Bitcoin: Innovation Hiding in Plain Sight

European Straits #53

Dear all,

Bruno Le Maire, the French Minister of the Economy, just announced a fund of 10 billion euros intended to finance “disruptive innovations”—a promise made last year by Emmanuel Macron.

For those observing from afar, it would seem that France is ready to get things turned around. But really, the signal that Le Maire is sending isn’t so clear. In a remark on cryptocurrencies, in particular, he effectively denounced the speculation surrounding Bitcoin, noting his preference for “stability”. How, exactly, does one promote stability at a press conference dedicated to disruptive innovations?

To understand cryptocurrencies, we must look back to the origins of the Internet. A key component in its infrastructure are the network protocols, which are to the Internet what the highway code is to driving. HTTP (access to information), TCP/IP (routing of information), and SSL (encryption) bring together the rules that allow us to connect networks at a global scale.

All of these protocols are no…