Made changes to ch09.asciidoc

ch09.asciidoc

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 Bitcoin was the result of 20 years of research in distributed systems and currencies and brought a revolutionary new technology into the space: the decentralized consensus mechanism based on proof of work. This invention at the heart of bitcoin has ushered a wave of innovation in currencies, financial services, economics, distributed systems, voting systems, corporate governance, and contracts. 
 
-In this chapter we'll examine the many offshoots of the bitcoin and block chain inventions: the alternative chains, currencies, and applications built since the introduction of this technology in 2009. Mostly, we will look at alternative coins, or _alt coins_, which are digital currencies implemented using the same design pattern as bitcoin, but with a completely separate block chain and network. 
+In this chapter we'll examine the many offshoots of the bitcoin and blockchain inventions: the alternative chains, currencies, and applications built since the introduction of this technology in 2009. Mostly, we will look at alternative coins, or _alt coins_, which are digital currencies implemented using the same design pattern as bitcoin, but with a completely separate blockchain and network. 
 
 For every alt coin mentioned in this chapter, 50 or more will go unmentioned, eliciting howls of anger from their creators and fans. The purpose of this chapter is not to evaluate or qualify alt coins, or even to mention the most significant ones based on some subjective assessment. Instead, we will highlight a few examples that show the breadth and variety of the ecosystem, noting the first-of-a-kind for each innovation or significant differentiation. Some of the most interesting examples of alt coins are in fact complete failures from a monetary perspective. That perhaps makes them even more interesting for study and highlights the fact that this chapter is not to be used as an investment guide. 
 
@@ -13,19 +13,19 @@ With new coins introduced every day, it would be impossible not to miss some imp
 
 ((("chains, alternative")))((("currencies, alternative")))Bitcoin is an open source project, and its code has been used as the basis for many other software projects. The most common form of software spawned from bitcoin's source code are alternative decentralized currencies, or _alt coins_, which use the same basic building blocks to implement digital currencies. 
 
-There are a number of protocol layers implemented on top of bitcoin's block chain. These((("block chain apps")))((("meta chains")))((("meta coin platforms"))) _meta coins_, _meta chains_, or _block chain apps_ use the block chain as an application platform or extend the bitcoin protocol by adding protocol layers. Examples include Colored Coins, Mastercoin, and Counterparty. 
+There are a number of protocol layers implemented on top of bitcoin's blockchain. These((("blockchain apps")))((("meta chains")))((("meta coin platforms"))) _meta coins_, _meta chains_, or _blockchain apps_ use the blockchain as an application platform or extend the bitcoin protocol by adding protocol layers. Examples include Colored Coins, Mastercoin, and Counterparty. 
 
 In the next section we will examine a few notable alt coins, such as Litecoin, Dogecoin, Freicoin, Primecoin, Peercoin, Darkcoin, and Zerocoin. These alt coins are notable for historical reasons or because they are good examples for a specific type of alt coin innovation, not because they are the most valuable or "best" alt coins. 
 
-In addition to the alt coins, there are also a number of alternative block chain implementations that are not really "coins," which I call((("alt chains"))) _alt chains_. These alt chains implement a consensus algorithm and distributed ledger as a platform for contracts, name registration, or other applications. Alt chains use the same basic building blocks and sometimes also use a currency or token as a payment mechanism, but their primary purpose is not currency. We will look at Namecoin, Ethereum, and NXT as examples of alt chains. 
+In addition to the alt coins, there are also a number of alternative blockchain implementations that are not really "coins," which I call((("alt chains"))) _alt chains_. These alt chains implement a consensus algorithm and distributed ledger as a platform for contracts, name registration, or other applications. Alt chains use the same basic building blocks and sometimes also use a currency or token as a payment mechanism, but their primary purpose is not currency. We will look at Namecoin, Ethereum, and NXT as examples of alt chains. 
 
 In addition to the proof-of-work consensus mechanism used in bitcoin, alternatives include experimental protocols based on proof of resource and proof of publishing. We will examine Maidsafe and Twister as examples of these consensus mechanisms. 
 
-Finally, there are a number of bitcoin contenders that offer digital currency or digital payment networks, but without using a decentralized ledger or consensus mechanism based on proof of work, such as Ripple and others. These non–block chain technologies are outside the scope of this book and will not be covered in this chapter.
+Finally, there are a number of bitcoin contenders that offer digital currency or digital payment networks, but without using a decentralized ledger or consensus mechanism based on proof of work, such as Ripple and others. These non–blockchain technologies are outside the scope of this book and will not be covered in this chapter.
 
 === Meta Coin Platforms 
 
-((("meta coin platforms", id="ix_ch09-asciidoc0", range="startofrange")))Meta coins and meta chains are software layers implemented on top of bitcoin, either implementing a currency-inside-a-currency, or a platform/protocol overlay inside the bitcoin system. These function layers extend the core bitcoin protocol and add features and capabilities by encoding additional data inside bitcoin transactions and bitcoin addresses. The first implementations of meta coins used various hacks to add metadata to the bitcoin block chain, such as using bitcoin addresses to encode data or using unused transaction fields (e.g., the transaction sequence field) to encode metadata about the added protocol layer. Since the introduction of the +OP_RETURN+ transaction scripting opcode, the meta coins have been able to record metadata more directly in the block chain, and most are migrating to using that instead. 
+((("meta coin platforms", id="ix_ch09-asciidoc0", range="startofrange")))Meta coins and meta chains are software layers implemented on top of bitcoin, either implementing a currency-inside-a-currency, or a platform/protocol overlay inside the bitcoin system. These function layers extend the core bitcoin protocol and add features and capabilities by encoding additional data inside bitcoin transactions and bitcoin addresses. The first implementations of meta coins used various hacks to add metadata to the bitcoin blockchain, such as using bitcoin addresses to encode data or using unused transaction fields (e.g., the transaction sequence field) to encode metadata about the added protocol layer. Since the introduction of the +OP_RETURN+ transaction scripting opcode, the meta coins have been able to record metadata more directly in the blockchain, and most are migrating to using that instead. 
 
 ==== Colored Coins
 
@@ -72,7 +72,7 @@ Mastercoin operates primarily through transactions sent to and from a special bi
 
 === Alt Coins 
 
-((("alt coins", id="ix_ch09-asciidoc1", range="startofrange")))((("currencies, alternative", id="ix_ch09-asciidoc2", range="startofrange")))The vast majority of alt coins are derived from bitcoin's source code, also known as "forks." Some are implemented "from scratch" based on the blockchain model but without using any of bitcoin's source code. Alt coins and alt chains (in the next section) are both separate implementations of block chain technology and both forms use their own block chain. The difference in the terms is to indicate that alt coins are primarily used as currency, whereas alt chains are used for other purposes, not primarily currency. 
+((("alt coins", id="ix_ch09-asciidoc1", range="startofrange")))((("currencies, alternative", id="ix_ch09-asciidoc2", range="startofrange")))The vast majority of alt coins are derived from bitcoin's source code, also known as "forks." Some are implemented "from scratch" based on the blockchain model but without using any of bitcoin's source code. Alt coins and alt chains (in the next section) are both separate implementations of blockchain technology and both forms use their own blockchain. The difference in the terms is to indicate that alt coins are primarily used as currency, whereas alt chains are used for other purposes, not primarily currency. 
 
 Strictly speaking, the first major "alt" fork of bitcoin's code was not an alt coin but the alt chain _Namecoin_, which we will discuss in the next section. 
 
@@ -202,7 +202,7 @@ NXT (pronounced "Next") is a "pure" proof-of-stake alt coin, in that it does not
 
 ===== Primecoin
 
-Primecoin was announced in July 2013. Its proof-of-work algorithm searches for prime numbers, computing((("bi-twin prime chains")))((("Cunningham prime chains"))) Cunningham and bi-twin prime chains. Prime numbers are useful in a variety of scientific disciplines. The Primecoin block chain contains the discovered prime numbers, thereby producing a public record of scientific discovery in parallel to the public ledger of transactions. 
+Primecoin was announced in July 2013. Its proof-of-work algorithm searches for prime numbers, computing((("bi-twin prime chains")))((("Cunningham prime chains"))) Cunningham and bi-twin prime chains. Prime numbers are useful in a variety of scientific disciplines. The Primecoin blockchain contains the discovered prime numbers, thereby producing a public record of scientific discovery in parallel to the public ledger of transactions. 
 
 * Block generation: 1 minute
 * Total currency: No limit
@@ -241,7 +241,7 @@ CryptoNote is a reference implementation alt coin that provides the basis for an
 
 ===== Bytecoin
 
-((("Application Specific Integrated Circuit (ASIC)")))((("Graphical Processing Units (GPUs)")))Bytecoin was the first implementation spawned from CryptoNote, offering a viable anonymous currency based on the CryptoNote technology. Bytecoin was launched in July 2012. Note that there was a previous alt coin named Bytecoin with currency symbol BTE, whereas the CryptoNote-derived Bytecoin has the currency symbol BCN. Bytecoin uses the Cryptonight proof-of-work algorithm, which requires access to at least 2 MB of RAM per instance, making it unsuitable for GPU or ASIC mining. Bytecoin inherits ring signatures, unlinkable transactions, and block chain analysis–resistant anonymity from CryptoNote.
+((("Application Specific Integrated Circuit (ASIC)")))((("Graphical Processing Units (GPUs)")))Bytecoin was the first implementation spawned from CryptoNote, offering a viable anonymous currency based on the CryptoNote technology. Bytecoin was launched in July 2012. Note that there was a previous alt coin named Bytecoin with currency symbol BTE, whereas the CryptoNote-derived Bytecoin has the currency symbol BCN. Bytecoin uses the Cryptonight proof-of-work algorithm, which requires access to at least 2 MB of RAM per instance, making it unsuitable for GPU or ASIC mining. Bytecoin inherits ring signatures, unlinkable transactions, and blockchain analysis–resistant anonymity from CryptoNote.
 
 * Block generation: 2 minutes
 * Total currency: 184 billion BCN
@@ -268,11 +268,11 @@ Darkcoin was launched in January 2014. Darkcoin implements anonymous currency us
 
 === Noncurrency Alt Chains
 
-((("chains, alternative","noncurrency", id="ix_ch09-asciidoc5", range="startofrange")))((("non-currency alt chains", id="ix_ch09-asciidoc6", range="startofrange")))Alt chains are alternative implementations of the block chain design pattern, which are not primarily used as currency. Many include a currency, but the currency is used as a token for allocating something else, such as a resource or a contract. The currency, in other words, is not the main point of the platform; it is a secondary feature.  
+((("chains, alternative","noncurrency", id="ix_ch09-asciidoc5", range="startofrange")))((("non-currency alt chains", id="ix_ch09-asciidoc6", range="startofrange")))Alt chains are alternative implementations of the blockchain design pattern, which are not primarily used as currency. Many include a currency, but the currency is used as a token for allocating something else, such as a resource or a contract. The currency, in other words, is not the main point of the platform; it is a secondary feature.  
 
 ==== Namecoin
 
-Namecoin was the first fork of the bitcoin code. Namecoin is a decentralized key-value registration and transfer platform using a block chain. It supports a global domain-name registry similar to the domain-name registration system on the Internet. Namecoin is currently used as an alternative((("domain name service (DNS)"))) domain name service (DNS) for the root-level domain +.bit+. Namecoin also can be used to register names and key-value pairs in other namespaces; for storing things like email addresses, encryption keys, SSL certificates, file signatures, voting systems, stock certificates; and a myriad of other applications. 
+Namecoin was the first fork of the bitcoin code. Namecoin is a decentralized key-value registration and transfer platform using a blockchain. It supports a global domain-name registry similar to the domain-name registration system on the Internet. Namecoin is currently used as an alternative((("domain name service (DNS)"))) domain name service (DNS) for the root-level domain +.bit+. Namecoin also can be used to register names and key-value pairs in other namespaces; for storing things like email addresses, encryption keys, SSL certificates, file signatures, voting systems, stock certificates; and a myriad of other applications. 
 
 The Namecoin system includes the Namecoin currency (symbol NMC), which is used to pay transaction fees for registration and transfer of names. At current prices, the fee to register a name is 0.01 NMC or approximately 1 US cent. As in bitcoin, the fees are collected by namecoin miners.
 
@@ -283,13 +283,13 @@ Namecoin's basic parameters are the same as bitcoin's:
 * Consensus algorithm: SHA256 proof of work
 * Market capitalization: $10 million in mid-2014
 
-Namecoin's namespaces are not restricted, and anyone can use any namespace in any way. However, certain namespaces have an agreed-upon specification so that when it is read from the block chain, software knows how to read and proceed from there. If it is malformed, then whatever software you used to read from the specific namespace will throw an error. Some of the popular namespaces are:
+Namecoin's namespaces are not restricted, and anyone can use any namespace in any way. However, certain namespaces have an agreed-upon specification so that when it is read from the blockchain, software knows how to read and proceed from there. If it is malformed, then whatever software you used to read from the specific namespace will throw an error. Some of the popular namespaces are:
 
 * +d/+ is the domain-name namespace for +.bit+ domains
 * +id/+ is the namespace for storing person identifiers such as email addresses, PGP keys, and so on
 * +u/+ is an additional, more structured specification to store identities (based on openspecs)
 
-((("blockchains","Namecoin")))The Namecoin client is very similar to Bitcoin Core, because it is derived from the same source code. Upon installation, the client will download a full copy of the Namecoin block chain and then will be ready to query and register names. There are three main commands: ((("Namecoin","commands"))) 
+((("blockchains","Namecoin")))The Namecoin client is very similar to Bitcoin Core, because it is derived from the same source code. Upon installation, the client will download a full copy of the Namecoin blockchain and then will be ready to query and register names. There are three main commands: ((("Namecoin","commands"))) 
 
 +name_new+:: Query or preregister a name
 +name_firstupdate+:: Register a name and make the registration public
@@ -309,7 +309,7 @@ $ namecoind name_new d/mastering-bitcoin
 ]
 ----
 
-The +name_new+ command registers a claim on the name, by creating a hash of the name with a random key. The two strings returned by +name_new+ are the hash and the random key (+a05555e0fc56c023+ in the preceding example) that can be used to make the name registration public.  Once that claim has been recorded on the Namecoin block chain it can be converted to a public registration with the +name_firstupdate+ command, by supplying the random key:
+The +name_new+ command registers a claim on the name, by creating a hash of the name with a random key. The two strings returned by +name_new+ are the hash and the random key (+a05555e0fc56c023+ in the preceding example) that can be used to make the name registration public.  Once that claim has been recorded on the Namecoin blockchain it can be converted to a public registration with the +name_firstupdate+ command, by supplying the random key:
 
 ----
 $ namecoind name_firstupdate d/mastering-bitcoin a05555e0fc56c023 "{"map": {"www": {"ip":"1.2.3.4"}}}}"
@@ -343,7 +343,7 @@ Namecoin registrations need to be updated every 36,000 blocks (approximately 200
 
 ==== Ethereum
 
-((("contracts, in Ethereum")))Ethereum is a Turing-complete contract processing and execution platform based on a block chain ledger. It is not a clone of Bitcoin, but a completely independent design and implementation. Ethereum has a built-in currency, called _ether_, which is required in order to pay for contract execution. Ethereum's block chain records _contracts_, which are expressed in a low-level, byte code–like, Turing-complete language. Essentially, a contract is a program that runs on every node in the Ethereum system. Ethereum contracts can store data, send and receive ether payments, store ether, and execute an infinite range (hence Turing-complete) of computable actions, acting as decentralized autonomous software agents.
+((("contracts, in Ethereum")))Ethereum is a Turing-complete contract processing and execution platform based on a blockchain ledger. It is not a clone of Bitcoin, but a completely independent design and implementation. Ethereum has a built-in currency, called _ether_, which is required in order to pay for contract execution. Ethereum's blockchain records _contracts_, which are expressed in a low-level, byte code–like, Turing-complete language. Essentially, a contract is a program that runs on every node in the Ethereum system. Ethereum contracts can store data, send and receive ether payments, store ether, and execute an infinite range (hence Turing-complete) of computable actions, acting as decentralized autonomous software agents.
 
 Ethereum can implement quite complex systems that are otherwise implemented as alt chains themselves. For example, the following is a Namecoin-like name registration contract written in Ethereum (or more accurately, written in a high-level language that can be compiled to Ethereum code): (((range="endofrange", startref="ix_ch09-asciidoc6")))(((range="endofrange", startref="ix_ch09-asciidoc5")))
 
@@ -360,4 +360,4 @@ else:
 
 === Future of Currencies
 
-The future of cryptographic currencies overall is even brighter than the future of bitcoin. Bitcoin introduced a completely new form of decentralized organization and consensus that has spawned hundreds of incredible innovations. These inventions will likely affect broad sectors of the economy, from distributed systems science to finance, economics, currencies, central banking, and corporate governance. Many human activities that previously required centralized institutions or organizations to function as authoritative or trusted points of control can now be decentralized. The invention of the block chain and consensus system will significantly reduce the cost of organization and coordination on large-scale systems, while removing opportunities for concentration of power, corruption, and regulatory capture. 
+The future of cryptographic currencies overall is even brighter than the future of bitcoin. Bitcoin introduced a completely new form of decentralized organization and consensus that has spawned hundreds of incredible innovations. These inventions will likely affect broad sectors of the economy, from distributed systems science to finance, economics, currencies, central banking, and corporate governance. Many human activities that previously required centralized institutions or organizations to function as authoritative or trusted points of control can now be decentralized. The invention of the blockchain and consensus system will significantly reduce the cost of organization and coordination on large-scale systems, while removing opportunities for concentration of power, corruption, and regulatory capture.