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digital
daily

digital daily: Dynamic Security

Dynamic Security: “What brought mass innovation to a nation was not scientific advances but economic dynamism: the desire and the space to innovate.” Edmund Phelps argued forcefully for individualism and economic freedom as the gateway to growth. Dysfunctional companies that are allowed to survive concentrate wealth and lessen opportunity for coming generations. The great hope for digital assets is the potential to promote dynamism at the expense of corporatism. It is evident in the founding principles of digital – the Bitcoin source code. The protocol was born with less than 10,000 lines of code and has expanded to hundreds of thousands, all without centralized leadership and open for everyone to dissect. The Bitcoin Operations Technology Group – Bitcoin Optech – aims to bridge these open-source technologies to business and customer experiences, captured in a brilliant weekly newsletter to keep abreast of change. The dynamism in the code is not for academic gymnastics – it is with a user purpose in mind. Covenants, familiar to credit investors in traditional markets, are an example of an addition to Bitcoin consensus rules. It is designed to only allow transfers to a whitelisted set of addresses. This is a power security enhancement. And as the value of the protocol rises and its use-cases grow, so too does the demand for security. A “vault transaction” can prevent the spending of stolen coins with a time delay. The completion of the transaction can be locked, and the rightful owner afforded the opportunity to recover funds with a recovery key. Recovery key stolen, too? Keep doing the same thing until the would-be hacker appreciates it is a losing battle. This is all with user experience in mind – guidance is offered on the cheapest way for everyone to utilize the tools, rather than forcing transactions through a more expensive process. An eight page paper will tell you all about it.

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