Genesis Mining Bitcoin Mining Calculator - ROI and Profits

You think Bitcoin Twitter is bullish? Hal Finney (@halfin) was calculating a price of $10,000,000 per bitcoin, just ONE WEEK after the the genesis block on January 3, 2009. Absolute legend.

You think Bitcoin Twitter is bullish? Hal Finney (@halfin) was calculating a price of $10,000,000 per bitcoin, just ONE WEEK after the the genesis block on January 3, 2009. Absolute legend. submitted by eragmus to Bitcoin [link] [comments]

You think Bitcoin Twitter is bullish? Hal Finney (@halfin) was calculating a price of $10,000,000 per bitcoin, just ONE WEEK after the the genesis block on January 3, 2009. Absolute legend.

You think Bitcoin Twitter is bullish? Hal Finney (@halfin) was calculating a price of $10,000,000 per bitcoin, just ONE WEEK after the the genesis block on January 3, 2009. Absolute legend. submitted by vegasbooty to Cryptoandme [link] [comments]

08-25 12:33 - 'Hal Finney calculated $10M per coin days after the genesis block was mined' (beincrypto.com) by /u/patriceac removed from /r/Bitcoin within 344-354min

Hal Finney calculated $10M per coin days after the genesis block was mined
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Author: patriceac
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Ruby Quiz - Challenge #2 - Calculate the Bitcoin Genesis Block Hash (SHA-256)

Ruby Quiz - Challenge #2 - Calculate the Bitcoin Genesis Block Hash (SHA-256) submitted by geraldbauer to ruby [link] [comments]

Tezos Foundation Settlement (Part 1) - Alex Liu answers frequently asked questions regarding the settlement

Tezos Foundation Settlement (Part 1) - Alex Liu answers frequently asked questions regarding the settlement submitted by AS_Empire to tezos [link] [comments]

ETHE & GBTC (Grayscale) Frequently Asked Questions

It is no doubt Grayscale’s booming popularity as a mainstream investment has caused a lot of community hullabaloo lately. As such, I felt it was worth making a FAQ regarding the topic. I’m looking to update this as needed and of course am open to suggestions / adding any questions.
The goal is simply to have a thread we can link to anyone with questions on Grayscale and its products. Instead of explaining the same thing 3 times a day, shoot those posters over to this thread. My hope is that these questions are answered in a fairly simple and easy to understand manner. I think as the sub grows it will be a nice reference point for newcomers.
Disclaimer: I do NOT work for Grayscale and as such am basing all these answers on information that can be found on their website / reports. (Grayscale’s official FAQ can be found here). I also do NOT have a finance degree, I do NOT have a Series 6 / 7 / 140-whatever, and I do NOT work with investment products for my day job. I have an accounting background and work within the finance world so I have the general ‘business’ knowledge to put it all together, but this is all info determined in my best faith effort as a layman. The point being is this --- it is possible I may explain something wrong or missed the technical terms, and if that occurs I am more than happy to update anything that can be proven incorrect
Everything below will be in reference to ETHE but will apply to GBTC as well. If those two segregate in any way, I will note that accordingly.
What is Grayscale? 
Grayscale is the company that created the ETHE product. Their website is https://grayscale.co/
What is ETHE? 
ETHE is essentially a stock that intends to loosely track the price of ETH. It does so by having each ETHE be backed by a specific amount of ETH that is held on chain. Initially, the newly minted ETHE can only be purchased by institutions and accredited investors directly from Grayscale. Once a year has passed (6 months for GBTC) it can then be listed on the OTCQX Best Market exchange for secondary trading. Once listed on OTCQX, anyone investor can purchase at this point. Additional information on ETHE can be found here.
So ETHE is an ETF? 
No. For technical reasons beyond my personal understandings it is not labeled an ETF. I know it all flows back to the “Securities Act Rule 144”, but due to my limited knowledge on SEC regulations I don’t want to misspeak past that. If anyone is more knowledgeable on the subject I am happy to input their answer here.
How long has ETHE existed? 
ETHE was formed 12/14/2017. GBTC was formed 9/25/2013.
How is ETHE created? 
The trust will issue shares to “Authorized Participants” in groups of 100 shares (called baskets). Authorized Participants are the only persons that may place orders to create these baskets and they do it on behalf of the investor.
Source: Creation and Redemption of Shares section on page 39 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Note – The way their reports word this makes it sound like there is an army of authorizers doing the dirty work, but in reality there is only one Authorized Participant. At this moment the “Genesis” company is the sole Authorized Participant. Genesis is owned by the “Digital Currency Group, Inc.” which is the parent company of Grayscale as well. (And to really go down the rabbit hole it looks like DCG is the parent company of CoinDesk and is “backing 150+ companies across 30 countries, including Coinbase, Ripple, and Chainalysis.”)
Source: Digital Currency Group, Inc. informational section on page 77 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
Source: Barry E. Silbert informational section on page 75 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
How does Grayscale acquire the ETH to collateralize the ETHE product? 
An Investor may acquire ETHE by paying in cash or exchanging ETH already owned.
Source: Creation and Redemption of Shares section on page 40 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Where does Grayscale store their ETH? Does it have a specific wallet address we can follow? 
ETH is stored with Coinbase Custody Trust Company, LLC. I am unaware of any specific address or set of addresses that can be used to verify the ETH is actually there.
As an aside - I would actually love to see if anyone knows more about this as it’s something that’s sort of peaked my interest after being asked about it… I find it doubtful we can find that however.
Source: Part C. Business Information, Item 8, subsection A. on page 16 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Can ETHE be redeemed for ETH? 
No, currently there is no way to give your shares of ETHE back to Grayscale to receive ETH back. The only method of getting back into ETH would be to sell your ETHE to someone else and then use those proceeds to buy ETH yourself.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Why are they not redeeming shares? 
I think the report summarizes it best:
Redemptions of Shares are currently not permitted and the Trust is unable to redeem Shares. Subject to receipt of regulatory approval from the SEC and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. Because the Trust does not believe that the SEC would, at this time, entertain an application for the waiver of rules needed in order to operate an ongoing redemption program, the Trust currently has no intention of seeking regulatory approval from the SEC to operate an ongoing redemption program.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the fee structure? 
ETHE has an annual fee of 2.5%. GBTC has an annual fee of 2.0%. Fees are paid by selling the underlying ETH / BTC collateralizing the asset.
Source: ETHE’s informational page on Grayscale’s website - Located Here
Source: Description of Trust on page 31 & 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the ratio of ETH to ETHE? 
At the time of posting (6/19/2020) each ETHE share is backed by .09391605 ETH. Each share of GBTC is backed by .00096038 BTC.
ETHE & GBTC’s specific information page on Grayscale’s website updates the ratio daily – Located Here
For a full historical look at this ratio, it can be found on the Grayscale home page on the upper right side if you go to Tax Documents > 2019 Tax Documents > Grayscale Ethereum Trust 2019 Tax Letter.
Why is the ratio not 1:1? Why is it always decreasing? 
While I cannot say for certain why the initial distribution was not a 1:1 backing, it is more than likely to keep the price down and allow more investors a chance to purchase ETHE / GBTC.
As noted above, fees are paid by selling off the ETH collateralizing ETHE. So this number will always be trending downward as time goes on.
Source: Description of Trust on page 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
I keep hearing about how this is locked supply… explain? 
As noted above, there is currently no redemption program for converting your ETHE back into ETH. This means that once an ETHE is issued, it will remain in circulation until a redemption program is formed --- something that doesn’t seem to be too urgent for the SEC or Grayscale at the moment. Tiny amounts will naturally be removed due to fees, but the bulk of the asset is in there for good.
Knowing that ETHE cannot be taken back and destroyed at this time, the ETH collateralizing it will not be removed from the wallet for the foreseeable future. While it is not fully locked in the sense of say a totally lost key, it is not coming out any time soon.
Per their annual statement:
The Trust’s ETH will be transferred out of the ETH Account only in the following circumstances: (i) transferred to pay the Sponsor’s Fee or any Additional Trust Expenses, (ii) distributed in connection with the redemption of Baskets (subject to the Trust’s obtaining regulatory approval from the SEC to operate an ongoing redemption program and the consent of the Sponsor), (iii) sold on an as-needed basis to pay Additional Trust Expenses or (iv) sold on behalf of the Trust in the event the Trust terminates and liquidates its assets or as otherwise required by law or regulation.
Source: Description of Trust on page 31 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Grayscale now owns a huge chunk of both ETH and BTC’s supply… should we be worried about manipulation, a sell off to crash the market crash, a staking cartel? 
First, it’s important to remember Grayscale is a lot more akin to an exchange then say an investment firm. Grayscale is working on behalf of its investors to create this product for investor control. Grayscale doesn’t ‘control’ the ETH it holds any more then Coinbase ‘controls’ the ETH in its hot wallet. (Note: There are likely some varying levels of control, but specific to this topic Grayscale cannot simply sell [legally, at least] the ETH by their own decision in the same manner Coinbase wouldn't be able to either.)
That said, there shouldn’t be any worry in the short to medium time-frame. As noted above, Grayscale can’t really remove ETH other than for fees or termination of the product. At 2.5% a year, fees are noise in terms of volume. Grayscale seems to be the fastest growing product in the crypto space at the moment and termination of the product seems unlikely.
IF redemptions were to happen tomorrow, it’s extremely unlikely we would see a mass exodus out of the product to redeem for ETH. And even if there was incentive to get back to ETH, the premium makes it so that it would be much more cost effective to just sell your ETHE on the secondary market and buy ETH yourself. Remember, any redemption is up to the investors and NOT something Grayscale has direct control over.
Yes, but what about [insert criminal act here]… 
Alright, yes. Technically nothing is stopping Grayscale from selling all the ETH / BTC and running off to the Bahamas (Hawaii?). BUT there is no real reason for them to do so. Barry is an extremely public figure and it won’t be easy for him to get away with that. Grayscale’s Bitcoin Trust creates SEC reports weekly / bi-weekly and I’m sure given the sentiment towards crypto is being watched carefully. Plus, Grayscale is making tons of consistent revenue and thus has little to no incentive to give that up for a quick buck.
That’s a lot of ‘happy little feels’ Bob, is there even an independent audit or is this Tether 2.0? 
Actually yes, an independent auditor report can be found in their annual reports. It is clearly aimed more towards the financial side and I doubt the auditors are crypto savants, but it is at least one extra set of eyes. Auditors are Friedman LLP – Auditor since 2015.
Source: Independent Auditor Report starting on page 116 (of the PDF itself) of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
As mentioned by user TheCrpytosAndBloods (In Comments Below), a fun fact:
The company’s auditors Friedman LLP were also coincidentally TetheBitfinex’s auditors until They controversially parted ways in 2018 when the Tether controversy was at its height. I am not suggesting for one moment that there is anything shady about DCG - I just find it interesting it’s the same auditor.
“Grayscale sounds kind of lame” / “Not your keys not your crypto!” / “Why is anyone buying this, it sounds like a scam?” 
Welp, for starters this honestly is not really a product aimed at the people likely to be reading this post. To each their own, but do remember just because something provides no value to you doesn’t mean it can’t provide value to someone else. That said some of the advertised benefits are as follows:
So for example, I can set up an IRA at a brokerage account that has $0 trading fees. Then I can trade GBTC and ETHE all day without having to worry about tracking my taxes. All with the relative safety something like E-Trade provides over Binance.
As for how it benefits the everyday ETH holder? I think the supply lock is a positive. I also think this product exposes the Ethereum ecosystem to people who otherwise wouldn’t know about it.
Why is there a premium? Why is ETHE’s premium so insanely high compared to GBTC’s premium? 
There are a handful of theories of why a premium exists at all, some even mentioned in the annual report. The short list is as follows:
Why is ETHE’s so much higher the GBTC’s? Again, a few thoughts:

Are there any other differences between ETHE and GBTC? 
I touched on a few of the smaller differences, but one of the more interesting changes is GBTC is now a “SEC reporting company” as of January 2020. Which again goes beyond my scope of knowledge so I won’t comment on it too much… but the net result is GBTC is now putting out weekly / bi-weekly 8-K’s and annual 10-K’s. This means you can track GBTC that much easier at the moment as well as there is an extra layer of validity to the product IMO.
I’m looking for some statistics on ETHE… such as who is buying, how much is bought, etc? 
There is a great Q1 2020 report I recommend you give a read that has a lot of cool graphs and data on the product. It’s a little GBTC centric, but there is some ETHE data as well. It can be found here hidden within the 8-K filings.Q1 2020 is the 4/16/2020 8-K filing.
For those more into a GAAP style report see the 2019 annual 10-K of the same location.
Is Grayscale only just for BTC and ETH? 
No, there are other products as well. In terms of a secondary market product, ETCG is the Ethereum Classic version of ETHE. Fun Fact – ETCG was actually put out to the secondary market first. It also has a 3% fee tied to it where 1% of it goes to some type of ETC development fund.
In terms of institutional and accredited investors, there are a few ‘fan favorites’ such as Bitcoin Cash, Litcoin, Stellar, XRP, and Zcash. Something called Horizion (Backed by ZEN I guess? Idk to be honest what that is…). And a diversified Mutual Fund type fund that has a little bit of all of those. None of these products are available on the secondary market.
Are there alternatives to Grayscale? 
I know they exist, but I don’t follow them. I’ll leave this as a “to be edited” section and will add as others comment on what they know.
Per user Over-analyser (in comments below):
Coinshares (Formerly XBT provider) are the only similar product I know of. BTC, ETH, XRP and LTC as Exchange Traded Notes (ETN).
It looks like they are fully backed with the underlying crypto (no premium).
https://coinshares.com/etps/xbt-provideinvestor-resources/daily-hedging-position
Denominated in SEK and EUR. Certainly available in some UK pensions (SIPP).
As asked by pegcity - Okay so I was under the impression you can just give them your own ETH and get ETHE, but do you get 11 ETHE per ETH or do you get the market value of ETH in USD worth of ETHE? 
I have always understood that the ETHE issued directly through Grayscale is issued without the premium. As in, if I were to trade 1 ETH for ETHE I would get 11, not say only 2 or 3 because the secondary market premium is so high. And if I were paying cash only I would be paying the price to buy 1 ETH to get my 11 ETHE. Per page 39 of their annual statement, it reads as follows:
The Trust will issue Shares to Authorized Participants from time to time, but only in one or more Baskets (with a Basket being a block of 100 Shares). The Trust will not issue fractions of a Basket. The creation (and, should the Trust commence a redemption program, redemption) of Baskets will be made only in exchange for the delivery to the Trust, or the distribution by the Trust, of the number of whole and fractional ETH represented by each Basket being created (or, should the Trust commence a redemption program, redeemed), which is determined by dividing (x) the number of ETH owned by the Trust at 4:00 p.m., New York time, on the trade date of a creation or redemption order, after deducting the number of ETH representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust (converted using the ETH Index Price at such time, and carried to the eighth decimal place), by (y) the number of Shares outstanding at such time (with the quotient so obtained calculated to one one-hundred-millionth of one ETH (i.e., carried to the eighth decimal place)), and multiplying such quotient by 100 (the “Basket ETH Amount”). All questions as to the calculation of the Basket ETH Amount will be conclusively determined by the Sponsor and will be final and binding on all persons interested in the Trust. The Basket ETH Amount multiplied by the number of Baskets being created or redeemed is the “Total Basket ETH Amount.” The number of ETH represented by a Share will gradually decrease over time as the Trust’s ETH are used to pay the Trust’s expenses. Each Share represented approximately 0.0950 ETH and 0.0974 ETH as of December 31, 2019 and 2018, respectively.

submitted by Bob-Rossi to ethfinance [link] [comments]

AITD class lesson 4: Mining will bring fortune, Consensus will generate value faster.

AITD class lesson 4: Mining will bring fortune, Consensus will generate value faster.
As we all know, Bitcoin is a decentralized digital currency, there is no central currency publisher. The question is that how first Bitcoin was generated if there are no publishers for Bitcoin.
The answer is: Through Mining.
https://preview.redd.it/ebm9zfvbotr51.jpg?width=640&format=pjpg&auto=webp&s=798802bf75101284a9e6b111a66188c2b9b78d2a
In January of 2009, Bitcoin father Satoshi nakamoto got the First Genesis Block through data mining on Bitcoin network and received 50 Bitcoins as rewards, therefore, first set of Bitcoins was official revealed. Since then, more and more Bitcoin mining labors started mining,as a result, they got tones of Bitcoins.
Mining is not like real mining in Bitcoin, it depends on the consensus algorithm from Bitcoin networks, using mining machine continuously to calculate Block password. The mining machine which gets the correct answer will unlock Blocks and get Bitcoins ( In the Block) as rewards.
The whole mining processes are kind of like purchase lottery, people who gets more numbers will get higher chance to match the winning number; The differences are that there are no second position prizes or third position prizes and people can not share prizes with other people.
After explaining mining, let's take a look at consensus algorithm we mention earlier. The whole mining processes will count on consensus algorithm to process, we can consider consensus algorithm as “ Mining rules".
Let's take Bitcoin as an example. POW algorithm used in Bitcoin network can be simply considering as contribution force algorithm . The algorithm requires that every single node has the right to start mining, it is the computing processes for Block password; In Blockchain Industry, it usually consider continuously computing processes for nodes mining as Hashrate contribution, unlock Blocks, gaining Bitcoin rewards possibilities will be higher if node's Hashrate contribution is higher.
In the beginning period of Bitcoin, the difficulty is not high for mining, mining labor can unlocked Blocks easily and got rewards, as Bitcoin consensus is getting stronger, more and more people are starting joining mining Bitcoins.
Difficulty will be higher if there are more competitors, Hashrate consumed by mining machine will be higher, at the same time, due to output has been cut into half for Bitcoin blocks, the profits from mining are continuously compressing, the Hashrate resources waste caused by POW algorithm was causing criticism from public.
According to the developing Blockchain techniques, members within the industry are looking for low cost mining mode, therefore, POS, DPOS, POC algorithms started continuously appearing. These algorithms are getting ride of contribution forces algorithm from Bitcoin, building "Gaining Bitcoin will generate revenue""Small amount of witnesses are starting mining for blocks", "Disc capacity prove" multiple mining methods, enabling digital currency to apply in various scenarios.( Detail transformation processes will be explained in the next episode.)
Currently, Consensus algorithm is transforming to simplify procedures, reducing resources usage direction, Only improved algorithm mechanism will get strong consensus. In the future, there will be many more algorithms appearing in the market, mining procedure will be simpler, fair, energy reduced.
Next episode preview: The transformation path for consensus algorithm mechanism.
submitted by AITDBlockchai to u/AITDBlockchai [link] [comments]

The Retrospect and Prospect of the Crypto Economy——The Development and Evolution of the Consensus Mechanism (Three)

The Retrospect and Prospect of the Crypto Economy——The Development and Evolution of the Consensus Mechanism (Three)

https://preview.redd.it/45wwtygv2rc51.png?width=567&format=png&auto=webp&s=a5f51ea3c620d478231c39e32f198eb64d801897
Foreword
The consensus mechanism is one of the important elements of the blockchain and the core rule of the normal operation of the distributed ledger. It is mainly used to solve the trust problem between people and determine who is responsible for generating new blocks and maintaining the effective unification of the system in the blockchain system. Thus, it has become an everlasting research hot topic in blockchain.
This article starts with the concept and role of the consensus mechanism. First, it enables the reader to have a preliminary understanding of the consensus mechanism as a whole; then starting with the two armies and the Byzantine general problem, the evolution of the consensus mechanism is introduced in the order of the time when the consensus mechanism is proposed; Then, it briefly introduces the current mainstream consensus mechanism from three aspects of concept, working principle and representative project, and compares the advantages and disadvantages of the mainstream consensus mechanism; finally, it gives suggestions on how to choose a consensus mechanism for blockchain projects and pointed out the possibility of the future development of the consensus mechanism.
Contents
First, concept and function of the consensus mechanism
1.1 Concept: The core rules for the normal operation of distributed ledgers
1.2 Role: Solve the trust problem and decide the generation and maintenance of new blocks
1.2.1 Used to solve the trust problem between people
1.2.2 Used to decide who is responsible for generating new blocks and maintaining effective unity in the blockchain system
1.3 Mainstream model of consensus algorithm
Second, the origin of the consensus mechanism
2.1 The two armies and the Byzantine generals
2.1.1 The two armies problem
2.1.2 The Byzantine generals problem
2.2 Development history of consensus mechanism
2.2.1 Classification of consensus mechanism
2.2.2 Development frontier of consensus mechanism
Third, Common Consensus System
Fourth, Selection of consensus mechanism and summary of current situation
4.1 How to choose a consensus mechanism that suits you
4.1.1 Determine whether the final result is important
4.1.2 Determine how fast the application process needs to be
4.1.2 Determining the degree to which the application requires for decentralization
4.1.3 Determine whether the system can be terminated
4.1.4 Select a suitable consensus algorithm after weighing the advantages and disadvantages
4.2 Future development of consensus mechanism
Last lecture review: Chapter 1 Concept and Function of Consensus Mechanism plus Chapter 2 Origin of Consensus Mechanism
Last lecture review: Chapter 3 Common Consensus Mechanisms

Chapter 3 Common Consensus Mechanisms (Part 2)
Figure 6 Summary of relatively mainstream consensus mechanisms

https://preview.redd.it/2yepvjjy2rc51.png?width=567&format=png&auto=webp&s=acaed31fa6106ac2f501fe2cb284f66bb2258a0e
Source: Hasib Anwar, "Consensus Algorithms: The Root Of The Blockchain Technology"
The picture above shows 14 relatively mainstream consensus mechanisms summarized by a geek Hasib Anwar, including PoW (Proof of Work), PoS (Proof of Stake), DPoS (Delegated Proof of Stake), LPoS (Lease Proof of Stake), PoET ( Proof of Elapsed Time), PBFT (Practical Byzantine Fault Tolerance), SBFT (Simple Byzantine Fault Tolerance), DBFT (Delegated Byzantine Fault Tolerance), DAG (Directed Acyclic Graph), Proof-of-Activity (Proof of Activity), Proof-of- Importance (Proof of Importance), Proof-of-Capacity (Proof of Capacity), Proof-of-Burn ( Proof of Burn), Proof-of-Weight (Proof of Weight).
Next, we will mainly introduce and analyze the top ten consensus mechanisms of the current blockchain.
》DBFT
-Concept:
Delegated Byzantine fault tolerance. The improved Byzantine fault-tolerant algorithm makes it suitable for blockchain systems. The system consists of nodes, delegators (who can approve blocks), and speakers (who proposes the next block). It is a consensus algorithm that guarantees fault tolerance implemented inside the NEO blockchain.
-Principle:
In this mechanism, there are two participants: the professional bookkeeper "bookkeeping node" and the ordinary users in the system.
Ordinary users vote based on the proportion of holding stake to determine the bookkeeping node. When a consensus is required, a spokesperson is randomly selected from these bookkeeping nodes to draw up a plan, and then other bookkeeping nodes will vote basing on the Byzantine fault tolerance algorithm.That is, majority principle. If more than 66% of the nodes agree to the spokesperson’ plan, a consensus is reached; otherwise, the spokesperson is re-elected and the voting process is repeated.
-Representative application: Neo, etc.
》PoA
-Concept:
Proof of authority. That is, certified by some accredited accounts, these accredited accounts are called "validators". The software that the verifier runs that supports the verifier to place transactions in blocks.
-Principle:
Three conditions:
  1. The identity must be formally verified on the chain, and the information can be cross-verified in a publicly available domain;
  2. The qualifications must be difficult to obtain, so that the rights of the verification block obtained are precious enough;
  3. The authoritative inspection and procedures must be completely unified.
With PoA, every individual has the right to become a verifier, so there is an incentive to maintain the position of the verifier once acquired. By attaching a reputation to the identity, the verifier can be encouraged to maintain the transaction process. Because the verifier does not want to gain a negative reputation, it will lose its hard-won verifier status.
-Representative applications: VeChain, etc.
》DAG
-Concept:
Directed acyclic graph. Each newly added unit in the DAG is not only added to the long chain block, but added to all the previous blocks, verifying each new unit and confirming its parent unit and the parent unit of the parent unit, and gradually confirming until the genesis unit. As the hash of its parent unit is included in its own unit, the blockchains of all transactions are connected to each other to form a graph-like structure with time.
-Principle:
In the DAG network, each node can be a trader and a validator, because the transaction processing in DAG is done by the transaction node itself. Taking IOTA as an example, IOTA’s Tangle led
ger does not need to pay transaction fees while ensuring high-speed transaction processing. However, it does not mean that the transaction is free, because in this ledger, the initiation of each transaction needs to verify the other two random transactions first, and connect the transaction initiated by itself to these two transactions, so the responsibility that miners on the blockchain bear is distributed to all traders. The DAG method of processing transactions can be called asynchronous processing mode.
Figure 10 The difference between the traditional blockchain structure and the DAG structure

https://preview.redd.it/1xfssxj03rc51.png?width=553&format=png&auto=webp&s=95c382f81943c9a188a89ac6b2dadf64446589e6
-Representative applications: IOTA, etc.
》PoET
-Concept:
Proof of elapsed time. That is, it is usually used in a permissioned blockchain network. It can determine the mining rights of the block holders in the network. The permissioned blockchain network requires any prospective participants to verify their identity before joining. According to the principles of the fair lottery system, each node is equally likely to become the winner.
-Principle:
Each participating node in the network must wait for a randomly selected period, and the first node to complete the set waiting time will get a new block. Each node in the blockchain network will generate a random waiting time and sleep for a set time. The node that wakes up first, that is, the node with the shortest waiting time, wakes up and submits a new block to the blockchain, and then broadcasts the necessary information to the entire peer-to-peer network. The same process will be repeated to find the next block.
Two factors:
  1. Participating nodes will naturally select a random time in nature, rather than deliberately;
  2. The winner did complete the waiting time.
-Representative application: HyperLedger Sawtooth, etc.
》PoSV
-Concept:
Proof of stake velocity. Proposed by Reddcoin, drawing on the concept of "money circulation speed" in economics, it mainly allocates bookkeeping rights based on the coin age of nodes participating in the competition.
-Principle:
PoSV also allocates accounting rights according to the coin age of the nodes participating in the competition, but modifies the coin age calculation formula to a function of exponential decay of growth rate. Taking Reddcoin as an example, Reddcoin sets the half-life of the coin age growth rate to 1 month. Assuming that the unit token can accumulate 1CoinDay coin age on the first day, only 0.5CoinDay coin age can be accumulated on the 31st day, and only 0.25CoinDay coin age can be accumulated on the 61st day, and so on. In this way, the nodes are encouraged to use the token to conduct a transaction after holding the token for a period of time, thereby restarting the calculation of the coin age and increasing the circulation speed of the token in the network.
-Representative applications: Reddcoin, etc.
Table 2 Comparison of the advantages and disadvantages of current mainstream consensus mechanisms

https://preview.redd.it/kb04i7eh3rc51.png?width=1236&format=png&auto=webp&s=42de13bc99afaf258c0a740a6618e2d579b59100
Source: network resources
Chapter 4 Summary of the Selection and Status Quo of Consensus Mechanism
4.1 How to choose a consensus mechanism that suits you
Step 1: Determine whether the final result is important
For some applications, the end result is very important. If you are building a new payment system that can support very small amounts, it is acceptable for the transaction result to change. Similarly, if you are creating a new distributed social network, 100% guarantee that the status is updated immediately is not particularly necessary. On the contrary, if you are creating a new distributed protocol, the final result is critical to the user experience. For example, Bitcoin has a final confirmation time of about 1 hour, Ethereum has a final confirmation time of about 6 minutes, and Tendermint Core only has a final confirmation time of 1 second.
Step 2: Determine how fast the application process needs to be
If you are building a game, is it reasonable to wait 15 seconds before each action? Due to the low block processing time of Ethereum, games built on it will cause poor user experience due to Ethereum's throughput. However, the application for the transfer of housing property rights can be run on Ethereum. Use the Cosmos SDK to build an application that allows developers to freely use Tendermint Core. It has a short block processing time and high throughput, and is capable of processing 10,000 transactions per second. You can reduce the required communication overhead and speed up the application by setting the maximum number of validators for the application.
Step 3: Determine the application's demand for decentralization
Some applications such as games may not require very high censorship resistance as a by-product of decentralization. In theory, does it really matter that the validator can create a cartel in the game and reverse the transaction result for profit? If it is not important, a blockchain such as EOS may be more suitable for your needs because of the fast transaction speed and free fees. However, some applications such as autonomous banks are more powerful and decentralized. Although Ethereum is considered to be decentralized, some supporters claim that Ethereum's mining pool is an important part of centralized platform, although there are actually only 11 validators (mining pools). One of the major benefits of building your own blockchain instead of building on a smart contract platform is that you can customize the way the application completes verification. However, it is difficult to build your own blockchain, so the Cosmos SDK is very useful, you can easily build your own blockchain and customize the degree of decentralization you need.
Step 4: Determine whether the system can be terminated
If you are building a new application similar to a distributed ride-sharing service, then ensuring 24/7 service must be the first priority, even if there are occasional errors in accounting similar to transactions. One of the properties of Tendermint Core is that if there is a disagreement between network validators, the network will suspend operations instead of proceeding erroneous transactions. Applications such as decentralized exchanges require correctness at all costs-if there is a problem, it is far better to suspend trading on the decentralized exchange than there may be trading problems.
Summary: Choose a suitable consensus algorithm after weighing the advantages and disadvantages
All in all, there is no single best consensus algorithm. Each consensus algorithm has its own value and advantages. You need to have your own judgments and choices. However, by understanding the relevant processes of the consensus mechanism, including proposals and agreements, and establishing a framework to consider the types of consensus algorithms that your application may require, you should be able to make wiser decisions.
4.2 Future development of consensus mechanism
The consensus algorithm is one of the core elements of the blockchain. Although there are more than 30 consensus mechanisms listed in the article, there are still many niche consensus mechanisms that may not be discussed. As the blockchain technology is gradually known and accepted by the public, more and more newer and better consensus algorithms may appear in the future, which may be brand-new consensus algorithms, and more should be improvement and optimization version based on the current consensus algorithm.
After 2016 and 2017 years’ fast development, the current consensus algorithm does not have a recognized evaluation standard, but is generally more biased towards fairness and decentralization, as well as some technical related issues, such as energy consumption and scalability , Fault tolerance and security, etc. However, blockchain technology must be combined with requirements and application scenarios, and the consensus mechanism algorithm and incentive mechanism are inseparable. How to customize a suitable consensus mechanism according to the characteristics of your own project and optimize the current consensus mechanism will become the future direction of consensus mechanism development
CelesOS
As the first DPOW financial blockchain operating system, CelesOS adopts consensus mechanism 3.0 to break through the "impossible triangle", which can provide high TPS while also allowing for decentralization. Committed to creating a financial blockchain operating system that embraces supervision, providing services for financial institutions and the development of applications on the supervision chain, and formulating a role and consensus ecological supervision layer agreement for supervision.
The CelesOS team is dedicated to building a bridge between blockchain and regulatory agencies/financial industry. We believe that only blockchain technology that cooperates with regulators will have a real future. We believe in and contribute to achieving this goal.
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Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Why coin staking will be added in Ethereum 2.0

A brief educational program for those who do not follow the update of the project of Vitalik Buterin. Ethereum has long been in need of updating, and the main problem of the network is scalability: the blockchain is overloaded, transactions are slowing down, and the cost of “gas” (transaction fees) is growing. If you do not update the consensus algorithm, then the network will someday cease to be operational. To avoid this, developers have been working for several years on moving the network from the PoW algorithm to state 2.0, running on PoS. This should make the network more scalable, faster and cheaper. In December last year, the first upgrade phase, Istanbul, was implemented in the network, and in April of this year, the Topaz test network with the possibility of staking was launched - the first users already earned 1%. In the PoS algorithm that Ethereum switches to, there is no mining, and validation occurs due to the delegation of user network coins to the masternodes. For the duration of the delegation, these coins are frozen, and for providing their funds for block validation, users receive a portion of the reward. This is staking - such a crypto-analogue of a bank deposit. There are several types of staking: with income from dividends or masternodes, but not the device’s power, as in PoW algorithms, but the number of miner coins is important in all of them. The more coins, the higher the income. For crypto investors, staking is an opportunity to receive passive income from blocked coins. It is assumed that the launch of staking:
  • Will make ETH mining more affordable, but less resource intensive;
  • Will make the network more secure and secure - attacks will become too expensive;
  • Will create an entirely new sector of steak infrastructure around the platform;
  • Provides increased scalability, which will create the opportunity for wider implementation of DeFi protocols;
  • And, most importantly, it will show that Ethereum is a developing project.

The first payments to stakeholders will be one to two years after the launch of the update

The minimum validator steak will be 32 ETN (≈$6092 for today). This is the minimum number of coins that an ETH holder must freeze in order to qualify for payments. Another prerequisite is not to disconnect your wallet from the network. If the user disconnects and goes into automatic mode, he loses his daily income. If at some point the steak drops below 16 ETH, the user will be deprived of the right to be a validator. The Ethereum network has to go through many more important stages before coin holders can make money on its storage. Collin Myers, the leader of the product strategy at the startup of the Ethereum developer ConsenSys, said that the genesis block of the new network will not be mined until the total amount of frozen funds reaches 524,000 ETN ($99.76 million at the time of publication). So many coins should be kept by 16,375 validators with a minimum deposit of 32 ETN. Until this moment, none of them will receive a percentage profit. Myers noted that this event is not tied to a clear time and depends on the activity of the community. All validators will have to freeze a rather significant amount for an indefinite period in the new network without confidence in the growth of the coin rate. It’s hard to say how many people there are. The developers believe that it will take 12−18 or even 24 months. According to the latest ConsenSys Codefi report, more than 65% of the 300 ETH owners surveyed plan to use the staking opportunity. This sample, of course, is not representative, but it can be assumed that most major coin holders will still be willing to take a chance.

How much can you earn on Ethereum staking

Developers have been arguing for a long time about what profitability should be among the validators of the Ethereum 2.0 network. The economic model of the network maintains an inflation rate below 1% and dynamically adjusts the reward scale for validators. The difficulty is not to overpay, but not to pay too little. Profitability will be variable, as it depends on the number and size of steaks, as well as other parameters. The fewer frozen coins and validators, the higher the yield, and vice versa. This is an easy way to motivate users to freeze ETN. According to the October calculations of Collin Myers, after the launch of Ethereum 2.0, validators will be able to receive from 4.6% to 10.3% per annum as a reward for their steak. At the summit, he clarified that the first time after the launch of the Genesis block, it can even reach 20.3%. But as the number of steaks grows, profitability will decline. So, with five million steaks, it drops to about 6.6%. The above numbers are not net returns. They do not include equipment and electricity costs. According to Myers, after the Genesis block, the costs of maintaining the validator node will be about 4.75% of the remuneration. They will continue to increase as the number of blocked coins increases, and with a five millionth steak, they will grow to about 14.7%. Myers emphasized that profitability will be higher for those who will work on their own equipment, rather than relying on cloud services. The latter, according to his calculations, at current prices can bring a loss of up to minus 15% per year. This, he believes, promotes true decentralization. At the end of April, Vitalik Buterin said that validators will be able to earn 5% per annum with a minimum stake of 32 ETH - 1.6 ETH per year, or $ 304 at the time of publication. However, given the cost of freezing funds, the real return will be at 0.8%.

How to calculate profitability from ETN staking

The easiest way to calculate the estimated return for Ethereum staking is to use a special calculator. For example, from the online services EthereumPrice or Stakingrewards. The service takes into account the latest indicators of network profitability, as well as additional characteristics: the time of operation of a node in the network, the price of a coin, the share of blocked ETNs and so on. Depending on these values, the profit of the validator can vary greatly. For example, you block 32 ETNs at today's coin price - $190, 1% of the coins are blocked, and the node works 99% of the time. According to the EthereumPrice calculator, in this case your yield will be 14.25% per annum, or 4.56 ETH.
Validator earnings from the example above for 10 years according to EthereumPrice.
If to change the data, you have the same steak, but the proportion of blocked coins is 10%. Now your annual yield is only 4.51%, or 1.44 ETH.
Validator earnings from the second example over 10 years according to EthereumPrice.
It is important that this is profitability excluding expenses. Real returns will be significantly lower and in the second case may be negative. In addition, you must consider the fluctuation of the course. Even with a yield of 14% per annum in ETN, dollar-denominated returns may be negative in a bear market.

When will the transition to Ethereum 2.0 start

Ben Edgington from Teku, the operator of Ethereum 2.0, at the last summit said that the transition to PoS could be launched in July this year. These deadlines, if there are no new delays, were also mentioned by experts of the BitMEX crypto exchange in their recent report on the transition of the Ethereum ecosystem to stage 2.0. However, on May 12, Vitalik Buterin denied the possibility of launching Ethereum 2.0 in July. The network is not yet ready and is unlikely to be launched before the end of the year. July 30 marks the 5th anniversary of the launch of Ethereum. Unfortunately, it seems that it will not be possible to start the update for the anniversary again. Full deployment of updates will consist of several stages. Phase 0. Beacon chain. The "zero" phase, which can be launched in July this year. In fact, it will only be a network test and PoS testing without economic activity, but it will use new ETN coins and the possibility of staking will appear. The "zero" phase will test the first layer of Ethereum 2.0 architecture - Lighthouse. This is the Ethereum 2.0 client in Rust, developed back in 2018. Phase 1. Sharding - rejection of full nodes in favor of load balancing between all network nodes (shards). This should increase network bandwidth and solve the scalability problem. This is the first full phase of Ethereum 2.0. It will initially be deployed with 64 shards. It is because of sharding that the transition of a network to a new state is so complicated - existing smart contracts cannot be transferred to a new network. Therefore, at first, perhaps several years, both networks will exist simultaneously. Phase 2. State execution. In this phase, various applications will work, and it will be possible to conclude smart contracts. This is a full-fledged working Ethereum 2.0 network. After the second phase, two networks will work in parallel - Ethereum and Ethereum 2.0. Coin holders will be able to transfer ETN from the first to the second without the ability to transfer them back. To stimulate network support, coin emissions in both networks will increase until they merge. Read more about the phases of transition to state 2.0 in the aforementioned BitMEX report.

How the upgrade to Ethereum 2.0 will affect the staking market and coin price

The transition of the second largest coin to PoS will dramatically increase the stake in the market. The deposit in 32 ETH is too large for most users. Therefore, we should expect an increase in offers for staking from the exchanges. So, the launch of such a service in November was announced by the largest Swiss crypto exchange Bitcoin Suisse. She will not have a minimum deposit, and the commission will be 15%. According to October estimates by Binance Research analysts, the transition of Ethereum to stage 2.0 can double the price of a coin and the stake of staking in the market, and it will also make ETH the most popular currency on the PoS algorithm. Adam Cochran, partner at MetaCartel Ventures DAO and developer of DuckDuckGo, argued in his blog that Ethereum's transition to state 2.0 would be the “biggest event” of the cryptocurrency market. He believes that a 3–5% return will attract the capital of large investors, and fear of lost profit (FOMO) among retail investors will push them to actively buy coins. The planned coin burning mechanism for each transaction will reduce the potential oversupply. However, BitMEX experts in the report mentioned above believe that updating the network will not be as important an event as it seems to many, and will not have a significant impact on the coin rate and the staking market. Initially, this will be more likely to test the PoS system, rather than a full-fledged network. There will be no economic activity and smart contracts, and interest for a steak will not be paid immediately. Therefore, most of the economic activity will continue to be concluded in the original Ethereum network, which will work in parallel with the new one. Analysts of the exchange emphasized that due to the addition of staking, the first time (short, in their opinion) a large number of ETNs will be blocked on the network. Most likely, this will limit the supply of coins and lead to higher prices. However, this can also release some of the ETNs blocked in smart contracts, and then the price will not rise. Moreover, the authors of the document are not sure that the demand for coins will be long-term and stable. For this to happen, PoS and sharding must prove that they work stably and provide the benefits for which the update was started. But, if this happens, the network is waiting for a wave of coins from the developers of smart contracts and DeFi protocols. In any case, quick changes should not be expected. A full transition to Ethereum 2.0 will take years and won’t be smooth - network failures are inevitable. We also believe that we should not rely on Ethereum staking as another panacea for all the problems of the coin and the market. Most likely, the transition of the network to PoS will not have a significant impact on the staking market, but may positively affect the price of the coin. However, relying on the ETN rally in anticipation of this is too optimistic.
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CelesOS Research Institute丨DPoW consensus mechanism-combustible mining and voting

CelesOS Research Institute丨DPoW consensus mechanism-combustible mining and voting
The token economy and the blockchain complement each other, while at the same time, the consensus mechanism forms the basis of the blockchain, whom constitutes the basic technical framework of the token economy.
The mainstream blockchain, like Bitcoin, Ethereum, and EOS have all compromised on certain aspects of the "impossible triangle" features.
https://preview.redd.it/8ocq98swpt551.png?width=554&format=png&auto=webp&s=37ab0235c07b450217e22531ad5291d5b4bcbbee
Bitcoin, as a decentralized digital currency, has sacrificed performance to meet the design requirements of decentralization and security, rendering it the target of highest attacking cost among all PoW public chains. The ASIC mining machines updates continually and new versions launch, both can continuously improve the computing power of the entire network.
Ethereum 2.0 will use a proof of stake (PoS) consensus mechanism. On the Ethereum network, money can be transfered and smart contracts can be operated, presenting a more complicated application scenario. However, due to its low performance, Ethereum is more prone to get congested.
EOS, as a blockchain application platform, is often suspected of being centralized. EOS uses a delegated proof of stake (DPoS) consensus mechanism. Having 21 super nodes responsible for bookkeeping and block generation, the EOS main network can handle more than 4,000 TPS now. However, due to its small number of nodes, it’s one of the three major public chains that are most easily questioned by the outside world on the "decentralization" feature.
An inefficient blockchain will only be a game in the laboratory, and an efficient blockchain without decentralization will only be taken advantage of by big players.
New generation consensus algorithm DPoW
Is there any consensus mechanism that can achieve a better balance between decentralization and efficiency, and can give miners incentives to invest in hardware resources? If we separate the two acts of "acquiring accounting rights" and "receiving block rewards", the above dilemma can be solved. By separating the above two, DPoW has finally achieved the effect of balancing efficiency and centralization.

https://preview.redd.it/www3h8swpt551.png?width=731&format=png&auto=webp&s=c0bf49a42751a9501828d0294bc9280f856c441e
Drawing on the design concept and operating experience of the preceding consensus mechanisms, DPoW is a new-generation consensus mechanism formed based on PoB and DPoS.
Before explaining DPoW, it’s necessary to introduce PoB.
PoB (Proof of Burn) is called the burning proof mechanism. (Source: https://en.bitcoin.it/wiki/Proof_of_burn))

https://preview.redd.it/payq2duzpt551.png?width=554&format=png&auto=webp&s=4b8e9181d95d31a8d5b75a7acab27c851a4a3a4d
PoB is a way to vote who has a commitment to the leadership of the network by burning tokens possessed. The greater the number of tokens burned, the higher the probability of gaining network leadership.
PoB is a method of distributed consensus and an alternative method of proof-of-work mechanism. It can also be used to guide a cryptocurrency.

https://preview.redd.it/4lmhs1i1qt551.png?width=554&format=png&auto=webp&s=e8c50b1638d8ec8d8a2dac2e842b50a2979984fb
In the DPoW-based blockchain, the miner's mining reward is no longer a token, but a "wood" that can be burned-burning wood. Through the hash algorithm, miners use their own computing power to get the corresponding non-tradable wood after proving their workload eventually. When the wood has accumulated to a certain amount, it can be burnt in the burning site.
DPoW technical solutions
Voting with computing power is the biggest innovation of the present invention. It uses the proof of work of the PoW algorithm to replace the stakes as votes, yet retains the BFT-DPoS block generation mechanism.
Specific steps are as follow:
  1. POW question acquisition
Obtain the question of proof of work. The proof of work of the present invention is to perform a Hash operation on a PoW problem; the questions is:
target = hash(block_id + account) ^ difficulty 
  1. POW question answering
A mathematical hash operation of a random number (nonce) is performed on the question, and if the hash value obtained is less than a certain value, the question is answered;
Question answering process:
nonce = random ()ret = max() while(ret > target) { if(hash(nonce+account + block_id)< target) { wood = nonce; break; } nonce++; } 
  1. Voting
Voting is to cast the specific answers to the question to the candidate BP. By such, it’s submitted to the blockchain and counted to the blockchain's status database; within an election period, the maximum value of the answer that each voter can calculate is N, and each answer can only be voted to one candidate BP, and the number of votes that can be cast is N.
The information and process that voting requires:
  • Answer to the question
  • Miner account
  • Block id
  • Block
  • Voting objects (candidate BP)
  • Verify that the vote is valid
  • After verification, it will be credited to BP
4. Count the votes
At the end of an election period, votes are counted and sorted top-down according to the number of votes under the name of the candidate BP. The top X candidate BPs are selected and inserted into the BP list, and the block generating order of the selected BP is written to the blockchain status database.
If X is the number of BPs generated by the system, namely a multiple of 3, it will be set in the genesis block and cannot be changed.
  1. Block generation
The DPoW block generation mechanism is the same as BFT-DPoS. The elected BP negotiates a block generation ownership order based on its own network resource status. When each BP node has block generation rights, the block reward is a fixed reward for each effective irreversible block. At the same time, the blocks that have been generated use the BFT signature mechanism. After getting 2/3 BP's signature, the block will become an irreversible block.
DPoW’s advantage in balance
Compared with existing technical solutions, the DPoW consensus protocol has the following feature.
  1. When the stock of burning wood is large, the nodes in the system tend to burn burning wood to vote instead of logging through computing power, which is similar to the DPoS under this situation.
  2. When the stock of burning wood is few, the nodes in this system tend to log to obtain burning wood for voting, which is similar to PoW under this situation, presenting the feature of decentralization. In order to ensure the high-speed operation of the system and attract ticket sources, BP will maintain a stable investment in computer resources to keep the system highly efficient.
Choosing to vote by logging or burning wood depends on the nodes’ own optimal choice, resulting in constant choosing between the two consensus mechanisms of PoW and DPoS. This will make nodes tend to choose PoW when decentralization is needed, and to choose DPoS when efficiency is needed.
For a system, whether it is decentralized does not depend on whether each block needs to be decentralized. The key is whether the system can provide a channel to decentralization and fair competition when needed. As long as the channel is reasonable, the system will be considered decentralized.
By decoupling vote by logging and block generation, they can be done asynchronously to achieve the effects of decentralization and high efficiency.
Learning and updating the preceding practices in blockchain technology, DPoW manages to achieve both decentralization and efficiency, as “having the cake and eating it”.

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White Paper, Miner, Pizza … | "Old Objects" in the Cryptocurrency Museum

White Paper, Miner, Pizza … |
https://preview.redd.it/giu1ssilga151.jpg?width=900&format=pjpg&auto=webp&s=41510785ccdc0d99544ec74229f62427d1c0ce3e
Museum has played the role of a time recorder. Talking about bitcoin, more than ten years has passed since the creation of it. Although it is uncomparable to the stock market with a hundred years of history, during the ten years, in the different stages of the development of bitcoin and blockchain have continuously poured in geeks, miners, speculators, newbies, leaving keywords such as sudden rich, myth, scam, belief, revolution, etc.
There are also many “old objects” with stories in the “Museum” of the cryptocurrency realm. On Museum Day, let ’s review the stories brought by these “old objects”.
The First Digital Currency White Paper — Bitcoin White Paper
On Oct. 31, 2008, Satoshi Nakamoto released the Bitcoin white paper — A Peer-to-Peer Electronic Cash System in the cryptographic mail group where he belongs, and Bitcoin was born since then.
A white paper is a document that explains the purpose and technology used in cryptocurrency. Usually a cryptocurrency uses the white paper to help people understand what it provides, and it is also an important information channel for investors to understand a project. Therefore, the level of the white paper affects people’s confidence towards the coin.
In a word, in the cryptocurrency and blockchain industry, the value of a white paper is equivalent to that of a standard financing speech. The white paper plays a vital role in this emerging market.
The First Public Bitcoin-Physical Transaction — Pizza
Since Satoshi Nakamoto mined the Bitcoin genesis block on January 3, 2009, Bitcoin has only been spread among the small crowd and has not realized its value.
Not until May 22, 2010, Bitcoin enthusiast “Laszlo Hanyecz” bought a pizza coupon worth $25 with 10,000 bitcoins. This is the first public bitcoin-physical transaction. Bitcoin has its price with 0.3 cents per bitcoin.


This day has also become the famous “Bitcoin Pizza Day” in Bitcoin history. Bitcoin as the imagination of the financial system has more practical significance. The tenth anniversary is coming. How will you commemorate it? Will you buy a pizza?
The First Digital Asset Exchange — Bitcoinmarket.com
After the birth of Bitcoin, in addition to mining, the only way to get Bitcoin in the early days was to conduct transactions on forums or IRC (commonly known as Internet Relay Chat). However, this method involves both long transaction time and great security risk.
In March 2010, the first digital asset exchange — Bitcoinmarket.com launched. However, due to lack of liquidity and transaction depth, it disappeared soon after its establishment, but Bitcoinmarket.com opened the era of the operation of the cryptocurrency realm exchange 1.0.


On June 9, 2011, China’s first Bitcoin exchange — Bitcoin China (BTCChina) launched. Its founder, Yang Linke, translated Bitcoin into Chinese “比特币” for the first time. In 2013, China’s bitcoin trading entered the golden age, and exchanges sprung up. China monopolized more than 90% of the world’s bitcoin transactions. Now, if the top three exchanges Binance, Huobi Global, OKEx are the Exchange 2.0, then the index exchange represented by 58COIN called the 3.0 version, leading the trend.
The First Generation of High-Performance Miner — ASIC Miner
When Satoshi Nakamoto created Bitcoin, the only way to get it is to use computers (including home computers) to mine, mainly relying on the CPU to calculate. However, as the value of digital currencies such as Bitcoin has become higher and higher, mining has become an industry with the competition is getting fiercer, accompanied by increasing difficulty of mining. Therefore, hardware performance competition starts.
In July 2012, the genius Jiang Xinyu (Internet nickname is “Friedcat”) from the junior class of the University of Science and Technology declared at the forum that he could make ASIC miners (chips). As far as mining computing power is concerned, ASICs can be tens of thousands or more higher than the same-generation CPUs and GPUs.
At the beginning of 2013, Zhang Nanqian (Pumpkin Zhang), a suspended doctoral student from the Beijing University of Aeronautics and Astronautics, developed the ASIC miner and named it “Avalon”.


In June 2013, the Friedcat’s miner USB was finally released, and it maintained 20% of the computing power of the entire network.
At the end of 2013, Wu Jihan, used the tens of millions yuan earned from Friedcat through investment, worked together with Jenke group, to develop the Antminer S1. Since then, the miner manufacturer Bitmain began to enter the stage of history.
It is no exaggeration to say that Friedcat and Zhang Nangeng have opened the domestic “mining” era.
The Birthplace of China’s Bitcoin — Garage Coffee
It is not only the “old objects” that record history, but also a place that everyone in the cryptocurrency realm aspires to.
Guo Hongcai once said, “Without no The Garage Café, there will be no cryptocurrency realm today. Since it is a very mysterious place that all waves of people from the café joint together to create today’s digital asset industry.

▲ In March 2013, American student Jake Smith successfully purchased a cup of coffee at The Garage Café with 0.131 bitcoins. This move attracted the attention of CCTV, and it conducted an interview.
Indeed, The Garage Café is the world ’s first entrepreneurial-themed coffee shop. It has been legendary since its establishment in 2011. The Garage Cafét is not only the core coordinate on China’s Bitcoin map, but also the birthplace of the Chinese cryptocurrency circle, where digital asset realm tycoons including Guo Hongcai, Zhao Dong, Li Xiaolai, Li Lin have made their ways.
The development of digital currency is only 11 years old. Through these “old objects”, we review the various stories of this wave of technology together, hoping to help you understand the development process of the digital currency field. Meanwhile, I also remind all practitioners to use history as a mirror and forge ahead.
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How to Create Your Own Cryptocurrency Using Python 2020

A blockchain is a public database that irreversibly documents and authenticates the possession and transmission of digital assets. Digital currencies, like Bitcoin and Ethereum, are based on this concept. Blockchain is an exciting technology that you can use to transform the capabilities of your applications.
Of late, we’ve been seeing governments, organizations, and individuals using the blockchain technology to create their own cryptocurrencies—and avoid being left behind. Notably, when Facebook proposed its own cryptocurrency, called Libra, the announcement stirred many waters across the world.

What if you could also follow suit and create your own version of a cryptocurrency?

I thought about this and decided to develop an algorithm that creates a crypto.
I decided to call the cryptocurrency fccCoin.
In this tutorial, I’m going to illustrate the step-by-step process I used to build the digital currency (I used the object-oriented concepts of the Python programming language).
Here is the basic blueprint of the blockchain algorithm for creating the fccCoin:
class Block: def __init__(): #first block class pass def calculate_hash(): #calculates the cryptographic hash of every block class BlockChain: def __init__(self): # constructor method pass def construct_genesis(self): # constructs the initial block pass def construct_block(self, proof_no, prev_hash): # constructs a new block and adds it to the chain pass u/staticmethod def check_validity(): # checks whether the blockchain is valid pass def new_data(self, sender, recipient, quantity): # adds a new transaction to the data of the transactions pass u/staticmethod def construct_proof_of_work(prev_proof): # protects the blockchain from attack pass u/property def last_block(self): # returns the last block in the chain return self.chain[-1]
Now, let me explain what is taking place…
1. Building the first Block class A blockchain comprises of several blocks that are joined to each other (that sounds familiar, right?).
The chaining of blocks takes place such that if one block is tampered with, the rest of the chain becomes invalid.
In applying the above concept, I created the following initial block class
import hashlib import time class Block: def __init__(self, index, proof_no, prev_hash, data, timestamp=None): self.index = index self.proof_no = proof_no self.prev_hash = prev_hash self.data = data self.timestamp = timestamp or time.time() u/property def calculate_hash(self): block_of_string = “{}{}{}{}{}”.format(self.index, self.proof_no, self.prev_hash, self.data, self.timestamp) return hashlib.sha256(block_of_string.encode()).hexdigest() def __repr__(self): return “{} – {} – {} – {} – {}”.format(self.index, self.proof_no, self.prev_hash, self.data, self.timestamp)
As you can see from the code above, I defined the __init__() function, which will be executed when the Block class is being initiated, just like in any other Python class.
I provided the following parameters to the initiation function:
self—this refers to the instance of the Block class, making it possible to access the methods and attributes associated with the class; index—this keeps track of the position of the block within the blockchain; proof_no—this is the number produced during the creation of a new block (called mining); prev_hash—this refers to the hash of the previous block within the chain; data—this gives a record of all transactions completed, such as the quantity bought; timestamp—this places a timestamp for the transactions. The second method in the class, calculate_hash, will generate the hash of the blocks using the above values. The SHA-256 module is imported into the project to assist in obtaining the hashes of the blocks.
After the values have been inputted into the cryptographic hash algorithm, the function will return a 256-bit string representing the contents of the block.
This is how security is achieved in blockchains—every block will have a hash and that hash will rely on the hash of the previous block.
As such, if someone tries to compromise any block in the chain, the other blocks will have invalid hashes, leading to disruption of the entire blockchain network.
Ultimately, a block will look like this:
{ “index”: 2, “proof”: 21, “prev_hash”: “6e27587e8a27d6fe376d4fd9b4edc96c8890346579e5cbf558252b24a8257823”, “transactions”: [ {‘sender’: ‘0’, ‘recipient’: ‘Quincy Larson’, ‘quantity’: 1} ], “timestamp”: 1521646442.4096143 }
2. Building the Blockchain class The main idea of a blockchain, just as the name implies, involves “chaining” several blocks to one another.
Therefore, I’m going to construct a Blockchain class that will be useful in managing the workings of the whole chain. This is where most of the action is going to take place.
The Blockchain class will have various helper methods for completing various tasks in the blockchain.
Let me explain the role of each of the methods in the class.
a. Constructor method This method ensures the blockchain is instantiated.
class BlockChain: def __init__(self): self.chain = [] self.current_data = [] self.nodes = set() self.construct_genesis()
Here are the roles of its attributes:
b. Constructing the genesis block The blockchain requires a construct_genesis method to build the initial block in the chain. In the blockchain convention, this block is special because it symbolizes the start of the blockchain.
In this case, let’s construct it by simply passing some default values to the construct_block method.
I gave both proof_no and prev_hash a value of zero, although you can provide any value you want.
def construct_genesis(self): self.construct_block(proof_no=0, prev_hash=0) def construct_block(self, proof_no, prev_hash): block = Block( index=len(self.chain), proof_no=proof_no, prev_hash=prev_hash, data=self.current_data) self.current_data = [] self.chain.append(block) return block
c. Constructing new blocks
The construct_block method is used for creating new blocks in the blockchain.
Here is what is taking place with the various attributes of this method:
d. Checking validity
The check_validity method is important in assessing the integrity of the blockchain and ensuring anomalies are absent.
As mentioned earlier, hashes are essential for the security of the blockchain as even the slightest change in the object will lead to the generation of a completely new hash.
Therefore, this check_validity method uses if statements to check whether the hash of every block is correct.
It also verifies if every block points to the right previous block, through comparing the value of their hashes. If everything is correct, it returns true; otherwise, it returns false.
u/staticmethod def check_validity(block, prev_block): if prev_block.index + 1 != block.index: return False elif prev_block.calculate_hash != block.prev_hash: return False elif not BlockChain.verifying_proof(block.proof_no, prev_block.proof_no): return False elif block.timestamp <= prev_block.timestamp: return False return True
e. Adding data of transactions
The new_data method is used for adding the data of transactions to a block. It’s a very simple method: it accepts three parameters (sender’s details, receiver’s details, and quantity) and append the transaction data to self.current_data list.
Anytime a new block is created, this list is allocated to that block and reset once more as explained in the construct_block method.
Once the transaction data has been added to the list, the index of the next block to be created is returned.
This index is calculated by adding 1 to the index of the current block (which is the last in the blockchain). The data will assist a user in submitting the transaction in future.
def new_data(self, sender, recipient, quantity): self.current_data.append({ ‘sender’: sender, ‘recipient’: recipient, ‘quantity’: quantity }) return True
f. Adding proof of work
Proof of work is a concept that prevents the blockchain from abuse. Simply, its objective is to identify a number that solves a problem after a certain amount of computing work is done.
If the difficulty level of identifying the number is high, it discourages spamming and tampering with the blockchain.
In this case, we’ll use a simple algorithm that discourages people from mining blocks or creating blocks easily.
u/staticmethod def proof_of_work(last_proof): ”’this simple algorithm identifies a number f’ such that hash(ff’) contain 4 leading zeroes f is the previous f’ f’ is the new proof ”’ proof_no = 0 while BlockChain.verifying_proof(proof_no, last_proof) is False: proof_no += 1 return proof_no u/staticmethod def verifying_proof(last_proof, proof): #verifying the proof: does hash(last_proof, proof) contain 4 leading zeroes? guess = f'{last_proof}{proof}’.encode() guess_hash = hashlib.sha256(guess).hexdigest() return guess_hash[:4] == “0000”
g. Getting the last block
Lastly, the latest_block method is a helper method that assists in obtaining the last block in the blockchain. Remember that the last block is actually the current block in the chain.
u/property def latest_block(self): return self.chain[-1]
Let’s sum everything together
Here is the entire code for creating the fccCoin cryptocurrency.
You can also get the code on this GitHub repository.
import hashlib import time class Block: def __init__(self, index, proof_no, prev_hash, data, timestamp=None): self.index = index self.proof_no = proof_no self.prev_hash = prev_hash self.data = data self.timestamp = timestamp or time.time() u/property def calculate_hash(self): block_of_string = “{}{}{}{}{}”.format(self.index, self.proof_no, self.prev_hash, self.data, self.timestamp) return hashlib.sha256(block_of_string.encode()).hexdigest() def __repr__(self): return “{} – {} – {} – {} – {}”.format(self.index, self.proof_no, self.prev_hash, self.data, self.timestamp) class BlockChain: def __init__(self): self.chain = [] self.current_data = [] self.nodes = set() self.construct_genesis() def construct_genesis(self): self.construct_block(proof_no=0, prev_hash=0) def construct_block(self, proof_no, prev_hash): block = Block( index=len(self.chain), proof_no=proof_no, prev_hash=prev_hash, data=self.current_data) self.current_data = [] self.chain.append(block) return block u/staticmethod def check_validity(block, prev_block): if prev_block.index + 1 != block.index: return False elif prev_block.calculate_hash != block.prev_hash: return False elif not BlockChain.verifying_proof(block.proof_no, prev_block.proof_no): return False elif block.timestamp <= prev_block.timestamp: return False return True def new_data(self, sender, recipient, quantity): self.current_data.append({ ‘sender’: sender, ‘recipient’: recipient, ‘quantity’: quantity }) return True u/staticmethod def proof_of_work(last_proof): ”’this simple algorithm identifies a number f’ such that hash(ff’) contain 4 leading zeroes f is the previous f’ f’ is the new proof ”’ proof_no = 0 while BlockChain.verifying_proof(proof_no, last_proof) is False: proof_no += 1 return proof_no u/staticmethod def verifying_proof(last_proof, proof): #verifying the proof: does hash(last_proof, proof) contain 4 leading zeroes? guess = f'{last_proof}{proof}’.encode() guess_hash = hashlib.sha256(guess).hexdigest() return guess_hash[:4] == “0000” u/property def latest_block(self): return self.chain[-1] def block_mining(self, details_miner): self.new_data( sender=”0″, #it implies that this node has created a new block receiver=details_miner, quantity= 1, #creating a new block (or identifying the proof number) is awarded with 1 ) last_block = self.latest_block last_proof_no = last_block.proof_no proof_no = self.proof_of_work(last_proof_no) last_hash = last_block.calculate_hash block = self.construct_block(proof_no, last_hash) return vars(block) def create_node(self, address): self.nodes.add(address) return True u/staticmethod def obtain_block_object(block_data): #obtains block object from the block data return Block( block_data[‘index’], block_data[‘proof_no’], block_data[‘prev_hash’], block_data[‘data’], timestamp=block_data[‘timestamp’])
Now, let’s test our code to see if it works.
blockchain = BlockChain() print(“***Mining fccCoin about to start***”) print(blockchain.chain) last_block = blockchain.latest_block last_proof_no = last_block.proof_no proof_no = blockchain.proof_of_work(last_proof_no) blockchain.new_data( sender=”0″, #it implies that this node has created a new block recipient=”Quincy Larson”, #let’s send Quincy some coins! quantity= 1, #creating a new block (or identifying the proof number) is awarded with 1 ) last_hash = last_block.calculate_hash block = blockchain.construct_block(proof_no, last_hash) print(“***Mining fccCoin has been successful***”) print(blockchain.chain)
It worked!
Here is the output of the mining process:
***Mining fccCoin about to start*** [0 – 0 – 0 – [] – 1566930640.2707076] ***Mining fccCoin has been successful*** [0 – 0 – 0 – [] – 1566930640.2707076, 1 – 88914 – a8d45cb77cddeac750a9439d629f394da442672e56edfe05827b5e41f4ba0138 – [{‘sender’: ‘0’, ‘recipient’: ‘Quincy Larson’, ‘quantity’: 1}] – 1566930640.5363243]
Conclusion
There you have it!
That’s how you could create your own blockchain using Python.
Let me say that this tutorial just demonstrates the basic concepts for getting your feet wet in the innovative blockchain technology.
If this coin were deployed as-is, it could not meet the present market demands for a stable, secure, and easy-to-use cryptocurrency.
Therefore, it can still be improved by adding additional features to enhance its capabilities for mining and sending financial transactions.
Nonetheless, it’s a good starting point if you decide to make your name known in the amazing world of cryptos.
If you have any comments or questions, please post them below.
Happy (crypto) coding!
Source: Cryptoors
submitted by djkloud to CryptoTechnology [link] [comments]

The new cryptocurrency "ETX" is been mining, its technology and potential have attracted much attention!

The new cryptocurrency
As the culmination of a new round of information technology innovation, the application of blockchain in the economic industry is pushing the entire economic system to achieve technological change, organizational change and efficiency change. The implementation of blockchain technology will bring the existing business model Refactoring. Among them, Bitcoin, as a representative of blockchain technology, has been in operation for 11 years from 2009 to the present. It has survived some crises and has been constantly improving and upgrading.
On January 3, 2009, the first block: the genesis block was born, the first miner and bitcoin owner: Satoshi Nakamoto, the reward generated by the first block: 50 bitcoins. This also means that the formal birth of blockchain technology and digital currency has historical significance for today's digital currency market.

https://preview.redd.it/uyjjvx99ars41.jpg?width=640&format=pjpg&auto=webp&s=0141ed26e5c38e4bd9fc610a13b4339f84656378
In the process of continuous development and improvement of the blockchain, many more excellent digital currencies have emerged, both from the technical level and the future vision, they all have relatively good performance. ETX (EthereumX-NET) is one of them, and it has been loved by digital currency enthusiasts in the early days of its birth. ETX public chain adopts a brand-new blockchain system architecture and is positioned as an easy-to-use high-performance blockchain platform designed to achieve the performance expansion of distributed applications to meet the real needs of the real world.
In order to reduce the pressure on the main chain, ETX (EthereumX -NET) adopts a layered architecture of main chain + side chain. The main chain is only responsible for the circulation of ETX. DAPP runs on the side chain and completes the safe transfer of value between the main chain and the side chain through the ETX side chain transfer mechanism. The ETX public chain uses the mechanism of arbitrators' joint signature to ensure the security of transfers with the side chain. The main chain's currency holders jointly elect a certain number of "arbitrators". By signing, most arbitrators' signatures can unlock transactions on the main chain from the account representing the side chain to the ordinary account.

https://preview.redd.it/jxwavl0cars41.jpg?width=640&format=pjpg&auto=webp&s=0edd4a872c293ef372ce47a47f3b022eb9da50de
The ETX (EthereumX-NET) ecosystem has mining with a diversified main chain, and further releases the value of computing power through technology to bring higher returns to customers. In other words, these calculations can be used to do other things. Secondly, the ETX mining pool provides a one-stop node mining service for the mining pool for the main chain of ETX relying on the PoW + DPoS consensus mechanism. Election to the ETX mining pool seed node is the first step in mining ETX mining pool nodes. Next, the ETX mining pool will launch more node mining services under the PoW + DPoS consensus mechanism. At that time, miners can participate in mining and obtain mining rewards only by proxy voting.

https://preview.redd.it/yib6c1bears41.jpg?width=640&format=pjpg&auto=webp&s=aecf7b0cefa8b819b90c7631f7c20bcaea8265b2
The technology and potential of the digital currency ETX (EthereumX -NET) that can be tapped are highly concerned. In the future, we will be able to make great achievements. Let us look forward to it together. I believe that in the near future, ETX (EthereumX-NET) will give us a generous return . (There are risks in the market, investment needs to be cautious, please do as your capability permits.)
submitted by BitRay2077 to u/BitRay2077 [link] [comments]

In depth interview with Mr. Feng: MW is not only the commercial incentive layer of IPFS

Why did early bitcoin players play MW?Why is blockchain + distributed storage the only industry that can combine mining with practice?How can human beings do things beneficial to social storage while consuming a lot of resources?Special guest Mr. Feng: early believers in bitcoin, co-founder ofMirror World Network MW, to solve our doubts one by one!
Hello, I'm Mr.Feng. I started my business in 2012.I'm an early believer in bitcoin. After two years of silence, I returned to the industry with the help of a group of friends.During this period, a lot of research has been done on distributed storage, including IPFS. So this project is also about the field of distributed storage. I think blockchain + distributed storage is the only industry that can combine mining with practice. While human beings consume a lot of resources, it can also be a commercial storage network beneficial to society. MW is a mature landing project that applies IPFS technology to actual storage, and creates a feasible solution for the landing of blockchain industry.
1. I believe that after your self introduction, many audience friends are concerned about what mirror network is doing recently. Can you share it with audience friends?What achievements have mirror network made in these years?
MW is building an easy-to-use and available distributed storage network, which creates a new computing paradigm and collaboration mode of low-cost trust building in an untrusted competitive environment.We have three years of technical precipitation and have drawn on the experience of IPFS, Alibaba cloud OSS, stoij and other technologies at home and abroad. At present, the code base is close to 900000 lines, and it will also be open-source in the future. Before that, we have run a relatively stable internal test network, and many friends have participated in it.In the next three to four months, we will release our technical achievements, including practical cases, and leave a message for you.
2.What the difference between MW and filecoin?What is the core competitiveness of MW?
I believe you have known IPFS for a long time. Filecoin is the incentive layer of IPFS. To put it simply, it is the financing tool of IPFS. It was dazzling at that time.At the same time, storj and SIA did well.We also chose this way at that time. The original intention of MW is to do real distributed storage. I think MW different from filecoin in terms of starting point. The core competitiveness of MW is technology inclusiveness. We integrate decentralized storage protocol and centralized storage protocol to solve the game between decentralized storage protocol, regulatory layer and practicability.
3.Now, MW public chain has been able to apply IPFS technology to actual storage very mature, and it is the only one.what kind of difficulties did MW encounter and how did you solve them?
In January, we asked for opinions on a small scale in the industry. At that time, we fully demonstrated the storage function and blockchain information, which was unanimously recognized by everyone.Because the team is mainly technical members, the economic model should be the biggest difficulty. After extensive collection of opinions, we adjusted it no less than ten times. Finally, we chose the open and inclusive community governance scheme. There is no model, fair competition, and community motivation is our goal.
4.MW will open the test network on April 18,How should interested users participate in the test?Is there a reward for the test?
Yes, the public beta will be officially launched on April 18, 2020. It will be divided into three stages: pioneer, union and world. You can go to mw.run see the road map , there is a threshold at the earliest stage of the pioneer stage. We need to manually authenticate the added equipment to ensure the stability and robustness of the initial stage of the network, but there will be no block reward, only contribution reward provided by the foundation.After the network is stable, we will open up the block reward and enter the computing power contest period. There will be rewards in the whole public beta stage. You only need to send an email to: [email protected] to apply for joining.
5. Distributed storage mining has always been a concern of miners. What should be paid attention to when mining in MW test network?What are the requirements for mining machines?What factors will affect the mining revenue?
I like to share with you the consensus mechanism of MW. In order to make more storage devices join the MW ecosystem more fairly, and further increase the number of stable nodes in the network to improve the network dispersion, MW adopts DPoS consensus and POC consensus based on weight table.How to understand this? In fact, MW is a very inclusive project. Simply speaking, it is as simple as bitcoin mining through the competition for computing power!We have a set of strict weight calculation and distribution mechanism, which is equivalent to the law of the whole network. It will be announced in genesis block. At present, the size of storage space has the most direct impact on the income. In addition, we have a unique mining pool system, where everyone can establish a mining pool and participate in mining dividends together without having equipment.We don't have too many requirements for mining machines. At present, we only have requirements for network environment, and we need public IP.
6.In your opinion, what is the real "visual" IPFS storage system?How MW achieve "availability" and "ease of use" when building a distributed file storage network?
"Visualization" is actually very easy to understand, that is, it can be seen and felt.Now we have developed a complete visual storage path, and MW is a typical representative of visual storage.Here I highly recommend our internal measurement network that you experience. Like using a network disk, your files can be segmented, hashed and encrypted after uploading. Finally, they can be completely recovered and downloaded. We also made a short tutorial, which can be watched and understood by interested friends.In addition, our goal is to make the IPFS distributed storage system available to all ordinary people, rather than setting too high a threshold, which represents ease of use and availability.
If you want to participate in the internal test, you can contact us before April 18 to register. We will also provide 1000 coins for free.After the test network was officially launched on April 18, all data of the internal test will be reset.
7. IPFS commercial incentive layer, but also what value can MW provide us?What is the ultimate vision of the MW?
MW network can do the following:
a.establish an open distributed blockchain storage network, form a multi chain ecology with existing networks and public chains, and complete data and value transmission.
b.set up a component distributed storage network with idle storage resources in the enterprise and individuals, and deploy various public chains, storage networks and individual nodes.
c.build a global distributed cloud storage compatible with IPFS, public cloud storage and private cloud storage.
Secondly, we need to talk about our collective chain architecture. In the public chain part, MW is an open blockchain + distributed storage system, which mainly provides benefits for the miners and maintains the stability of the network. We will also make an alliance chain in China. MW will become an application network of small distributed data center, providing users with low cost, security and high private storage services can also be used to supervise and audit enterprises and governments in some specific fields or scenarios.
Finally, we can provide data backup, verification and query services for other public chain (open source chain) data.MW is an underlying system focusing on distributed storage.
8.Security has always been a key concern of people. In terms of data security, how does the mirror network ensure data security?
Data loss and privacy are the focus of data storage. I'm sure you have heard a lot of news, including customer information disclosure, downtime, server crash, selling customer privacy and so on. In fact, this is some of the problems that central storage will face. With the continuous growth of data and the improvement of people requirements for data security, the data storage mode is also generating iterations, and IPFS protocol is a very good solution to the privacy processing,On the basis of IPFS, MW also uses technologies such as file segmentation, multi backup, encryption, multi role, data correction and deletion to ensure the data security of users.One of the simplest understandings is that we will always copy three file fragments automatically in the network node to ensure the data security.
9.With the advent of 5g cloud computing era, people have new requirements for bandwidth and traffic. How is the layout of MW?How will distributed storage develop in the future?
We are full of expectations for 5g era, which is one of the reasons why we have only launched MW until now. The small distributed storage computing center close to users is more suitable for the needs of the future era. We will set up a demonstration data center in the public test network, and conduct commercial demonstration for the storage space provided by enterprises.
At the end of last year, I read a research report jointly issued. By 2023, the data storage volume will be twice that of 2019. At present, the industry is in a high-speed development stage, in which distributed storage will enter the mainstream storage market. We have planned a three-year development path, starting with cold data, such as archived data, infrequently called data, etc., public chain miner Hosting as a data center is the business model of our alliance chain. Compared with the traditional data center or cloud, we have a natural price advantage. We can even achieve 10% of the price of Tencent cloud and Alibaba cloud equivalent products. When 5g / 6G is mature, we will enter the mainstream storage market.
In the future, we also hope that global storage, open-source public chains, and enterprises and individuals with storage resources can join Mirror World Network to provide a solid infrastructure for future storage methods, and obtain appropriate rewards.
submitted by MirrorWorldNetwork to u/MirrorWorldNetwork [link] [comments]

Introducing Burni: Proof-of-burn based NFTs with client-side genesis hashes

Most of the blockchain-based digital collectibles have a valuation based on their rarity, attributes, or connection to a particular brand.
Burni was created to inherit a valuation via proof-of-burn (see: proof-of-burn: https://en.bitcoin.it/wiki/Proof_of_burn).
The way it works, is fungible ERC-20 tokens are destroyed, or burnt up in the forging of new ERC-721 non-fungible tokens. Each token can set an IPFS content identifier multihash a single time, connecting the token to real-world assets and peer-to-peer distributed content. (see: Why IPFS?: https://youtu.be/zE_WSLbqqvo)
A distributed pseudorandom genesis hash is calculated as:
sha3(join([CONTRACT_ADDRESS, TOKEN_ID, MINT_BLOCK_HASH+1, MINT_BLOCK_HASH+2, MINT_BLOCK_HASH+3, MINT_BLOCK_HASH+4, MINT_BLOCK_HASH+5])) 
The genesis hash in combination with the underlying CID multihash, and the delay between minting and setting this value allows for flexible data structures and client-side state hydration options. For example, a MerkleDAG multihash can be used to point each token at the other for collectible mixing with genesis-hash entropy.
Running a genesis hash as a latent space seed through a GAN results in a unique photo-realistic image bound to the token. This never-before-seen cat is the result of one such token: https://i.imgur.com/pfxljnk.png
As the base token used to mint the collectibles is "used up" during the minting process, there's a deflationary process akin to a virtual resource being consumed in the creation of new materials. The NFTs have a getValuation() function to find the amount of Burni used to create the NFT.
https://burni.co
submitted by iryanbell to ethdev [link] [comments]

Bitcoin Core 0.12 full initial sync: results and analysis

Bitcoin Core 0.12 full initial sync: results and analysis submitted by mmgen-py to Bitcoin [link] [comments]

The Rise and Fall of a Bitcoin Mining Scheme That Was "Too Big to Fail"

This is the best tl;dr I could make, original reduced by 95%. (I'm a bot)
While the BCN promoters bragged that they had "The most transparent company in the history of the world," a venture that was "Too big to fail," prosecutors accuse them of operating an updated version of a classic Ponzi scheme - making exaggerated claims about mining capability they didn't have, doling out inflated earnings to early investors in order to rope in more suckers, and taking huge rake-offs for themselves, much of it in the form of commissions from a multi-level marketing setup that offered investors bonuses for recruiting new members.
Ever since the "Genesis" block of Bitcoin was first mined eleven years ago, there have been convoluted efforts to game the system, along with cryptocurrency empires that were too big to fail but did.
As speculation in cryptocurrencies has spread, more investors have also been drawn to the arcane process of Bitcoin mining - even though the chances of striking it rich in the mining business are uncertain at best, and next to none in the pyramid-scheme mining pool that BCN was offering.
Weeks claims to have brokered sales of more than $60 million in mining equipment to BCN, and he led tours of the data center in Iceland where much of the mining was taking place.
In one video, Medlin can be seen bragging that BCN would soon be mining at a rate of 1100 petahash per second, raking in $10 million to $20 million a month in Bitcoin.
The actual dollar value of its mining production is difficult to calculate, since the price of both cryptocurrencies fluctuated wildly in the course of BCN's operation, but a conservative estimate would be in the $300 million to $500 million range.
Summary Source | FAQ | Feedback | Top keywords: mine#1 week#2 BCN#3 Bitcoin#4 investor#5
Post found in /technology, /Longreads and /Buttcoin.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

The Simulation, The Multiverse, The Blockchain, and the Powers of Prediction acting on the Time-Space Continuum

The Simulation - The Multiverse
A popular topic in philosophy and science as of late is the discussion regarding whether we live in a Simulation. This idea might seem modern, or like it was inspired by the Matrix trilogy, but in fact, this idea is as ancient as any. In Hinduism, the creation of the universe is attributed to Brahman - the idea that reality exists within the mind of the creator. This is altogether not terribly different than the story we are told in the Bible - that existence originates from the thoughts of a divine creator. The alpha, the beginning, and the omega, the end - these are points in time that didn't exist until their creation and measurement - more accurately, the measurement, by us, humans. How does this relate to The Simulation? We would have to ask, if this is a Simulation, then what is it a Simulation of? If we can look at the above stories, it is the question that seeks to know, "what would happen between the beginning and end of time?" And in this sense, what you are experiencing is one of the many possibilities that exist in between the beginning and end. You are simply, somewhere in the middle, between those two points, measuring the flow of time and change in reality. The Simulation Hypothesis is proposing that you are existing in a state of quantum infinite possibilities, and measuring the reality that currently appears as data in the form of vibration ( as light, sound, or materialistically), interpreted by your sensory organs, formatted into signals that can be interpreted by your nervous system which through your brain creates what we call, reality.
Your recollection of the past reality is stored in your brain as memory - through a series of neural pathways that we cannot observe from the outside of the mind - but we have learned that this mechanism is subject to tampering. The human memory is a terrible way to store data - studies have shown that it is far from perfect. We constantly change how we remember the past so that we can live with ourselves in the present - we avoid taking responsibility for the part we play in the present entirely. We are seeking to justify our behavior in the past to avoid taking blame for the present realities we experience when they are negative. And yet, the memories that we contain about our perception of the past largely shapes how we act in the present, in an attempt to extrapolate the future in pursuit of a better one. Reality, itself, is subject to tampering. In an attempt to understand where we are in the planetary story, we pay attention to “world events” in anticipation that these events will affect us. We hear a story, and are told how it might affect us, and when we are affected, our minds create a cause and effect relationship between the two objects - the cause, and the experienced affect. Future similarities that fit the model to perceived correlations of the past result in modified behavior in the present to mitigate against the expected outcome. In this sense, we are computers made of meat, in a never ending cycle of storing data, observing data for patterns, in an attempt to extrapolate the outcomes of the future. We are walking prediction machines, looking into the past for trends, so we might learn how to craft a better future.
Self awareness, and humility - result in our ability to observe how flawed these perceptions have been in the past, but this is in itself, a step in personal growth that many people are largely seemingly incapable of. We are innately aware of our ability to use these pattern recognition abilities to observe unpleasant past experiences in hopes of avoiding similar experiences in the future - and yet, we are also aware of how often our ability to predict the future goes awry - sometimes resulting in the unpleasant reality that we hoped to avoid. In this sense, we are always looking for better data, so that we can try to make better, more accurate, predictions about the future. And this action, of looking for a better authority figure to tell us what needs to happen next to avoid a future we all want, is dangerous in itself. This behavior of outsourcing our concern and contemplation to an authority figure is perhaps the most destructive habit humanity has ever shown itself to be capable of.
And so, going back to our creation story, we are a microcosm of a celestial attempt to compute a simply question: What will/has/might happen between the beginning and end of time, as I perceive it? The brutal irony of the question, is that when a meat computer exists within a experiment to see what happens between the beginning and end of time, the meat computer within the calculation has a way of changing the outcome of the cosmic calculation of this question. An infinite amount of possibility exists as a result of a meat computer within a computation that is prone to making mistakes, unintentionally. But to err is human, and to be expected when the human doesn't have enough perspective or data at any one moment to make a completely educated guess about what's going to happen next, though the hardware is likely capable of optimizing for the future, if it had enough perspective. In spite of this, we can hopefully observe that the overarching trend is towards “good” - and in that sense, it is seemingly true, that as long as you try your best, you can forget the rest, things seem to trend in the right direction.
But we must consider the possibility in every choice ever made, that another choice could have taken place that might echo through the reality of time. Cleaving the possible universe in two directions - some people refer to this as the multiverse - the multiple possible universes that could exist infinitely, in all directions. More simply put, it is all the possible configurations of matter and energy in the universe that could have ever been possible, when including such a fuzzy calculator as the meat computer that the human mind is.
The Blockchain
The first blockchain technology, Bitcoin, was created by a mysterious figure going under the pseudonym “Satoshi Nakamoto”. It was created to act as a replacement for the banking system that didn't require a third party like Visa, Mastercard, or Bank of America to facilitate. Simply put, it is a system that keeps track of the balances of of the quantity of bitcoin in every account on the network, and keep track of its changes. The intervals that change is permitted to occur on are called, “blocks” - hence the name, blockchain. When you start at the beginning, or alpha/genesis block, there is nothing, and as blocks are created, a more complex arrangement of the balances of bitcoin are created using algorithms to validate the changes from one block to another. More specifically, it is a digital universe that is storing the present configuration of 1’s and 0’s to represent the location of all the bitcoin in existence by way of “wallet” addresses. But, let us imagine for a moment that this system was not accounting for all of the possible locations of “internet money” in “wallets” but instead, was accounting for locations in time and space, and the characteristics of matter and energy at those points. Imagine, that instead this decentralized network of computers was coming to an agreement about reality, not in the sense of how much money each of the users had, but rather how many protons, neutrons, and electrons existed in every possible location in space, and with what amount of energy. Now, every time a block is added to the chain, we are observing the increase/decrease in the presence of energy and particles in each of those possible points in space. If we viewed the changes in these points in space across a progression, we would be observing the change of matter in the flow of time. In this example, the smallest unit of time, is considered to be one block - in physics, the term for the smallest possible unit of time is referred to as a Planck. Physics would tell you that a series of Plancks observed together is what creates a moment in your experience of reality. The change from one planck to another is similar to to the blockchain - your ability to perceive these changes accounts for the continual progression of time as you observe it, which is to be the reality you live in. In the world of blockchain technology, if the machines measuring the change in reality have a disagreement - this can sometimes result in what is called a “fork”. It is when the network of machines measuring, changing, and maintaining the records of the past decide to go their separate ways. Litecoin and bitcoin cash are forks of bitcoin. Ethereum and Ethereum Classic are forks of each other. In this sense, we are watching these blockchain technologies create multiverses every time a fork happens. This is also what is happening in your reality every moment, but you simply cannot access the other forks, because you are experiencing the present reality you measure and choose to participate in while hoping to experience a better future.
Prediction
What we might consider prediction of the future is in many ways also our creation of that future through action. To think that a desired future is going to come your way simply by wishing for it without participation in the creation of that future is what some might refer to as “magical thinking”. However, inaction is, in itself, a choice that will affect the future. Sometimes, sitting and waiting patiently for change to occur is the right choice. Sometimes, expecting change to occur through inaction is madness. Whether something is madness, or the right choice, largely depends on the outcome, not that actions taken to get there. We do not evaluate a decision based on intention or hope - we base it on results. Results are, after all, the litmus test we use to determine if a choice is a success or not.
But hopefully you can see, that the very action of attempting to predict the future, or assuming that one is capable of doing so, inherently changes the future. Which leads to an interesting question - can we predict a desired future, and through the expectation of it to come, actually cause it to manifest it? In short, this is the power of belief and its ability to change the world. It is the Law of Attraction. If you believe that America is going to erupt in cannibalistic anarchy, you might buy a gun, some salt, and pepper. In the presence of these ingredients, it has become that much easier to comfortably eat your neighbor in that horrific future, and thus, created a higher probability of cannibalistic anarchy occuring that drove you to prepare for it.
Unfortunately, sales of guns, salt, and pepper are at an all-time high. So in this sense, we should be very afraid. But, perhaps, if we decided collectively that this future is not one that we want to move towards anymore, and predicted a better future for ourselves based on an honest reflection of humanities propensity for cruelty, greed, and madness - that we might be able engineer a prediction mechanism that could use those all too common human traits to manifest a better future.
Imagine you are looking out the gap in the blinds of your house - waiting for the race war, or Mad Max future to show itself on your front door. You are deciding whether or not to buy an AR-15 and load up on seasoning and ammunition. The old adage, “Better to have one and not need it” has been the prevailing theory on how to ensure survival in a world where if you don't have a firearm, then in all likelihood, your neighbor does. But what about if we created an alternative that would better suit your needs when the shit hits the fan?
Imagine if you could go to a marketplace for prediction, where you could express your worry, certainty, and desire for security in dollars. This already exists in many forms. You can imagine these marketplaces like a sportsbook or bookie for the future. Instead of betting on who is going to win the superbowl, you are betting on the likelihood of an awful outcome that worries you. This is also functionally what an insurance contract is.
But imagine if we created an insurance plan that is so competitive in protecting you against the cannibalistic anarchy you are fearing, that instead of buying an AR-15, ammo, and seasoning, you purchased a position in the marketplace where if there was a collapse of society, you would get 500x your investment in a global store of value, like gold, or cryptocurrency. Now, instead of having spent 1,000 USD on an AR-15 and only having a AR-15 to survive the apocalypse with - you have the equivalent of 5,000,000 USD in transferable wealth. You can certainly buy a spare AR-15 at that point. You can also buy any other supplies, like chickens, salt, and pepper - and maybe not need to eat your neighbor.
Would we not say that by using such a prediction market, we created a better possible future, where the likelihood of cannibalistic anarchy wasnt increased by the purchase of a firearm? Did the alternative to purchase such a position within a prediction market in fact decrease the likelihood of the awful outcome we had come to fear? Almost certainly. In this sense, simply because we predicted with near certainty that there would be no apocalypse, that the likelihood of an apocalypse decreased. But where would the limits be? How can we know if we never try?
Imagine if instead of betting against the apocalypse, there was a 250:1 payout against the likelihood that a base on the moon will be created or discovered this year. In one year, if there was no moon base discovered or created, then the money anyone lost by betting such an outcome would happen could be rolled over into the next year. If in the second year, there was still no moon base discovered or created, the funds could be rolled over an additional time. If no progress was being made on creating a moon base, then we could increase the payout over time to maybe 500:1. Until finally, Elon Musk sees that the costs of creating a moon base is recoverable by way of betting on himself, and builds one, recouping the cost of construction from the prediction market.
In this sense, we can imagine a mechanism of prediction that is fueled by greed, fear, wealth, and ambition, that might be able to create or prevent a future that as a species we desire to create in a decentralized way - without ever needing to see our politicians create a compromise to give that future to us.
Every moment of your life is an opportunity to create a fork that might lead somewhere better. Often, we simply aren't aware that we have other choices. Maybe its time that we become more aware, before some sort of artificial intelligence becomes aware and makes the choices for us.
Conclusion
Make no mistake about it - you live in a Simulation on some level. Your very perception of the events of your life is a Simulation that only exists within your own head. When your mind and another mind meet, a compromise of reality must take place if those minds are going to come to cooperate in the pursuit of a better future.
On a grander scale, we might be living in a decentralized computational model of reality that only seemingly exists because we perceive the changes through the lenses of our eyes. But hopefully, we exist in a non-deterministic reality, where the past, present, and future are all infinitely configurable and possible. And if all things are possible, then the only thing we can hope to do in the present is increase the probability of our desired possible outcome. But, if we are going to continue to live in fear of each other, rather than cooperate, it seems there is little hope for humanity. We would have to put our faith in the idea that all of us are mirror images of each other, and all want a better future for our families - and hope that a better future has room for us all.
submitted by SingularityNow9 to SimulationTheory [link] [comments]

Nuvmining | What Is Bitcoin, How Is It Various Than "Real" Cash and also How Can I Get Some?

Bitcoin is a digital money. It does not exist in the kind of physical type that the currency & coin we're used to exist in. It does not even exist in a type as physical as Syndicate cash. It's electrons - not molecules.
nuv mining
Yet consider just how much cash you directly handle. You obtain an income that you require to the bank - or it's autodeposited without you even seeing the paper that it's not printed on. You after that utilize a debit card (or a checkbook, if you're old school) to access those funds. At finest, you see 10% of it in a money form in your pocket or in your pocketbook. So, it turns out that 90% of the funds that you take care of are online - electrons in a spreadsheet or data source.
nuvmining
However delay - those are UNITED STATE funds (or those of whatever nation you come from), safe in the financial institution and also ensured by the complete belief of the FDIC approximately about $250K per account, right? Well, not exactly. Your banks might just called for to maintain 10% of its deposits on down payment. In some cases, it's much less. It offers the rest of your cash bent on other individuals for approximately thirty years. It charges them for the funding, and also costs you for the advantage of letting them offer it out.
Just how does money obtain developed?
Your financial institution reaches produce money by offering it out.
State you deposit $1,000 with your bank. They then lend out $900 of it. Unexpectedly you have $1000 as well as another person has $900. Magically, there's $1900 floating around where prior to there was only a grand.
Currently claim your bank instead offers 900 of your dollars to another financial institution. That financial institution in turn lends $810 to an additional financial institution, which after that offers $720 to a client. Poof! $3,430 in an immediate - virtually $2500 produced out of nothing - as long as the bank follows your federal government's central bank rules.
Production of Bitcoin is as different from bank funds' creation as cash money is from electrons. It is not managed by a government's reserve bank, but rather by consensus of its customers as well as nodes. It is not developed by a restricted mint in a structure, however rather by dispersed open source software program and computer. As well as it needs a type of real work for production. Extra on that particular shortly.
Who created BitCoin?
The very first BitCoins remained in a block of 50 (the "Genesis Block") created by Satoshi Nakomoto in January 2009. It really did not really have any type of worth initially. It was simply a cryptographer's toy based on a paper published two months earlier by Nakomoto. Nakotmoto is an evidently imaginary name - nobody appears to know that she or he or they is/are.
That monitors everything?
Once the Genesis Block was developed, BitCoins have actually because been produced by doing the work of keeping track of all deals for all BitCoins as a kind of public journal. The nodes/ computers doing the computations on the journal are awarded for doing so. For each collection of effective calculations, the node is rewarded with a specific quantity of BitCoin (" BTC"), which are after that freshly produced right into the BitCoin community. For this reason the term, "BitCoin Miner" - because the procedure develops new BTC. As the supply of BTC increases, and also as the number of transactions boosts, the job essential to update the public ledger gets harder and also much more complicated. As a result, the variety of new BTC right into the system is created to be concerning 50 BTC (one block) every 10 minutes, worldwide.
Although the computer power for mining BitCoin (as well as for upgrading the public ledger) is currently boosting exponentially, so is the intricacy of the mathematics problem (which, incidentally, additionally needs a certain amount of thinking), or "evidence" needed to mine BitCoin as well as to settle the transactional publications at any type of provided moment. So the system still only generates one 50 BTC block every 10 minutes, or 2106 blocks every 2 weeks.
So, in a sense, everyone tracks it - that is, all the nodes in the network keep track of the background of every single BitCoin.
Just how much is there and also where is it?
There is a maximum variety of BitCoin that can ever before be produced, and that number is 21 million. According to the Khan Academy, the number is anticipated to peak around the year 2140.
Since, today there were 12.1 million BTC in flow
Your very own BitCoin are kept in a documents (your BitCoin purse) in your very own storage space - your computer system. The data itself is evidence of the number of BTC you have, and also it can move with you on a mobile phone.
If that data with the cryptographic key in your wallet obtains lost, so does your supply of BitCoin funds. And also you can't obtain it back.
Just how much is it worth?
The value differs based on just how much people believe it deserves - similar to in the exchange of "real cash." Yet due to the fact that there is no central authority trying to maintain the value around a certain level, it can vary a lot more dynamically. The very first BTC were generally worth absolutely nothing at the time, however those BTC still exist. Since 11AM on December 11, 2013, the general public value was $906.00 United States per BitCoin. When I completed composing this sentence, it was $900.00. Around the start of 2013, the value was around $20.00 United States. On November 27, 2013 it was valued at greater than $1,000.00 United States per BTC. So it's kind of unstable presently, yet it's expected to calm down.
The complete value of all BitCoin - since the period at the end of this sentence - is around 11 billion US bucks.
How can I get me some?
First, you have to have a BitCoin purse. This post has links to get one.
Then one method is to purchase some from one more private party, like these individuals on Bloomberg TV. One method is to purchase some on an exchange, like Mt. Gox.
As well as finally, one means is to dedicate a lot of computer power as well as power to the process as well as become a BitCoin miner. That's well outside the extent of this post. However if you have a couple of thousand extra dollars lying around, you can obtain rather a gear.
Exactly how can I spend it?
There are numerous vendors of all sizes that take BitCoin in payment, from cafes to auto dealers. There's also a BitCoin ATM in Vancouver, British Columbia for transforming your BTC to cash in Vancouver, BC.
And so?
Money has had a lengthy background - centuries in size. Somewhat recent tale tells us that Manhattan Island was bought for wampum - seashells & the like. In the very early years of the United States, different financial institutions printed their own money. On a recent visit to Salt Spring Island in British Columbia, I invested currency that was just good on the beautiful island. The common style among these was a trust agreement amongst its customers that specific currency held value. In some cases that worth was tied directly to something strong and physical, like gold. In 1900 the U.S. connected its currency straight to gold (the "Gold Requirement") and in 1971, ended that tie.
Currently money is traded like any kind of various other commodity, although a certain nation's currency worth can be propped up or decreased through activities of their reserve bank. BitCoin is an alternative money that is also traded as well as its value, like that of various other products, is figured out via trade, yet is not stood up or lessened by the action of any kind of bank, however rather straight by the activities of its individuals. Its supply is minimal as well as known nevertheless, and also (unlike physical money) so is the history of each and every single BitCoin. Its viewed worth, like all various other money, is based on its utility and also count on.
As a form of currency, BitCoin not specifically a new thing in Production, however it absolutely is a new means for cash to be created.
submitted by Nuvmining to u/Nuvmining [link] [comments]

Bitcoin Private (BTCP) Is Easy to 51 Percent Attack and Has a Hidden 2.04 Million Coin Premine

Bitcoin Private (BTCP) Is Easy to 51 Percent Attack and Has a Hidden 2.04 Million Coin Premine

https://preview.redd.it/qrb6gjkz2p621.png?width=690&format=png&auto=webp&s=408b4882eac543cadcbe8c295d459688b7b2dedf
https://cryptoiq.co/bitcoin-private-btcp-is-easy-to-51-percent-attack-and-has-a-hidden-2-04-million-coin-premine/
The War On Shitcoins Episode 8: Bitcoin Private (BTCP). The war on shitcoins is a Crypto.IQ series that targets and shoots down cryptocurrencies that are not worth investing in either due to their being scams, having serious design flaws, being centralized, or in general just being worthless copies of other cryptocurrencies. There are thousands of shitcoins that are ruining the markets, and Crypto.IQ intends to expose all of them. The crypto space needs an exorcism, and we are happy to provide it.
Bitcoin Private (BTCP) is one of numerous Bitcoin forks but is perhaps one of the more well-known forks. Bitcoin Private (BTCP) launched in March 2018, and in April, briefly attained a market cap of $1.5 billion. However, Bitcoin Private (BTCP) is a good example of how market cap is a poor measure of the legitimacy or usefulness of a cryptocurrency.
In October, a hacker live streamed a 51 percent attack against Bitcoin Private (BTCP) for fun, using hash power rented from a cloud mining site. Now it has come to light that the Bitcoin Private developer team minted an extra 2.04 million BTCP during the genesis fork and hid this fact from the public. Essentially, Bitcoin Private (BTCP) is a shitcoin because it lacks security and has corrupt developers, as we’ll explain in this article.
Anyone Could 51 percent Attack Bitcoin Private (BTCP)
A hacker who uses the pseudonym “Geocold” wanted to prove to the world how easy it is to 51 percent attack a cryptocurrency, even a cryptocurrency with a market cap in excess of $50 million at the time, one like Bitcoin Private (BTCP).
Perhaps Geocold was inspired by Crypto51, a website that calculates how affordable it is to perform a 51 percent attack on various cryptocurrencies. Currently Bitcoin Private is still extremely vulnerable to a 51 percent attack since the total network hash rate is seven MH/s and uses the equihash algorithm.
Crypto51 indicates it costs a mere $48 to 51 percent attack Bitcoin Private (BTCP) for an hour, so perhaps for less than $200 a hacker could perform a sustained and devastating attack that would decimate Bitcoin Private (BTCP). It seems like most major exchanges have delisted Bitcoin Private (BTCP) after Geocold’s initial livestream, but several exchanges still offer Bitcoin Private (BTCP), which is a true disservice to their customers and puts the exchange itself at risk.
The Geocold livestream 51 percent attack of Bitcoin Private (BTCP) caused a media frenzy in the crypto space. Many thought it should be illegal to attack a cryptocurrency, and indeed Twitch and Stream.me banned Geocold’s account. Geocold obtained 62.5 percent of the Bitcoin Private (BTCP) hash rate and was successfully mining blocks and was ready to perform the double spend attack, but he only stopped because he lost his streaming account.
As we’ve mentioned, anyone with $50 and a little programming knowledge could perform a successful 51 percent double spend attack on Bitcoin Private (BTCP). Geocold was doing the crypto space a service by exposing this truth. In general, people should do research before investing or trading a cryptocurrency to ensure it is actually secure. In this case, Bitcoin Private (BTCP) obviously lacks security, yet it still has a market cap of tens of millions of dollars and hundreds of thousands of dollars of daily trading volume.
Bitcoin Private (BTCP) Developers Secretly Premined 2.04 Million Coins
The fact that Bitcoin Private (BTCP) can be so easily attacked makes it a shitcoin, but the revelation that the developers secretly mined 2.04 million BTCP during the genesis fork is the nail in the coffin.
The whole idea behind Bitcoin Private is that it is Bitcoin integrated with Zclassic (similar to Zcash) privacy technology. This means there are stealth addresses and transparent addresses. The developers used this to their advantage, they minted 2.04 million BTCP and hid it in stealth addresses. Further, the developers released supply auditing checks for BTCP that purposely missed the hidden premine.
It has been over 9 months since Bitcoin Private launched, and this is only being discovered now. The total supply of Bitcoin Private (BTCP) is supposed to be 21 million coins like Bitcoin, but there are already 22.6 million BTCP in existence and mining continues.
It appears 300,000 BTCP from the hidden premine were dumped onto the market between July and August, coinciding with a price crash from $10 to $3. It is estimated that these dumped BTCP from the hidden premine netted the developers between $1 million and $3 million, while simultaneously the total BTCP market cap lost over $100 million.
There is nothing to stop the developers from dumping the other 1.74 million BTCP that they have in their not-so-hidden premine. The market is reacting to this revelation, and the price of BTCP has dropped to $2. If the developers were to actually cash out this premine all at once it would completely saturate the order books and drop the price of BTCP to near zero.
Even at this lower price the market cap of Bitcoin Private (BTCP) is in excess of $40 million. This makes zero sense for a cryptocurrency that can easily be 51 percent attacked by any script kiddie, while simultaneously the market could be sucked dry at any moment by the corrupt developers.
submitted by turtlecane to CryptoCurrency [link] [comments]

How Ethereum block rewards changed: from 5 ETH to the thirdening

How Ethereum block rewards changed: from 5 ETH to the thirdening
In our last post, we talked about how new Ethereum blocks are mined, what uncle blocks are, and how miners get their rewards. This time, we’ll delve deeper into how the size of the reward is determined and thirdening means.
Ethereum is an inflationary currency. Its supply constantly grows, and there is no maximum limit on ETH supply. It’s the same with any fiat currency, actually. There can be as many USD in circulation as the US government wants to print. By the way, the situation is very different with Bitcoin, where the upper limit is set at 21 million BTC — and no more BTC will be mined beyond this point.
The difference between inflationary USD and inflationary ETH is that new ether is mined according to an algorithm. At any given moment, you can calculate how many new ETH will be produced on the main chain in the next 24 hours, week, or month. For example, right now the block reward is 2 ETH per block, and the average block time is 20 seconds. So about 6 new ETH are created every minute, 6*60=360 ETH every hour, and 360*24=8640 ETH every 24 hours.
To this, you need to add all the new ETH awarded for adding uncle blocks. As you may remember, when two blocks with the same transactions inside are mined at the same time, one is selected to be added to the main chain, and the other becomes an uncle block — a bit like an orphan block on Bitcoin. Some miners might continue to build on this uncle for a while, but eventually they abandoned it. We’ve also discussed that uncle blocks are rewarded, too, but at a lower rate. For the first one, a miner gets about 87.5% of the full block reward, but each new block added to the uncle chain gets less and less. That’s why miners switch to the main chain sooner or later.
Because it’s hard to predict how many uncle blocks there will be every day, you can’t calculate exactly how much new ether will be produced in any 24-hour period. But one thing is certain: Ethereum inflation never stops. And when there’s more money in circulation, it tends to lose value. So if the amount of ether becomes too great, its price might fall. The way the network tries to deal with this problem is to cut the block reward from time to time.
When Ethereum launched five years ago, a total of 72 million ether were produced as part of the genesis block. Those who contributed to the project were awarded 60 million ether, and the rest went to the Ethereum Foundation.
For a while after launch — until the block height of 4 399 999, to be precise — the reward was 5 ETH per block. Back then, the price wasn’t particularly high, though, so mining ETH wasn’t a get-rich-quick scheme at first.
On October 17, 2017, the Byzantium hard fork was activated. At block 4 370 000, the reward was cut from 5 ETH to 3 ETH. Uncle rewards were adjusted accordingly. This was part of the so-called EIP (Ethereum Improvement Proposal) 649.
Finally, on February 28, 2019, the Constantinople update went into effect at block height 7 280 000. That’s when the notorious “thirdening” happened. This means that the block reward was cut by one third — from 3 ETH to 2 ETH per block. This was an extremely controversial decision, and its negative effects for small, independent miners can be serious in the long term.
In our next post, we’ll talk about the difficulty bomb, the Ethereum ice age, and how miners can suffer from the thirdening. All this exposition is necessary before we can get to the most interesting part — 2Ether dynamic block rewards. Stay tuned and follow us on social network.
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Part 5. I'm writing a series about blockchain tech and possible future security risks. This is the fifth part of the series talking about an advanced vulnerability of BTC.

The previous parts will give you usefull basic blockchain knowledge and insights on quantum resistance vs blockchain that are not explained in this part.
Part 1, what makes blockchain reliable?
Part 2, The mathematical concepts Hashing and Public key cryptography.
Part 3, Quantum resistant blockchain vs Quantum computing.
Part 4A, The advantages of quantum resistance from genesis block, A
Part 4B, The advantages of quantum resistance from genesis block, A

Why BTC is vulnerable for quantum attacks sooner than you would think.
Content:
The BTC misconception: “Original public keys are not visible until you make a transaction, so BTC is quantum resistant.”
Already exposed public keys.
Hijacking transactions.
Hijacks during blocktime
Hijacks pre-blocktime.
MITM attacks

- Why BTC is vulnerable for quantum attacks sooner than you would think. -

Blockchain transactions are secured by public-private key cryptography. The keypairs used today will be at risk when quantum computers reach a certain critical level: Quantum computers can at a certain point of development, derive private keys from public keys. See for more sourced info on this subject in part 3. So if a public key can be obtained by an attacker, he can then use a quantum computer to find the private key. And as he has both the public key and the private key, he can control and send the funds to an address he owns.
Just to make sure there will be no misconceptions: When public-private key cryptography such as ECDSA and RSA can be broken by a quantum computer, this will be an issue for all blockchains who don't use quantum resistant cryptography. The reason this article is about BTC is because I take this paper as a reference point: https://arxiv.org/pdf/1710.10377.pdf Here they calculate an estimate when BTC will be at risk while taking the BTC blocktime as the window of opportunity.
The BTC misconception: “Original public keys are not visible until you make a transaction, so BTC is quantum resistant.”
In pretty much every discussion I've read and had on the subject, I notice that people are under the impression that BTC is quantum resistant as long as you use your address only once. BTC uses a hashed version of the public key as a send-to address. So in theory, all funds are registered on the chain on hashed public keys instead of to the full, original public keys, which means that the original public key is (again in theory) not public. Even a quantum computer can't derive the original public key from a hashed public key, therefore there is no risk that a quantum computer can derive the private key from the public key. If you make a transaction, however, the public key of the address you sent your funds from will be registered in full form in the blockchain. So if you were to only send part of your funds, leaving the rest on the old address, your remaining funds would be on a published public key, and therefore vulnerable to quantum attacks. So the workaround would be to transfer the remaining funds, within the same transaction, to a new address. In that way, your funds would be once again registered on the blockchain on a hashed public key instead of a full, original public key.
If you feel lost already because you are not very familiar with the tech behind blockchain, I will try to explain the above in a more familiar way:
You control your funds through your public- private key pair. Your funds are registered on your public key. And you can create transactions, which you need to sign to be valid. You can only create a signature if you have your private key. See it as your e-mail address (public key) and your password (Private key). Many people got your email address, but only you have your password. So the analogy is, that if you got your address and your password, then you can access your mail and send emails (Transactions). If the right quantum computer would be available, people could use that to calculate your password (private key), if they have your email address (public key).
Now, because BTC doesn’t show your full public key anywhere until you make a transaction. That sounds pretty safe. It means that your public key is private until you make a transaction. The only thing related to your public key that is public is the hash of your public key. Here is a short explanation of what a hash is: a hash is an outcome of an equation. Usually one-way hash functions are used, where you can not derive the original input from the output; but every time you use the same hash function on the same original input (For example IFUHE8392ISHF), you will always get the same output (For example G). That way you can have your coins on public key "IFUHE8392ISHF", while on the chain, they are registered on "G".
So your funds are registered on the blockchain on the "Hash" of the public key. The Hash of the public key is also your "email address" in this case. So you give "G" as your address to send BTC to.
As said before: since it is, even for a quantum computer, impossible to derive a public key from the Hash of a public key, your coins are safe for quantum computers as long as the public key is only registered in hashed form. The obvious safe method would be, never to reuse an address, and always make sure that when you make a payment, you send your remaining funds to a fresh new address. (There are wallets that can do this for you.) In theory, this would make BTC quantum resistant, if used correctly. This, however, is not as simple as it seems. Even though the above is correct, there is a way to get to your funds.
Already exposed public keys.
But before we get to that, there is another point that is often overlooked: Not only is the security of your personal BTC is important, but also the security of funds of other users. If others got hacked, the news of the hack itself and the reaction of the market to that news, would influence the marketprice. Or, if a big account like the Satoshi account were to be hacked and dumped, the dump itself, combined with the news of the hack, could be even worse. An individual does not have the control of other people’s actions. So even though one might make sure his public key is only registered in hashed form, others might not do so, or might no know their public key is exposed. There are several reasons why a substantial amount of addresses actually have exposed full public keys:
In total, about 36% of all BTC are on addresses with exposed public keys Of which about 20% is on lost addresses. and here
Hijacking transactions.
But even if you consider the above an acceptable risk, just because you yourself will make sure you never reuse an address, then still, the fact that only the hashed public key is published until you make a transaction is a false sense of security. It only works, if you never make a transaction. Why? Public keys are revealed while making a transaction, so transactions can be hijacked while being made.
Here it is important to understand two things:
1.) How is a transaction sent?
The owner has the private key and the public key and uses that to log into the secured environment, the wallet. This can be online or offline. Once he is in his wallet, he states how much he wants to send and to what address.
When he sends the transaction, it will be broadcasted to the blockchain network. But before the actual transaction will be sent, it is formed into a package, created by the wallet. This happens out of sight of the sender.
That package ends up carrying roughly the following info: the public key to point to the address where the funds will be coming from, the amount that will be transferred, the address the funds will be transferred to (depending on the blockchain this could be the hashed public key, or the original public key of the address the funds will be transferred to). This package also carries the most important thing: a signature, created by the wallet, derived from the private- public key combination. This signature proves to the miners that you are the rightful owner and you can send funds from that public key.
Then this package is sent out of the secure wallet environment to multiple nodes. The nodes don’t need to trust the sender or establish the sender’s "identity”, because the sender proofs he is the rightful owner by adding the signature that corresponds with the public key. And because the transaction is signed and contains no confidential information, private keys, or credentials, it can be publicly broadcast using any underlying network transport that is convenient. As long as the transaction can reach a node that will propagate it into the network, it doesn’t matter how it is transported to the first node.
2.) How is a transaction confirmed/ fulfilled and registered on the blockchain?
After the transaction is sent to the network, it is ready to be processed. The nodes have a bundle of transactions to verify and register on the next block. This is done during a period called the block time. In the case of BTC that is 10 minutes.
If we process the information written above, we will see that there are two moments where you can actually see the public key, while the transaction is not fulfilled and registered on the blockchain yet.
1: during the time the transaction is sent from the sender to the nodes
2: during the time the nodes verify the transaction. (The blocktime)
Hijacks during blocktime
This paper describes how you could hijack a transaction and make a new transaction of your own, using someone else’s address and send his coins to an address you own during moment 2: the time the nodes verify the transaction:
https://arxiv.org/pdf/1710.10377.pdf
"(Unprocessed transactions) After a transaction has been broadcast to the network, but before it is placed on the blockchain it is at risk from a quantum attack. If the secret key can be derived from the broadcast public key before the transaction is placed on the blockchain, then an attacker could use this secret key to broadcast a new transaction from the same address to his own address. If the attacker then ensures that this new transaction is placed on the blockchain first, then he can effectively steal all the bitcoin behind the original address." (Page 8, point 3.)
So this means that BTC obviously is not a quantum secure blockchain. Because as soon as you will touch your funds and use them for payment, or send them to another address, you will have to make a transaction and you risk a quantum attack.
Hijacks pre-blocktime.
The story doesn't end here. The paper doesn't describe the posibility of a pre-blocktime hijack.
So back to the paper: as explained, while making a transaction your public key is exposed for at least the transaction time. This transaction time is 10 minutes where your transaction is being confirmed during the 10 minute block time. That is the period where your public key is visible and where, as described in the paper, a transaction can be hijacked, and by using quantum computers, a forged transaction can be made. So the critical point is determined to be the moment where quantum computers can derive private keys from public keys within 10 minutes. Based on that 10 minute period, they calculate (estimate) how long it will take before QC's start forming a threat to BTC. (“ By our most optimistic estimates, as early as 2027 a quantum computer could exist that can break the elliptic curve signature scheme in less than 10 minutes, the block time used in Bitcoin.“ This is also shown in figure 4 on page 10 and later more in depth calculated in appendix C, where the pessimistic estimate is around 2037.) But you could extend that 10 minutes through network based attacks like DDoS, BGP routing attacks, NSA Quantum Insert, Eclipse attacks, MITM attacks or anything like that. (And I don’t mean you extend the block time by using a network based attack, but you extend the time you have access to the public key before the transaction is confirmed.) Bitcoin would be earlier at risk than calculated in this paper.
Also other Blockchains with way shorter block times imagine themselves safe for a longer period than BTC, but with this extension of the timeframe within which you can derive the private key, they too will be vulnerable way sooner.
Not so long ago an eclipse attack demonstrated it could have done the trick. and here Causing the blockchain to work over max capacity, means the transactions will be waiting to be added to a block for a longer time. This time needs to be added on the blocktime, expanding the period one would have time to derive the private key from the public key.
That seems to be fixed now, but it shows there are always new attacks possible and when the incentive is right (Like a few billion $ kind of right) these could be specifically designed for certain blockchains.
MITM attacks
An MITM attack could find the public key in the first moment the public key is exposed. (During the time the transaction is sent from the sender to the nodes) So these transactions that are sent to the network, contain public keys that you could intercept. So that means that if you intercept transactions (and with that the private keys) and simultaneously delay their arrival to the blockchain network, you create extra time to derive the private key from the public key using a quantum computer. When you done that, you send a transaction of your own before the original transaction has arrived and is confirmed and send funds from that stolen address to an address of your choosing. The result would be that you have an extra 10, 20, 30 minutes (or however long you can delay the original transactions), to derive the public key. This can be done without ever needing to mess with a blockchain network, because the attack happens outside the network. Therefore, slower quantum computers form a threat. Meaning that earlier models of quantum computers can form a threat than they assume now.
When MITM attacks and hijacking transactions will form a threat to BTC, other blockchains will be vulnerable to the same attacks, especially MITM attacks. There are ways to prevent hijacking after arrival at the nodes. I will elaborate on that in the next article. At this point of time, the pub key would be useless to an attacker due to the fact there is no quantum computer available now. Once a quantum computer of the right size is available, it becomes a problem. For quantum resistant blockchains this is differetn. MITM attacks and hijacking is useless to quantum resistant blockchains like QRL and Mochimo because these projects use quantum resistant keys.
submitted by QRCollector to CryptoTechnology [link] [comments]

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Bitcoin Commemorative Coin - Genesis Block Turns 10!

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