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Researchers Locate Flaw In Bitcoin Protocol

An anonymous reader writes "Researchers at Microsoft Research and Cornell identified a potential flaw in Bitcoin's transaction propagation. In a recent paper they show how miner nodes in the Bitcoin network have an incentive not to relay transactions to the rest of the network, and propose to implement a scheme that rewards nodes [PDF] for relaying messages."

191 comments

  1. I'm starting to want to work at Microsoft Research by CmdrPony · · Score: 3, Insightful

    They seem to do lot of cool stuff. From that Courier tablet to studying Bitcoin. Even while Microsoft doesn't realize their R&D section has a great amount of potential, it's actually the only major company in the industry that does have such research center. I wish I worked there :-P

  2. Yes but by koan · · Score: 4, Funny

    It still sounds like a better system than our current financial institutions.

    --
    "If any question why we died, Tell them because our fathers lied."
    1. Re:Yes but by CmdrPony · · Score: 0

      At least with current banking systems you get some stability. With Bitcoin you can lose 30% of your money overnight. What Bitcoin desperately needs is to stabilize its value.

    2. Re:Yes but by somersault · · Score: 4, Insightful

      As someone said before, Bitcoin would be a lot more valuable if your currency held the promise of something. For example selling your computer time makes much more sense than doing calculations designed to waste computing power. I've wondered before if there was anything to Bitcoin, but I really can't think of it as a currency. I think of it more like the stock market, and how I can abuse it to make a profit. In the end I'm better off just making money doing real work.

      --
      which is totally what she said
    3. Re:Yes but by Vaphell · · Score: 3, Informative

      stability comes from the size of userbase. More users = greater inertia.
      Either way central banks have no problem with playing dirty. Imagine having tons of swiss francs and losing 8% in a matter of seconds as it happened early September when they announced pegging to euro.

    4. Re:Yes but by Anonymous Coward · · Score: 2, Informative

      BitCoin is a proof of concept, not a currency.

    5. Re:Yes but by benjamindees · · Score: 1

      It has current value and can be easily used as a medium of exchange. It is a currency by definition.

      --
      "I assumed blithely that there were no elves out there in the darkness"
    6. Re:Yes but by shentino · · Score: 1

      The problem with bitcoin from my point of view is that it's too damn easy to steal.

      At least with cold hard cash you have to be pickpocketed or burglarized before you lose it. With bitcoin all you need is some two bit hacker taking advantage of a technophobe running a jacked computer and bam, all his bitcoins are belong to the haxxors.

      All it takes is one rogue hacker to misdirect bitcoin payments and you have instant skimming.

      And since it competes with government control, civil authorities won't investigate bitcoin fraud like they will fraud involving real money.

    7. Re:Yes but by Bert64 · · Score: 1

      You also get instability with fiat currencies, just look at the Zimbabwe Dollar...
      Currencies which are centrally controlled can trivially be devalued simply by the controller of that currency printing more money... The more they print, the lower value the remaining currency has.

      The only disadvantage bitcoin currently has, is being relatively small so it requires considerably less resources to influence the market as a whole.

      --
      http://spamdecoy.net - free throwaway anonymous email - avoid spam!
    8. Re:Yes but by Chrisq · · Score: 2

      With Bitcoin you can lose 30% of your money overnight.

      Think of the Greeks you insensitive clod

    9. Re:Yes but by Chrisq · · Score: 2

      As someone said before, Bitcoin would be a lot more valuable if your currency held the promise of something. For example selling your computer time makes much more sense than doing calculations designed to waste computing power. I've wondered before if there was anything to Bitcoin, but I really can't think of it as a currency. I think of it more like the stock market, and how I can abuse it to make a profit. In the end I'm better off just making money doing real work.

      Unfortunately in this world doing real work is the one thing that will guarantee that you only get a commodity level of pay. That's why stockbrokers and lawyers make more than programmers or mechanics

    10. Re:Yes but by Issarlk · · Score: 1

      if you leave your life savings in cold hard cash on the living room table you are effectively one burglary away from losing everything.
      But just as you put your savings in a bank, you can put your bitcoins in another account. Extract from https://en.bitcoin.it/wiki/Securing_your_wallet :
      "A good practice is to keep at least two wallets, one as a "current account" for everyday transactions and one as a "savings account" where you store the majority of your Bitcoins.
      The "savings account" wallet should be backed up in encrypted form only and all plaintext copies of this wallet should be erased. In case someone gains unauthorised access to your computer (either by physically stealing it or by exploiting a system vulnerability via the internet), they will only be able to spend the coins in your "current account" wallet."

    11. Re:Yes but by Anonymous Coward · · Score: 0

      No, I can't go to my exchange bureau and get money for my bitcoin.

      It's just like some goofy "point" you can get in some place, usable only in certain shop and restaurant.

    12. Re:Yes but by tqft · · Score: 1

      "just look at the Zimbabwe Dollar..."
      or the US dollar vs gold.

      Question for those playing at home: at gold price in US dollars does the USA have assets greater than it's liabilities?

      --
      The Singularity is closer than you think
      Quant
    13. Re:Yes but by bmo · · Score: 1

      With Bitcoin you can lose all of your money overnight

      Fixed.

      --
      BMO

    14. Re:Yes but by CmdrPony · · Score: 1, Insightful

      Unfortunately in this world doing real work is the one thing that will guarantee that you only get a commodity level of pay. That's why stockbrokers and lawyers make more than programmers or mechanics

      It's all based on supply and demand. Frankly, mechanics and programmers are quite common place jobs. Good stockbrokers and lawyers, not so much. And I'm a programmer myself, but I understand the position rather than just going "lalala".

    15. Re:Yes but by EdZ · · Score: 1

      Stability comes from distribution of currency. Concentrate it too much, and the whole thing becomes unstable. Bitcoin suffers from this, with a few hoarders buying and dumping causing the value to fluctuate wildly. Unfortunately, 'proper' currency is also subject to this concentration of wealth, as is currently becoming very clear.

    16. Re:Yes but by killkillkill · · Score: 1

      All it takes is one rogue hacker to misdirect bitcoin payments and you have instant skimming

      I don't think you know how bitcoin transaction work. On a compromised computer, sure, a hacker can steal your wallet an your bitcoins are gone. I don't believe there are any (known or theoretical) realistic ways to screw with transaction in the network, though. Theft has been a big deal, clearly.Mostly it's been by or because of service operators that users shouldn't have trusted to begin with. The biggest theft involved online wallets. A service operated by an anonymous person who... surprise!... disappeared. The biggest problem with bitcoin is people dumping their money into something they had yet to have an understanding of.

    17. Re:Yes but by Anonymous Coward · · Score: 1

      There are over 30 currency exchanges that trade in Bitcoins. So that's simply false.

    18. Re:Yes but by Talderas · · Score: 4, Insightful

      It's currency in the sense that pinto beans are a currency.

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
    19. Re:Yes but by RoFLKOPTr · · Score: 2, Insightful

      There are over 30 currency exchanges that trade in Bitcoins. So that's simply false.

      Wow there's more currency exchanges for Bitcoins than merchants that accept them!

    20. Re:Yes but by DarkOx · · Score: 1

      Not to defend BT, but just because it does not represent something specific does not make it so different form other currencies.

      You might just as well say

      Dollars would be a lot more valuable if your currency held the promise of something. For example selling shares in the nations store of gold makes much more sense than doing massive printing for the sake of wasting cotton, wood fiber and ink. I've wondered before if there was anything to Dollars, but I really can't think of them as a currency.

      Yes I realize that one *value* aspect of the dollar is it can satisfy tax obligations but even that is pretty artificial construct.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    21. Re:Yes but by Anonymous Coward · · Score: 0

      For the moment I only see Bitcoin as liquid gold. If I have gold and silver somewhere and would like to move it then I can sell it locally and buy Bitcoins with it. Then I transmit the Bitcoins and buy more gold and silver on the other side.

    22. Re:Yes but by somersault · · Score: 1

      I'm aware of that, but the dollar has evolved such that it does hold the promise of value, because it's already accepted all over. You can't just get BitCoin accepted by saying it "should" be accepted. I'd rather have something like Zynga credits or WoW than a bitcoin, despite not wanting to play WoW or any Zynga games. At least those currencies have some kind of possible use for millions of people.

      --
      which is totally what she said
    23. Re:Yes but by benjamindees · · Score: 2

      It's all based on supply and demand.

      Bullshit. Stockbrokers and lawyers are licensed and subsidized. The supply is artificially limited by government fiat, and demand is artificially increased. Not so for mechanics and programmers. And that's the reason for the difference. It has nothing to do with natural supply and demand.

      --
      "I assumed blithely that there were no elves out there in the darkness"
    24. Re:Yes but by FireFury03 · · Score: 1

      The "savings account" wallet should be backed up in encrypted form only and all plaintext copies of this wallet should be erased. In case someone gains unauthorised access to your computer (either by physically stealing it or by exploiting a system vulnerability via the internet), they will only be able to spend the coins in your "current account" wallet."

      I can't think of any other currency where forgetting the password to your bank account actually causes you to irreversibly lose the money contained therein...

    25. Re:Yes but by J'raxis · · Score: 1

      And your point is? Every kind of wealth storage has its flaws, some of them just as fatal, e.g., storing your wealth as cash and having it stolen.

    26. Re:Yes but by CmdrPony · · Score: 1

      The requirements for the job are also based on how important is is (and how much damage one with no license could do). Would you also say that having some basic requirements for doctors is a bad thing to do? Sorry to burst your bubble, but engineers or coders really aren't in such high demand. We make things work, but other people make them prosper. Lot's of people tend to overestimate their importance - don't be stupid like that.

    27. Re:Yes but by seanadams.com · · Score: 4, Insightful

      Bitcoin would be a lot more valuable if your currency held the promise of something. NO, this is exactly why government money fails. Whichever authority is responsible for that "promise" will simple renege after the currency has gained acceptance. They debase the money, becoming extremely powerful in the process, until eventually it becomes worthless. Then after everyone else is broke and they have all the real money, they do it again. When you mine bitcoins you aren't exactly "selling computer time", you are using your computer to produce a product. The person who buys your coins wants the coin as proof of work, not the cpu time itself. This is exactly the same model as gold mining, the point is that nobody can get more gold without incurring the cost to mine it. Gold doesn't have to "promise" anything except its inherent promise of being scarce (and its other monetary properties such as durability, divisibility, etc). Yes bitcoin is volatile but only because it is new. As it gains acceptable, the real promise that you will care about is the market in which people will let you trade it for stuff (even just forex is a great start). That does NOT require any authority to back the money. The whole point of bitcoin is that it is a scarce commodity, as opposed to a token or note.

    28. Re:Yes but by royallthefourth · · Score: 1

      Prosperity: the gift of stockbrokers and lawyers to the rest of us.

    29. Re:Yes but by somersault · · Score: 1

      The value of things like gold, silver, gems etc don't come around purely from their scarcity though. They're just beautiful in their own right, which combined with being scarce, makes them valuable in our psyche.

      I guess the point I'm trying to rationalise is that the currency needs to be desirable (which isn't a particularly rational quality). BitCoin is not desirable. The desirability can also come from rational factors like being able to use the currency, but it's a chicken and egg situation. BitCoin would need some kind of foothold to gain traction as a desirable currency among anyone but jobless geeks who want to get rich quick, and it's just never had that.

      --
      which is totally what she said
    30. Re:Yes but by Anonymous Coward · · Score: 0

      I can't think of any other currency where forgetting the password to your bank account actually causes you to irreversibly lose the money contained therein

      So you've never had enough cash to open a numbered offshore account, then?

    31. Re:Yes but by CastrTroy · · Score: 1

      Or even worse, a corrupted disk. A change of a single bit could wipe out whatever savings you may have. So now you have to back it up, to multiple places, preferrably one offsite, in case your house burns down. And you have to be able to do this on a daily basis. Whenever you have too much cash in your wallet, or when you need more cash in your wallet. Sorry, but nobody, apart from researchers, and those who want to check it out just for the novelty are going to use bitcoin as a currency.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    32. Re:Yes but by Anonymous Coward · · Score: 0

      It depends on the level of government, and one of two modes of that nation:

      Mode 1 is when the nation is "expanding the pie", where people are more interested in R&D, making new stuff, innovating, and bringing new things to market.

      Mode 2 is "grabbing someone else's slice", where R&D is stagnant, so one uses lawyers, lobbyists, and other means to keep the books balanced by going after other people.

      The problem with stockbrokers is that stocks are a zero sum game. What goes up must come down eventually, and gains in portfolios will eventually result in someone, somewhere losing their shirt later on.

    33. Re:Yes but by vlm · · Score: 1

      ...I really can't think of it as a currency. I think of it more like the stock market...

      What it actually works the best at is a replacement for intermediaries. The intermediaries are very pissed off about this, BTW.

      When I bought a Debian themed (engraved) swiss army knife some weeks ago, I had to transfer money from my CC in USD to paypal in USD at some loss to the parasites. Then from paypal in USD to this european online IBAN provider in EUR at some loss to the parasites, both transactionally and currency conversion loss. Then from the IBAN provider in EUR to the swiss Debian club in CHR (how the heck does "swiss franc" abbreviate to CHF anyway?) again at some substantial loss. I ended up funding the parasites more than I funded the swiss Debian club. At least I get a cool looking engraved swiss army knife out of it, or at least I supposedly will. It took "about a week" for my money to make it to them, admittedly I could have done it somewhat faster if I had worked harder or paid more in fees.

      Yesterday I BTC'd the cost of a soda to a friend of mine at, for all intents and purposes, zero loss. It wasn't instantaneous, but it was "fast enough".

      The intermediaries are nothing but financial parasites and the world will be better off without them.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    34. Re:Yes but by discontinuity · · Score: 1

      Bullshit. Stockbrokers and lawyers are licensed and subsidized. The supply is artificially limited by government fiat, and demand is artificially increased. Not so for mechanics and programmers. And that's the reason for the difference. It has nothing to do with natural supply and demand.

      Artificially limited by fiat? This suggests there is a quota for how many lawyers can be licensed in a given year. I am unaware of such a limit. Having to pass an examination is not the same thing.

    35. Re:Yes but by Jeremi · · Score: 2

      Prosperity: the gift of stockbrokers and lawyers to the rest of us.

      Maybe at one time that had some truth to it. Lately they've been keeping that gift for themselves.

      --


      I don't care if it's 90,000 hectares. That lake was not my doing.
    36. Re:Yes but by Nursie · · Score: 1

      Wow, and to think that I've sent money all over the world with none of that nonsense and fees in the sub-1% range.

      Direct bank transfers, look 'em up maybe?

      I agree the middlemen and many banks are parasites, but you seem to have gone out of your way to do that transaction completely wrong.

    37. Re:Yes but by NeutronCowboy · · Score: 2

      CH: Confederation Helvetique. F: Franc. No idea why the abbreviation was based on French, instead of German, Italian or old Swiss.

      --
      Those who can, do. Those who can't, sue.
    38. Re:Yes but by drsquare · · Score: 1

      It's nothing to do with supply and demand, it's about control.

      Finance jobs make money because they control the flow of money, and can cream off as much as they can get away with. Managers make more than workers because it's the managers who decide who makes what.

      You can't talk about supply and demand when most people never get the chance to be managers or stockbrokers and show whether they can do it or not.

    39. Re:Yes but by Dagger2 · · Score: 1

      Sorry, but nobody, apart from researchers, and those who want to check it out just for the novelty are going to use bitcoin as a currency.

      On their own computers.

      It's a bit like running an email server: they're big, complicated bits of software that require a ton of configuration, and you need to spend time keeping it up to date and keeping an eye out for any relevant security advisories. You also have to make sure to back up your mail daily -- preferably offsite too, in case your house burns down -- lest you lose all of it. This is beyond the ability of most people.

      And yet plenty of people use e-mail! The beauty of e-mail is that it's possible for anybody to run a server, and yet still send messages to anybody using any other server. This is what Bitcoin is intended to do with payment systems.

      Bitcoin makes it possible, if you wish, to make payments directly yourself, on your own systems and under your own control. (Of course, if you do this, you also take on the responsibility of doing it right.) Alternately, you can use wallet services provided by another entity of your choosing -- which can be anyone, since anyone has the ability to make and receive Bitcoin payments. There is no provider lockdown here.

      Of course, I will admit we've now hit the real issue: it's hard to find someone you trust to host your wallet. This is similar to the situation with webmail, except with webmail you only give over access to most of your online accounts and the entire contents of every conversation you have with anybody over e-mail; with a Bitcoin wallet provider you'd be giving them access to the $50 you store in the wallet.

      But this isn't a Bitcoin issue, it's a human/trust issue. People trust companies on the web all the time; I don't think this is insurmountable.

      (Heck, it's not like you even have to leave the $50 in the wallet -- many people make use of Paypal without ever maintaining a balance in their account, often precisely because they don't trust Paypal with their money. The difference with Paypal is that you don't have the option to take your custom elsewhere, since the only way to pay Paypal users is via Paypal itself.)

    40. Re:Yes but by Lakitu · · Score: 1

      The abbreviation is from Confederation Helvetia, which is the name of Switzerland, hence the name of the helvetica font.

      I'm not entirely sure how you can call those services parasites as if they provide nothing. There are definitely plenty of institutions which are more than willing to soak up fractions of your payments, but you seem to have gone out of your way to find some of the worst of them. You also don't seem to have a firm grasp on some of the concepts. What the hell is currency conversion loss? There are different costs of living, which affect the costs of production, etc., in an area like Europe, but the actual number value of something you purchase doesn't have much meaning. The only "currency conversion loss" is the transaction cost a bank or moneychanger charges for selling you euros, which you already mentioned.

      If you had spent time learning it or figuring it out, you probably could have just traded dollars for Swiss francs and sent them directly. Or just sent them money in a physical form like check or money order. Or even sent them dollars, including all the extra ones you spent on fees, and one of them could have exchanged it taking the extra as payment or as a donation. What kind of payments were they even accepting?

      As you can see, many of the "parasitic fees" you mention are actually people who perform a service for you, like sending money across the world conveniently. I mean, really, think about the work you might have to do to get money to these people in Switzerland if not for these parasites, and then think about how much it costs to do that, not just flying the actual money out there, but then finding a random Swiss person who would want your dollars for francs, or finding someone else first who would want your dollars for euros.

      Many money servicing institutions are more than willing to soak up as much in fees as they can, but your limited experience told here shouldn't be taken as prima facie evidence of them being parasites who provide nothing of value. There's a cost involved with moving money around the world like that, including others I haven't mentioned. Do you realize how much money and effort it takes to keep an entire institution around constantly at the ready to trade you Swiss francs? They can't just immediately spring up from nothing out of thin air just to sell vlm Swiss francs. That there is even a group of people both willing and constantly looking to sell you other currencies is beneficial to you in a way that you acknowledge by paying them fees, even if you are unwilling or unable to consciously acknowledge it.

    41. Re:Yes but by seanadams.com · · Score: 1
      No, it is certain physical properties that makes something useful as money (scarcity, durability, divisibility, fungibility, ease of identification, suitable for making denominated units (coins), not a gas that will escape when you open the jar, not toxic or radioactive). This is why gold and silver are money, but diamonds aren't, even though both are pretty and both have value. Diamonds are neither fungible nor divisible. This makes them are illiquid, and therefore bad money. Sure gold is pretty but most people don't look at their gold, it sits stored away in a vault.

      Gold is *naturally* money. It's not something that humans had a say in. The best way to understand this is by the anthropic principle - what else could be money? There is no other substance with all the right properties. Silver, platinum, and palladium are the runners up - but they lack better identifiability, since the grey metals all look pretty similar.

      The cultural significance and beauty were probably assigned after humans came to recognize it as a store of value. For example, aluminum was once highly valued due to its near non-exsitence in nature in its elemental form - more valued than gold even, until we figured out how to refine it. Bitcoin doesn't have aesthetics going for it, but it doesn't have to. Plenty of people think stocks and bonds are valuable for example, and there's nothing pretty to look at there.

      So bitcoin has all the necessary monetary properties of gold, with the added advantage that it can be moved around electronically. So I would say it's actually far better money than gold (at least as far as market participants would be concerned - governments hate it). Yes there is a chicken and egg hurdle before it can gain widespread adoption as currency, but actually there is a plausible path to get it there. Already as I mentioned it is perfectly useful for foreign exchange including international wire transfers. This doesn't require it to have a particularly stable value as long as there are currency exchanges available to both parties. Money and currency are not the same thing... bitcoin is already money, even if it's not yet currency.

    42. Re:Yes but by lwsimon · · Score: 1

      I'm okay with that, though.

      --
      Learn about Photography Basics.
    43. Re:Yes but by shutdown+-p+now · · Score: 1

      CH is actually "Confoederatio Helvetica" - Latin, not French.

    44. Re:Yes but by CastrTroy · · Score: 1

      But to accomplish this, we don't really need a whole new currency, what we really need is an open payment API. Paypal, Visa, Google Wallet could all use the same API for transferring money, and both the merchant, and the purchaser could choose to use whichever service they wished. You shouldn't have to convert your money into some secondary currency to accomplish this. You should able to place $50 into your wallet, and be able to send that $50 to any body else using the same Open Payment API. There's no reason to have another currency. In my mind, it would work very much like OpenID, except that your OpenID provider would also be holding money for you (or allow you to enter credit card number when payment was required) and then the money could be transferred to the website you are authenticating with.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    45. Re:Yes but by Dagger2 · · Score: 1

      That's half of the problem, but how do you verify that the money held by the wallet service is valid? Anybody could set up a service, claim they have $50 and then spend it. You'd have to vet each wallet provider to make sure they could be trusted before you accept money from them. Imagine trying to handle your own wallet, and then getting Paypal to take you at face value on how much is in it: that's just not going to happen.

      What they'd do is ask you to transfer funds from a wallet hosted by a credit card provider or a bank. With just an open API, you could pay people on other services (an improvement over the current situation), but the overall system would still be centrally controlled by the few players big enough to operate in it. To remove that central control, you need a distributed mechanism for making sure that people don't lie about how much money they have.

      That's what Bitcoin is. It's a distributed, cryptographically-secure ledger for keeping track of who has how much money, and a way to transfer that money around.

    46. Re:Yes but by CastrTroy · · Score: 1

      I still don't understand why you need a new currency though. Everything I hear about bitcoin is good except for the fact that I can put $50 in account, and then the next days it's gone because "bitcoin" was devalued. For something like bitcoin to catch on, people will have to be ensured that putting $50 in your bitcoin wallet means that you will always be able to take $50 back out.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    47. Re:Yes but by Dagger2 · · Score: 1

      Unfortunately I don't believe it's possible to do that in a distributed system. The only way to fix the price against the dollar would be for someone to buy and sell bitcoins for a guaranteed fixed price, and to do that they'd need to be in a position to mint new coins (since they'd need an infinite supply); this is exactly the situation we're trying to avoid.

      (It's not like this would completely eliminate the problem either: most of the rest of the world uses currencies that aren't fixed against the dollar. This "no guarantee that $50 will be worth the same tomorrow" thing is something the rest of us live with all the time.)

      There are ways to mitigate the volatility. Rather than trying to store wealth in bitcoins for extended periods of time (which exposes you to changes in the exchange rate, be they good or bad), instead use it as a means of making payments. Buyers would buy coins only when they need to pay someone, and merchants would sell the coins after receiving them. If merchants perceive a risk of bitcoins dropping in value between setting the price and being able to sell the coins, then they can charge slightly extra to cover the perceived risk. (For symmetry, they should also charge slightly less if they believe the exchange rate will go up instead of down, but I bet most would quite happily take that as free profit.)

      I do definitely agree this is a problem for Bitcoin. But it is possible to manage the risk, and that risk gets lower the more people use bitcoins. I don't think it's a show-stopper.

    48. Re:Yes but by Anonymous Coward · · Score: 0

      And you have to be able to do this on a daily basis.

      No you don't. Backups will stay "up to date" for quite a while.

    49. Re:Yes but by Therilith · · Score: 1

      That's sort of a silly complaint though.
      If you have 50 BTC in your wallet, 24 hours later you'll... still have 50BTC in your wallet.

      If I exchange my dollars for euros (or yen or GBP) and back again the next day, I might find that I've lost quite a bit of my "investment" in a short period of time.

      You can, of course, claim that the value of a bitcoin isn't stable enough (which will be less of a problem as more people start using it), or that you think it'll become worthless at some point, but such criticisms can be leveled against any currency.

  3. Re:I'm starting to want to work at Microsoft Resea by Anonymous Coward · · Score: 3, Insightful

    Well, IBM do have a fairly large research division too.

  4. Re:I'm starting to want to work at Microsoft Resea by somersault · · Score: 5, Funny

    You're the guy that said he worked in marketing yesterday. Why is it that all UIDs over 2,000,000 seem to do marketing for MS?

    --
    which is totally what she said
  5. Irresponisble headline by Anonymous Coward · · Score: 5, Informative

    Only a small fraction of bitcoin nodes (e.g. 1%) are mining nodes, and they all relay transactions as relaying transactions is very cheap to do. The problem they're describing clearly does not exist. If it did someday turn out to be an issue you can address it by users handing their transactions directly to various miners, you don't need some crazy complicated reward scheme.

    It's also not news— their contribution isn't insight on incentives but a complicated sibyl resistant reward scheme for trees (which the bitcoin network is not) which requires doubling the cost of forwarding a transaction every two hops it takes. (By making every node perform a great many additional cryptographic signatures and checks in order to track the reward)

    1. Re:Irresponisble headline by makomk · · Score: 1

      Only a small fraction of bitcoin nodes (e.g. 1%) are mining nodes, and they all relay transactions as relaying transactions is very cheap to do.

      The problem is what happens if relaying transactions becomes less cheap - that is to say, if Bitcoin actually gets adopted and the transaction volume skyrockets.

    2. Re:Irresponisble headline by Anonymous Coward · · Score: 0

      If bitcoin ever succceeds and its transaction volume grows will client nodes still relay all transactions to all of their neighbours? I think you are not seriously thinking of how bitcoin will need to scale up.

    3. Re:Irresponisble headline by Anonymous Coward · · Score: 0

      I'm not understanding the pdf. Why would they want the transactions to be relayed? I just dont know whats going on would like some insight at the problem.

  6. And what's the Bitcoin Forums response? by David+Gerard · · Score: 0, Flamebait

    And what's the Bitcoin Forums response? Denial.

    --
    http://rocknerd.co.uk
    1. Re:And what's the Bitcoin Forums response? by Anonymous Coward · · Score: 5, Insightful

      when you wrote "denial" did you mean "in a discussion involving several dozen people, one participant denied the existence of the problem while everyone else discussed whether the flaw is a practical problem or how it could be solved"?

      Understandable typo, the keys are right next to each other.

    2. Re:And what's the Bitcoin Forums response? by drinkypoo · · Score: 0, Troll

      If people stop mining bitcoins now, the people at the top will stop winning, so of course they are going to deny. You know, kind of like global warming.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    3. Re:And what's the Bitcoin Forums response? by Halo1 · · Score: 3, Informative

      Not to mention "engaging in a constructive discussion with one of the original authors of the paper, who hopped in and thanked people for their interesting comments".

      Mod parent up.

      --
      Donate free food here
    4. Re:And what's the Bitcoin Forums response? by Rogerborg · · Score: 1

      The take-away from that discussion is that the number of nodes on the bitcoin network is "dropping and has been for some time". Bitcoin is already dead, we're just waiting for Netcraft to confirm it and a politician to deny it.

      --
      If you were blocking sigs, you wouldn't have to read this.
    5. Re:And what's the Bitcoin Forums response? by IamTheRealMike · · Score: 2

      Yeah, hardly denial. Let me post my response to the thread here to make it more visible. The summary is that this is not a new argument, but the MSR researchers certainly went deeper into it than most people do. Long term broadcast/floodfill is likely to become less important for other reasons beyond nodes deciding not to relay (which is not a problem observed in practice).

      This point has been discussed on the forum several times over the last couple of years. It's not a novel criticism though I'm glad the smart people at MSR are taking a hard look at Bitcoin. Hopefully they may see this thread and jump in with their thoughts.

      Note that it's not just miners who have an incentive to not relay transactions. In theory, you could run a non-mining node that co-operates with a mining node. When you receive a transaction with a fee, you send it directly to the mining node and no others, in return for a small cut of the profits. It's unlikely to happen for a long time (if ever), as currently you could argue there's actually no incentive to include transactions at all - yet people still do.

      I agree with Gregory, transaction broadcast is a simple and useful technique in the early days of the network, but if Bitcoin continues to grow and evolve we'll see a move away from it - it's often unnecessary, inefficient and has some strange incentive structures like the paper says. I'm not sure trying to fix it is the right approach.

      What would replace it? I've argued in the past that senders should never attach fees because they aren't the one who actually cares about payment confirmation (they know they are trustworthy). Instead senders should send a free transaction directly to the receiver. They can then decide what to do with it - attach a fee (2nd tx) and broadcast, upload it directly to miners, or if you have high confidence in the sender to not double spend simply keep it around and pass it on to somebody else as part of a new payment.

      Stefan has argued for an insurance company scheme in which merchants protect themselves against the risk of double spending by paying small premiums. In this setup, the receiver would have another option - transmit the received transaction straight to the insurance company. They'd verify it was valid and broadcast it in such a way that as many miners as possible are likely to receive it. Miners have incentives to connect directly to the insurance company nodes (or intermediate backbone nodes) and the insurance companies have incentives to make it easy for them. Broadcast over 10,000 connections really isn't a big deal for modern computers so I'm not worried about this kind of scalability.

      Of course, this takes us a little bit further from the purist "zero trust" design that Satoshi was aiming for. Starting a new insurance company would (in the absence of functioning broadcast) be harder because you'd have to find all the miners. That doesn't worry me much - the long term future of mining is as a professional business, it's already gone that way to some extent, and all the incentives are aligned. Miners have an incentive to be visible and merchants/insurers have an incentive to seek them out. Whether that's done via a naive P2P broadcast or something more sophisticated, only time will tell.

    6. Re:And what's the Bitcoin Forums response? by serviscope_minor · · Score: 5, Funny

      If people stop mining bitcoins now, the people at the top will stop winning, so of course they are going to deny. You know, kind of like global warming

      A bad analogy is like a leaky screwdriver and that analogy has covered the floor in so much water that it is like a really tricky crossword puzzle.

      --
      SJW n. One who posts facts.
    7. Re:And what's the Bitcoin Forums response? by drinkypoo · · Score: 0

      The people profiting from the human activities which everyone who has an opinion that matters agrees are at minimum exacerbating global warming and which are probably capable of being entirely responsible, especially the massive CO2 emissions which are unprecedented throughout the history of the globe being able to support our existence, would have to hold their bellies in if they were to laugh hard enough at you to match the hilarity of what you've just said.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    8. Re:And what's the Bitcoin Forums response? by mgiuca · · Score: 2

      I think the best response on there is this:

      "I suppose this argument would be equivalent to saying in BitTorrent, that there is "no incentive" for people to seed files, therefore, eventually nobody will seed files and that BitTorrent will soon fail."

      As far as I can tell, the argument is this:
      1. Miners win transaction fees when they a) receive a transaction, and b) solve a block with that transaction in it.
      2. If other miners don't know about a transaction, they cannot win the transaction fee.
      3. Miners are therefore incentivised to not tell other people about the transactions they hear about.
      4. Therefore, the network will break as miners stop forwarding transactions.

      This argument has some significant flaws:
      1. It isn't just miners who forward transactions -- it's all nodes. As the quote above suggests, there is no incentive for non-miner nodes (which massively outnumber the miner nodes) to not forward a transaction, except bandwidth costs. And that doesn't seem to have stopped BitTorrent users.
      2. For this scheme (not forwarding) to pay off, miners would have to somehow prevent all other nodes from receiving the transactions. Transactions are propagating around the network via all the nodes, so each transaction could find hundreds of paths to each node. A miner would have to block of all paths to all of the competing miners for this attack to be effective.

      For this to be effective, it would need the majority of nodes on the network to be "selfish" (including non-miner nodes). Remember, the whole Bitcoin network already relies on the fact that the majority of nodes are "good" nodes (for verification purposes). So there is no point speculating about a possible future Bitcoin network in which an overwhelming majority of nodes collude together to prevent other nodes receiving transactions.

    9. Re:And what's the Bitcoin Forums response? by makomk · · Score: 1

      See the comments in the thread. In particular, (a) there's a limit to the number of fee-free transactions in a block, and once we start hitting that limit it makes sense for nodes to delay other people's transactions by not forwarding them, and (b) it's possible for miners to incentivise other nodes not to forward transactions with big fees to anyone else.

    10. Re:And what's the Bitcoin Forums response? by Anonymous Coward · · Score: 0

      TL;DR the article?

      'Node' = running Bitcoin client. OK so far?

      As more and more people are 'mining' for Bitcoin, the realities of obtaining Bitcoin in that way force them to mine in pools. The expectation of finding a 50 BTC block when solo mining are now quite slim. A couple thousand dollars of GPUs barely represents the possibility of finding a block sometime in the next six months. Pooled mining generates rewards every day - albeit smaller rewards.

      Solo mining requires a running Bitcoin client. Pooled mining (i.e., connecting over the internets to a resource which pools all miners into one huge miner of massive computing power) does not. For example, slush's (medium-sized, 1 Th/sec) pool has 6,000 miners (more or less) connected to it - but all those miners share a single instance of the Bitcoin client between them.

      So let's fix that, shall we?

      "The take-away from that discussion is that the number of nodes on the bitcoin network is "dropping and has been for some time"which indicates the popularity of Bitcoin."

      There. Much better.

    11. Re:And what's the Bitcoin Forums response? by Jeremi · · Score: 1

      You know, kind of like global warming.

      Please don't bring up Global Warming in a Bitcoin thread. Doing that is like crossing the streams in Ghostbusters -- peoples' heads will explode.

      --


      I don't care if it's 90,000 hectares. That lake was not my doing.
    12. Re:And what's the Bitcoin Forums response? by drinkypoo · · Score: 1

      Please don't bring up Global Warming in a Bitcoin thread. Doing that is like crossing the streams in Ghostbusters -- peoples' heads will explode.

      I keep trying, but spontaneous cranial explosion never seems to turn up in the news.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    13. Re:And what's the Bitcoin Forums response? by mgiuca · · Score: 1

      a) What do you mean by "a limit to the number of fee-free transactions in a block"? I am aware that there is a limit on the number of blocks that will generate a minted coin (after which miners will have to rely on transaction fees). I am aware that there is a socially-imposed limit on the size of a transaction (in kb) before a transaction fee needs to be paid. I don't know what you mean by "number of fee-free transactions in a block". It's much simpler: once we start hitting a situation where miners make more from transaction fees than the mining bonus, it will make sense for miners to delay other people's transactions. But miners are a small percentage of the nodes on the network.

      b) How would miners incentivise the majority of other nodes not to forward? I see someone mentioned a scenario in which a miner controls multiple nodes, and if any of their "selfish" nodes get a transaction they forward it only to the miner and nobody else. But still, this only creates a problem if someone sending a transaction happens to be connected only to nodes controlled by that miner, and nobody else. Unless one individual or cooperating cartel can control the overwhelming majority of the nodes on the network, this isn't a problem. And again: if one individual or cooperating cartel can control the majorty of nodes on the network, it's fucked anyway because they can rewrite the rules at that point.

      I still don't see this being any more than an interesting theoretical (economic) argument which is difficult to see happening in practice.

    14. Re:And what's the Bitcoin Forums response? by AlienIntelligence · · Score: 1

      Understandable typo, the keys are right next to each other.

      lol, a spit-take to you sir!

      --
      For me, it is far better to grasp the Universe as it really is than to persist in delusion
    15. Re:And what's the Bitcoin Forums response? by tehcyder · · Score: 1

      "The take-away from that discussion is that the number of nodes on the bitcoin network is "dropping and has been for some time"which indicates the popularity of Bitcoin."

      Brilliant! So if the number of nodes decreases this indicates the popularity of Bitcoin, whereaso if the number increases this indicates the popularity of Bitcoin too?
      You can't argue with logic like that.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  7. summary by petermgreen · · Score: 5, Insightful

    If a LARGE proportion of bitcoin nodes are run by assholes who refuse to distribute transactions then the network may fall apart.

    This system seems to add a lot of complexity to solve something that has not proven a problem.

    --
    note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
    1. Re:summary by ultranova · · Score: 1

      This system seems to add a lot of complexity to solve something that has not proven a problem.

      No, this system adds a lot of complexity to tie every transaction to an IP address. The goal is surveillance, the stated purpose is just a thinly veiled excuse.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    2. Re:summary by Anonymous Coward · · Score: 0

      "Something that has not proven a problem?"

      really? that's security, now?

      consider this: with the rise of bitcoin malware, there may be more zombie computers running bitcoin without the user's knowledge, than there are actual intentional users.

    3. Re:summary by jduhls · · Score: 0

      yeah, it's like the early interwebs: each node is populated by a troll.

    4. Re:summary by Anonymous Coward · · Score: 1

      This is a "tragedy of the commons". Every node alone doesn't make much of a difference to the network but might decide to drop out to save on computation and bandwidth. The network may destabilize due to lack of incentives.

    5. Re:summary by Time_Ngler · · Score: 1

      I don't see this as a problem, even if every node acts in a selfish way and miners don't distribute any transactions with fees. Miners will gladly accept any transaction with fees attached. The sender and the receiver of a transaction wants to give the transaction to as many miners possible. Therefore, the miners themselves will come up with a solution to allow the senders and receivers to send them transactions easily.

      This may be in the form of a broadcasting proxy that miners must sign up to pay for transactions, or some other idea. But because there are ample selfish actors who want the transactions to get transmitted it will happen.

  8. Ayn Rand by Anonymous Coward · · Score: 0, Offtopic

    Can someone tell my why I've had Ayn Rand shoved down my throat 3 times in the past few hours online?

    There has to be some kookey Anon C who can map out the coarser details of her connection to the Illuminati for me.

    Please do. Thanks.

  9. Re:I'm starting to want to work at Microsoft Resea by Anonymous Coward · · Score: 0

    actually the only major company

    Nope. Plenty of big companies have research divisions.
    Microsoft's one is just one you hear a lot about because they do it for marketing reasons as well as research.
    Typically very little of that research ever makes it out of there, though.

  10. Doesn't really make sense by Anonymous Coward · · Score: 3, Interesting

    This doesn't really make sense. Clients forward transactions as well as miners (and typical clients are connected to 8 other clients, making it a very well connected network).

    Granted, there is no incentive to forward transactions, but if nobody forwards transactions then the network won't work so ultimately it's in the self interest of all users to do so. Some miners may decide not to do so, in the hope that they will be the one who solves the block and get the transaction fee. But they are not actually gaining anything by doing so. They are making other miners potentially miss out on transaction fees but it doesn't improve their chances of winning the block and therefore getting the fee and there is no way they can know what transactions other miners have picked up through other routes via the network.

    I think the conclusion is wrong; while there is no incentive to forward the transaction (beyond stability of the network), there is also no obvious disincentive to do so as the cost is tiny (the cost of the bandwidth to forward it)

    1. Re:Doesn't really make sense by kiddygrinder · · Score: 2

      sounds like the same awesome plan as sitting on a poker machine.

      --
      This is a joke. I am joking. Joke joke joke.
    2. Re:Doesn't really make sense by drinkypoo · · Score: 3, Informative

      They are making other miners potentially miss out on transaction fees but it doesn't improve their chances of winning the block and therefore getting the fee and there is no way they can know what transactions other miners have picked up through other routes via the network.

      If it hurts the other guy and it doesn't hurt you then there is an incentive not to forward any more transactions than you have to. If it hurts you and other guy at the same time then you can do it selectively, any time it will hurt him more. If everyone were altruistic, you'd be right. They aren't, so you aren't.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    3. Re:Doesn't really make sense by History's+Coming+To · · Score: 2

      A big part of the problem is likely to be people like me who started playing around with Bitcoin out of curiosity and then just gave up because I didn't really care and couldn't see the point. I suspect there's a lot of people like me, and hence a lot of "dead nodes" in the system.

      --
      Please consider this account deleted, I just can't be bothered with the spam anymore.
    4. Re:Doesn't really make sense by IamTheRealMike · · Score: 2

      It's not about altruism, it's about longer term incentives. If Bitcoin fails to work properly because people hoard transactions then the worth of your own Bitcoin using business and stored value goes down.

      There are plenty of other responses possible to this problem though, if it ever actually happens (nobody has observed people failing to relay transactions for profit today). One is to simply have rebroadcast nodes that don't verify transactions or blocks and thus are very cheap to run, which simply ensure good broadcast connectivity. Another is to accept that people, merchants in particular, have an incentive to get their transactions to as many miners as possible, and miners have incentives to get transactions, so it's very likely these people will find each other some way without relying on broadcast. Nothing in Bitcoin actually requires P2P broadcast of transactions, it's just convenient.

    5. Re:Doesn't really make sense by drinkypoo · · Score: 2

      I didn't say it couldn't be solved, I said there are incentives to behave in this fashion, and therefore it is a flaw in the implementation of bitcoin, but a much smaller one than that bitcoins represent waste instead of production or wealth.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    6. Re:Doesn't really make sense by Rogerborg · · Score: 1

      Even the bitcoin true believers on their forums have admitted that the number of nodes is dropping. The total "market value" of all the bitcoins in existence is essentially insignificant and designed to stay that way. You'd (seriously) be better off posting baggies of gold dust around if you want a universal, untraceable currency.

      --
      If you were blocking sigs, you wouldn't have to read this.
    7. Re:Doesn't really make sense by heathen_01 · · Score: 1

      ... than that bitcoins represent waste instead of production or wealth.

      I don't understand your point. How do traditional notes/coins represent production and wealth instead of waste. There is no intrinsic value in the notes I currently hold, there is only value in the idea that I can swap it for something else.

    8. Re:Doesn't really make sense by makomk · · Score: 1

      Actually, for various reasons Bitcoin appears to be quite badly connected. Pools have seen block propagation times across the networks of over a minute, and I don't think anyone's even bothered to measure transaction propagation because it doesn't currently matter much to the miners.

    9. Re:Doesn't really make sense by egranlund · · Score: 1

      It's not about altruism, it's about longer term incentives. If Bitcoin fails to work properly because people hoard transactions then the worth of your own Bitcoin using business and stored value goes down.

      Wouldn't the value of your bitcoins go up/stay stable as the supply of bitcoins would decrease (even slightly) by you being a jerk?

    10. Re:Doesn't really make sense by drinkypoo · · Score: 1

      I don't understand your point. How do traditional notes/coins represent production and wealth instead of waste. There is no intrinsic value in the notes I currently hold, there is only value in the idea that I can swap it for something else.

      While that's true, bitcoins are produced by wasting electrical power to produce CPU power to produce bitcoins, and they provide no apparent benefit over electronic dollars except to successful miners and have numerous significant drawbacks to everyone else in comparison, so once again, they have no reason to exist except to benefit the creators of the scheme. Some others will benefit in the process, but more people will lose than will win.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    11. Re:Doesn't really make sense by slabberman · · Score: 1

      Granted, there is no incentive to forward transactions, but if nobody forwards transactions then the network won't work so ultimately it's in the self interest of all users to do so.

      It doesn't work that way, this is a tragedy of the commons type situation.

      while there is no incentive to forward the transaction (beyond stability of the network), there is also no obvious disincentive to do so as the cost is tiny (the cost of the bandwidth to forward it)

      The disincentive to forward does not come from solving the current block, but from *not* solving the current block. If the current block is solved by someone else and you have withheld a transaction, you have a new opportunity to reap the transaction fee by solving the block after the current one.

      To see this clearly we can take it to the extreme: suppose all transactions run through you, and you withhold all of them until you find a block yourself. Then no one else will gain any transaction fees from solving a block, and you will get all of the fees once you find a block. That's a definite advantage.

    12. Re:Doesn't really make sense by Anonymous Coward · · Score: 0

      That's a definite advantage.

      That's an insignificant advantage. The advantage gained is so infinitesimal as to be essentially zero.

    13. Re:Doesn't really make sense by tehcyder · · Score: 1

      There is no intrinsic value in the notes I currently hold, there is only value in the idea that I can swap it for something else.

      The difference is that with real currency, anyone is obliged to accept it as legal tender. I can't turn up at a bakers and be told "sorry your notes aren't accepted here for buying bread".

      Whereas with bitcoins, it's only fellow loonies who will accept them in return for hard drugs, child pr0n, botnets or whatever it is you're so secretive about.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    14. Re:Doesn't really make sense by heathen_01 · · Score: 1

      There is no intrinsic value in the notes I currently hold, there is only value in the idea that I can swap it for something else.

      The difference is that with real currency, anyone is obliged to accept it as legal tender. I can't turn up at a bakers and be told "sorry your notes aren't accepted here for buying bread". Whereas with bitcoins, it's only fellow loonies who will accept them in return for hard drugs, child pr0n, botnets or whatever it is you're so secretive about.

      I am under no obligation to swap my services or good for your real currencies.

    15. Re:Doesn't really make sense by heathen_01 · · Score: 1

      You may be right and bitcoins will fail. However if it does it will probably not be because of wasting electricity to produce a bitcoin. All currencies use energy to produce a representation of that currency. If the process was too easy then anybody would do it, just look at what has happened to the pound coin in the UK.

    16. Re:Doesn't really make sense by Anonymous Coward · · Score: 0

      Dropping nodes might not be a bad thing. The average person is just going to get hacked if they're running a Bitcoin node on an insecure computer. They should be using Flexcoin or some other professional site, and those would show up as fewer nodes.

      I imagine if we invented GUNS for the internet, the early years would be littered with careless nerd corpses. Just because you can doesn't mean you should!

  11. Re:Another flaw found in currency by Anonymous Coward · · Score: 1

    Change "lead and tin" to "ink and rag paper" and see how that argument works out for ya.

  12. Re:I'm starting to want to work at Microsoft Resea by qxcv · · Score: 2, Interesting

    I think the real question here is why all UIDs under 2,000,000 don't do marketing for MS. But seriously, their R&D department do some pretty cool stuff. Even though MS manage to churn out nine-nines of crap products, occasionally they still come out with something awesome that they manage to get to market (think Kinect). Shame they spend the rest of their time suing their competitors, churning out garbage like Windows and spreading FUD.

    --
    "The most dangerous enemy of a better solution is an existing codebase that is just good enough." -- Eric S. Raymond
  13. All of my mod points will be undone now, but.. by intellitech · · Score: 3, Interesting

    A bug can exist without it immediately causing problems. It's generally best to fix things before they become a problem, not afterwards.

    --
    vos nescitis quicquam, nec cogitatis quia expedit nobis ut unus moriatur homo pro populo et non tota gens pereat.
    1. Re:All of my mod points will be undone now, but.. by Ginger+Unicorn · · Score: 3, Funny

      which is ironic considering this is coming from microsoft

      --
      (1.21 gigawatts) / (88 miles per hour) = 30 757 874 newtons
    2. Re:All of my mod points will be undone now, but.. by petermgreen · · Score: 1

      True but equally the cost of a fix must be weighed against the benefit of that fix. This "fix" seems to be high cost (dramatically increasing the cost of forwarding a block) for dubious benefit.

      Even if the asshole density got to high for transactions to propogate through random public connections i'm sure people would form other arragenements for getting transactions to miners.

      The researchers haven't even made it clear (at least from my reading of the paper, please tell me if I missed something) if they think this complex system can be implemented without changing the blockchain system to accomodate the new transactions with pre-ordained fee split.

      --
      note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
    3. Re:All of my mod points will be undone now, but.. by 1s44c · · Score: 1

      which is ironic considering this is coming from microsoft

      It's coming from Microsoft Research. These are real researchers funded by Microsoft who do some really nice work.

      The sad thing is the good work these people do ends up owned by Microsoft who rarely use it. Microsoft seem to be funding research just to make sure their competitors don't get hold of researchers.

    4. Re:All of my mod points will be undone now, but.. by Anonymous Coward · · Score: 0

      which is ironic considering this is coming from microsoft

      Really, it's not all that ironic, considering this is coming from Microsoft.

  14. Re:I'm starting to want to work at Microsoft Resea by drinkypoo · · Score: 3, Interesting

    But seriously, their R&D department do some pretty cool stuff. Even though MS manage to churn out nine-nines of crap products, occasionally they still come out with something awesome that they manage to get to market (think Kinect).

    The problem with that idea is that Kinect was a 90%+ finished product when they bought it. They polished it for use with the 360, it always takes them some time to fuck up a new technology sufficiently for their branding, and kicked it out the door. And it's taking them how long to kick out a PC version even though hobbyists have been doing it all along? Microsoft is pathetic at everything but illegally exploiting their opportunities and believing otherwise is ignorant at best.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  15. Re:I'm starting to want to work at Microsoft Resea by Chrisq · · Score: 1

    do marketing for MS. But seriously, their R&D department do some pretty cool stuff. Even though MS manage to churn out nine-nines of crap products, occasionally they still come out with something awesome that they manage to get to market (think Kinect).

    On other occasions they just patent it so that nobody else will

  16. I don't like this one bit by mutherhacker · · Score: 2

    So we need some new method or entity to help move bitcoin from one place to another? Perhaps something like.. banks and insurance companies and derivatives etc? I don't like where this is headed :)

  17. Re:I'm starting to want to work at Microsoft Resea by somersault · · Score: 1

    I got bored of the Wii gimmick and PS Move pretty quick. So I didn't even bother buying Kinect for my 360. How is it any better? I'm not interested in dancing games, and while I used to fantasize about full body motion fighting games as a teenager, I know now that doing that doing that type of violent motion without any resistance (ie a punching bag or opponent) is pretty bad for your joints in the long run.

    MS do manage to hit on good ideas every now and then, and it's good that they have a research lab. They're definitely not the only computer research lab out there. What about Bell labs? And Google Labs and 20% or whatever projects? The original poster claiming MS are the only guys that do research is pure BS.

    --
    which is totally what she said
  18. Re:Another flaw found in Bitcoin protocol by Bert64 · · Score: 4, Interesting

    The value of a good is actually whatever a third party is willing to give you in exchange for that good... This value is completely arbitrary, and allows products with no physical value (eg software) to be sold for huge amounts of money or other goods...

    Similarly, money itself has no real value, only the value that others are willing to give in exchange for it.

    The advantage of bitcoin, is that while its effectively a worthless token system, just like regular cash, it is a finite supply and thus not subject to the whims of a central authority.

    Personally i use bitcoin a lot, primarily as an intermediary currency because i can buy bitcoins with money i hold in one currency, and then draw it out again in my local currency without incurring fees levied by existing currency exchange establishments.

    --
    http://spamdecoy.net - free throwaway anonymous email - avoid spam!
  19. Re:Another flaw found in Bitcoin protocol by Issarlk · · Score: 1

    You can't eat gold. You can't use it to make tools to work the fields or cut trees (too soft and too rare). And yet people used little bits of gold to trade goods. Why?
    This is truly a mystery.

  20. Re:I'm starting to want to work at Microsoft Resea by CmdrPony · · Score: 1

    I don't own Kinect myself, but my parents do. I do own Wii, and to be honest, Kinect is way nicer to use. For one, you don't need to hold any controller. Secondly, it seems to register your movements much better than Wii does. MS probably wouldn't had come up with it if it wasn't for Wii, but they did it so much better. I haven't tested PS Move so cannot comment on that, but it seems to be controller based like Wii.

  21. Re:I'm starting to want to work at Microsoft Resea by Anonymous Coward · · Score: 0

    Because the perception of developers to Microsoft has changed radically since Slashdot's founding. They've gone from being the evil empire to a developer-company with many cool toys.

  22. Re:I'm starting to want to work at Microsoft Resea by Anonymous Coward · · Score: 0

    Fairly large? Second only to Microsoft. And it's one of the best places you could work at.

    IBM spends really a large amount of money on R&D. I wish the coffee were free, tho. Google does that right.

  23. Grabbing some popcorn by Dunbal · · Score: 1, Interesting

    Getting ready to watch bitcoin plunge the rest of the way to zero. Just over $2 now. Anyone who lost money in bitcoin must be told : "seriously, what were you thinking?"

    --
    Seven puppies were harmed during the making of this post.
    1. Re:Grabbing some popcorn by Ragondux · · Score: 1

      Just over $2 now? Last year, when I got some bitcoins, they were all discussing when they'd reach dollar parity, so $2 for 1 BTC is still a good deal. Sure, they had a short bubble recently, but $2 is only low relative to that bubble, not to the evolution of bitcoin.

    2. Re:Grabbing some popcorn by Rogerborg · · Score: 1

      I'm sure that some early speculators have cashed out and doubled their money. Why, some of them are literally tenionaires now.

      --
      If you were blocking sigs, you wouldn't have to read this.
    3. Re:Grabbing some popcorn by Anonymous Coward · · Score: 0

      Those who lost money in bitcoin only lost because other won. Their money didn't vanish, it went to someone else, so, what about all those who won?

    4. Re:Grabbing some popcorn by Anonymous Coward · · Score: 0

      Better grab a big box of popcorn, your going to be waiting a long time. It will never go to zero. Not as long as blackmarket usage like silkroad continue to exist. Another good usage people have been finding is very cheap international money exchanges. Sure some people lost money... And so do people on the stock exchange everyday. I have more silver then you will ever see thanks to bitcoins. Gee.. what was I thinking?

    5. Re:Grabbing some popcorn by tehcyder · · Score: 1

      I have more silver then you will ever see thanks to bitcoins.

      And there are several Russian billionaires who made their money by essentially stealing their country's assets on the breakup of the USSR, so what's your point?

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    6. Re:Grabbing some popcorn by tehcyder · · Score: 1

      Those who lost money in bitcoin only lost because other won. Their money didn't vanish, it went to someone else, so, what about all those who won?

      Well that is pretty much the definition of a pyramid scheme/scam, isn't it?

      If I sell you and nine other people 100% of the Brooklyn Bridge for one million dollars each, I get ten million dollars, you have lost ten million dollars between you, it is a zero sum deal, nothing has been lost overall, so where's the crime?

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  24. Re:I'm starting to want to work at Microsoft Resea by davidbrit2 · · Score: 2

    That's about how long it took MS to find out about Slashdot.

  25. Re:I'm starting to want to work at Microsoft Resea by somersault · · Score: 2

    Not sure what planet you're living on.. Apple has become a second evil empire which may make MS seem slightly more reasonable in some cases - but MS is still obviously an evil empire in itself. As soon as their anti-trust oversight was up earlier this year, it was straight back to the BS. I feel dirty even thinking about looking at an MS product like .NET.

    --
    which is totally what she said
  26. Re:I'm starting to want to work at Microsoft Resea by DrXym · · Score: 1
    Kinect isn't any better. Defenders will claim how it's oh so much more than an EyeToy but the net result is a glorified EyeToy. Most of the games rely on you performing simplistic exaggerated body motions and as may be expected not many traditional games map onto simplistic exaggerated body motions.

    So due to the nature and limitations of the device it has sunk almost immediately into a morass of shovelware with dance & fitness games massively over represented and others which have throwaway mini games bolted onto the side of traditional control main game. Some titles do standout however such as Once Upon a Monster for doing something interesting with the tech.

    The main buzz for the tech appears to be from hackers who discovered you can do some neat things with a camera with some depth finding capabilities.

  27. Ludicrous by mathimus1863 · · Score: 2

    Shame on you slashdot. This is a disgustingly misleading headline that has absolutely nothing to do with the paper. The paper is only offering recommendations for the future, based on some incorrect assumptions about the network (which is that there will be difficulty in propagating transactions). This is not a "flaw" in the protocol.

    The Bitcoin network is well-connected and the only nodes that have incentive not to forward txs make up a tiny percentage of the network (less than 1%). Even if they were the only nodes on the network, the network is designed so that users can locate them, and it costs nothing for a user to forward their transaction to many/all of them. This is completely a non-issue.

    1. Re:Ludicrous by Anonymous Coward · · Score: 0

      Lol, get a load of this guy.

  28. Re:I'm starting to want to work at Microsoft Resea by CmdrPony · · Score: 1

    The main buzz for the tech appears to be from hackers who discovered you can do some neat things with a camera with some depth finding capabilities.

    And Microsoft actually responded to that a lot differently than Sony or Nintendo - They're bringing Kinect support to PC as well, and have released API's to use it.

  29. Re:I'm starting to want to work at Microsoft Resea by EdZ · · Score: 3, Interesting

    I got bored of the Wii gimmick and PS Move pretty quick. So I didn't even bother buying Kinect for my 360. How is it any better?

    It's not. All three non-haptic (don't give me that "vibration is feedback" claptrap!) motion gaming controllers are absolutely horrible to use.

    However, the Kinect is an amazing machine vision system. SLAM, 3d scanning, etc, all for something the size of a Toblerone you can buy off-the-shelf for cheap.

  30. Re:I'm starting to want to work at Microsoft Resea by DrXym · · Score: 1

    PS Move works like a Wii Plus remote, but is more accurate. The remote relays it's pitch, rotation etc. and the PS3 does some simply geometry to track the ball on the end to work out it's exact position in space. It's remarkably accurate. That said there haven't been many standout titles for it. Like Kinect, most games only include a move experience as some kind of afterthought, e.g. a mini game or whatever, or throw it in as an alternative control scheme. I tried the controls with Killzone 3 and thought it was pretty awkward though some people appear to like it. More successful are where it was integrated with EyePet and Heavy Rain strangely. Best example of it in use has to be Tumble where you can pick up blocks and build towers to complete challenges.

  31. Re:I'm starting to want to work at Microsoft Resea by DrXym · · Score: 3, Interesting

    And Sony haven't done that? Oh wait they did.

  32. Re:I'm starting to want to work at Microsoft Resea by Pf0tzenpfritz · · Score: 2

    I think the real question here is why all UIDs under 2,000,000 don't do marketing for MS.

    Stupid question. We're too old.

    --
    Oh, the beautiful gloss of greality!
  33. Re:I'm starting to want to work at Microsoft Resea by Anonymous Coward · · Score: 1

    The Kinect is "early" in Natural Interface (OpenNI) for computers. Consider the Xbox360 Kinect as a early prototype. Right now it's killer use is 3D model rigging, posing and blocking for 3D animation movies (Just look up some of the mid to late 2011 MikuMiku Dance videos which let you use the Kinect for posing.)

    It's much in the same line as how Film and Videotape video cameras evolved. Early models are expensive and low resolution, later models should have higher resolution and more points to model. I believe the current Kinect only has like 12 trackable points. So you only have the option of full body stiff movement, or face movement, not both.

    The Wiimote and PS Move could technically be used in the same manner, but you only get two trackable points (assuming you have two wiimotes or two ps move controllers.) The PS Move is clearly a knockoff of the Wiimote, and there's no way you can say it isn't. In fact it pretty much works exactly the same as the Wiimote except the Infrared tracking is generated by the remote and captured by the camera, instead of in the wiimote which has the infrared generated by the Wii base unit, and the wiimote has the IR tracking in the device itself. Technically the wiimote is cheaper, but not by much.

  34. Re:I'm starting to want to work at Microsoft Resea by JasterBobaMereel · · Score: 1

    Like IBM have had for years you mean ....IBM is a small company that produces software and some other stuff ...

    It's research department is quite well known ... five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science.

    Courier Tablet - sorry no-one seems to have heard of it, is that anything like the iPad or the Galaxy Tablet ?

    --
    Puteulanus fenestra mortis
  35. Re:I'm starting to want to work at Microsoft Resea by JoeMerchant · · Score: 1

    it's actually the only major company in the industry that does have such research center. I wish I worked there :-P

    Google X might be larger, if anyone knew where it was....

  36. Re:I'm starting to want to work at Microsoft Resea by somersault · · Score: 1

    The PS Move is clearly a knockoff of the Wiimote, and there's no way you can say it isn't.

    I wouldn't try to say that it isn't. It's a knockoff that improves a lot on the original though. I haven't tried Wii motion plus though so I can't say how that compares. I only used my Move with the demos it came with though - I haven't seen any games come out that I'd actually want to play with it. If a good game came out for Kinect or any other future control system, then I'd buy it of course. But they're all just gimmicky garbage so far. It's a shame that Rock Band and Guitar Hero were so overdone, I'd rather see a steady stream of improvements with specialised controllers for certain game types.

    --
    which is totally what she said
  37. Re:I'm starting to want to work at Microsoft Resea by rtfa-troll · · Score: 3, Funny

    This;

    The stability of the current desktop computer market is so important to Microsoft that they will practically never actually innovate. They have an R&D department for two reasons. 1) To keep the ideas away from other companies by patenting them and then not licensing them onward 2) To keep the good people away from other companies by using them to create patents.

    The reason not to work for Microsoft R&D is that, whilst you will be comfortable, well fed and well off, you will lead an empty life and they will suck your soul out of you.

    --
    =~ s,(.*),<sarcasm>$1</sarcasm>,g if any_point_you_wish();
  38. Re:I'm starting to want to work at Microsoft Resea by RyuuzakiTetsuya · · Score: 1

    Yeah and that's great and all, if you just want to crap out useless prototypes that never actually go anywhere(the BitCoin research is pretty cool though)... heaven forbid you have an idea that threatens Office, Windows or the Xbox divisions.

    Life at Microsoft R&D must be some bizarre sisyphean effort that's somehow rewarding when you *almost* get that boulder up the hill.

    --
    Non impediti ratione cogitationus.
  39. Re:I'm starting to want to work at Microsoft Resea by CmdrPony · · Score: 0

    What's so bad about .NET? Apart from your prejudice. It's actually good platform, and C# is awesome language for developers. .NET is also fully open. The reason why the newest versions aren't fully supported in Linux is just because of this - the general hate towards Microsoft and their success with Windows. Microsoft does give out the specs, but Linux developers don't want to update their programs. That's really hardly Microsoft's fault.

  40. Re:Another flaw found in Bitcoin protocol by benjamindees · · Score: 1

    It's no mystery. Gold is limited in quantity. It is difficult to forge. It does not degrade over time. And it requires work to acquire.

    As much as anything, trading is about forming relationships. It is about acceding to risk. It is about placing resources in the hands of others, in which we trust they will be well used and cared for. Look at the evolution of currency from simple barter, into our current system, one of credit and accounting standards in which reputation is paramount yet fraud is omnipresent.

    Currency does not need to have inherent value. The value of a currency is in the people who use it, in the value produced by specialization and trade, and in the avoidance of risk while doing so. The value of Bitcoin lies in it's ability to help identify trading partners of similar calibre, with similar values, and to weed out the rest.

    Burning GPU time is equivalent to burning $100 bills.

    --
    "I assumed blithely that there were no elves out there in the darkness"
  41. Re:I'm starting to want to work at Microsoft Resea by Requiem18th · · Score: 1

    I think the real question here is why all UIDs under 2,000,000 don't do marketing for MS.

    Authenticity.

    --
    But... the future refused to change.
  42. Re:Not just an "Irresponisble" headline...wrong. by qubezz · · Score: 2

    "The flaw pointed out in (this) paper is that there is a negative incentive for miners to forward Bitcoin transactions." This is a big derp on the part of these researchers.

    There might be 20 pools collectively mining, and maybe 100+ people mining by themselves at this time. They currently have more processing power than the top 10 supercomputers in the world put together. Miners strengthen the blockchain record of past transactions against cryptographic forgery, but their processing power is not what distributes the pre-inclusion transactions to other nodes on the network.

    The forwarding of transactions around the network is done largely by the 40,000+ users who have Bitcoin open at any time, and form the peer-to-peer transaction distribution network. They distribute the newest transactions waiting to be included in the blockchain to the miners and to each other, and any miner will want to include any outstanding transactions in the next block theyadd to the blockchain, so they can earn the associated transaction fees.

    If one mining pool doesn't forward transactions waiting to be included in the blockchain, then the dozens of connections each peer has to each other will distribute it everywhere else on the network in about a second anyway.

  43. Re:I'm starting to want to work at Microsoft Resea by marcosdumay · · Score: 1

    Well, untill we have direct neural interfaces, any game input system will be (and currently is) a limited kind of toy. Old directional plus buttons joystic leads to 2D interaction, even when the game tries to create a 3D environment, stearing wells and pistol lead to car and shooting games, respectively, the Wii control restrics the games to very coarse movements, and so on.

    In the end, it is ok that the kinetic is a false movement plataform. It happens to be quite fun, at least sporadicaly (I don't own one), as is the Wii, restricted to those coarse movements. Controlling things with your fingers gets tiresome after you try those other devices. Also, it is not just a camera with depth finding capabilties, it is a cheap camera with depth finding capabilities. Just like the Wii mote isn't just a set of accelerometers...

  44. Re:I'm starting to want to work at Microsoft Resea by marcosdumay · · Score: 1

    The Wii control works on PC out of the factory, no need for anything fancy, except for bluetooth. People just don't use it a lot (except, maybe, on media centers) because it doesn't make much sense.

    Microsoft is on a different situation, because the kinetic would be usefull on a PC (for some really targeted applications), and because it prohibited people from using it that way. Now you are trying to make MS backtracking from that prohibition sound as if it was making some incredible innovation. That simply isn't true, all the "innovation" MS is doing here is removing the restrictions (that aren't even legal around here) it tried to impose on its clients.

    And by the way, did MS already release the kitnetic for PCs? Or is it still just vapourware anounced to stop competitors?

  45. Re:I'm starting to want to work at Microsoft Resea by GameboyRMH · · Score: 3, Interesting

    Google as well. Saw an interesting article on Google X labs, their "skunkworks"-style division yesterday.

    http://www.slashgear.com/google-x-labs-plans-robot-researchers-to-map-the-future-14194990/

    There's a link to the poorly-paywalled nytimes article in there. Funny thing is they like to keep the fact that they're doing research a secret and constantly emphasize that they put very little money into research, because research makes shareholders nervous. Shows you how far ahead shareholders (or their HFT servers) are thinking.

    --
    "When information is power, privacy is freedom" - Jah-Wren Ryel
  46. Re:I'm starting to want to work at Microsoft Resea by somersault · · Score: 1

    the general hate towards Microsoft and their success with Windows.

    Um. The hate has never been about success. The hate has been due to the monopoly position of an inferior product. Now I know you're just a marketing droid and therefore probably have no idea nor experience of the technical history during the 80s and 90s, and maybe even the 00s, but there are logical reasons for all the hate.

    Windows has been getting better over the years, but those of us who experienced some of the alternatives tend to feel like MS's monopoly has held the advancement of desktop software back by about 10 years. I used to wish that Apple would gain more marketshare. They have done so now, and they do produce technically superior software to MS - it's just a shame that they have even worse policies in some cases, alongside the same "destroy your competition" ethos that MS have. Geeks (and anyone else who wants to see technology advancing as efficiently and beneficially as possible) prefer competition, not all out war.

    --
    which is totally what she said
  47. Re:I'm starting to want to work at Microsoft Resea by thisnamestoolong · · Score: 1

    What I want to see is Kinect controls integrated into games with otherwise "traditional" control schemes. I imagine an FPS that still uses a controller for the main action, but utilizes head tracking with the Kinect; you would still control your aiming, shooting, and moving with the controller, but could peek around a corner in the game by moving your head to the side. Couple this with a 3D TV, and you've got yourself an incredibly immersive experience.

    --
    To the haters: You can't win. If you mod me down, I shall become more powerful than you could possibly imagine
  48. Re:Another flaw found in Bitcoin protocol by Tolleman · · Score: 1

    There is a direct correlation between gold and poontang. There you have it.

  49. End game scenario "no miners"? by Sakse · · Score: 1

    Imagine there are no miners. This is the practical endgame result when the chance of solving a block drops so low there is no point for ordinary users to be a miner.

    Why would I run a Bitcoin client then? What are my incentives?

    The health of the bit coin network or maybe society? There will always be some that do this. But most people value short gain profit over anything else.. Ref 'tragedy of the commons' or for that matter 'environment problem X'.

    Perhaps I will run it because I use Bitcoin myself? I would certainly use it in the moments I need access to Bitcoins.
    But in the 'idle' periods? I have no incentive, this would just be another bandwidth user and potential entrance into my system.

    Give me incentive. Give me a chance of 'earning' something running my client and I would probably run it. But in my scenario, remember that there is no practical chance of getting a payment for a new block, so I would be interested in earning the transaction fee instead.

    But once you have incentive for doing something, you run into the Sybil problem the Microsoft researchers try to defeat with their hybrid model. Assume zombie networks with lots of machines running for this purpose, and they might be able to at least push their odds in their favor.

    The Microsoft analysis seems to be a sound analysis, given some assumptions. I believe that we, as technical people, should do less posturing and more scientific method. If you disagree, see if you can disprove that their assumptions were correct or try to prove a different model. I happen to agree.

    --
    Fast, Soon, Correct. Pick 2.
  50. What about the biggest flaw? by Anonymous Coward · · Score: 0

    That the whole thing is a pump and dump scam.

  51. Bitcoin has flaws?!? by JustAnotherIdiot · · Score: 1

    Say it ain't so!
    /sarcasm

    --
    What do I know, I'm just an idiot, right?
  52. Re:I'm starting to want to work at Microsoft Resea by kelemvor4 · · Score: 1

    The reason not to work for Microsoft R&D is that, whilst you will be comfortable, well fed and well off, you will lead an empty life and they will suck your soul out of you.

    Isn't that pretty much how employment in general works?

  53. Re:I'm starting to want to work at Microsoft Resea by FrozenFOXX · · Score: 2

    But seriously, their R&D department do some pretty cool stuff. Even though MS manage to churn out nine-nines of crap products, occasionally they still come out with something awesome that they manage to get to market (think Kinect).

    The problem with that idea is that Kinect was a 90%+ finished product when they bought it.

    That's strange, isn't this EXACTLY the sort of thing people praise Apple for? I mean hell, two weeks ago that's exactly what I heard journalists waxing poetic about with Steve Jobs.

    --
    "Just a fox, a whisper."
  54. The more Bitcoin gets looked at by geekoid · · Score: 1

    the more rules and regulations need to be put into place to stop abuse.

    Like actual currency.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    1. Re:The more Bitcoin gets looked at by Anonymous Coward · · Score: 1

      Excepting that the "rules and regulations" are merely technical, and don't require any actual, you know, enforcement by state or police. Making the currency quite good so far as anarchists are concerned.

    2. Re:The more Bitcoin gets looked at by tehcyder · · Score: 1

      Excepting that the "rules and regulations" are merely technical, and don't require any actual, you know, enforcement by state or police. Making the currency quite good so far as anarchists are concerned.

      If you're an anarchist the last thing you want is to use a currency that is controlled by an anonymous bunch of criminals in Russia (or wherever), and fluctuates more than even an unstable normal currency, . Instead you would want a means of exchange with fellow anarchists you could trust.

      Just because you don't want to attract the attention of the state or police doesn't make you an anarchist, mostly it means you're a criminal.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  55. Re:I'm starting to want to work at Microsoft Resea by tehcyder · · Score: 1

    I wish the coffee were free, tho. Google does that right.

    You have just broken my SmugAnnoyingGitOmeter.

    --
    To have a right to do a thing is not at all the same as to be right in doing it
  56. Re:I'm starting to want to work at Microsoft Resea by NickFortune · · Score: 1

    The reason not to work for Microsoft R&D is that, whilst you will be comfortable, well fed and well off, you will lead an empty life and they will suck your soul out of you.

    Isn't that pretty much how employment in general works?

    For some employers more so than for others, I feel :)

    The GP/GGP's comments seem about right to me. I always did wonder how MS Research could do so much cool stuff, and yet have so little of it make it to market with any of the coolness still attached.

    --
    Don't let THEM immanentize the Eschaton!
  57. Re:I'm starting to want to work at Microsoft Resea by OakDragon · · Score: 2

    Fairly large? Second only to Microsoft. And it's one of the best places you could work at.

    IBM spends really a large amount of money on R&D. I wish the coffee were free, tho. Google does that right.

    How can they expect to do R&D if the coffee's not free?

    I'm serious!

  58. Re:I'm starting to want to work at Microsoft Resea by tlhIngan · · Score: 3, Insightful

    The problem with that idea is that Kinect was a 90%+ finished product when they bought it. They polished it for use with the 360, it always takes them some time to fuck up a new technology sufficiently for their branding, and kicked it out the door.

    Problem is, the final 10% polishing is actually pretty damn hard. If you've done software development, getting to the point where the basic features work is really quick. But getting to the point where it's releasable and usable takes a lot of effort.

    It's one thing that Apple is known for (most innovations that are "cool" are at the 90% stage, but it still takes a ton of effort to get it to the stage where people other than geeks and engineers can USE it).

    For Kinect, the final 10% would involve packaging (how does Kinect look, and will it fit with the rest of the equipment?), fitting the stuff inside the package (does it fit? Does the enclosure need redesign?), and more importantly, manufacturability.

    Sticking a reference design in a box is not easy. A lot of work is required in order to be able to build in huge volumes - are the parts available in quantity (and cheaply)? Can it be assembled easily or are there fiddly calibration bits that'll take time to work? Are there simple pass/fail criterion?

    It takes a lot of work. For open-source, you can abandon it after the 90% point (and most stuff is - the final work is the boring dull stuff no one wants to do), but it's not going to fly for commercial products that you want people to buy. And they know when a product was skimped on.

    Heck, even the UI of a product is important, and Kinect took some beating there.

    (It's why you get reviews on "solidness" - a minor detail but relates to build quality, ditto with use of "cheap plastic" or worse yet, "cheap feeling plastic".) It's that final 10% that Apple is well reknown for, and if it was easy, well, Apple would be dead and there would be tons of products with well designed UIs and very nice casings and such.

  59. Re:I'm starting to want to work at Microsoft Resea by gstoddart · · Score: 1

    I don't own Kinect myself, but my parents do. I do own Wii, and to be honest, Kinect is way nicer to use. For one, you don't need to hold any controller. Secondly, it seems to register your movements much better than Wii does

    My biggest problem with Kinect is that it is apparently impossible to create a decent golf game with it.

    Apparently, it can't read what you're doing with your wrists ... unless they made it so you were holding a controller.

    I was really hoping for a decent golf game. :-P

    --
    Lost at C:>. Found at C.
  60. Re:I'm starting to want to work at Microsoft Resea by cavreader · · Score: 3, Informative

    Bell Labs also used to set the standard in R&D,

  61. Re:I'm starting to want to work at Microsoft Resea by cavreader · · Score: 1

    Just like the last 10% of a software development project usuallyrequires more time than the first 90%,

  62. In other news.. by kheldan · · Score: 1

    ..people are still wasting their time with Bitcoin. Well, to be fair, normal non-criminal people, that is. Seriously, why are we still discussing this at all?

    --
    Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
  63. re: Price by jago25_98 · · Score: 1

    Price drops on midnight on the 13th,
    but this post was made on Tuesday November 15, @10:18AM and there is no real response in Bitcoin value.

    There is still no other way to hold a currency in one's head unaided for example, so the fundamentals are the same (it's still useful, no alternative yet).

  64. Re:I'm starting to want to work at Microsoft Resea by Wandering+Voice · · Score: 1

    Lets be fair, Ive got a UID over 2 million and am proud to say I don't work in marketing. I'm unemployed.

  65. Re:I'm starting to want to work at Microsoft Resea by drinkypoo · · Score: 2

    For Kinect, the final 10% would involve packaging (how does Kinect look, and will it fit with the rest of the equipment?)

    which is subjective; I think it looks lame, but that's my own personal opinion.

    fitting the stuff inside the package (does it fit? Does the enclosure need redesign?),

    They made the package for the camera. Srsly?

    and more importantly, manufacturability.

    Which is the kind of thing that Microsoft has proven themselves to be bad at time and again with flaky hardware. Unless that's just planned obsolescence, in which case they have merely proven themselves to be bastards time and again, which we knew anyway.

    Heck, even the UI of a product is important, and Kinect took some beating there.

    IOW, they failed.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  66. Re:I'm starting to want to work at Microsoft Resea by Anonymous Coward · · Score: 0

    IBM has the best private research center in the world. Count how many patents and paper come out of there vs MS research. Hint it's more than 10x.

  67. where does the recursion end? by bityz · · Score: 1

    oooo I resent that. If I hadn't stopped using slashdot for years and could still remember my original creds, I'd say something biting about people with UIDs over 900000. Because 900000 is obviously the right number for criticism.

    1. Re:where does the recursion end? by somersault · · Score: 2

      Just telling it how I see it.

      1-1000: godlike
      1001-5000: clever cookies
      5000-50000: smart, run their own business
      50001-100000: like to drink beer, married to beautiful, genius female geeks
      100001-900000: generally insightful and interesting. Occasional troll.
      900001-1000000: overly opinionated, often wrong
      1000001-1500000: can't spell
      1500001-2000000: really can't spell. "Lol" a lot. Point out the bleeding obvious in every comment.
      2000001+ : work for advertising agencies, contracted out to MS and Facebook.

      666: strangely erratic

      --
      which is totally what she said
  68. Re:Another flaw found in Bitcoin protocol by rabtech · · Score: 1

    Well the issue is that you can't have loans in bitcoin because it's design guarantees long-term deflation (regardless of the short term fluctuations). So any loan would have to have a negative interest rate, otherwise that seemingly low 1% loan is really a massive 40% when the deflation is factored in.

    It also means the best investment strategy is always to sit on your bitcoin. That's free and the value continuously increases. Those with all the coin will continue to have all the coin forever. Yes inflation is a hidden tax... but one that hits the wealthy much harder and forces them to put their money to some sort of productive use (or watch its value evaporate).

    If you want to argue that loans and investment are terrible evils and deserve to be eradicated then you are certainly free to make that argument.

    --
    Natural != (nontoxic || beneficial)
  69. Re:I'm starting to want to work at Microsoft Resea by Forty+Two+Tenfold · · Score: 1

    How can they expect to do R&D if the coffee's not free?
    I'm serious!

    Fuck coffee. R&D requires unhindered access to weed/shrooms/LSD. I'm serious.

    --
    Upward mobility is a slippery slope - the higher you climb the more you show your ass.
  70. Tax breaks for research grants by Anonymous Coward · · Score: 0

    It likely has something to do with the tax breaks companies get for giving out research grants.

  71. Re:I'm starting to want to work at Microsoft Resea by Sebastopol · · Score: 1

    Bahaha! Nice detective work, somersault.

    Busted!

    --
    https://www.accountkiller.com/removal-requested
  72. Re:I'm starting to want to work at Microsoft Resea by um...+Lucas · · Score: 1

    I don't market for Microsoft. And my UID quite plainly shows that I'm older than dirt!

  73. Re:I'm starting to want to work at Microsoft Resea by shutdown+-p+now · · Score: 1

    They have an R&D department for two reasons. 1) To keep the ideas away from other companies by patenting them and then not licensing them onward 2) To keep the good people away from other companies by using them to create patents.

    Can you explain which one of the two reasons you've given apply to, for example, MSR keeping two lead developers of Glasgow Haskell Compiler (Simon Peyton Jones and Simon Marlow) on its payroll, specifically for working on GHC? Keeping in mind that it is open source software, licensed under BSDL...

  74. I think it'd be depressing. by SanityInAnarchy · · Score: 1

    I mean, I'd love to be working on this stuff, but Microsoft so rarely does anything with it other than hold onto it in case they might someday do something with it.

    I'd much rather work for a company which does less cool things which actually stand a chance of either making it to market or being released as open source.

    --
    Don't thank God, thank a doctor!
  75. Re:I'm starting to want to work at Microsoft Resea by somersault · · Score: 1

    Indeed :p Here's the comment I was referring to

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    which is totally what she said
  76. Re:I'm starting to want to work at Microsoft Resea by drinkypoo · · Score: 2

    The problem with that idea is that Kinect was a 90%+ finished product when they bought it.

    That's strange, isn't this EXACTLY the sort of thing people praise Apple for? I mean hell, two weeks ago that's exactly what I heard journalists waxing poetic about with Steve Jobs.

    People who aren't me. Check my posting history, I got plenty of downmods right after Jobs died for saying the things that RMS eventually said about Jobs (I don't believe in "too soon" or "sacred") and then I got more for supporting RMS' article. Luckily I got more up than down. That doesn't mean that the groupthink agrees with me, but it does suggest that the groupthink is not as aligned as you seem to think it is.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  77. Re:I'm starting to want to work at Microsoft Resea by naoursla · · Score: 1

    Coffee is free at Microsoft. Comes out of a machine that brews each cup.

  78. Re:I'm starting to want to work at Microsoft Resea by rtfa-troll · · Score: 1
    Fortunately I do not have an inside track to the thinking of specific Microsoft managers (those who know the mind of Cthulhu are liable to insanity, so you can really see that this is fortunate). I can see that the fact that they continue to work on GHC is obviously an exception which tests ("proves") the rule. However, I guess that when you look in detail you will see many possible reasons:
    • If they are patenting, then Microsoft will later get to block the use of GHC where they wish. The BSD license, unlike the GPLv3 or Apache licenses gives no guarantee that you can use the software.
    • Microsoft is pushing F# which is the obvious competitor to Haskell; having the inside track to their competitor's thinking obviously helps the F# guys.
    • There ware a number of discussions of GPL licensing in the Haskell community. This would have protected Haskell's future indefinitely. Moving the Haskell developers to Microsoft keeps Haskell vulnerable.
    • Microsoft's patents by other people benefit from the increased difficulty in using Haskell as prior art
    • Microsoft hopes to benefit from FUD by making it difficult for people who don't trust Microsoft or have legal reasons to fear them to cooperate with the Haskell developers.

    I'm sure that the real reason is more devious and evil than anything I can come up with, but if I can think of that list in a few minutes I'm sure that a Microsoft manager with billions of dollars of resources behind him, who spends his entire time trying to come up with ways to thwart the progress of the human race can have his own reasons for doing this.

    --
    =~ s,(.*),<sarcasm>$1</sarcasm>,g if any_point_you_wish();
  79. Re:I'm starting to want to work at Microsoft Resea by Samizdata · · Score: 1

    Not only that, but you are stuck using Windows.

    --
    It's not the years, honey, it's the mileage. - Colonel Henry Walton Jones, Jr., Ph.D.
  80. The main flaw in Bitcoin by tehcyder · · Score: 1

    is that it is/was a fucking pyramid scheme.

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    To have a right to do a thing is not at all the same as to be right in doing it