and also models of governance calling themselves democratic which are nothing of the sort. Your Platform, IPFS and Swarm and others I have not heard of, I am sure.,are at the Elite end of Computing. Within the proprietary software model even distributed systems would leave existing Elite hierarchies in control manipulating and rationing information and access to the fruits of what we call Society or civilisation.
Richard Stallman the founder of GNU describes what free software is.
´´Free software means the users have the freedom to run, copy, distribute, study, change and improve the software.Free software is a matter of liberty, not price. To understand the concept, you should think of “free” as in “free speech”, not as in “free beer”.
More precisely, free software means users of a program have the four essential freedoms:
  • The freedom to run the program as you wish, for any purpose (freedom 0).
  • The freedom to study how the program works, and adapt it to your needs (freedom 1). Access to the source code is a precondition for this.
  • The freedom to redistribute copies so you can help your neighbor (freedom 2).
  • The freedom to improve the program, and release your improvements to the public, so that the whole community benefits (freedom 3). Access to the source code is a precondition for this.
Developments in technology and network use have made these freedoms even more important now than they were in 1983.

Money is not valuable in and of itself, Money is a ticket or coupon for exchange / deferred consumption and the value and wealth lie in the economy within which a token/Coupon Unit of account is valid for trade within.
Aristotle said money is created by Law not nature, this is true of FIAT money. Bitcoin and cryptocurrencies are presently created by convention or custom within a defined network lets call it the Blockchain space. Crypto is voluntary and very powerful but a very small fish in an ocean of FIAT money.
When Bitcoin or ETHER or Dash or any of the hundreds of COins are generally accepted and held in preference to other Money´s with STate/central bank sanction then the Bankers will have lost. Things are a far way from that point as most of the Greater Fool investment in the present bubble is not an investment but speculation where The speculator takes profits in FIAT currency, ultimately this ties Bitcoin to FIAT value which in itself is also illusory.
Carol Quiggley sums up the idea of Moey and wealth in Tragedy and Hope thus,

Money and Goods Are Different
”Thus, clearly, money and goods are not the same thing but are, on the contrary,
exactly opposite things. Most confusion in economic thinking arises from a failure to
recognise this fact. Goods are wealth which you have, while money is a claim on wealth which you do not have. Thus goods are an asset; money is a debt. If goods are wealth; money is not wealth, or negative wealth, or even anti-wealth. They always behave in opposite ways, just as they usually move in opposite directions. If the value of one goes up, the value of the other goes down, and in the same proportion.”
The Relationship Between Goods and Money Is Clear to Bankers
In the course of time the central fact of the developing economic system, the
relationship between goods and money, became clear, at least to bankers. This relationship, the price system, depended upon five things: the supply and the demand for goods, the supply and the demand for money, and the speed of exchange between money and goods. An increase in three of these (demand for goods, supply of money, speed of circulation) would move the prices of goods up and the value of
money down. This inflation was objectionable to bankers, although desirable to producers and merchants.On the other hand, a decrease in the same three items would be deflationary and would please bankers, worry producers and merchants, and delight consumers (who obtained more goods for less money). The other factors worked in the opposite direction so that an increase in them (supply of goods, demand for money, and slowness of circulation or exchange) would be deflationary.”

As Usual Mike, these things are layered  and a simple truth can be made to sound awfully damning.

The Exchanges are controlled by Whales and Tethers' of course are the single biggest problem in Crypto Land, along with the Wash Trading and other nefarious practices,
which are Illegal in Suit World on the Bourses.
There are several Thousand Cryptos, The Johnny come latelies are the centralised ones, Ripple Cardano etc and Tether and the Bitcoin Derivatives ( Forks) Bitcoin Cash and Bitcoin Gold
The Fact that Forks exist show how hard it is for the space to be controlled once in the wild The Security services are more likely to be behind Exchanges ( Centralised points of Attack) and also the Centralised Currencies ) Centralised distribution no mining.

That The NSA have paents on the SHA - 256 Algo does speak to an inviolvement of the NSA.

One of my Favourite Clips from my Favourite Film, Goodwill Hunting.