#HCPP17 - Interview with Adam Back (Blockstream) with Tone Vays & Thomas Hunt

## #HCPP17 - Interview with Adam Back (Blockstream) - Summary

This episode of the Human Capitalist Podcast (#HCPP17) features an interview with Adam Back, CEO of Blockstream, alongside Tone Vays and Thomas Hunt. The conversation delves into the technical aspects of Bitcoin development, focusing on the Lightning Network, Blockstream Satellites, and the evolution of Bitcoin's consensus mechanisms. The discussion highlights the power of user action in shaping Bitcoin's future and explores innovative solutions for scaling and accessibility. Adam Back shares his optimistic view on the future of Bitcoin, emphasizing the importance of continued development and adoption.

Main Topics Discussed:

• User-Activated Software (UAS) and SegWit: The podcast revisits the UAS movement and the activation of SegWit, a crucial Bitcoin protocol upgrade. The discussion highlights the risks involved and the ultimate success of user action in defining Bitcoin’s consensus rules.
• Lightning Network: A significant portion of the conversation centers on the Lightning Network, a layer-2 scaling solution. Topics included potential use cases (like payments at Starbucks), the concept of "recirculation" of funds within Lightning channels, and concerns regarding anonymity.
• Miner Behavior & Network Consensus: Early attempts by miners to manipulate block rewards were discussed, emphasizing the importance of network consensus and the potential consequences of unilateral rule changes.
• Lightning vs. On-Chain Transactions: The dynamic between Lightning and on-chain transactions was explored, with the possibility of miners accepting lower on-chain fees to encourage increased overall network usage.
• Blockstream Satellites: The podcast details Blockstream's satellite program, which provides a low-cost, passive way to access the Bitcoin network using commercial satellites. The goal is full global coverage by the end of the year, enabling users to run full nodes even with limited internet connectivity.
• Liquid Sidechain: Adam Back briefly introduced Blockstream’s Liquid sidechain project and its integration with Bitcoin.
• Wallet Integration Challenges: The difficulty some wallets face integrating SegWit, a prerequisite for Lightning integration, was noted.
• Full Node Ownership & Privacy: The satellite program promotes full node ownership and enhances privacy by providing a passive connection, preventing peers from seeing a user's address.

Key Quotes:

• "It was risky. Bit 148 and the user activated software movement was risky." - Adam Back
• "One on-chain transaction can pay, sort of pre-pay for hundreds of off-chain transactions." - Adam Back, on the potential of Lightning Network.
• "It's completely passive. So, you can be receiving a Bitcoin feed of blocks without anybody seeing your notes on your peer address on the pitch pin out." - Adam Back, describing the privacy benefits of Blockstream Satellites.

People Mentioned:

• Adam Back (CEO of Blockstream, inventor of Hashcash)
• Tone Vays (Podcast Host)
• Thomas Hunt (Podcast Host)
• Seigwood
• Brinkman
• Tim McIntyre (Software developer in West Africa)

Bitcoin Price Mentioned:

• Under $10,000 (suggested amount for Lightning Network spending)