(PDF) A Relative Study on Bitcoin Mining

Reading on with this article i now know Bitcoins can only be created if miners solve a cryptographic puzzle. Since the difficulty of this puzzle increases the amount of computer power the whole miners invest, there is only a specific amount of cryptocurrency token that can be created in a /r/Bitcoin

Reading on with this article i now know Bitcoins can only be created if miners solve a cryptographic puzzle. Since the difficulty of this puzzle increases the amount of computer power the whole miners invest, there is only a specific amount of cryptocurrency token that can be created in a /Bitcoin submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
submitted by flacciduck to CryptoCurrency [link] [comments]

[OWL WATCH] Waiting for "IOTA TIME" 20; Hans's re-defined directions for DLT

Disclaimer: This is my editing, so there could be some misunderstandings...
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wellwho오늘 오후 4:50
u/Ben Royce****how far is society2 from having something clickable powered by IOTA?
Ben Royce오늘 오후 4:51
demo of basic tech late sep/ early oct. MVP early 2021
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HusQy
Colored coins are the most misunderstood upcoming feature of the IOTA protocol. A lot of people see them just as a competitor to ERC-20 tokens on ETH and therefore a way of tokenizing things on IOTA, but they are much more important because they enable "consensus on data".
Bob
All this stuff already works on neblio but decentralized and scaling to 3500 tps
HusQy
Neblio has 8 mb blocks with 30 seconds blocktime. This is a throughput of 8 mb / 30 seconds = 267 kb per second. Transactions are 401+ bytes which means that throughput is 267 kb / 401 bytes = 665 TPS. IOTA is faster, feeless and will get even faster with the next update ...
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HusQy
Which DLT would be more secure? One that is collaboratively validated by the economic actors of the world (coporations, companies, foundations, states, people) or one that is validated by an anonymous group of wealthy crypto holders?
HusQy
The problem with current DLTs is that we use protection mechanisms like Proof of Work and Proof of Stake that are inherently hard to shard. The more shards you have, the more you have to distribute your hashing power and your stake and the less secure the system becomes.
HusQy
Real world identities (i.e. all the big economic actors) however could shard into as many shards as necessary without making the system less secure. Todays DLTs waste trust in the same way as PoW wastes energy.
HusQy
Is a secure money worth anything if you can't trust the economic actors that you would buy stuff from? If you buy a car from Volkswagen and they just beat you up and throw you out of the shop after you payed then a secure money won't be useful either :P
HusQy
**I believe that if you want to make DLT work and be successful then we need to ultimately incorporate things like trust in entities into the technology.**Examples likes wirecard show that trusting a single company is problematic but trusting the economy as a whole should be at ...
**... least as secure as todays DLTs.**And as soon as you add sharding it will be orders of magnitude more secure. DLT has failed to deliver because people have tried to build a system in vacuum that completely ignores things that already exist and that you can leverage on.
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HusQy
Blockchain is a bit like people sitting in a room, trying to communicate through BINGO sheets. While they talk, they write down some of the things that have been said and as soon as one screams BINGO! he hands around his sheet to inform everybody about what has been said.
HusQy
If you think that this is the most efficient form of communication for people sitting in the same room and the answer to scalability is to make bigger BINGO sheets or to allow people to solve the puzzle faster then you will most probably never understand what IOTA is working on.
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HusQy
**Blockchain does not work with too many equally weighted validators.****If 400 validators produce a validating statement (block) at the same time then only one can survive as part of a longest chain.**IOTA is all about collaborative validation.
**Another problem of blockchain is that every transaction gets sent twice through the network. Once from the nodes to the miners and a 2nd time from the miners as part of a block.**Blockchain will therefore always only be able to use 50% of the network throughput.
And****the last problem is that you can not arbitrarily decrease the time between blocks as it breaks down if the time between blocks gets smaller than the average network delay. The idle time between blocks is precious time that could be used for processing transactions.
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HusQy
I am not talking about a system with a fixed number of validators but one that is completely open and permissionless where any new company can just spin up a node and take part in the network.
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HusQy
Proof of Work and Proof of Stake are both centralizing sybil-protection mechanism. I don't think that Satoshi wanted 14 mining pools to run the network.
And "economic clustering" was always the "end game" of IOTA.
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HusQy
**Using Proof of Stake is not trustless. Proof of Stake means you trust the richest people and hope that they approve your transactions. The rich are getting richer (through your fees) and you are getting more and more dependant on them.**Is that your vision of the future?
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HusQy
Please read again exactly what I wrote. I have not spoken of introducing governance by large companies, nor have I said that IOTA should be permissioned. We aim for a network with millions or even billions of nodes.

HusQy
That can't work at all with a permissioned ledger - who should then drop off all these devices or authorize them to participate in the network? My key message was the following: Proof of Work and Proof of Stake will always be if you split them up via sharding ...

HusQy
... less secure because you simply need fewer coins or less hash power to have the majority of the votes in a shard. This is not the case with trust in society and the economy. When all companies in the world jointly secure a DLT ...

HusQy
... then these companies could install any number of servers in any number of shards without compromising security, because "trust" does not become less just because they operate several servers. First of all, that is a fact and nothing else.

HusQy
Proof of Work and Proof of Stake are contrary to the assumption of many not "trustless" but follow the maxim: "In the greed of miners we trust!" The basic assumption that the miners do not destroy the system that generates income for them is fundamental here for the ...

HusQy
... security of every DLT. I think a similar assumption would still be correct for the economy as a whole: The companies of the world (and not just the big ones) would not destroy the system with which their customers pay them. In this respect, a system would be ...

HusQy
... which is validated by society and the economy as a whole probably just as "safely" as a system which is validated by a few anonymous miners. Why a small elite of miners should be better validators than any human and ...

HusQy
... To be honest, companies in this world do not open up to me. As already written in my other thread, safe money does not bring you anything if you have to assume that Volkswagen will beat you up and throw you out of the store after you ...

HusQy
... paid for a car. The thoughts I discussed say nothing about the immediate future of IOTA (we use for Coordicide mana) but rather speak of a world where DLT has already become an integral part of our lives and we ...

HusQy
... a corresponding number of companies, non-profit organizations and people have used DLT and where such a system could be implemented. The point here is not to create a governance solution that in any way influences the development of technology ...

HusQy
... or have to give nodes their OK first, but about developing a system that enables people to freely choose the validators they trust. For example, you can also declare your grandma to be a validator when you install your node or your ...

HusQy
... local supermarket. Economic relationships in the real world usually form a close-knit network and it doesn't really matter who you follow as long as the majority is honest. I also don't understand your criticism of censorship, because something like that in IOTA ...

HusQy
... is almost impossible. Each transaction confirms two other transactions which is growing exponentially. If someone wanted to ignore a transaction, he would have to ignore an exponential number of other transactions after a very short time. In contrast to blockchain ...

HusQy
... validators in IOTA do not decide what is included in the ledger, but only decide which of several double spends should be confirmed. Honest transactions are confirmed simply by having other transactions reference them ...

HusQy
... and the "validators" are not even asked. As for the "dust problem", this is indeed something that is a bigger problem for IOTA than for other DLTs because we have no fees, but it is also not an unsolvable problem. Bitcoin initially has a ...

HusQy
Solved similar problem by declaring outputs with a minimum amount of 5430 satoshis as invalid ( github.com/Bitcoin/Bitcoi…). A similar solution where an address must contain a minimum amount is also conceivable for IOTA and we are discussing ...

HusQy
... several possibilities (including compressing dust using cryptographic methods). Contrary to your assumption, checking such a minimum amount is not slow but just as fast as checking a normal transaction. And mine ...

HusQy
... In my opinion this is no problem at all for IOTA's use case. The important thing is that you can send small amounts, but after IOTA is feeless it is also okay to expect the recipients to regularly send their payments on a ...

HusQy
... merge address. The wallets already do this automatically (sweeping) and for machines it is no problem to automate this process. So far this was not a problem because the TPS were limited but with the increased TPS throughput of ...

HusQy
... Chrysalis it becomes relevant and appropriate solutions are discussed and then implemented accordingly. I think that was the most important thing first and if you have further questions just write :)

HusQy
And to be very clear! I really appreciate you and your questions and don't see this as an attack at all! People who see such questions as inappropriate criticism should really ask whether they are still objective. I have little time at the moment because ...

HusQy
... my girlfriend is on tour and has to take care of our daughter, but as soon as she is back we can discuss these things in a video. I think that the concept of including the "real world" in the concepts of DLT is really exciting and ...

HusQy
... that would certainly be exciting to discuss in a joint video. But again, that's more of a vision than a specific plan for the immediate future. This would not work with blockchain anyway but IOTA would be compatible so why not think about such things.
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HusQy
All good my big one :P But actually not that much has changed. There has always been the concept of "economic clustering" which is basically based on similar ideas. We are just now able to implement things like this for the first time.
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HusQy
Exactly. It would mean that addresses "cost" something but I would rather pay a few cents than fees for each transaction. And you can "take" this minimum amount with you every time you change to a new address.

HusQy
All good my big one :P But actually not that much has changed. There has always been the concept of "economic clustering" which is basically based on similar ideas. We are just now able to implement things like this for the first time.
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Relax오늘 오전 1:17
Btw. Hans (sorry for interrupting this convo) but what make people say that IOTA is going the permissioned way because of your latest tweets? I don't get why some people are now forecasting that... Is it because of missing specs or do they just don't get the whole idea?

Hans Moog [IF]오늘 오전 1:20
its bullshit u/Relaxan identity based system would still be open and permissionless where everybody can choose the actors that they deem trustworthy themselves but thats anyway just sth that would be applicable with more adoption
[오전 1:20]
for now we use mana as a predecessor to an actual reputation system

Sissors오늘 오전 1:31
If everybody has to choose actors they deem trustworthy, is it still permissionless? Probably will become a bit a semantic discussion, but still

Hans Moog [IF]오늘 오전 1:34
Of course its permissionless you can follow your grandma if you want to :p

Sissors오늘 오전 1:36
Well sure you can, but you will need to follow something which has a majority of the voting power in the network. Nice that you follow your grandma, but if others dont, her opinion (or well her nodes opinion) is completely irrelevant

Hans Moog [IF]오늘 오전 1:37
You would ideally follow the people that are trustworthy rather than your local drug dealers yeah

Sissors오늘 오전 1:38
And tbh, sure if you do it like that is easy. If you just make the users responsible for only connection to trustworthy nodes

Hans Moog [IF]오늘 오전 1:38
And if your grandma follows her supermarket and some other people she deems trustworthy then thats fine as well
[오전 1:38]
+ you dont have just 1 actor that you follow

Sissors오늘 오전 1:38
No, you got a large list, since yo uwant to follow those which actually matter. So you jsut download a standard list from the internet

Hans Moog [IF]오늘 오전 1:39
You can do that
[오전 1:39]
Is bitcoin permissionless? Should we both try to become miners?
[오전 1:41]
I mean miners that actually matter and not find a block every 10 trillion years 📷
[오전 1:42]
If you would want to become a validator then you would need to build up trust among other people - but anybody can still run a node and issue transactions unlike in hashgraph where you are not able to run your own nodes(수정됨)
[오전 1:48]
Proof of Stake is also not trustless - it just has a builtin mechanism that downloads the trusted people from the blockchain itself (the richest dudes)

Sissors오늘 오전 1:52
I think most agree it would be perfect if every person had one vote. Which is pr oblematic to implement of course. But I really wonder if the solution is to just let users decide who to trust. At the very least I expect a quite centralized network

Hans Moog [IF]오늘 오전 1:53
of course even a trust based system would to a certain degree be centralized as not every person is equally trustworthy as for example a big cooperation
[오전 1:53]
but I think its gonna be less centralized than PoS or PoW
[오전 1:53]
but anyway its sth for "after coordicide"
[오전 1:54]
there are not enough trusted entities that are using DLT, yet to make such a system work reasonably well
[오전 1:54]
I think the reason why blockchain has not really started to look into these kind of concepts is because blockchain doesnt work with too many equally weighted validators
[오전 1:56]
I believe that DLT is only going to take over the world if it is actually "better" than existing systems and with better I mean cheaper, more secure and faster and PoS and PoW will have a very hard time to deliver that
[오전 1:56]
especially if you consider that its not only going to settle value transfers

Relax오늘 오전 1:57
I like this clear statements, it makes it really clear that DLT is still in its infancy

Hans Moog [IF]오늘 오전 1:57
currently bank transfers are order of magnitude cheaper than BTC or ETH transactions

Hans Moog [IF]오늘 오전 1:57
and we you think that people will adopt it just because its crypto then I think we are mistaken
[오전 1:57]
The tech needs to actually solve a problem
[오전 1:57]
and tbh. currently people use PayPal and other companies to settle their payments
[오전 1:58]
having a group of the top 500 companies run such a service together is already much better(수정됨)
[오전 1:58]
especially if its fast and feeless
[오전 2:02]
and the more people use it, the more decentralized it actually becomes
[오전 2:02]
because you have more trustworthy entities to choose of

Evaldas [IF]오늘 오전 2:08
"in the greed of miners we trust"


submitted by btlkhs to Iota [link] [comments]

Where is Bitcoin Going and When?

Where is Bitcoin Going and When?

The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people.
The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets.
Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.

Stock Market Crash

The Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially.
All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity.
Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses.
Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely.
So, why inflate the economy so much?
Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value.
Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat.
Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis.
Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.

Economic Analysis of Bitcoin

The reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero.
Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology.
Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value.
Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block.
Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer.
Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed.
Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin.
Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public.
A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved.
Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely.
Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.

Trading or Investing?

The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY).
In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing.
The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors.
Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature
Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market.
According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains.
We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.

Technical Indicator Analysis of Bitcoin

Technical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
  • Volume – derived from the market itself, it is mostly irrelevant. The major problem with volume for stocks is that the US market open causes tremendous volume surges eradicating any intrinsic volume analysis. This does not occur with BTC, as it is open twenty-four-seven. At major highs and lows, the market is typically anemic. Most traders are not active at terminal discretes (peaks and troughs) because of levels of fear. Volume allows us confidence in time and price symmetry market inflection points, if we observe low volume at a foretold range of values. We can rationalize that an absolute discrete is usually only discovered and anticipated by very few traders. As the general market realizes it, a herd mentality will push the market in the direction favorable to defending it. Volume is also useful for swing trading, as chances for swing’s validity increases if an increase in volume is seen on and after the swing’s activation. Volume is steadily decreasing. Lows and highs are reached when volume is lower.
Therefore, due to the relatively high volume on the 12th of March, we can safely determine that a low for BTC was not reached.
  • VIX – Volatility Index, this technical indicator indicates level of fear by the amount of options-based “insurance” in portfolios. A low VIX environment, less than 20 for the S&P index, indicates a stable market with a possible uptrend. A high VIX, over 20, indicates a possible downtrend. VIX is essentially useless for BTC as BTC-based options do not exist. It allows us to predict the market low for $SPY, which will have an indirect impact on BTC in the short term, likely leading to the yearly low. However, it is equally important to see how VIX is changing over time, if it is decreasing or increasing, as that indicates increasing or decreasing fear. Low volatility allows high leverage without risk or rest. Occasionally, markets do rise with high VIX.
As VIX is unusually high, in the forties, we can be confident that a downtrend for the S&P 500 is imminent.
  • RSI (Relative Strength Index): The most important technical indicator, useful for determining highs and lows when time symmetry is not availing itself. Sometimes analysis of RSI can conflict in different time frames, easiest way to use it is when it is at extremes – either under 30 or over 70. Extremes can be used for filtering highs or lows based on time-and-price window calculations. Highly instructive as to major corrective clues and indicative of continued directional movement. Must determine if longer-term RSI values find support at same values as before. It is currently at 73.56.
  • Secondly, RSI may be used as a high or low filter, to observe the level that short-term RSI reaches in counter-trend corrections. Repetitions based on market movements based on RSI determine how long a trade should be held onto. Once a short term RSI reaches an extreme and stay there, the other RSI’s should gradually reach the same extremes. Once all RSI’s are at extreme highs, a trend confirmation should occur and RSI’s should drop to their midpoint.

Trend Definition Analysis of Bitcoin

Trend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail.
Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form.
A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.

Time Symmetry Analysis of Bitcoin

Time is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding.
Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading.
Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure.
Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price.
Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not.
We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in.
What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
  • Yearly Lows (last seven years): 1/1/13, 4/10/14, 1/15/15, 1/17/16, 1/1/17, 12/15/18, 2/6/19
  • Monthly Mode: 1, 1, 1, 1, 2, 4, 12
  • Daily Mode: 1, 1, 6, 10, 15, 15, 17
  • Monthly Lows (for the last year): 3/12/20 (10:00pm), 2/28/20 (7:09am), 1/2/20 (8:09pm), 12/18/19 (8:00am), 11/25/19 (1:00am), 10/24/19 (2:59am), 9/30/19 (2:59am), 8/29,19 (4:00am), 7/17/19 (7:59am), 6/4/19 (5:59pm), 5/1/19 (12:00am), 4/1/19 (12:00am)
  • Daily Lows Mode for those Months: 1, 1, 2, 4, 12, 17, 18, 24, 25, 28, 29, 30
  • Hourly Lows Mode for those Months (Military time): 0100, 0200, 0200, 0400, 0700, 0700, 0800, 1200, 1200, 1700, 2000, 2200
  • Minute Lows Mode for those Months: 00, 00, 00, 00, 00, 00, 09, 09, 59, 59, 59, 59
  • Day of the Week Lows (last twenty-six weeks):
Weighted Times are repetitions which appears multiple times within the same list, observed and accentuated once divided into relevant sections of the histogram. They are important in the presently defined trading time period and are similar to a mathematical mode with respect to a series. Phased times are essentially periodical patterns in histograms, though they do not guarantee inflection points
Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows.
Therefore, we have two primary dates from our histogram.
1/1/21, 1/15/21, and 1/29/21
2:00am, 8:00am, 12:00pm, or 10:00pm
In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations.
The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year!
Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market.
Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020.
The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX.
Therefore, our timeline looks like:
  • 2/14/20 – yearly high ($10372 USD)
  • 3/12/20 – yearly low thus far ($3858 USD)
  • 5/9/20 – T-Theory true yearly low (BTC between 4863 and 3569)
  • 5/26/20 – hashrate difficulty halvening
  • 11/14/20 – stock market low
  • 1/15/21 – yearly low for BTC, around $8528
  • 8/19/21 – end of stock bear market
  • 11/26/21 – eighteen months from halvening, average peak from halvenings (BTC begins rising from $3000 area to above $23,312)
  • 4/23/22 – all-time high
Taken from my blog: http://aliamin.info/2020/
submitted by aibnsamin1 to Bitcoin [link] [comments]

Farming Fiat with #Bitcoin

Unlike Federal Reserve $USD tender, #Bitcoin cannot be created without Proof Of Work. The cryptographic math challenges the miners who keep the network secure to expend hash power to solve the puzzles of transactions. Bitcoin also has to be spent in order to prove that a transaction is sincere. When all 21 million bitcoin are found miners will earn from transactions. By that time off chain Micro transactions will be handled on layer 2 and batches will be proven on later 1.
This during the next 20 years.
Except for the fact that #Bitcoin started this first and continues to exponentially increase its ability to farm #FIAT faster than the Federal Reserve can create it other #cryptocurrency may claim the same.
Volume of transactions, hash rates, miners and nodes continue.
submitted by ogfomk to ogfomk [link] [comments]

Farming Fiat with #Bitcoin

Unlike Federal Reserve $USD tender, #Bitcoin cannot be created without Proof Of Work. The cryptographic math challenges the miners who keep the network secure to expend hash power to solve the puzzles of transactions. Bitcoin also has to be spent in order to prove that a transaction is sincere. When all 21 million bitcoin are found miners will earn from transactions. By that time off chain Micro transactions will be handled on layer 2 and batches will be proven on later 1.
This during the next 20 years.
Except for the fact that #Bitcoin started this first and continues to exponentially increase its ability to farm #FIAT faster than the Federal Reserve can create it other #cryptocurrency may claim the same.
Volume of transactions, hash rates, miners and nodes continue.
submitted by ogfomk to ogfomk [link] [comments]

Bitcoin

Coming into some money and wondering if Bitcoin will actually live up to the hype. Thoughts? Discussion?
submitted by mamafig9512 to investing [link] [comments]

Delegated Proof Of Stake Vs Proof Of Work

You probably have heard of Proof of Stake (PoS) and Proof of Work (PoW) consensus mechanisms used by popular blockchain platforms. While most people have a basic understanding of these algorithms and the cryptocurrency platforms that have integrated them, few know about what they are and how they work. The inner workings of these systems can introduce users to a healthy list of benefits from the different algorithms in the marketplace today.
To this point, we hope to highlight the key differences between Delegated Proof of Stake, Proof of Stake, and Proof of Work algorithms. Before we go further, it is important to bear in mind that these different algorithms are referred to as consensus mechanisms and they are current requirements that are used to confirm a number of transactions on a blockchain without necessarily needing a third-party.
A Brief History of Blockchain Algorithms
Being a core objective and achievement of blockchain technology, It has been revealed that when the Bitcoin network was under development, Satoshi Nakamoto, the pseudo founder of this network sought ways to have transactions on the network verified without having to seek the help of any third-party system or application. This concept empowers networks to operate with fewer intuitions charging “renter’s fees’ for utilizing their networks.
He achieved this by creating a Proof of Work algorithm. In simple terms, Proof of work can be said to be a mechanism that is used to determine how a blockchain is capable of reaching consensus. It is used to determine or find out how the network is sure that the transaction to be carried out is valid and that someone is not trying to double-spend or do something bad on the network.
The overall protocol is powered by many different nodes which today have become known as miners. With this model, much of the power can be transferred to miners and there are not as many incentives to hold on to assets. Thus, a new model emerged known as Proof of Stake in the later 2010s. This has since been altered and optimized further to create what is known today as Delegated Proof of Stake.
Proof Of Work
As mentioned earlier, Proof of Work simply refers to a mechanism that is used to validate transactions on a blockchain. The origin of this mechanism can be traced back to 1993 in a journal that was published by Moni Noar and Cynthia Dwork. While this journal talked about this mechanism or algorithm, it was not until 1999 that the term "Proof of Work" was formed by Marcus Jakobson.
Going through the Bitcoin white paper, you'll find out that it was theorized by Satoshi and his team of developers that the only way to overpower the strength of blockchain networks was to launch the 51% attack. The white paper went on to reveal that for a majority of users on the Bitcoin network not to get total control of the network, it was only best that the Proof of Work system is integrated into the network. Thus, helping to prevent the worries of a 51% attack by distributing the network across a wide enough number of nodes and having the proper incentives in place for users to hold the asset.
All and all, the application of Proof of Work in the Bitcoin network has been described as one of the central ideas on which the network was built upon and to many other blockchain technologies that have emerged since Bitcoin. Proof of Work systems gave way for a trustless and distributed system unseen by the world before.
How Proof Of Work Operates
Like most of the other crypto networks, Bitcoin users can mine their cryptos with the Proof of Work algorithm. With PoW, miners on the Bitcoin network will have to solve what is referred to as a "cryptographic puzzle" if they are to validate transactions. For a better understanding of how mining works on the PoW algorithm, one can rightly refer to it as a race where miners on the network will have to compete with each other to solve a puzzle. On the network, the answers to these puzzles are referred to as "hash".
For miners on the network, each transaction they are able to validate sees them earn the cryptocurrency of the network. In the case of Bitcoin, they get BTC coins. Aside from the crypto coins they earn, they are also rewarded transaction fees paid by users to have their transactions validated. On a PoW mining algorithm, the mathematical puzzles to be solved are complex and would require miners to have large computational power if they are to compete with the other miners on the network. The implications of this algorithm used by the Bitcoin network and a number of other crypto networks include;
Proof Of Stake
With a number of problems supposedly identified by most people in the blockchain community using Proof of Work algorithms, a search for a better algorithm or consensus mechanism was on. Most scholars sought alternatives to the PoW system and that was how the Proof of Stake consensus mechanism was discovered by Sunny King and Scott Nadal in 2012. Unlike the Proof of Work that requires miners on the network to solve mathematical puzzles if they are to earn rewards, Proof of Stake requires miners to stake or lock a specific amount of coins away if they are to validate transactions and earn rewards.
How Delegated Proof Of Stake Operates
The mathematical puzzles miners are expected to solve are not as difficult as they are on the PoW system. All miners have to prove is that they have a certain amount of coins staked or locked up somewhere. This consensus mechanism is used on the Ethereum network which is currently the second most valuable crypto platform in the world. To get an idea of how delegated Proof of Stake works on the Ethereum blockchain, we'll share an example. On the Ethereum network, if a miner owns about 4% of ETH coins, they will be able to mine 4% of all transactions that are carried out on the network. This simply means that for miners to be able to mine more and earn rewards on the network, they will have to own a large amount of ETH coins.
A delegated PoS algorithm was proposed to be a fairer version of the PoW because it offers anyone an opportunity to become a miner. Unlike the PoW system, PoS does not require large computational power for users to validate transactions. It is said to be a better version of the PoW because it ensures that anyone with a little amount of ETH can conveniently mine and earn rewards on the network, unlike the PoW algorithm where users will have to spend thousands of dollars acquiring advanced mining rigs and hardware to mine. Individuals with less advanced mining rigs will find it extremely difficult to mine on the PoW network.
In summary, these two consensus algorithms currently power a number of crypto platforms. The technologies empower blockchains to operate in an efficient manner, previously unattainable by a single machine. However, with the combined computing power of many different nodes operating across the network, both models present a great foundation for blockchain technology today.
submitted by affilcoin to affilcoin [link] [comments]

What Is Proof of Work (PoW)?

What Is Proof of Work (PoW)?
Contents
https://preview.redd.it/6xrtu2r56v151.png?width=1920&format=png&auto=webp&s=21a0175a00217614738e88b6c9d47fd07e0ae305
Introduction
Proof of Work (commonly abbreviated to PoW) is a mechanism for preventing double-spends. Most major cryptocurrencies use this as their consensus algorithm. That’s just what we call a method for securing the cryptocurrency’s ledger.
Proof of Work was the first consensus algorithm to surface, and, to date, remains the dominant one. It was introduced by Satoshi Nakamoto in the 2008 Bitcoin white paper, but the technology itself was conceived long before then.
Adam Back’s HashCash is an early example of a Proof of Work algorithm in the pre-cryptocurrency days. By requiring senders to perform a small amount of computing before sending an email, receivers could mitigate spam. This computation would cost virtually nothing to a legitimate sender, but quickly add up for someone sending emails en masse.

What is a double-spend?

A double-spend occurs when the same funds are spent more than once. The term is used almost exclusively in the context of digital money — after all, you’d have a hard time spending the same physical cash twice. When you pay for a coffee today, you hand cash over to a cashier who probably locks it in a register. You can’t go to the coffee shop across the road and pay for another coffee with the same bill.
In digital cash schemes, there’s the possibility that you could. You’ve surely duplicated a computer file before — you just copy and paste it. You can email the same file to ten, twenty, fifty people.
Since digital money is just data, you need to prevent people from copying and spending the same units in different places. Otherwise, your currency will collapse in no time.
For a more in-depth look at double-spending, check out Double Spending Explained.

Why is Proof of Work necessary?

If you’ve read our guide to blockchain technology, you’ll know that users broadcast transactions to the network. Those transactions aren’t immediately considered valid, though. That only happens when they get added to the blockchain.
The blockchain is a big database that every user can see, so they can check if funds have been spent before. Picture it like this: you and three friends have a notepad. Anytime one of you wants to make a transfer of whatever units you’re using, you write it down — Alice pays Bob five units, Bob pays Carol two units, etc.
There’s another intricacy here — each time you make a transaction, you refer to the transaction where the funds came from. So, if Bob was paying Carol with two units, the entry would actually look like the following: Bob pays Carol two units from this earlier transaction with Alice.
Now, we have a way to track the units. If Bob tries to make another transaction using the same units he just sent to Carol, everyone will know immediately. The group won’t allow the transaction to be added to the notepad.
Now, this might work well in a small group. Everyone knows each other, so they’ll probably agree on which of the friends should add transactions to the notepad. What if we want a group of 10,000 participants? The notepad idea doesn’t scale well, because nobody wants to trust a stranger to manage it.
This is where Proof of Work comes in. It ensures that users aren’t spending money that they don’t have the right to spend. By using a combination of game theory and cryptography, a PoW algorithm enables anyone to update the blockchain according to the rules of the system.

How does PoW work?

Our notepad above is the blockchain. But we don’t add transactions one by one — instead, we lump them into blocks. We announce the transactions to the network, then users creating a block will include them in a candidate block. The transactions will only be considered valid once their candidate block becomes a confirmed block, meaning that it has been added to the blockchain.
Appending a block isn’t cheap, however. Proof of Work requires that a miner (the user creating the block) uses up some of their own resources for the privilege. That resource is computing power, which is used to hash the block’s data until a solution to a puzzle is found.
Hashing the block’s data means that you pass it through a hashing function to generate a block hash. The block hash works like a “fingerprint” — it’s an identity for your input data and is unique to each block.
It’s virtually impossible to reverse a block hash to get the input data. Knowing an input, however, it’s trivial for you to confirm that the hash is correct. You just have to submit the input through the function and check if the output is the same.
In Proof of Work, you must provide data whose hash matches certain conditions. But you don’t know how to get there. Your only option is to pass your data through a hash function and to check if it matches the conditions. If it doesn’t, you’ll have to change your data slightly to get a different hash. Changing even one character in your data will result in a totally different result, so there’s no way of predicting what an output might be.
As a result, if you want to create a block, you’re playing a guessing game. You typically take information on all of the transactions that you want to add and some other important data, then hash it all together. But since your dataset won’t change, you need to add a piece of information that is variable. Otherwise, you would always get the same hash as output. This variable data is what we call a nonce. It’s a number that you’ll change with every attempt, so you’re getting a different hash every time. And this is what we call mining.
Summing up, mining is the process of gathering blockchain data and hashing it along with a nonce until you find a particular hash. If you find a hash that satisfies the conditions set out by the protocol, you get the right to broadcast the new block to the network. At this point, the other participants of the network update their blockchains to include the new block.
For major cryptocurrencies today, the conditions are incredibly challenging to satisfy. The higher the hash rate on the network, the more difficult it is to find a valid hash. This is done to ensure that blocks aren’t found too quickly.
As you can imagine, trying to guess massive amounts of hashes can be costly on your computer. You’re wasting computational cycles and electricity. But the protocol will reward you with cryptocurrency if you find a valid hash.
Let’s recap what we know so far:
  • It’s expensive for you to mine.
  • You’re rewarded if you produce a valid block.
  • Knowing an input, a user can easily check its hash — non-mining users can verify that a block is valid without expending much computational power.
So far, so good. But what if you try to cheat? What’s to stop you from putting a bunch of fraudulent transactions into the block and producing a valid hash?
That’s where public-key cryptography comes in. We won’t go into depth in this article, but check out What is Public-Key Cryptography? for a comprehensive look at it. In short, we use some neat cryptographic tricks that allow any user to verify whether someone has a right to move the funds they’re attempting to spend.
When you create a transaction, you sign it. Anyone on the network can compare your signature with your public key, and check whether they match. They’ll also check if you can actually spend your funds and that the sum of your inputs is higher than the sum of your outputs (i.e., that you’re not spending more than you have).
Any block that includes an invalid transaction will be automatically rejected by the network. It’s expensive for you to even attempt to cheat. You’ll waste your own resources without any reward.
Therein lies the beauty of Proof of Work: it makes it expensive to cheat, but profitable to act honestly. Any rational miner will be seeking ROI, so they can be expected to behave in a way that guarantees revenue.

Proof of Work vs. Proof of Stake

There are many consensus algorithms, but one of the most highly-anticipated ones is Proof of Stake (PoS). The concept dates back to 2011, and has been implemented in some smaller protocols. But it has yet to see adoption in any of the big blockchains.
In Proof of Stake systems, miners are replaced with validators. There’s no mining involved and no race to guess hashes. Instead, users are randomly selected — if they’re picked, they must propose (or “forge”) a block. If the block is valid, they’ll receive a reward made up of the fees from the block’s transactions.
Not just any user can be selected, though — the protocol chooses them based on a number of factors. To be eligible, participants must lock up a stake, which is a predetermined amount of the blockchain’s native currency. The stake works like bail: just as defendants put up a large sum of money to disincentivize them from skipping trial, validators lock up a stake to disincentivize cheating. If they act dishonestly, their stake (or a portion of it) will be taken.
Proof of Stake does have some benefits over Proof of Work. The most notable one is the smaller carbon footprint — since there’s no need for high-powered mining farms in PoS, the electricity consumed is only a fraction of that consumed in PoW.
That said, it has nowhere near the track record of PoW. Although it could be perceived as wasteful, mining is the only consensus algorithm that’s proven itself at scale. In just over a decade, it has secured trillions of dollars worth of transactions. To say with certainty whether PoS can rival its security, staking needs to be properly tested in the wild.

Closing thoughts

Proof of Work was the original solution to the double-spend problem and has proven to be reliable and secure. Bitcoin proved that we don’t need centralized entities to prevent the same funds from being spent twice. With clever use of cryptography, hash functions, and game theory, participants in a decentralized environment can agree on the state of a financial database.
submitted by D-platform to u/D-platform [link] [comments]

Bitcoin’s Security and Hash Rate Explained

Bitcoin’s Security and Hash Rate Explained
As the Bitcoin hash rate reaches new all-time highs, there’s never been a better time to discuss blockchain security and its relation to the hashing power and the Proof of Work (PoW) that feed the network. The Bitcoin system is based on a form of decentralized trust, heavily relying on cryptography. This makes its blockchain highly secure and able to be used for financial transactions and other operations requiring a trustless ledger.
Far from popular belief, cryptography dates back to thousands of years ago. The same root of the word encryption — crypt — comes from the Greek word ‘kryptos’, meaning hidden or secret. Indeed, humans have always wanted to keep some information private. The Assyrians, the Chinese, the Romans, and the Greeks, they all tried over the centuries to conceal some information like trade deals or manufacturing secrets by using symbols or ciphers carved in stone or leather. In 1900 BC, Egyptians used hieroglyphics and experts often refer to them as the first example of cryptography.
Back to our days, Bitcoin uses cryptographic technologies such as:
  1. Cryptographic hash functions (i.e. SHA-256 and RIPEMD-160)
  2. Public Key Cryptography (i.e. ECDSA — the Elliptic Curve Digital Signature Algorithm)
While Public Key Cryptography, bitcoin addresses, and digital signatures are used to provide ownership of bitcoins, the SHA-256 hash function is used to verify data and block integrity and to establish the chronological order of the blockchain. A cryptographic hash function is a mathematical function that verifies the integrity of data by transforming it into a unique unidentifiable code.
Here is a graphic example to make things more clear:

– Extract from the MOOC (Massive Open Online Course) in Digital Currencies at the University of Nicosia.
Furthermore, hash functions are used as part of the PoW algorithm, which is a prominent part of the Bitcoin mining algorithm and this is what is of more interest to understand the security of the network. Mining creates new bitcoins in each block, almost like a central bank printing new money and creates trust by ensuring that transactions are confirmed only when enough computational power is devoted to the block that contains them. More blocks mean more computation, which means more trust.
With PoW, miners compete against each other to complete transactions on the network and get rewarded. Basically they need to solve a complicated mathematical puzzle and a possibility to easily prove the solution. The more hashing power, the higher the chance to resolve the puzzle and therefore perform the proof of work. In more simple words, bitcoins exist thanks to a peer to peer network that helps validate transactions in the ledger and provides enough trust to avoid that a third party is involved in the process. It also exists because miners give it life by resolving that computational puzzle, through the mining reward incentive they are receiving.
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Sixty free lectures from Princeton on bitcoin and cryptocurrencies. Total time 13hr 20min. Links in post.

This video series is available with a community and some assignments on Coursera. For extra creddit the professors wrote a book to go with the course. Free pre-release pdf, Amazon hardcover and digital, as well as Chinese, and Japanese translations.
Enjoy :)
Intro to Crypto and Cryptocurrencies
1.0 Welcome - 2 mins 1.1 Cryptographic Hash Functions - 18 mins 1.2 Hash Pointers and Data Structures - 8 mins 1.3 Digital Signatures - 9 mins 1.4 Public Keys as Identities - 5 mins 1.5 A Simple Cryptocurrency - 14 mins
How Bitcoin Achieves Decentralization
2.1 Centralization vs. Decentralization - 4 mins 2.2 Distributed Conesensus - 13 mins 2.3 Consensus Without Identity: the Blockchain - 17 mins 2.4 Incentives and Proof of Work - 19 mins 2.5 Putting It All Together - 18 mins
Mechanics of Bitcoin
3.1 Bitcoin Transactions - 11 mins 3.2 Bitcoin Scripts - 15 mins 3.3 Applications of Bitcoin Scripts - 14 mins 3.4 Bitcoin Blocks - 5 mins 3.5 The Bitcoin Network - 18 mins 3.6 Limitations & Improvements - 11 mins
How to Store and Use Bitcoin
4.1 How to Store and Use Bitcoins - 6 mins 4.2 Hot and Cold Storage - 13 mins 4.3 Splitting and Sharing Keys - 11 mins 4.4 Online Wallets and Exchanges - 19 mins 4.5 Payment Services - 8 mins 4.6 Transaction Fees - 5 mins 4.7 Currency Exchange Markets - 16 mins
Bitcoin Mining
5.1 The Task of Bitcoin Miners - 10 mins 5.2 Mining Hardware - 23 mins 5.3 Energy Consumption & Ecology - 14 mins 5.4 Mining Pools - 14 mins 5.5 Mining Incentives and Strategies - 23 mins
Bitcoin and Anonymity
6.1 Anonymity Basics - 26 mins 6.2 How to De-anonymize Bitcoin - 18 mins 6.3 Mixing - 21 mins 6.4 Decentralized Mixing - 14 mins 6.5 Zerocoin and Zerocash - 19 mins 6.6 Tor and the Silk Road - 11 mins
Community, Politics, and Regulation
7.1 Consensus in Bitcoin - 6 mins 7.2 Bitcoin Core Software - 10 mins 7.3 Stakeholders: Who's in Charge - 9 mins 7.4 Roots of Bitcoin - 9 mins 7.5 Governments Notice Bitcoin - 9 mins 7.6 Anti Money-Laundering - 5 mins 7.7 Regulation - 11 mins 7.8 New York's BitLicense Proposal - 10 mins
Alternative Mining Puzzles
8.1 Essential Puzzle Requirements - 5 mins 8.2 ASIC Resistant Puzzles - 13 mins 8.3 Proof-of-useful-work - 9 mins 8.4 Nonoutsourceable Puzzles - 7 8.5 Proof-of-Stake "Virtual Mining" - 8 mins
Bitcoin as a Platform
9.1 Bitcoin as an Append-Only Log - 16 mins 9.2 Bitcoin as Smart Property - 16 mins 9.3 Secure Multi-Party Lotteries in Bitcoin - 10 mins 9.4 Bitcoin as Randomness Source - 18 mins 9.5 Prediction Markets & Real-World Data Feeds - 23 mins
Altcoins and the Cryptocurrency Ecosystem
10.1 Short History of Altcoins - 21 mins 10.2 Interaction Between Bitcoin and Altcoins - 15 mins 10.3 Lifecycle of an Altcoin - 15 mins 10.4 Bitcoin-Backed Altcoins, "Side Chains" - 11 mins
The Fututre of Bitcoin?
11.1 The Blockchain as a Vehicle for Decentralization - 14 mins 11.2 Routes to Blockchain Integration - 28 mins 11.3 What Can We Decentralize? - 24 mins 11.4 When is Decentralization a Good Idea? - 16 mins
submitted by ccjunkiemonkey to Bitcoin [link] [comments]

What is cryptocurrency mining?

What is cryptocurrency mining?
Cryptocurrency Mining is when a computer is used to solve a cryptographic puzzles in order to build blocks and miners are rewarded with the cryptocurrency.
Learn more about theHamdan Token. Click Here: www.hamdantoken.io
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#eth #market #blockchain #money #forex #trading #bitcoinmining #cryptonews #investment #entrepreneur
#cryptotrading #business #forextrader #investing #bitcoinnews #litecoin #invest #binaryoptions
#bitcoincash #coinbase #bitcoins #ripple #investor #trader #binance
https://preview.redd.it/nzv1tc2s2z641.jpg?width=800&format=pjpg&auto=webp&s=dc28a7f6cdd6bd80fb24804a107691289bdaa048
submitted by hamdantokenofficial to u/hamdantokenofficial [link] [comments]

Don't panic, just learn. Sixty free lectures from Princeton on bitcoin and cryptocurrencies. Total time 13hr 20min. Links in post.

This video series is available with a community and some assignments on Coursera. For extra creddit the professors wrote a book to go with the course. Free pre-release pdf, Amazon hardcover and digital, as well as Chinese, and Japanese translations.
Enjoy :)
Intro to Crypto and Cryptocurrencies
1.0 Welcome - 2 mins 1.1 Cryptographic Hash Functions - 18 mins 1.2 Hash Pointers and Data Structures - 8 mins 1.3 Digital Signatures - 9 mins 1.4 Public Keys as Identities - 5 mins 1.5 A Simple Cryptocurrency - 14 mins
How Bitcoin Achieves Decentralization
2.1 Centralization vs. Decentralization - 4 mins 2.2 Distributed Conesensus - 13 mins 2.3 Consensus Without Identity: the Blockchain - 17 mins 2.4 Incentives and Proof of Work - 19 mins 2.5 Putting It All Together - 18 mins
Mechanics of Bitcoin
3.1 Bitcoin Transactions - 11 mins 3.2 Bitcoin Scripts - 15 mins 3.3 Applications of Bitcoin Scripts - 14 mins 3.4 Bitcoin Blocks - 5 mins 3.5 The Bitcoin Network - 18 mins 3.6 Limitations & Improvements - 11 mins
How to Store and Use Bitcoin
4.1 How to Store and Use Bitcoins - 6 mins 4.2 Hot and Cold Storage - 13 mins 4.3 Splitting and Sharing Keys - 11 mins 4.4 Online Wallets and Exchanges - 19 mins 4.5 Payment Services - 8 mins 4.6 Transaction Fees - 5 mins 4.7 Currency Exchange Markets - 16 mins
Bitcoin Mining
5.1 The Task of Bitcoin Miners - 10 mins 5.2 Mining Hardware - 23 mins 5.3 Energy Consumption & Ecology - 14 mins 5.4 Mining Pools - 14 mins 5.5 Mining Incentives and Strategies - 23 mins
Bitcoin and Anonymity
6.1 Anonymity Basics - 26 mins 6.2 How to De-anonymize Bitcoin - 18 mins 6.3 Mixing - 21 mins 6.4 Decentralized Mixing - 14 mins 6.5 Zerocoin and Zerocash - 19 mins 6.6 Tor and the Silk Road - 11 mins
Community, Politics, and Regulation
7.1 Consensus in Bitcoin - 6 mins 7.2 Bitcoin Core Software - 10 mins 7.3 Stakeholders: Who's in Charge - 9 mins 7.4 Roots of Bitcoin - 9 mins 7.5 Governments Notice Bitcoin - 9 mins 7.6 Anti Money-Laundering - 5 mins 7.7 Regulation - 11 mins 7.8 New York's BitLicense Proposal - 10 mins
Alternative Mining Puzzles
8.1 Essential Puzzle Requirements - 5 mins 8.2 ASIC Resistant Puzzles - 13 mins 8.3 Proof-of-useful-work - 9 mins 8.4 Nonoutsourceable Puzzles - 7 8.5 Proof-of-Stake "Virtual Mining" - 8 mins
Bitcoin as a Platform
9.1 Bitcoin as an Append-Only Log - 16 mins 9.2 Bitcoin as Smart Property - 16 mins 9.3 Secure Multi-Party Lotteries in Bitcoin - 10 mins 9.4 Bitcoin as Randomness Source - 18 mins 9.5 Prediction Markets & Real-World Data Feeds - 23 mins
Altcoins and the Cryptocurrency Ecosystem
10.1 Short History of Altcoins - 21 mins 10.2 Interaction Between Bitcoin and Altcoins - 15 mins 10.3 Lifecycle of an Altcoin - 15 mins 10.4 Bitcoin-Backed Altcoins, "Side Chains" - 11 mins
The Fututre of Bitcoin?
11.1 The Blockchain as a Vehicle for Decentralization - 14 mins 11.2 Routes to Blockchain Integration - 28 mins 11.3 What Can We Decentralize? - 24 mins 11.4 When is Decentralization a Good Idea? - 16 mins
submitted by ccjunkiemonkey to Bitcoin [link] [comments]

Delegated Proof Of Stake Vs Proof Of Work

Delegated Proof Of Stake Vs Proof Of Work
You probably have heard of Proof of Stake (PoS) and Proof of Work (PoW) consensus mechanisms used by popular blockchain platforms. While most people have a basic understanding of these algorithms and the cryptocurrency platforms that have integrated them, few know about what they are and how they work. The inner workings of these systems can introduce users to a healthy list of benefits from the different algorithms in the marketplace today.
To this point, we hope to highlight the key differences between Delegated Proof of Stake, Proof of Stake, and Proof of Work algorithms. Before we go further, it is important to bear in mind that these different algorithms are referred to as consensus mechanisms and they are current requirements that are used to confirm a number of transactions on a blockchain without necessarily needing a third-party.

https://preview.redd.it/fuvr8de5ns541.jpg?width=2134&format=pjpg&auto=webp&s=6c2f9d3105845d0d4ed93f44f9ccb2c93da84c2c

A Brief History of Blockchain Algorithms

Being a core objective and achievement of blockchain technology, It has been revealed that when the Bitcoin network was under development, Satoshi Nakamoto, the pseudo founder of this network sought ways to have transactions on the network verified without having to seek the help of any third-party system or application. This concept empowers networks to operate with fewer intuitions charging “renter’s fees’ for utilizing their networks.
He achieved this by creating a Proof of Work algorithm. In simple terms, Proof of work can be said to be a mechanism that is used to determine how a blockchain is capable of reaching consensus. It is used to determine or find out how the network is sure that the transaction to be carried out is valid and that someone is not trying to double-spend or do something bad on the network.
The overall protocol is powered by many different nodes which today have become known as miners. With this model, much of the power can be transferred to miners and there are not as many incentives to hold on to assets. Thus, a new model emerged known as Proof of Stake in the later 2010s. This has since been altered and optimized further to create what is known today as Delegated Proof of Stake.

Proof Of Work

As mentioned earlier, Proof of Work simply refers to a mechanism that is used to validate transactions on a blockchain. The origin of this mechanism can be traced back to 1993 in a journal that was published by Moni Noar and Cynthia Dwork. While this journal talked about this mechanism or algorithm, it was not until 1999 that the term "Proof of Work" was formed by Marcus Jakobson.
Going through the Bitcoin white paper, you'll find out that it was theorized by Satoshi and his team of developers that the only way to overpower the strength of blockchain networks was to launch the 51% attack. The white paper went on to reveal that for a majority of users on the Bitcoin network not to get total control of the network, it was only best that the Proof of Work system is integrated into the network. Thus, helping to prevent the worries of a 51% attack by distributing the network across a wide enough number of nodes and having the proper incentives in place for users to hold the asset.
All and all, the application of Proof of Work in the Bitcoin network has been described as one of the central ideas on which the network was built upon and to many other blockchain technologies that have emerged since Bitcoin. Proof of Work systems gave way for a trustless and distributed system unseen by the world before.

How Proof Of Work Operates

Like most of the other crypto networks, Bitcoin users can mine their cryptos with the Proof of Work algorithm. With PoW, miners on the Bitcoin network will have to solve what is referred to as a "cryptographic puzzle" if they are to validate transactions. For a better understanding of how mining works on the PoW algorithm, one can rightly refer to it as a race where miners on the network will have to compete with each other to solve a puzzle. On the network, the answers to these puzzles are referred to as "hash".
For miners on the network, each transaction they are able to validate sees them earn the cryptocurrency of the network. In the case of Bitcoin, they get BTC coins. Aside from the crypto coins they earn, they are also rewarded transaction fees paid by users to have their transactions validated. On a PoW mining algorithm, the mathematical puzzles to be solved are complex and would require miners to have large computational power if they are to compete with the other miners on the network. The implications of this algorithm used by the Bitcoin network and a number of other crypto networks include;
  • New transactions are broadcasted to all on the network
  • Miners will have to compete to compute a hash value that is in correlations or matches that of the transaction.
  • The very first miner on the network to solve the puzzle gets the reward and the transaction fee paid by the user

Proof Of Stake

With a number of problems supposedly identified by most people in the blockchain community using Proof of Work algorithms, a search for a better algorithm or consensus mechanism was on. Most scholars sought alternatives to the PoW system and that was how the Proof of Stake consensus mechanism was discovered by Sunny King and Scott Nadal in 2012. Unlike the Proof of Work that requires miners on the network to solve mathematical puzzles if they are to earn rewards, Proof of Stake requires miners to stake or lock a specific amount of coins away if they are to validate transactions and earn rewards.

How Delegated Proof Of Stake Operates

The mathematical puzzles miners are expected to solve are not as difficult as they are on the PoW system. All miners have to prove is that they have a certain amount of coins staked or locked up somewhere. This consensus mechanism is used on the Ethereum network which is currently the second most valuable crypto platform in the world. To get an idea of how delegated Proof of Stake works on the Ethereum blockchain, we'll share an example. On the Ethereum network, if a miner owns about 4% of ETH coins, they will be able to mine 4% of all transactions that are carried out on the network. This simply means that for miners to be able to mine more and earn rewards on the network, they will have to own a large amount of ETH coins.
A delegated PoS algorithm was proposed to be a fairer version of the PoW because it offers anyone an opportunity to become a miner. Unlike the PoW system, PoS does not require large computational power for users to validate transactions. It is said to be a better version of the PoW because it ensures that anyone with a little amount of ETH can conveniently mine and earn rewards on the network, unlike the PoW algorithm where users will have to spend thousands of dollars acquiring advanced mining rigs and hardware to mine. Individuals with less advanced mining rigs will find it extremely difficult to mine on the PoW network.
In summary, these two consensus algorithms currently power a number of crypto platforms. The technologies empower blockchains to operate in an efficient manner, previously unattainable by a single machine. However, with the combined computing power of many different nodes operating across the network, both models present a great foundation for blockchain technology today.
submitted by affilcoin to u/affilcoin [link] [comments]

What is cryptocurrency mining?

What is cryptocurrency mining?
Cryptocurrency Mining is when a computer is used to solve a cryptographic puzzles to build blocks. Miners are rewarded with cryptocurrency.

Learn more about the Hamdan Token Click Here: www.hamdantoken.io

#hamdantoken #cryptocurrency #bitcoin #blockchain #btc #crypto #price #ethereum #ico #ltc #trading #eth #market #money #forex #trading #bitcoinmining #cryptonews #investment #entrepreneur #cryptotrading #business #forextrader #investing #bitcoinnews #litecoin #invest #binaryoptions #bitcoincash #coinbase #bitcoins #ripple #investor #trader #binance
https://preview.redd.it/hat1k59rdk541.jpg?width=800&format=pjpg&auto=webp&s=1a2c493d79d560634ef909e2cd40c3d7d7a0e983
submitted by hamdantokenofficial to u/hamdantokenofficial [link] [comments]

Sixty free lectures from Princeton on bitcoin on cryptocurrency. Avg length ~15 mins. Links in post.

Go forth and learn
Intro to Crypto and Cryptocurrencies
1.0 Welcome - 2 mins 1.1 Cryptographic Hash Functions - 18 mins 1.2 Hash Pointers and Data Structures - 8 mins 1.3 Digital Signatures - 9 mins 1.4 Public Keys as Identities - 5 mins 1.5 A Simple Cryptocurrency - 14 mins
How Bitcoin Achieves Decentralization
2.1 Centralization vs. Decentralization - 4 mins 2.2 Distributed Conesensus - 13 mins 2.3 Consensus Without Identity: the Blockchain - 17 mins 2.4 Incentives and Proof of Work - 19 mins 2.5 Putting It All Together - 18 mins
Mechanics of Bitcoin
3.1 Bitcoin Transactions - 11 mins 3.2 Bitcoin Scripts - 15 mins 3.3 Applications of Bitcoin Scripts - 14 mins 3.4 Bitcoin Blocks - 5 mins 3.5 The Bitcoin Network - 18 mins 3.6 Limitations & Improvements - 11 mins
How to Store and Use Bitcoin
4.1 How to Store and Use Bitcoins - 6 mins 4.2 Hot and Cold Storage - 13 mins 4.3 Splitting and Sharing Keys - 11 mins 4.4 Online Wallets and Exchanges - 19 mins 4.5 Payment Services - 8 mins 4.6 Transaction Fees - 5 mins 4.7 Currency Exchange Markets - 16 mins
Bitcoin Mining
5.1 The Task of Bitcoin Miners - 10 mins 5.2 Mining Hardware - 23 mins 5.3 Energy Consumption & Ecology - 14 mins 5.4 Mining Pools - 14 mins 5.5 Mining Incentives and Strategies - 23 mins
Bitcoin and Anonymity
6.1 Anonymity Basics - 26 mins 6.2 How to De-anonymize Bitcoin - 18 mins 6.3 Mixing - 21 mins 6.4 Decentralized Mixing - 14 mins 6.5 Zerocoin and Zerocash - 19 mins 6.6 Tor and the Silk Road - 11 mins
Community, Politics, and Regulation
7.1 Consensus in Bitcoin - 6 mins 7.2 Bitcoin Core Software - 10 mins 7.3 Stakeholders: Who's in Charge - 9 mins 7.4 Roots of Bitcoin - 9 mins 7.5 Governments Notice Bitcoin - 9 mins 7.6 Anti Money-Laundering - 5 mins 7.7 Regulation - 11 mins 7.8 New York's BitLicense Proposal - 10 mins
Alternative Mining Puzzles
8.1 Essential Puzzle Requirements - 5 mins 8.2 ASIC Resistant Puzzles - 13 mins 8.3 Proof-of-useful-work - 9 mins 8.4 Nonoutsourceable Puzzles - 7 8.5 Proof-of-Stake "Virtual Mining" - 8 mins
Bitcoin as a Platform
9.1 Bitcoin as an Append-Only Log - 16 mins 9.2 Bitcoin as Smart Property - 16 mins 9.3 Secure Multi-Party Lotteries in Bitcoin - 10 mins 9.4 Bitcoin as Randomness Source - 18 mins 9.5 Prediction Markets & Real-World Data Feeds - 23 mins
Altcoins and the Cryptocurrency Ecosystem
10.1 Short History of Altcoins - 21 mins 10.2 Interaction Between Bitcoin and Altcoins - 15 mins 10.3 Lifecycle of an Altcoin - 15 mins 10.4 Bitcoin-Backed Altcoins, "Side Chains" - 11 mins
The Fututre of Bitcoin?
11.1 The Blockchain as a Vehicle for Decentralization - 14 mins 11.2 Routes to Blockchain Integration - 28 mins 11.3 What Can We Decentralize? - 24 mins 11.4 When is Decentralization a Good Idea? - 16 mins
submitted by ccjunkiemonkey to CryptoCurrency [link] [comments]

Harmony Staking System

Staking-based Sharding Validator Registration Sybil attack prevention is a key security consideration in public blockchains. Bitcoin and Ethereum require the miners to compute a cryptographic puzzle (PoW) before they can propose a block. Similarly, sharding-based blockchains like Zilliqa or Quarkchain also use PoW to prevent Sybil attacks. Harmony adopts a different approach with proof-of-stake (PoS) as the validator registration or Sybil attack prevention mechanism. In order to become a Harmony validator, prospective participants (or stakers) have to stake a certain amount of tokens to be eligible. The number of tokens staked will determine the number of voting shares assigned to the validator. Each voting share corresponds to one vote in the BFT consensus.
A voting share is a virtual ticket that allows a validator to cast one vote in the consensus. Validators can acquire voting shares by staking tokens. The amount of tokens required for a voting share is algorithmically adjusted. At the beginning of each epoch, new validators’ voting shares will be randomly assigned to shards. The new validators join the shard(s) where their voting shares get assigned. As discussed in §2, the consensus in a shard is reached by validators who collectively possess at least 2 f + 1 voting shares to sign the block.
To guarantee the security of a single shard, the amount of voting shares by malicious validators needs to be kept below 31 of all the voting shares in that shard. This is required due to the nature of BFT consensus. Harmony’s adaptive thresholded PoS guarantees the above security requirement by adaptively adjusting the price of a voting share and assigning individual voting shares to shards rather than individual validators.
For more information: https://harmony.one/
submitted by incredulous97 to harmony_one [link] [comments]

Cryptocurrency and the taxation difficulties it faces.

Cryptocurrencies have actually remained in the news just recently since tax authorities think they can be utilized to wash cash and avert taxes. Even the Supreme Court selected an Unique Examining Group on Black Cash advised that trading in such currency be prevented. While China was reported to have actually prohibited some its biggest Bitcoin trading operators, nations such as the U.S.A. and Canada have laws in location to limit stock sell cryptocurrency.

What is Cryptocurrency?
Cryptocurrency, as the name recommends, utilizes encrypted codes to effect a deal. These codes are acknowledged by other computer systems in the user neighborhood. Rather of utilizing paper currency, an online journal is upgraded by regular accounting entries. The purchaser's account is debited and the seller's account is credited with such currency.
How are Deals Made on Cryptocurrency?
When a deal is started by one user, her computer system sends a public cipher or public secret that connects with the personal cipher of the individual getting the currency. If the receiver accepts the deal, the starting computer system connects a piece of code onto a block of numerous such encrypted codes that is understood to every user in the network. Unique users called 'Miners' can connect the additional code to the openly shared block by resolving a cryptographic puzzle and make more cryptocurrency while doing so. As soon as a miner validates a deal, the record in the block can not be altered or erased.
BitCoin, for instance, can be utilized on mobile phones also to enact purchases. All you require do is let the receiver scan a QR code from an app on your mobile phone or bring them deal with to deal with by making use of Near Field Interaction (NFC). Keep in mind that this is extremely comparable to regular online wallets such as PayTM or MobiQuick.
Die-hard users swear by BitCoin for its decentralized nature, global approval, privacy, permanence of deals and information security. Unlike paper currency, no Reserve bank manages inflationary pressures on cryptocurrency. Deal journals are saved in a Peer-to-Peer network. They also demand that they have access to the best alert apps to ensure that you get up to date information on where the market is heading. That implies every computer system chips in its computing power and copies of databases are kept on every such node in the network. Banks, on the other hand, shop deal information in main repositories which remain in the hands of personal people employed by the company.
How Can Cryptocurrency be utilized for Cash Laundering?
The really reality that there is no control over cryptocurrency deals by Reserve bank or tax authorities implies that deals can not constantly be tagged to a specific person. This implies that we do not understand whether the transactor has actually gotten the shop of worth lawfully or not. The transactee's shop is likewise suspect as no one can inform what factor to consider was provided for the currency got.
submitted by AccomplishedWelder4 to CryptoWars [link] [comments]

My growing collection of info about NEO

It can be very time consuming to keep up to date on a single blockchain project let alone multiple ones. If you just heard about NEO a few weeks ago it would be impossible catch up on past occurrences due to high volume of Reddit posts and articles made on the project. I’m going to try and simplify the past, present and future as much as I can into one well thought-out post. I hope I can be helpful to anyone who has been investigating like myself. I will include sources with all of my research.
https://imgur.com/a/NBI7S (img for mobile backround)
Key notes from the White Paper http://docs.neo.org/en-us/
Digital Assets
Digital assets are programmable assets that exist in the form of electronic data. With blockchain technology, the digitization of assets can be decentralized, trustful, traceable, highly transparent, and free of intermediaries. On the NEO blockchain, users are able to register, trade, and circulate multiple types of assets. Proving the connection between digital and physical assets is possible through digital identity. Assets registered through a validated digital identity are protected by law.
Digital Identity
Digital identity refers to the identity information of individuals, organizations, and other entities that exist in electronic form. The more mature digital identity system is based on the PKI (Public Key Infrastructure) X.509 standard. In NEO, we will implement a set of X.509 compatible digital identity standards. This set of digital identity standards, in addition to compatible X.509 level certificate issuance model, will also support Web Of Trust point-to-point certificate issuance model. Our verification of identity when issuing or using digital identities includes the use of facial features, fingerprint, voice, SMS and other multi-factor authentication methods.
Smart Contracts
The NeoContract smart contract system is the biggest feature of the seamless integration of the existing developer ecosystem. Developers do not need to learn a new programming language but use C#, Java and other mainstream programming languages in their familiar IDE environments (Visual Studio, Eclipse, etc.) for smart contract development, debugging and compilation. NEO's Universal Lightweight Virtual Machine, NeoVM, has the advantages of high certainty, high concurrency, and high scalability. The NeoContract smart contract system will allow millions of developers around the world to quickly carry out the development of smart contracts.
Economic Model
NEO has two native tokens, NEOand NeoGas NEO represents the right to manage the network. Management rights include voting for bookkeeping, NEO network parameter changes, and so on. The minimum unit of NEO is 1 and tokens cannot be subdivided. GAS is the fuel token for the realization of NEO network resource control. The NEO network charges for the operation and storage of tokens and smart contracts, thereby creating economic incentives for bookkeepers and preventing the abuse of resources. The minimum unit of GAS is 0.00000001.
Distribution Mechanism
NEO's 100 million tokens are divided into two portions. The first portion is 50 million tokens distributed proportionally to supporters of NEO during the crowdfunding. This portion has been distributed.
The second portion is 50 million NEO managed by the NEO Council to support NEO's long-term development, operation and maintenance and ecosystem. The NEO in this portion has a lockout period of 1 year and is unlocked only after October 16, 2017. This portion WILL NOT enter the exchanges and is only for long-term support of NEO projects. The plans for it are as below:
▪ 10 million tokens (10% total) will be used to motivate NEO developers and members of the NEO Council
▪ 10 million tokens (10% total) will be used to motivate developers in the NEO ecosystem
▪ 15 million tokens (15% total) will be used to cross-invest in other block-chain projects, which are owned by the NEO Council and are used only for NEO projects
▪ 15 million (15% total) will be retained as contingency
▪ The annual use of NEO in principle shall NOT exceed 15 million tokens
GAS distribution
GAS is generated with each new block. The initial total amount of GAS is zero. With the increasing rate of new block generation, the total limit of 100 million GAS will be achieved in about 22 years. The interval between each block is about 15-20 seconds, and 2 million blocks are generated in about one year. According to this release curve, 16% of the GAS will be created in the first year, 52% of the GAS will be created in the first four years, and 80% of the GAS will be created in the first 12 years. GAS will be distributed proportionally in accordance with the NEO holding ratio, recorded in the corresponding addresses. NEO holders can initiate a claim transaction at any time and claim these GAS tokens at their holding addresses.
Consensus mechanism: dBFT
The dBFT is called the Delegated Byzantine Fault Tolerant, a Byzantine fault-tolerant consensus mechanism that enables large-scale participation in consensus through proxy voting. The holder of the NEO token can, by voting, pick the bookkeeper it supports. The selected group of bookkeepers, through BFT algorithm, reach a consensus and generate new blocks. Voting in the NEO network continues in real time, rather than in accordance with a fixed term.
Cross-chain assets exchange agreement
NeoX has been extended on existing double-stranded atomic assets exchange protocols to allow multiple participants to exchange assets across different chains and to ensure that all steps in the entire transaction process succeed or fail together. In order to achieve this function, we need to use NeoContract function to create a contract account for each participant. If other blockchains are not compatible with NeoContract, they can be compatible with NeoX as long as they can provide simple smart contract functionality.
Cross-chain distributed transaction protocol
Cross-chain distributed transactions mean that multiple steps of a transaction are scattered across different blockchains and that the consistency of the entire transaction is ensured. This is an extension of cross-chain assets exchange, extending the behavior of assets exchange into arbitrary behavior. In layman's terms, NeoX makes it possible for cross-chain smart contracts where a smart contract can perform different parts on multiple chains, either succeeding or reverting as a whole. This gives excellent possibilities for cross-chain collaborations and we are exploring cross-chain smart contract application scenarios.
Distributed Storage Protocol: NeoFS
NeoFS is a distributed storage protocol that utilizes Distributed Hash Table technology. NeoFS indexes the data through file content (Hash) rather than file path (URI). Large files will be divided into fixed-size data blocks that are distributed and stored in many different nodes
Anti-quantum cryptography mechanism: NeoQS
The emergence of quantum computers poses a major challenge to RSA and ECC-based cryptographic mechanisms. Quantum computers can solve the large number of decomposition problems (which RSA relies on) and the elliptic curve discrete logarithm (which ECC relies on) in a very short time. NeoQS (Quantum Safe) is a lattice-based cryptographic mechanism. At present, quantum computers do not have the ability to quickly solve the Shortest Vector Problem (SVP) and the Closest Vector Problem (CVP), which is considered to be the most reliable algorithm for resisting quantum computers.
Reasons for choosing dBFT over PoW and PoS:
With the phenomenal success of Bitcoin and its increasing mainstream adoption, the project’s unbounded appetite for energy grew accordingly. Today, the average Bitcoin transaction costs as much energy as powering 3.67 average American homes, which amounts to about 3000 times more than a comparable Credit Card settlement.
This mind boggling amount of energy is not, as it is commonly believed, being wasted. It is put to good use: securing the Bitcoin network and rendering attacks on it infeasible. However, the cost of this security mechanism and its implications for an increasingly warming and resource hungry planet led almost the entire crypto industry to the understanding that an alternative has to be found, at least if we’re interested in seeing blockchain technology gaining overwhelming mainstream adoption.
The most popular alternative to PoW, used by most alternative cryptocurrency systems, is called Proof-of-Stake, or PoS. PoS is highly promising in the sense that it doesn’t require blockchain nodes to perform arduous, and otherwise useless, cryptographic tasks in order to render potential attacks costly and infeasible. Hence, this algorithm cuts the power requirements of PoS blockchains down to sane and manageable amounts, allowing them to be more scalable without guzzling up the planet's energy reserves.
As the name suggests, instead of requiring proof of cryptographic work, PoS requires blockchain nodes to proof stake in the currency itself. This means that in order for a blockchain node to be eligible for a verification reward, the node has to hold a certain amount of currency in the wallet associated with it. This way, in order to execute an attack, a malevolent node would have to acquire the majority of the existing coin supply, rendering attacks not only costly but also meaningless, since the attackers would primarily harm themselves.
PoS, as well as PoW, simply cause the blockchain to fork into two alternative versions if for some reason consensus breaks. In fact, most blockchains fork most of the time, only to converge back to a single source of truth a short while afterwards.
By many crypto enthusiasts, this obvious bug is very often regarded as a feature, allowing several versions of the truth to survive and compete for public adoption until a resolution is generated. This sounds nice in theory, but if we want to see blockchain technology seriously disrupt and/or augment the financial sector, this ever lurking possibility of the blockchain splitting into two alternative versions cannot be tolerated.
Furthermore, even the fastest PoS blockchains out there can accomodate a few hundred transactions per second, compare that to Visa’s 56,000 tx/s and the need for an alternative becomes clear as day.
A blockchain securing global stock markets does not have the privilege to fork into two alternative versions and just sit and wait it out until the market (or what’s left of it) declares a winner. What belongs to whom should be engraved in an immutable record, functioning as a single source of truth with no glitches permitted.
After investigating and studying the crypto industry and blockchain technologies for several years, we came to the conclusion that the delegated Byzantine Fault Tolerance alternative (or dBFT) is best suited for such a system. It provides swift transaction verification times, de-incentivises most attack vectors and upholds a single blockchain version with no risk of forks or alternative blockchain records emerging - regardless of how much computing power, or coins an attacker possesses.
The term Byzantine Fault Tolerance (BFT) derives its name from the Byzantine Generals problem in Game Theory and Computer Science, describing the problematic nature of achieving consensus in a distributed system with suboptimal communication between agents which do not necessarily trust each other.
The BFT algorithm arranges the relationship between blockchain nodes in such a way that the network becomes as good as resilient to the Byzantine Generals problem, and allows the system to remain consensus even if some nodes bare malicious intentions or simply malfunction.
To achieve this, Antshare’s version of the delegated BFT (or dBFT) algorithm acknowledges two kinds of players in the blockchain space: professional node operators, called bookkeeping nodes, who run nodes as a source of income, and users who are interested in accessing blockchain advantages. Theoretically, this differentiation does not exist in PoW and most PoS environments, practically, however, most Bitcoin users do not operate miners, which are mostly located in specialized venues run by professionals. At Antshares we understand the importance of this naturally occurring division of labor and use it to provide better security for our blockchain platform.
Accordingly, block verification is achieved through a consensus game held between specialized bookkeeping nodes, which are appointed by ordinary nodes through a form of delegated voting process. In every verification round one of the bookkeeping nodes is pseudo-randomly appointed to broadcast its version of the blockchain to the rest of the network. If ⅔ of the remaining nodes agree with this version, consensus is secured and the blockchain marches on. If less than ⅔ of the network agrees, a different node is appointed to broadcast its version of the truth to the rest of the system, and so forth until consensus is established.
In this way, successful system attacks are almost impossible to execute unless the overwhelming majority of the network is interested in committing financial suicide. Additionally, the system is fork proof, and at every given moment only one version of the truth exists. Without complicated cryptographic puzzles to solve, nodes operate much faster and are able to compete with centralized transaction methods.
https://www.econotimes.com/Blockchain-project-Antshares-explains-reasons-for-choosing-dBFT-over-PoW-and-PoS-659275
OnChain
It is important to note the technical difference between Onchain and NEO. Onchain is a private VC-backed company with over 40 employees. NEO is a public platform with different community-led groups contributing to this public project. There exists NEO council comprised of the original NEO creators, employees from Onchain, full time NEO council members and there is also the first Western based group called City of Zion. This confusion is likely the source of the rumour about Antshares and Alibaba having a connection. Onchain and NEO are separate entities who are intimately related via cross-chain communications and similar designs.
Onchain, a Shanghai-based blockchain R&D company, first started developing Antshares in February of 2014 which will eventually become the foundation of DNA. Onchain was founded by CEO Da HongFei and CTO Erik Zhang in response to the attention from private companies garnered by the development of Antshares, China’s first public blockchain. In contrast to the weeks-old start-ups launching ICOs that is happening currently in the blockchain world, it took them 22 long months of R&D to even begin providing services to their first customers. Finally, in April 2016, the first whitepaper on consensus protocol from China was born — the dBFT (delegated Byzantine Fault Tolerance) protocol.
2016 was a busy year for Onchain and they really picked up the pace that year. Other than continuing the development of Antshares, brushing shoulders with Fortune 500 companies, Onchain became the first Chinese blockchain company to join Hyperledger — an open source blockchain project started by the Linux Foundation specifically focusing on the development of private and consortium chains for businesses. It is here where the Da HongFei and Erik Zhang, entered the hyperbolic time chamber that is now known as Fabric, a platform by Hyperledger for distributed ledger solutions, and has consequently helped them to develop many aspects underpinning the design of DNA.
In June of 2016, during the first of many future partnerships with Microsoft China, Onchain founded Legal Chain specifically targeting the inadequacies of the digital applications within the legal system. In 2005, (Digital Signature Act) was passed into national law which permitted an effective digital signatures to gain the same legal rights as a real signature.
In company with Microsoft China, they are also aiming to integrate the technology with Microsoft’s face and voice recognition API function to kick start this digital revolution within the legal system. At the same time, a partnership was formed with FaDaDa, a third-party platform for electronic contracts that has processed over 27 million contracts to date, to provide secure evidence storage with DNA. If that’s not enough, they were also voted as KPMG’s top 50 Fintech Company in China and established a relationship with the Japanese Ministry of Economy, Trade and Industry which led to the recent tour to Japan. Finally, at the end of 2016 they announced a partnership with Alibaba to provide attested email service for Ali Cloud with Legal Chain where it provides a proof-of-existence for a blockchain-powered email evidence repository for enterprise-level use.
Fosun Group, China’s largest private conglomerate, have recently invested into Onchain in order to apply DNA across all of its businesses. Currently, Fosun International has a market cap of 102.98 billion dollars on the Hong Kong Stock Exchange and that is only its international branch.
The role of Onchain so far is reminiscent of Ethereum’s EEA in addition to a stronger emphasis of governmental cooperation. Onchain has identified the shortcomings of present laser focus of hype on public platforms such as NEO and Ethereum and addressing that with DNA. DNA envisions a future where a network of assorted, specifically designed blockchains serving private enterprises, consortiums, government and the public communicating with each other forming an interconnected blockchain network.
This is the goal of DNA — infiltrating every little inefficient niche that had no better alternatives before the invention of blockchain. What is especially critical to remember during this explosive time of hype driven partly by the obscene degree of greed is that not every little niche that blockchain can fill will be holding its own little ICO for you to “go to the moon on your rocket powered lambos”. Some of those efficiencies gained will simply be consumed by companies privately or by public systems such as the legal system.
https://hackernoon.com/neo-onchain-and-its-ultimate-plan-dna-4c33e9b6bfaa
http://www.onchain.com/
https://github.com/DNAProject/DNA
https://siliconangle.com/blog/2016/10/20/onchain-partners-with-alibaba-for-blockchain-powered-email-evidence-repository/
https://www.reuters.com/article/us-fosun-blockchain/chinas-fosun-invests-in-local-version-of-bitcoin-tech-blockchain-idUSKCN1B30KM
City of Zion (CoZ)
City of Zion (CoZ) is a global community of open source enthusiasts, with the shared goal of helping NEO achieve its full potential. CoZ primarily operates through the community Slack and CoZ Github, central places where the community shares knowledge and contributes to projects.
CoZ is neither a corporation, nor a consulting firm or a devshop / for-hire group.
Members
https://imgur.com/a/Gc9jT
CoZ aims to be low barrier of entry, the process is straightforward:
  1. Join the channel #develop.
  2. Fork or create a project.
  3. Publish as open source.
  4. After a couple of contributions a CoZ council member will invite you to the proper channel for your contributions.
  5. Receive rewards and back to 3.
Unit testing - Ongoing effort to implement code coverage for the core
Integration testing - Tools for automated testing, performance metrics and functionality validation on private test nets
Continuous integration - Automated multi-platform testing of all pull requests at GitHub.
Deployment pipeline - Automated tools and processes to ensure fast and reliable updates upon code changes
New C# implementation (NEO2) - Improve code quality, speed & testability
Roadmap
https://imgur.com/a/4CDhw
dApps competition
https://cityofzion.io/dapps/1
10 prizes of 1350 GAS, with 500 GAS to be used for smart contract deployment. Currently 19 dApps registered. Deadline is 16 of November 11:59 EST.
https://drive.google.com/drive/folders/0B4wu5lNlukwybEstaEJMZ19kbjQ
Traveling
August 8th to August 12th:
From August 8th to August 12th, 2017, the NEO core team, led by founder & CEO Da Hongfei will travel to Japan to explore the forefront of Japan's Blockchain innovation. This trip represents the first in a series of trips around the world with the goal to foster international cooperation's and to keep up with the fast pace in Blockchain innovation. Starting in Japan, the NEO core team will visit famous local Blockchain research institutions and active communities to engage in bilateral communication. NEO will meet with Japanese tech-celebrities to gain insights about the latest developments in the Japanese Blockchain and digital currency community. Additionally, Japanese local tech media will conduct an interview allowing NEO to present its development status and its latest technological innovations.
https://www.reddit.com/NEO/comments/6ry4s9/japan_the_neo_core_team_starts_out_on_an/
https://www.youtube.com/watch?v=SgTQ32CkxlU
https://www.reddit.com/NEO/comments/6ssfx1/neo_meetup_in_tokyo_august_10th_2017_2100h/
19th August, 2017
Blockchain X Series - NEO example applications
20th August, 2017
NEO and Microsoft Azure host a blockchain programming training in Shanghai
23rd August, 2017
INNOxNEO Blockchain Open Nights: 2nd Meeting
24th August, 2017
NEO Meetup in Taipei
https://www.reddit.com/NEO/comments/6wbebneo_taipei_meetup_long_post/
13th September, 2017
INNOxNEO Blockchain Open Nights: 3rd Meeting
14th September, 2017
NEO Shanghai Meetup with NEO team
24th September, 2017
NEO Blockchain Programming Day - Hangzhou Station
27th September, 2017
INNOxNEO Blockchain Open Nights: 4th Meeting
27th September, 2017
First London NEO Developer Meetup!
4th October, 2017
First San Francisco NEO Developer Social!
14th-16th October, 2017
GNOME.Asia Summit 2017, Chongqing, China
21st October, 2017
NEO JOY, Exploring Blockchain application, Nanjing, China
26th October, 2017
Inaugural Global Fintech & Blockchain China Summit 2017
Networks proves itself with the first ICO
ICOs, on other platforms such as Ethereum, often resulted in a sluggish network and transaction delays. While NEO’s dBFT consensus algorithm is designed to achieve consensus with higher efficency and greater network throughputt, no amount of theoretical calculations can simulate the reality of real-life conditions.
--Key Observations--
Smart Contract Invocations:
A total of 13,966 smart contracts invocations were executed on the NEO network over this time period, of which, nearly all called the RPX smart contract method mintTokens. A total of 543,348,500 RPX tokens were successfully minted and transferred to user accounts, totalling 10,097 smart contract executions.
Refunded Invocations:
A total of 4182 refund events were triggered by the smart contract method mintTokens. (Note: RPX has stated that these refunds will be processed within the next two weeks.)
Crowdsale statistics:
A successful mintTokens execution used around 1043 VM operations, while an execution that resulted in a refund used 809 VM operations. Within the hour and six minutes that the token sale was active, a total of 12,296,409 VM operations were executed. A total of 9,575 unique addresses participated in the RPX ICO. Half of these, approximately 4,800 unique addresses, participated through CoZ’s Neon wallet. The top 3 blocks with the most transactions were block 1445025 (3,242 transactions), block 1444902 (2,951 transactions), and block 1444903 (1609 transactions).
Final Thoughts
At the moment, the consensus nodes for the NEO network are operated by the NEO Council in China. By Q1 2018, NEO Council aims to control less than two-thirds of the consensus nodes.
We are pleased to note that the NEO network continuted to operate efficiently with minimal network impact, even under extreme network events. Block generation time initially slowed down to 3 minutes to process the largest block, but quickly recovered to approximately 25 seconds. Throughout the entire RPX ICO, consensus nodes were able to achieve consensus and propagate new block transactions to the rest of the network. In closing, while we consider this performance to be excellent, NEO Council and City of Zion areworking closely together on upgrades, that will increase the throughputs of the NEO network.
Hyperledger
Members and governance of Hyperledger:
Early members of the initiative included blockchain ISVs, (Blockchain, ConsenSys, Digital Asset, R3, Onchain), well-known technology platform companies (Cisco, Fujitsu, Hitachi, IBM, Intel, NEC, NTT DATA, Red Hat, VMware), financial services firms (ABN AMRO, ANZ Bank, BNY Mellon, CLS Group, CME Group, the Depository Trust & Clearing Corporation (DTCC), Deutsche Börse Group, J.P. Morgan, State Street, SWIFT, Wells Fargo), Business Software companies like SAP, Systems integrators and others such as: (Accenture, Calastone, Credits, Guardtime, IntellectEU, Nxt Foundation, Symbiont).
The governing board of the Hyperledger Project consists of twenty members chaired by Blythe Masters, (CEO of Digital Asset), and a twelve-member Technical Steering Committee chaired by Christopher Ferris, CTO of Open Technology at IBM.
http://www.8btc.com/onchain-hyperledger
https://en.wikipedia.org/wiki/Hyperledger
“As a leading open-source contributor in China’s blockchain community, Onchain shares the same values as the Linux Foundation and the Hyperledger project intrinsically. We believe international collaboration plus local experience are key to the adoption of distributed ledger technology in China; we are also very excited to see other Chinese blockchain startups join Hyperledger and look forward to adding our combined expertise to the project.” Da Hongfei, Founder and CEO of Onchain
https://hyperledger.org/testimonials/onchain
Important Articles
Distribution technology DNA framework went through the national block chain standard test On May 16th, the first China block chain development competition in Hangzhou announced that Onchain, became the first through the national standard test block system.
http://www.51cto.com/art/201705/539824.htm?mobile
Da Hongfei and OnChain working relationship with Chinese Government
https://finance.sina.cn/2017-04-13/detail-ifyeifqx5554606.d.html?from=wap
http://www.gz.chinanews.com/content/2017/05-28/73545.shtml
The Chinese government is reportedly preparing to allow the resumption of cryptocurrency trading in the country in the coming months, with the required anti-money laundering (AML) systems and licensing programs in place.
https://coingeek.com/cryptocurrency-trading-poised-to-make-a-return-in-china-report/
Japanese Ministry of Economy, Trade and Industry - Working with OnChain and NEO
http://www.8btc.com/onchain-ribenjingjichanyesheng
Notice NEO will be invited to attend the INNO x Austrade China-Australia chain high-end exchange
AUSTRADE - The Australian Trade and Investment Commission is the official government, education and investment promotion agency of the Australian Government
https://mp.weixin.qq.com/s/LmXnW7MtzOX_fqIo7diU9A
Source for NEO/OnChain Microsoft Cooperation:
http://www.8btc.com/onchain-microsoft
Da Hongfei quotes
"There is no direct cooperation between Alibaba and NEO/Onchain, other than their mailbox service is using Law Chain to provide attested email service. In terms of Microsoft, yes we have cooperation with Microsoft China because NEO is built with C# and .NET Core, and NeoContract is the first in the world to support writing smart contract with C#"
https://www.reddit.com/NEO/comments/6puffo/we_are_da_hongfei_and_erik_zhang_founders_of_neo/dksm5ga/
"We have pretty good communication with government, with regulators. They don't have any negative impression with NEO and they like our technology and the way we deal with things. Regulation is not an issue for us"
https://www.youtube.com/watch?v=qpUdTIQdjVE&feature=youtu.be&t=1m16s
“Before they started cleaning up the market, I was asked for information and suggestions” “I do not expect the government to call me in the short-term and say, ‘Let’s use NEO as the blockchain technology infrastructure of China.’ But in the medium term? Why not? I think it’s possible.”
https://medium.com/@TheCoinEconomy/neo-founder-da-hongfei-advised-china-on-ico-exchange-ban-says-govt-4631b9f7971
-Upcoming Roadmap-
Decentralization of consensus nodes
▪ P2P Network optimization (2017Q4) – Network optimizations to ensure fast block generation after decentralization.
▪ Voting Algorithm Optimization (2017Q4) – Adjustments in voting algorithm to prevent identified attack vectors.
▪ Candidate List Website (2018Q1) – Published list of candidates so that voters know who they are voting for.
▪ NEO Council Consensus Node < 2/3 (2018Q1) – NEO Council shall operate less than two thirds of consensus nodes by the end of quarter 1, 2018.
Universal Data Format for Wallet/Node Prog.
▪ NEP2 – Private Key Encryption/Decryption (2017Q4) - Method for encrypting and encoding a passphrase-protected private key.
▪ NEP3 – Universal Data Format (2017Q4) – Standard data format to allow easier wallet and node programming.
https://neo.org/en-us/blog/details/65
Promotion/Ecosystem
▪ Globally Legal Token-raising Framework (2017Q4) – Following government interest to regulate ICO’s, NEO will complete a framework to raise tokens legally in all major markets by the end of 2017.
▪ NEO DevCon 1 (2017Q4) – First NEO Development Conference! More details at later date.
▪ CoZ Funding (2017Q4) – Continuous funding plan for CoZ covering next 5 years.
▪ Seed Projects (2017Q4) – First seed projects to be cross-invested with the dedicated NEO pool.
https://neo.org/en-us/blog/details/65
https://github.com/neo-project
Repositories - 14
People - 5
Contributors- 12
https://github.com/CityOfZion
Repositories - 35
People - 14
Contributors- 22
https://github.com/DNAProject/DNA
Repositories - 4
Contributors - 17
Donations welcome: ASdNxSa3E8bsxCE9KFKBMm3NA43sYJU9qZ
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What Bitcoin Miners Actually Do Mining Bitcoin with pencil and paper - YouTube Cypher Review (cryptography puzzles) What Are Bitcoin Miners Actually Solving? What problem is Bitcoin solving? Bitcoin 101 ep3

Bitcoin is the first example of the currency which named virtual or cryptographic currency. Bitcoin which is initially used only in online game platforms has become gradually popular thanks to its ... Cryptographic Puzzles Bitcoin Bitcoin . Cryptographic Puzzles Bitcoin . Apr 8, 2018 DTN Staff. twitter. pinterest. google plus. facebook. 8 Answers - What Are Bitcoin Miners Actually Solving? What Kind Of Math Problems Are They Solving And What Do They Achieve By Solving Them? ... This is the process where ‘nodes’ (computers running the Bitcoin software) earn new Bitcoin and process transactions by solving cryptographic puzzles. Miners use a lot of electricity and expensive equipment, so they need compensation - which is the newly released Bitcoin. This has a lot to do with the value of Bitcoin. It costs money to ... Cryptocoins like bitcoin are created as a reward in an open competition in which users ("miners") offer their computing power to verify and record transactions into the blockchain, by solving complex cryptographic puzzles ("Proof-Of-Work"). This activity is referred to as mining.See What is Mining? for more.. Read news and updates about MINING and all related bitcoin & cryptocurrency news. Everyone can become a miner and he/she should solve some cryptographic puzzles in order to add transactions. Since the mining process gives more value to the coins, it is necessary to learn about the system in detail for gaining ideas. This will help a lot to focus more on the goals thereby showing ways to earn more revenues. Beginners should enhance their skills effectively because it gives ...

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What Bitcoin Miners Actually Do

Bitcoins are mined using a cryptographic algorithm called SHA-256. This algorithm is simple enough to be done with pencil and paper, as I show in this video.... How Bitcoin mining actually works - What is the "cryptographic puzzle"? - Duration: 14:13. Keifer Kif 78,184 views. 14:13. How to BitCoin mine using fast ASIC mining hardware - Duration: 27:15. ... This bitcoin miner can mine with your computer or laptop CPU at least 0.5 bitcoin per day. So if you need bitcoin in your wallet,or just want to earn more money from your home,then this is the ... How Bitcoin mining actually works - What is the "cryptographic puzzle"? - Duration: 14:13. Keifer Kif 76,313 views. 14:13. Bitcoin and Cryptocurrencies Explained in One Minute - Duration: 1:22. ... How Bitcoin mining actually works - What is the "cryptographic puzzle"? - Duration: 14:13. Keifer Kif 77,047 views. 14:13. 8 ...

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