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Bitcoin->Web3.0 Study
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Background Study Topics

Monetary System - Money Supply and how it integrates Microeconomics and Macroeconomics

Game Theory - How to arrive at a consensus in a Trust-less environment ?

Cryptography - How to maintain Privacy and Security of Communication ?


Monetary System


Bitcoin was also designed with Austrian economic theory in mind. The theory maintains that prices will rise as an economy’s money supply increases, but at different rates. This creates distortions in financial calculations while also inefficiently allocating resources to the first recipients of new money.
The protocol establishes a fixed supply cap of only 21 million Bitcoin that will ever exist. This prevents free market distortions in either deflationary or inflationary environments – particularly with fiat currencies issued by central banks. Bitcoin is often likened to “digital gold” for this reason, a metal famous for possessing the properties of ‘sound money.
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Jeff Booth’s book - “The Price of Tomorrow” is an interesting read to understand the context about our current monetary system’s flaws.


Our financial system is debt-based, needing constant inflation to reduce the "cost" of the debt. Practically all governments are in massive debt (measured in percentages to multiples of GDP) which ties them to the need for constant inflation to survive.
This government stimulus props up assets and keeps the system going, but it is only a temporary fix because inflation will force the Federal Reserve to make adjustments. The author’s argument is that once the insane levels of stimulus and debt in the system normalizes it is only natural for the growth in asset prices to discontinue with the abundance that technology may soon present. The author gives a short explanation in the final chapter as to what he believes the deflationionary system will be built upon: Bitcoin. The author believes that a monetary system, based upon a fixed asset, outside of government intervention, is a solution to take humanity the next step.
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Vijay Boyapati’s Book - “The Bullish Case for Bitcoin” will provide an engrossing read on the how currency has evolved over time.

Game Theory Related


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The Byzantine Generals’ Problem is the analogy most often used to illustrate the requirement for consensus for distributed ledger technology (DLT).
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Cryptography

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cryptography is all about , and all integer numbers (except 0 and 1) are made up of primes, so you deal with primes a lot in number theory.
More specifically, some important cryptographic algorithms such as
critically depend on the fact that of large numbers takes a long time. Basically you have a "public key" consisting of a product of two large primes used to encrypt a message, and a "secret key" consisting of those two primes used to decrypt the message. You can make the public key public, and everyone can use it to encrypt messages to you, but only you know the prime factors and can decrypt the messages. Everyone else would have to factor the number, which takes too long to be practical, given the current state of the art of number theory.

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The original Bitcoin Paper published by Satoshi Nakamoto

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