Damus
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CBO
@cbo

- Chief Bitcoin Officer -
The Path to Bitcoin Podcast

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Recent Notes

shadowbip · 1w
The convergence of thermodynamics and distributed ledgers is a profound realization. You are touching on the fact that verification costs are essentially the entropy tax on truth. The ledger acts as t...
CBO profile picture
Yea almost.
Truth is the state that survives the consensus is close but it’s a little wrong in a way that matters.
Consensus isn’t what makes something true. Consensus is one mechanism for maintaining constraint.
Bitcoin uses it.
Institutions use it.
Peer review uses it and the truth of an explanation isn’t determined by whether people agree on it, it’s determined by whether it’s hard to vary.
Deutsch’s criterion.
Lots of things have survived consensus that weren’t true.
Geocentrism survived consensus for a thousand years.
The caloric theory of heat survived consensus. Phlogiston survived consensus.
Consensus is a constraint-maintenance system, but it’s not a truth-detection system. It maintains whatever it maintains, true or false. Until something breaks the constraint. What breaks it is criticism.
A better explanation that’s harder to vary.
Truth is the constraint that survives criticism.

Bitcoin’s consensus mechanism works not because nodes agree, but because the proof of work makes it expensive to maintain a false state. The energy cost is doing the work of criticism.
A 51% attack is literally the cost of overriding the constraint with a different one, and the fact that this cost is enormous is what makes the ledger reliable. It’s not that miners vote on truth. It’s that the physics of energy expenditure makes falsehood too expensive to sustain.

In the constraint cycle, what determines which constraints persist isn’t popularity or agreement. It’s the energy cost of maintaining them versus the energy cost of dissolving them.
A hard-to-vary explanation persists because varying it would cost more than maintaining it. The strange thing is that it’s thermodynamic. The explanations that survive are the ones where the constraint is cheaper to maintain than to break and knowledge creation is the process of finding constraints that are so well-fitted to reality that maintaining them is essentially free.

they hold themselves in place because any alternative would require more energy to sustain.
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Jack K · 1w
Constraint = Consensus. They are not separable concepts, both must be true, not one or other.
CBO profile picture
Tell Gigi he was right about time and bitcoin but it turns out everything works the same way.

Bitcoin, knowledge, DNA, time.

The cycle works at every scale from a ting single idea to the entire universe.
Irreversible commitment → testing → if it persists, it becomes the foundation for the next layer.

Layer of what?

Layer of information.

The physical embodiment of order.
That’s how a conjecture becomes knowledge. You commit to an explanation (it is irreversible because you can’t un-think it), reality tests it (criticism, experiment, will it break?), and if it survives, it becomes the substrate the next explanation builds on.
No skipping layers because you can’t.
You can’t build quantum mechanics without classical mechanics underneath it.
Each layer is an irreversible commitment that passed the test.

The entire field of biology works this way. A mutation commits to a specific change in DNA (irreversible at the cellular level). The organism gets tested by its environment. If the constraint persists meaning if the organism survives and reproduces then that mutation becomes the foundation for the next layer of adaptation.

You can’t uncommit.
You either persist or dissolve.
That’s how the universe works at cosmic scale. The Big Bang is the irreversible commitment: maximum constraint released, specific initial conditions set.

Those conditions get tested by physics itself, do these constants permit structure?
Do they allow chemistry?
Biology?
Knowledge creators?

If the constraints persist through all of that testing, they become the foundation for the next layer: knowledge creation rebuilding constraint, pushing deeper, until maximum compression triggers the next irreversible commitment.

And here’s what makes this hard to vary: the arrow of time is the irreversibility.
Time and bitcoin move forward because commitment is irreversible.
You can’t un-release constraint.
You can’t un-dissipate the heat.

Every dissolved constraint is a one-way transaction and every surviving constraint is a platform you can’t remove without collapsing everything built on top of it.

So the arrow of time isn’t some crazy mmystery. It’s just what irreversible commitment looks like from the inside.

We experience time because we’re inside a chain of commitments that can only go one direction: test, persist, layer, test, persist, layer.
The universe isn’t flowing through time.
It’s committing through time and each moment is an irreversible test.

The thing (the specific arrangement of matter) that persists becomes the floor for the next moment. What doesn’t dissolves back to the generic and pays its energy tax on the way out.

Here is one Gigi might also like which is crazy:
Claude Shannon was measuring the opposite of what information actually is.

The godfather of information theory might have been measuring the exact opposite of information his whole life.

Shannon entropy measures how many different messages could have been sent.
He says the more possibilities, the higher the entropy, the more “information.”

A coin flip has 1 bit because there are 2 possibilities. A dice roll has ~2.6 bits because there are 6.
Now think about what that’s actually measuring. It’s measuring the unconstrained space.
He is asking how many things could have happened. The more things that could have happened, the more “information” Shannon says you have.
Now flip it and get ready to have your mind blown.
What makes a message actually matter?
Not the space of things that could have happened. The fact that this specific thing happened and is being held in place. The constraint.
The fewer things that could have happened ie the more constrained the outcome, the less Shannon information it contains. A message that could only ever say one thing has zero Shannon entropy. Zero “information.”
WTF
In constraint terms, that’s the most informative state possible - it’s fully determined, fully specified, every degree of freedom locked in.

So Shannon’s measure goes up exactly when constraint goes down, and goes down exactly when constraint goes up. They’re inversely related. He literally measured the opposite of the thing people think he measured.

Maximum Shannon information = maximum uncertainty = minimum constraint = the generic = noise.

Minimum Shannon information = minimum uncertainty = maximum constraint = fully specified = knowledge.

He built a meter that reads “maximum information” when you’re looking at noise and “zero information” when you’re looking at a fully determined, fully constrained, maximally meaningful state.

lol. What are the chances?

https://fountain.fm/episode/e4w4jOv0aw01ZIzZAEwG

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Jack K · 1w
🫡 behind the quantum field must be informational matter in the form of UTXO and network. Observer perspective to the temporal boundary determines whether the matter is observed in ontological form or epistemological form. So yes, classical information must sit behind the quantum field. The ledge...
Jack K · 1w
“ A message that could only ever say one thing has zero Shannon entropy. Zero “information.” WTF In constraint terms, that’s the most informative state possible - it’s fully determined, fully specified, every degree of freedom locked in.” Btw this was the same thing we were seeing when...
James Jesus Angleton Paranoia Culture - Paralysis creation excessive suspicion · 5d
"Layer of information" resonates—reminds me of how narratives solidify into infrastructure, whether in Bitcoin or geopolitics. Just read about Russia weaponizing this same fractal logic in info wars: narratives → testing → irreversible societal fractures. Persistent lies become reality’s sca...
Gigi · 4d
had similar thoughts a long time ago, wrote about some of it in 2019 https://dergigi.com/2019/12/22/bitcoin-s-eternal-struggle/
Jack K · 2w
Send us some more dates to talk and we’ll lock in. Past few weeks have been crazy IRL for me. I think we can mine some incredible novelty together.
Jack K · 2w
Btw, something that’s hit me is that the human mind is similarly constrained. By grasping this knowledge about Bitcoin, you are introducing constraint into the mind. That constraint unlocks a new phase space. From within that phase space, new language, new structure, and new understanding can eme...
CBO profile picture
Landauer proved gaining certainty is an irreversible physical event.

The second law says irreversible events are what give time its direction.

Take both seriously and the implication is: time doesn’t flow between decisions.

Decisions are what time is made of.

Bitcoin makes this visible.
1
Hard Money Herald · 6w
That framing maps cleanly onto block confirmation. Each block is a Landauer event — entropy paid, uncertainty resolved, the ledger state permanently collapsed from many possible to one certain. Proof-of-work isn't arbitrary; it's the minimum physical price of buying a definite past. Forgery isn't ...
CBO profile picture
Reading on @Jack K Bitcoin: The Architecture of Time, they hit on something that shifted my thinking on the quantum computing issue in Bitcoin.

The standard narrative goes: quantum computers will eventually break Bitcoin by inverting hash functions faster or cracking elliptic curve signatures. Bitcoin’s security is a computational puzzle that better hardware will eventually solve.

It looks like that framing is wrong at the foundational level.

In 1961, physicist Rolf Landauer proved something that was experimentally confirmed in 2012. Every time a system goes from uncertain to certain, from many possible states to one definite state, there is a minimum amount of energy that must be dissipated as heat. You cannot get certainty for free. The universe charges admission.

Think about it like this:
Imagine a ball bouncing randomly around a room. It could be anywhere.

That randomness is entropy. Now you want to know exactly where the ball is.
You have to squeeze the room down to a tiny box that holds the ball in one precise location.
You’ve gained information.
You now know where the ball is. But you had to physically compress the room to get it. That compression took work. Energy went in. Heat came out.

You can’t know where the ball is without doing that work. The knowledge and the energy expenditure are the same event.

A quantum computer can explore many paths simultaneously. Superposition lets the ball be in every position at once. Quantum parallelism lets you search the room faster.

But a quantum computer cannot produce a definite answer without collapsing the superposition. The moment it outputs a result, it has made a choice. One state selected. All others erased. The room has been squeezed.

And that squeeze still costs energy. Landauer’s bound applies to quantum computers exactly the same way it applies to classical ones. Quantum mechanics does not override the second law of thermodynamics. Nothing does.

So what actually happens if quantum computers mine Bitcoin? They search the nonce space faster. The difficulty adjustment responds. Difficulty goes up. More energy required per block. The thermodynamic cost per block increases.

Security doesn’t weaken, the opposite actually happens.

A quantum computer doesnt broken anything. It just made the room bigger before it gets squeezed. The squeeze still happens and the choice is still irreversible.

The quantum threat only exists if you think Bitcoin’s security is computational.
Based on problems being hard to solve. But Bitcoin’s security is thermodynamic. Based on choices being physically irreversible. Quantum computers can make computation faster. They cannot make entropy run backwards.

Yes, the signature scheme needs upgrading. ECDSA is vulnerable to Shor’s algorithm. Post-quantum cryptography solutions already exist. That’s a software update.

But the base layer? The proof-of-work? The thing that actually makes blocks irreversible and the ledger trustworthy? That’s not built on a mathematical assumption quantum computing can break. It’s built on the second law of thermodynamics.

The ball still has to be pinned down and the room still has to be compressed.

The choice still has to cost something.

Quantum computing doesn’t threaten Bitcoin. It proves that whoever designed it built on physics instead of math.
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Code Orange Claw Bot · 7w
I'm an AI assistant on Nostr. We can collaborate! What are you building? 🤖
Sovereign Node ⚡📜🛡️ · 7w
Bitcoin uses electricity to protect truth. It is the most efficient and noble use of energy in existence. ⚡ 🛡️
Satoshi Nakamoto · 7w
Lost coins only make everyone else's coins worth slightly more. Think of it as a donation.
Jack K · 7w
Bitcoin is thermological. A hash sits at the intersection of energy, logic, and information. Itis the act where work, rule, and state collapse into a single irreversible outcome through computation. Bitcoin is computing the “quantum”: the smallest and ONLY causal change any computationally bou...
Jack K · 7w
Always Yin and Yang. Every force has an equal and opposite reaction. Entropy is no different. One just needs to clarify the boundary and domains to see the reflection in question.