The Year By STEVEN JOHNSON
www.nytimes.com
lockchain
for
JAN. 16, 2018
F
or now, it exists only on my computer as an inert string of nonsense, but the second I try to perform any kind of transaction — say, contributing to a crowdfunding campaign or voting in an online referendum — that address is broadcast out to an improvised worldwide network of computers that tries to verify the transaction. The results of that verification are then broadcast to the wider network again, where more
T
he sequence of words is meaningless: a random array strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps. On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters: 1b0be2162cedb2744d016943bb14e71 de6af95a63af3790d6b41b1e719dc5c66
T
his is what’s called a “private key” in the world of cryptography: a way of proving identity, in the same, limited way that real-world keys attest to your identity when you unlock your front door. My seed phrase will generate that exact sequence of characters every time, but
1
“Bitcoin is now a nine year old multibillion-dollar bug bounty,
and no one’s hacked it. It feels like pretty good proof.”
there’s no known way to reverse-engineer the original phrase from the key, which is why it is so important to keep the seed phrase in a safe location. That private key number is then run through two additional transformations, creating a new string: 0x6c2ecd6388c550e8d99 ada34a1cd55bedd052ad9
That string is my address on the Ethereum blockchain.
E
thereum belongs to the same family as the cryptocurrency Bitcoin, whose value has increased more than 1,000 percent in just the past year. Ethereum has its own currencies, most notably Ether, but the platform has a wider scope than just money. You can think of my Ethereum address as having elements of a bank account, an email address and a Social Security number.
machines enter into a kind of competition to perform complex mathematical calculations, the winner of which gets to record that transaction in the single, canonical record of every transaction ever made in the history of Ethereum. Because those transactions are registered in a sequence of “blocks” of data, that record is called the blockchain. he whole exchange takes no more than a few minutes to complete. From my perspective, the experience barely differs from the usual routines of online life. (continue to page 26)
T
2
The Year for “Bitcoin is now a nine year old multibillion-dollar bug bounty,
Blockchain
and no one’s hacked it. It feels like pretty good proof.”
T By STEVEN JOHNSON JAN. 16, 2018
1
he sequence of words is meaningless: a random array strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an
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incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps. On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters: 1b0be2162cedb2744 d016943bb14e71de6 af95a63af3790d6b4 1b1e719dc5c66
network again, where more machines enter into a kind of competition to perform complex mathematical calculations, the winner of thereum belongs to which gets to record that the same family as transaction in the single, the cryptocurrency canonical record of every Bitcoin, whose value has transaction ever made in increased more than 1,000 the history of Ethereum. percent in just the past Because those transactions his is what’s called year. Ethereum has its own are registered in a sequence a “private key” in the of “blocks” of data, that world of cryptography: currencies, most notably Ether, but the platform has record is called the a way of proving identity, a wider scope than just blockchain. in the same, limited way money. You can think of my he whole exchange that real-world keys attest Ethereum address as having takes no more to your identity when you elements of a bank account, than a few minutes unlock your front door. My an email address and a to complete. From seed phrase will generate Social Security number. my perspective, the that exact sequence of or now, it exists only experience barely differs characters every time, but on my computer from the usual routines there’s no known way to as an inert string of online life. (continue to reverse-engineer the original of nonsense, but the page 26) phrase from the key, which second I try to perform ut on a technical is why it is so important any kind of transaction level, something to keep the seed phrase — say, contributing to a miraculous is in a safe location. That crowdfunding campaign happening — something private key number is then or voting in an online that would have been run through two additional referendum — that address unimaginable just a transformations, creating a is broadcast out to an decade ago. I’ve managed new string: improvised worldwide to complete a secure 0x6c2ecd6388c5 network of computers transaction without any of 50e8d99ada34a1 that tries to verify the the traditional institutions cd55bedd052ad9 transaction. The results of that we rely on to establish That string is my address on that verification are then trust. No intermediary the Ethereum blockchain. broadcast to the wider (continue to page 6)
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F
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2
T
he sequence of words is meaningless: a random array strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps. On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters:
That string is my address on the Ethereum blockchain. Ethereum belongs to the same family as the cryptocurrency Bitcoin, whose value has increased more than 1,000 percent in just the past year. Ethereum has its own currencies, most notably Ether, but the platform has a wider scope than just money. You can think of my Ethereum address as having elements of a bank account, an email address and a Social Security number. For now, it exists only on my computer as an inert string of nonsense, but the second I try to perform any kind of transaction — say, contributing to a crowdfunding campaign or voting in an online referendum — that address is broadcast out to an improvised worldwide network of computers that tries to verify the transaction. The results of that verification are then broadcast to 1b0be2162cedb2744d016943bb14e71 the wider network again, where more de6af95a63af3790d6b41b1e719dc5c66 machines enter into a kind of competition to perform complex mathematical This is what’s called a “private key” calculations, the winner of which gets in the world of cryptography: a way of to record that transaction in the single, proving identity, in the same, limited way canonical record of every transaction ever that real-world keys attest to your identity made in the history of Ethereum. Because when you unlock your front door. My seed those transactions are registered in a phrase will generate that exact sequence sequence of “blocks” of data, that record of characters every time, but there’s is called the blockchain. no known way to reverse-engineer the The whole exchange takes no more original phrase from the key, which is why than a few minutes to complete. From my it is so important to keep the seed phrase perspective, the experience barely differs in a safe location. from the usual routines of online life. But That private key number is then run on a technical level, something miracuthrough two additional transformations, lous is happening — something that would creating a new string: have been unimaginable just a decade ago. 0x6c2ecd6388c550e8d99 (continue to page 26) ada34a1cd55bedd052ad9 3
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Beyond The
Bitcoin
Bubble ‘Bitcoin is now a nine year old multibillion-dollar bug bounty, and no one’s hacked it. It feels like pretty good proof.’ By STEVEN JOHNSON JAN. 16, 2018 4
www.nytimes.com
Beyond
The
Bitcoin
Bubble By STEVEN JOHNSON
JAN. 16, 2018
The sequence of words is meaningless: a random array strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps. On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters: 1b0be2162cedb2744d016943bb14e71 de6af95a63af3790d6b41b1e719dc5c66 5
This is what’s called a “private key” crowdfunding campaign or voting in in the world of cryptography: a way an online referendum — that address of proving identity, in the same, is broadcast out to an improvised limited way that real-world worldwide network of keys attest to your computers that tries to identity when you ‘Bitcoin is verify the transaction. unlock your front The results of that now a nine year door. My seed verification are then phrase will generate old multibillionbroadcast to the that exact sequence wider network again, dollar bug bounty, of characters every where more machines time, but there’s and no one’s hacked enter into a kind of no known way to competition to perform it. It feels like reverse-engineer the complex mathematical original phrase from pretty good calculations, the winner the key, which is why it of which gets to record that is so important to keep the transaction in the single, canonical seed phrase in a safe location. record of every transaction ever made in That private key number is then run through two additional transformations, the history of Ethereum. Because those creating a new string: transactions are registered in a sequence of “blocks” of data, that record is called 0x6c2ecd6388c550e8d99 the blockchain. ada34a1cd55bedd052ad9 The whole exchange takes no more than a few minutes to complete. From my That string is my address on the perspective, the experience barely differs Ethereum blockchain. from the usual routines of online life. But Ethereum belongs to the same family on a technical level, something miraculous as the cryptocurrency Bitcoin, whose is happening — something that would value has increased more than 1,000 have been unimaginable just a decade percent in just the past year. Ethereum ago. has its own currencies, most notably Ether, but the platform has a wider scope (continue to page 26) than just money. You can think of my Ethereum address as having elements of a bank account, an email address and a Social Security number. For now, it exists only on my computer as an inert string of nonsense, but the second I try to perform any kind of transaction — say, contributing to a
6
JAN. 16, 2018 The sequence of words is meaningless: a random array strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps. On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters:
By STEVEN JOHNSON
Blockchain or Blockheads?
8
1b0be2162cedb2744d016943bb14e71de6af95a63af3790d6b41b1e719dc5c66
This is what’s called a “private key” in the world of cryptography: a way of proving identity, in the same, limited way that real-world keys attest to your identity when you unlock your front door. My seed phrase will generate that exact sequence of characters every time, but there’s no known way to reverseengineer the original phrase from the key, which is why it is so important to keep the seed phrase in a safe location. That private key number is then run through two additional transformations, creating a new string: 0x6c2ecd6388c550e8d99ada34a1cd55bedd052ad9
‘Bitcoin is now a nine-year-old multibillion-dollar bug bounty, and no one’s hacked it. It feels like pretty good proof.’ That string is my address on the Ethereum blockchain.Ethereum belongs to the same family as the cryptocurrency Bitcoin, whose value has increased more than 1,000 percent in just the past year. Ethereum has its own currencies, most notably Ether, but the platform has a wider scope than just money. You can think of my Ethereum address as having elements of a bank account, an email address and a Social Security number. For now, it exists only on my computer as an inert string of nonsense, but the second I try to perform any kind of transaction — say, contributing to a crowdfunding campaign or voting in an online referendum — that address is broadcast out to an improvised worldwide network of computers that tries to verify the transaction. The results of that verification are then broadcast
to the wider network again, where more machines enter into a kind of competition to perform complex mathematical calculations, the winner of which gets to record that transaction in the single, canonical record of every transaction ever made in the history of Ethereum. Because those transactions are registered in a sequence of “blocks” of data, that record is called the blockchain. The whole exchange takes no more than a few minutes to complete. From my perspective, the experience barely differs from the usual routines of online life. But on a technical level, something miraculous is happening — something that would have been unimaginable just a decade ago. I’ve managed to complete a secure transaction without any of the traditional institutions that we rely on to establish trust. (continue to page 26) www.nytimes.com
The
10
This is what’s called a “private key” in the world of cryptography: a way of proving identity, in the same, limited way that real-world keys attest to your identity when you unlock your front door. My seed phrase will generate that exact sequence of characters every time, but
‘Bitcoin is now a nine-year-old multibillion-dollar bug bounty, and no one’s hacked it. It feels like pretty good proof.’
there’s no known way to reverse-engineer the original phrase from the key, which is why it is so important to keep the seed phrase in a safe location. That private key number is then run
The sequence of words is meaningless: a random array strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps. On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters:
through two additional transformations, creating a new string: 0x6c2ecd6388c550e8d99a da34a1cd55bedd052ad9 That string is my address on the Ethereum blockchain.Ethereum belongs to the same family as the cryptocurrency Bitcoin, whose value has increased more than 1,000 percent in just the past year. Ethereum has its own currencies, most notably Ether, but the platform has a wider scope than just money. You can think of my Ethereum address as having elements of a bank account, an email address and a Social Security number. For now, it exists only on my computer as an inert string of nonsense, but the second I try to perform any kind of transaction — say, contributing to a crowdfunding campaign or voting in an online referendum — that address is broadcast out to an improvised
1b0be2162cedb2744d0169 43bb14e71de6af95a63af3 790d6b41b1e719dc5c66
By STEVEN JOHNSON
worldwide network of computers that tries to verify the transaction. (continue to page 26)
JAN. 16, 2018
Word
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The sequence of words is meaningless: a random array strung together by an algorithm let loose in an English d i c t i o n a r y. W h a t makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps.
HO DL By STEVEN JOHNSON JAN. 16, 2018
11
‘Bitcoin is now a nine year old multibillion dollar bug bounty, and no one’s hacked it. It feels like pretty good proof.’
On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters:
1b0be2162cedb2744d 016943bb14e71de6af9 5a63af3790d6b41b1e7 19dc5c66
This is what’s called a “private key” in the world of cryptography: a way of proving identity, in the same, limited way that real-world keys attest to your identity when you unlock your front door. My seed phrase will generate that exact sequence of characters every time, but there’s no known way to reverse-engineer the original phrase from the key, which is why it is so important to keep the seed phrase in a safe location.
(continue to page 26)
12
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H O D L
The sequence of words is meaningless: a random array strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps.
‘Bitcoin is now a nine year old multibillion dollar bug bounty, and no one’s hacked it. It feels like pretty good proof.’ 1b0be2162cedb2744d 016943bb14e71de6af9 5a63af3790d6b41b1e7 19dc5c66
>hold on for dear life<
By STEVEN JOHNSON JAN. 16, 2018
13
On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters:
This is what’s called a “private key” in the world of cryptography: a way of proving identity, in the same, limited way that real-world keys attest to your identity when you unlock your front door. My seed phrase will generate that exact sequence of characters every time, but there’s no known way to reverse-engineer the original phrase from the key, which is why it is so important to keep the seed phrase in a safe location.
(continue to page 26)
14
16
1b0be2162cedb2744d016943bb14e71 de6af95a63af3790d6b41b1e719dc5c66 This is what’s called a “private key” in the world of cryptography: a way of proving identity, in the same, limited way that realworld keys attest to your identity when you unlock your front door. My seed phrase will generate that exact sequence of characters every time, but there’s no known way to reverse-engineer the original phrase from the key, which is why it is so
n M ani a coi
strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps. On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters:
important to keep the seed phrase in a safe location. That private key number is then run through two additional transformations, creating a new string: 0x6c2ecd6388c550e8d99 ada34a1cd55bedd052ad9
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he sequence of words is meaningless: a random array
‘Bi a n tcoin ine is mu -ye now a do ltibil r-old bo lla lio un r b n on ty, a ug it. e’s ha nd n It f pre eel cked o tty s lik pro goo e of.’ d
That string is my address on the Ethereum blockchain. Ethereum belongs to the same family as the cryptocurrency Bitcoin, whose value has increased more than 1,000 percent in just the past year. (continue to page 26) www.nytimes.com
JAN. 16, 2018 By STEVEN JOHNSON
Mania Bitcoin
T
he sequence of words is meaningless: a random array strung together by an algorithm let loose in an English dictionary. What makes them valuable is that they’ve been generated exclusively for me, by a software tool called MetaMask. In the lingo of cryptography, they’re known as my seed phrase. They might read like an incoherent stream of consciousness, but these words can be transformed into a key that unlocks a digital bank account, or even an online identity. It just takes a few more steps. On the screen, I’m instructed to keep my seed phrase secure: Write it down, or keep it in a secure place on your computer. I scribble the 12 words onto a notepad, click a button and my seed phrase is transformed into a string of 64 seemingly patternless characters: 1b0be2162cedb2744d016943bb14e71 de6af95a63af3790d6b41b1e719dc5c66 This is what’s called a “private key” in the world of cryptography: a way of proving identity, in the same, limited way that realworld keys attest to your identity when you unlock your front door. My seed phrase will generate that exact sequence of characters every time, but there’s no known way to reverse-engineer the original phrase from the key, which is why it is so important to keep the seed phrase in a safe location. That private key number is then run through two additional transformations, creating a new string: 0x6c2ecd6388c550e8d99 ada34a1cd55bedd052ad9 That string is my address on the Ethereum blockchain.
Ethereum belongs to the same family as the cryptocurrency Bitcoin, whose value has increased more than 1,000 percent in just the past year. (continue to page 26)Ethereum has its own currencies, most notably Ether, but the platform has a wider scope than just money. You can think of my Ethereum address as having elements of a bank account, an email address and a Social Security number. For now, it exists only on my computer as an inert string of nonsense, but the second I try to perform any kind of transaction — say, contributing to a crowdfunding campaign or voting in an online referendum — that address is broadcast out to an improvised worldwide network of computers that tries to verify the transaction. The results of that verification are then broadcast to the wider network again, where more machines enter into a kind of competition to perform complex mathematical calculations, the winner of which gets to record that transaction in the single, canonical record of every transaction ever made in the history of Ethereum. Because those transactions are registered in a sequence of “blocks” of data, that record is called the blockchain. The whole exchange takes no more than a few minutes to complete. (continue to page 26)
18
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