asic bitcoin miner wikipedia Asic bitcoin miner, Bitcoin ...

Primecoin

Discussion about Primecoin and its infra. Primecoin is a very innovative cryptocurrency, being the 1st non Hash-Cash PoW crypto, naturally scarce (not artificially), with very fast confirmations (1min), elastic readjusting reward & a useful mining (byproducts are primes). Primecoin is sustainable (miners are guaranteed to have revenues), and decentralized (ASIC/FPGA are not particularly advantaged). Sidechain for decentralized data applications (e.g. Storj) currently in development.
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Traditional Mining vs Green Staking: How UMI Cares for the Planet

Traditional Mining vs Green Staking: How UMI Cares for the Planet

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Cryptocurrencies are about a major contribution to the transformation of the existing financial system. They can dramatically change the world and be of great benefit to humankind. But looking for benefits mustn't do harm to the environment.
We've taken up this theme for a reason. It is indeed possible to do harm. In fact, harm is already being done. Do you want to know in what way? By traditional mining, which is necessary to maintain the Bitcoin network, and thousands of other Proof-of-Work-based cryptocurrencies.
Negative impact of traditional mining
In order to maintain the Bitcoin network or other PoW-based cryptocurrencies, miners have to solve complex computational math problems — by doing so they verify the authenticity of transactions and add valid ones to the blockchain. This process is dubbed mining and requires extensive computing resources.
The need to compete to solve a mathematical puzzle and receive a reward makes people use more and more powerful equipment. This is how new bitcoins are generated. With the cryptocurrency boom, harmless mining on computers turned into an endless race among miners. Today miners not only buy high-performance computers. Some miners create farms consisting of energy-consuming ASIC devices while others use huge plants to mine bitcoins.

A mining farm consisting of thousands of ASIC devices. Source.
As you know, intensive computing power requires elevated power expenses and leads to air pollution and a waste of natural resources. This poses a serious problem. Nowadays electric power stations, which are thermal power plants (TPP), burn fossil fuel, such as coal or natural gas, to produce electricity.
This process causes CO2 (carbon dioxide) emissions which adversely affect the biosphere — mining contributes to the greenhouse effect which heats the planet up. This consequently causes a global warming effect with its associated impacts on the environment and may pose threats to life on the planet. What is more, every minute we are breathing the same polluted air, thereby being at risk of a bunch of diseases and complications. All these factors shorten life expectancy for us and our children. Air pollution cause a great deal of premature deaths
The more carbon dioxide gets into the environment, the more harm it does. Carbon dioxide is a harmful by-product of industrial activity. The biting irony is that we use natural resources to generate these emissions, and these resources have limits too. Traditional mining significantly exacerbates the global problem and the situation has been deteriorating in recent years.
The effects of carbon footprint are already being felt
There are, undoubtedly, a lot of other factors that cause global environmental degradation, but the impact of mining should never be ignored. Bitcoin mining is estimated to produce as much carbon dioxide as that produced by industries of Estonia, Switzerland, the Czech Republic, Jordan, or Sri Lanka.
The entire bitcoin network is responsible for 22-22.9 million tons of CO2 per year — just think and try to imagine how much it is. Chinese miners represent about half (47%) of emissions. In China energy is cheap as it's produced by coal-fired thermal power plants. Once we add emissions produced by mining other cryptos, the numbers will double!

Powerful mining equipment. Source.
Two years ago, Nature Research journal published an article regarding Bitcoin emissions. It said: "We cannot predict the future of Bitcoin, but projected Bitcoin usage, should it follow the rate of adoption of other broadly adopted technologies, could alone produce enough CO2 emissions to push warming above 2 °C within less than three decades." Two years later, we can see the researchers' concerns had the ground — digital gold keeps to be mined with the same enthusiasm as well as the planet keeps to be polluted. "It [Bitcoin] alone could produce enough emissions to raise global temperatures as soon as 2033, " warn a group of researchers.
As an alternate solution, miners are encouraged to use renewable energy (wind, solar, etc.) — which can make bitcoin mining more environmentally friendly. Unfortunately, renewable energy sources account for just a small share of global energy which makes them impossible to be used widely. Moreover, in the pursuit of profit, miners don't seem particularly eager to get rid of profitable equipment which cost them a fortune.
Nonetheless, the fact that modern cryptocurrencies disapprove environment-damaging mining lets us hope for the early improvement of the situation. UMI is one of these cryptocurrencies.
UMI is a green cryptocurrency based on smart contract
Not all cryptocurrencies use computing power to generate new coins. For example, there are cryptocurrencies based on Proof-of-Stake (PoS) and Proof-of-Authority (PoA) technology. UMI is just like that.
As a substitute for mining and to incite users, UMI uses Staking Smart Contract which allows generating new coins with no energy expenses and powerful equipment. No waste of natural resources. Staking technology is perfectly safe for the planet. This is the latest technological development loop of crypto industry.

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UMI can be definitely called an environmentally friendly cryptocurrency as it has no negative impact on the environment. Today this is of greatest importance for all of us. UMI staking neither endangers human health nor harms the environment. In other words, we are protecting the planet and all the people that inhabit it. This is something we can be really proud of. Because the environment influences our health, and good health is the most important thing in life.
As a final note, we would like to say that adhering closely to their ideology, the UMI team collaborates only with environmentally conscious partners who are concerned with the protection of the natural world. This was the main reason for choosing the ROY Club as our partner. We are certain this will be productive cooperation which will make this world a better place.
Join in and invite all your friends — together we can create new UMI coins using eco-friendly staking and care for our planet!
Best regards, UMI Team!
submitted by UMITop to u/UMITop [link] [comments]

PoW or PoS: The Difference Between Mined and Non-Mined Crypto

PoW or PoS: The Difference Between Mined and Non-Mined Crypto
The whole crypto world discusses how Ethereum will switch from Proof of Work to Proof of Stake now. This change can significantly affect the cryptocurrency market. What are the positive and negative sides of PoW and PoS?
Cryptocurrencies can be divided into two types: those that can be mined (Bitcoin, Litecoin, Monero) and pre-mined ones (Ripple, Stellar, Cardano, EOS, NEO).

What is the big difference?

Although they differ in the method of generation, the basis of both types of crypto is the same: verification. Every transaction processed by the network must be verified by someone to ensure that virtual money has not been spent twice. Here we are talking about the difference in the verification process. Transaction groups are combined into a block; after verification, the block joins other previously confirmed blocks, and create a chain of transactions, or blockchain.

PoW: Mined Crypto

Mining is a process in which individuals, groups, or companies solve complex mathematical equations to verify transaction blocks using powerful computers. These math problems are part of the encryption process that protects transactions from cybercriminals and third party access.
The first who solves the problem and signs a block of transactions receives a reward. The miner, who confirmed the block of transactions e.g. in the Bitcoin network, receives a reward in BTC.

Disadvantages of Mined Crypto

  • Mining can be very expensive due to the large amounts of electricity consumed. In mined crypto with less capitalization, competition is usually lower than in BTC.
  • BTC mining requires special ASIC chips, that are combined into huge farms. Electricity is one of the main expenses for these projects. That is why China, where electricity is relatively cheap, has become a home to four of the five largest Bitcoin mining companies in the world.
  • Mining farms have to spend significant money funds on new equipment, which becomes out of date very fast.
  • Large projects need additional cooling, as servers and graphics cards heat up to high temperatures during operations.
  • The Proof-of-Work model is potentially vulnerable to a 51% attack (when a group of people with 51% of the computing power gains control of the network and its participants). For popular cryptocurrencies such as Bitcoin (BTC), Litecoin (LTC), and Monero (XMR) this is not a problem due to their large capitalization. However, minor cryptocurrencies with long block processing times and low daily volumes are risking a lot.

PoS: Non-Mined Crypto

At the other end of the spectrum are pre-mined cryptocurrencies such as Ripple (XRP), Stellar, Cardano, EOS, and NEO.
In the PoS model, super-powered computers are not needed, and participants do not compete for the right to sign the next block. Thus, the costs of this approach are significantly lower. Transaction verification is carried out by cryptocurrency owners. The more cryptocurrencies you have, the longer you own it, the higher the probability that you will be selected to check the transaction block.
Certain mechanisms are built into the system that prevents the dominance of large cryptocurrency holders over the verification process. There are many random ways to select owners who get the right to sign a transaction block. This ensures that small holders have a chance to participate in the process.

Disadvantages of Non-Mined Crypto

Despite the fact that the costs of the Proof-of-Stake method are lower, PoS has its drawbacks.
  • Such cryptocurrencies are not threatened by an attack of 51%, however, another trouble replaces it — a person who posses 51% of all tokens in circulation can gain control of the network and its participants. Of course, in the case of cryptocurrencies with high capitalization, the possibility of this scenario is low, but small partners may suffer from this vulnerability.
  • The Proof-of-Stake model also gives major owners additional votes in determining the future development of the network. Most NEO tokens) belong to several founders, for instance. This helps increase transaction speed and reduces consensus-building time, but also makes cryptocurrency too centralized. In other words, in the PoS model, large players gain significant power, which is theoretically impossible with the PoW model.

Which method is better?

Both methods have their pros and cons. Nevertheless, sooner or later, some of the largest mined currencies (e.g. BTC) will reach their token limit. At this point, they will have to switch to Proof-of-Stake. Since it significantly reduces power consumption and doesn't require powerful computers, gradually all crypto including BTC will switch to a non-mined model just like Ether did.

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submitted by CoinjoyAssistant to ethtrader [link] [comments]

Mining and Dogecoin - Some FAQs

Hey shibes,
I see a lot of posts about mining lately and questions about the core wallet and how to mine with it, so here are some facts!
Feel free to add information to that thread or correct me if I did any mistake.

You downloaded the core wallet

Great! After a decade it probably synced and now you are wondering how to get coins? Bad news: You don't get coins by running your wallet, even running it as a full node. Check what a full node is here.
Maybe you thought so, because you saw a very old screenshot of a wallet, like this (Version 1.2). This version had a "Dig" tab where you can enter your mining configuration. The current version doesn't have this anymore, probably because it doesn't make sense anymore.

You downloaded a GPU/CPU miner

Nice! You did it, even your antivirus system probably went postal and you started covering all your webcams... But here is the bad news again: Since people are using ASIC miners, you just can't compete with your CPU hardware anymore. Even with your more advanced GPU you will have a hard time. The hashrate is too high for a desktop PC to compete with them. The blocks should be mined every 1 minute (or so) and that's causing the difficulty to go up - and we are out... So definitly check what is your hashrate while you are mining, you would need about 1.5 MH/s to make 1 Doge in 24 hours!

Mining Doge

Let us start with a quote:
"Dogecoin Core 1.8 introduces AuxPoW from block 371,337. AuxPoW is a technology which enables miners to submit work done while mining other coins, as work on the Dogecoin block chain."
- langerhans
What does this mean? You could waste your hashrate only on the Dogecoin chain, probably find never a block, but when, you only receive about 10.000 Dogecoins, currently worth about $25. Or you could apply your hashrate to LTC and Doge (and probably even more) at the same time. Your change of solving the block (finding the nonce) is your hashrate divided by the hashrat in sum - and this is about the same for Doge and LTC. This means you will always want to submit your work to all chains available!

Mining solo versus pool

So let's face it - mining solo won't get you anywhere, so let's mine on a pool! If you have a really bad Hashrate, please consider that: Often you need about $1 or $2 worth of crypto to receive a payout (without fees). This means, you have to get there. With 100 MH/s on prohashing, it takes about 6 days, running 24/7 to get to that threshold. Now you can do the math... 1 MH/s = 1000 KH/s, if you are below 1 MH/s, you probably won't have fun.

Buying an ASIC

You found an old BTC USB-miner with 24 GH/s (1 GH/s = 1000 MH/s) for $80 bucks - next stop lambo!? Sorry, bad news again, this hashrate is for SHA-256! If you want to mine LTC/Doge you will need a miner using scrypt with quite lower numbers on the hashrate per second, so don't fall for that. Often when you have a big miner (= also loud), you get more Hashrate per $ spent on the miner, but most will still run on a operational loss, because the electricity is too expensive and the miners will be outdated soon again. Leading me to my next point...

Making profit

You won't make money running your miner. Just do the math: What if you would have bougth a miner 1 year ago? Substract costs for electricity and then compare to: What if you just have bought coins. In most cases you would have a greater profit by just buying coins, maybe even with a "stable" coin like Doges.

Cloud Mining

Okay, this was a lot of text and you are still on the hook? Maybe you are desperated enough to invest in some cloud mining contract... But this isn't a good idea either, because most of such contracts are scams based on a ponzi scheme. You often can spot them easy, because they guarantee way to high profits, or they fake payouts that never happened, etc.
Just a thought: If someone in a subway says to you: Give me $1 and lets meet in one year, right here and I give you $54,211,841, you wouldn't trust him and if some mining contract says they will give you 5% a day it is basically the same.
Also rember the merged mining part. Nobody would offer you to mine Doges, they would offer you to buy a hashrate for scrypt that will apply on multiple chains.

Alternative coins

Maybe try to mine a coin where you don't have ASICs yet, like Monero and exchange them to Doge. If somebody already tried this - feel free to add your thoughts!

Folding at Home (Doge)

Some people say folding at home (FAH - https://www.dogecoinfah.com/) still the best. I just installed the tool and it says I would make 69.852 points a day, running on medium power what equates to 8 Doges. It is easy, it was fun, but it isn't much.
Thanks for reading
_nformant
submitted by _nformant to dogecoin [link] [comments]

Bitcoin (BTC)A Peer-to-Peer Electronic Cash System.

Bitcoin (BTC)A Peer-to-Peer Electronic Cash System.
  • Bitcoin (BTC) is a peer-to-peer cryptocurrency that aims to function as a means of exchange that is independent of any central authority. BTC can be transferred electronically in a secure, verifiable, and immutable way.
  • Launched in 2009, BTC is the first virtual currency to solve the double-spending issue by timestamping transactions before broadcasting them to all of the nodes in the Bitcoin network. The Bitcoin Protocol offered a solution to the Byzantine Generals’ Problem with a blockchain network structure, a notion first created by Stuart Haber and W. Scott Stornetta in 1991.
  • Bitcoin’s whitepaper was published pseudonymously in 2008 by an individual, or a group, with the pseudonym “Satoshi Nakamoto”, whose underlying identity has still not been verified.
  • The Bitcoin protocol uses an SHA-256d-based Proof-of-Work (PoW) algorithm to reach network consensus. Its network has a target block time of 10 minutes and a maximum supply of 21 million tokens, with a decaying token emission rate. To prevent fluctuation of the block time, the network’s block difficulty is re-adjusted through an algorithm based on the past 2016 block times.
  • With a block size limit capped at 1 megabyte, the Bitcoin Protocol has supported both the Lightning Network, a second-layer infrastructure for payment channels, and Segregated Witness, a soft-fork to increase the number of transactions on a block, as solutions to network scalability.

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1. What is Bitcoin (BTC)?

  • Bitcoin is a peer-to-peer cryptocurrency that aims to function as a means of exchange and is independent of any central authority. Bitcoins are transferred electronically in a secure, verifiable, and immutable way.
  • Network validators, whom are often referred to as miners, participate in the SHA-256d-based Proof-of-Work consensus mechanism to determine the next global state of the blockchain.
  • The Bitcoin protocol has a target block time of 10 minutes, and a maximum supply of 21 million tokens. The only way new bitcoins can be produced is when a block producer generates a new valid block.
  • The protocol has a token emission rate that halves every 210,000 blocks, or approximately every 4 years.
  • Unlike public blockchain infrastructures supporting the development of decentralized applications (Ethereum), the Bitcoin protocol is primarily used only for payments, and has only very limited support for smart contract-like functionalities (Bitcoin “Script” is mostly used to create certain conditions before bitcoins are used to be spent).

2. Bitcoin’s core features

For a more beginner’s introduction to Bitcoin, please visit Binance Academy’s guide to Bitcoin.

Unspent Transaction Output (UTXO) model

A UTXO transaction works like cash payment between two parties: Alice gives money to Bob and receives change (i.e., unspent amount). In comparison, blockchains like Ethereum rely on the account model.
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Nakamoto consensus

In the Bitcoin network, anyone can join the network and become a bookkeeping service provider i.e., a validator. All validators are allowed in the race to become the block producer for the next block, yet only the first to complete a computationally heavy task will win. This feature is called Proof of Work (PoW).
The probability of any single validator to finish the task first is equal to the percentage of the total network computation power, or hash power, the validator has. For instance, a validator with 5% of the total network computation power will have a 5% chance of completing the task first, and therefore becoming the next block producer.
Since anyone can join the race, competition is prone to increase. In the early days, Bitcoin mining was mostly done by personal computer CPUs.
As of today, Bitcoin validators, or miners, have opted for dedicated and more powerful devices such as machines based on Application-Specific Integrated Circuit (“ASIC”).
Proof of Work secures the network as block producers must have spent resources external to the network (i.e., money to pay electricity), and can provide proof to other participants that they did so.
With various miners competing for block rewards, it becomes difficult for one single malicious party to gain network majority (defined as more than 51% of the network’s hash power in the Nakamoto consensus mechanism). The ability to rearrange transactions via 51% attacks indicates another feature of the Nakamoto consensus: the finality of transactions is only probabilistic.
Once a block is produced, it is then propagated by the block producer to all other validators to check on the validity of all transactions in that block. The block producer will receive rewards in the network’s native currency (i.e., bitcoin) as all validators approve the block and update their ledgers.

The blockchain

Block production

The Bitcoin protocol utilizes the Merkle tree data structure in order to organize hashes of numerous individual transactions into each block. This concept is named after Ralph Merkle, who patented it in 1979.
With the use of a Merkle tree, though each block might contain thousands of transactions, it will have the ability to combine all of their hashes and condense them into one, allowing efficient and secure verification of this group of transactions. This single hash called is a Merkle root, which is stored in the Block Header of a block. The Block Header also stores other meta information of a block, such as a hash of the previous Block Header, which enables blocks to be associated in a chain-like structure (hence the name “blockchain”).
An illustration of block production in the Bitcoin Protocol is demonstrated below.

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Block time and mining difficulty

Block time is the period required to create the next block in a network. As mentioned above, the node who solves the computationally intensive task will be allowed to produce the next block. Therefore, block time is directly correlated to the amount of time it takes for a node to find a solution to the task. The Bitcoin protocol sets a target block time of 10 minutes, and attempts to achieve this by introducing a variable named mining difficulty.
Mining difficulty refers to how difficult it is for the node to solve the computationally intensive task. If the network sets a high difficulty for the task, while miners have low computational power, which is often referred to as “hashrate”, it would statistically take longer for the nodes to get an answer for the task. If the difficulty is low, but miners have rather strong computational power, statistically, some nodes will be able to solve the task quickly.
Therefore, the 10 minute target block time is achieved by constantly and automatically adjusting the mining difficulty according to how much computational power there is amongst the nodes. The average block time of the network is evaluated after a certain number of blocks, and if it is greater than the expected block time, the difficulty level will decrease; if it is less than the expected block time, the difficulty level will increase.

What are orphan blocks?

In a PoW blockchain network, if the block time is too low, it would increase the likelihood of nodes producingorphan blocks, for which they would receive no reward. Orphan blocks are produced by nodes who solved the task but did not broadcast their results to the whole network the quickest due to network latency.
It takes time for a message to travel through a network, and it is entirely possible for 2 nodes to complete the task and start to broadcast their results to the network at roughly the same time, while one’s messages are received by all other nodes earlier as the node has low latency.
Imagine there is a network latency of 1 minute and a target block time of 2 minutes. A node could solve the task in around 1 minute but his message would take 1 minute to reach the rest of the nodes that are still working on the solution. While his message travels through the network, all the work done by all other nodes during that 1 minute, even if these nodes also complete the task, would go to waste. In this case, 50% of the computational power contributed to the network is wasted.
The percentage of wasted computational power would proportionally decrease if the mining difficulty were higher, as it would statistically take longer for miners to complete the task. In other words, if the mining difficulty, and therefore targeted block time is low, miners with powerful and often centralized mining facilities would get a higher chance of becoming the block producer, while the participation of weaker miners would become in vain. This introduces possible centralization and weakens the overall security of the network.
However, given a limited amount of transactions that can be stored in a block, making the block time too longwould decrease the number of transactions the network can process per second, negatively affecting network scalability.

3. Bitcoin’s additional features

Segregated Witness (SegWit)

Segregated Witness, often abbreviated as SegWit, is a protocol upgrade proposal that went live in August 2017.
SegWit separates witness signatures from transaction-related data. Witness signatures in legacy Bitcoin blocks often take more than 50% of the block size. By removing witness signatures from the transaction block, this protocol upgrade effectively increases the number of transactions that can be stored in a single block, enabling the network to handle more transactions per second. As a result, SegWit increases the scalability of Nakamoto consensus-based blockchain networks like Bitcoin and Litecoin.
SegWit also makes transactions cheaper. Since transaction fees are derived from how much data is being processed by the block producer, the more transactions that can be stored in a 1MB block, the cheaper individual transactions become.
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The legacy Bitcoin block has a block size limit of 1 megabyte, and any change on the block size would require a network hard-fork. On August 1st 2017, the first hard-fork occurred, leading to the creation of Bitcoin Cash (“BCH”), which introduced an 8 megabyte block size limit.
Conversely, Segregated Witness was a soft-fork: it never changed the transaction block size limit of the network. Instead, it added an extended block with an upper limit of 3 megabytes, which contains solely witness signatures, to the 1 megabyte block that contains only transaction data. This new block type can be processed even by nodes that have not completed the SegWit protocol upgrade.
Furthermore, the separation of witness signatures from transaction data solves the malleability issue with the original Bitcoin protocol. Without Segregated Witness, these signatures could be altered before the block is validated by miners. Indeed, alterations can be done in such a way that if the system does a mathematical check, the signature would still be valid. However, since the values in the signature are changed, the two signatures would create vastly different hash values.
For instance, if a witness signature states “6,” it has a mathematical value of 6, and would create a hash value of 12345. However, if the witness signature were changed to “06”, it would maintain a mathematical value of 6 while creating a (faulty) hash value of 67890.
Since the mathematical values are the same, the altered signature remains a valid signature. This would create a bookkeeping issue, as transactions in Nakamoto consensus-based blockchain networks are documented with these hash values, or transaction IDs. Effectively, one can alter a transaction ID to a new one, and the new ID can still be valid.
This can create many issues, as illustrated in the below example:
  1. Alice sends Bob 1 BTC, and Bob sends Merchant Carol this 1 BTC for some goods.
  2. Bob sends Carols this 1 BTC, while the transaction from Alice to Bob is not yet validated. Carol sees this incoming transaction of 1 BTC to him, and immediately ships goods to B.
  3. At the moment, the transaction from Alice to Bob is still not confirmed by the network, and Bob can change the witness signature, therefore changing this transaction ID from 12345 to 67890.
  4. Now Carol will not receive his 1 BTC, as the network looks for transaction 12345 to ensure that Bob’s wallet balance is valid.
  5. As this particular transaction ID changed from 12345 to 67890, the transaction from Bob to Carol will fail, and Bob will get his goods while still holding his BTC.
With the Segregated Witness upgrade, such instances can not happen again. This is because the witness signatures are moved outside of the transaction block into an extended block, and altering the witness signature won’t affect the transaction ID.
Since the transaction malleability issue is fixed, Segregated Witness also enables the proper functioning of second-layer scalability solutions on the Bitcoin protocol, such as the Lightning Network.

Lightning Network

Lightning Network is a second-layer micropayment solution for scalability.
Specifically, Lightning Network aims to enable near-instant and low-cost payments between merchants and customers that wish to use bitcoins.
Lightning Network was conceptualized in a whitepaper by Joseph Poon and Thaddeus Dryja in 2015. Since then, it has been implemented by multiple companies. The most prominent of them include Blockstream, Lightning Labs, and ACINQ.
A list of curated resources relevant to Lightning Network can be found here.
In the Lightning Network, if a customer wishes to transact with a merchant, both of them need to open a payment channel, which operates off the Bitcoin blockchain (i.e., off-chain vs. on-chain). None of the transaction details from this payment channel are recorded on the blockchain, and only when the channel is closed will the end result of both party’s wallet balances be updated to the blockchain. The blockchain only serves as a settlement layer for Lightning transactions.
Since all transactions done via the payment channel are conducted independently of the Nakamoto consensus, both parties involved in transactions do not need to wait for network confirmation on transactions. Instead, transacting parties would pay transaction fees to Bitcoin miners only when they decide to close the channel.
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One limitation to the Lightning Network is that it requires a person to be online to receive transactions attributing towards him. Another limitation in user experience could be that one needs to lock up some funds every time he wishes to open a payment channel, and is only able to use that fund within the channel.
However, this does not mean he needs to create new channels every time he wishes to transact with a different person on the Lightning Network. If Alice wants to send money to Carol, but they do not have a payment channel open, they can ask Bob, who has payment channels open to both Alice and Carol, to help make that transaction. Alice will be able to send funds to Bob, and Bob to Carol. Hence, the number of “payment hubs” (i.e., Bob in the previous example) correlates with both the convenience and the usability of the Lightning Network for real-world applications.

Schnorr Signature upgrade proposal

Elliptic Curve Digital Signature Algorithm (“ECDSA”) signatures are used to sign transactions on the Bitcoin blockchain.
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However, many developers now advocate for replacing ECDSA with Schnorr Signature. Once Schnorr Signatures are implemented, multiple parties can collaborate in producing a signature that is valid for the sum of their public keys.
This would primarily be beneficial for network scalability. When multiple addresses were to conduct transactions to a single address, each transaction would require their own signature. With Schnorr Signature, all these signatures would be combined into one. As a result, the network would be able to store more transactions in a single block.
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The reduced size in signatures implies a reduced cost on transaction fees. The group of senders can split the transaction fees for that one group signature, instead of paying for one personal signature individually.
Schnorr Signature also improves network privacy and token fungibility. A third-party observer will not be able to detect if a user is sending a multi-signature transaction, since the signature will be in the same format as a single-signature transaction.

4. Economics and supply distribution

The Bitcoin protocol utilizes the Nakamoto consensus, and nodes validate blocks via Proof-of-Work mining. The bitcoin token was not pre-mined, and has a maximum supply of 21 million. The initial reward for a block was 50 BTC per block. Block mining rewards halve every 210,000 blocks. Since the average time for block production on the blockchain is 10 minutes, it implies that the block reward halving events will approximately take place every 4 years.
As of May 12th 2020, the block mining rewards are 6.25 BTC per block. Transaction fees also represent a minor revenue stream for miners.
submitted by D-platform to u/D-platform [link] [comments]

The "core developers" are no longer following Satoshi's road map for Bitcoin.

The "core developers" are no longer following Satoshi's road map for Bitcoin.
As the team changed, so did the long term vision. Gavin Andresen & Mike Hearn were right about them.
submitted by SteemWhale to btc [link] [comments]

Monero Deep Dive: The Cryptocurrency To Use If You Want True Anonymity, Far More Anonymous Than Bitcoin

http://www.cypherpunklabs.com/monero-deep-dive-the-cryptocurrency-to-use-if-you-want-true-anonymity-far-more-anonymous-than-bitcoin/
In the early days of cryptocurrency Bitcoin was considered the best payment method for those who wished to stay anonymous. At the time this was true, since Bitcoin required no personal identification information while fiat payment methods like banks and PayPal required a full suite of personal identification information. However, all Bitcoin transactions in history are stored on a publicly accessible block explorer, and with the rise of blockchain forensics it is now possible to figure out who owns a Bitcoin address and what they have been doing with their Bitcoin. Although it is possible to increase Bitcoin’s anonymity by using Tor, VPNs, and CoinJoin, as will be discussed in future Cypherpunk Labs articles, Bitcoin can only be considered pseudo-anonymous rather than fully anonymous.
Nicolas van Saberhagen recognized that Bitcoin lacked full anonymity, in addition to the fact that it is a slow and difficult process to change Bitcoin’s code. Saberhagen proposed to create a new cryptocurrency that was far more anonymous, in addition to correcting some other apparent deficiencies in Bitcoin, and wrote up these ideas in the CryptoNote White Paper.
The first cryptocurrency to utilize the ideas in the CryptoNote White Paper was Bytecoin (BCN), which is a lesser known but still functional stealth cryptocurrency. Bitcointalk user thankful_for_today modified the code from Bytecoin and created BitMonero), but there was community criticism since not everything in the CryptoNote White Paper was adopted. This caused thankful_for_today to apparently abandon the project, but a group of users led by Johny Mnemonic quickly took over and renamed the cryptocurrency Monero (XMR).
One of the most critical pieces of stealth technology that Monero uses is ring signatures. With Bitcoin a transaction is signed with a user’s private key and can be verified with the public key. With a ring signature a transaction is signed by your key as well as the public keys from several other outputs on the blockchain using a triangular distribution method. Essentially, each Monero transaction is signed by a group of keys, and it is not possible to distinguish which key the transaction originated from. This can be thought of as decentralized and trustless mixing, and ultimately ring signatures hide the destination and origin of a transaction.
Eventually Monero upped the ante and implemented ring signature confidential transactions (RingCT), which uses multi-layered linkable spontaneous anonymous group signatures to hide the amount of a transaction. However, RingCT transactions required a large amount of data in order to ensure that the sum of inputs and outputs equaled zero, and bulletproofs were implemented to solve this problem. More about bulletproofs can be read in this paper. Essentially, bulletproofs helped reduce transaction size, lowering transaction fees on the Monero network, and also made it cheaper to create transactions with higher degrees of complexity.
Another critical piece of technology that makes Monero anonymous is stealth addresses. The sender creates a random one-time address for every transaction on behalf of the recipient. This allows a recipient to have just one published address but all of their incoming transactions go to different addresses on the blockchain. Thanks to stealth addresses, only the sender and receiver can determine where a payment was sent, while an outside observer cannot figure that out.
A Monero user can see incoming transactions with their view key, and anyone without the view key cannot see the incoming transactions to any particular address. This view key can be shared, so Monero can be considered optionally transparent, but the default is stealth.
When a Monero user decides to spend their coins, the Monero in a stealth address is broken down into its components and combined with other equivalent components via ring signatures. For example, if 42.42 Monero is sent, then the coins are split into 40 + 2 + 0.4 + 0.02 and combined with other 40’s, 2’s, 0.4’s, and 0.02’s somewhere else in the blockchain. This renders outputs fundamentally indistinguishable, and Unlike Bitcoin’s CoinJoin, no participation from anyone else is needed since already present outputs are being mixed.
Further, Monero tried to increase decentralization of its network by being incompatible with application specific integrated circuits (ASICs) via the CryptoNight protocol. This was originally accomplished by requiring a MB of internal memory, which was unacceptable to ASICs at the time. Also, Monero fit into the L3 cache of modern CPUs, while simultaneously being slower on GPUs, hindering the efficiency of GPU mining firms. That being said, it seems if a cryptocurrency is valuable enough then an ASIC is eventually created for it, and the Monero developers have been in a long term battle where they have to periodically change their mining protocol in order to prevent ASICs from overtaking the network. Monero is expected to release their new mining algorithm, RandomX, in October in order to stomp out the ASICs once again.
It seems the Monero developers are succeeding in their fight against ASIC centralization, and generally Monero is the most profitable cryptocurrency to mine on a personal computer while it is not that profitable with ASICs. This is important because it allows regular joes to mine Monero on their personal computer, decentralizing the network hash rate, as opposed to Bitcoin which is practically impossible to mine on a personal computer and most of the hash rate is in the hands of big mining farms.
Also, Monero uses dynamic block sizes, ensuring low transaction fees and fast confirmation times, as opposed to Bitcoin which often has a clogged mempool which can lead to long waits for confirmations and high transaction fees.
Additionally, Monero technically has an infinite supply since the minimum block reward is 0.6 XMR, and this will be reached in 2040. This ensures that miners will always have an incentive to secure the network long term, even if transaction fees are kept as low as possible. Compare this to Bitcoin where block rewards will approach zero, which may wreck the mining community if transaction fees are not high enough.
Thus, Monero’s ring signatures, RingCT, bulletproofs, and stealth addresses combine to obfuscate the sender, receiver, and amount of the transaction, and transactions are split into chunks that are indistinguishable from other transactions. This provides far more privacy than Bitcoin, since Bitcoin transactions are easily traced on a block explorer. It is clear that Monero is an excellent choice for those that want true anonymity when using cryptocurrency. That being said, it is important to use encrypted messaging as well when organizing a Monero transaction, since anonymity can be compromised if a message regarding a Monero transaction is intercepted.
submitted by turtlecane to Monero [link] [comments]

Bitcoin Gold a Shitcoin Vulnerable to Attack Despite $200 Million Market Cap

Bitcoin Gold a Shitcoin Vulnerable to Attack Despite $200 Million Market Cap

https://preview.redd.it/vddehe8qfo321.png?width=690&format=png&auto=webp&s=44a4111dddd126729769612bd27e1ebc30753e14
https://cryptoiq.co/bitcoin-gold-a-shitcoin-vulnerable-to-attack-despite-200-million-market-cap/
The War On Shitcoins Episode 1: Bitcoin Gold (BTG). The war on shitcoins is a Crypto.IQ series that targets and shoots down cryptocurrencies that are not worth investing in either due to their being scams, having serious design flaws, being centralized, or in general just being worthless copies of other cryptocurrencies. There are thousands of shitcoins that are ruining the markets, and Crypto.IQ intends to expose all of them. The crypto space needs an exorcism, and we are happy to provide it.
There are more than 2,000 cryptocurrencies listed on CoinMarketCap, and Bitcoin Gold (BTG) is near the top at number 25 with a market cap of $207 million. This would seem to indicate that Bitcoin Gold is a major cryptocurrency, but it is simply a copycat of Bitcoin with one key and debilitating difference that makes it worse than Bitcoin. Bitcoin Gold is designed to block ASIC miners, leaving only GPU miners.
The idea was that GPU miners would rally around Bitcoin Gold since GPU Bitcoin miners were disenfranchised by ASIC miners years ago. Ultimately, this decision to only allow GPUs resulted in such a low mining hash rate that Bitcoin Gold is vulnerable to 51 percent attacks, and a serious 51 percent attack has already happened once. Further, Bitcoin Gold has had centralization problems from the very beginning.
When Bitcoin Gold launched in November 2017 the developers did a massive premine of 8,000 blocks, which yielded them about 100,000 BTG. At today’s price $12 this is $1.2 million, and when BTG’s price peaked near $500, this was $50 million. This premine is unfair to other BTG miners, traders, and investors. Supposedly, the premined BTG were placed in an “endowment,” which means the developers will receive all of that money eventually, just not all at once. There is no way to verify if this is even true, however, and the excessive 97 percent BTG price crash since January 2018 might be partially due to developers dumping their coins.
A far more serious issue than the premine is BTG’s lack of network security. BTG made mining ASIC resistant by using the Equishash Proof of Work (PoW) algorithm. However, ASICs were eventually developed for Equihash since ASICs can be developed for any PoW algorithm. In May 2018 a 51 percent double spend attack occurred on the Bitcoin Gold network, and a hacker stole $18.6 million from cryptocurrency exchanges that listed BTG. This caused the developers to hard fork in order to implement a newer version of Equihash that is supposedly more ASIC resistant. Clearly, the developers did not learn their lesson that there is no ASIC-resistant PoW algorithm. If Bitcoin Gold became valuable enough, someone would produce an ASIC for it.
It is unclear if Equihash ASICs were the reason for the 51 percent attack, since an attacker could literally just rent some hash rate on a cloud mining site and successfully 51 percent attack Bitcoin Gold. Currently it only takes 1.6 MH/s of rented mining power to successfully perform a double spend attack on the Bitcoin Gold network, and this costs about $1,000 per hour if the hash rate is rented from NiceHash.
Effectively, Bitcoin Gold is not cryptographically secure. The original purpose of banning ASIC miners so that GPU miners could thrive ended up being a fatal flaw for Bitcoin Gold. It is ridiculous that major exchanges like Binance and Bitfinex still offer BTG trading. This is a true disservice to the users of these exchanges and is a risk for the exchanges themselves.
Crypto users need to educate themselves thoroughly before buying any cryptocurrency, or they could end up buying a shitcoin like Bitcoin Gold just because it has a high ranking on CoinMarketCap. BTG has already lost 97 percent of its value since January 2018, and there is strong potential for it to become completely worthless once someone decides to rent some hash power and perform a vicious 51 percent attack.
submitted by turtlecane to CryptoCurrency [link] [comments]

[EVENT] Begone, THOT!

CHICAGO TRIBUNE

MIDWEST

A Penny For Your THOT

New Cryptocurrency Announced at Secret Hacking Conference in Chicago

Associated Press | November 23, 2032 | 11:27 PM | CHICAGO
Several members of the local DEF CON 312 chapter have quietly unveiled the all-new cryptocurrency THOT at this year’s THOTCON, the 23-year-old hacking conference hosted annually at an undisclosed location within the Chicago Metropolitan Area. While THOTCON is traditionally a platform for the exploration of cutting-edge security issues, the timing of the cryptocurrency’s announcement appears to have been heavily influenced by the collapse of the American economy and the continued embargo against the State of Texas. “They’re all interested in financial security,” Nick Percoco, a THOTCON organizer, said when questioned about this year’s attendees. “It’s a little unusual, but with a big recession looming and a potential retaliatory strike from the Union State, I don’t really blame them.” Originally created by a team of students from the McCormick School of Engineering and named in honour of the main Chicago Area Code (THree-One-Two), THOT is already widely (and unofficially) exchanged throughout Northwestern University’s student body. One of the cryptocurrency’s co-founders, Isaac Jacobs, explained during the conference that THOT “is an open source blockchain-based cryptocurrency that prioritizes privacy and decentralization above all else.”
THOT borrows characteristics from existing blockchain platforms such as Monero and Ethereum. Like the former, it uses an obfuscated public ledger that prevents observers from identifying the source, amount, or destination of the transaction and combines this feature with stealth addresses, ring signatures, and a coinjoin scheme to pool currency, adding additional layers of opaqueness for each individual transaction. While THOT is a pure cryptocurrency (unlike Ethereum, which is both distributed computing platform and operating system), it has a 3.5% inflation cap relying on scaling difficulty in proof of work and uses an internal transaction fee system to allocate resources across the network and reduce spam. THOT uses the Data and Intelligence Corporation’s proprietary method of verification, including a Proof of Work mechanism to issue new tokens, incentivizing miners to secure the network and validate transactions while reducing the advantage of specialized ASICs in mining and keeping the currency decentralized.
“Beyond just a tradeable cryptocurrency, THOTs can act as a stake used to insure financial instruments on the blockchain,” Jacobs stated, when asked about the applications of the new monetary device. “For example, self-executing smart contracts will require a certain amount of THOTs to be sent along as crypto tokens to encourage a given transaction’s inclusion by miners in the blockchain. For any corporations that choose to adopt THOT, execution of instruments would instead result in a dividend paid in cryptocurrency to those processing it, founded on the contract's value. THOT would also be used for data royalties, encouraging third parties to adopt a stake in THOT to insure the security and validity of the instrument.” Jacobs was quick to point out that this architecture incentivizes expenditure of THOT to boost the processing of transactions, encouraging circulation of the currency.
THOT is currently the preferred medium of exchange between participants (and is likely to remain so while THOTCON continues), but its wider impact beyond its initial early adopters is undetermined at this time.
submitted by King_of_Anything to worldpowers [link] [comments]

The Great Bitcoin Bull Market Of 2017 by Trace Mayer

By: Trace Mayer, host of The Bitcoin Knowledge Podcast.
Originally posted here with images and Youtube videos.
I just got back from a two week vacation without Internet as I was scouring some archeological ruins. I hardly thought about Bitcoin at all because there were so many other interesting things and it would be there when I got back.
Jimmy Song suggested I do an article on the current state of Bitcoin. A great suggestion but he is really smart (he worked on Armory after all!) so I better be thorough and accurate!
Therefore, this article will be pretty lengthy and meticulous.
BACKGROUND
As I completely expected, the 2X movement from the New York Agreement that was supposed to happen during the middle of my vacation flopped on its face because Jeff Garzik was driving the clown car with passengers willfully inside like Coinbase, Blockchain.info, Bitgo and Xapo and there were here massive bugS and in the code and miners like Bitmain did not want to allocate $150-350m to get it over the difficulty adjustments.
I am very disappointed in their lack of integrity with putting their money where their mouths are; myself and many others wanted to sell a lot of B2X for BTC!
On 7 December 2015, with Bitcoin trading at US$388.40, I wrote The Rise of the Fourth Great Bitcoin Bubble. On 4 December 2016, with Bitcoin trading at US$762.97, I did this interview:

As of 26 November 2017, Bitcoin is trading around US$9,250.00. That is an increase of about 2,400% since I wrote the article prognosticating this fourth great Bitcoin bull market. I sure like being right, like usual (19 Dec 2011, 1 Jul 2013), especially when there are financial and economic consequences.
With such massive gains in such a short period of time the speculative question becomes: Buy, Hold or Sell?
FUNDAMENTALS
Bitcoin is the decentralized censorship-resistant Internet Protocol for transferring value over a communications channel.
The Bitcoin network can use traditional Internet infrastructure. However, it is even more resilient because it has custom infrastructure including, thanks to Bitcoin Core developer Matt Corrallo, the FIBRE network and, thanks to Blockstream, satellites which reduce the cost of running a full-node anywhere in the world to essentially nothing in terms of money or privacy. Transactions can be cheaply broadcast via SMS messages.
SECURITY
The Bitcoin network has a difficulty of 1,347,001,430,559 which suggests about 9,642,211 TH/s of custom ASIC hardware deployed.
At a retail price of approximately US$105/THs that implies about $650m of custom ASIC hardware deployed (35% discount applied).
This custom hardware consumes approximately 30 TWh per year. That could power about 2.8m US households or the entire country of Morocco which has a population of 33.85m.
This Bitcoin mining generates approximately 12.5 bitcoins every 10 minutes or approximately 1,800 per day worth approximately US$16,650,000.
Bitcoin currently has a market capitalization greater than $150B which puts it solidly in the top-30 of M1 money stock countries and a 200 day moving average of about $65B which is increasing about $500m per day.
Average daily volumes for Bitcoin is around US$5B. That means multi-million dollar positions can be moved into and out of very easily with minimal slippage.
When my friend Andreas Antonopolous was unable to give his talk at a CRYPSA event I was invited to fill in and delivered this presentation, impromptu, on the Seven Network Effects of Bitcoin.
These seven network effects of Bitcoin are (1) Speculation, (2) Merchants, (3) Consumers, (4) Security [miners], (5) Developers, (6) Financialization and (7) Settlement Currency are all taking root at the same time and in an incredibly intertwined way.
With only the first network effect starting to take significant root; Bitcoin is no longer a little experiment of magic Internet money anymore. Bitcoin is monster growing at a tremendous rate!!

SPECULATION
For the Bitcoin price to remain at $9,250 it requires approximately US$16,650,000 per day of capital inflow from new hodlers.
Bitcoin is both a Giffen good and a Veblen good.
A Giffen good is a product that people consume more of as the price rises and vice versa — seemingly in violation of basic laws of demand in microeconomics such as with substitute goods and the income effect.
Veblen goods are types of luxury goods for which the quantity demanded increases as the price increases in an apparent contradiction of the law of demand.
There are approximately 16.5m bitcoins of which ~4m are lost, ~4-6m are in deep cold storage, ~4m are in cold storage and ~2-4m are salable.
(http://www.runtogold.com/images/lost-bitcoins-1.jpg)
(http://www.runtogold.com/images/lost-bitcoins-2.jpg)
And forks like BCash (BCH) should not be scary but instead be looked upon as an opportunity to take more territory on the Bitcoin blockchain by trading the forks for real bitcoins which dries up more salable supply by moving it, likely, into deep cold storage.
According to Wikipedia, there are approximately 15.4m millionaires in the United States and about 12m HNWIs ($30m+ net worth) in the world. In other words, if every HNWI in the world wanted to own an entire bitcoin as a 'risk-free asset' that cannot be confiscated, seized or have the balance other wise altered then they could not.
For wise portfolio management, these HNWIs should have at least about 2-5% in gold and 0.5-1% in bitcoin.
Why? Perhaps some of the 60+ Saudis with 1,700 frozen bank accounts and about $800B of assets being targetted might be able to explain it to you.
In other words, everyone loves to chase the rabbit and once they catch it then know that it will not get away.
RETAIL
There are approximately 150+ significant Bitcoin exchanges worldwide. Kraken, according to the CEO, was adding about 6,000 new funded accounts per day in July 2017.
Supposedly, Coinbase is currently adding about 75,000 new accounts per day. Based on some trade secret analytics I have access to; I would estimate Coinbase is adding approximately 17,500 new accounts per day that purchase at least US$100 of Bitcoin.
If we assume Coinbase accounts for 8% of new global Bitcoin users who purchase at least $100 of bitcoins (just pulled out of thin error and likely very conservative as the actual number is perhaps around 2%) then that is approximately $21,875,000 of new capital coming into Bitcoin every single day just from retail demand from 218,750 total new accounts.
What I have found is that most new users start off buying US$100-500 and then after 3-4 months months they ramp up their capital allocation to $5,000+ if they have the funds available.
After all, it takes some time and practical experience to learn how to safely secure one's private keys.
To do so, I highly recommend Bitcoin Core (network consensus and full validation of the blockchain), Armory (private key management), Glacier Protocol (operational procedures) and a Puri.sm laptop (secure non-specialized hardware).
WALL STREET
There has been no solution for large financial fiduciaries to invest in Bitcoin. This changed November 2017.
LedgerX, whose CEO I interviewed 23 March 2013, began trading as a CFTC regulated Swap Execution Facility and Derivatives Clearing Organization.
The CME Group announced they will begin trading in Q4 2017 Bitcoin futures.
The CBOE announced they will begin trading Bitcoin futures soon.
By analogy, these institutional products are like connecting a major metropolis's water system (US$90.4T and US$2 quadrillion) via a nanoscopic shunt to a tiny blueberry ($150B) that is infinitely expandable.
This price discovery could be the most wild thing anyone has ever experienced in financial markets.
THE GREAT CREDIT CONTRACTION
The same week Bitcoin was released I published my book The Great Credit Contraction and asserted it had now begun and capital would burrow down the liquidity pyramid into safer and more liquid assets.
(http://www.runtogold.com/images/Great-Credit-Contraction-Liquidity-Pyramid.jpg)
Thus, the critical question becomes: Is Bitcoin a possible solution to the Great Credit Contraction by becoming the safest and most liquid asset?
BITCOIN'S RISK PROFILE
At all times and in all circumstances gold remains money but, of course, there is always exchange rate risk due to price ratios constantly fluctuating. If the metal is held with a third-party in allocated-allocated storage (safest possible) then there is performance risk (Morgan Stanley gold storage lawsuit).
But, if properly held then, there should be no counter-party risk which requires the financial ability of a third-party to perform like with a bank account deposit. And, since gold exists at a single point in space and time therefore it is subject to confiscation or seizure risk.
Bitcoin is a completely new asset type. As such, the storage container is nearly empty with only $150B.
And every Bitcoin transaction effectively melts down every BTC and recasts it; thus ensuring with 100% accuracy the quantity and quality of the bitcoins. If the transaction is not on the blockchain then it did not happen. This is the strictest regulation possible; by math and cryptography!
This new immutable asset, if properly secured, is subject only to exchange rate risk. There does exist the possibility that a software bug may exist that could shut down the network, like what has happened with Ethereum, but the probability is almost nil and getting lower everyday it does not happen.
Thus, Bitcoin arguably has a lower risk profile than even gold and is the only blockchain to achieve security, scalability and liquidity.
To remain decentralized, censorship-resistant and immutable requires scalability so as many users as possible can run full-nodes.
(http://www.runtogold.com/images/ethereum-bitcoin-scability-nov-2017.png)
TRANSACTIONS
Some people, probably mostly those shilling alt-coins, think Bitcoin has a scalability problem that is so serious it requires a crude hard fork to solve.
On the other side of the debate, the Internet protocol and blockchain geniuses assert the scalability issues can, like other Internet Protocols have done, be solved in different layers which are now possible because of Segregated Witness which was activated in August 2017.
Whose code do you want to run: the JV benchwarmers or the championship Chicago Bulls?
As transaction fees rise, certain use cases of the Bitcoin blockchain are priced out of the market. And as the fees fall then they are economical again.
Additionally, as transaction fees rise, certain UTXOs are no longer economically usable thus destroying part of the money supply until fees decline and UTXOs become economical to move.
There are approximately 275,000-350,000 transactions per day with transaction fees currently about $2m/day and the 200 DMA is around $1.08m/day.
(http://www.runtogold.com/images/bitcoin-transaction-fees-nov-2017.png)
What I like about transaction fees is that they somewhat reveal the financial health of the network.
The security of the Bitcoin network results from the miners creating solutions to proof of work problems in the Bitcoin protocol and being rewarded from the (1) coinbase reward which is a form of inflation and (2) transaction fees which is a form of usage fee.
The higher the transaction fees then the greater implied value the Bitcoin network provides because users are willing to pay more for it.
I am highly skeptical of blockchains which have very low transaction fees. By Internet bubble analogy, Pets.com may have millions of page views but I am more interested in EBITDA.
DEVELOPERS
Bitcoin and blockchain programming is not an easy skill to acquire and master. Most developers who have the skill are also financially independent now and can work on whatever they want.
The best of the best work through the Bitcoin Core process. After all, if you are a world class mountain climber then you do not hang out in the MacDonalds play pen but instead climb Mount Everest because that is where the challenge is.
However, there are many talented developers who work in other areas besides the protocol. Wallet maintainers, exchange operators, payment processors, etc. all need competent developers to help build their businesses.
Consequently, there is a huge shortage of competent developers. This is probably the largest single scalability constraint for the ecosystem.
Nevertheless, the Bitcoin ecosystem is healthier than ever before.
(http://www.runtogold.com/images/bitcoin-ecosystem.jpg)(/images/bitcoin-ecosystem-small.jpg)
SETTLEMENT CURRENCY
There are no significant global reserve settlement currency use cases for Bitcoin yet.
Perhaps the closest is Blockstream's Strong Federations via Liquid.
PRICE
There is a tremendous amount of disagreement in the marketplace about the value proposition of Bitcoin. Price discovery for this asset will be intense and likely take many cycles of which this is the fourth.
Since the supply is known the exchange rate of Bitcoins is composed of (1) transactional demand and (2) speculative demand.
Interestingly, the price elasticity of demand for the transactional demand component is irrelevant to the price. This makes for very interesting dynamics!
(http://www.runtogold.com/images/bitcoin-speculation.jpg)
On 4 May 2017, Lightspeed Venture Partners partner Jeremy Liew who was among the early Facebook investors and the first Snapchat investor laid out their case for bitcoin exploding to $500,000 by 2030.
On 2 November 2017, Goldman Sachs CEO Lloyd Blankfein (https://www.bloomberg.com/news/articles/2017-11-02/blankfein-says-don-t-dismiss-bitcoin-while-still-pondering-value)said, "Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus."
On 12 Sep 2017, JP Morgan CEO called Bitcoin a 'fraud' but conceded that "(http://fortune.com/2017/09/12/jamie-dimon-bitcoin-cryptocurrency-fraud-buy/)Bitcoin could reach $100,000".
Thus, it is no surprise that the Bitcoin chart looks like a ferret on meth when there are such widely varying opinions on its value proposition.
I have been around this space for a long time. In my opinion, those who scoffed at the thought of $1 BTC, $10 BTC (Professor Bitcorn!), $100 BTC, $1,000 BTC are scoffing at $10,000 BTC and will scoff at $100,000 BTC, $1,000,000 BTC and even $10,000,000 BTC.
Interestingly, the people who understand it the best seem to think its financial dominance is destiny.
Meanwhile, those who understand it the least make emotionally charged, intellectually incoherent bearish arguments. A tremendous example of worldwide cognitive dissonance with regards to sound money, technology and the role or power of the State.
Consequently, I like looking at the 200 day moving average to filter out the daily noise and see the long-term trend.
(http://www.runtogold.com/images/bitcoin-price-200dma-nov-2017.png)
Well, that chart of the long-term trend is pretty obvious and hard to dispute. Bitcoin is in a massive secular bull market.
The 200 day moving average is around $4,001 and rising about $30 per day.
So, what do some proforma situations look like where Bitcoin may be undervalued, average valued and overvalued? No, these are not prognostications.
(http://www.runtogold.com/images/bitcoin-price-pro-forma.png)
Maybe Jamie Dimon is not so off his rocker after all with a $100,000 price prediction.
We are in a very unique period of human history where the collective globe is rethinking what money is and Bitcoin is in the ring battling for complete domination. Is or will it be fit for purpose?
As I have said many times before, if Bitcoin is fit for this purpose then this is the largest wealth transfer in the history of the world.
CONCLUSION
Well, this has been a brief analysis of where I think Bitcoin is at the end of November 2017.
The seven network effects are taking root extremely fast and exponentially reinforcing each other. The technological dominance of Bitcoin is unrivaled.
The world is rethinking what money is. Even CEOs of the largest banks and partners of the largest VC funds are honing in on Bitcoin's beacon.
While no one has a crystal ball; when I look in mine I see Bitcoin's future being very bright.
Currently, almost everyone who has bought Bitcoin and hodled is sitting on unrealized gains as measured in fiat currency. That is, after all, what uncharted territory with daily all-time highs do!
But perhaps there is a larger lesson to be learned here.
Riches are getting increasingly slippery because no one has a reliable defined tool to measure them with. Times like these require incredible amounts of humility and intelligence guided by macro instincts.
Perhaps everyone should start keeping books in three numéraires: USD, gold and Bitcoin.
Both gold and Bitcoin have never been worth nothing. But USD is a fiat currency and there are thousands of those in the fiat currency graveyard. How low can the world reserve currency go?
After all, what is the risk-free asset? And, whatever it is, in The Great Credit Contraction you want it!
What do you think? Disagree with some of my arguments or assertions? Please, eviscerate them on Twitter or in the comments!
submitted by bitcoinknowledge to Bitcoin [link] [comments]

All About Mining

All About Mining

https://preview.redd.it/sq9bzi34o8931.png?width=1000&format=png&auto=webp&s=5917b541c4067fb2bbf5944f5b0c820167b4c66c
Since blockchain-based systems are decentralized, they do their decision-making by using consensus mechanisms. As per Wikipedia, “Consensus decision-making is a group decision-making process in which group members develop, and agree to support a decision in the best interest of the whole.” The mechanism by which the consensus is achieved is called consensus mechanism.

There are various types of consensus mechanisms out there, but the ones most commonly used are proof-of-work (PoW), aka “mining” and proof-of-stake (PoS). PoW’s ecosystem has a group of people called miners who use ASICs or GPUs to solve cryptographically-hard puzzles. PoS, on the other hand, has a staking model which takes care of consensus. If you want to know more about how PoW and PoS works, then check out this article.

In this article, we are going to be focussing on one of the biggest problems of mining, which makes it highly inefficient to achieve true decentralization. Later on, we are also going to see how staking mitigates this very problem

Mining and centralization
At the very heart of blockchain-based systems lies the concept of decentralization. PoW, as it turns out, is not as decentralization-friendly as we previously thought. The following is the current hashrate distribution chart of Bitcoin:

https://preview.redd.it/7bfje6s6o8931.png?width=871&format=png&auto=webp&s=5d29d3a090328527d5bdddde341b90a5769114cb
Bitcoin currently has four mining pools which own more than 50% of the network hashrate. It gets even worse when you look at Monero’s hashrate distribution:

https://preview.redd.it/l6y5emc8o8931.png?width=937&format=png&auto=webp&s=d882634608eab3ee1b09aae858bc69130bb29906
Monero has three mining pools which hold more than 60% of the network hashrate!

The main problem with this is that these dominant pools have an unfair advantage in the ecosystem:
  • Theoretically speaking, they can join forces and conduct a 51% attack on the ecosystem. If they do so, they can do whatever they want on the blockchain.
  • Since they own a significant percentage of the network hashrate, the probability of them successfully mining the blocks is significantly higher and, as a result, they will be receiving most of the mining rewards.

There is one more factor which gives large mining pools an extremely unfair advantage. To understand that, let’s look into a concept called “Economies of Scale.”

What is “Economies of Scale?”
There are two kinds of productions out there:
  • Short-run production: At least one of the input resources is fixed
  • Long-run production: None of the input resources are fixed. This is where economies of scale come in.

Let’s go a little deeper into the second point.
Assume that you are doubling the number of input resources in a long-run production. When you do that, there are three possible outcomes:
  • The output more than doubles, so you are getting increasing returns to scale.
  • The output doubles, so that’s a fixed return to scale.
  • The output doesn’t double, so you are getting decreasing returns to scale.
The following is a graphical depiction of economies of scale where the average cost of input resources is compared with the output value:

https://preview.redd.it/9oed4h3co8931.png?width=602&format=png&auto=webp&s=826968afd6d7ae0fcfab0120a73bba60bba87f5a
So, what is going on here?

  • When you want to increase your output from Q to Q2, your cost of production decreases from C to C1.
  • When you increase your output beyond Q2, the cost of production increases.
The implications of this are pretty staggering. The graph shows that until a particular limit, large corporations can actually increase their output value by decreasing the average cost of their input resources!

How does this apply to mining pools?

Larger and more powerful mining pools can leverage the economies of scale by, dollar-for-dollar, generating more hash-rate than other pools even if they spend the same amount of money.

Advantages that powerful mining pools have in a POW system
  • They can use their superior hashrate to mine more blocks and gain more rewards.
  • They can use the rewards to buy even more powerful ASICs and GPUs to give them an even greater advantage.
  • They can use economies of scale to generate more hashrate for the same amount of money as their competitors.
So, as you can see, powerful mining pools have a clear advantage in this ecosystem, which makes it a lot more centralized that you’d want to believe.

How POS mitigates this problem
POS mitigates this problem by making the mining process completely virtual. You are not using your computational power to mine resources anymore, you are merely staking your money. While in a POW system, large pools can generate more hashrate from a dollar, in a staking system, one dollar is still one dollar. Economies of scale don’t apply here.

This is one of the biggest reason why a lot of the newer blockchains, including FLETA, have chosen a staking model. A truly decentralized network will be essential to their success and staking mechanisms can achieve that far more efficiently than traditional crypto mining. FLETA uses a faster and more secure variation of the POS algorithm called Proof-of-Formulation(POF).

In traditional POS, the entire network takes part in the consensus algorithm. In POF, two sets of actors are chosen from the network:
  • Formulators: These are in charge of block generators. Based on their rankings, the Formulators will each get an opportunity to generate a block.
  • Observers: These nodes do real-time confirmation of the generated blocks and prevent double spending. Five observer nodes are assigned to each Formulator group. At least three of out the five observers need to sign off on a generated block for it to be confirmed.

You can read this article to gain a deeper understanding of POF. POF has so far achieved a throughput of 15,000 transactions per second (tested and verified) which is a lot faster than Ethereum (15–20 transactions per second) and EOS (max of 3,996 transactions per second).
submitted by fleta-official to fletachain [link] [comments]

Does Bitcoin mining stand the risk of consolidation due to economic drivers?

Bitcoin mining gets more optimized as time goes on. We have moved from CPU mining, to graphics mining and then to ASICs. Now it seems like there is so much competition that only the ASICs using the cheapest (or subsidized) energy will be profitable. Unprofitable miners will be turned off.
Will Bitcoin mining eventually consolidate at the cheapest energy cost location of the entire world? Potentially even controlled by one group?
Capitalistic competition has a phenomenon called “the consolidation curve” [1] where lots of players in a space shrink down to just a few (Nestle[2], Coca-Cola[3], etc.). Won’t the competition mechanism of Bitcoin mining result in the same outcomes?
[1] https://hbr.org/2002/12/the-consolidation-curve
[2] https://en.wikipedia.org/wiki/List_of_Nestlé_brands
[3] https://en.wikipedia.org/wiki/List_of_Coca-Cola_brands
submitted by autoforget to Bitcoin [link] [comments]

All About Zcoin

All About Zcoin

https://preview.redd.it/hixbz9f3lxm31.jpg?width=1200&format=pjpg&auto=webp&s=43896de84a3693d840c84057c0314af71718f0a3
What is Zcoin?
Zcoin, also referred to as XZC or Zerocoin, is an open source decentralized cryptocurrency that provides privacy and anonymity for its users when making transactions.
To achieve its privacy and anonymity, Zcoin uses zero-knowledge proofs via the Zerocoin protocol, which is at this moment in time one of the most cited cryptography papers.
According to Wikipedia, in cryptography, a zero-knowledge proof or zero-knowledge protocol is a method in which one party proves to another party (the verifier) that a given statement is actually true.
In other words, in a transaction with Bitcoin or Ethereum or something similar, your transaction history is always linked to your coins by default, leaving you vulnerable. All it takes is one link to your personal information or IP to find out the origin of the coins.
However, when you trade with Zcoin’s Zercoin feature, your transaction history is not linked to the actual coins. Only the receiver and sender know that the funds have actually been exchanged.

How Does Zcoin Work?

Zcoin works on the Zerocoin protocol by enforcing Zero-knowledge proofs. Here are the components of Zcoin to explain how it works.
Mint: When sending a private transaction with Zcoin, all you need to do is select the number of coins you want to mint. Post that your normal Zcoin balance would reduce automatically and you will be credited with new coins and no transaction history. In essence, your old coins are burned cryptographically, which prevents anyone else from using them again and being directed to your transaction history. You get credited with new coins with no history, while the total supply is maintained.
For now, you can only mint in denominations of 1, 10, 25, 50 and 100. If you choose ‘100’ coins to be minted, for instance, you will instantly be credited with 100 new Zcoins with no history attached to them.
  • Spend: When you want to make a private transaction, you will be required to use these ‘100’ newly minted coins. From this pool of funds, you can now send any amount in any denomination to anyone anonymously because no history is attached to it.
  • Repeat: You can ‘mint’ and ‘send’ Zcoins any number of times at anytime with your privacy intact.

Zcoin’s Vision

Zcoin seeks to improve things that Bitcoin hasn’t been able to so far, some of which include fungibility, privacy and miner’s centralization.
Users of Zcoin can enjoy full fungibility and privacy along with demolishing miner’s centralization by implementing a better proof of work algorithm called MTP.
Total Zcoin supply
Only 21 million units of Zcoin will ever be produced. Currently, there are about 3.4 million units in circulation, with the rest yet to be mined.
But the total supply has increased by 388450 XZC units after a Zcoin code bug, which the team refused to roll back due to economic reasons, which is why the total supply stands at approximately 21.4 million.
Every 10 minutes, a Zcoin block is mined and 50 coins are generated, making 72,000 Zcoins per day.
Market cap of Zcoin
According to CoinMarketCap, the total circulating supply of Zcoin is 5,757,841 XZC and the current unit price is $9.6. That makes the market cap approximately $55 million*.*
https://preview.redd.it/qw2igvupoxm31.png?width=1080&format=png&auto=webp&s=cfaa195d5d75ba8f20e5894d0351b2eabf76825a

How To Buy Zcoin Cryptocurrency

If you are looking to get some Zcoin, here is a list of resources where it can be bought from.
  • Atomars – Supported pairs are XZC/BTC, XZC/ETH, XZC/USDT
  • Binance - Supported pairs are XZC/BTC, XZC/ETH, XZC/BNB
  • Huobi - Supported pairs are XZC/BTC, XZC/ETH
  • Bittrex - Supported pairs are XZC/BTC
  • Cryptopia - Supported pairs are XZC/BTC, XZC/LTC, XZC/DOGE
  • CoinExchange - Supported pairs are XZC/BTC
  • LiteBit.eu - Supported pairs are XZC/EUR
Note: At the moment, buying XZC in fiat currencies such as USD, EUR, or GBP is quite difficult.
https://preview.redd.it/rrwao97woxm31.png?width=1460&format=png&auto=webp&s=442bf152f86a63300c5c4a029bb07369a69e6f70
Zcash:
Zcash is a decentralized and open-source peer-to-peer cryptocurrency that provides strong privacy protections. It was created as a fork of Bitcoin and, like bitcoin, it also has a hard limit of 21 million coins. Unlike bitcoin, however, Zcash offers total privacy for its users maintaining the absolute anonymity behind each transaction along with the parties and the amounts involved in it.
PIVX:
PIVX, which stands for Private Instant Verified Transaction, is an open-source, decentralized form of digital online money that uses blockchain technology. This makes it easy to transfer all around the world in an instant with low transaction fees with market leading security & privacy. PIVX focuses on privacy, security, anonymity, and instant transactions.
Monero:
Monero is a fast, private, secure and untraceable digital currency system that uses a special kind of cryptography to keep all its transactions 100% unlinkable and untraceable. With Monero, you are your own bank. You can spend safely, knowing that others cannot see your balances or track your activity.
Some Zcoin misconceptions
There are some misconceptions regarding Zcoin:
  • Some believe that, since Zcoin has a trusted setup that allows indefinite minting of coins, it is not safe. This is untrue. Of course, to start with they had to use a trusted setup because they have an auditable total coin supply that prevents any form of cheating. This downside however, is being taken care of by removing this trusted setup in the near future and when that happens, Zcoin will be one of the serious coins to count on for privacy.
  • Zcoin has been considered as Zcash’s fork but that is also not true because Zcash is based on the Zerocash protocol whereas Zcoin was started from scratch by applying Zerocoin tech.
Now that some of the Zcoin’s misconceptions have been cleared, here’s a look into its future.

Zcoin’s Future & Roadmap

Zcoin’s future is quite promising and worth watching based on these interesting milestones on their roadmap:
  • Zcoin is the first coin to implement MTP proof of work, which makes it possible for general masses to mine Zcoin with GPUs and CPUs. MTP doesn’t allow costly ASIC-like miners to mine XZC coins.
  • Zcoin is also implementing Znodes to make their cryptocurrency more decentralized and anonymous. These Znodes will be like masternodes and facilitate anonymous transactions as making an anonymous transaction single-handedly is quite computational.
  • Znodes will be incentivized by reducing some portion of the founder’s reward. Also, the surplus funds that get generated from the founder’s reward reduction would be used for hiring new developers and increased marketing efforts.
  • Another agenda on their roadmap is to bring inbuilt Tor or some IP obfuscation mechanism that will make it completely anonymous.
  • Apart from these, some innovative and exciting things like sigma protocol, decentralized anonymous voting and Zcoin Labs are on their roadmap, making this project worth checking out.
  • Last but not least, its recent price is a good indicator of its healthy market sentiment and shows that there are people who understand this project’s worth. Just to put things into perspective – a unit of Zcoin was priced $2 in March 2017 and now it is $37*.*

Zcoin Team & Progress

Zerocoin is a cryptocurrency proposed by professor Matthew D. Green, a professor of Johns Hopkins University, and graduate students Ian Miers and Christina Garman. It was proposed as an extension to the Bitcoin protocol that would add true cryptographic anonymity to Bitcoin transactions.
Zerocoin was first implemented into a fully functional cryptocurrency and released to the public by Poramin Insom, the lead developer, as Zcoin in September 2016.
Some of the notable dev members of the team are listed below.
Poramin Insom
Founder and Core Developer
Poramin Insom created what was the world's 4th most valuable cryptocurrency in February 2014. He is also the world's first person to implement stealth addresses in QT-Wallets, improving cryptocurrency anonymity. He earned a master’s degree in Information Security from Johns Hopkins University, where he wrote a paper on a proposed practical implementation of the Zerocoin protocol.
Alexander N.
Developer
Alexander N. aka Aizensou is a full-stack developer who has experience in many programming languages (C++, C#, Python, Perl, Java etc.) and has been involved in the cryptocurrency space since 2013. He has a broad development portfolio from low level APIs in Python and C++ to Android native applications in Java. In addition to his involvement in cryptocurrencies, Alexander was doing his P.h.D. in machine learning at a German university from 2012 to 2016.
Saran Siriphantnon
Developer
Saran Siriphantnon is the CTO of Satang.co/Satoshift, a fintech company focusing on creating an open financial system for Southeast Asia. He served as President of the Computer System Administrator Group at King Mongkut's Institute of Technology Ladkrabang.
Tadhg Riordan
Solidity Developer
Tadhg Riordan is a 24 year old Software Developer from Wexford, Ireland. He recently completed his MSc from Trinity College Dublin, where he worked with Blockchain privacy mechanisms, focusing particularly on Zero-Knowledge Proofs and the Ethereum platform. He is a strong advocate for the adoption of cryptocurrency and for complete financial privacy.
Apart from these, their team comprises of other developers, community managers, support personnel and advisors who maintain the required balance.

Advisors:

Aram Jivanyan (Cryptography Advisor): Co-Founder at Skycryptor & KMSchai
Torphop Korgtadam (It Security Consultant): Senior Vice President, Head Of Internal Audit Strategy, Innovation and Decision Science at United Overseas Bank Limited
Alexander N. aka Aizensou (Advisor)

Unique/Key Features Against Its Competitors:

  • Anonymous transactions. The project establishes a notably higher level of anonymity and seeks to bypass current analysis techniques which governments use to reveal the identity of users.
  • Not subject to transaction graph analysis. Zcoin has an anonymity set that encompasses all minted coins in a particular RSA accumulator that can scale to many thousands.
  • Innovative process. Tokens are burned cryptographically and replaced with new coins without a transaction history. This actively prevents anyone else from using the tokens again and stops the public from being directed to a user's transaction history.
  • Transparency focused. Zcoin's main advantage is its auditable money supply.
submitted by atomarsofficial to Atomars [link] [comments]

Discussão sobre Criptopmoedas (Bitcoin e Altcoins). Um pouco sobre o que aprendi e como você pode conhecer mais sobre esse mundo novo.

Oi, /Brasil!
Antes de qualquer coisa gostaria de fazer um ‘disclaimer’ sobre esse post:
Não estou aqui para fazer aquele marketing “Olhe como em apenas 5 passos você pode ficar muito rico!!”. Eu sou extremamente novo nesse mercado de Criptomoedas e aprendi tanta coisa nova e legal e gostaria de compartilhar meu conhecimento, tirar duvidas e quem sabe trazer novas pessoas nesse novo mundo.
 
Nesses últimos tempos vários posts sobre Bitcoin e Altcoins estão aparecendo aqui no /Brasil e muita gente discute sobre o assunto. Alguns extremamente céticos, uns curiosos e outros que já conhecem um pouquinho do assunto. Eu tentei dar um help pro pessoal que fez perguntas nos outros posts e alguns se juntaram ao grupo que organizei sobre Criptomoedas no Discord.
 
Não quero trazer também o “invista até não poder mais”. Esse mercado de criptomoedas é extremamente volátil e você pode sim perder dinheiro com isso. Nunca invista o que não pode perder.
 

Quero iniciar comentando sobre algo que muitos céticos usam:

“Bitcoin é uma bolha, ela vai estourar e você vai perder tudo.”
 
O que não é uma bolha, certo?
Bolha do ‘dot com’ e bolha da Apple a bolha do Tesla. Existem vários outros exemplos que eu poderia dar, mas eu não vim aqui pra isso.
 
A ideia central de Criptomoedas é ser um sistema descentralizado de qualquer banco, empresa e governo, ser seguro, open-source, totalmente criptografado, que é apoiado pela matemática implementada. Toda a história da moeda deve ser aberta ao público e você pode ver toda e qualquer transação feita na rede. Essas transações precisam ser processadas por máquinas que confirmam que essa transação não é um double-spending ou alguém querendo criar moedas “out of thin air”. Se alguém quiser hackear o sistema ele vai precisar quebrar toda a Blockchain da moeda (explicação mais abaixo).
 
Blockchain (cadeia de blocos) é todo o registro de tudo que aconteceu com a criptomoeda. Cada novo bloco é ligado ao ultimo bloco existente. Nenhum dado subsequente pode ser alterado sem que todos os outros blocos sejam alterados. Fazendo assim a criptomoeda em questão super segura. Blockchain é estudada para aplicações de gerenciamento de identidade, registro médico, prova de documentos, etc.
 
Você pode fazer uma transferência pequena de alguns trocados até com centenas de milhares Reais para qualquer lugar do mundo. Imagine você aqui no Brasil tem um parente lá na Coréia do Sul. Você quer mandar R$3000,00 para o parente. Para isso você precisa ir até o seu banco, solicitar uma transferência de alto valor, pagar todas as taxas do banco, do seu governo, talvez até do governo do país que será enviado, esperar até a data estipulada para o dinheiro chegar ao seu parente (a partir do dia do envio+2). Faça a pesquisa, você pode pagar muito alto por isso.
 
Agora leve em consideração o Bitcoin. Mesmo com uma taxa alta nesses últimos tempos (da ultima vez eu paguei R$12,00), imagine você mandar esses mesmos R$3000,00. Só que a transação é feita em até 60 minutos. Você manda a ordem de transferência da sua carteira até a carteira do seu parente, essa transferência de Bitcoin é registrada, então processada pelos mineradores e depois de um tempo o Bitcoin é validado na carteira do seu parente. Depois disso ele pode já usar os Bitcoin no mesmo dia ou ir até um caixa eletrônico de Bitcoin e sacar em dinheiro ou até trocar por outras moedas ou por dinheiro em Exchanges.
 
Fora Bitcoin, nós temos centenas de outras criptomoedas. Várias são muito interessantes, como: Ethereum, Litecoin, Bitcoin Cash, Vertcoin. Outras são simplesmente enganações usadas para roubar dinheiro de quem investe nas criptomoedas. Infelizmente existem coisas ruins como essa em qualquer lugar do mundo. Sugiro também uma pesquisa sobre cada criptomoeda. Coinmarketcap é um site legal para você iniciar sua pesquisa nas moedas de maior valor, volume, tecnologia, etc.
 

Mineração

A mineração consiste em usar o recurso de processamento do seu computador para procurar e resolver blocos. Quando isso acontece uma recompensa é distribuída para todos os mineradores envolvidos na mineração. Você pode minerar sozinho (o que hoje é impossível para alguém normal) ou pode entrar em uma Mining Pool.
 
Recentemente comecei a minerar uma criptomoeda chamada Vertcoin. Não é necessário muito conhecimento em como funciona a mineração. Basta ter um computador com placa de vídeo legal (a partir de uma gtx 1060 é legal), baixar um programa chamado One-Click Miner (OCM), arranjar uma carteira da moeda (interessante a Electrum Vertcoin Wallet), apontar seu minerador para aquela carteira, selecionar uma Pool de mineração e clicar Start.
 
Na mineração de Vertcoin você usa o poder de processamento da sua GPU para procurar blocos na rede junto com vários outros mineradores. Quando um bloco é encontrado você é recompensado pelo tempo que você esta minerando. Quanto mais tempo estiver minerando, melhor. Mas até um limite claro.
 
Não vou dizer que vale a pena você minerar porque existem muitas variáveis para isso. Para mim esta valendo a pena. Com uma GTX 1080 consigo pagar o gasto extra de conta de luz e lucrar Vertcoins. Recomendo fazer o calculo e ver se vale a pena.
 
A ideia central que estou levando para minerar Vertcoin é que devido a sua história, seus desenvolvedores, resistência à ASIC (Application Specific Integrated Circuits) e sua transparência com a comunidade ela será adotada pelo mercado. Seu valor subiu de US$0,04 em Janeiro de 2017 para hoje no preço de US$5,4. Outra coisa legal é que o Vertcoin usa algoritmo criado por brasileiros, chamada Lyra2!
 
Se você, leitor, tiver interesse em minerar ou discutir mais sobre moedas e conhecer mais, eu vou sugerir entrar no Discord que criei exatamente para isso: https://discord.gg/aWfV2Q5. Somos um grupo pequeno, mas o pessoal lá é super amigável e me trouxeram muito conhecimento novo. Temos desde iniciantes até alguns veteranos no assunto. Temos uma Pool de mineração de Vertcoin (Veja aqui) também se alguém se interessar.
 

Conclusão

Esse mundo de Cryptocurrencies é muito novo, estranho, inovador e interessante. Aprendi muita coisa e nem estou a tanto tempo assim aprendendo. Tenho comprado, vendido, minerado e guardado várias moedas diferentes. Tenho lucrado uma grana interessante que não teria vindo caso continuasse igual meus amigos que dizem não ter dinheiro pra investir nisso, mas saem todo final de semana com amigos/namorada e gastam 50, 100, 200 reais. Deixasse de sair 1 fim de semana por mês e compra uma moeda “segura” como Litecoin ou Ethereum. Da um lucro legal em uns 10 anos caso for atento, trocar por Real quando necessário ou mudar pra outra moeda.
 
Tem muita coisa que ainda quero falar, mas não quero deixar esse texto mais extenso do que esta. Por isso, peço a você que está lendo para deixar seus comentários, a favor ou contra, que vou tentar responder, aprender coisas novas, tirar dúvidas, fazer perguntas também e ter discussões saudáveis.
submitted by TheCrazyTiger to brasil [link] [comments]

Surae's (me) end-of-November (2017!) update.

You can check it out on the forums here. Here's a copypasta:
Surae's End of November (2017!) Update
Hello, everyone! Sarang posted his update a few days ago to give the community time to review his work before the end of the month. I was hoping to finish multisig off before the end of this month... so I held off on writing this update until then... but it looks like I'm somewhere between 2 days and a week behind on that estimate.
MRL Announcements
Meetings. We are holding weekly meetings on Mondays at 17:00 UTC. Logs are to be posted on my github soon(tm). Usually we alternate between "office hours" and "research meetings." At office hours, we want members of the community to come in and be able to ask questions, so we are considering opening up a relay to the freenode channel during office hours times, unless things get out of hand.
POW-Difficulty Replacement Contest. Some time in December, I am going to formalize an FFS "idea" to open up a multiple-round contest for possible replacements for our proof of work game. The first round would have a 3- or 6-month deadline. Personally, I would love it if this FFS could have an unbounded reward amount. If the community is extremely generous, we could easily whip up a large enough reward to spur lots and lots of interest across the world.
The Bitcoin POW game uses SHA256 to find nonces that produce hashes with sufficiently small digests according to the Bitcoin difficulty metric. Our current POW game uses CryptoNight to find nonces that produce hashes with sufficiently small digests according to the CryptoNote difficulty metric. The winner need not be proof of work. My current thoughts are roughly this:
All submissions will be public. Submissions that minimize incentives for centralized mining (or maximize disincentives) will be preferred over submissions that do not. Submissions that are elegant will be preferred over submissions that are not. Submissions that have provable claims about desirable properties will be preferred over submissions that do not (e.g. for either the Bitcoin or the Monero POW games, the necessary and sufficient network conditions for these games to produce blocks in a Poisson process have not been identified, to my understanding). Submissions that have a smaller environmental impact will be preferred over submissions that have a larger impact. And so on. I would like as many ideas as possible about a judging rubric for the first round. Especially if a large amount of money will be put up as a prize.
The details of the next round would be announced along with the winners of the first round. The reward funds should be released when a set of judges agree on a winner. MRL and Monero Core should each have representation on the panel of judges, and there ought to be at least one independent judge not directly associated with the Monero Project, like Peter Todd, Tim Ruffing, or someone along those lines. But, again, this is just an idea. If the community doesn't like it, we can drop it.
Here is a rundown for November
Multisig. Almost done. I know, I know, it's been forever. We, as a community, have recently come to see how important it is to carefully and formally ensure the correctness of our schemes before proceeding. Multisig is a delicate thing because a naively implemented multisig can reveal information about the participants.
I'm finishing vetting key creation today, finishing signatures tomorrow and the next day. Then I'm passing the result off to moneromooo and luigi to ensure that my description of their code is accurate up to their understanding. Then onto Sarang for final reviews before submission, hopefully by the end of the month. I have my life until Sunday evening blocked off to finish this. A copy of the document will be made available to the community ASAP (an older version is on my github), after more checking and writing is completed.
This whitepaper on multisig will be broken into two papers: one will be intended for peer review describing multi-ring signatures, and one will be a Monero Standard. More about that later...
RTRS RingCT column-linkability and amortization. You may say "what? I thought we were putting RTRS RingCT on the back burner?" Well, I'm still think ing about amortization of signatures. I'm thinking it will be possible (although perhaps not feasible) for miners to include amortized signatures upon finding new blocks. This would allow users to cite an amortized signature for fast verification, but has some possible drawbacks. But more exciting, I'm also chatting with Tim Ruffing, one of the authors on the RTRS RingCT papers: he thinks he has a solution to our "linkability by columns" problem with MLSAG and RingCT. Currently we try to avoid using more than one ring signature per recipient. This avoids linking distinct outputs based on bundling of these ring signatures. Ruffing believes RTRS RingCT can be tweaked to prove several commitments in a vector of commitments; this would allow a single RTRS RingCT to be computed and checked for each output being spent.
Once all the details are checked, I'll write up a document and make a copy of it available to the community. If it works, of course.
Consequences of bulletproofs. In my last end-of-month update I hinted at issues with an exponential space-time trade-off in RTRS RingCT. Due to the speed and space savings with bulletproofs, it may now be feasible to implement RTRS RingCT. With improved verification time savings with bulletproofs we can relax our requirements for verification times for signatures. This will allow the slightly longer verification times of RTRS RingCT to be counter-acted. Solving the problem "what ring sizes can we really get away with?" involves some modeling and solving some linear programming problems (linear programming, or linear optimization, is an anachronistically named area of applied mathematics involved with optimizing logistic problems... see here for more information).
Hence, we will be inserting bulletproofs into Monero with low friction, and then we will look into the logistics of moving to RTRS RingCT.
Monero Standards. Right now, we don't have a comprehensive list of how Monero works, all the various primitives and how they all fit together. Sarang and I have begun working on some Monero Standards that are similar to the original Cryptonote Standards (see here for more information). For each standard, from our hash function on upward, we will describe the standard, provide a justification for Monero's choices in those standards (complete with references), as well as a list of possible replacement standards. For example, our Monero RingCT Standard should describe the RingCT scheme described by shen, which is essentially a ring signature with linear combinations of signing keys + amount commitments. Under the "possible replacements" section, we would describe both the RTRS RingCT scheme and the doubly efficient zk-snark technology as two separate options.
These standards may take awhile to complete, and will be living documents as we change the protocol over the years. In the meantime, it will make it dramatically easier for future researchers to step into MRL and pick up where previous researchers have left off.
Hierarchical view keys. Exploiting the algebra we currently use for computing one-time keys, the sub-address scheme plays with view keys in a certain way, allowing a user to have one single view key for many wallets. Similarly, we may split a view key into several shares, where each subset of shares can be used to grant partial view access to the wallet. A receiver can request that a sender use a particular basepoint in their transaction key where different subsets of shares of the view key grant access to transactions with different basepoints in their transaction keys. None of these are protocol-level observations, they are wallet-level observations. Moreover, these require only that a receiver optionally specify a basepoint.
In other words: hierarchical view keys are a latent feature of our one-time address scheme that has not seen specific development yet. It's a rather low priority compared to the other projects under development; it grants users fine-grained control over their legal compliance, but Monero Standards will have great long-term impact on development and research at Monero.
Criticisms. Monero has suffered some recent criticisms about our hash function. I want to briefly address them.
First, I believe part of the criticism came from a confusion between Keccak3, SHA-3, and Keccak: we have never claimed to use SHA-3 as our hash function, we have only used the Keccak3 hash function, which is a legacy choice inherited from the original CryptoNote reference code. Many developers confuse the two, but Keccak3 was the hash function on which SHA-3 is based. In particular, the Keccak sponge construction can be used to fashion lots and lots of primitives, all of which could fairly be called "Keccak:" both Keccak3 and SHA-3 are Keccak constructions. This may be a subtle nomenclature issue, but it's important because a good portion of our criticisms say "Hey, they aren't using SHA-3!"
Second, I believe part of the criticism also comes from our choice of library, which in my opinion isn't a big deal as long as the library does what it says on the tin. In this case, our hash function is a valid implementation of Keccak3 according to the Keccak3 documentation. The most important criticism, from my point of view, is our choice of pre-SHA-3 Keccak3 as our hash function. Keccak3 underwent lots of analysis during the SHA contest, and Keccak3 is a well-vetted hash funtion. However, it has not been chosen as an international standard. There is a sentiment in the cryptocurrency community to distrust standards, which is probably a healthy sentiment. In this case, however, it means that our choice of hash function is not likely to be supported in common, well-vetted libraries in the future. Moreover, since SHA-3 is an international standard, it shall be undergoing heavy stress testing over the coming decades, a benefit Keccak3 shall not enjoy.
Last month, after some discussions, we made changes to our choice of PRNG in Monero to match the PRNG for Bitcoin. There has since been some discussions instantiated by anonimal about this choice of PRNG. We at MRL are doing our best to assist the core team in weighing the relative costs and benefits of switching to a library like crypto++, and so we believe these criticisms fall into the same category. We intend to address these issues and make formal recommendations in the aforementioned Monero Standards. Sorry for using the word aforementioned.
Things that didn't move much include a) educational outreach, b) SPECTRE, c) anti-ASIC roadmap, d) refund transactions. Most of which was on hold to complete multisig.
As far as educational outreach, I contacted a few members of a few math/cs depts at universities around me, but I haven't gotten anything hopeful yet. I wanted to go local (with respect to me) to make it easier to organize, but that's looking less likely. No matter how enthusiastic of a department we find, garnering participation from faculty members, beginning an application process for new students, squirelling up funding, working out logistics of getting teachers or lecturers/speakers from point A to point B, where to stash students, etc would be a challenge to finish before, say, July. And some schools start their fall semesters in mid-August. So I'm thinking that Summer 2019 is reasonable as the first Monero Summer School... and would be a real fun way to finish off a two-year post-doc!
December plan. I am going to finish multisig, and then finish the zk-lit review with Jeffrey Quesnelle, since these are both slam dunks. Any other time in December I have will be devoted to a) looking into the logistics of using the bulletproofs + RTRS RingCT set-up, b) reading the new zk-stark paper and assessing its importance for Monero, c) beginning work on Monero Standards, which includes addressing our hash function criticisms, our PRNG, etc.
Thank you again! This is an incredible opportunity, and this community is filled with some smart cookies. Every day is a challenge, and I couldn't ask for a more fun thing to be doing with my life right now. I'm hoping that my work ends up making Monero better for you.
submitted by snoether to Monero [link] [comments]

Asicpower AP9-SHA256 Review


Asicpower AP9-SHA256 Review

Bitmain is regarded as one of the most influential companies in the ASIC mining industry. It is estimated that they have manufactured approximately 53% of all mining equipment.Without including their mining profits, that’s around $140 million dollars in sales. These figures are staggering, but Bitmain’s monopoly of the Bitcoin ASIC market may come to an end, following the release of PowerAsic’s asicpower AP9-SHA256.

About the asicpower AP9-SHA256

Designed with brand new technology and boasting 94 TH/s per miner, the AP(-SHA256 is the most powerful and efficient Bitcoin miner to date.PowerAsic claims they spent $12 million dollars on research, development, and prototypes.PowerAsic also noted that their miners take advantage of ASICBOOST, an exploit of Bitcoin’s algorithm which improves mining efficiency by 20%.An unusual approach separate Powerasic’s miner to the other manufactures is the implementation of copper heat-sink claimed to have a superior thermal conductivity 69% better than aluminium. Don’t take their words for it but confirm the facts are correct on widely well known and published science documents as this one.The first batch of miners were announced and made available for order in August of 2019, with start scheduled for shipment in September, 2019.
Powerasic claims that the machines are around 40 percent more productive than the most proficient ASIC on the market, Bitmain’s Antminer S17.According to PowerAsic, they started a mining project with the aim to bring much needed competition to the market…We want to ‘make SHA256 great again.Sitting at the hefty price of $2,795.00, the powerasic AP9-SHA256 is far from affordable for the average person. Fortunately, due to the newly born rivalry between Bitmain and Powerasic, the price will probably lower with time and competition.The power supply for this unit is included and integrated in the top-box also including the controler card as a one unit. You will also get standard power cable, network cable, manual and software in the packet. In comparison to the price of the Antminer S17 , the Powerasic AP9-Sha256 is a better value.

Power Supply

The integrated PSU 3300W has a inputVoltage 220V 50Hz 30A. There are 2 fan 40mm., 1 fan 60mm to keep it cool and the power cable 3 legs following CEE 7 standard.Professional mining hardware runs optimally at 220-240V, hence why mining farms step down their own electricity supply to 220-240V. Note that 220V current is only found outside of the US – American outlets are 110V by default. Unless you want to hire an electrician, this could cause some people trouble adapt to the eficient and recomended 220V power needed, still 110V will get the job done, but they are not ideal for optimum mining performance.

Power Consumption

Thanks to the powerasic AP9-HA256’s new 7nm generation of ASIC chips, the AP9-SHA256 has become the most electrically-efficient miner on the market.Consuming merely 30.J/TB, or 2860W from the wall, the 16T is 30% more electrically-efficient than the Antminer S17.

Profitability

Powerasic ’s new ASIC technology is impressive. When compared to its closest competitor, the Antminer S17, the powerasic AP9-HA256 is the clear winner. It hashes at 94 TH/s, as opposed to the S17’s 56 TH/s. Moreover, the the AP9-HA256 consumes 30J/GH, whereas the S17 consumes 39-45J/TB.The difference in power consumption is miniscule, but when it comes to large-scale mining, the the AP9-HA256’s edge will drastically increase the profitability of a mining operation. This ASIC is profitable not only for mining on a large scale, but for the individual miner as well.Take a look at the projected mining profitability of a single miner:Note that is appears profitable even with high electricity costs ($0.1 per KW/h). With $0.05 / KW/h it’s even more profitable:📷Each powerasic AP9-HA256 will generate about $6,009 per year (calculated with 1 BTC=$10,141.5). Mining profitability may vary. You can usethis free profitability calculator to determine your projected earnings.

Is powerasic AP9-HA256 a Scam?

There is been a lot of talk on Twitter that powerasic AP9-HA256 is a scam. It appears it is not, as many users are already claiming to have received their miners.Slush, the creator ot Slush Mining Pool and the TREZOR hardware wallet, claims on Twitter that he has seen units and knows people who have had their miners delivered:

Verdict: Is The Antminer S17 Outdated?

When the first batch of Bitmain’s Antminer S17 ASICs reached the eager hands of miners, they were all the rage. The S17 was renowned as the most efficient ASIC miner on the market. Many used the S17 as the industry’s golden standard.Up until the launch of the powerasic AP9-HA256, it was the golden standard.But, now?Things have changed.Not only is the powerasic AP9-HA256 more powerful than its predecessor from Bitmain, but also more efficient, and therefore, more profitable.Ever since the announcement of the new ASIC, there was widespread speculation of its legitimacy – and rightly so.The Bitcoin community has been plagued with small, phony companies manipulating images of preexisting antminers as a ploy to hype up their fake products. Nevertheless, powerasic AP9-HA256 is taking things seriously, and their first batch of miners have lived up to expectations.The fact of the matter is, Bitmain’s most powerful and efficient antminer has been dethroned by the new reigning king of ASICs: The powerasic AP9-HA256.

Conclusion

Bitmain has dominated the ASIC market since its inception in 2013.There are a few other companies producing ASICs. However, before the creation of PowerAsics AP9-SHA256., Bitmain was the only company with a proven track record that sold efficient miners directly to the public.Powerasic AP9-HA256 has the potential to bring Bitmain’s monopoly to an end. Powerasic AP9-HA256 has a bright future ahead of them. Now that Bitmain has noteworthy competition, it will be interesting to see how it affects the market. The powerasic AP9-HA256 is the best option (for now) for anyone getting started with mining. Powerasic’s innovation should force other ASIC producers to innovate and force other companies to release new miners with better efficiency. So whether you’re buying a miner now or soon, you’re likely to benefit from the development of this new miner. For more, Visit Us: https://asicpower.net/product.php
submitted by farwa786 to u/farwa786 [link] [comments]

Blockchain Dictionary for Newbies

Blockchain Glossary: From A-Z
51% Attack
When more than half of the computing power of a cryptocurrency network is controlled by a single entity or group, this entity or group may issue conflicting transactions to harm the network, should they have the malicious intent to do so.
Address
Cryptocurrency addresses are used to send or receive transactions on the network. An address usually presents itself as a string of alphanumeric characters.
ASIC
Short form for ‘Application Specific Integrated Circuit’. Often compared to GPUs, ASICs are specially made for mining and may offer significant power savings.
Bitcoin
Bitcoin is the first decentralised, open source cryptocurrency that runs on a global peer to peer network, without the need for middlemen and a centralised issuer.
Block
Blocks are packages of data that carry permanently recorded data on the blockchain network.
Blockchain
A blockchain is a shared ledger where transactions are permanently recorded by appending blocks. The blockchain serves as a historical record of all transactions that ever occurred, from the genesis block to the latest block, hence the name blockchain.
Block Explorer
Block explorer is an online tool to view all transactions, past and current, on the blockchain. They provide useful information such as network hash rate and transaction growth.
Block Height
The number of blocks connected on the blockchain.
Block Reward
A form of incentive for the miner who successfully calculated the hash in a block during mining. Verification of transactions on the blockchain generates new coins in the process, and the miner is rewarded a portion of those.
Central Ledger
A ledger maintained by a central agency.
Confirmation
The successful act of hashing a transaction and adding it to the blockchain.
Consensus
Consensus is achieved when all participants of the network agree on the validity of the transactions, ensuring that the ledgers are exact copies of each other.
Cryptocurrency
Also known as tokens, cryptocurrencies are representations of digital assets.
Cryptographic Hash Function
Cryptographic hashes produce a fixed-size and unique hash value from variable-size transaction input. The SHA-256 computational algorithm is an example of a cryptographic hash.
Dapp
A decentralised application (Dapp) is an application that is open source, operates autonomously, has its data stored on a blockchain, incentivised in the form of cryptographic tokens and operates on a protocol that shows proof of value.
DAO
Decentralised Autonomous Organizations can be thought of as corporations that run without any human intervention and surrender all forms of control to an incorruptible set of business rules.
Distributed Ledger
Distributed ledgers are ledgers in which data is stored across a network of decentralized nodes. A distributed ledger does not have to have its own currency and may be permissioned and private.
Distributed Network
A type of network where processing power and data are spread over the nodes rather than having a centralised data centre.
Difficulty
This refers to how easily a data block of transaction information can be mined successfully.
Digital Signature
A digital code generated by public key encryption that is attached to an electronically transmitted document to verify its contents and the sender’s identity.
Double Spending
Double spending occurs when a sum of money is spent more than once.
Ethereum
Ethereum is a blockchain-based decentralised platform for apps that run smart contracts, and is aimed at solving issues associated with censorship, fraud and third party interference.
EVM
The Ethereum Virtual Machine (EVM) is a Turing complete virtual machine that allows anyone to execute arbitrary EVM Byte Code. Every Ethereum node runs on the EVM to maintain consensus across the blockchain.
Fork
Forks create an alternate version of the blockchain, leaving two blockchains to run simultaneously on different parts of the network.
Genesis Block
The first or first few blocks of a blockchain.
Hard Fork
A type of fork that renders previously invalid transactions valid, and vice versa. This type of fork requires all nodes and users to upgrade to the latest version of the protocol software.
Hash
The act of performing a hash function on the output data. This is used for confirming coin transactions.
Hash Rate
Measurement of performance for the mining rig is expressed in hashes per second.
Hybrid PoS/PoW
A hybrid PoS/PoW allows for both Proof of Stake and Proof of Work as consensus distribution algorithms on the network. In this method, a balance between miners and voters (holders) may be achieved, creating a system of community-based governance by both insiders (holders) and outsiders (miners).
Mining
Mining is the act of validating blockchain transactions. The necessity of validation warrants an incentive for the miners, usually in the form of coins. In this cryptocurrency boom, mining can be a lucrative business when done properly. By choosing the most efficient and suitable hardware and mining target, mining can produce a stable form of passive income.
Multi-Signature
Multi-signature addresses provide an added layer of security by requiring more than one key to authorize a transaction.
Node
A copy of the ledger operated by a participant of the blockchain network.
Oracles
Oracles work as a bridge between the real world and the blockchain by providing data to the smart contracts.
Peer to Peer
Peer to Peer (P2P) refers to the decentralized interactions between two parties or more in a highly-interconnected network. Participants of a P2P network deal directly with each other through a single mediation point.
Public Address
A public address is the cryptographic hash of a public key. They act as email addresses that can be published anywhere, unlike private keys.
Private Key
A private key is a string of data that allows you to access the tokens in a specific wallet. They act as passwords that are kept hidden from anyone but the owner of the address.
Proof of Stake
A consensus distribution algorithm that rewards earnings based on the number of coins you own or hold. The more you invest in the coin, the more you gain by mining with this protocol.
Proof of Work
A consensus distribution algorithm that requires an active role in mining data blocks, often consuming resources, such as electricity. The more ‘work’ you do or the more computational power you provide, the more coins you are rewarded with.
Scrypt
Scrypt is a type of cryptographic algorithm and is used by Litecoin. Compared to SHA256, this is quicker as it does not use up as much processing time.
SHA-256
SHA-256 is a cryptographic algorithm used by cryptocurrencies such as Bitcoin. However, it uses a lot of computing power and processing time, forcing miners to form mining pools to capture gains.
Smart Contracts
Smart contracts encode business rules in a programmable language onto the blockchain and are enforced by the participants of the network.
Soft Fork
A soft fork differs from a hard fork in that only previously valid transactions are made invalid. Since old nodes recognize the new blocks as valid, a soft fork is essentially backward-compatible. This type of fork requires most miners upgrading in order to enforce, while a hard fork requires all nodes to agree on the new version.
Solidity
Solidity is Ethereum’s programming language for developing smart contracts.
Testnet
A test blockchain used by developers to prevent expending assets on the main chain.
Transaction Block
A collection of transactions gathered into a block that can then be hashed and added to the blockchain.
Transaction Fee
All cryptocurrency transactions involve a small transaction fee. These transaction fees add up to account for the block reward that a miner receives when he successfully processes a block.
Turing Complete
Turing complete refers to the ability of a machine to perform calculations that any other programmable computer is capable of. An example of this is the Ethereum Virtual Machine (EVM).
Wallet
A file that houses private keys. It usually contains a software client which allows access to view and create transactions on a specific blockchain that the wallet is designed for.
submitted by Tokenberry to NewbieZone [link] [comments]

Network Security & Whether to ProgPow

While listening to the Core Devs Meeting #54 this morning, I realized that the factual trade-offs around ProgPow need to be better defined so that we can truly hear the community's take on this issue. It is a lot to put on the core team, and everyone seems to want more participation in this debate. An audit of ProgPow is necessary, but it will not lead to a decision on whether to implement it or not. In talking about the trade-offs of ProgPow until the end of such audit, let's just assume it works as expected.
I'll start by saying that it has been extremely difficult and frustrating for me to understand the tradeoffs of ProgPow, despite being actively involved in the community. I can only imagine how difficult it might be for the average ETH stakeholder to have an opinion on whether ProgPow is a good idea or not.
The conspiracy theories that have surfaced around ProgPow have certainly not contributed to the debate, and I'd like to take this opportunity to focus on facts, not speculation.
If you just tuned in, a good place to start is the question what is ProgPow?
ELI15: ProgPow is a module based on CUDA to better parallelize specific functions of Ethash on Nvidia architectures and increase computational efficiency. My back-of-the-envelope math shows that, under ProgPow, GPUs mining ProgPow-Ethash would be 1.5x more efficient than Plain-Ethash. Also, ProgPow allows the algorithm's parameters to be programmatically changed to prevent an integrated circuit (in an ASIC) to have an edge on efficiency over commodity GPUs in the long-run.
ELI5: ProgPow makes GPUs more efficient and allows Ethash to change in a way that curbs the advantage ASICs have over GPUs in the long-run.
The issue(?) of decreased hashing power
EF Security Lead Martin Swende said in the call today that he expects ProgPow to cut difficulty in half, which would in turn lead to lower hashing power being allocated to the network. Since Plain-Ethash would have different parameters than ProgPow-Ethash, their hashrates are not comparable in terms of security. Think of Plain-Ethash and ProgPow-Ethash as different algorithms. Still, all else equal, a 50% decrease in difficulty "doesn't sound too good" as u/Souptacular put it in the call today. That is because, even though hashrates are not comparable, the aggregate amount of electricity required to potentially attack the network is decreased, meaning, the cost of an attack might be lower post-ProgPow. However, I also recognize that there are social factors that also need to be considered in the decision of implementing ProgPow.
Based on my conversations, hobbyist miners have a love/hate relationship with Ethereum.
Ethash's hardness to ASIC has brought to Ethereum a lot of individual miners and small operations who, through mining pools, contribute to a large amount of the current hashrate. Competition with larger operations is lower on Ethereum than say, Zcash, given the much decreased efficiency gains when using ASICs on Ethash. This is the "love" in the sentence above. The "hate" is the realization that the network will eventually adopt PoS and that, until then, block rewards will continue to decrease. This is painful, especially at current price levels. This coalition of smaller operations believes that the adoption of ProgPow would level the playing field even further and make mining Ethash more fair. Not adopting ProgPow may lead this coalition of retail miners to leave Ethereum. This is may be the main reason why large mining pools like Ethermine are pro-ProgPow. The worst-outcome-possible would be for these miners to fork their coalition out of the protocol.
The issue of ASIC centralization
Another argument pro-ProgPow that keeps popping up is that ASICs contribute to centralization, which has been an ongoing problem for Bitcoin and many other protocols that employ algorithms that are not as hard as Ethash. u/vbuterin has said in the past that he does not believe mining centralization concerns are as relevant to Ethash as other algos. And after surveying the Ethash ASIC market, I tend agree with him. It all seems to comes down to efficiency and the degree of centralization in the ASIC manufacturing industry. Ethash ASICs are only 2x more efficient than state-of-the-art GPUs; a much lower efficiency coefficient than SHA-256 ASICs, which are 1000x more efficient. There are now eleven different models of Ethash ASICs in the market, and three fiercely competitive manufacturers producing them (BITMAIN, Innosillicon and PandaMiner). Had BITMAIN been the only entity in the Ethash ASIC market, I would be more concerned about centralization, but that does not seem to be the case. Ultimately, we should remember that ProgPow does not eliminate existing ASICs from the market - it only makes existing GPUs more efficient on a relative basis. Also, the activation of ProgPow would not prevent these manufacturers from developing a ProgPow-compatible ASIC.
The most important factor to consider right now is network security.
Even more so because the PoW chain will be an integral component of the first stages of the new Serenity roadmap. PoS validators stake their funds on the PoW chain and, as such, the entire system relies on a sufficiently large number of miners to not abandon Ethereum. From my understanding, due to the use of Nvidia's CUDA, GPU miners running RX580s and RX Vegas (which are based on AMD) would not be able to mine ProgPow (please fact-check if I'm wrong). We don't know the proportion of miners running AMD versus Nvidia versus ASICs.
Core developers are focusing on whether ProgPow does what it is supposed to do, hence the focus on an audit, but that might not be the right question. The way I see it, the right question should be (assuming ProgPow works): in what scenario will network security be optimized in terms of cumulative electricity expenditure allocated to Ethash?
u/5chdn
submitted by jamesmrk3l to ethereum [link] [comments]

Decred Journal – August 2018

Note: you can read this on GitHub (link), Medium (link) or old Reddit (link) to see all the links.

Development

dcrd: Version 1.3.0 RC1 (Release Candidate 1) is out! The main features of this release are significant performance improvements, including some that benefit SPV clients. Full release notes and downloads are on GitHub.
The default minimum transaction fee rate was reduced from 0.001 to 0.0001 DCkB. Do not try to send such small fee transactions just yet, until the majority of the network upgrades.
Release process was changed to use release branches and bump version on the master branch at the beginning of a release cycle. Discussed in this chat.
The codebase is ready for the new Go 1.11 version. Migration to vgo module system is complete and the 1.4.0 release will be built using modules. The list of versioned modules and a hierarchy diagram are available here.
The testnet was reset and bumped to version 3.
Comments are welcome for the proposal to implement smart fee estimation, which is important for Lightning Network.
@matheusd recorded a code review video for new Decred developers that explains how tickets are selected for voting.
dcrwallet: Version 1.3.0 RC1 features new SPV sync mode, new ticket buyer, new APIs for Decrediton and a host of bug fixes. On the dev side, dcrwallet also migrated to the new module system.
Decrediton: Version 1.3.0 RC1 adds the new SPV sync mode that syncs roughly 5x faster. The feature is off by default while it receives more testing from experienced users. Other notable changes include a design polish and experimental Politeia integration.
Politeia: Proposal editing is being developed and has a short demo. This will allow proposal owners to edit their proposal in response to community feedback before voting begins. The challenges associated with this feature relate to updating censorship tokens and maintaining a clear history of which version comments were made on. @fernandoabolafio produced this architecture diagram which may be of interest to developers.
@degeri joined to perform security testing of Politeia and found several issues.
dcrdata: mainnet explorer upgraded to v2.1 with several new features. For users: credit/debit tx filter on address page, showing miner fees on coinbase transaction page, estimate yearly ticket rewards on main page, cool new hamburger menu and keyboard navigation. For developers: new chain parameters page, experimental Insight API support, endpoints for coin supply and block rewards, testnet3 support. Lots of minor API changes and frontend tweaks, many bug fixes and robustness improvements.
The upcoming v3.0 entered beta and is deployed on beta.dcrdata.org. Check out the new charts page. Feedback and bug reports are appreciated. Finally, the development version v3.1.0-pre is on alpha.dcrdata.org.
Android: updated to be compatible with the latest SPV code and is syncing, several performance issues are worked on. Details were posted in chat. Alpha testing has started, to participate please join #dev and ask for the APK.
iOS: backend is mostly complete, as well as the front end. Support for devices with smaller screens was improved. What works now: creating and recovering wallets, listing of transactions, receiving DCR, displaying and scanning QR codes, browsing account information, SPV connection to peers, downloading headers. Some bugs need fixing before making testable builds.
Ticket splitting: v0.6.0 beta released with improved fee calculation and multiple bug fixes.
docs: introduced new Governance section that grouped some old articles as well as the new Politeia page.
@Richard-Red created a concept repository sandbox with policy documents, to illustrate the kind of policies that could be approved and amended by Politeia proposals.
decred.org: 8 contributors added and 4 removed, including 2 advisors (discussion here).
decredmarketcap.com is a brand new website that shows the most accurate DCR market data. Clean design, mobile friendly, no javascript required.
Dev activity stats for August: 239 active PRs, 219 commits, 25k added and 11k deleted lines spread across 8 repositories. Contributions came from 2-10 developers per repository. (chart)

Network

Hashrate: went from 54 to 76 PH/s, the low was 50 and the new all-time high is 100 PH/s. BeePool share rose to ~50% while F2Pool shrank to 30%, followed by coinmine.pl at 5% and Luxor at 3%.
Staking: 30-day average ticket price is 95.6 DCR (+3.0) as of Sep 3. During the month, ticket price fluctuated between a low of 92.2 and high of 100.5 DCR. Locked DCR represented between 3.8 and 3.9 million or 46.3-46.9% of the supply.
Nodes: there are 217 public listening and 281 normal nodes per dcred.eu. Version distribution: 2% at v1.4.0(pre) (dev builds), 5% on v1.3.0 (RC1), 62% on v1.2.0 (-5%), 22% on v1.1.2 (-2%), 6% on v1.1.0 (-1%). Almost 69% of nodes are v.1.2.0 and higher and support client filters. Data snapshot of Aug 31.

ASICs

Obelisk posted 3 email updates in August. DCR1 units are reportedly shipping with 1 TH/s hashrate and will be upgraded with firmware to 1.5 TH/s. Batch 1 customers will receive compensation for missed shipment dates, but only after Batch 5 ships. Batch 2-5 customers will be receiving the updated slim design.
Innosilicon announced the new D9+ DecredMaster: 2.8 TH/s at 1,230 W priced $1,499. Specified shipping date was Aug 10-15.
FFMiner DS19 claims 3.1 TH/s for Blake256R14 at 680 W and simultaneously 1.55 TH/s for Blake2B at 410 W, the price is $1,299. Shipping Aug 20-25.
Another newly noticed miner offer is this unit that does 46 TH/s at 2,150 W at the price of $4,720. It is shipping Nov 2018 and the stats look very close to Pangolin Whatsminer DCR (which has now a page on asicminervalue).

Integrations

www.d1pool.com joined the list of stakepools for a total of 16.
Australian CoinTree added DCR trading. The platform supports fiat, there are some limitations during the upgrade to a new system but also no fees in the "Early access mode". On a related note, CoinTree is working on a feature to pay household bills with cryptocurrencies it supports.
Three new OTC desks were added to exchanges page at decred.org.
Two mobile wallets integrated Decred:
Reminder: do your best to understand the security and privacy model before using any wallet software. Points to consider: who controls the seed, does the wallet talk to the nodes directly or via middlemen, is it open source or not?

Adoption

Merchants:

Marketing

Targeted advertising report for August was posted by @timhebel. Facebook appeal is pending, some Google and Twitter campaigns were paused and some updated. Read more here.
Contribution to the @decredproject Twitter account has evolved over the past few months. A #twitter_ops channel is being used on Matrix to collaboratively draft and execute project account tweets (including retweets). Anyone with an interest in contributing to the Twitter account can ask for an invitation to the channel and can start contributing content and ideas there for evaluation by the Twitter group. As a result, no minority or unilateral veto over tweets is possible. (from GitHub)

Events

Attended:
For those willing to help with the events:
BAB: Hey all, we are gearing up for conference season. I have a list of places we hope to attend but need to know who besides @joshuam and @Haon are willing to do public speaking, willing to work booths, or help out at them? You will need to be well versed on not just what is Decred, but the history of Decred etc... DM me if you are interested. (#event_planning)
The Decred project is looking for ambassadors. If you are looking for a fun cryptocurrency to get involved in send me a DM or come talk to me on Decred slack. (@marco_peereboom, longer version here)

Media

Decred Assembly episode 21 is available. @jy-p and lead dcrwallet developer @jrick discussed SPV from Satoshi's whitepaper, how it can be improved upon and what's coming in Decred.
Decred Assembly episodes 1-21 are available in audio only format here.
New instructional articles on stakey.club: Decrediton setup, Deleting the wallet, Installing Go, Installing dcrd, dcrd as a Linux service. Available in both English and Portuguese.
Decred scored #32 in the August issue of Chinese CCID ratings. The evaluation model was explained in this interview.
Satis Group rated Decred highly in their cryptoasset valuation research report (PDF). This was featured by several large media outlets, but some did not link to or omitted Decred entirely, citing low market cap.
Featured articles:
Articles:
Videos:

Community Discussions

Community stats:
Comm systems news:
After another debate about chat systems more people began testing and using Matrix, leading to some gardening on that platform:
Highlights:
Reddit: substantive discussion about Decred cons; ecosystem fund; a thread about voter engagement, Politeia UX and trolling; idea of a social media system for Decred by @michae2xl; how profitable is the Obelisk DCR1.
Chats: cross-chain trading via LN; plans for contractor management system, lower-level decision making and contractor privacy vs transparency for stakeholders; measuring dev activity; what if the network stalls, multiple implementations of Decred for more resilience, long term vision behind those extensive tests and accurate comments in the codebase; ideas for process for policy documents, hosting them in Pi and approving with ticket voting; about SPV wallet disk size, how compact filters work; odds of a wallet fetching a wrong block in SPV; new module system in Go; security of allowing Android app backups; why PoW algo change proposal must be specified in great detail; thoughts about NIPoPoWs and SPV; prerequisites for shipping SPV by default (continued); Decred vs Dash treasury and marketing expenses, spending other people's money; why Decred should not invade a country, DAO and nation states, entangling with nation state is poor resource allocation; how winning tickets are determined and attack vectors; Politeia proposal moderation, contractor clearance, the scale of proposals and decision delegation, initial Politeia vote to approve Politeia itself; chat systems, Matrix/Slack/Discord/RocketChat/Keybase (continued); overview of Korean exchanges; no breaking changes in vgo; why project fund burn rate must keep low; asymptotic behavior of Decred and other ccs, tail emission; count of full nodes and incentives to run them; Politeia proposal translations and multilingual environment.
An unusual event was the chat about double negatives and other oddities in languages in #trading.

Markets

DCR started the month at USD 56 / BTC 0.0073 and had a two week decline. On Aug 14 the whole market took a huge drop and briefly went below USD 200 billion. Bitcoin went below USD 6,000 and top 100 cryptos lost 5-30%. The lowest point coincided with Bitcoin dominance peak at 54.5%. On that day Decred dived -17% and reached the bottom of USD 32 / BTC 0.00537. Since then it went sideways in the USD 35-45 / BTC 0.0054-0.0064 range. Around Aug 24, Huobi showed DCR trading volume above USD 5M and this coincided with a minor recovery.
@ImacallyouJawdy posted some creative analysis based on ticket data.

Relevant External

StopAndDecrypt published an extensive article "ASIC Resistance is Nothing but a Blockchain Buzzword" that is much in line with Decred's stance on ASICs.
The ongoing debates about the possible Sia fork yet again demonstrate the importance of a robust dispute resolution mechanism. Also, we are lucky to have the treasury.
Mark B Lundeberg, who found a vulnerability in atomicswap earlier, published a concept of more private peer-to-peer atomic swaps. (missed in July issue)
Medium took a cautious stance on cryptocurrencies and triggered at least one project to migrate to Ghost (that same project previously migrated away from Slack).
Regulation: Vietnam bans mining equipment imports, China halts crypto events and tightens control of crypto chat groups.
Reddit was hacked by intercepting 2FA codes sent via SMS. The announcement explains the impact. Yet another data breach suggests to think twice before sharing any data with any company and shift to more secure authentication systems.
Intel and x86 dumpsterfire keeps burning brighter. Seek more secure hardware and operating systems for your coins.
Finally, unrelated to Decred but good for a laugh: yetanotherico.com.

About This Issue

This is the 5th issue of Decred Journal. It is mirrored on GitHub, Medium and Reddit. Past issues are available here.
Most information from third parties is relayed directly from source after a minimal sanity check. The authors of Decred Journal have no ability to verify all claims. Please beware of scams and do your own research.
Feedback is appreciated: please comment on Reddit, GitHub or #writers_room on Matrix or Slack.
Contributions are welcome too. Some areas are collecting content, pre-release review or translations to other languages. Check out @Richard-Red's guide how to contribute to Decred using GitHub without writing code.
Credits (Slack names, alphabetical order): bee, Haon, jazzah, Richard-Red and thedecreddigest.
submitted by jet_user to decred [link] [comments]

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