A Cypherpunk's Manifesto
by Eric Hughes
Privacy is necessary for an open society in the electronic age. Privacy is not secrecy. A private matter is something one doesn't want the whole world to know, but a secret matter is something one doesn't want anybody to know. Privacy is the power to selectively reveal oneself to the world.
If two parties have a transaction, they have memories of it. Each can speak about their memory of it; how could anyone prevent it? Laws against speaking of it? Unenforceable for the most part. The only way private matters can be kept private is by the parties involved not revealing them.
We don't much care if you don't approve of the software we write. We know that software can't be destroyed and that a widely dispersed system can't be shut down.
Bitcoin: A Peer-to-Peer Electronic Cash System
by Satoshi Nakamoto
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network.
The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power.
The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes.
The Sovereign Individual
by James Dale Davidson and Lord William Rees-Mogg (Summary)
The central argument is that the shift from an industrial to an information-based society will fundamentally dismantle the power of the nation-state. This is because governments' power is largely based on their ability to control territory and impose taxes, which becomes increasingly difficult when commerce, assets, and individuals move into the borderless realm of cyberspace.
A "sovereign individual" is a person who can operate independently of traditional government structures. By leveraging technology, these individuals can earn high incomes, manage their wealth globally, and choose their jurisdictions, effectively becoming "customers" of governments rather than subjects.
A key prediction is the growth of a "cybereconomy" existing beyond the regulatory reach of any single government. This includes the rise of digital currencies (presciently similar to cryptocurrencies like Bitcoin) that are private, encrypted, and operate outside the control of central banks.