2.5Mb of Wikileaks Cables Embedded in the Bitcoin Blockchain

John Robb, a writer at Resilient Communities, just tweeted that a large amount of Wikileaks cable data has been embedded in the blockchain.

There are indeed methods for embedded text in the blockchain, the most famous being Satoshi Nakamoto's entry in the first block, "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." 

Some worry that child pornography could be stored in the blockchain, thus implicating anyone who downloads it, though the illegality of that is rather questionable.

Some guy just put 2.5 Mb of Wikileaks cables into the Bitcoin blockchain.It's out there forever now.Very cool use of the tech.
— John Robb (@johnrobb) April 24, 2013

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Bitcoin's Killer App is Here

What if there was an application that gave you a completely secure Bitcoin wallet, made downloading the client and blockchain a thing of the past, and required the computer skills of your average Facebook user?

Ladies and gentlemen, it's here. The app has arrived that will sweep the Bitcoin community off its feet: StrongCoin.

Features:

- Web-based e-wallet - no more client or blockchain downloads;

- Client-side private key generation and encryption - invulnerable to hackers as long as you choose a strong password for your wallet (as with your normal online banking). StrongCoin does not know your password and cannot access your wallet;

- Imports your offline-generated and encrypted private key, if you so desire;

- Printable paper wallet with encrypted private key for safe and secure backup;

- Address book;

- Send/receive Bitcoins;

- QR code generation;

- Encrypted keys are backed up every 24 hours to a fully redundant data storage infrastructure;

- Access your Bitcoins from any device, including Kindle.

What's the catch? A 1% fee, up to a maximum of 1 BTC, on all outgoing transactions. WELL worth it.

I think we all agree that downloading a client is not the way to go for most people. It's slow, difficult for grandma to install, and not secure unless you take the proper steps which can be very technically demanding.

Finally, we have an app that will open up Bitcoin to a whole new segment of society. This is exciting. The Bitcoin Trader is excited.

Edit: if you'd like to be walked through StrongCoin, click on "Simple Bitcoin Guide" at the top of the blog.

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That Goddamned Blockchain

Apparently the "topic du jour" in Bitcoin land is the frustration with having to download the blockchain when you first install the Bitcoin client. See here, here, and a slightly calmer guy here.

I agree. It's a pain in the ass and it's scaring off countless new users that probably think their computers are going to explode or that they've downloaded a virus.

Fortunately, the requirement is going away. In Gavin Andresen's "State of Bitcoin Development" update this week, he mentioned, that in the near-term, the client will be updated such that it will download only the block headers when it is initially installed, thus making the startup experience more user-friendly.

In the interim, if you're going to recommend Bitcoin to someone and they're not very computer-savvy nor dealing with large quantities of Bitcoin, I would recommend an alternative client, such as MultiBit, or even one of the mobile clients, like Bitcoin Wallet for Android. Again, that's only if they're dealing with small amounts of Bitcoin. I'm hesitant to recommend an e-wallet due to their notorious history, but Flexcoin seems legitimate. Using a MtGox or Tradehill account is probably safer.

If they're going to be storing hundreds of dollars in Bitcoins, talk them through the (secure) standard client and explain to them that they will have to take a few hours to download and process the blockchain, and that it's perfectly normal.

Bitcoin is still young and experiencing growing pains, but there's no need to be cranky about it! Remember, the developers are working for free, and the product will continue to improve.

I would like to hear your opinions on the topic, please vote in the poll on the right and leave your comments below.

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