CEO of Nethemba - Slovak IT security company founded in 2007, primarily focused on web application security and various penetration tests.
Crypto Renaissance: Back To Cryptoanarchist Roots
35c3 Leipzig, December 2018
In 2 weeks (9.1.2019) Bitcoin will have its 10 years anniversairy
What do we achieve after this time:
- We cannot trade Bitcoin freely, draconian KYC /AML bureaucracy is required for almost all transactions (!)
- We call blockchain disruptive subversive technology. At the same time we use it to improve the authoritative state institutions(!)
- All decentralized by-blockchain products (e.g. ICO, securities, funds,.. ) are completely regulated by the governments.
Is this really what Satoshi expected 10 years ago?
Clash of centralized and decentralized paradigm:
We cannot use the rules of centralized paradigm to embrace decentralized paradigm.
It doesn't make sense and it always cripples new technology.
This already happened many taimes: Red flag traffic laws
They want to WARN the public, that cryptocurrency is unsafe. It's used by drug dealers, terrorists and scammers. We need a red flag waving person everywhere it goes.... just like 1865!
Do you consider Red flag traffic laws to be crazy?
If yes, then stop supporting any compliance of decentralized paradigm with the centralized paradigm (the state):
- Stop using centralized crypto exchanges just now!
- Use decentralized ones instead (IDEX, Waves DEX, OpenLedger DEX, Cryptobridge DEX, Oasis DEX, Radar Relay, Barter DEX, Bisq, Stellar DEX, OpenBazaar...)
- Bisq and Waves DEX support even fiat (SEPA transfers/
- Stop helping representatives of the old centralized paradigm (the authoritative government) to embrace the decentralized one. It doesn't make sense (you would never be able to breed and improve horses to be competitive with cars!)
- Embrace state-free solutions
DAI stable coin
- Decentralized & anonymous way to issue the new stable money (DAIs) backed by a specific collateral (ethers)
- You can mint DAIs up to 60% of your collateral with reasonable annual fee
- Great solution if you don't want to sell your crypto (ethers) & you believe it will go up & you need some fiat money :)
- DAI is pegged to USD in a completely decentralized way (unlike Tether)
- In addition to the FED someone else is issuing the new dollars:-)
- It is clear we don't need certain types of government-regulated centralized banks to provide us loans, we can do that in a decentralized way
Introduce crypto to your business
- Start with your friends - pay with crypto only (XMR has now ultra-cheap fees thanks to bulletproofs and it's truly anonymous crypto-currency)
- Explain to your customers the benefits of using crypto (e.g. in order to protect against Czech tax office orders to freeze your company bank account)
- Emphasize the safety of crypto (no 3rd party can steal your crypto including the government)
- If you have any problems with your legislation (and crypto), use offshore/Carribean legal entities
It is not safe to have a permanent residence in the EU
- Permanent residency (unlike your citizenship) in the EU countries binds you with a lot of obligations:
- mandatory military service (e.g. in Slovakia)
- mandatory health care & social insurance (in the most countries)
- tax residency (it should be in the country where you stay more than half year - it is difficult to prove in Shengen area where you are the most of your time)
- taxation of all your income
- including foreign income
- including all your crypto profits!
Is it really so bad to have the residence here?
- Social welfare state is worsening all the time (!)
- Every year you work a bit more for your government
- Unstable legal environment for entrepreneurs (often changing every election)
- A lot of dangerous privacy laws
- Corrupted government institutions & courts
More taxes you pay to your government, more corruption you support!
Change your permanent residence
- Prefer the countries with territorial taxation + the countries with double tax treaty agreements (if you want to make business with your home-country customers in order to avoid withholding tax)
- See the list
- You make it harder for your home-country government to be in touch with you in an effective way
- But if you need anything from your government, it's still easy - just use your two EU passports...
- Changing your permanent residency back to your home EU country is easy and you can do it anytime especially when your family or your company owns a property
Crucial facts to cope with
- Most people do not strive for freedom and never will do
- we, free thinking people, will always be a minority
- democracy does not and will not lead to more freedom
- We should not expect more-free (democracy-based) society in the future (now we can see the opposite)
- We should use crypto technology to:
- Eliminate negative impact of all bad decisions of democratic governments / masses (e.g. taxation, AML/KYC, anti-privacy laws, ..)
- Keep our crypto-anarchist community safe
The near future expectations
- Decentralized version of Uber/Airbnb/... due to drastic Uber/Airbnb regulations in many cities
- Decentralized legal system (Kleros and similar projects)
- Cryptomarkets will go mobile - UX / Usability of cryptomarkets will be significantly improved, most people can afford to visit and use decentralized cryptomarkets without technical knowledge
- Anonymous cash will be prohibited in the most Western countries - the rise of street racketeers offering different cryptocurrencies
- Increased criminalization of cryptomarket's users
- Mass-scale adoption of Bitcoin lightning network (providing a significant relief of bitcoin blockchain with anonymization properties) or the future of Bitcoin Cash? :-)
Anonymous, decentralized crowdfunded whistleblowing
- Imagine that whistle-blowers (like Snowden) can be entirely funded by an anonymous crowd!
- People will bet on the date of the leakage of the specific document (e.g. the time of the leakage of TTIP)
This means a total decomposition of all government secret agencies and government "classified" agencies-> covert agents may be significantly economically motivated to earn anonymous money and anonymously leak sensitive information.
Towards perfect corruption:
The rise of anonymous prediction markets
- Do you want smaller taxes? Bet your cryptocurrency that there will be unchanged or higher taxes in the next two years.
- Do you want to have legalized drugs? Bet your cryptocurrency that there will be a prohibition for next years
- If you are a politician with the real power to change it, you have an economic incentive to make the opposite bet and win a lot of money in cryptocurrency :)
- More at https://steemit.com/prediction/@digital-liberty/the-democratization-of-corporatism-how-to-achieve-the-perfect-corruption-using-anonymous-predictions-markets
- Availability of anti-government insurance (in case of cryptomarket use, drug possession, bypassing surveillance laws, using cash, ..) thanks to decentralized and anonymous insurance companies (see https://steemit.com/anonymous/@digital-liberty/the-rise-of-anonymous-insurance )
- Providers of Tor exit nodes and, IPFS, OpenBazaar, cryptocurrency full nodes may be cruelly criminalized
- Massive increase of decentralized Internet solutions (funk Feuer, Serval Mesh, ..) that will be out of the government control
- The first proved documented assassination of a politician using the concept of anonymous collaborative murder (Jim Bell's 'Assassination Politics') - politicians will start to fear ... being a politician is a more risky job than ever before
Uber for "everything"
- Existence of universal sharing application allowing anyone to offer any services or products to anyone in a trusted way, without 3rd party
- Described as "Gamma system" by Paul Rosenberg
- Fully decentralized application allowing anyone to offer anything to anyone using anonymous cryptocurrencies, reputation systems, escrow services, based on DAO is technically feasible
- We don't need the governments (especially for making trusted voluntary business) anymore
The future is a decentralized peer-to-peer society
The government will start to have really difficult times
Rise of DAOs...
- The states will lose their business license monopoly - people start to prefer a decentralized DAOs instead of the traditional government-licensed companies (see Aragon DAO)
- The governments will radically change the taxation model - no tax for virtual/Internet services, high taxation for real-world properties and real-world businesses, some countries will switch to head-tax
- Massive people immigration to seasteading islands / free ancap-based countries
- Many Tor/OpenBazaar nodes will be placed in the air (anonymous still-flying drones) or in still developing countries with old-school legislation
Fundamental events in our future
- For the governments, it will be impossible to shut down decentralized cryptomarkets (Openbazaar, Particl.io project)
- New kind of financial freedom thanks to truly anonymous cryptocurrencies
- Decentralized Anonymous insurance against the government
- Anonymous prediction markets that make corruption perfect
- Crypto-markets (and DAOs with the anti-government insurance) become much more competitive compared to the government's regulated e-shops even for the non-illegal products and services thanks to this insurance
Prepare for the worst
- The authoritative government will survive in the following 20 years and will be even more authoritative
- The people using crypto technologies and crypto markets (trying to avoid the state rules) will be criminalized
- there will be many exemplary lawsuits against many innocent people (Ross Ulbricht, ..)
- Despite the precedents like Ross Ulbricht's case,
politicians cannot win their fight; they HAVE TO ADAPT to the crypto-anarchy / free-market rules
- but this may be very painful - a lot of innocent people will be sacrificed during this battle.
Be strong, protect yourself
- Be aware of massive asymmetry between the government and individual
- It is hard to protect your privacy in the real world (physical security is the weakest point of most digital privacy people!)
- Most government attacks against crypto anarchy will use social engineering, few of them using 0-day exploits, the least will be against crypto
- They can always destroy you / compromise you if they want and have a budget
- Avoid the system, be agorist
- Do not be personal, do not create enemies
Thanks for being part of Parallel Polis!
Enjoy your new life!
(hopefully striving for freedom)
Crypto Renaissance: Back to Cryptoanarchist Roots
By Pavol Luptak