Get ready...its a long one!
The plan was openly discussed. And then linked in the OP.
Having thought about this for longer now I'd say my main fear with this foundation is
how they're going to credibly explain to the US govt that they cannot build AML and KYC rules into the code when they are actually paying the devs salaries?
This was on the tip of my tongue! Thank you so much!
This is no problem at all.
Bitcoin does not need AML/KYC policies, however the companies that operate within moving fiat to Bitcoin and back do.
It's a very simple concept of closed loop and open loop. One which I've explained to regulators many times
-Charlie
Interesting answer. Let me put it another way.
What is the representative foundation going to do when the U.S. Department of Justice or similar authority targets it to help crack down on users suspected of illegal behavior, like openly buying drugs on Silk Road. Please keep in mind that hushmail.com, which is based in
Canada, was pressured into helping authorities install Java code that aided them in busting mail account holders of an amateurish Silk Road like online drug ring.
That’s an interesting idea considering Gavin has already met with the CIA.
Why would a “Foundation” or any corporate style entity facilitate pressuring a software developer? Couldn’t Gavin already be working for the CIA?
See my response above.
Also,
Everyone has to get over the fact he met with the CIA, its not a big deal.
A bunch of analysts in the room who just wanted to ask some questions, stop being so paranoid
Mr. Shrem,
Thank you for being civil and doing your best to answer questions here about your foundation. I understand your points and do accept that the foundation principals believe they are performing a great service for Bitcoin. My only concern is that many foundations are set up to be money making organizations even if they are for charitable causes and can be easily corrupted. Bitcoin clearly isn’t a charitable organization.
Why not have a single reasonably priced membership fee for all and choose principals based on ability and chosen by a popular vote instead of an elitist buy-in? Please don’t take offense to this question. I’m not attacking what you have accomplished or attempting to devalue the worth of a “Bitcoin Foundation.” I just don’t understand why the wealthiest users need control of the foundation. I believed Bitcoin was supposed to be something different than what we have now with fiat?
Hey dude,
Have I every taken offense to a question, moreover a question from you? You and I go back a while now, I would never think you had ill intentions.
Your question is a good one, and it comes down to representation..the same reason the US has a Senate where each state is represented equally.
Allow me to answer your question with a parable.
In a situation with 1 membership fee with 1 vote per member, we were afraid what could happen is that different sectors and industries within Bitcoin (now and in the future) would not be properly represented. As a group, we felt sure that we wanted to represent both commercial and individual interests in the community. We also wanted a structure flexible enough to adjust to the community's input.
If all miners decided to team up and take all 5 board seats and change the rules, that would be a terrible thing.
However, in the current structure, miners get 2 seats only, therefore they cannot assert control.
Same thing with corporate members not being able to asserts control over individual members.
I'm sure this may not be the -best- way in your opinion, but thats totally cool!
If you think it needs changing, get in touch! Even better, run for a board seat and change the rules yourself!
-Charlie
Ah, first, THANK YOU for actually asking a good question!
Few facts:
Hushmail = centralized company - has user data
Bitcoin = Decentralized that no one owns/runs/controls.
How can the foundation help crack down on Bitcoin holders not users (thats a bad word to use) when the foundation does not own these users nor regulates them nor owns Bitcoin nor has any information on them?
Would the government go to the Linux Foundation and say "Hey, this hacker was using linux, help us find him"
Would the government go to the Tor Foundation and say "Hey, this hacker was using Tor, help us find him"
In both cases, they cannot!
Answer your question?
-Charlie
Let me phrase it this way...
Few facts:
Hushmail = centralized company - has user data
Bitcoin = Decentralized that no one owns/runs/controls.
Foundation = centralized U.S. company - develops software that handles user data
Are you familiar with what happened at 611 Folsom Street in San Francisco? Let me give a brief overview. President Bush instructed phone companies to allow an illegal warrant-less wiretap be installed as a splitter at this location recording ALL Internet traffic unfiltered, which a whistle blower found out about. The administration then had Congress retroactively grant the phone companies immunity from prosecution for siding with them in breaking the law.
https://www.eff.org/issues/nsa-spyingAs a U.S. corporation that openly develops the software to conduct bitcoin transactions, how would the foundation deal with similar government pressure to "save us from the terrorists, pornographers, government anarchists, etc"?
The Foundation and the core dev team are 2 separate things. The Foundation will not be able to control the code or dev team.
The Foundation is merely an entity to protects and promote Bitcoin. We will not attempt to control it, as long as I am on the board.
Matt,
Yes you do, and I will show you why.
As you so helpfully pointed out, twice I asked you the same question, but no response from you!
I asked you:
You tell me, what can the foundation do thats not already obvious? We have no control over Bitcoin, Bitcoin runs itself.
To which you responded:
So what you are telling me now is that you lied in your post and that in fact you can gain power and are not limited by your bylaws except you can't control how Bitcoin is being run?
Which did not answer my question, so Ill rephrase and hope to get an answer.
Tell me, what specific power or control are you worried about that the foundation will try to do over Bitcoin? Answer that, and I will tell you how the foundation will prevent that, and if we have nothing to do it, I promise to make sure those protections go into the bylaws.
Thanks
So you aren't going to point to the section of the bylaws the supposedly highly limits the Bitcoin Foundation as was implied with "We cant gain power, in fact we cannot do anything outside the bylaws." ?
I'm worried the foundation will grab the power to:
- claim to speak in the name of all users of the Bitcoin software
- claim to speak as the authority on Bitcoin software
- claim to be a watchdog over the code so individual members needn't worry
- claim to be the authority deciding which Bitcoin businesses are legitimate
- claim to be the authority that decides which Bitcoin projects are worthy of founding
- claim to be the authority that decides which developer's improvements should/shouldn't be added to the core Bitcoin code
- sell a change of Bitcoin or any "approved" layers on top, or just simply a policy or a mission statement to the corporate membership, shoved down the throats of all of the users through a founders 1 + corporate 2 vote giving them the majority
and I could think of more.. So please how are you going to prevent this from happening some day. I realize you probably aren't doing this today, but what about in a year, or 2 or 3 or 5?
After you are done addressing these, don't forget to explain what you meant by "We cant gain power, in fact we cannot do anything outside the bylaws.". It's extremely important that we understand how did you limit yourself through the bylaws as implied by your post. Preferably quote the bylaws. And if you didn't limit yourself, please explain why you worded your post in a manner leaving an impression you did.
Also, who the hell is Matt?
Matt,
Again, I clearly said the bylaws limit our corporate power which you already quoted. I did not say the bylaws limit the power over its control of Bitcoin.
Please stop trying to twist my words. I wrote "Your bylaws reference is speaking of something totally different, corporate law, that states that the foundation can sell t-shirts but not illegal firearms..nothing to do with promoting Bitcoin"
Now, onto the real issue...
I'm worried the foundation will grab the power to:
- claim to speak in the name of all users of the Bitcoin software
>> We claim to speak in the name of all members of the foundation. Bitcoin is open source, no one owns it.
- claim to speak as the authority on Bitcoin software
>> Bitcoin is open source, no one owns it. Anyone can write their own Bitcoin software. The foundation does not control any of the software.
- claim to be a watchdog over the code so individual members needn't worry
>> The foundation will pay for Quality Control and Assurance of the Bitcoin code from member dues. The InfoSec type companies will be hired to test the quality of the code and look for bugs/holes (Something which the dev teams badly needs and has requested many times) Any findings will be published the an update released. Any of the individual software writers or users are free to not update their clients or software.
- claim to be the authority deciding which Bitcoin businesses are legitimate
>> The foundation will attempt to build a vetting process to prevent scammer companies from exploiting Bitcoin users. It wil not just point a finger at a company and say "This is illegitimate". The foundation will release evidence acquired and present it to its members.
- claim to be the authority that decides which Bitcoin projects are worthy of founding
>> The foundation will fund projects that request to be funded. It is legally allowed to deny/approve anyone as its a member driven organization.
- claim to be the authority that decides which developer's improvements should/shouldn't be added to the core Bitcoin code
>> The foundation has no say in what goes in the code. Recommendations could be presented to the core dev team, and they can do as they see fit.
- sell a change of Bitcoin or any "approved" layers on top, or just simply a policy or a mission statement to the corporate membership, shoved down the throats of all of the users through a founders 1 + corporate 2 vote giving them the majority
>> Most policys and major changes would require a unanimous vote, not a majority.
Let me know if you have other concerns, I'll gladly respond to them.
Some of these concerns are real, and I think need to go intro the bylaws, so thank you for pointing them out....just wish you were a little nicer about it considering you asked to be treated like an adult
-Charlie
But no, you are blinded with ego and can't see three feet in front of you all the dangers that are possible even in this highly restrictive system.
Dude, you gotta stop with the personal insults at people. Have I insulted you? Why cant you have a normal and civilized conversion.
You asked to be treated like an adult, act like one!