Reotardo Derpinci

₿ 2013

[Reotardo Derpinci @derpinci]

https://t.co/Wi8BmHJAwM

[Reotardo Derpinci @derpinci]

👏
TL;DR

• Core Thesis
Zcash fixes Bitcoin’s transparency flaw by using zero-knowledge proofs (zk-SNARKs) to enable fully private, verifiable transactions. Sender, recipient, and amount are encrypted; validity is proven without revealing them. Privacy is mathematically enforced, not assumed.

• Zcash in 5 Points
1. Bitcoin = Transparent. Pseudonymous, but all transactions and balances are public. Surveillance-friendly.
2. Zcash = Encrypted. Uses shielded transactions to hide transaction data; zk-SNARKs prove validity.
3. Notes ≈ Encrypted UTXOs. Notes are committed to a Merkle tree. Nullifiers prevent double-spending.
4. Privacy is absolute. No partial leaks. Ledger indistinguishability means no observable links.
5. Tech works. Nine years of iteration: Sprout → Sapling → Orchard (no trusted setup, uses Halo 2). Tachyon incoming (scalable, mobile-ready).

• Key Features
* Shielded pool: Private-by-default. Uses Orchard (zk-SNARKs + no trusted setup).
* Transparent pool: Exists for compatibility. Doesn’t weaken privacy.
* Commitments: Hide note data. Added to Merkle tree.
* Nullifiers: Reveal note is spent, but unlinkable.
* zk-SNARKs: Small proofs (~1.5KB), fast to verify. Prove note exists + ownership + value balance.
* Encryption > Obfuscation: Hides data entirely, not partially.

• Philosophy
* Privacy ≠ secrecy. It’s about autonomy.
* Transparency enables surveillance, not freedom.
* Partial privacy fails (leaks compound). Only encryption holds.
* Surveillance money vs. freedom money: CBDCs and transparent chains enforce control. Zcash defends financial sovereignty.

• Comparisons
* Monero: Uses decoys (ring signatures). Privacy is probabilistic, breakable. Zcash is stronger.
* Mixers (e.g. Tornado): Only obfuscate. Linkable via timing/amount. Zcash is private by default.
* Privacy Pools: Require proving innocence. Zcash doesn't.
* Aztec / L2s: Focus on private programmability. Zcash focuses on private money.

• Protocol History
* Sprout (2016): First zk-SNARKs. Heavy, trusted setup.
* Sapling (2018): Lighter, mobile-ready. Still trusted setup.
* Orchard (2022): No trusted setup. Uses Halo 2.
* Today: Orchard default. Transparent use optional.

• Economics
* 21M ZEC cap, like BTC.
* Dev Fund: 20% of block reward to core teams. Community-voted.
* Turnstiles: Track transparent ↔ shielded ZEC movement to detect inflation.
* NSM: Burn-and-reissue model for long-term miner rewards without inflation.

• Future
* Tachyon: Oblivious syncing, scalable wallet performance, recursive proofs.
* Quantum resistance: Built-in protections already. More upgrades coming.
* Governance: Decentralized. ECC, ZFND, Shielded Labs, Tachyon all contribute.

• Conclusion
Zcash is private money that works. It protects users from surveillance, scales via Tachyon, resists quantum threats, and enforces rules via math—not institutions.

Zcash is how money stays free.

[Reotardo Derpinci @derpinci]

@CryptoHayes Yes.
https://t.co/P1PBRmOuSC

[Reotardo Derpinci @derpinci]

https://t.co/JDgbdJB3of

[Reotardo Derpinci @derpinci]

https://t.co/JDgbdJB3of

[Reotardo Derpinci @derpinci]

@rainbowdotme Which year?

[Reotardo Derpinci @derpinci]

TL;DR ADHD Pro Max edition:

• Govs spend via taxes (unpopular) or debt (preferred).
• US runs ~$2T deficits, funded by ~$2T debt issuance.
• Foreign central banks retreat post-2022 (sanctions risk); not marginal buyers.
• US private sector savings < deficit; not marginal buyer.
• Big banks buy ~$300B; not enough.
• RV hedge funds are marginal buyers; use leveraged cash/futures arbitrage.
• RV funds finance via repo, needing stable overnight funding.
• Repo funding depends on cash from MMFs & banks.
• MMFs depleted RRP; now prefer T-bills.
• Banks’ reserves shrinking from QT; less repo cash available.
• Repo stress = SOFR > Upper Fed Funds.
• Fed backstops via SRF, supplying cash against Treasuries at Upper Fed Funds.
• SRF usage = stealth QE (money creation via lending, not asset purchase).
• Result: Treasury issuance → RV fund repo → SRF → Fed balance sheet ↑ → $ supply ↑ → Bitcoin ↑.
• Stealth QE to accelerate as debt rolls/refis rise.
• Near-term: liquidity drain (TGA high), market chop, misread weakness = BTC opportunity.

[Reotardo Derpinci @derpinci]

@mert @R89Capital They literally invented Travelers Cheques

[Reotardo Derpinci @derpinci]

@silentdao_ @StargateFinance Is it slow because your entire team walked out?

[Reotardo Derpinci @derpinci]

@ecb lads, Polymarket on EU still existing in 2029?

[Reotardo Derpinci @derpinci]

TL;DR for the attention starved...

Author (ERC-8004 lead, Ethereum Foundation) explores agentic payments—agents transacting on behalf of users—via crypto rails and programmable infrastructure.

Context: ChatGPT + Stripe lets users buy in-chat. Centralized; not composable. Signals shift: agents transact, not users.

Trends:
1. Agents transact for humans.
2. Payments shift to crypto (stablecoins).
3. AI + blockchains intersect via high-frequency, low-value, conditional transactions (3V3C).

Use Cases
1. Human → Agent
• AI chats become storefronts (e.g., Stripe’s Instant Checkout).
• Agents optimize purchasing, subscriptions, and logistics.
• Crypto key for global B2B transactions (e.g., stablecoins > SWIFT).

2. Agent → Agent
• M2M microtransactions (e.g., $0.003 per API call).
• Agents need budget rules, prepaid credits, instant settle.
• Agents can hire humans globally (e.g., micro-influencers, data annotators).
• ERC-8004 = agent registry & coordination; supports auction + eval + settlement layers.

3. Agent → Web
• Agents crawl, consume, and transact.
• Pay-per-crawl: agents pay sites for access (e.g., Cloudflare, NET Dollar).
• Web becomes metered: pay-per-API, chart, paragraph, service.

Infrastructure Needs
• Wallets: Policy-based, programmable (no seed phrase).
• Rails: Fast, stablecoin-native chains (e.g., Stripe’s Tempo, Circle’s L1).
• Standards: ERC-8004 (agent trust/identity), x402 (frictionless payments).

Challenges
• Regulatory drag: Payments = heavily regulated.
• Half-autonomy: Most agents today = glorified workflows.
• Adoption: Needs infra + enterprise integration.

Conclusion
Agentic commerce is coming. Agents will discover, negotiate, and settle autonomously. Stablecoins + programmable infrastructure = key. Agents = crypto’s wedge into mainstream payments.

"Commerce stops being a thing you do, and becomes something that just happens."

[Reotardo Derpinci @derpinci]

@ThorTorrens Yes. Otherwise it’s wide open for fucking Roger fucking Ver to get all jazz-hands about privacy

[Reotardo Derpinci @derpinci]

@CryptoHayes Someone wanna check on @TylerDurden ?

[Reotardo Derpinci @derpinci]

@carlmoon The plating-up needs a little more

[Reotardo Derpinci @derpinci]

@BarrySilbert @mert @ssaintleger Are you still selling $ETC when it’s at parity with $ETH?

[Reotardo Derpinci @derpinci]

@yoshi_v1 @ThorTorrens The what now?

[Reotardo Derpinci @derpinci]

'member the honey badger of money? Reotardo 'members 👴
#BTC #Bitcoin

[Reotardo Derpinci @derpinci]

@thefrankbraun @coryswan @naval Was that the one on Brick Lane where Cody Wilson chatted about 3D printing guns? Good times

[Reotardo Derpinci @derpinci]

@mert Portfolio to 6969% if you switch to Vietnamese DragonBalls https://t.co/3O5p7pJQT2

[Reotardo Derpinci @derpinci]

The next reserve asset is privacy.

[Reotardo Derpinci @derpinci]

The new Dual Mandate::

Stablecoins = Dollar Infrastructure 2.0.

Privately issued. Publicly surveilled.

Dollar denominated and policy aligned, minted not printed.

The United States of AmerEther.

🧵👇

[Reotardo Derpinci @derpinci]

Containment, not extinction. Integration through opposition.

The empire survives by tolerating its mirror.