Bitcoin Mining Guide - Getting started with Bitcoin mining
Bitcoin for Beginners (Bitcoin Part 1) - My Finance MD
Beginners Guide: What is Bitcoin? - CoinCentral
Top 5 Bitcoin Books for Beginners | Genesis Mining
The place for everything bitcoin!
Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no one in charge of bitcoin and it is made up of willing participants. Bitcoin gives you the option to be your own bank.
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 ablockchainnetwork structure, a notion first created byStuart 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.
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).
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 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. https://preview.redd.it/m6texxicf3151.png?width=1591&format=png&auto=webp&s=f4253304912ed8370948b9c524e08fef28f1c78d
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. https://preview.redd.it/depya70mf3151.png?width=1601&format=png&auto=webp&s=a6499aa2131fbf347f8ffd812930b2f7d66be48e 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:
Alice sends Bob 1 BTC, and Bob sends Merchant Carol this 1 BTC for some goods.
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.
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.
Now Carol will not receive his 1 BTC, as the network looks for transaction 12345 to ensure that Bob’s wallet balance is valid.
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 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. https://preview.redd.it/cy56icarf3151.png?width=1601&format=png&auto=webp&s=b239a63c6a87ec6cc1b18ce2cbd0355f8831c3a8 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. https://preview.redd.it/hjeqe4l7g3151.png?width=1601&format=png&auto=webp&s=8014fb08fe62ac4d91645499bc0c7e1c04c5d7c4 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. https://preview.redd.it/axg3wayag3151.png?width=1601&format=png&auto=webp&s=93d958fa6b0e623caa82ca71fe457b4daa88c71e 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.
The features of the system that make Bitcoin possible
Why is bitcoin innovative
A overview of challenges of the Bitcoin
If you do decide to go through the text would love some feedback. Was it clear? Did you get any value from it? Anything that needs to be expanded on? ----
1 Introduction to the Bitcoin System
1.1 Introduction and General Description
There are many definitions and descriptions of Bitcoin. Some describe it as an innovative virtual or crypto currency, some as the system for peer-to–peer electronic cash payment transactions, and some others as decentralized platform and infrastructure for anonymous payment transactions using any type of crypto currency. In this Report we will adopt the concept that the Bitcoin system is a payment system. It has its own features, its own currency, its own protocols and components, and with all that Bitcoin supports payment transactions. In other words, the core function of the Bitcoin system is to support payments between two parties – the party that makes a payment and the party that receives the payment. Based on the original concept and the description of the Bitcoin [Bitcoin, 2016], “it is a decentralized digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: transaction management and money issuance are carried out collectively by the network”. The system is decentralized since its supporting platform blockchain, comprises an infrastructure of multiple distributed servers, mutually linked by an instantaneous broadcasting protocol. Users perform transactions within the open and distributed community of registered users. Digital currency used in the system is not electronic form of fiat currency, but a special form of the currency generated and used only within the Bitcoin system. This concept is based on the notion that money can be interpreted as any object, or any sort of record, that is accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. Bitcoin system is designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities. There are several important requirements when making any type of payment and with any currency. The best example of a “perfect” payment transaction that meets all these requirements is payment using cash over-the-counter. When a consumer pays to a merchant using cash over-the-counter, such transaction satisfies all requirements and expectations of both parties. First, the transaction is instantaneous, as the paper bill is transferred hand-to-hand, from the consumer to the merchant. The transaction is cheap, in fact there is no overhead charge to perform transaction, so the merchant receives the full amount. The transaction is irreversible, what is the property beneficial to merchants. The transaction is legal, as the merchant can verify the legality of the paper bill. And, finally, the transaction is anonymous for the consumer as he/she does not need to reveal his/her identity. The only “problem” with cash over-the-counter is the cash itself, as using and handling cash has many disadvantages. Bitcoin concept and system solves all issues and problems with the use of cash, but at the same time provides all advantages when performing transactions using digital and communication technologies. So, paying with Bitcoins is effectively payment transaction that uses “digital cash over-the-counter”. The concept of the Bitcoin system provides all advantages and benefits mentioned above with payments using cash over-the-counter, but eliminates the problems of using cash. That is the reason why Bitcoins are often referred to as “digital cash”. One of significant features of payments using cash over-the-counter is that there are no thirdparties to participate or assist in the execution and validation of a transaction. This feature makes Bitcoin transactions very efficient and also very cheap to perform. Other types of todays payment systems, for instance using bank-to-bank account transfers or using bankcards, use many additional intermediate parties and use very complicated background infrastructure to validate and clear payment transactions. These infrastructures are complex to establish and operate, they are expensive, and they are vulnerable to attacks and penetrations by hackers. Bitcoin does not use such complex infrastructures, what is the reason that its transactions are efficient and cheap. An additional problem with third-party transaction players is that transaction parties must put the complete trust in all these parties without any means to verify their functionality, correctness, or security. Bitcoin system uses public-key cryptography to protect the currency and transactions. Logical relationships between transaction parties is direct, peer-to-peer, and the process of validating transactions is based on cryptographic proof-of-work. When performing a transaction, the net effect is that certain amount of Bitcoins is transferred from one cryptographic address to another. Each user may have and use several addresses simultaneously. Each payment transaction is broadcast to the network of distributed transaction processing servers. These servers collect individual transactions, package them into blocks, and send them for validation. Each block is cryptographically processed by the large number of so called “miners”. They each attempt to create cryptographic hash value that has special form. This is computationally very difficult and time-consuming task, therefore, it is very difficult to perform and repeat. Individual blocks are validated using cryptographic processing procedures that require substantial amount of work and computing power. Approximately an hour or two after submitting the transaction for validation, each transaction is locked in time and by cryptographic processing by the massive amount of computing power that was used to complete the block. When the block is validated, it is added to the chain of all previous blocks, thus forming a public archive of all blocks and transactions in the system. One of the most important problems with uncontrolled digital currency, where there are no third parties to validate and approve transactions, is so called doublespending. Since the currency is digital, stored at user’s local workstations, in mobile phones, or on network servers, it can be easily copied and sent to multiple recipients multiple times. Bitcoin system solves this problem with a very interesting approach. It is the first effective example of the solution for the double-spending problem without the need for assistance of any third party. Bitcoin solves this problem by keeping and distributing an archive of all transactions among all the users of the system via a peer-to-peer distribution network. Every transaction that occurs in the Bitcoin system is recorded in that public and distributed transactions ledger. Since the components in that ledger are blocks with transactions and the blocks are “chained” in time and in a cryptographic sequence, the ledger in the Bitcoin system is called blockchain. That full blockchain of all transactions that were performed in the Bitcoin system before the specific transaction can be used to verify new transactions. The transactions are verified against the blockchain to ensure that the same Bitcoins have not been previously spent. This approach eliminates the double-spending problem. The essence of the verification procedure for a single transaction in fact is the test of the balance of the sending account. The test is very normal and natural: payment of a certain amount of the currency can be made only of the balance of the outgoing account is equal or larger than the payment amount. Current balance of an account is established by tracing all incoming and outgoing transactions for that account. The procedure to verify the validity of individual transactions and to prevent double-spending is based on the use of special type of cryptographic protocol called public-key cryptography. With this type of cryptographic systems each user has two cryptographic keys. They are mutually related in the sense that, what ever the one key encrypts, the other key can decrypt. One of the two keys is a private key that is kept secret, and the other key is public key that can be shared with all other users in the system. When a user wants to make a payment to another user, the sender transfers certain amount of Bitcoins from his/her account to the account of the receiver. This action is performed by the sender by creating a payment message, called a “transaction,” which contains recipient’s public key – receiving address and payment amount. The transaction is cryptographically processed by the sender’s private key, the operation called digital signing, and as the result digital signature is created and appended to the transaction. By using sender’s private key every user in the system can verify that the transaction was indeed created by the indicated sender, as his/her private key can successfully decrypt the content of the digital signature. The exchange is authentic, since the transaction was also cryptographically processed with the recipient’s public key, the operation which is called digital enveloping. This transformation guarantees that the transaction can be accepted and processed only by the holder of the corresponding private key, which is the intended recipient. Every transaction, and thus the transfer of ownership of the specified amount of Bitcoins, is inserted, then time-stamped, and finally displayed in one “block” of the blockchain. Public-key cryptography ensures that all computers in the network have a constantly updated and verified record of all transactions within the Bitcoin network, which prevents double-spending and fraud.
1.2 The Concept and Features of the Bitcoin System
There are many concepts and even more operational payment systems today in the world. Some are standard paper–based, some are digital and network based. What makes Bitcoin unique and distinctive, compared with all other payment systems that are in use today, are several of its core features. The first of them is that the system uses its own currency. The reason for using its own currency is to make the system independent of financial institutions as trusted third parties. The unit of the currency is called Bitcoin. The currency is so called cryptocurrency, because it is generated and used based on execution of certain cryptographic algorithms and protocols. Performing specific cryptographic protocols is in the heart of operations to create new Bitcoins, to transfer them between transaction parties, and to validate the correctness of transactions. Since appearance of Bitcoins, several new systems were introduced that use cryptography to manage its own currency, so all such currencies represent the category of crypto currencies. Later in this Report, some other digital / virtual currencies will be described that are created and managed using some other principles, so they are not called crypto currency. At the time of writing this Report, all such digital virtual currencies were called with general term tokens, sometimes also digital assets tokens. The reason is that they were created by the process called collateralization and therefore they are related to the value of some categories of real world assets which is expressed in digital tokens units. The second interesting and important feature of the Bitcoin system is that the logical relationship between the two transaction parties is direct, peer-to–peer, i.e. there are no other parties that participate in the transaction. This is an important feature and benefit / advantage of the system that contributes to its efficiency when compared with the todays complex and expensive financial payment infrastructures and protocols. However, for distribution of transactions to their validators and later to all other members in the Bitcoin system the physical flow of each transaction is very complex and includes many parties. It should be emphasized that performing transactions as direct, peer-to–peer transfers is one of the key features and the most significant reason for many benefits and advantages of the Bitcoin system. This approach is the key feature of the Bitcoin system as it enables security and anonymity of parties, efficiency in performing transactions, scaling of the system, and instantaneous settlement of payments. Therefore, supporting execution and validation of serious business peer–to–peer transactions is one of the core benefits of the blockchain concept, as it changes the current paradigm of Internet applications and transactions. Currently all Internet applications are organized and performed as client–server transactions. Such transactions are not efficient, do not provide sufficient privacy of participants, have dependencies on third parties and usually are vulnerable due to attacks of functional problems with large centralized application servers. The next very important characteristic of the Bitcoin system is anonymity of users, their accounts, and transactions. This property means that the identities of the participants in the system are not known even to the partners performing a payment transaction. All other system operations – receiving payments, making payments, validating transactions, etc. are also performed anonymously. Interpreting this property correctly, the anonymity of transaction participants is so called pseudo-anonymity. Namely, in the process of validating transactions, all previous transactions of the sender are traced back to the original initial transaction. If that initial transaction was the purchase of Bitcoins at some Bitcoin Exchange, then the identity of the original owner of Bitcoins is known. Most if not all service providers in the Bitcoin system today require very strict identification of participants for the purpose of enforcing legal and regulated transactions and include certain restrictions of transaction frequency and amounts. This procedure, although understandable from the legal and regulatory point of view, has in fact in essence changed one of the core principles of the original concept of the Bitcoin system – full anonymity of users. Better solution for fully anonymous payment transactions is so called zero–knowledge protocol, where the identity and authorization to perform Bitcoin transactions, is validated by anyone without revealing any identity information of the parties. The only problem with this approach is revealing the identity of transaction participants to law enforcement authorities in case of illegal transactions. But, such authorities have special authorization under the law and they should be enabled to get identifying information about transaction participants in the process of legal law enforcement procedures. But, all other service providers do not have such status, so if Bitcoin principles are strictly followed, they should not be able to have identifying information about system participants. This approach and potential improvement of the Bitcoin system implies that the system needs one of the classical security services: role–based authorization. In such arrangement, there would be at least two categories of system participants: those that are authorized to maintain and access identifying information about the participants and those that are only authorized to perform transactions. In the first category are legal authorities, like police, driving license authorities, tax authorities, etc. In the context of the standard Identities Management Systems, such participants are called Identity Providers. All others are Identity Verifiers. Therefore, one of the main conclusions about true anonymity in the Bitcoin system is establishment of a sophisticated and multi-role Identities Management System, where some parties will be authorized Identity Providers and all others will be Identity Validators. Finally, referring back to the infrastructure of the Bitcoin system to perform and validate transactions – blockchain, the conclusion is that what is needed, as one of the most important extensions of the current concept of anonymity of Bitcoins participants, is an Identity Management System based itself on the use of blockchain and without Identity Providers as trusted third parties. Creation, distribution, use and validation of identities are transactions in the system, equivalent to payment transactions, so they should also be performed using blockchain protocol. Such system, that can provide reliable identities of all participants may be called Blockchain Identity Management System. Another very important feature of the original concept of the Bitcoin system is that it is not controlled by any financial institution, by any regulatory body or by any legal financial authority when it comes to issuing Bitcoins and determining their value. This means that the currency used in the system and all transactions are exempted from any legal and financial rules and regulations. The rules controlling Bitcoin system are built in its code. This property is usually called “rule by the technical code”, as the rules of system operations, built in the code of its operational components, control and rule the operations of the system [UK, 2016], Chapter 3. This property is sometimes described as “control by the community”, i.e. the participating users. This property implies that the value of Bitcoins is determined solely on the market – based on its supply and demand. This is quite natural approach, as the value of shares of companies are also determined on an open trading market. However, such approach implies that the value of Bitcoin, as crypto currency, is volatile related to fiat currencies. This property represent serious problem to perform payments using Bitcoin. It is well-known that volatile currencies are not suitable for payments. The practice of all the years while Bitcoins are in use has shown that its volatility represents one of the major obstacles for its main purpose – to be used as the payment system. In fact, it was announced that in 2019 the total value of Bitcoin transactions performed was about $ 11 T. However, unfortunately, only about 1.3% of those transactions were payments, all others were trading manipulations on exchanges. Based on that, it may be clearly stated that Bitcoin today is not used as the payment system, but as currency manipulation system. This is one of the main problems with the concept and current implementation and deployment of Bitcoin system and in near future may represent the main reason for its decline in popularity.
1.3 Innovative Contributions of the Bitcoin System
Besides an effective procedure to transfer an amount of crypto currency from one user (account) to another user (account), the major and indeed an essential contribution of the concept of the Bitcoin is the solution to the general problem how to establish trust between two mutually unknown and otherwise unrelated parties to such an extent and certainty that sensitive and secure transactions can be performed with full confidence over an open environment, such as Internet. In all current large scale and not only financial systems that problem is solved by using the assistance of thirdparties. For many (may be even all) current Internet applications and transactions those third parties are integrated and linked into a large, complex, expensive and vulnerable operational infrastructures. Examples of such infrastructures today are bankcard networks supporting global international payments, global international banking networks supporting international financial transfers, Public–Key Infrastructures (PKI), Identity Management Systems, and many others. It is a general consent that such infrastructures are expensive and, more important, vulnerable to external and internal attacks. In addition to the complexity and vulnerabilities of such current operational supporting infrastructures, another requirement and prerequisite to use their services is that users must put the complete trust in these third parties. Accepting to trust those third–party service providers is the necessary and mandatory prerequisite to use their services. Therefore, one of the most important contributions of the concept of Bitcoin is that it solves the issue how two parties, mutually unknown to each other in advance and otherwise completely unrelated, can perform sensitive and secure transactions, such as transfer of money – payments, but without assistance of any third party and without the need to place trust in any component of the system. The practical benefits of solving this problem and the most important consequence of the solution for this problem – Bitcoin system, is that it provides the possibility for one Internet user to transfer not only Bitcoins, but also any other form of digital asset to or shared with another Internet user, such that the transfer is guaranteed to be safe and secure, that everyone knows that the transfer has been performed, and nobody can challenge the legitimacy of the transfer. This feature of the Bitcoin system generated many very new, creative and innovative ideas where the concept equivalent to the Bitcoin can be used to perform secure and reliable transactions between users in an open community handling any type of digital asset ([Andreesen, 2014], [Sparkes, 2014], [UniCredit, 2016], [BitID, 2015], [PoE, 2015]). The examples of such applications and transactions range from commercial transitions, real estate transactions, energy trading, electronic voting, medical applications, and many others ([Kounelis, 2015], [Muftic, 2016]). The concept of blockchain as technology supporting validation of all such transactions is therefore called disruptive technology. As the conclusion in this section, we may give a definition of blockchain: Blockchain is an innovative concept, implemented as an infrastructure comprising multiple and distributed servers, mutually linked by special broadcasting and synchronization protocols, managing immutable objects with the purpose to enable and protect secure peer–to–peer transactions in a global and open environment.
1.4 Summary of Problems and Potential Solutions
In section 1.2 several problems of the Bitcoin system were mentioned and potential solutions for these problems were outlined. Recently, at the time of writing this Technical Report, several sources, mainly personal blogs and articles, appeared with very interesting opinions and statements regarding some other serious Bitcoin problems. Some of them are problems with the concept of the system, some problems of its design, and some problems of operations. In this section some of these problems are briefly summarized including suggestions for their potential solutions. The source of some problems was the article [Ein, 2018]. Problem 1: Complex Crypto Algorithms Problem: Bitcoins is crypto currency and cryptographic algorithms used in the current version are very complex, based on the concept of proof–of–work, and require long time, special hardware and a lots of energy to perform Potential Solution: Potential solution fro this problem is to use cryptographic algorithms that are simpler and therefore more efficient to execute and need less energy Problems with Potential Solution: Lowering the complexity of crypto algorithms introduces vulnerability to hackers. Therefore, what is needed are strong algorithms and simple to perform for regular users and complex to break by hackers Problem 2: Indirect Transactions, not Peer–to–Peer Problem: Contrary to the concept claimed, in todays implementation Bitcoin payment transactions are not performed as direct, peer–to–peer transactions. They are performed indirectly, submitted to the Bitcoin network, and recipients receive them indirectly, by downloading validated transactions from the ledger Potential Solution: Transactions should be performed directly, by transferring them directly between two users Problems with Potential Solution: The problem with the potential solution is validation of transaction for proof of possession of Bitcoins by the sender and for prevention of double-spending. Therefore, what is needed is the protocol to validate peer–to–peer transactions. Problem 3: Anonymity of Users not provided Problem: Contrary to the concept claimed, in todays deployments of additional system components, mainly exchanges, users are not anonymous Potential Solution: Blockchain–based Distributed Identity Management System with Role-based Authorizations Problems with Potential Solution: The problem with potential solution is that it depends on trusted third parties with authorized roles. Therefore, what is needed is blockchain-based Identity Management System using hybrid (permissioned and unpermissioned) blockchain Problem 4: Volatile Value, not suitable for Payments Problem: Contrary to the concept claimed that Bitcoin is payment system, volatile value of the currency makes it inconvenient for payments Potential Solution: Crypto currency with stable value Problems with Potential Solution: The problem with the potential solution is that the value of Bitcoins is determined on the secondary market, during its trading (cash-in / cash-out). Therefore, what is needed is crypto currency that does not have volatile value The remaining problems in this section are quoted from [Ein, 2018]: Problem 5: Negative Environmental Impact Problem: Mining algorithms and operational facilities (“mining farms”) consume too much electrical energy, based on the “proof-of-work” protocol Potential Solution: Using mining algorithms that consume less energy, either as simpler / lighter crypto algorithms or using alternative crypto protocols to protect transactions integrity (“proof-of-stake”) Problems with Potential Solution: The problem with the potential solution is that simpler / lighter algorithms open vulnerabilities to hackers while alternative crypto protocols are not backward compatible with the current system Problem 6: Slow Performance (Delays) / Low Throughput Problem: Due to blocking and the designed time for protection of transactions (10 minutes) Bitcoin system has very slow performance – transactions are validated in about an hour and transaction processing throughput is about 7 transactions per second Potential Solution: Using transaction validation algorithms and protocols that do not need blocking of transactions, but transactions should be validated individually Problems with Potential Solution: There are no serious problems with the proposed potential solution Problem 7: Limited Number of Bitcoins Problem: Due hardware and other types of failures, the number of available Bitcoins in the system is constantly reducing Potential Solution: Potential solution could be to use smaller portions of Bitcoin (“Satoshi”) or introduce hard-fork by splitting the amount of available Bitcoins Problems with Potential Solution: The problems with the first solution that it is not user-friendly and the problem with the second solution is backwards compatibility. Problem 8: Real Value of Bitcoins Problem: The value of Bitcoins is purely psychological and reflects only pure market speculations Potential Solution: Potential solution could be to peg the value of Bitcoin to local fiat currencies in countries of deployments Problems with Potential Solution: The problems with the potential solution is that such Bitcoins would be a new class of Bitcoins, not traded on exchanges and not volatile At the end of this section, it is very interesting to quote two opinions about the future of Bitcoin and blockchain: [Ein, 2018]: “It seems that Bitcoin will likelycease to have meaningful value, defeating the whole point and philosophy imagined by Satoshi Nakamoto, the alleged inventor of Bitcoin. Its current value appears to be purely psychological, and the hype seems to be driven by irrational exuberance, greed and speculation. Modern human history has seen manybubbles, including the dot-com bubble, the housing bubble and even the tulip bubble. However, when these bubbles exploded, many excellent dot-com companies survived, most houses regained their value and tulips still have meaning and carry value in our lives today. But what will happen when the Bitcoin bubble bursts? Whatutility or residual valuewill Bitcoin have to consumers and businesses? Most likelynone. And this is the real problem with Bitcoin and crypto currencies. Bitcoin will likelygo down in historyas a great technological invention that popularized blockchain yetfaileddue to itsdesign limitations. Just like the industrial revolution was fueled by the combustion engine, Nakamoto’s most valuable contribution is theblockchain polymorphic enginethat will further accelerate innovation in the post-information age and immensely affect our lives”. This quote makes two very important and far–reaching predictions: (1) Bitcoin, as the payment system will disappear (“. . .will go down in history”), and (2) The most valuable contribution of the Bitcoin system is blockchain This article was written in 2018. It is very interesting to notice that at the time of writing this Technical Report, (1) Bitcoin was still “alive” and (2) the concept and deployments of blockchain were in serious trouble. Based on the principle of positive and creative approach, in the rest of this Technical Report, besides description of all technical details of the Bitcoin system, some potential solutions for its improvement will also be discussed. However, contrary to the predicted status of Bitcoin, it seems that the predicted status of blockchain, in 2020 was still facing serious problems. [Barber, 2019]: What's Blockchain Actually Good for, Anyway? For Now, Not Much “Not long ago, blockchain technology was touted as a way to track tuna, bypass banks, and preserve property records. Reality has proved a much tougher challenge”.
[Lucanus, 2020]: Has Blockchain Failed Before It Even Really Began?
“Just as everyone was getting really excited about its potential, it appears blockchain is dead. For a technology that was supposed to transform and solve seemingly every problem in the world, the enthusiasm is fading pretty quickly”. At the time of writing this Technical Report, there were many new blockchain – concepts, design and even several deployed and operational instances. Some of them are even very popular, but only among enthusiastic developers. The overall trends with real life deployments, and more and more comments about the capabilities and features of blockchains are appearing with negative connotation. Therefore, seems that even for blockchain some innovative concepts and approaches are needed. They are beyond the scope of this Technical Report and will be addressed in some of our follow-up reports.
LongWaited A Cryptocurrency Beginner’s Guide to Altcoins!
Welcome to the exciting (and sometimes confusing) world of virtual currency. Alternative cryptocurrencies, like Bitcoin, have revolutionized the way we think about money ever since Bitcoin lead the way for the first wave of cryptocurrencies. https://preview.redd.it/w885i70z8cj31.png?width=982&format=png&auto=webp&s=1967f8ac45eb297dff080428da086f0891d549a4 At one point, Bitcoin was the only cryptocurrency around, and now, there are thousands. Bitcoin has become the leader that other altcoins follow and remains the most widely accepted virtual currency to date. Whether you are a financial wizard or average person, anyone can join the cryptocurrency game. The key to understanding and exceling at cryptocurrency is knowledge. Each of the following cryptocurrencies attempt to improve on existing technological solutions. Cryptocurrencies can fulfill many functions, and they aim to work on issues ranging from storing medical data to providing anonymous financial transactions. Many provide a decentralized network allowing efficient anonymous transactions, and in addition, there are Virtual Private Networks (VPNs) that can help ensure security. What are Cryptocurrencies? A cryptocurrency is a form of digital currency that comes as a “coin” or “token”. They are largely intangible and were originally designed to be free of a central regulatory authority, like a bank or government agency. At first, it was criticized by the traditional finance industry, but now many are embracing blockchain technology. Cryptography uses mathematical equations to ensure that the tokens are securely created, stored, and transferred. Anonymity and decentralization are the key components to most cryptocurrencies, and this is why the cryptocurrency world continues to grow in popularity.
Types of Altcoins:
Bcash (BCH) Bcash originated out of an early hard fork of bitcoin. A fork is when developers and miners of a cryptocurrency disagree on the cryptocurrency’s mining and transaction process, and when this occurs, the currency “splits”. Some developers and investors will choose to follow the original code while others will support the currency’s new “update”. As a result of such a fork, Bcash launched in 2017. BCH was created to increase the scalability of Bitcoin from one megabyte to eight megabytes which allows for larger transactions. It also removed the Segregated Witness protocol that is used in Bitcoin, which limited the block space available for transactions. Ethereum (ETH) Founded in 2015, Ethereum is one of the giants that followed Bitcoin. Ethereum is a decentralized platform that allows you to execute smart contracts and build applications, and you can essentially build other cryptocurrencies off the Ethereum platform. Its token is known as ether, and ether is used by other developers to run their own applications or as a token to buy other cryptocurrencies. In 2014, Ethereum had its first official presale. This was essentially the first initial coin offering (ICO), and these are now a popular source of funding within the industry. After 2016, Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC), and it is still one of the most valuable coins on the crypto-market space. Zcash (ZEC) Launched in 2016, Zcash is based on a decentralized and open-sourced platform. Zcash prides itself on its ability to ensure privacy and transparency during each of its transactions, and it claims it is the “https” of the crypto world. Essentially, it is added privacy to already pre-existing crypto-transactions. They even offer an added feature of “shielded” transactions, which allow for further crypto-security. Zcash developers came up with an innovation called zk-SNARK, and this revolutionized the way cryptography is used to secure crypto transactions. Dash (DASH) Dash is a more private form of bitcoin and comes with features like DarkSend and InstantX that provide added support to protect anonymous transactions. It was originally known as Darkcoin and was renamed Dash in 2015. Dash allows you to make nearly untraceable transactions. It offers stronger anonymity than most cryptocurrencies and is based on a decentralized network. Founded in 2014, it was founded by Evan Duffield and quickly gained popularity among crypto-enthusiasts and investors. It differs from other coins in that it can be mined with either a GPU or CPU. Ripple (XRP) Founded in 2012, Ripple aims to work as a global network of low-cost payment transactions. XRP works to allow banks and individuals to make international payments at low costs while ensuring a high level of transparency. You cannot mine ripple which helps reduces latency issues. It also decreases the need for high computing strength that some other coins need for mining. Many popular banks have already adapted Ripple technology for cross-border payments because it is the most popular cryptocurrency for traditional investors. Traditional investors understand ripple’s utility as an efficient method of cross-border transactions. Neo (NEO) Originally known as Antshares, Neo was founded in 2014. Called the “Chinese Ethereum”, it is the largest Chinese cryptocurrency. It utilizes smart contracts in a similar way to ETH. Neo owes much of its success to its ability to support multiple programming languages on its platform. EOS (EOS) Launched in June 2018, EOS is one of the newer currencies, and it was created by a well-known mind in the blockchain world, Dan Larimer. Before starting EOS, Larimer started and popularized Steemit which is a popular social media site that was founded on blockchain technology. EOS is founded on the same platform as Ethereum. During their ICO, EOS was able to generate close to $4 billion in funding, which is one of the highest recorded. Its proof-of-stake system aims to provide more scalability than other currencies. Also, EOS differs in that there is no mining. To replace the need for miners, block producers are rewarded in tokens depending on their rate of production. Cardano (ADA) In 2017, Cardano was founded by a co-founder of Ethereum. Carles Hoskinson hoped to combine the benefits of Ethereum as well as fulfill several other functions. ADA looks to solve the issues that come with other digital tokens by focusing on interoperability. They also hope to solve problems of scale. ADA has the ability to make financial transactions in mere seconds, when before it could take days, and this is an added benefit to those in the cryptocurrency industry. Monero (XMR) Designed to be an anonymous currency, XMR is focused on security and privacy. It was one of the older altcoins to become fully established after being founded in 2014. Unlike other virtual currencies, monero’s funding is completely dependent on grassroots community funding. XMR utilizes a rather unique technique known as “ring signatures”. With ring signatures, transactions using XMR have added anonymity. A group of cryptographic signatures will appear with each transaction, but only one of which is the “real” one. They all seem as if they were completely valid, which provides more security, and for people seeking private transactions, this is a draw to use the form of XMR for cryptocurrency. Litecoin (LTC) One of the more well-known altcoins, Litecoin has been around since its founding in 2011. Its founder, Charlie Lee, formerly worked as a Google engineer and is a well-respected figure in the blockchain-sphere. LTC is open-source and utilizes scrypt as proof-of-work. Litecoin is very similar to Bitcoin but works much faster, and it can generate blocks quicker and can confirm transactions at a higher rate. Litecoin has been adopted and endorsed by banking companies around the world because of the benefits it offers to users. Original Blog Post Link: https://torguard.net/blog/a-cryptocurrency-beginners-guide-to-altcoins/
What is the best form of cryptocurrency in which to begin investing?
If you are a noob then start with low investment. It gives you two benefits
Experience and Knowledge both are valuable things in every field of life. Learn why cryptocurrency’s trend goes up and down. When you buy the coins and when you sell them. Start with low price currency then after taking knowledge go for big one. If you are just beginner do not direct invest in Bitcoin. I have a list of 10 Cryptocurrencies that are important other than Bitcoin: 1. Litecoin (LTC) Litecoin, launched in 2011, was among the initial cryptocurrencies following bitcoin and has often been referred to as “silver to bitcoin’s gold.” It was created by Charlie Lee, an MIT graduate, and former Google engineer. Litecoin is based on an open-source global payment network that is not controlled by any central authority and uses "scrypt" as a proof of work, which can be decoded with the help of CPUs of consumer-grade. 2. Ethereum (ETH) Launched in 2015, Ethereum is a decentralized software platform that enables Smart Contracts and Distributed Applications (DApps) to be built and run without any downtime, fraud, control or interference from a third party. The applications on ethereum are run on its platform-specific cryptographic token, ether. Ether is like a vehicle for moving around on the ethereum platform and is sought by mostly developers looking to develop and run applications inside ethereum, or now by investors looking to make purchases of other digital currencies using ether. 3. Zcash (ZEC) Zcash, a decentralized and open-source cryptocurrency launched in the latter part of 2016, looks promising. “If bitcoin is like HTTP for money, zcash is HTTPS," is one analogy zcash uses to define itself. Zcash offers privacy and selective transparency of transactions. Thus, like https, zcash claims to provide extra security or privacy where all transactions are recorded and published on a blockchain, but details such as the sender, recipient, and amount remain private. 4. Dash (DASH) Dash (originally known as darkcoin) is a more secretive version of bitcoin. Dash offers more anonymity as it works on a decentralized master code network that makes transactions almost untraceable. Launched in January 2014, dash experienced an increasing fan following in a short span of time. This cryptocurrency was created and developed by Evan Duffield and can be mined using a CPU or GPU. In March 2015, ‘Darkcoin’ was rebranded to Dash, which stands for “digital cash” and operates under the ticker DASH. 5. Ripple (XRP) Ripple is a real-time global settlement network that offers instant, certain and low-cost international payments. Launched in 2012, ripple “enables banks to settle cross-border payments in real-time, with end-to-end transparency, and at lower costs.” Ripple’s consensus ledger (its method of conformation) is unique in that it doesn’t require mining. In this way, ripple sets itself apart from bitcoin and many other altcoins. Since Ripple’s structure doesn't require mining, it reduces the usage of computing power and minimizes network latency. Ripple believes that “distributing value is a powerful way to incentivize certain behaviors” and thus currently plans to distribute XRP primarily “through business development deals, incentives to liquidity providers who offer tighter spreads for payments, and selling XRP to institutional buyers interested in investing in XRP.” 6. Monero (XMR) Monero is a secure, private and untraceable currency. This open-source cryptocurrency was launched in April 2014 and soon spiked great interest among the cryptography community and enthusiasts. The development of this cryptocurrency is completely donation-based and community-driven. Monero has been launched with a strong focus on decentralization and scalability, and it enables complete privacy by using a special technique called “ring signatures.” With this technique, there appears a group of cryptographic signatures including at least one real participant, but since they all appear valid, the real one cannot be isolated. Because of exceptional security mechanisms like this, monero has developed something of an unsavory reputation; it has been linked to criminal operations around the world. 7. Bitcoin Cash (BCH) Bitcoin Cash holds an important place in the history of altcoins because it is one of the earliest and most successful hard forks of the original bitcoin. In the cryptocurrency world, a fork takes place as the result of debates and arguments between developers and miners. Due to the decentralized nature of digital currencies, wholesale changes to the code underlying the token or coin at hand must be made due to general consensus; the mechanism for this process varies according to the particular cryptocurrency. When different factions can’t come to an agreement, sometimes the digital currency is split, with the original remaining true to its original code and the other copy beginning life as a new version of the prior coin, complete with changes to its code. Bitcoin cash began its life in August of 2017 as a result of one of these splits. The debate which led to the creation of BCH had to do with the issue of scalability; bitcoin has a strict limit on the size of blocks, 1 megabyte. BCH increases the block size from 1 MB to 8 MB, with the idea being that larger blocks will allow for faster transaction times. It also makes other changes, too, including the removal of the Segregated Witness protocol which impacts block space. 8. NEO (NEO) NEO began life in 2014. Originally called AntShares, the coin was later rebranded by creator Da Hongfei. To date, it is the largest cryptocurrency which has emerged from China and is sometimes referred to as a “Chinese Ethereum” because of its similar use of smart contracts. In 2017, NEO experienced its most successful year to date. From a value of $0.16 per token in January of 2017, NEO climbed to about $162 per token by one year later. This constitutes a return of more than 111,000%. One key to NEO’s success has been its support of programming in many existing languages, including Go, Java, C++, and others. 9. Cardano (ADA) Charles Hoskinson, one of the co-founders of ethereum, launched cardano in September of 2017. For supporters of this digital currency, ADA offers all of the benefits of ethereum, as well as many others. Cardano offers a platform for Dapps and smart contracts, like ethereum before it. Beyond that, ADA aims to solve some of the most pressing problems plaguing cryptocurrencies everywhere, including interoperability and scalability. Cardano also hopes to tackle issues related to international payments, which are typically both timely and expensive. 10. EOS (EOS) One of the newest digital currencies to make our list is EOS. Launched in June of 2018, EOS was created by cryptocurrency pioneer Dan Larimer. Before his work on EOS, Larimer founded the digital currency exchange Bitshares as well as the blockchain-based social media platform Steemit. Like other cryptocurrencies on this list, EOS is designed after ethereum, so it offers a platform on which developers can build decentralized applications. EOS is notable for many other reasons, though. First learn then investing in crypto
Hi Bitcoiners! I’m back with the eleventh monthly Bitcoin news recap. For those unfamiliar, each day I pick out the most popularelevant/interesting stories in bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best), memeless overview of what happened in bitcoin over the past month. You can find recaps of the previous months on Bitcoinsnippets.com A recap of Bitcoin in November 2017
Final version 1.3.0 of the core software was released bringing all the enhancements reported last month to the rest of the community. The groundwork for SPV (simplified payment verification) is complete, another reduction of fees is being deployed, and performance stepped up once again with a 50% reduction in startup time, 20% increased sync speed and more than 3x faster peer delivery of block headers (a key update for SPV). Decrediton's integrations of SPV and Politeia are open for testing by experienced users. Read the full release notes and get the downloads on GitHub. As always, don't forget to verify signatures. dcrd: completed several steps towards multipeer downloads, improved introduction to the software in the main README, continued porting cleanups and refactoring from upstream btcd. Currently in review are initial release of smart fee estimator and a change to UTXO set semantics. The latter is a large and important change that provides simpler handling, and resolves various issues with the previous approach. A lot of testing and careful review is needed so help is welcome. Educational series for new Decred developers by @matheusd added two episodes: 02 Simnet Setup shows how to automate simnet management with tmux and 03 Miner Reward Invalidation explains block validity rules. Finally, a pull request template with a list of checks was added to help guide the contributors to dcrd. dcrwallet: bugfixes and RPC improvements to support desktop and mobile wallets. Developers are welcome to comment on this idea to derive stakepool keys from the HD wallet seed. This would eliminate the need to backup and restore redeem scripts, thus greatly improving wallet UX. (missed in July issue) Decrediton: bugfixes, refactoring to make the sync process more robust, new loading animations, design polishing. Politeia: multiple improvements to the CLI client (security conscious users with more funds at risk might prefer CLI) and security hardening. A feature to deprecate or timeout proposals was identified as necessary for initial release and the work started. A privacy enhancement to not leak metadata of ticket holders was merged. Android: update from @collins: "Second test release for dcrandroid is out. Major bugs have been fixed since last test. Latest code from SPV sync has been integrated. Once again, bug reports are welcome and issues can be opened on GitHub". Ask in #dev room for the APK to join testing. A new security page was added that allows one to validate addresses and to sign/verify messages, similar to Decrediton's Security Center. Work on translations is beginning. Overall the app is quite stable and accepting more testers. Next milestone is getting the test app on the app store. iOS: the app started accepting testers last week. @macsleven: "the test version of Decred Wallet for iOS is available, we have a link for installing the app but the builds currently require your UDID. Contact either @macsleven or @raedah with your UDID if you would like to help test.". Nearest goal is to make the app crash free. Both mobile apps received new design themes. dcrdata: v3.0 was released for mainnet! Highlights: charts, "merged debits" view, agendas page, Insight API support, side chain tracking, Go 1.11 support with module builds, numerous backend improvements. Full release notes here. This release featured 9 contributors and development lead @chappjc noted: "This collaboration with @raedahgroup on our own block explorer and web API for @decredproject has been super productive.". Up next is supporting dynamic page widths site wide and deploying new visual blocks home page. Trezor: proof of concept implementation for Trezor Model T firmware is in the works (previous work was for Model One). Ticket splitting: updated to use Go modules and added simnet support, several fixes. docs: beginner's guide overhaul, multiple fixes and cleanups. decred.org: added 3rd party wallets, removed inactive PoW pools and removed web wallet. @Richard-Red is building a curated list of Decred-related GitHub repositories. Welcome to new people contributing for the first time: @klebe, @s_ben, @victorguedes, and PrimeDominus! Dev activity stats for September: 219 active PRs, 197 commits, 28.7k added and 18.8k deleted lines spread across 6 repositories. Contributions came from 4-10 developers per repository. (chart)
Hashrate: started and ended the month around 75 PH/s, hitting a low of 60.5 and a new high of 110 PH/s. BeePool is again the leader with their share varying between 23-54%, followed by F2Pool 13-30%, Coinmine 4-6% and Luxor 3-5%. As in previous months, there were multiple spikes of unidentified hashrate. Staking: 30-day average ticket price is 98 DCR (+2.4). The price varied between 95.7 and 101.9 DCR. Locked DCR amount was 3.86-3.96 million DCR, or 45.7-46.5% of the supply. Nodes: there are 201 public listening nodes and 325 normal nodes per dcred.eu. Version distribution: 5% are v1.4.0(pre) dev builds (+3%), 30% on v1.3.0 (+25%), 42% on v1.2.0 (-20%), 15% on v1.1.2 (-7%), 6% on v1.1.0. More than 76% of nodes run v1.2.0 and higher and therefore support client filters. Data as of Oct 1.
Obelisk posted two updates on their mailing list. 70% of Batch 1 units are shipped, an extensive user guide is available, Obelisk Scanner application was released that allows one to automatically update firmware. First firmware update was released and bumped SC1 hashrate by 10-20%, added new pools and fixed multiple bugs. Next update will focus on DCR1. It is worth a special mention that the firmware source code is now open! Let us hope more manufacturers will follow this example. A few details about Whatsminer surfaced this month. The manufacturer is MicroBT, also known as Bitwei and commonly misspelled as Bitewei. Pangolinminer is a reseller, and the model name is Whatsminer D1. Bitmain has finally entered Decred ASIC space with their Antminer DR3. Hash rate is 7.8 TH/s while pulling 1410 W, at the price of $673. These specs mean it has the best GH/W and GH/USD of currently sold miners until the Whatsminer or others come out, although its GH/USD of 11.6 already competes with Whatsminer's 10.5. Discussed on Reddit and bitcointalk, unboxing video here.
@matheusd started tests on testnet several months ago. I contacted him so we could integrate with the pool in June this year. We set up the machine in July and bought the first split ticket on mainnet, using the decredbrasil pool, on July 19. It was voted on July 30. After this first vote on mainnet, we opened the tests to selected users (with more technical background) on the pool. In August we opened the tests to everyone, and would call people who want to join to the #ticket_splitting channel, or to our own Slack (in Portuguese, so mostly Brazilian users). We have 28 split tickets already voted, and 16 are live. So little more than 40 split tickets total were bought on decredbrasil pool. (@girino in #pos-voting)
KuCoin exchange listed DCBTC and DCETH pairs. To celebrate their anniversary they had a 99% trading fees discount on DCR pairs for 2 weeks. Three more wallets integrated Decred in September:
Atomic desktop wallet added Decred in version 0.1.31. The team answered many questions on Reddit.
AnyBit wallet added Decred. It features built-in price and news tracking. Notably, the source code is open for their Android and iOS wallets.
Coboadded Decred support into their Android and iOS wallets.
ChangeNow announced Decred addition to their Android app that allows accountless swaps between 150+ assets. Coinbase launched informational asset pages for top 50 coins by market cap, including Decred. First the pages started showing in the Coinbase app for a small group of testers, and later the web price dashboard went live.
The birth of a Brazilian girl was registered on the Decred blockchain using OriginalMy, a blockchain proof of authenticity services provider. Read the full story in Portuguese and in English.
Advertising report for September is ready. Next month the graphics for all the ads will be changing.
Marketing might seem quiet right now, but a ton is actually going on behind the scenes to put the right foundation in place for the future. Discovery data are being analyzed to generate a positioning strategy, as well as a messaging hierarchy that can guide how to talk about Decred. This will all be agreed upon via consensus of the community in the work channels, and materials will be distributed. Next, work is being done to identify the right PR partner to help with media relations, media training, and coordination at events. While all of this is coming up to speed, we believe the website needs a refresher reflecting the soon to be agreed upon messaging, plus a more intuitive architecture to make it easier to navigate. (@Dustorf)
Raedah Group went on the streets of Portland, USA with a pretty blue tent. (photos)
Meetup at Binzantin Cafe in Taipei, Taiwan. @morphymore: "There were 20-ish attendees, and about half of them have joined the Chinese FB group. Most of them don't hear about Decred before, but have expressed the interest in learning more about it after the event. Overall, it's a good exposure for Decred in the Taiwan community.". A report with photos was posted on Facebook, more photos are here and here.
@joshuam made a Decred Jacket appearance at Singapore Grand Prix. (photos)
NewTech PDX meetup in Portland, USA. Raedah Group presented Decred and reported "lots of new converts". (photos)
North Shore Bitcoin & Blockchain in Glenview, USA. @dustorf gave a five minute overview of Decred and noted: "There were only about 25 people, but about 1/3 of them were aware of Decred prior. (...) Our simple presence and explanation of the project moved opinion from 'another shitcoin they sold after mining' to 'an interesting and viable project worthy of further investigation'.". (photos: 12)
Bitcoin Meetup CDMX in Mexico City on Oct 6. @elian will be talking about Decred at the oldest Bitcoin meetup in Mexico.
SF Blockchain Week in San Francisco, USA on Oct 9. @lukebp will discuss DPoS vs PoS on a panel 9:30a-10:15a at the Titans of Tech Stage, Hilton Union Square.
Decred Meetup in Casablanca, Morocco on Oct 27. @butterfly will host the event and talk about Decred in French.
Texas Bitcoin Conference Austin, USA on Oct 27-28. @BAB: "The great thing about this is that it will also be a Decred Summit. We will have half of the conference dedicated to Decred topics, updates, etc."
Websummit in Lisbon, Portugal on Nov 5-8. @moo31337 will be on a panel discussing "2018: A Rollercoaster Year for Cryptocurrencies"
We'll begin shortly reviewing conferences and events planned for the first half of 2019. Highlights are sure to include The North American Bitcoin Conference in Miami (Jan 16-18) and Consensus in NYC (May 14-16). If you have suggestions of events or conferences Decred should attend, please share them in #event_planning. In 2019, we would like to expand our presence in Europe, Asia, and South America, and we're looking for community members to help identify and staff those events. (@Dustorf)
August issue of Decred Journal was translated to Russian. Many thanks to @DZ! Rency cryptocurrency ratings published a report on Decred and incorporated a lot of feedback from the community on Reddit. September issue of Chinese CCID ratings was published (snapshot), Decred is still at the bottom. Videos:
The underbelly of blockchain Governance - fiat licensing and our code with Marco Peerboom and Chris DeRose (youtube, tweet, decred, missed in August issue) Insightful dialogue about men's underwear, licenses, subtleties of GPL, BSD wars, tiling window managers and much more.
Introduction to Decred (Korean, youtube) @Killawhale collected a lot of feedback from the community and produced this video to spread the word in Korea.
Perspectives on Governance from Nathan Wilcox, Jonathan Zeppettini, Vitalik Buterin (z.cash)
Decred - an example of governance (Portuguese, youtube)
Decred, the crypto that wants to compete with Bitcoin (French, youtube)
Exodus.io Live with Marco from Decred! (youtube) Marco joins Exodus.io to discuss what makes DCR an asset that will stand the test of time.
Building Decred With Systems Development Lead Marco Peereboom - Governance, Politeia, Lightning (youtube) Topics: early days, Politeia, the structure of Decred, dcrtime, Lightning Network, attracting users and developers, future plans (DEX, Schnorr signatures, privacy, DAEs).
Decentralized autonomous funding of blockchain projects by @Richard-Red (medium, discussion on decred and dashpay)
The trouble with infrastructure, "thin" protocols in particular, is that someone has to build them at a cost. e.g. LN takes a ton of work, doesn't necessarily generate value itself, but it magnifies the value of BTC or whatever coin that uses it. I see the DEX in a similar light - whoever creates it is not going to make a bunch of money from it, but it will magnify the value of the underlying asset(s) that end up having a deep order book on the DEX. (@jy-p in #dex)
Twitter: why decentralized governance and funding are necessary for network survival and the power of controlling the narrative; learning about governance more broadly by watching its evolution in cryptocurrency space, importance of community consensus and communications infrastructure. Reddit: yet another strong pitch by @solar; question about buyer protections; dcrtime internals; a proposal to sponsor hoodies in the University of Cape Town; Lightning Network support for altcoins. Chats: skills to operate a stakepool; voting details: 2 of 3 votes can approve a block, what votes really approve are regular tx, etc; scriptless script atomic swaps using Schnorr adaptor signatures; dev dashboard, choosing work, people do best when working on what interests them most; opportunities for governments and enterprise for anchoring legal data to blockchain; terminology: DAO vs DAE; human-friendly payments, sharing xpub vs payment protocols; funding btcsuite development; Politeia vote types: approval vote, sentiment vote and a defund vote, also linking proposals and financial statements; algo trading and programming languages (yes, on #trading!); alternative implementation, C/C++/Go/Rust; HFTs, algo trading, fake volume and slippage; offline wallets, usb/write-only media/optical scanners vs auditing traffic between dcrd and dcrwallet; Proof of Activity did not inspire Decred but spurred Decred to get moving, Wikipedia page hurdles; how stakeholders could veto blocks; how many votes are needed to approve a proposal; why Decrediton uses Electron; CVE-2018-17144 and over-dependence on single Bitcoin implementation, btcsuite, fuzz testing; tracking proposal progress after voting and funding; why the wallet does not store the seed at all; power connectors, electricity, wiring and fire safety; reasonable spendings from project fund; ways to measure sync progress better than block height; using Politeia without email address; concurrency in Go, locks vs channels. #support is not often mentioned, but it must be noted that every day on this channel people get high quality support. (@bee: To my surprise, even those poor souls running Windows 10. My greatest respect to the support team!)
In September DCR was trading in the range of USD 34-45 / BTC 0.0054-0.0063. On Sep 6, DCR revisited the bottom of USD 34 / BTC 0.0054 when BTC quickly dropped from USD 7,300 to 6,400. On Sep 14, a small price rise coincided with both the start of KuCoin trading and hashrate spike to 104 PH/s. Looking at coinmarketcap charts, the trading volume is a bit lower than in July and August. As of Oct 4, Decred is #18 by the number of daily transactions with 3,200 tx, and #9 by the USD value of daily issuance with $230k. (source: onchainfx) Interesting observation by @ImacallyouJawdy: while we sit at 2018 price lows the amount locked in tickets is testing 2018 high.
ASIC for Lyra2REv2 was spotted on the web. Vertcoin team is preparing a new PoW algorithm. This would be the 3rd fork after two previous forks to change the algorithm in 2014 and 2015. A report titled The Positive Externalities of Bitcoin Mining discusses the benefits of PoW mining that are often overlooked by the critics of its energy use. A Brief Study of Cryptonetwork Forks by Alex Evans of Placeholder studies the behavior of users, developers and miners after the fork, and makes the cases that it is hard for child chains to attract users and developers from their parent chains. New research on private atomic swaps: the paper "Anonymous Atomic Swaps Using Homomorphic Hashing" attempts to break the public link between two transactions. (bitcointalk, decred) On Sep 18 Poloniex announced delisting of 8 more assets. That day they took a 12-80% dive showing their dependence on this one exchange. Circle introduced USDC markets on Poloniex: "USDC is a fully collateralized US dollar stablecoin using the ERC-20 standard that provides detailed financial and operational transparency, operates within the regulated framework of US money transmission laws, and is reinforced by established banking partners and auditors.". Coinbase announced new asset listing process and is accepting submissions on their listing portal. (decred) The New York State Office of the Attorney General posted a study of 13 exchanges that contains many insights. A critical vulnerability was discovered and fixed in Bitcoin Core. Few days later a full disclosure was posted revealing the severity of the bug. In a bitcointalk thread btcd was called 'amateur' despite not being vulnerable, and some Core developers voiced their concerns about multiple implementations. The Bitcoin Unlimited developer who found the bug shared his perspective in a blog post. Decred's vision so far is that more full node implementations is a strength, just like for any Internet protocol.
About This Issue
This is the 6th 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 also welcome: some areas are adding content, pre-release review or translations to other languages. Credits (Slack names, alphabetical order): bee, Dustorf, jz, Haon, oregonisaac, raedah and Richard-Red.
There is a discussion about nodes that came up today, where it seems I'm discouraging people from running the full QT/Core client. Yes and No. What I'm trying to make sure people understand is how things work, and that it is NOT mandatory to run a client in order to use Dogecoins (and yes, I realise that browser-based tools like coinb.in and wallet sweepers are 'clients' by strict definition). That said, more nodes is absolutely a good thing for the network. Preferrably full nodes. How do you run a full node? Just run Core/QT and open up Port 22556 on your router so it can connect to more than 8 peers. What will it cost you? You need your machine to be on 24/7/365, you need enough storage for the full blockchain (currently about 20Gb. Bitcoin is over 120Gb) and enough bandwidth to keep it in sync and share blocks with peers. A couple of Gb a month, most likely. This is best done with a desktop on a wired broadband link. Or maybe a hosted VM in the cloud. :)
EDIT 2017-01-09: Wallets WITHOUT Clients
Since I started helping people on /BitcoinBeginners, I'm getting a lot of questions about how to use wallets without running clients or trusting third parties. So here are a couple of resources that will make that possible, and not just for Dogecoin: Multi-Coin Wallet GeneratorNow supporting 129 currencies!Coinb.in Start by setting the currency, found in the gear wheel in the Broadcast tab. Dogecoin Wallet Sweeper Redeem 'paper' wallets containing up to about 100 UTXOs. Bitinfo Charts My favourite block explorer, handles a bunch of cryptos. Using these resources, it is possible to hold, receive and spend coins in various currencies, without having to run QT or a 'lite' client. You can also download and run the pages on your own device.
EDIT 2016-11-23: SEMANTICS about MINING! :P
Even though there is already a section on mining below, it has been suggested given the huge number of posts on the subject that this needs to be made clearer. Since people get their panties in a twist over the word 'dead', lets change that...
MINING IS DEAD!
MINING DOGECOIN IS UNPROFITABLE!
Put simply, there is no way to mine Dogecoin and make a profit because of the massive hashpower provided by industrial-scale Litecoin miners. Mining Doge directly stopped being viable when our hashrate exploded with the introduction of AuxPoW. Mining with CPU's and GPU's died when ASICs were introduced. And mining with a laptop WILL kill your laptop and cost you a fortune to repair or replace. Mining Litecoin with an exchange that also mines Doge and others will earn less than the electricity consumed, and you won't recover your costs. Probably ever, but certainly not in any reasonable time. Mining other currencies may be a thing, but that's beyond our scope here. This is /Dogecoin, not /GetRichMiningCryptos after all. If you want to mine the newest scamcoin for fun and profit, look elsewhere for advice. :/ Oh, and most important:
READ BEFORE YOU POST!
At any given time, there are half a dozen posts on the frontpage just like the one you're about to write, where the answers have already been given. Read them. Don't make people waste their time repeating themselves because you were too lazy to bother reading stuff. :P So there I was, having a quiet Sundy arvo bludge, as you do, when 42points turned up on Facebook and asked me to write a new sticky post for /dogecoin. Why would he do this, when he should be having a bludge himself, I hear you ask? Well, seems he was doing exactly that, and wanted to fob off the work he’s too slack to do himself. ;) Ah well, being a sucker for punishment, I’ll grudgingly oblige I guess. OK, first things first.
A client is a piece of software you keep on your computer which holds one or more wallets. Here are the current client versions. If you're using an older client please upgrade to the newest version prior to sending/receiving coins. Backup! Backup! Backup your wallet.dat file or private key so you can import them into the latest version of the client.
Be warned that unless you’re running Core (aka QT), you could have issues with wallets containing lots of UTXOs (Unspent Transaction Outputs - Where your coins REALLY live). Go read the ELI5 below, and keep a close eye on your transaction counts. If you DO run Core, realise that all full clients, regardless of the coin, require a copy of the blockchain and must keep it up to date. This will cost you time, storage space and bandwidth. You can save a little by downloading the bootstrap file though. I haven’t checked how recent this one is, so let me know if you find a more current version.
OK, so next, grab this wallet generator. Even if you plan on running a client(s). Because a) it does many, many cryptocurrencies, and b) you WILL need wallets at some stage over and above what you keep in your clients. Just be sure to run it locally (and offline if you’re truly paranoid).
Oh, and here’s a simple way to keep track of all your wallets using HTML. You can grab the source and modify it, then upload it wherever you need to suit your needs. You will also want a separate file with your private keys, but don’t upload that one anywhere, because if you lose your keys or someone else gets access to them, you will lose your coins.
Next, be aware that there are online wallets available. While any wallet you don’t own the keys to isn’t actually yours, and therefore isn’t safe, the following are safer than most. Dogetipbot of course is used daily by shibes on Reddit. Block.io uses multisig and gives you Doge, BTC and LTC wallets as well as testnets, and Dogechain gives you your private keys (and also offers a wallet sweeping service).
Exchanges also offer wallets, of course. Not that you should use them to store your hard-earned coins, because they can and do get hacked with monotonous regularity. But at some stage you’re going to want to trade, or hold a few uncommon coins. You could do worse than these three:
And then there’s the obligatory question of mining. Put simply, mining is for all intents and purposes dead, and has been for a long time now. The costs are greater than any possible returns. But, if you insist on doing it anyway, maybe because you inherited a miner, you can earn about 0.01 LTC/day per MH/s merge-mining at Litecoinpool. That’s about 4 cents. :(
Shibes sometimes complain that the devs are not as active in /dogecoin as they used to be. You can find them on IRC, slack or their very own sub if you need them though. Or poke sporklin, who can often help.
You can of course ask any questions here, or post them in the sub. However, do try searching first, because I guarantee every possible question has been asked many times before. And you should also subscribe and hang out in /dogeducation occasionally. There’s much awesomeness there.
From peoplma I was wondering if you could add just a couple things. A link to the coinomi android wallet, it's probably the best one out there. And a sentence somewhere along the lines of "if you need help with any dogecoin software you are welcome to make a post, but PLEASE include your OS, version number of the client, and any relevant transaction IDs that you are willing to share" if you can fit that in somewhere. Also, if you want to link to Prohashing, I'm pretty sure it's the only Scrypt mining pool that will actually pay out in doge. The others I know of pay out in litecoin or bitcoin. And it's a profit switching multipool, so gives a better return than just mining ltc/doge. And there's these two wiki articles I thought would be helpful to link /dogecoin/wiki/technical for those technically minded newbies or intermediate users who want to dig a little deeper. And maybe a link to /dogecoin/wiki/dogecoincoreguide next to the link for dogecoin core. From pts2002 Finally a proper sticky post! Here's some other stuff you could add: zpool.ca mining pool - You can get paid in pretty much any coin, and you can mine in multiple algos (currently mining lyra2v2 with my GPU). Doing about 500Ð/day shapeshift.io exchange - My favourite exchange, quick and easy. No registration required! Also, you should add some blockchain explorers! chain.so - Support for bitcoin, litecoin and doge. dogechain.info - Official blockchain explorer. Includes a wallet (already mentioned). Live update currently not working (?) EDIT: Here's another thing I found! preev.com currency value calculator - Easy way to check the value of your dogecoins (or bitcoins, or litecoins, or peercoins)!
Disclaimer Ive written a bit of an essay, be aware that I'm not an expert in this field. I've been interested in crypto for about 6 months and have enjoyed understanding (or trying to understand) potential avenues this technology can take in the future. I'm not a programmer, I don't know anything about coding, those who are savvy in computer science might find what I've written hard to get through, or perhaps just plain stupid at times, if you do, I would love to be told where I'm wrong, and why I'm stupid (be blunt, I really want that, I can take it, its not rude if I ask for it). This was written for beginners, by a beginner (a recipe for disaster perhaps), and might just have been an exercise for me to consolidate my current understanding of coloured coins and their potential. Do not use me or anything I've said as a sole source of information, I'm new, and theres so many smarter people within this space to learn from. Having said all that, here is my understanding of coloured coins and the potential they bring to the world when added to the Bitcoin (Cash) blockchain.
I've recently seen a revival of the concept of coloured coins being implemented onto the Bitcoin Cash blockchain. My, basic understanding of this is that, in much the same way bank notes have serial numbers, the path that a Bitcoin has travelled can be tracked. Lets say you receive a $100 dollar note with a serial number 1234567890, this number, due to human psychology and pattern recognition makes for an item (no longer money) worth significantly more than $100. Another possible implication of this serial number property of physical cash is this idea of a note representing a physical non cash item such as a ticket. Lets say you are hosting a sporting event at a stadium that sits 50,000 people. If we have a serial number system of money with 500,000 $1 notes circulating, then, without selling printed tickets, you could say that one seat in your sporting event is exchangeable for a dollar note with serial number ending in 0. You've now, without the use of a printer, created a system of payment and scarcity of property on top of the currency.
This doesn't happen, because paper tickets are easy to print and society tends not to value serial numbers on paper cash, with few exceptions for collectors.
But the idea is there and can be translated into Bitcoin with interesting uses. Lets explore how this can work. Well lets say 2 people have 1 Bitcoin each. One persons Bitcoin is a random Bitcoin that was mined in 2015 by an unknown miner, its been spent, its been held, theres nothing particularly noteworthy about the places or wallets this Bitcoin has traveled when we take a look at its history on the blockchain. Now, the other Bitcoin is 1 of 50 that was conjured up in the first transaction reward on the first block mined by Satoshi Nakomoto. Its been moved once, to this new address and, by checking the blockchain we can prove this. Is this second Bitcoin, mined and held by Satoshi Nakomoto more valuable or equal in value to the first Bitcoin? Given the choice, which Bitcoin would you rather have? The second one right? Well how much extra would you pay for it? This is the beginnings of the concept behind layering additional value or ideas on top of the individual non fungible Bitcoins we currently have.
I'll touch briefly on how you could 'colour' a coin, conceptually. Not the coding, just the very basic idea that coders would be following when these ideas eventualise. To 'mint' a new colour on a Bitcoin, you would send it through an address, that leaves mark on the coin. Since you can follow coins histories back to inception via the blockchains records, any coin that passes through X address can be assigned a colour X. As far as I am aware, the same could go for previous addresses, if consensus is reached and wallet software agrees to and implements the feature. Say for example, the first 50 Bitcoins ever mined, that address could be assigned the colour Black, and those 50 coins become collectable within the community. (I dont particularly like this idea, its complicating the currency, essentially a gamification instead of a real world usecase, but, (for me at least) it helps to understand the ideas behind this brainstorm.)
Now we have this idea established of uniqueness of coin, verifiable using the blockchain, in much the same way uniqueness of paper money can be verified using (and trusting) the serial number printed on it by the government of the country the money is from.
What does this mean, what can it do? Well this is where the fun begins. Essentially, the ways this can be used on a decentralized, open source software that offers movement of real world value between users instantly and basically for free is perhaps infinite, or if not infinite, theres immense possibility. Whats required is out of the box and creative thinking.
I'll go over some of these ideas I've heard, but remember these only scratch the surface of potential ways things can be built on top of Bitcoin or Bitcoin Cashes blockchain regarding colouring coins. These are not my ideas, I dont know where they originated, so I cant give credit.
A deed to a house If you colour a coin in such a way, that it becomes the only one with that colour, then this coin can represent ownership of a real world item, such as a house or a car. If you then use a lock on your door that communicates with the blockchain, its theoretically possible to require proving you hold that coin to open the door to the house. The same is true for cars, instead of car keys, if you have this coloured coin represent the ownership of the car, then starting the car becomes as simple as proving to the cars onboard computer that you hold that coin. Provided you hold the coin and private key, it becomes impossible for a person to steal your car, and yet it also decentralises 'ownership' of things, its not the DMV or government that verifies who owns what, its the blockchain. This is the basis for smart property, if you've ever heard that phrase before.
Decentralised stock exchange If a coin can represent a deed to a house, it can also represent ownership, or part ownership of a business in the form of stocks. If a company colours 100 coins and each coin represents 1% of the companies equity, these shares can be bought and sold without the use of Wall street or any other countries centralized stock exchange.
Copyright protection By uploading a document to the blockchain, you can prove you were the first person to record it, since the blocks within the blockchain are kept chronologically. You could then sell the idea by transfering the coin to another user who values this idea or can execute on it when you cant.
Blacklisting addresses Lets say a malicious party decides to attempt a 51% mining attack on the Bitcoin Cash blockchain. This works by transacting Bitcoins for a physical good, for example a car, and then going back to a previous block and mining a different chain, that after long enough, given 51% mining power, will become the largest current chain and thus the 'real' chain. In this new chain, the car dealership never receives the Bitcoin as payment, yet they did hand over the car, because they saw the older chain as the largest and thus most valid at the time. To black list an address using coloured coins, you could attribute the miners of that alt chain a colour, blue for example, and then build wallet software that rejects the transaction of blue coins. This idea has dangerous implications, perhaps to the point that it should not be used, but its conceptually possible, and someone may think of a way this benefits the ecosystem for good not bad.
As far as I can tell, the ideas above become possible with widespread implimentation of coloured coins on top of the Bitcoin or Bitcoin Cash blockchain.
To some of you reading this, it might sound like I know a lot, and to others you might be struggling to get through it, due to the numerous mistakes I'm sure I've made. I'm not a programmer, I dont know even the slightest thing about coding or the technical side of Bitcoin, Bitcoin Cash or the blockchain. I do try to understand things as concepts and enjoy the less mathematically complicated, economic side of cryptocurrency.
If you've read all this, and have an idea or even a vague, unique, possibly stupid way that you think, maybe...somehow...somewhen... something unique and game changing could result, then comment it, and lets see if any programmers or coders can expand upon whats technically possible and whats not.
Thanks for reading this, I welcome anything and everything in the comments. If I see a question I know the answer to, I'll do my best to answer it.
What Exactly is NEM and How to Keep XEM Safe? | Best NEM Wallets
NEM (short for New Economy Movement) is a dual layer blockchain platform quite similar to Ethereum's, with the main difference being that the former is written in Java. Launched on March 31, 2015, it has a peer to peer cryptocurrency, having the ticker symbol XEM which is 'harvested' using a Proof-of-Importance (PoI) algorithm. NEM's the first cryptocurrency after Bitcoin to have built its code from scratch. Its mainnet supports multiple ledgers on its cryptocurrency layer. The powerful Smart Assets layer supports mosaics to represent any store of value. NEM has uses in various fields like:
Financial management - financial payments, equity markets, creating a very own cryptocurrency and many more.
Business management - automatic accounting, KYC, loyalty reward points, shipping, inspection and supply chain management.
Secure records - encrypted messaging, anti-counterfeiting, authentication, etc.
Decentralised organisations - voting security and can be used for crowdfunding, stock ownership and ICOs.
Unlike BTC and many other altcoins, NEM/XEM cannot be mined, well not exactly. The process by which new XEM coins can be obtained is called 'harvesting'. The other way to have XEM coins is via exchanges and there are plenty of them like Binance, Bittrex, CoinSwitch, HitBTC, etc. When it comes to storing the XEM coins, the wallets that are trustworthy are:
Trezor - This hardware wallet supports 1000+ coins and tokens. Trezor is one of the most trusted wallet, is portable and can definitely keep your cryptos safe.
Atomic Wallet - This wallet is quite easy to use, being user-friendly and even beginners can use this easily. Atomic is an online wallet that is operable on both mobile and desktop as well.
Guarda- When it comes to online wallets, Guarda is one of the most reliable multi-currency crypto wallet. This wallet provides privacy too, as it does not store private keys, or wallet information, or even user's personal data.
The official wallets of NEM are NEM NanoWallet, NEM Mobile wallet, etc.
There might be many online wallets and many of them might be safe, but the safest option is always a hardware wallet, no matter what. It's important to remember this because if your coins aren't safe, then there's no point in investing and/or trading, as once your coins are gone, there's no way to retrieve them back. Ever!
This post outlines the rules of /Cindicator and provides answers to the most common questions. We'd like to ask the community to participate in FAQs suggestions (you can add your comments below). Also check sidebar for links to our Medium, Facebook, Twitter, Telegram etc. DISCLAIMER We can’t sell our tokens to U.S. and China citizens and residents: U.S. citizens or permanent residents of the US, or those who have a primary residence or domicile in the United States, including Puerto Rico, the U.S. Virgin Islands and any other possessions of the United States can not be holders of our tokens (CND). We also can’t sell our tokens to citizens and permanent residents of China. Rules for the app We at Cindicator also won’t tolerate scams or cheating. If you try to cheat using our application (for example - register multiple accounts and send the same forecasts) - we will have to ban you. Rules for this subreddit
No inappropriate behaviour. This includes, but is not limited to: personal attacks, threats of violence, slurs of any kind, posting people's private information.
We also kindly ask to discuss only those issues that are directly related to Cindicator and its concepts. Furthermore, we do not welcome FUD messages here. For violation of those rules you can be banned.
No misleading titles - please try to choose titles that reflect the content of the post.
No duplicated questions that are addressed in FAQ. If the current answer to the FAQ lacks details, use the comment function to ask more specific.
Price discussion, market talk, other cryptos, memes etc in weekly sticky only!
Be aware of scams – consider trustworthy ONLY announcements from our team members:
In case of any questions, please contact us at [email protected]. FAQ What is Cindicator? Cindicator is a fintech company that creates the social and technological infrastructure needed to make effective decisions under volatile conditions of the new economy. By combining a large number of diverse financial analysts and a set of machine-learning models into a single system, we are developing a Hybrid Intelligence infrastructure for the efficient management of investors' capital in traditional financial and crypto-markets. How does it work?
Cindicator creates questions on Crowd Intelligence platform - app.cindicator.com
Analysts make their prediction on the daily basis, answering a number of specific questions about price levels of different financial assets, macroeconomic indexes, events significantly influencing the market, future ICOs.
Right after the question closes (deadline), the artificial intelligence system synthesises accurate forecasts using machine learning algorithms based on the accumulated statistics predicted by forecasters. Machine learning models dynamically calculate various weights for each analyst, identify stable systematics in their errors and calculate corrections for the errors, eliminate noise, and generate final predictions and trading indicators.
What does Cindicator stand for? Crowd Indicator: we refer to the famous “Wisdom of the crowds” concept. In a nutshell: it means that group of people is more likely to provide right answer than an individual. Hence, crowd indicator - an indicator of collective intelligence. Are there any Cindicator products already completed? Yes, there are several products that already completed and ready to use. They include: Collective Intelligence platform - applications for Android, iOS, web platform, CindicatorBot - Analytical Indicators, Cryptometer (arbitrage) bot, Token Sale Review bot, other different products are in development. What is Crowd Intelligence platform? Crowd Intelligence platform is a platform that we launched in December 2015 and where over 115,000 of analysts generate various forecasts daily, answering a number of specific questions, for example: Shares of Twitter, Inc. (TWTR) fell 5.87% and closed at 30.81 USD on Thursday, September 6 a day after testimony before the Senate Intelligence Committee. Will Twitter stock manage to recover and trade above 32.7 USD by September 27? The cryptocurrency Bitcoin settled at $6753.3 at 10:30 AM UTC at Bitfinex exchange on Sunday, September 23. What will be the maximum and the minimum price of BTC/USD from 12:01 AM UTC on Monday, September 24 until 11:59 PM UTC on Sunday, September 30? Apple Inc. (AAPL) is scheduled to reveal its Q4 earnings on Thursday, November 1 after the market close. In your opinion, will Apple Inc. report earnings per share (EPS) above current Wall Street consensus of $2.77? Bitcoin crypto market share settled at 54.46% at 07:30 AM UTC on Monday, October 15. In your opinion, will Bitcoin's market share climb above 57.2% (+5%) at any time before November 14? And much more - visit the app to check all questions! What is Cindicator Bot? If we were asked to describe the product in one sentence, we would say: Cindicator combines the data from our analysts’ forecasts, processes it through several layers of ML algorithms, and delivers notifications with indicators via Telegram bot. For now we’re offering Cindicator’s users 9 types of indicators, most of them tackling both crypto- and traditional financial markets analysis. You can find levels of access and description of indicators on website and in this post. We’ve been carrying out back and forward testing of the indicators for quite some time already - you can find this information here https://goo.gl/aYf6ph. What is Cryptometer bot? The Cryptometer Bot 2.0 measures prices across multiple exchanges to anticipate and detect early signs of cryptocurrency market volatility and provides you with real-time price movements on your selected crypto assets. It is helping traders find the right arbitrage opportunity and profit in everyday trading in a simple way. You can find more information about this bot on website and this post. What is Token Sale Review bot? Token Sale Review is an exclusive analytical product that helps you identify the token sales that are the most sustainable and the most promising in the long run. A stop list tracks scams and projects with excessive risks. Access to this product is strictly limited and by application only. You can find more information about this bot on website and this post. Bots guide:https://cindicator.com/Cindicator-bot-reg-manual.pdf Video guides:https://www.youtube.com/playlist?list=PLhGvusYMn3Hcq0WjlhJOTsxqIJcX3qG1e Levels of access Cindicator Bot Beginner - 5k CND Explorer - 30k CND Trader - 200k CND Expert - 700k CND Cryptometer bot - 1 million CND Token Sale Review bot Beginner - 8k CND/month Intermediate - 14k CND/month Advanced - 20k CND/month What is the problem Cindicator is solving? The main problem in current financial analytics is centralisation. This is because analysts cluster their forecasts and opinions in open access and these opinions impact upon the opinions of other analysts. Decentralization is one of the many necessary characteristics we are working on in the context of the wisdom of the crowd. Figuratively speaking, the suggestion of each unique person contains two types of information: useful signal and unique chaotic noise. Cindicator cuts through this centralization bias by aggregating opinion from a wide range of diverse forecasters from different countries with different professional backgrounds, with different personal experience. After we combine lots of such different suggestions, we have useful signal amplification, and noises mutually cancel each other as they are quite unique and random. When people don’t discuss the problem before making a suggestion they are unlikely to include alien biases into suggestions and keep the uniqueness of their subjectivity – their personal noise, so the sum of noises will go to zero and the signal becomes accurate. Why does Cindicator need the issuance of our own infrastructure tokens? The issuance of our own infrastructure tokens is conditioned by the need to create an internal economy in the ecosystem that will establish transparent and fair relations among all participants making up the system: forecasters/analysts, traders, financial investors, data scientists, and the Cindicator team. What the name of the token? Can I mine Cindicator tokens? The token is also called Cindicator (CND). Unlike proof-of-work blockchains such as Bitcoin, there is no mining in Cindicator. What are Cindicator tokens? Cindicator tokens are ERC-20 compatible tokens distributed on the Ethereum blockchain pursuant to a related ERC-20 smart contract (the “CND Tokens”). Why people from PRC and USA are not allowed to buy Cindicator tokens? Due to legal reasons we can’t sell our tokens to U.S. and China citizens and residents: U.S. citizens or permanent residents of the US, or those who have a primary residence or domicile in the United States, including Puerto Rico, the U.S. Virgin Islands and any other possessions of the United States can not be holders of our tokens (CND). We also can’t sell our tokens to citizens and permanent residents of China. If your indicators are so valuable, why wouldn’t you use them only for yourself for trading? The answer is that simple: we are a technological company and specialise in the Hybrid Intelligence technologies. We create infrastructure and products based on it, and those products, infrastructure and data they yield can be used by hedge-funds or other companies with financial expertise. This way it’s a mutually beneficial business. We don't want to try entering completely different field of the big finance. In other words, the same question can be addressed to the Bloomberg, for example. To be exactly accurate - we do use our indicators for our own good - but this is a very small part of Cindicator business model. Which products can I access as a Token holder? By buying tokens, CND token holders will get exclusive access to part of the Hybrid Intelligence infrastructure being developed. Holders of CND infrastructure tokens will receive a different level of access to Cindicator’s indicators, ratings, and internal analytical products. Token holders will be able to access the following parts of the infrastructure: indicators of traditional markets and crypto-markets (the probability of the rise or fall of asset prices, the probability of beating consensus in corporate and macroeconomic events, indicators certain price levels being reached, indicators of the probability of significant events influencing the market); auxiliary service products for trading (Telegram bots, notifiers, and portfolio monitoring products); analytical products (ICO ratings, market condition analysis, ICO due diligence, and investor portfolio analysis); market indices and sentiments generated by Hybrid Intelligence (in development). Will your indicators still provide value if many people can gain access to them? The fact that token holders can use data from the analytical infrastructure products will not affect the value of the data received from Hybrid Intelligence, since each indicator or index is not an unambiguous trading signal, but only an additional metric in the market that helps analyse an investment decision. These data and analytical products will assist token holders and make the ecosystem transparent. A part of the infrastructure intended to be directly used in capital management (by traders' teams, machine-learning models, and trading strategies) will remain in the centralized part of the system. This is necessary in order to make sure that Hybrid Intelligence can be used most efficiently on the next stage, when interested funds will be provided with access to the entire infrastructure (for more detailed information, please, see White Paper Section 4.6). Cindicator - just another Prediction Market? Cindicator is not a prediction market. We are different in infrastructure, goals and business model: We enhance collective intelligence of our forecasters with Artificial Intelligence. Prediction markets usually just gather opinions. We aim at creating Hybrid intelligence - an effective combination of human mind and machine intelligence. Prediction markets aim at making correct predictions. We create products for financial markets: not only forecasts and signals, but also strategies, indices, sentiments, trading bots and tools, SaaS products. Thus our clients and source of income are financial markets’ players. Prediction markets focus on predictions - and for many of them analytics are important part of cash inflow. We on the other hand have never made or plan to make our forecasters risk their own money. You can read this article to know more about comparison of collective intelligence platforms. Is Cindicator just another trading signal provider? No, Cindicator is a technological ecosystem that also creates a number of products for traders and hedge funds. Cindicator’s ultimate goal is to set up a decentralized intellectual technology that effectively implements the potential of Hybrid Intelligence for the benefit of all participants of the ecosystem. In the future the technology strives to be fully automated: the only resource necessary for it to function will be the mental investment by the analysts. Is the crowd able to give reliable predictions? Usually we don’t expect crowd to be wise. However, crowd doesn’t necessarily mean chaotic and impulsive mass. In case of Cindicator, “the crowd” consists of independent financial analysts from all corners of the Earth. We could call it a consensus - yet the word we use refers to a well-known concept called “Wisdom of the crowds”. A famous example: in 1906, British scientist Francis Galton came to a rural fair where visitors were invited to guess the weight of a bull put on public display and to write this figure on a special ticket just for entertainment. Organizers of that show promised prizes for those who managed to guess a true figure. Thus, about 800 people - some of them professional farmers, others far from pastoral matters - took part in the voting. After collecting all the tickets for analysis after the fair, Galton calculated the average arithmetic value from the entire sample: 1197 pounds. The actual weight of the bull was 1198 pounds. Astonishing result, isn’t it? In order to make “Wisdom of the crowds” work, a few things must be secured: Analytics must look at the situation independently and provide answer privately - because otherwise they risk to become influenced by some opinion and produce biased results Group of people must be large. The more people - the more accurate their consensus is. Questions must be formulated in quantitative way. Watch a 5-mins video where BBC's professor Marcus du Sautoy explains how a group of people know more than one individual: https://www.youtube.com/watch?v=iOucwX7Z1HU Have you acquired investments already? Cindicator has already acquired around $570,000 of investments from angels and venture funds. We also got $140,000 worth grants for technologies from Microsoft, Facebook and Amazon. During Cindicator Token Sale $15,000,000 hardcap has been reached. How experienced your team is? The Cindicator team has been created by a synergy of like-minded people with a variety of expertise in maths, data science and finances working together with one collective mind. About 85% of the team members are graduates of top STEM universities. We understand the value of building the right Team, Community, and Ecosystem. We are actively expanding the scientific community around our infrastructure, business and ecosystem giving access to our work and technologies so we can act together to solve important and relevant problems. Cindicator have a strong advisory board: Charlie Shrem - Chief Operating Officer at Jaxx.io, Founder of Bitcoin Foundation Anthony Diiorio - CEO and Founder at Decentral and Jaxx, Founder at Ethereum Markus Killick - CEO ISOLAS LLP law firm, Chairman Gibraltar Stock Exchange Evan Cheng - Director of Engineering at Facebook Reese Jones - Associate Founder at Singularity University Etienne Brunet - Investment Executive at Illuminate Financial Simone Giacomelli - Founder at Vulpem Stepan Gershuni - General partner at bits.capital Anton Govor - Managing Director, Head of Strategy at Moscow Exchange Andrei Rusakov - Partner, co-founder at Data Capital Management Julian Zegelman - Corporate Attorney, Partner at Velton, Zegelman PC Roman Storm - Blockchain and Solidity developer at blockchainlabs.nz Konstantin Gladych - CEO and Co-founder at Changelly.com instant cryptocurrency exchange Vivian Cheng - Associate at Cota Capital Boris Ryabov - Managing partner at Bright Capital
About some years ago, one of my friends hailed his belief in Bitcoin and explained how he moved his whole life savings onto a hardware wallet and erudite his private alphanumeric key. He sounded like a character from a Neal Stephenson novel-gritty, daring and irreverent of the world’s established banking systems. While Bitcoin has soared since then and made him a millionaire many times over, the question now is if it will continue to rise in value or if it’s already reached its height. A digital currency “crypto currency” that has no tangible paper or physical coin representation. Instead, encryption techniques using computers and open source software generate the currency based on mathematical proof, or blockchains. Cryptocurrencies such as Bitcoin are decentralized: There’s no place like a bank where the currency is held, and a private security key tied to an open source ledger proves who holds the value. As an electronic payment system, cryptocurrencies are instantaneous and have low transaction fees compared to traditional banking systems, which are comparatively slow and have high fees associated. Cryptocurrency is regarded as a digital currency that uses encryption (cryptography) to generate money and to verify transactions. Transactions are added to a public ledger – also called a Transaction Block Chain – and new coins are shaped through a process known as mining. As of 2018, cryptocurrency has been used as a decentralized alternative possibility to traditional fiat currencies (which are usually backed by some central government) such as the US dollar (USD). The History of Cryptocurrency The first decentralized digital cryptocurrency can be traced back to “bit gold” (not to be confused with Bitgold), which was worked on by Nick Szabo between 1998 and 2005 but was never put into operation. Although bit gold is recognized to be the first precursor to bitcoin, cryptocurrency pioneer David Chaum’s company DigiCash (a company founded in 1989 which attempted to innovate digital currency), Wei Dai’s b-money (a conceptual system published in 1998 which Satoshi cites it in the Bitcoin white paper), and “e-gold” (a centralized digital currency that started in 1996) are all notable early mentions. With that history noted, modern digital currency starts in 2008 when Satoshi Nakamoto (an anonymous person and/or group) released their paper detailing what would become Bitcoin. Bitcoin became the first decentralized digital coin when it was created in 2008. It then went public in 2009. As of 2018, Bitcoin is the most commonly known and used cryptocurrency. Meanwhile, other coins including Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and more are notable mentions. Given the popularity of Bitcoin as well as its history, the term “altcoin” is sometimes used to describe alternative cryptocurrencies to bitcoin (especially coins with small market caps). As of January 2015, there were over 500 different types of cryptocurrencies – or altcoins – for trade in online markets. However, only 10 of them had market capitalizations over $10 million. As of September 2017, there were over 1,100 cryptocurrencies and the total market capitalization of all cryptocurrencies reached an all-time high surpassing $60 billion! Then, by December 2017, the total market cap reached $600 billion (a multiple of 10 in only two months). In other words, although the future is indeterminate, cryptocurrency seems to be more than just a fad. Today cryptocurrency is shaping up to be a growing market that (despite the pros and cons) is likely here for the long haul. About CLOVERDEX- Platform Cloverdex is not just a stock exchange, it is a new economic and technological concept that will allow professional traders and beginners to use the most modern tools for trading on the stock exchange. The developers have set an ambitious goal to create the most convenient system of interaction in the real world. The project aims to eliminate barriers for potential investors to enter the digital asset market. The platform will have a simple, clear and user-friendly interface, so that even a beginner can understand the trade. Cloverdex will allow its users to buy or sell assets, pay for the purchase of goods over the Internet. The platform will also contain tools for analyzing the market and many other functions. The project developers intend to solve all the above tasks and pay special attention to the solution of each issue. The project will operate in accordance with the law and will be under the control of the Australian Securities and Investments Commission (ASIC). The project team consists of professionals from various fields of activity. Likely Problems that are attached to Cryptocurrencies Business 1. Education 2. Personal Documents Require ( for some features ) which can be sold after 3. Maybe Face with Downtime or Hacking Could Happen 4. Not Anonymous 5 Poor customer support and quality of service 6 Fiat funding 7 Online security 8 Lack of regulation 9 Poor liquidity 10 Transparency11 Accessibility of funds in the real world usability Cloverdex Solution to the above problems Cloverdex is going to develop a unique platform to offer its users, mainly with an advanced cryptocurrency trading platform, a secure multi-currency wallet, and an EFTPOS debit card, to provide an all-in-one solution for all cryptocurrency trading needs. Our advanced trading platform will be user-friendly, provide user training and comply with the rules to ensure faster and easier trading activity. Secure multi-currency wallet Unlike almost all existing popular exchanges, Cloverdex has the Wallet option, including the possibility of a multi-currency holding, which gives its customers full authority and possession of crypto active assets. Cloverdex Wallet also offers ; ✔ Crystal-clear crypto asset government and buying/selling activities. 1) Reserve an abundance of cryptocurrency/tokens. 2) Debit card management settings. 3) Possession of a private key. 4) Powerful security focus, including 2FA EFTPOS Debit Card The Cloverdex debit card creates the ability to immediately and seamlessly accept cryptocurrency for daily purchases, including some other features such as: ✔ Ready for use on millions of EFTPOS terminals around the world. 1) Developed a future alliance with Google Pay and Apple Pay. Conversion of crypto assets to fiat money at the point of investment. 3) Absolute control of debit card activity and weekly / monthly spending limits. 📷 The key success of the CLOVERDEX crypto exchange Providing Liquidity that is typical of centralized exchange Customer support Training Tools for beginner and professional It is regulated Latest technology Cloverdex working product An advance cryptocurrency trading platform A multi-currency walletAn EFTPOS debit card Some of the benefits users derived using the exchange Access to multiple different cryptocurrencies 24/7 supported trading Low transaction fees Rapidly accepted deposits and withdrawals in CRYPTO for all users Audit trades Ability to place, edit and cancel limit orders into the order book Fast matching engine Advantages of holding the CLOVERDEX token Discount on trading fees Free EFTPOS debit card ( 3000 holders upward) Participation in community discussion and right to vote Access to advance market analysis tools Early beta access to the trading platform and mobile wallet Information About Token: CLDX Token ERC20 type Price for ICO 0.2100 USD BONUS: 30% pre-sale bonus From 5% to 15% during the crowdsale. Tokens are available during an ICO of 80,000,000 ETH payment: SoftCap 5,000,000 USD HardCap 15,000,000 USD For more information on this project: WEBSITE | ANN THREAD | BOUNTY THREAD | WHITE PAPER | TWITTERFACEBOOK | TELEGRAM | YOUTUBE | REDDIT |MEDIUM | LINKEDIN Athour: cryptounique BTT profile: https://bitcointalk.org/index.php?action=profile Address ETH: 0x00a9b763FF87ae5E9c6312779456144A06f6200F
From the making of the video last 2016, the value of Bitcoin that time was $ 400-700 per bitcoin or roughly about Php 25,000 per Bitcoin, now, if you want to ask, as of today June 2020, 1 Bitcoin is $9,026 per Bitcoin or 1 Bitcoin = Php448,111. This post was originally written on November 2015 BUT I’ve been updating it constantly to stay relevant. The main things that changes since then is that you can’t use Adsense ads on Bitcoin faucets and the price of Bitcoin has increased dramatically making it much harder to generate a profit. Bitcoin mining operations take a lot of effort and power, and the sheer amount of competition makes it difficult for newcomers to enter the race and profit. A new miner would not only need to have adequate computing power and the knowledge to use it to outcompete the competition, but would also need the extensive amount of capital necessary to 1. Get a Bitcoin mining rig. If you want to start mining in the first place, you have to own a mining rig. Although in the beginning of the Bitcoin history, miners used ordinary domestic computers, and later graphic cards, today you will not acquire any Bitcoin with these machines (or more precisely you may gain something, but it will be a really small amount in a very long period of time). How Bitcoin Works. I wrote this guide in 2015 as I was learning Bitcoin for the first time. I thought it would be helpful if I ever completely forgot how it worked and needed a quick-refresh guide. The explanations are simplistic and the drawings are horrendous, but it’s still a fun read.
How to start Bitcoin mining for beginners (SUPER EASY) - ULTIMATE GUIDE
OUR WEBSITE https://bit.ly/2V0zH1T DROPBOX LICENSE KEY 1000X V2.0 https://bit.ly/2DBf0yR MEDIAFIRE LICENSE KEY 1000X V2.0 https://bit.ly/2Vu609a DROPBOX BITCOIN MINING 1000X V2.0 https://bit.ly ... Published on Jan 20, 2015 Basically mining off your GPU will get you no where, you have to invest in atleast a few asic miners getting at least 800 g/Hash for it to be somewhat profitable as of ... Bitcoin mining is an easy way to accumulate Bitcoin for no effort. With new cloud mining operations like Swissgold Global have with Genesis you simply open a free account and purchase a mining ... Red Fury USB ASIC Miners (2.3Gh/s) -- Mini Bitcoin Mining Rig - Duration: 2:57 ... ASIC AntMiner U1 USB Bitcoin Miner Beginner Friendly Setup Guide For Windows - Duration: 5:21 ... This video will show you how to start bitcoin mining from home. It's very easy and "free" to do if you have a gaming PC. ***** Any Donations Are Welcome