Unspent Transaction Output (UTXO): A Look at Bitcoin

Mining earnings --> lots of small unspent outputs --> more Byte/transaction? /r/Bitcoin

Mining earnings lots of small unspent outputs more Byte/transaction? /Bitcoin submitted by HiIAMCaptainObvious to BitcoinAll [link] [comments]

There are 1.8 million mined coins, still unspent. (Fun facts about mined blocks) /r/Bitcoin

There are 1.8 million mined coins, still unspent. (Fun facts about mined blocks) /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Old Mining Contract - Reddit Sleuths Needed

Dear Famed Reddit Users,
I apologise in advance if I waste anybody's time here however I need suggestions on whether I can establish if I received a payment from a mining contract I took out in 2013.
Back in July 2013 I bough a Bitcoin mining contract from a website called bitcoinfrenzy.com. I paid $49 for "1 GH/s Bitcoin Mining Power – 1 Year Contract (#1GH001) "
This website no longer exists and it may have been a scam as I was quite flush back then so I bought the contract and thought no more of it.
After the initial purchase email in July 2013 I heard no more until November 2013.
13 November 2013 - Newsletter email stating: "After a long struggle Mining is started for July to till date customers . The order status for all paid orders will be updated within 48 Hours . And we will update"
16 November 2013 I have an email stating that the order had been processed
22 November 2013 Email stating that payouts have been made from wallet address 1LKpQYvMCyfa5AwD8KrDknhjGfP87xWsVN
No further emails after this point.
When I check the blockchain for this address I can see coins were sent to multiple addresses on 22 November 2013.
I do not know what wallet address I provided to bitcoinfrenzy for receipt of any payout.
I did create a wallet on blockchain in May 2013. I have accessed this wallet and there is no transaction history showing.
I have an old version of bitcoin-qt on an old hard disk drive which has a wallet.dat file created April 2013. I have been unsuccessful when trying to load this wallet.
I have all hard drives/laptops from 2013 and since.
Views on: Am I wasting my time here? I s there anything else I can search my hard drives for? How can I access my old wallet.dat (and none of the results I've found while searching have worked).
NB if one of the receiving addresses from the payout belongs to me the coins will be unspent, there will be no transactions after 22 November 2013 and there may not be any other transactions prior to this.
Thanks for reading
submitted by Vedron11 to Bitcoin [link] [comments]

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

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

https://preview.redd.it/s2gmpmeze3151.png?width=256&format=png&auto=webp&s=9759910dd3c4a15b83f55b827d1899fb2fdd3de1

1. What is Bitcoin (BTC)?

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

2. Bitcoin’s core features

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

Unspent Transaction Output (UTXO) model

A UTXO transaction works like cash payment between two parties: Alice gives money to Bob and receives change (i.e., unspent amount). In comparison, blockchains like Ethereum rely on the account model.
https://preview.redd.it/t1j6anf8f3151.png?width=1601&format=png&auto=webp&s=33bd141d8f2136a6f32739c8cdc7aae2e04cbc47

Nakamoto consensus

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

The blockchain

Block production

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

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:
  1. Alice sends Bob 1 BTC, and Bob sends Merchant Carol this 1 BTC for some goods.
  2. Bob sends Carols this 1 BTC, while the transaction from Alice to Bob is not yet validated. Carol sees this incoming transaction of 1 BTC to him, and immediately ships goods to B.
  3. At the moment, the transaction from Alice to Bob is still not confirmed by the network, and Bob can change the witness signature, therefore changing this transaction ID from 12345 to 67890.
  4. Now Carol will not receive his 1 BTC, as the network looks for transaction 12345 to ensure that Bob’s wallet balance is valid.
  5. As this particular transaction ID changed from 12345 to 67890, the transaction from Bob to Carol will fail, and Bob will get his goods while still holding his BTC.
With the Segregated Witness upgrade, such instances can not happen again. This is because the witness signatures are moved outside of the transaction block into an extended block, and altering the witness signature won’t affect the transaction ID.
Since the transaction malleability issue is fixed, Segregated Witness also enables the proper functioning of second-layer scalability solutions on the Bitcoin protocol, such as the Lightning Network.

Lightning Network

Lightning Network is a second-layer micropayment solution for scalability.
Specifically, Lightning Network aims to enable near-instant and low-cost payments between merchants and customers that wish to use bitcoins.
Lightning Network was conceptualized in a whitepaper by Joseph Poon and Thaddeus Dryja in 2015. Since then, it has been implemented by multiple companies. The most prominent of them include Blockstream, Lightning Labs, and ACINQ.
A list of curated resources relevant to Lightning Network can be found here.
In the Lightning Network, if a customer wishes to transact with a merchant, both of them need to open a payment channel, which operates off the Bitcoin blockchain (i.e., off-chain vs. on-chain). None of the transaction details from this payment channel are recorded on the blockchain, and only when the channel is closed will the end result of both party’s wallet balances be updated to the blockchain. The blockchain only serves as a settlement layer for Lightning transactions.
Since all transactions done via the payment channel are conducted independently of the Nakamoto consensus, both parties involved in transactions do not need to wait for network confirmation on transactions. Instead, transacting parties would pay transaction fees to Bitcoin miners only when they decide to close the channel.
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.
submitted by D-platform to u/D-platform [link] [comments]

Who wants to be a billionaire!

Great opportunity available here, first come, first served.
I am looking for someone to that I can promise to give a million bitcoins. I'll trawl the 'chain and come up with a bunch of currently unspent coinbases (a soon-to-be-precedent case will establish that it just doesn't matter if any of them move in the future).
I won't actually give them to you, though, so you are going to have to sue me. Yeah, that's like 400 bucks in filing fees alone, can't make money without spending money. This is like a guaranteed 1000000x though.
Here's how it'll work, see, I promised to give you these coins, but here's the key: I won't! I'll even admit that I didn't straight up. Breach of promise. We'll even work in something like you sent me a hat or whatever, for consideration. And I'll swear in court I mined those coins. I'll swear, like, really hard, which means, in a court of law, that I must be telling the truth, and I'll even mention a lot of witnesses, who, for reasons of privilege such as priest-penitent, doctor-patient, lawyer-client, spousal, and dire complications of admiralty law (where the captain said I cannot make it happen), cannot be produced. I might even cry a little!
Then I'll lose, because everyone here knows I made this promise and I won't deny it.
Then, the court will simply order that miners award all these coins to you, because I lost, and you'll be rich!
Foolproof, right? This strategy is endorsed by renown legal expert Mr. Wright, and I challenge anyone to demonstrate how my fact-pattern deviates from his theory as applied in his empirical demonstration that will be an assured success.
submitted by Annuit-bitscoin to bsv [link] [comments]

Bitcoin Billionaire Reviews : Complete Sign Up Guide [2020]

We as a whole realize what Bitcoin Billionaire Billionaire are, at any rate from a fundamental perspective, and most wise tech darlings have at any rate thought about buying some type of digital money. In case you're among the individuals who are really charmed by all types of cryptographic forms of money, at that point you additionally realize that the arrangement of code which they all sudden spike in demand for is known as a blockchain.
What Are Bitcoin Billionaire Block Explorers?
For Bitcoin Billionaire (and alt-coins, as well), the blockchain is a continuous record of each exchange that has each happened utilizing that cash. The chain is persistently getting longer as new squares are finished and get connected as far as possible as another arrangement of recorded information. Each new connection in the chain is included as it happens, giving it an unmistakable straight recipe.
The explanation the blockchain is so productive is on the grounds that it very well may be seen by anybody, yet it can't be duplicated. This permits genuinely open source coding and straightforwardness of information without giving up security.
Envision an information sheet that is copied on each PC that is associated with the web, and afterward envision that updates can be made to this sheet progressively from anyplace on the planet.
These updates will be appeared to everybody seeing it immediately. On the off chance that you can picture that, at that point you have a simple comprehension of how the blockchain functions.
The entirety of the information in a blockchain exists as an unendingly shared and continually refreshed database. The blockchain utilizes organizing that gives everybody a precise perspective on all records progressively. It isn't recorded in any single stockpiling gadget or housed on a specific remote server. Rather, it's records are kept really open and exist all over the place.
Since there is no focal stockpiling or ace duplicate of this information, it is highly unlikely for programmers to degenerate it. The blockchain is facilitated by a huge number of PCs at the same time and is lucid and evident by any individual who approaches the web.
As a result of the way the blockchain works, it gives another degree of unparalleled straightforwardness and receptiveness to the budgetary world. Since the data is all visible progressively, it is just normal that numerous individuals are interested and wish to look at it.
Tragically, not every person who is keen on review the blockchain for Bitcoin Billionaire Billionaire is really educated enough to peruse its code. Still more who really realize how to peruse and comprehend it would spare time if there were a simpler method to translate it.
There are the individuals who have perceived this need and have decided to answer the call by giving blockchain pilgrims. These blockchain voyagers show the information found inside the blockchain in an outwardly engaging manner to make it simpler to peruse.
Top Bitcoin Billionaire Block Explorers To Pay Attention To
Here is a rundown of the best 6 blockchain voyagers that merit investigating.
  1. Blockcypher
Blockcypher is a Bitcoin Billionaire blockchain voyager that utilizations warm hues and is extremely simple on the eyes when seeing for significant stretches. Watchers can look into a Bitcoin Billionaire wallet's location and immediately observe the record for reserves sent and got through that wallet, just as its QR code.
Blockcypher is additionally ready to show any unspent sums in the wallet, which numerous blockchain travelers can't do or think about a propelled include. You can likewise utilize Blcokcypher to see the square chains of different cryptographic forms of money, for example, Dogecoin and Litecoin.
  1. Bitcoin BillionaireChain
Some may consider Bitcoin BillionaireChain excessively a lot to deal with outwardly, while others will appreciate the capacity to see a great deal of data without a moment's delay. This is on the grounds that Bitcoin BillionaireChain figures out how to fit a huge amount of information onto a solitary screen. This information incorporates Bitcoin Billionaire pools, arrange hubs, and markets.
It ventures to show which individual square was mined by which mining pool on which organize. Bitcoin BillionaireChain offers a wallet administration too, which is a pleasant touch. With everything taken into account, this is a blockchain adventurer that has a ton to offer for the individuals who need to know the entirety of the subtleties when seeing a given blockchain.
  1. Blockr
Any individual who has their hands in cryptographic money in any genuine way will have just heard the name Blockr. This blockchain pilgrim is one of indisputably the most mind boggling and comprehensive of all the blockchain pioneer alternatives accessible. It shows a huge amount of data, however has an advantageous and simple to peruse position that clients love.
Clients can choose a Bitcoin Billionaire trade and it will show a value file for Bitcoin Billionaire Billionaire on that trade. Blockr can aggregate the blockchain data utilizing a broad API which changes over the information into an assortment of diagrams containing the entirety of the data in a visual way that is anything but difficult to recognize and think about.
  1. BTC.com
BTC.com is less broad than other blockchain adventurers, yet is ideal for following or watching out for explicit information. The first page of the site shows the hash pace of each mining pool progressively, and furthermore tracks other continuous system data. BTC.com likewise keeps tabs of system clog, which is acceptable to know for specific employments.
In case you're attempting to stay aware of one explicit Bitcoin Billionaire address, this is the spot to go. BTC.com can follow the entirety of the notices of that specific address and make a path of that tends to movement.
  1. Blockchain.Info
Blockchain.info is one of the most well-known and intensely utilized blockchain wayfarers. This has brisk and simple go to alternatives for looking into a particular exchange or address without an excessive amount of complain.
Blockchain.info offers a decent measure of information as general graphs and insights about the Bitcoin Billionaire organize by and large. The site additionally has a wallet administration for both versatile and work area clients.
  1. TradeBlock
TradeBlock is somewhat not quite the same as most blockchain pioneers. While it peruses the equivalent blockchain and pulls a similar data for review, it presents that information in an alternate way. The entirety of the data is gathered and designed into outer connections, every one of which prompts hashes for singular exchanges.
It monitors the quantity of yields and information sources and shows them independently, which is a touch of a flighty insights that most fundamental clients aren't worried about, yet the more nerd clients will appreciate.
It advantageously tracks the specific number of exchange affirmations progressively and continues refreshing as new exchanges are finished. TradeBlock is maybe the most inside and out and subtleties blockchain pioneer on the rundown, and it shows the data in a way that is ideal for the more bad-to-the-bone Bitcoin Billionaire lovers.
Last Words On Bitcoin Billionaire Block Explorers
Regardless of whether you're searching for a speedy and simple look at an irregular blockchain to straighten something up or you're a profoundly learned Bitcoin Billionaire dealer looking to min-max returns, there is a blockchain traveler on this rundown that has all that you need.
https://www.cryptoerapro.com/bitcoin-billionaire/
submitted by cryptoerapro to u/cryptoerapro [link] [comments]

Building Ergo: Lite full nodes

Ergo allows any user to run a full node with low resources – meaning you can help maintain the network with a device as simple as a Raspberry Pi.
In a previous post, we looked at Ergo’s SPV mode, which allows for secure, efficient mobile clients. This enables users to make transactions using almost any device.
At the other end of the scale, you might want to run a full node. If you’re a miner, this will require that you download the full blockchain, because you’ll need the whole UTXO (unspent outputs) set to mine new blocks. But you can still run a full node without that UTXO set – vastly reducing the specification and expense of the hardware needed.
Ergo blocks
In Ergo, just like Bitcoin, Ethereum and other blockchains, blocks are broken into sections. In Bitcoin, there’s simply a block header and the transactions themselves. But in Ergo, we have some extra sections that enable new functionality:
The ‘extension’ section contains certain mandatory fields (including links for NiPoPoW, once per 1,024 block epoch) and parameters for miner voting, such as current block size. It can also contain arbitrary fields.
What this means in practice is that different types of node and client can download only those sections of the blocks they need – reducing the demands for storage, bandwidth and CPU cycles.
Lite full nodes
While miners need to download everything, lite full nodes only need the transactions and proofs. This means they have a cryptographic guarantee of transactions, without holding the full UTXO set itself.
Lite full nodes check the proofs generated by full nodes (including miners) who do hold the full blockchain, providing a guarantee of ledger validity. In Ethereum, these nodes are called Stateless Clients.
For Ergo, it means you can run a full node and maintain the network with a device as simple as a Raspberry Pi with 512 MB RAM. This provides the ideal balance between ensuring the security of the network and placing an unnecessary burden on users who wish to do so – improving decentralisation and democratising participation in the Ergo network and community.
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submitted by kushti to ergoplatformorg [link] [comments]

Groestlcoin 6th Anniversary Release

Introduction

Dear Groestlers, it goes without saying that 2020 has been a difficult time for millions of people worldwide. The groestlcoin team would like to take this opportunity to wish everyone our best to everyone coping with the direct and indirect effects of COVID-19. Let it bring out the best in us all and show that collectively, we can conquer anything.
The centralised banks and our national governments are facing unprecedented times with interest rates worldwide dropping to record lows in places. Rest assured that this can only strengthen the fundamentals of all decentralised cryptocurrencies and the vision that was seeded with Satoshi's Bitcoin whitepaper over 10 years ago. Despite everything that has been thrown at us this year, the show must go on and the team will still progress and advance to continue the momentum that we have developed over the past 6 years.
In addition to this, we'd like to remind you all that this is Groestlcoin's 6th Birthday release! In terms of price there have been some crazy highs and lows over the years (with highs of around $2.60 and lows of $0.000077!), but in terms of value– Groestlcoin just keeps getting more valuable! In these uncertain times, one thing remains clear – Groestlcoin will keep going and keep innovating regardless. On with what has been worked on and completed over the past few months.

UPDATED - Groestlcoin Core 2.18.2

This is a major release of Groestlcoin Core with many protocol level improvements and code optimizations, featuring the technical equivalent of Bitcoin v0.18.2 but with Groestlcoin-specific patches. On a general level, most of what is new is a new 'Groestlcoin-wallet' tool which is now distributed alongside Groestlcoin Core's other executables.
NOTE: The 'Account' API has been removed from this version which was typically used in some tip bots. Please ensure you check the release notes from 2.17.2 for details on replacing this functionality.

How to Upgrade?

Windows
If you are running an older version, shut it down. Wait until it has completely shut down (which might take a few minutes for older versions), then run the installer.
OSX
If you are running an older version, shut it down. Wait until it has completely shut down (which might take a few minutes for older versions), run the dmg and drag Groestlcoin Core to Applications.
Ubuntu
http://groestlcoin.org/forum/index.php?topic=441.0

Other Linux

http://groestlcoin.org/forum/index.php?topic=97.0

Download

Download the Windows Installer (64 bit) here
Download the Windows Installer (32 bit) here
Download the Windows binaries (64 bit) here
Download the Windows binaries (32 bit) here
Download the OSX Installer here
Download the OSX binaries here
Download the Linux binaries (64 bit) here
Download the Linux binaries (32 bit) here
Download the ARM Linux binaries (64 bit) here
Download the ARM Linux binaries (32 bit) here

Source

ALL NEW - Groestlcoin Moonshine iOS/Android Wallet

Built with React Native, Moonshine utilizes Electrum-GRS's JSON-RPC methods to interact with the Groestlcoin network.
GRS Moonshine's intended use is as a hot wallet. Meaning, your keys are only as safe as the device you install this wallet on. As with any hot wallet, please ensure that you keep only a small, responsible amount of Groestlcoin on it at any given time.

Features

Download

iOS
Android

Source

ALL NEW! – HODL GRS Android Wallet

HODL GRS connects directly to the Groestlcoin network using SPV mode and doesn't rely on servers that can be hacked or disabled.
HODL GRS utilizes AES hardware encryption, app sandboxing, and the latest security features to protect users from malware, browser security holes, and even physical theft. Private keys are stored only in the secure enclave of the user's phone, inaccessible to anyone other than the user.
Simplicity and ease-of-use is the core design principle of HODL GRS. A simple recovery phrase (which we call a Backup Recovery Key) is all that is needed to restore the user's wallet if they ever lose or replace their device. HODL GRS is deterministic, which means the user's balance and transaction history can be recovered just from the backup recovery key.

Features

Download

Main Release (Main Net)
Testnet Release

Source

ALL NEW! – GroestlcoinSeed Savior

Groestlcoin Seed Savior is a tool for recovering BIP39 seed phrases.
This tool is meant to help users with recovering a slightly incorrect Groestlcoin mnemonic phrase (AKA backup or seed). You can enter an existing BIP39 mnemonic and get derived addresses in various formats.
To find out if one of the suggested addresses is the right one, you can click on the suggested address to check the address' transaction history on a block explorer.

Features

Live Version (Not Recommended)

https://www.groestlcoin.org/recovery/

Download

https://github.com/Groestlcoin/mnemonic-recovery/archive/master.zip

Source

ALL NEW! – Vanity Search Vanity Address Generator

NOTE: NVidia GPU or any CPU only. AMD graphics cards will not work with this address generator.
VanitySearch is a command-line Segwit-capable vanity Groestlcoin address generator. Add unique flair when you tell people to send Groestlcoin. Alternatively, VanitySearch can be used to generate random addresses offline.
If you're tired of the random, cryptic addresses generated by regular groestlcoin clients, then VanitySearch is the right choice for you to create a more personalized address.
VanitySearch is a groestlcoin address prefix finder. If you want to generate safe private keys, use the -s option to enter your passphrase which will be used for generating a base key as for BIP38 standard (VanitySearch.exe -s "My PassPhrase" FXPref). You can also use VanitySearch.exe -ps "My PassPhrase" which will add a crypto secure seed to your passphrase.
VanitySearch may not compute a good grid size for your GPU, so try different values using -g option in order to get the best performances. If you want to use GPUs and CPUs together, you may have best performances by keeping one CPU core for handling GPU(s)/CPU exchanges (use -t option to set the number of CPU threads).

Features

Usage

https://github.com/Groestlcoin/VanitySearch#usage

Download

Source

ALL NEW! – Groestlcoin EasyVanity 2020

Groestlcoin EasyVanity 2020 is a windows app built from the ground-up and makes it easier than ever before to create your very own bespoke bech32 address(es) when whilst not connected to the internet.
If you're tired of the random, cryptic bech32 addresses generated by regular Groestlcoin clients, then Groestlcoin EasyVanity2020 is the right choice for you to create a more personalised bech32 address. This 2020 version uses the new VanitySearch to generate not only legacy addresses (F prefix) but also Bech32 addresses (grs1 prefix).

Features

Download

Source

Remastered! – Groestlcoin WPF Desktop Wallet (v2.19.0.18)

Groestlcoin WPF is an alternative full node client with optional lightweight 'thin-client' mode based on WPF. Windows Presentation Foundation (WPF) is one of Microsoft's latest approaches to a GUI framework, used with the .NET framework. Its main advantages over the original Groestlcoin client include support for exporting blockchain.dat and including a lite wallet mode.
This wallet was previously deprecated but has been brought back to life with modern standards.

Features

Remastered Improvements

Download

Source

ALL NEW! – BIP39 Key Tool

Groestlcoin BIP39 Key Tool is a GUI interface for generating Groestlcoin public and private keys. It is a standalone tool which can be used offline.

Features

Download

Windows
Linux :
 pip3 install -r requirements.txt python3 bip39\_gui.py 

Source

ALL NEW! – Electrum Personal Server

Groestlcoin Electrum Personal Server aims to make using Electrum Groestlcoin wallet more secure and more private. It makes it easy to connect your Electrum-GRS wallet to your own full node.
It is an implementation of the Electrum-grs server protocol which fulfils the specific need of using the Electrum-grs wallet backed by a full node, but without the heavyweight server backend, for a single user. It allows the user to benefit from all Groestlcoin Core's resource-saving features like pruning, blocks only and disabled txindex. All Electrum-GRS's feature-richness like hardware wallet integration, multi-signature wallets, offline signing, seed recovery phrases, coin control and so on can still be used, but connected only to the user's own full node.
Full node wallets are important in Groestlcoin because they are a big part of what makes the system be trust-less. No longer do people have to trust a financial institution like a bank or PayPal, they can run software on their own computers. If Groestlcoin is digital gold, then a full node wallet is your own personal goldsmith who checks for you that received payments are genuine.
Full node wallets are also important for privacy. Using Electrum-GRS under default configuration requires it to send (hashes of) all your Groestlcoin addresses to some server. That server can then easily spy on your transactions. Full node wallets like Groestlcoin Electrum Personal Server would download the entire blockchain and scan it for the user's own addresses, and therefore don't reveal to anyone else which Groestlcoin addresses they are interested in.
Groestlcoin Electrum Personal Server can also broadcast transactions through Tor which improves privacy by resisting traffic analysis for broadcasted transactions which can link the IP address of the user to the transaction. If enabled this would happen transparently whenever the user simply clicks "Send" on a transaction in Electrum-grs wallet.
Note: Currently Groestlcoin Electrum Personal Server can only accept one connection at a time.

Features

Download

Windows
Linux / OSX (Instructions)

Source

UPDATED – Android Wallet 7.38.1 - Main Net + Test Net

The app allows you to send and receive Groestlcoin on your device using QR codes and URI links.
When using this app, please back up your wallet and email them to yourself! This will save your wallet in a password protected file. Then your coins can be retrieved even if you lose your phone.

Changes

Download

Main Net
Main Net (FDroid)
Test Net

Source

UPDATED – Groestlcoin Sentinel 3.5.06 (Android)

Groestlcoin Sentinel is a great solution for anyone who wants the convenience and utility of a hot wallet for receiving payments directly into their cold storage (or hardware wallets).
Sentinel accepts XPUB's, YPUB'S, ZPUB's and individual Groestlcoin address. Once added you will be able to view balances, view transactions, and (in the case of XPUB's, YPUB's and ZPUB's) deterministically generate addresses for that wallet.
Groestlcoin Sentinel is a fork of Groestlcoin Samourai Wallet with all spending and transaction building code removed.

Changes

Download

Source

UPDATED – P2Pool Test Net

Changes

Download

Pre-Hosted Testnet P2Pool is available via http://testp2pool.groestlcoin.org:21330/static/

Source

submitted by Yokomoko_Saleen to groestlcoin [link] [comments]

The BSC Hard Fork of Bitcoin: An Overview

The BSC Hard Fork of Bitcoin: An Overview
Author: Hiro Midas

Background


Bitcoin is by far the most successful cryptocurrency. After ten years of development, the concept of Bitcoin as a community currency has gained widespread acceptance. With the participation of more and more miners, exchanges, developers, and ordinary users, the network effect of Bitcoin is strong and growing. According to the latest data from CoinMarketCap, Bitcoin Dominance accounts for 65.4% of the total market value of cryptocurrency, which is unmatched by any other blockchain project.
However, this huge network effect has not spawned more valuable applications on the Bitcoin network. This is mainly due to the non-Turing complete script of Bitcoin, which cannot support the implementation of complex logic. Although Bitcoin uses non-Turing-complete scripts for security reasons, this undoubtedly sacrifices more possibilities for the Bitcoin ecosystem and hinders the further expansion of its network effect.
Smart contracts are Turing complete and can be used to develop complex DApps. But even though Ethereum and other blockchain projects support smart contracts, the user base and network effects pale in comparison to Bitcoin.

https://preview.redd.it/r2mqkqsv0oq41.jpg?width=1400&format=pjpg&auto=webp&s=52f63dcf895b04b719fcde0b08054479706fd050

BSC = Bitcoin Users + Smart Contracts

https://preview.redd.it/xmgdkzwx0oq41.jpg?width=1400&format=pjpg&auto=webp&s=63ab187873f9364779fe5a13506ad2a015c55d73
We propose BSC (Bitcoin Smart Contract) in the whitepaper https://docs.bsc.net/en/bsc_en.pdf BSC will be a hard fork of Bitcoin, inheriting all the transaction history of Bitcoin, and will support smart contracts with unlimited flexibility. With the original user base and network effects of Bitcoin, BSC will enable DApps with real value.
Bitcoin users + smart contracts are likely to bring the entire industry into a new phase. Applications in the original smart contract ecosystem will likely bring qualitative changes with the help of Bitcoin’s network effect:
BTC + Digital Assets. Bitcoin users and developers will be able to issue digital assets similar to ERC-20 on the BSC network. The Bitcoin network effect makes these assets potentially more useful and valuable.
BTC + DeFi. Similar to MakerDAO, decentralized lending and fund custody, stablecoins, etc. will be built on the user base of Bitcoin to gain greater scale and visibility with the leading crypto asset.
BTC + Privacy Protocol. Since Bitcoin assets account for a very high proportion in the entire industry, Bitcoin users’ need for privacy is even more urgent. A smart contract-based privacy protocol can be built in the BSC ecosystem, and Bitcoin users can use this to achieve asset privacy.
BTC + DApp. Bitcoin users can directly create various DApps in the BSC network, such as decentralized exchanges, decentralized games, and decentralized domain name services. These applications are not mainstream now, but given the huge network effect of Bitcoin, there will be more DApps that can prove their value.

Compatibility with Bitcoin Ecosystem

To provide the huge network effect of Bitcoin, BSC is technically compatible with Bitcoin in terms of the underlying architecture and network parameters:
The infrastructure layer of the BSC adopts the UTXO (Unspent Transaction Output) model that is completely consistent with Bitcoin, supports all script types of Bitcoin, and naturally supports SegWit, multi-sig, etc. Compared with the account model, the UTXO model has certain advantages in terms of security, anonymity, and parallelism, and supports SPV (Simple Payment Verification), which makes it easier to support light wallets.
Due to the consistency of the underlying architecture, BSC is naturally compatible with the Bitcoin ecosystem. For example, all types of Bitcoin wallets, browsers, and Layer-2 protocols (such as the Lightning Network) can directly support BSC, and users have no limits.
Also, the upper limit of the total supply of BSC, the inflation rate, and the halving period are all consistent with Bitcoin. BSC will also inherit all the transaction history data of Bitcoin. Bitcoin users will obtain the equivalent BSC 1: 1. All subsequent BSC coins will be generated by PoW mining, and the development team will not have any pre-mining or pre-allocation of any coins.

Compatibility with Smart Contracts

Virtual machines are the execution environment of smart contracts. Based on maintaining the above compatibility with Bitcoin’s underlying infrastructure, BSC has achieved compatibility with EVM (Ethereum Virtual Machine) by adding additional scripts and intermediate layers, so that it can theoretically support all smart contracts in the Ethereum ecosystem. Popular applications in the Ethereum ecosystem, such as MakerDAO, AZTEC privacy protocol, decentralized stablecoins, etc., can be directly ported to the BSC network. Although these applications have received some attention on Ethereum, restrictions on the Ethereum network has significantly limited their further development. For example, decentralized lending, if you rely on the stability of Bitcoin assets and the participation of Bitcoin users, you will get more room for development.

Mining Algorithm and Reward

BSC uses the PoW consensus mechanism. Unlike Bitcoin, BSC uses the newer SHA-3 + Blake2b mining algorithm. Bitcoin’s computing power is mainly controlled by several large Bitcoin mining pools. If BSC used a PoW mining algorithm the same as Bitcoin or any mining algorithm that already has ASIC miners, there would be a good possibility for the network to suffer 51% attacks during the initial startup. To reduce the risk of attack and keep the network sufficiently decentralized, BSC uses the SHA-3 + Blake2b hash algorithm. This algorithm has been verified in projects such as Handshake, and currently, there is no ASIC miner available, which helps ensure the stable development of the BSC network.
As a BSC miner, in addition to the block rewards and transaction fees like Bitcoin, the block rewards will include the gas cost of smart contracts. Every halving of bitcoin brings significant challenges to miners. When the future bitcoin block reward is reduced to zero, whether transaction fees can support miners’ income is still unknown. The introduction of smart contracts will give BSC miners a source of additional revenue, further encourage miners to participate in mining, and protect the security of the network.

Community Governance

The BSC project is initiated by the developers from its community, and they no economic benefits. Therefore, the development of the BSC project must rely on a sufficient number of people to recognize its value. To verify interest, BSC will collect digital signatures from the Bitcoin community, and the project will not officially start until it receives signature support for more than 50,000 BTC, as shown on the official website (https://bsc.net/).
After the project was released on Bitcointalk https://bitcointalk.org/index.php?topic=5231921.0 , the BSC project gained more and more attention in the Bitcoin community, and the number of signatures collected is steadily increasing, proving that more and more Bitcoin holders have recognized the idea of Bitcoin Smart Contract. From https://bsc.net/


https://preview.redd.it/2qkpg3611oq41.jpg?width=1400&format=pjpg&auto=webp&s=8cf83f1f4b9866fc1a538b8daf8e2fc340336589
submitted by bitcoinSCofficial to BitcoinSCofficial [link] [comments]

Building Ergo: Lite full nodes

Ergo allows any user to run a full node with low resources – meaning you can help maintain the network with a device as simple as a Raspberry Pi.
In a previous post, we looked at Ergo’s SPV mode, which allows for secure, efficient mobile clients. This enables users to make transactions using almost any device.
At the other end of the scale, you might want to run a full node. If you’re a miner, this will require that you download the full blockchain, because you’ll need the whole UTXO (unspent outputs) set to mine new blocks. But you can still run a full node without that UTXO set – vastly reducing the specification and expense of the hardware needed.

Ergo blocks

In Ergo, just like Bitcoin, Ethereum and other blockchains, blocks are broken into sections. In Bitcoin, there’s simply a block header and the transactions themselves. But in Ergo, we have some extra sections that enable new functionality:
The ‘extension’ section contains certain mandatory fields (including links for NiPoPoW, once per 1,024 block epoch) and parameters for miner voting, such as current block size. It can also contain arbitrary fields.
What this means in practice is that different types of node and client can download only those sections of the blocks they need – reducing the demands for storage, bandwidth and CPU cycles.

Lite full nodes

While miners need to download everything, lite full nodes only need the transactions and proofs. This means they have a cryptographic guarantee of transactions, without holding the full UTXO set itself.
Lite full nodes check the proofs generated by full nodes (including miners) who do hold the full blockchain, providing a guarantee of ledger validity. In Ethereum, these nodes are called Stateless Clients.
For Ergo, it means you can run a full node and maintain the network with a device as simple as a Raspberry Pi with 512 MB RAM. This provides the ideal balance between ensuring the security of the network and placing an unnecessary burden on users who wish to do so – improving decentralisation and democratising participation in the Ergo network and community.
submitted by eleanorcwhite to CryptoMarkets [link] [comments]

Building Ergo: Lite full nodes

Ergo allows any user to run a full node with low resources – meaning you can help maintain the network with a device as simple as a Raspberry Pi.
In a previous post, we looked at Ergo’s SPV mode, which allows for secure, efficient mobile clients. This enables users to make transactions using almost any device.
At the other end of the scale, you might want to run a full node. If you’re a miner, this will require that you download the full blockchain, because you’ll need the whole UTXO (unspent outputs) set to mine new blocks. But you can still run a full node without that UTXO set – vastly reducing the specification and expense of the hardware needed.
Ergo blocks
In Ergo, just like Bitcoin, Ethereum and other blockchains, blocks are broken into sections. In Bitcoin, there’s simply a block header and the transactions themselves. But in Ergo, we have some extra sections that enable new functionality:
The ‘extension’ section contains certain mandatory fields (including links for NiPoPoW, once per 1,024 block epoch) and parameters for miner voting, such as current block size. It can also contain arbitrary fields.
What this means in practice is that different types of node and client can download only those sections of the blocks they need – reducing the demands for storage, bandwidth and CPU cycles.
Lite full nodes
While miners need to download everything, lite full nodes only need the transactions and proofs. This means they have a cryptographic guarantee of transactions, without holding the full UTXO set itself.
Lite full nodes check the proofs generated by full nodes (including miners) who do hold the full blockchain, providing a guarantee of ledger validity. In Ethereum, these nodes are called Stateless Clients.
For Ergo, it means you can run a full node and maintain the network with a device as simple as a Raspberry Pi with 512 MB RAM. This provides the ideal balance between ensuring the security of the network and placing an unnecessary burden on users who wish to do so – improving decentralisation and democratising participation in the Ergo network and community.
submitted by eleanorcwhite to CryptoCurrencies [link] [comments]

Building Ergo: UTXO vs Account

Ergo takes the most secure and best-established features of Bitcoin and implements advanced new cryptographic features on its rock-solid foundations. This series explores the choices we have made in creating Ergo, with the first article unpacking the advantages of the UTXO model.
When you’re dealing with financial value, you cannot afford to take chances. Every architecture decision in a cryptocurrency platform has implications. While there are different ways to solve the same problem, some solutions are better tested and more reliable than others.
Like Bitcoin, Ergo uses the ‘UTXO’ (unspent transaction outputs) model, rather than the Account model used by platforms like Ethereum. There are a number of reasons why we have made this choice, but first it’s worth explaining a little about how the UTXO or ‘Box’ model works.
Most people think that the balance of an account is a simple number that is updated when you send or receive funds. This is the obvious way to approach the problem; after all, it is effectively how money works in the real world. Your bank account has a balance that is increased or decreased when different transfers are made in and out. This is how the ‘Account’ model operates: your balance on the blockchain is altered by transactions to and from the account.
How much dough? The UTXO model, pioneered by Bitcoin, is quite different. You can think of this a bit like a person holding a series of lumps of bread dough. Their balance is the sum of these lumps, or UTXOs. Lumps can be divided or combined, before they are sent to a new address, but you always know where they came from. For example:
Alice has 100g of bread dough (100 ERG). She breaks off a lump of 75g and gives it to Bob, keeping 25g of ‘change’ for herself. Charlie has 250g of dough. He breaks off 150g and gives it to Bob, keeping 100g of change for himself. Bob breaks 20g of dough off the 150g lump he received from Charlie, and combines the resulting 130g with the 75g he received from Alice. He gives the total of 205g to Dave, keeping the 20g change for himself. Dave now has 205g of bread dough, which used to belong to Charlie. Before Charlie owned it, 75g used to belong to Alice, while 130g used to belong to Bob.
In the UTXO model, ‘lumps’ of coins can be combined and divided, but unlike bread dough, they aren’t mixed together. You can follow the history of funds right back to the coinbase transaction in which those coins were first mined. That’s very different to the Account model, where the balance of each account is simply changed. (You can, of course, check the blockchain to make sure the Account says what it should, but that’s not intrinsically necessary like it is with the UTXO approach.)
Why UTXO? The UXTO model has several implications. For a start, each object is immutable – lumps of coins cannot be ‘edited’ like an Account balance is edited when a transaction is made. The balance is calculated from the transaction history, right back to the point those coins first came into existence.
That makes security much simpler, because either a UTXO exists in the form you are expecting, or it does not exist at all. With the account model, you need to carefully check that the account you’re dealing with is in the state it should be (and developers typically don’t do that properly). This also makes UTXOs more friendly for offchain protocols, like sidechains and the Lightning Network.
Accounts make it easier to store the ‘state’, but easy doesn’t always mean better. With Ergo’s extended UTXO model, state transitions are more explicit and so they are cleaner – there are no unwanted surprises. It might be a little bit more burdensome to deal with, but it’s a lot better and more straightforward in terms of security.
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submitted by kushti to ergoplatformorg [link] [comments]

I found a $600k BCH theft that has gone unnoticed

Hello all, I'm (among other things) a graduate student getting a master's degree in cybersecurity. This last quarter for one of my classes, I was tasked to examine and recreate an exploit. For the actual exploit I was examining the "anyone can spend" segwit addresses on the BCH chain, and in my research I found a $600k theft that seems to have gone completely unnoticed.
You all might recall this $600k theft of segwit addresses, but it happened again in mid-February 2018 and there has been zero news about it.
BCH block 517171 contains solely segwit-stealing transactions. If you look at any given transaction, the inputs are all segwit program hashes spending a P2SH segwit output. I only caught it by accident, as I was originally going to talk about the publicized November attack.
The interesting thing I discovered about this was that it's harder to have stolen that segwit money than most people think. Both Unlimited and ABC nodes do not relay segwit-spending transactions, and Bitcoin ABC hard-coded in fRequireStandard, so you couldn't even force-relay them with a conf option. On top of that, miners keep their node IPs private for obvious avoiding-ddos-and-sybil-attack reasons, which means it's impossible to directly send transactions to miners. This means that the only way to actually execute this attack was to setup one's own mining pool running on a custom-modified client to allow non-standard transactions. Then you'd have to get enough hash power to mine a block yourself. I estimated the cost of renting enough hash power to do this at the time as around $30k-$60k to have a greater than 90% chance of mining a block within a 3 month window.
In order to simulate the attack, I spun up BTC, LTC, and BCH nodes in Docker, and wrote a Python script. The Python script started at segwit activation on BTC and LTC and it scanned every transaction in every block looking for P2SH segwit inputs as well as native segwit outputs, since these are the necessary hash pre-images to spend P2SH segwit money on the BCH chain. The script then also scanned the BCH chain for any native segwit outputs, as well as recording all P2SH outputs. (This was all saved in a MySQL database.) Then, at any point in time, I could simply query for BCH unspent native segwit outputs as well as P2SH outputs for which I had a known segwit hash pre-image. (If this was an attack I was doing real-time, I would probably also have a large mempool on each node and monitor unconfirmed tx's for useful info as well, but since this was after the fact, I just queried blocks sequentially.)
For the mining node that runs the pool, it would need to be firewalled behind (i.e. only connected to) an unmodified node in blocks-only mode, so that the segwit hash pre-images aren't transmitted out to the network, and so that no other unconfirmed transactions are transmitted in to the mining node. (The mining node should only be filling its block with segwit tx's in order to maximize the gain from the attack.)
Then a script should run continuously to grab segwit utxos from the MySQL database and construct high-fee transactions to send directly to the mining node. Unlike the November attack, each input should be spent in its own individual transaction, so that in the event it is individually spent, I don't negate a tx with other inputs. The overhead on having different transactions for each input is only about 8 extra bytes (the tx version and the locktime), so I think this is a good trade-off.
Then, the attacker simply rents hashing power and points it at his secret pool.
By the time February rolled around and the attack happened, my MySQL database had about 40 million BCH P2SH outputs and each query took about 3 minutes to execute. This of course would have been fine in the 10-minute block world of Bitcoin and BCH, but it means that I stopped my Python script after that time, so I don't know about any possible other attacks that happened before the clean stack rule was hard-forked into BCH.
It was pretty interesting to work through how this attack must have happened, and it was significantly harder to execute than I thought it would be given that all the money was "anyone can spend".
However, the most interesting thing about all this is that nobody has noticed. There is literally no news or mention of block 517171 or any of the transactions in it. My theory is that it is money that nobody misses -- i.e. misprogrammed custom wallet software for BTC nodes accidentally also sent out BCH transactions to the same address, given that BTC and BCH shared the same history until August 2017. And whatever person or entity is running those nodes is only thinking about BTC money and is completely oblivious to its misprogrammed problem of shipping BCH to segwit P2SH addresses.
Obviously, that's just a theory, but I think it's pretty reasonable. Given the intense community divide, I think it's very possible that a number of BTC users simply ignored money on the BCH chain, even though it's "free money" for them, simply out of ideological hatred.
Whatever the case, nobody has posted anywhere complaining of money stolen in that block. It seems to have gone completely unnoticed. (Which is why I'm posting this.) It was an interesting case study and I'd be curious to hear if anybody has any addition information or thoughts about it. I believe this was a different person than the November theft, because the way it was done was different -- the November theft had all the money in one transaction, but this February theft was done with separate individual transactions. Additionally worth noting is that the address which received the bulk of the money is still active, which means they're still out there.
Anyway, I thought this was interesting and worth posting.
submitted by exmachinalibertas to btc [link] [comments]

Satoshi's unmoved coins are the world's biggest prize in quantum-decryption, the canary in bitcoin's quantum coalmine -u/Anenome5

From this post: /Nullc explained that in the early years, mined bitcoin was paid to the pubkey, not the pubkey-hash.
I was used to the idea that any address that hadn't been spent from was considered quantum-safe. But this isn't true for any coins that were mined and not moved prior to 2012.
What this means is that all of Satoshi's coins are theoretically stealable by anyone who can pull off a successful quantum attack on bitcoin.
In fact, we must now consider them the canary in bitcoin's quantum coalmine because they will likely be the first to fall.
Anyone who can pull off a successful quantum attack on these early unmoved coins will make over $500 million dollars. Today.
Everyone will think Satoshi is moving his coins, but in fact it will more likely be a quantum attacker, and that is a shame, unless Satoshi himself wizes up and acts soon.
Beyond that, a successful quantum attack may allow someone to masquerade as Satoshi by giving them the private key to these original coins.
The day is quickly approaching where even if someone were to sign a message using Satoshi's known coin hoard addresses, we should think twice about whether this person actually is Satoshi or not, since it may not be long before a successful quantum attack will make his early addresses vulnerable to exposure.
Now this vulnerability changed in 2012, so current mining to an unspent address is, thankfully, safe. And if you have an address with coins in it that has never been spent from, you are also quantum safe.
I just fear we are in for more Satoshi-hoaxing and drama due to these old addresses. And if Satoshi's coins ever move, we should consider it likely that the quantum nut has finally been cracked by someone and we'll need to be more careful about address reuse.
There may be one other issue. There may be a lot of 2012 mined coined that has never been spent. Right now we consider much of this coin to be simply lost.
But in the near future, quantum cryptographers may be able to recover much of this coin and make perhaps another $500 million or so.
A billion dollar prize for the quantum researchers out there. Not a bad plum if you ask me.
submitted by parakite to Bitcoin [link] [comments]

Building Ergo: UTXO vs Account

Ergo takes the most secure and best-established features of Bitcoin and implements advanced new cryptographic features on its rock-solid foundations. This series explores the choices we have made in creating Ergo, with the first article unpacking the advantages of the UTXO model.
When you’re dealing with financial value, you cannot afford to take chances. Every architecture decision in a cryptocurrency platform has implications. While there are different ways to solve the same problem, some solutions are better tested and more reliable than others.
Like Bitcoin, Ergo uses the ‘UTXO’ (unspent transaction outputs) model, rather than the Account model used by platforms like Ethereum. There are a number of reasons why we have made this choice, but first it’s worth explaining a little about how the UTXO or ‘Box’ model works.
Most people think that the balance of an account is a simple number that is updated when you send or receive funds. This is the obvious way to approach the problem; after all, it is effectively how money works in the real world. Your bank account has a balance that is increased or decreased when different transfers are made in and out. This is how the ‘Account’ model operates: your balance on the blockchain is altered by transactions to and from the account.

How much dough?

The UTXO model, pioneered by Bitcoin, is quite different. You can think of this a bit like a person holding a series of lumps of bread dough. Their balance is the sum of these lumps, or UTXOs. Lumps can be divided or combined, before they are sent to a new address, but you always know where they came from. For example:
Alice has 100g of bread dough (100 ERG). She breaks off a lump of 75g and gives it to Bob, keeping 25g of ‘change’ for herself. Charlie has 250g of dough. He breaks off 150g and gives it to Bob, keeping 100g of change for himself. Bob breaks 20g of dough off the 150g lump he received from Charlie, and combines the resulting 130g with the 75g he received from Alice. He gives the total of 205g to Dave, keeping the 20g change for himself. Dave now has 205g of bread dough, which used to belong to Charlie. Before Charlie owned it, 75g used to belong to Alice, while 130g used to belong to Bob.
In the UTXO model, ‘lumps’ of coins can be combined and divided, but unlike bread dough, they aren’t mixed together. You can follow the history of funds right back to the coinbase transaction in which those coins were first mined. That’s very different to the Account model, where the balance of each account is simply changed. (You can, of course, check the blockchain to make sure the Account says what it should, but that’s not intrinsically necessary like it is with the UTXO approach.)

Why UTXO?

The UXTO model has several implications. For a start, each object is immutable – lumps of coins cannot be ‘edited’ like an Account balance is edited when a transaction is made. The balance is calculated from the transaction history, right back to the point those coins first came into existence.
That makes security much simpler, because either a UTXO exists in the form you are expecting, or it does not exist at all. With the account model, you need to carefully check that the account you’re dealing with is in the state it should be (and developers typically don’t do that properly). This also makes UTXOs more friendly for offchain protocols, like sidechains and the Lightning Network.
Accounts make it easier to store the ‘state’, but easy doesn’t always mean better. With Ergo’s extended UTXO model, state transitions are more explicit and so they are cleaner – there are no unwanted surprises. It might be a little bit more burdensome to deal with, but it’s a lot better and more straightforward in terms of security.
submitted by eleanorcwhite to CryptoCurrencies [link] [comments]

Building Ergo: UTXO vs Account

Ergo takes the most secure and best-established features of Bitcoin and implements advanced new cryptographic features on its rock-solid foundations. This series explores the choices we have made in creating Ergo, with the first article unpacking the advantages of the UTXO model.
When you’re dealing with financial value, you cannot afford to take chances. Every architecture decision in a cryptocurrency platform has implications. While there are different ways to solve the same problem, some solutions are better tested and more reliable than others.
Like Bitcoin, Ergo uses the ‘UTXO’ (unspent transaction outputs) model, rather than the Account model used by platforms like Ethereum. There are a number of reasons why we have made this choice, but first it’s worth explaining a little about how the UTXO or ‘Box’ model works.
Most people think that the balance of an account is a simple number that is updated when you send or receive funds. This is the obvious way to approach the problem; after all, it is effectively how money works in the real world. Your bank account has a balance that is increased or decreased when different transfers are made in and out. This is how the ‘Account’ model operates: your balance on the blockchain is altered by transactions to and from the account.
How much dough?
The UTXO model, pioneered by Bitcoin, is quite different. You can think of this a bit like a person holding a series of lumps of bread dough. Their balance is the sum of these lumps, or UTXOs. Lumps can be divided or combined, before they are sent to a new address, but you always know where they came from. For example:
Alice has 100g of bread dough (100 ERG). She breaks off a lump of 75g and gives it to Bob, keeping 25g of ‘change’ for herself. Charlie has 250g of dough. He breaks off 150g and gives it to Bob, keeping 100g of change for himself. Bob breaks 20g of dough off the 150g lump he received from Charlie, and combines the resulting 130g with the 75g he received from Alice. He gives the total of 205g to Dave, keeping the 20g change for himself. Dave now has 205g of bread dough, which used to belong to Charlie. Before Charlie owned it, 75g used to belong to Alice, while 130g used to belong to Bob.
In the UTXO model, ‘lumps’ of coins can be combined and divided, but unlike bread dough, they aren’t mixed together. You can follow the history of funds right back to the coinbase transaction in which those coins were first mined. That’s very different to the Account model, where the balance of each account is simply changed. (You can, of course, check the blockchain to make sure the Account says what it should, but that’s not intrinsically necessary like it is with the UTXO approach.)
Why UTXO?
The UXTO model has several implications. For a start, each object is immutable – lumps of coins cannot be ‘edited’ like an Account balance is edited when a transaction is made. The balance is calculated from the transaction history, right back to the point those coins first came into existence.
That makes security much simpler, because either a UTXO exists in the form you are expecting, or it does not exist at all. With the account model, you need to carefully check that the account you’re dealing with is in the state it should be (and developers typically don’t do that properly). This also makes UTXOs more friendly for offchain protocols, like sidechains and the Lightning Network.
Accounts make it easier to store the ‘state’, but easy doesn’t always mean better. With Ergo’s extended UTXO model, state transitions are more explicit and so they are cleaner – there are no unwanted surprises. It might be a little bit more burdensome to deal with, but it’s a lot better and more straightforward in terms of security.
submitted by eleanorcwhite to btc [link] [comments]

Hey r/ZEC - Messari just completely overhauled its Zcash profile

The Messari team has been working like crazy to update our profiles for the top 100 crypto assets and went all out on a new Zcash profile. Take a look and let us know what you think!
https://messari.io/asset/zcash
The profile page includes an overview, history of the project, profiles for the Electric Coin Company and Zcash Foundation, roadmap, contributor profiles, advisors, investors, launch details, funding details, supply curve details, security and governance details and more.
https://messari.io/asset/zcash/profile
Here's an excerpt detailing some of the key technological components of Zcash
Zcash, the protocol, is a distributed, time-stamped ledger of unspent transaction output (UTXO) transfers stored in an append-only chain of 2MB data blocks. A network of mining and economic nodes maintains this blockchain by validating, propagating, and competing to include pending transactions (mempool) in new blocks. Economic nodes (aka "full nodes") receive transactions from other network participants, validate them against network consensus rules and double-spend vectors, and propagate the transactions to other full nodes that also validate and propagate. Valid transactions are sent to the network's mempool waiting for mining nodes to confirm them via inclusion in the next block.
Mining nodes work to empty the mempool usually in a highest-to-lowest fee order by picking transactions to include in the next block and racing against each other to generate a hash less than the target number set by Zcash's difficulty adjustment algorithm. Zcash uses a Proof-of-Work (PoW) consensus mechanism to establish the chain of blocks with the most accumulated “work” (a.k.a., energy spent on solved hashes) as the valid chain. Other network peers can cheaply verify the chain’s work
In order to have zero-knowledge privacy in Zcash, the function determining the validity of a transaction according to the network’s consensus rules must return the answer of whether the transaction is valid or not, without revealing any of the information it performed the calculations on. This is done by encoding some of the network’s consensus rules in zk-SNARKs (zero-knowledge succinct non-interactive arguments of knowledge). Zk-SNARKs are specific zero-knowledge proofs whereby one can prove possession of certain information, e.g. a secret key, without revealing that information, and without any interaction between the prover and verifier.
Zcash addresses are either private (z-addresses) or transparent (t-addresses). Z-addresses start with a “z,” and t-addresses start with a "t." The two Zcash address types are interoperable, and funds can be transferred between z-addresses and t-addresses. A Z-to-Z transaction appears on the public blockchain, so it is known to have occurred and that the fees were paid. But the addresses, transaction amount and the memo field are all encrypted and not publicly visible. Transactions between two transparent addresses (t-addresses) work just like Bitcoin: The sender, receiver and transaction value are publicly visible. The owner of an address may choose to disclose z-address and transaction details with trusted third parties using view keys and payment disclosure.
The News and Research tab aggregates the latest Zcash news: https://messari.io/asset/zcash/news
The Historical Data tab offers downloadable daily market data: https://messari.io/asset/zcash/historical
The exchange page keeps tabs on Zcash trading volumes at various exchanges while the metrics page tracks things like Market info, on-chain info, Github Activity, and historical ROI:
https://messari.io/asset/zcash/exchanges
https://messari.io/asset/zcash/metrics
submitted by messaricrypto to zec [link] [comments]

[Blockchain Classroom] Lesson 19:How many steps does it take from initiating a transaction to the miner packing?

When you initiate a Bitcoin transfer, you need to broadcast the transaction to the entire network. After receiving the transaction, the mining node first puts it into the local memory pool for some basic verification, such as whether the Bitcoin spent on the transaction is an unspent transaction.

If the verification is successful, put it into the "Unconfirm Transaction" and wait for it to be packaged; if the verification fails, the transaction will be marked as "Invalid Transaction" and will not be packaged. In other words, mining nodes need to verify each transaction in time and update their own "Unconfirmed Transaction" while competing their computing power. After the node grabs the right to book, it will extract about 1,000 "unconfirmed transactions" from the "Unconfirmed Transaction" for packaging.

Sometimes our transactions cannot be packaged in time because the number of transactions in the "Unconfirmed Transaction" is too large, and the number of transactions that can be recorded in each block is limited, which will cause block congestion at this time.
submitted by BitRabbit_Team to u/BitRabbit_Team [link] [comments]

A quick update about ASICseer.com: We decided to go with Bitcoin Cash.

Hello again, guys! I wanted to give everyone an update on my previous post about ASICseer.
When I first posted, we had about 2,700 live running ASICs using our software. We recently released version 1.0.1 and reception has been great. We now have 4,000 ASICs on ASICseer.
We decided to make Bitcoin.com's BCH pool the default for our users and our dev fee (our users can change it, but over half of them have decided to remain mining Bitcoin Cash). Hopefully, we can keep those numbers up as we get more users!
At some point we had over 120,000 concurrent GPU rigs running ethOS, so I am confident that we will reach the same (or bigger) user base with ASICseer.
We chose Bitcoin Cash because Bitcoin Cash is the best implementation of the Bitcoin Protocol due to its fast, reliable, and inexpensive transactions. As many know, you must pay a fee for each unspent output, and mining definitely has a ton of unspent outputs. Our business model probably wouldn't even be possible using Bitcoin Core.
I also want to give a shoutout to Roger Ver for all the effort he has put into running such a great BCH pool. The amount of backend servers is staggeringly high, the support team is responsive, and the interface is amazing.
submitted by ugtarmas to btc [link] [comments]

03-04 21:25 - 'Building Ergo: UTXO vs Account' (self.Bitcoin) by /u/eleanorcwhite removed from /r/Bitcoin within 10-20min

'''
Ergo takes the most secure and best-established features of Bitcoin and implements advanced new cryptographic features on its rock-solid foundations. This series explores the choices we have made in creating Ergo, with the first article unpacking the advantages of the UTXO model.
When you’re dealing with financial value, you cannot afford to take chances. Every architecture decision in a cryptocurrency platform has implications. While there are different ways to solve the same problem, some solutions are better tested and more reliable than others.
Like Bitcoin, Ergo uses the ‘UTXO’ (unspent transaction outputs) model, rather than the Account model used by platforms like Ethereum. There are a number of reasons why we have made this choice, but first it’s worth explaining a little about how the UTXO or ‘Box’ model works.
Most people think that the balance of an account is a simple number that is updated when you send or receive funds. This is the obvious way to approach the problem; after all, it is effectively how money works in the real world. Your bank account has a balance that is increased or decreased when different transfers are made in and out. This is how the ‘Account’ model operates: your balance on the blockchain is altered by transactions to and from the account.
How much dough?
The UTXO model, pioneered by Bitcoin, is quite different. You can think of this a bit like a person holding a series of lumps of bread dough. Their balance is the sum of these lumps, or UTXOs. Lumps can be divided or combined, before they are sent to a new address, but you always know where they came from. For example:
Alice has 100g of bread dough (100 ERG). She breaks off a lump of 75g and gives it to Bob, keeping 25g of ‘change’ for herself. Charlie has 250g of dough. He breaks off 150g and gives it to Bob, keeping 100g of change for himself. Bob breaks 20g of dough off the 150g lump he received from Charlie, and combines the resulting 130g with the 75g he received from Alice. He gives the total of 205g to Dave, keeping the 20g change for himself. Dave now has 205g of bread dough, which used to belong to Charlie. Before Charlie owned it, 75g used to belong to Alice, while 130g used to belong to Bob.
In the UTXO model, ‘lumps’ of coins can be combined and divided, but unlike bread dough, they aren’t mixed together. You can follow the history of funds right back to the coinbase transaction in which those coins were first mined. That’s very different to the Account model, where the balance of each account is simply changed. (You can, of course, check the blockchain to make sure the Account says what it should, but that’s not intrinsically necessary like it is with the UTXO approach.)
Why UTXO?
The UXTO model has several implications. For a start, each object is immutable – lumps of coins cannot be ‘edited’ like an Account balance is edited when a transaction is made. The balance is calculated from the transaction history, right back to the point those coins first came into existence.
That makes security much simpler, because either a UTXO exists in the form you are expecting, or it does not exist at all. With the account model, you need to carefully check that the account you’re dealing with is in the state it should be (and developers typically don’t do that properly). This also makes UTXOs more friendly for offchain protocols, like sidechains and the Lightning Network.
Accounts make it easier to store the ‘state’, but easy doesn’t always mean better. With Ergo’s extended UTXO model, state transitions are more explicit and so they are cleaner – there are no unwanted surprises. It might be a little bit more burdensome to deal with, but it’s a lot better and more straightforward in terms of security.
'''
Building Ergo: UTXO vs Account
Go1dfish undelete link
unreddit undelete link
Author: eleanorcwhite
submitted by removalbot to removalbot [link] [comments]

Proposal: re-issue old unspent coins

Preamble


Hello everyone!
Before you start downvoting me, I know this is a proposal that has been submitted many times already, and that there is a strong opposition to this idea. But please, let me expose my arguments and how I imagine this change. I've read a lot of the previous posts and saw a lot of good points on both sides, but I still believe that discussing this idea is worth the time. You have the right to not agree, and if it is the case, please expose your arguments. I'm not here to enforce my idea, I want to share it with you all, have a constructive debate and contribute to the thinking process of making Bitcoin the best it can be. The outcome of this discussion can only be positive in my eyes, as sharing knowledge and opinions is enlightening for everyone.
The topic I'm going to discuss is a forecasting of possible future problems and a proposal to solve them. We can't know for sure how the future will unfold and if these problems will really happen, only time will tell. However, it is important to think about their possibility and come up with a solution before they even happen. The first step is to discuss about the likeliness of their happening. Then we can imagine possible solutions.
I know this post is long, but please read it in its entirety before answering. I will be covering several points in an ordered manner to avoid mixing everything up and be as clear as I can.
With that said, let's start.

A lot of coins are lost, and more will be

The main problem I want to address is lost coins. There will always be a maximum of 21 million bitcoins as you all know. However, a huge amount of coins have been lost in the past already, and more are lost every day. This is not yet a problem, as there is still plenty for everyone despite the scarcity, and also because a good amount is still issued with every new block. Our system is still practical. But as time goes by, less and less bitcoins will be available and usable. In a very long time, there might not be a single satoshi available anymore. This is a bit extreme, but I meant to highlight the fact that the current system is not sustainable in the very long term in my opinion.
Having less bitcoins available increase scarcity and drive the prices up, but it becomes impractical as well. Exchanges could not keep as many coins, dry up and you won't be able to get into the network that way anymore, especially if you're not a trader. I'm talking about so much scarcity that even a single satoshi is worth a lot. We are limited to 10e-8. (Please bear with me, I know it's been suggested to increase the amount of decimals, but I am just exposing the problem for now, not proposing solutions)

Mining will become less profitable

Mining reward decrease with each halving, and eventually, miner will only be rewarded with the fees. This is a side-problem. By that I mean that this is a related but less important point in my argumentation.
Miners need an incentive to mine, and this activity should be profitable, otherwise they would stop. No miners, no network. Will fees be enough to keep them mining? Will fees become incredibly high because of that? Will people still use the network if the fees are so high? I don't have the answer to these questions and it's harder to foresee than the lost coins. Anyway, lower fees are desirable for the users, and higher rewards are desirable for the miners. Any change that could reinforce this statement is welcome.

Proposal: invalidate and re-issue very old unspent UTXOs

To solve the problem of lost coins and too much scarcity, I suggest that very old unspent UTXOs can be invalidated and re-issued as mining rewards.
I understand that it can rightfully be seen as a theft. This is why I want to try to find a balance so more than 99% of re-issued coins are actually lost. I thought that an expiration time of 100 years (about the time of a long life) would be enough to consider that the coins are lost. It would also be enough in the case of a deceased person who didn't give the recovery phrase to their relatives. It is quite unlikely that holdings stay at the same place for so long. We're talking about a long lifetime!
Another way to increase the confidence in re-issuing actually lost coins is to implement a heartbeat into wallets so they move the UTXOs which are going to expire automatically to keep control. There are however legit concerns for cold storage, which would require user actions to trigger the heartbeat. But keep in mind that this heartbeat would probably never be needed in your entire life as the expiration time is so long. Users could also do this heartbeat themselves if they want to of course.
To avoid the miners to censor these transactions in order to try to get more profit (and actually stealing coins for that matter), this heartbeat would be done several years before expiration. I think that there wouldn't be so much incentive to censor these transactions because the profit from the censored heartbeat would come a very long time later. They would rather take the fees from the heartbeat transaction instead.

As a bonus, miners would get more than the fees as their reward. It would help keeping the fees lower and keeping the miners mine. Of course this is not a real solution for this problem, this is just a fortunate side-effect of the re-issuing. The system should not rely on that alone to sustain the network security.

Some people are against this because re-issuing lost coins would decrease scarcity and drive the prices down. I disagree with this statement. The hard limit of 21 million bitcoins will still be there, there will still be scarcity, and it will remain practical. No new coin will be issued. This core principle is kept.

Technically, the following change to the consensus rules would be needed: an unsigned transaction is valid if the inputs are spending UTXOs older than the expiration time or if the transaction has no outputs (everything goes to the miner).

I know there is a strong opposition to this idea among the Bitcoiners, probably because it is quite in contradiction with one of the core principles of the protocol: you are the only one controlling your money. I understand this point of view and I agree with it. This change would indeed create a way in which your coins can become someone else's without your consent. But as everything in life, no solution is perfect and can be either terribly bad or acceptable, depending on the conditions and if a balance has been found or not. I think that the 100 years expiration time plus heartbeat is a fair proposal.

Compared to increasing the decimals

I saw another idea while reading the previous submissions: increase the maximum amount of decimals. This solution would remove the problem of too much scarcity.
I believe that it is just as much in contradiction with the core principles of Bitcoin than re-issuing. That would mean that scarcity doesn't really have any sense anymore, and that we could just print more money, just like fiat.
This is not a bad idea by any means, but it's also an idea that sacrifices something. I think that the price to pay is way higher though.

Both solutions would require a hard fork. I've been proved wrong in the comments: allowing more decimals would apparently not require a hard fork.
However, taking the long expiration time into consideration, re-issuing would not need a hard fork if it's widely accepted and supported by the community. The oldest possible UTXO is currently 10 years old. That means that it could be re-issued in 90 years at minimum. This time span is way enough for the network to implement and spread the change without it taking effect. So when the first expired UTXO is re-issued, everyone in the network would already handle it (again, assuming the change is accepted) and thus, no hard fork would occur. On the other hand, adding another decimal would require a hard fork right away.

Another advantage of coin expiration and re-issuance is that it would prevent the UTXO database to ground unbound. Any unbounded database is not sustainable in the long term. Re-issued UTXOs are not new UTXOs. Adding decimals creates new UTXOs and opens the door to a potentially infinitely large database.

Why not submit the idea to an altcoin?

I'm foreseeing this question being asked to me. I believe in Bitcoin more than any other project when it comes to decentralized money. My aim is to try to make it the best I think it can be, not for the glory of having contributed to it, nor just for the sake of having my idea implemented somewhere. I want it to have meaning, to be relevant. If the community doesn't like the idea, so be it. I won't make another pointless hard fork. I understand that there must be consensus and if there is not, why trying so hard?

Conclusion

In conclusion, I am certain that we will face a problem one day or another regarding lost coins. There are solutions, but none of them is very good nor have support from the community. If we want a robust and sustainable decentralized digital money, we have to make a choice and compromise. Would you rather protect your short term interests in Bitcoin or have it change the world in the long term?

Now let's talk! I'm eagerly waiting for your responses. Please remain civil, expose your opinion without worrying about being downvoted, give arguments, question everything.
submitted by ImAFlyingPancake to Bitcoin [link] [comments]

Blockchain explainer

submitted by jdsilva7914 to programming [link] [comments]

How To Hack Bitcoin From Blockchain Unspent and Unconfirmed Transaction in 2020 Best Bitcoin Mining Site  Without Investment  Payment Proof! Hack Bitcoin From Blockchain Unspent and Unconfirmed Transaction in 2020 2020-BITCIOIN(BLOCKCHAIN)PRIVATE KEY GENERATOR INSTANTLY IMPORT AND SPENT NON-SPENTABLE BITCOINS$$!! A method for completely cleaning tainted bitcoins

There is no better time to accumulate an asset than when it its price is on the floor. Bitcoin has certainly been in that position for the past four months as it has failed to break major resistance at $4,000 and lulled around this price level. Bitcoin has certainly been in that position for the past four months as it has failed to break major resistance at $4,000 and lulled around this price A new report by crypto research company Bitooda claims that China accounts for only 50% of global Bitcoin mining capacity, and the U.S. 14%. The data is in sharp contrast with earlier findings An unspent output is simply an output of a transaction which isn't yet an input of another transaction. To take the example from ripper234's answer (in which generated coins are immediately spendable, and we don't have to wait 100 blocks for them to mature), where:. The first block contained 50 mined BTC in address A (A = 50) ‘Unspent Transaction Output’ (UTXO) is the unspent output from transactions involving Bitcoin. Probably the best way to explain this is to take a quick look at Bitcoin transactions. Each transaction starts with coins that bring balance to the ledger. Keeping a firm track on the overall total of your existing unspent outputs is a role better served by full Bitcoin nodes. This specific node can serve to validate all of the transactions and various blocks that it received.

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How To Hack Bitcoin From Blockchain Unspent and Unconfirmed Transaction in 2020

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