Bitcoin Hash Rate Down 10% after Mining Difficulty ...
Bitcoin Hash Rate Down 10% after Mining Difficulty ...
Mining difficulty of Litebar - BitcoinWiki
Curecoin Difficulty Chart CoinWarz
Mining difficulty of Bitcoin - BitcoinWiki
mining difficulty BTCMANAGER
100 Reasons to Buy Bitcoin
Bitcoin is the most censorship resistant money in the world.
You don't have to buy a “whole” bitcoin so don't freak out if you look at the price. You can buy a piece of one no problem.
The Dallas Mavericks accept Bitcoin on their website. You don't trust Mark Cuban. He's the best shark.
Bitcoin is the best performing asset of the last decade (better than S&P500).
Diversify your current portfolio.
It's not illegal in the USA.
You holding just one satoshi slightly limits the supply and can rise the price for everyone else.
[In late 2019] hash rate is the highest it has ever been
Suicide insurance; if Bitcoin rises in price there is no worse feeling than regret.
Some of the smartest people in computer science and cryptography are working on it. Trust nerds.
Look at the all time historical chart. No technical analysis just tell me what you think when you look at it.
Money is a belief system... and I want to believe.
Transparent ledger, no funny business going on it's easy to audit.
Elon Musk appears to be a fan. How's that for an appeal to authority
There is a fixed limit in the number of bitcoins that will exist. 21 million bitcoin, 7 billion people on earth. Do the math.
There are so many examples of governments inflating their currency to the point where it becomes unusable. Read the wikipedia page for Venezuela or Zimbabwe.
Altcoins make sacrifices in either security or centralization. There are altcoins out there that claim to be innovating but just check the scoreboard nothing has flipped Bitcoin in market value or even gotten close.
With technology developing at a rate faster than law, governments and for-profit businesses have the ability to monitor our purchases, location, our habits, and all of this has happened without consent. People made jokes and conspiracy theory, but sometimes conspiracy is real. Most people are good, but there is absolutely evil out there. There are absolutely evil people in positions of power. There are absolutely evil people that work together in positions of power. Does anyone actually believe that Jeffrey Epstein committed suicide. Go read about Leslie Wexner. Go read the cypherpunk manifesto.
The upcoming halvening in 2020 will reduce the number of Bitcoin created in each block, making them more scarce, and if history repeats more valuable.
Bitcoin has lower fees than traditional banking.
Gold has the advantage of being a physical thing. But unlike gold you know Bitcoin is not forged, or mixed with another metal, and you can easily break it into tiny pieces and send it over the internet to someone.
Bitcoin could spark new interests maybe you start to read more into economics, computer science, or Brock Pierce.
Bitcoin has survived with no leader, marketing team, public relations, or legal team.
Because Wired magazine said Bitcoin was dead at $2, Forbes said it was dead at $15, NY Times at $208, and CNN at $333.
Just do a cost benefit analysis. What happens if Bitcoin fails and it goes to zero vs. what happens if it succeeds, and becomes world money.
Bitcoin encourages long term thinking, planning, saving. Due to inflation we are punished by holding on to cash. Look up the statistics on the average savings account while we are bombarded with consumerist bullshit like Funko pop heads, Loot crate subscription services, and new syrup flavors for coffee. Currently we are encouraged to spend now, seek immediate gratification, and ignore what we are becoming as Amazon picks out our clothes and toothpaste ships it to the house and we sit and watch streaming services where content is pushed to us and I'm supposed to buy that this garbage is actually “trending”. Our lives have become so comfortable that idiots spend $60 to escape a room and have someone take your picture when you get out. What would our ancestors think.
Maybe you're a day trader looking to use a trading bot in an unregulated market.
Bitcoin has 7 letters in it. Lucky number 7.....
Bitcoin promises to bank the unbanked, and provide services to those not otherwise “qualified” to open a bank account.
It's just cool, don't you want to seem smart to all your friends.
The origin story is so nuts there's going to be a movie or several movies about the early days of Bitcoin. Satoshi Nakamoto remains anonymous to this day. Imagine if the inventor of the cell phone was anonymous.
If you have money to burn, don't buy soda, weed, or some girls private snapchat it's a dead end put it towards Bitcoin and give it to your child in the future.
To avoid getting ripped off by foreign exchange fees just because you were born one place and your friends were born in another place.
Can't live off the grid in your log cabin and still use Mastercard. Bitcoin is one piece of opting out.
If one country adopts BTC as the national currency, it doesn't take much thought to realise that others will follow.
Join a welcoming and unique community. Everyone is super nice because they want your money.
You can stick it to the baby boomers.
You can stick it to the vegans.
You can stick it Roger Ver.
Maybe your IQ is 70 and you'll do whatever CNBC Fast Money recommends.
Maybe a hacker infects your computer, records you doing that thing, and threatens to release the tape if you do not pay them 1.5 Bitcoin.
You're a risk taker looking for some risky investment.
Aliens attack like Independence Day, blow up major cities in major countries, your money is still safe with Bitcoin. As long as there is a some guy, some person, living on an island with a copy of the ledger out there on your'e good. We're all good.
Many proposals to scale the number of transactions, may the best plan win.
One day you might have to use BTC to pay taxes, buy food, and charge your Tesla.
You want to support a political group and remain private.
You can trust math more than you can trust people to set an emission rate.
Government don't know how much you have.
The first response to Bitcoin being published by Hal Finney stated that Bitcoin was positioned to reach million dollar valuation. Hal was the first bull and passed away in 2014, missing a lot #doitforHal.
Baddies can't freeze your money if they mad at you.
The Big Bang Theory mentioned it, maybe you want to be like Sheldon the bazinga guy.
Be contrarian. In a world where everyone zigs it's sometimes good to zag.
Don't have any hobbies, and you just need a reason to get up in the morning.
Enjoy learning? Bitcoin is a topic where there is so much to learn, and so much development, that it really becomes a never ending journey. For someone who likes learning, it's more productive than speedrunning a video game.
Yolo. You only live once. This isn't a dress rehearsal, if there's something your kind of interested in pursue it. That's true for anything not just Bitcoin. But if you're reading this I'm assuming you're interested.
Bitcoin is not a ponzi scheme. The difference is Bitcoin does not need new people buying in to work, blocks being added will continue even if the community stopped growing.
With religion on the decline maybe you want to join a cult. Crypto twitter is a great echo chamber to meet like minded people.
Satoshi Nakamoto found a way to distribute a global currency in a fair way with the ability to adjust the mining difficulty as we go, it's really incredible. You still need computers and electricity to mine new bitcoin today but it's an extremely fair way for people to earn. There was no premine of Bitcoin. Everyone who has Bitcoin either bought it at what the market said, or they earned it.
No CEO in charge of Bitcoin to make bad decisions or a board of directors that can make changes. The users, an ever growing number, are in charge.
Bitcoin has no days off, it has no workers in charge who can get sick or take a holiday.
Bitcoin has survived 10 years (and more). While there will always be dangers, I'd argue that those first few years it was most vulnerable to fail.
Have some trust in the cypherpunks. Anyone who held and didn't sell bitcoin as it went from pennies to five figures is not looking to get rich. They want to change the world.
Potential president Tulsi Gabbard disclosed owning some.
Digital money is the future, anyone who has tried Venmo can see that. Well Bitcoin is a digitally native asset.
Refugees can use Bitcoin to store their wealth as they flee a failing country.
Bitcoin is an open source project. Anthony Pompliano likes to call it a virus but I like how the author of the Bitcoin Standard describes it. Bitcoin is like a song. As long as one person remembers it you can't destroy a song.
Triple entry accounting. When humans first started recording who owes who what we had single-entry accounting. The king's little brother would keep everything written down, but we had to really trust this guy because he could simply erase a line and that money would be gone. When double-entry accounting started to spread 500 years ago it brought with it massive innovation. Businesses could now form relationships across the ocean as they each kept a record. We did not have innovation again until Satoshi's Bitcoin, where blockchain can be used as the neutral third party to keep record. It might not sound important but blockchain allows us to agree upon an objective reality.
Bitcoin is non-political.
Bitcoin is easy to accept. I mean kind of. It's certainly easier than setting up a bank account.
A sandwich used to cost 10 cents in America, I walk into Subway and they don't even have $5 foot longs anymore. Inflation man..
It's a peaceful protest.
Critics say that mining wastes electricity, but if Bitcoin adoption continues the world will actually be incentivized to produce more renewable energy. There are so many waterfalls and sources of energy in the middle of nowhere right now. People might not see a reason to build a power plant over there now, but in the future it can make business sense. Take that waterfall mine bitcoin, and sell them to the people who can't mine. It allows for a business to sell their energy anywhere.
Get into debates around Bitcoin, build those critical thinking skills.
“Predicting rain doesn't count, building arks does”
“The best time to plant a tree was 20 years ago, the second best time is now.”
"I never considered for one second having anything to do with it. I detested it the moment it was raised. It’s just disgusting. Bitcoin is noxious poison.”
The immaculate conception. No cryptocurrency can have a start the grassroots way Bitcoin did, it's just impossible given how the space has changed.
There are more than 1000x more U.S. dollars today than there were a hundred years ago.
Bitcoin is the largest transfer of wealth this decade from the least curious to the curious.
The concept of the Star Wars Cantina, Galt's Gulch, or young Beat Generation kids sitting in a basement smoking cigarettes and questioning the world can only exist if money remains fungible.
You can send money to your Dad even if he lives in a country run by bad boys.
Memorize your key, and walk around the world carrying your money in your head.
The Federal Reserve is objectively way too powerful.
John Mcafe promised that if bitcoins were not valued at 1 million dollars by the end of 2020 he would eat his own penis on national television. It will be a sad day if we don't hit that 1 million.
The Apple credit card.
If we ever get artificial intelligence it'll be able to interact with Bitcoin.
Katy Perry is aware of crypto so if by some chance you run into her, you get one chance to strike up conversation, so here's your chance to shine. You don't ask for a picture, you don't say she's pretty, or name your favorite song. Take your shot and ask about what type of cold storage she uses for her bitcoin.
Many people are afraid of a world currency because it's associated with a centralized world power taking control. Bitcoin allows for neutral world money.
Note: Previously the Evolution Whitepapers were linked in this section. These papers were written back in 2015 and are outdated, because Dash Evolution has seen a massive re-design and has been developed much further than those papers could have predicted. A new version will be posted here and elsewhere as soon as it is available.
"Dash rebranded from Darkcoin to distance itself from its dark history!!" -> Not at all. Nothing about its history is "dark" and more importantly this thread called "The Birth of Darkcoin" is stickied by Evan Duffield himself on the official main forum.
Why saying "Dash is a company" is false: Dash Core Inc., a company based in Scottsdale, Arizona is not the decentralized network called Dash. The network, consistent of over 4.5k globally distributed, decentralized Masternodes decided to hire and fund the company Dash Core Inc. to develop said network. This is the distinguishing property of Dash being a DAO, so it's understandable people have difficulty grasping the concept. Similarly Dash does not have a CEO, while Dash Core Inc. -obviously- has.
Dash does not and never had a "dev tax": Dash has a Treasury and its distribution is being voted on each month. Only those funds that have been approved by the Masternode network go to proposal owners. The Treasury is capped at 10% of the accumulated block reward of one month. There is no central authority non-requested or non-approved funds go to and there never has been. Those funds are simply not created. So you can have months in which only 8% of the budget is being paid out, with the remaining 2% going to nobody due to not being mined.
"B-but Evan Duffield can roll back the last 24 hours of the blockchain with the flick of a button!" Complete bullshit. The key in question refers to requiring a Masternode to re-validate its pre-existing blockchain in order to ensure it's on the right chain. Masternodes have nothing do with putting or removing transactions into or from the blockchain, only the miners can do that, thus claiming someone can "roll back the blockchain" in Dash is a malicious lie and a desperate attempt to make Dash look centralized when it's not. In short: No such button exists, ever existed or will ever exist.
The Dash community is well aware that during most of its history this project has been under attack by competitors, many of which are trying to portray Dash (among many other things) as a failure. This is oxymoronic, because nobody hates on failures, especially not for 4 successful years in a row. If you want a quick history lesson, here's a comment I made on where the Dash hate originated from back in 2014 Another, longer history lesson Remain skeptical towards sensational accusations without evidence. Our community is helpful, knowledgeable and more than happy to answer any questions, as we have done many times on this subreddit. Still, we're all only human, have limited resources and we're just one project among many (always among the top, though!). Stakeholders and investors of other projects will always have an agenda to smear what they perceive as competition (I have yet to see our community actively go after other projects, though). Just remember the Bullshit Asymmetry: "The amount of energy required to refute bullshit is at least an order of magnitude larger than to produce it." So it would be very unjust to expect a refutation on the spot all of the time. Prefer taking the initiative by asking the community directly about the claim you're confronted with. This community has proven many times to possess the integrity required to admit to technological shortcomings, but at the same time we'll never hesitate to call out illegitimate claims and accusations, of which there are many, for what they are. The most common and most empty attack is "Dash is a scam".
Dash has surpassed its all-time high price several times
Its developers are publicly known, many by full name
It's still being developed after almost 4 years with an incredible track record of under-promising and over-delivering, a game-changing roadmap & a clear vision of the future
Its technology works as advertised and remains objectively superior to Bitcoin and many other currencies
Myriads of projects copied Dash's features
Look at the wealth of in-depth information linked on this page alone. Look at all the interviews, articles, news shows, podcasts, presentations, conferences, infrastructure, the people and all the money invested into all of this: Does this all really look like a grandiose scam? Why the effort?
More importantly you have to ask the critic just this one question: Who was scammed? The answer usually consists of complete silence or attempts to change the topic. This may sound all very defensive to someone who has never experienced the kind of FUD Dash has faced over the years, but the falsehoods we've refuted above are still being perpetuated by a very lonely but also very loud minority.
Not an ICO project
Regarding Dash's finances: Despite what many people assume influenced by the ICO insanity of the recent past, Dash did not have an ICO and Dash does not depend on 3rd party funding/investors. It is self funded from the blockchain and thus an entirely independent organization that does exactly what it wants, not what any angel investors want us to do. Dash is the first currency in history to achieve that.
Quick incomplete rundown of Dash's features
In fact Dash pioneered almost every single one of its features making it one of the most prolific innovators in the cryptocurrency space. Before Dash invented them, none of these features existed:
X11: power saving hashing algorithm
Dark Gravity Wave: highly reliable difficulty adjustment
Sporks: Multi-phased forking technology avoiding hard forks during network upgrades
Masternodes: Incentivized full node infrastructure through split of mining reward
PrivateSend: protocol level coin mixing without the flaws of CoinJoin
Treasury: Self-funding by splitting of block reward
Blockchain Governance: Voting rights for those who provide our network's backbone
Evolution platform technology: Under heavy development but making rapid progress towards true digital cash so user-friendly that even your grandmother could use it
To re-iterate a previous point: Dash has been copied by several dozen other projects either completely or through selected features indicating a strong approval of its technology within the wider cryptocurrency industry. The most copied feature by far is the Masternode system and the financial self-reliance it provides.
GAW Miners - Liars, Frauds - A brief recap of what we know.
EDIT: I was asked by a GAW staff member to compile a list of questions the community has with/about GAW, Paybase, etc. Please provide any questions you have below and I'll have them forwarded EDIT 2: It seems Josh is working on answering the questions I've asked and compiled. We'll see what happens when answers are released. Hello, in the midst of this public uprising against GAW I'd like to present some facts for those of you who either: a. Don't know who/what "GAW" is and why they're a scam, b. Are brainwashed by Garza; those of you who genuinely believe in Paycoin and GAW Miners, c. Don't quite have all of the information. Note that I don't have every possible snippet of information out there, I'll just bring up some of the main points and complaints. Pre-GAW Ten months ago Garza was first introduced to the Bitcoin community in this post and this post.. From these posts we learn quite a bit of information regarding Garza's past; he offered false business deals to eBay sellers to partner with him. In the first article, we see that after he offered this couple "20% of his total profit" from his mining company and the couple asked for a reasonable counter-offer of $5k/month to pay their bills since they were unemployed, Garza filed a false Significantly Not As Described case on eBay, causing the couple to quite a bit of money and seriously affected their finances. The couple did some research about Garza and found this:
After looking at their old facebook profile, we saw that they were originally DirectTV salesman preying on small rural towns around New England offering people high-speed, internet and other telecom services that these people weren't able to get for whatever reason before. GAW was able to coerce MBI (Massachusetts Broadband Institute) to donate $40,000 to them for helping to bring services to everyone in the communities. Garza promised to build towers and other bullshit in these towns to help provide services, but they never did. At some point even when community leaders (one was David Kulp) repeatedly tried to get in touch with them, they never heard back.
So, it seems Garza has a knack for deceptive practices 'eh? Since the posts are so long and there's a lot to discuss, I'll let you read them and formulate your opinion on Garza. (Thanks to DidHeJust for the links to those threads). -Early Phases Originally, GAW showed NO proof of mining at all (not an address, block, pictures of mining hardware, pool usernames, nothing). Later on, during the Hashpoint 'mining' phase, he purchased 5 PH/s worth of mining equipment from Bitmaintech. For the short amount of time Paycoin was available for proof-of-work mining, there were tons of people renting mining rigs in order to get a cut of the "$20 Paycoins." Since the difficulty was fairly low, the prices per TH/s of these miners were very high, making it extremely easy to ROI on them. I'd be willing to bet that GAW rented out a lot of their hashpower for profit. They're currently selling the hardware they have left from this on oneminer.com. There was also a brief period of time where you were able to purchase hardware from GAW and have it point to a pool of your choosing; however, this didn't account for too large of a portion of the hashpower they claim to have sold. -Forums GAW Miners owns a forum created them them, Hashtalk. This forum is heavily censored; if you attempt to inquire about some of GAW's deceptive practices, broken promises, or Paycoin design you'll either be outright banned or shadow banned (your account will remain useable to you, but nobody will be able to see any of your posts). This led to this uncensored discussion thread on Bitcointalk. - Broken Promises Promise 1: *"Always Profitable"** GAW Miners claims that their Hashlets would always remain profitable and the $0.08 fee per MH/s would go down overtime. You know what GAW did instead? They kept their fees the same even when people were receiving only 1 satoshi. That's hardly profitable at all, as it's the minimum amount that they can really pay. So, they decided to move to mining Hashpoints for Paycoin (another broken promise, explained later). Promise 2: *"Paycoin would launch with a $20 floor"** This one is interesting. For the three months or so Hashpoint mining was available, Garza claimed that Paycoin would have a $20 floor (essentially that GAW would buy up any coin sold below $20 to keep the market place there or higher). Now, however, they've purged their censored forum of such claims so all that remains are screenshots as proof. Here's a few: https://i.imgur.com/YFXJiKB.png and https://i.imgur.com/HnotyMB.png Paycoin was traded at about $20 for a very brief period of time, but since then it's been dropping steadily, trading at just above $6/ea currently. Garza has done nothing to rectify the situation since. Promise 3: *Large merchant support on launch** From this thread we see that Garza promises that:
That’s right, you will be able to shop with Paycoin on the Amazon, Target, Walmart, Macy*s and Best Buy’s online stores.
A journalism website, coinfire.cf, contacted Amazon and the other companies claimed to be partnered with GAW. These companies all denied being affiliated with GAW, Amazon even threatened legal action if this continued. Once the article was published, the coinfire website was mysteriously hacked and the day after GAW threatened legal action. Read more about it here: https://coinfire.cf/2014/11/22/is-gaw-miners-lying-about-partnerships/ and http://www.scribd.com/doc/248372603/Coinfire-Cease-and-Desist -Censorship [Developing!!!] At the moment GAW is taking down videos they've posted where they've made a certain "statement" on their mining. -Paycoin Ah, Paycoin. An altcoin plagued by delays and broken promises. Originally set to launch at $20 per coin, falsely leading people into investing money into Hashpoint miners for profit. The things Josh is doing and has done to get people to use Paycoin are laughable, I'd consider it treason against the Bitcoin community. He purchased the domain btc.com for $1,000,000 only to have it redirect to Paybase. Fun stuff 'eh? He's also claimed that his coin would be better than Bitcoin, denouncing it in order to promote his own coin. From code snippets we've seen, Paycoin's "Prime Nodes," part of the PoS system to generate new coins, has the ability to generate coins at a 350% interest rate. These wallets/stakers/controllers/nodes are only able to be controlled by GAW, of course. The code:
Block 1. 12 million premine. 343,196 XPY mined during Proof of Work period. 343,196 - 56,889 = 286,307 XPY not mined by GAW Miners 12,343,196 XPY coins mined Total at the end of Proof of Work including pre-mine. 100 - (343196.0 / 12343196 * 100) = 97.22% Premined at the end of Proof of Work
It also seems like Garza stole the logo for Paycoin from https://www.gopago.com/. If you compare it with what's on https://paybase.com/ they're identical. -Current and Recent Events It's also known that there was a massive security/data breech during the Paybase launch, which allowed users to see other's balances and personal information https://coinfire.cf/2014/12/31/massive-security-breach-at-paybase/ which is being blamed on a "Cloudflare Caching Issue," however, that excuse makes very little sense. Currently, people are having trouble withdrawing their Paycoins from Paybase, which GAW is blaming on Authy. Authy's services are functioning fine for all other services, which leads us to believe that it isn't Authy's fault. When Hashtakers were sold, they would've only been really profitable at the $20 per Paycoin mark. With the current price people are losing money on their investment. Note: This is somewhat unfinished and I'd like to hear feedback on what I should add and revise.
From here... https://bitcointalk.org/index.php?topic=5006583.0 Questions. Chapter 1: Introduction 1. What are the main Bitcoin terms? 2. What is a Bitcoin address? 3. What is a Bitcoin transaction? 4. What is a Bitcoin block? 5. What is a Bitcoin blockchain? 6. What is a Bitcoin transaction ledger? 7. What is a Bitcoin system? What is a bitcoin (cryptocurrency)? How are they different? 8. What is a full Bitcoin stack? 9. What are two types of issues that digital money have to address? 10. What is a “double-spend” problem? 11. What is a distributed computing problem? What is the other name of this problem? 12. What is an election? 13. What is a consensus? 14. What is the name of the main algorithm that brings the bitcoin network to the consensus? 15. What are the different types of bitcoin clients? What is the difference between these clients? Which client offers the most flexibility? Which client offers the least flexibility? Which client is the most and least secure? 16. What is a bitcoin wallet? 17. What is a confirmed transaction and what is an unconfirmed transaction? Chapter 2: How Bitcoin works. 1. What is the best way to understand transactions in the Bitcoin network? 2. What is a transaction? What does it contain? What is the similarity of a transaction to a double entry ledger? What does input correspond to? What does output correspond to? 3. What are the typical transactions in the bitcoin network? Could you please name three of such transactions and give examples of each type of the transaction? 4. What is a QR and how it is used in the Bitcoin network? Are there different types of QRs? If so, what are the different types? Which type is more informational? What kind of information does it provide? 5. What is SPV? What does this procedure check and what type of clients of the Bitcoin network usually use this procedure? Chapter 3: The Bitcoin client. 1. How to download and install the Core Bitcoin client? 2. What is the best way to test the API available for the Core Bitcoin client without actually programming? What is the interface called? 3. What are the major areas of operations in the Bitcoin client? What can we do with the client? 4. What are the available operations for the Bitcoin addresses? 5. What are the available read operations for the Bitcoin transactions? How is a transaction encoded in the Bitcoin network? What is a raw transaction and what is a decoded transaction? 6. If I want to get information about a transaction that is not related to any address in my own wallet, do I need to change anything in the Bitcoin client configuration? If yes, which option do I need to modify? 7. What are the available read operation for the Bitcoin blocks? 8. What are the available operations for the creation of the transactions in the Bitcoin network? 9. How do you normally need to address the unspent output from the previous transaction in order to use it as an input for a new transaction? 10. What is the mandatory operation after creating a new transaction and before sending this new transaction to the network? What state does the wallet have to be in order to perform this operation? 11. Is the transaction ID immutable (TXID)? If not why, if yes, why and when? 12. What does signing a transaction mean? 13. What are the other options for Bitcoin clients? Are there any libraries that are written for some specific languages? What types of clients do these libraries implement? Chapter 4: Keys, Addresses and Wallets. 1. What is a PKC? When it was developed? What are the main mathematical foundations or functions that PKC is using? 2. What is ECC? Could you please provide the formula of the EC? What is the p and what is the Fp? What are the defined operations in ECC? What is a “point to infinity”? 3. What is a Bitcoin wallet? Does this wallet contain coins? If not, what does it contain then? 4. What is a BIP? What it is used for? 5. What is an encrypted private key? Why would we want to encrypt private keys? 6. What is a paper wallet? What kind of storage it is an example of? 7. What is a nondeterministic wallet? Is it a good wallet or a bad wallet? Could you justify? 8. What is a deterministic wallet? 9. What is an HD wallet? 10. How many keys are needed for one in and out transaction? What is a key pair? Which keys are in the key pair? 11. How many keys are stored in a wallet? 12. How does a public key gets created in Bitcoin? What is a “generator point”? 13. Could you please show on a picture how ECC multiplication is done? 14. How does a private key gets created in Bitcoin? What we should be aware of when creating a new private key? What is CSPRNG? What kind of input should this function be getting? 15. What is a WIF? What is WIF-Compressed? 16. What is Base58 encoding and what is Base58Check encoding? How it is different from Base64 encoding? Which characters are used in Base58? Why Base58Check was invented? What kind of problems does it solve? How is Base58Check encoding is created from Base58 encoding? 17. How can Bitcoin addresses be encoded? Which different encodings are used? Which key is used for the address creation? How is the address created? How this key is used and what is the used formula? 18. Can we visually distinguish between different keys in Base58Check format? If yes, how are they different from each other? What kind of prefixes are used? Could you please provide information about used prefixes for each type of the key? 19. What is an index in HD wallets? How many siblings can exist for a parent in an HD wallet? 20. What is the depth limitation for an HD wallet key hierarchy? 21. What are the main two advantages of an HD wallet comparing to the nondeterministic wallets? 22. What are the risks of non-hardened keys creation in an HD wallet? Could you please describe each of them? 23. What is a chain code in HD wallets? How many different chain code types there are? 24. What is the mnemonic code words? What are they used for? 25. What is a seed in an HD wallet? Is there any other name for it? 26. What is an extended key? How long is it and which parts does it consist of? 27. What is P2SH address? What function are P2SH addresses normally used for? Is that correct to call P2SH address a multi-sig address? Which BIP suggested using P2SH addresses? 28. What is a WIF-compressed private key? Is there such a thing as a compressed private key? Is there such a thing as a compressed public key? 29. What is a vanity address? 30. What is a vanity pool? 31. What is a P2PKH address? What is the prefix for the P2PKH address? 32. How does the owner prove that he is the real owner of some address? What does he have to represent to the network to prove the ownership? Why a perpetrator cannot copy this information and reuse it in the next transactions? 33. What is the rule for using funds that are secured by a cold storage wallet? How many times you can send to the address that is protected by the private key stored in a cold storage? How many times can you send funds from the address that is protected by the private key stored in a cold storage? Chapter 5: Transactions. 1. What is a transaction in Bitcoin? Why is it the most important operation in the Bitcoin ecosystem? 2. What is UTXO? What is one of the important rules of the UTXO? 3. Which language is used to write scripts in Bitcoin ecosystem? What are the features of this language? Which language does it look like? What are the limitations of this language? 4. What is the structure of a transaction? What does transaction consists of? 5. What are the standard transactions in Bitcoin? How many standard transactions there are (as of 2014)? 6. What is a “locking script” and what is an “unlocking script”? What is inside these scripts for a usual operation of P2PKH? What is a signature? Could you please describe in details how locking and unlocking scripts work and draw the necessary diagrams? 7. What is a transaction fee? What does the transaction fee depend on? 8. If you are manually creating transactions, what should you be very careful about? 9. Could you please provide a real life scenario when you might need a P2SH payment and operation? 10. What is the Script operation that is used to store in the blockchain some important data? Is it a good practice? Explain your answer. Chapter 6: The Bitcoin Network. 1. What is the network used in Bitcoin? What is it called? What is the abbreviation? What is the difference between this network architecture and the other network architectures? Could you please describe another network architecture and compare the Bitcoin network and the other network architectures? 2. What is a Bitcoin network? What is an extended Bitcoin network? What is the difference between those two networks? What are the other protocols used in the extended Bitcoin network? Why are these new protocols used? Can you give an example of one such protocol? What is it called? 3. What are the main functions of a bitcoin node? How many of them there are? Could you please name and describe each of them? Which functions are mandatory? 4. What is a full node in the Bitcoin network? What does it do and how does it differ from the other nodes? 5. What is a lightweight node in the Bitcoin network? What is another name of the lightweight node? How lightweight node checks transactions? 6. What are the main problems in the SPV process? What does SPV stand for? How does SPV work and what does it rely on? 7. What is a Sybil attack? 8. What is a transaction pool? Where are transaction pools stored in a Bitcoin network client? What are the two different transaction pools usually available in implementations? 9. What is the main Bitcoin client used in the network? What is the official name of the client and what is an unofficial name of this client? 10. What is UTXO pool? Do all clients keep this pool? Where is it stored? How does it differ from the transaction pools? 11. What is a Bloom filter? Why are Bloom filters used in the Bitcoin network? Were they originally used in the initial SW or were they introduced with a specific BIP? Chapter 7: The Blockchain. 1. What is a blockchain? 2. What is a block hash? Is it really a block hash or is it a hash of something else? 3. What is included in the block? What kind of information? 4. How many parents can one block have? 5. How many children can one block have? Is it a temporary or permanent state of the blockchain? What is the name of this state of the blockchain? 6. What is a Merkle tree? Why does Bitcoin network use Merkle trees? What is the advantage of using Merkle trees? What is the other name of the Merkle tree? What kind of form must this tree have? 7. How are blocks identified in the blockchain? What are the two commonly used identities? Are these identities stored in the blockchain? 8. What is the average size of one transaction? How many transactions are normally in one block? What is the size of a block header? 9. What kind of information do SPV nodes download? How much space do they save by that comparing to what they would need if they had to download the whole blockchain? 10. What is a usual representation of a blockchain? 11. What is a genesis block? Do clients download this block and if yes – where from? What is the number of the genesis block? 12. What is a Merkle root? What is a Merkle path? Chapter 8: Mining and Consensus. 1. What is the main purpose of mining? Is it to get the new coins for the miners? Alternatively, it is something else? Is mining the right or good term to describe the process? 2. What is PoW algorithm? 3. What are the two main incentives for miners to participate in the Bitcoin network? What is the current main incentive and will it be changed in the future? 4. Is the money supply in the Bitcoin network diminishing? If so, what is the diminishing rate? What was the original Bitcoin supply rate and how is it changed over time? Is the diminishing rate time related or rather block related? 5. What is the maximum number of Bitcoins available in the network after all the Bitcoins have been mined? When will all the Bitcoins be mined? 6. What is a decentralized consensus? What is a usual setup to clear transactions? What does a clearinghouse do? 7. What is deflationary money? Are they good or bad usually? What is the bad example of deflationary spiral? 8. What is an emergent consensus? What is the feature of emergent consensus? How does it differ from a usual consensus? What are the main processes out of which this emergent decentralized consensus becomes true? 9. Could you please describe the process of Independent Transaction Verification? What is the list of criteria that are checked against a newly received transaction? Where can these rules be checked? Can they be changed over time? If yes, why would they be changed? 10. Does mining node have to be a full node? If not, what are the other options for a node that is not full to be a mining node? 11. What is a candidate block? What types of nodes in the Bitcoin network create candidate blocks? What is a memory pool? Is there any other name of the memory pool? What are the transactions kept in this memory pool? 12. How are transactions added to the candidate block? How does a candidate block become a valid block? 13. What is the minimum value in the Bitcoin network? What is it called and what is the value? Are there any alternative names? 14. What is the age of the UTXO? 15. How is the priority of a transaction is calculated? What is the exact formula? What are the units of each contributing member? When is a transaction considered to be old? Can low priority transactions carry a zero fee? Will they be processed in this case? 16. How much size in each block is reserved for high priority transactions? How are transactions prioritized for the remaining space? 17. Do transactions expire in Bitcoin? Can transactions disappear in the Bitcoin network? If yes, could you please describe such scenario? 18. What is a generation transaction? Does it have another name? If it does, what is the other name of the transaction? What is the position of the generation transaction in the block? Does it have an input? Is the input usual UTXO? If not – what is the input called? How many outputs there are for the generation transaction? 19. What is the Coinbase data? What is it currently used for? 20. What is little-endian and big-endian formats? Could you please give an example of both? 21. How is the block header constructed? Which fields are calculated and added to the block header? Could you please describe the steps for calculation of the block header fields? 22. What is a mantissa-exponent encoding? How is this encoding used in the Bitcoin network? What is the difficulty target? What is the actual process of mining? What kind of mathematical calculation is executed to conduct mining? 23. Which hash function is used in the Bitcoin mining process? 24. Could you describe the PoW algorithm? What features of the hash function does it depend on? What is the other name of the hash function? What is a nonce? How can we increase the difficulty of the PoW calculation? What do we need to change and how do we need to change this parameter? 25. What is difficulty bits notation? Could you please describe in details how it works? What is the formula for the difficulty notation? 26. Why is difficulty adjustable? Who adjusts it and how exactly? Where is the adjustment made? On which node? How many blocks are taken into consideration to predict the next block issuance rate? What is the change limitation? Does the target difficulty depend on the number of transactions? 27. How is a new block propagated in the network? What kind of verification does each node do? What is the list of criteria for the new block? What kind of process ensures that the miners do not cheat? 28. How does a process of block assembly work? What are the sets of blocks each full node have? Could you please describe these sets of blocks? 29. What is a secondary chain? What does each node do to check this chain and perhaps to promote it to the primary chain? Could you please describe an example when a fork occurs and what happens? 30. How quickly forks are resolved most of the time? Within how many new block periods? 31. Why the next block is generated within 10 minutes from the previous? What is this compromise about? What do designers of the Bitcoin network thought about when implementing this rule? 32. What is a hashing race? How did Bitcoin hashing capacity has changed within years from inception? What kind of hardware devices were initially used and how did the HW utilization evolved? What kind of hardware is used now to do mining? How has the network difficulty improved? 33. What is the size of the field that stores nonce in the block header? What is the limitation and problem of the nonce? Why was an extra nonce created? Was there any intermediate solution? If yes, what was the solution? What are the limitations of the solution? 34. What is the exact solution for the extra nonce? Where does the new space come from? How much space is currently used and what is the range of the extra nonce now? 35. What is a mining pool? Why was it created? How are normally such pools operated? Do they pay regularly to the pool participants? Where are newly created Bitcoins distributed? To which address? How do mining pools make money? How do the mining pools calculate the participation? How are shares earned calculated? 36. What is a managed pool? How is the owner of the pool called? Do pool members need to run full nodes? Explain why or why not? 37. What are the most famous protocols used to coordinate pool activities? What is a block template? How is it used? 38. What is the limitation of a centralized pool? Is there any alternative? If yes, what is it? How is it called? How does it work? 39. What is a consensus attack? What is the main assumption of the Bitcoin network? What can be the targets of the consensus attacks? What can these attacks do and what they cannot do? How much overall capacity of the network do you have to control to exercise a consensus attack? Chapter 9: Alternative Chains, Currencies and Applications. 1. What is the name of alternative coins? Are they built on top of the Bitcoin network? What are examples of them? Is there any alternative approach? Could you please describe some alternatives? 2. Are there any alternatives to the PoW algorithm? If yes – what are the alternatives? Could you please name two or three? 3. What is the operation of the Script language that is used to store a metadata in Bitcoin blockchain? 4. What is a coloured coin? Could you please explain how it is created and how it works? Do you need any special SW to manage coloured coins? 5. What is the difference between alt coins and alt chains? What is a Litecoin? What are the major differences between the Bitcoin and Litecoin? Why so many alt coins have been created? What are they usually based on? 6. What is Scrypt? Where is it used and how is it different from the original algorithm from which it has been created? 7. What is a demurrage currency? Could you please give an example of one blockchain and crypto currency that is demurrage? 8. What is a good example of an alternative algorithm to PoW? What is it called and how is it different from the PoW? Why the alternatives to Bitcoin PoW have been created? What is the main reason for this? What is dual-purpose PoW algorithms? Why have they been created? 9. Is Bitcoin “anonymous” currency? Is it difficult to trace transactions and understand someone’s spending habits? 10. What is Ethereum? What kind of currency does it use? What is the difference from Bitcoin? Chapter 10: Bitcoin security. 1. What is the main approach of Bitcoin security? 2. What are two common mistakes made by newcomers to the world of Bitcoin? 3. What is a root of trust in traditional security settings? What is a root of trust in Bitcoin network? How should you assess security of your system? 4. What is a cold storage and paper wallet? 5. What is a hardware wallet? How is it better than storing private keys on your computer or your smart phone?
https://preview.redd.it/mae9pkm76ya21.png?width=700&format=png&auto=webp&s=185dbee1cacb7fa67508f3ba60d83a5ecab879e0 NEM is the world’s first “Smart Asset” blockchain. Built with businesses in mind, NEM is a world class platform designed to offer a streamlined method to maintain a secure ledger of transactions. NEM’s blockchain technology offers the potential to drastically simplify an enormous variety of secure ledger and transaction tracking systems. It provides an adaptable API interface that can be used with any programming language. Designed with modular customization in mind, NEM can be used for almost any application thanks to its “Smart Asset System”. As of October 2017, NEM is the 7th largest cryptocurrency in the world, with a market cap of nearly 2 billion.
History of NEM
NEM was launched on March 31, 2015 with the currency symbol XEM. The code was written in Java from scratch, as opposed to most other cryptocurrencies which were ‘forked’ off of existing codes and then later altered. NEM’s origins date back to January 2014, when an open call for participation in a Bitcointalk forum called for a community-oriented cryptocurrency to be created from the ground up. The project saw 1,500 early investors buying XEM stakes, where 1 stake was equivalent to 2.25 million XEM coins.
What does NEM do?
NEM’s primary function is the implementation of what they call the “Smart Asset System”. In effect, this system gives users the ability to implement a customized blockchain for their own specific “smart contract”. So what exactly does “Smart Asset System” mean? Smart Assets are a way of describing the tools NEM uses to handle business data. “Smart Assets” give you the power to use NEM as if it were a custom blockchain built to handle your assets. The “Smart Asset System” can be broken down into four components:
Addresses: Containers that hold coins, contracts, deeds, or any business records. These are items which are unique and can be updated. These containers could be something simple like a user’s account full of coins, or something more complex like a package to be shipped, a deed to a house, or a document to be notarized.
Mosaics: Custom tokens or other digital items. These could represent something like a coin, or items such as stock shares, reward points or even other currencies.
Namespaces: Web addresses that prove who you are and also give your assets a home. They let you create a unique place to put your assets on the NEM blockchain, thus making your assets unique, easy to use and trustable.
Transactions: Puts your ‘Smart Assets’ into play by allowing you to complete actions such as transferring Mosaics between Addresses or transferring and configuring ownership of Addresses.
NEM has provided a list of potential use cases for their ‘Smart Asset System’. Some uses include: voting, crowdfunding, stock ownership, keeping secure records, loyalty rewards point programs, mobile payments and escrow services. Many of these are large global industries in themselves which highlights just how huge the potential NEM customer base is. As described in NEM’s whitepaper, NEM is designed to be a customizable blockchain-based technology used for business purposes. Because NEM’s software is so adaptable, the potential uses are nearly endless. For example, smart contracts can be used as central ledger software for banks, keeping track of transactions by investment companies, or storing and sending government documents such as birth certificates. Unlike Bitcoin or Litecoin, NEM is not intended to be used as a currency. In addition to the “Smart Asset System”, NEM is one of the most secure and easiest coins to use if you want to create your own coin and offer an ICO to raise funds for a startup. According to NEM:
NEM’s approach is to let developers use a wide range of combinable functionalities which let them build powerful applications based on a closed set of atomic operations, and opens the network to almost any technological combination
Why Use NEM?
NEM Has A Low Transaction Fee of 0.01%
NEM utilizes a new code designed for transaction efficiency. XEM transactions take about 6 seconds to show up and about 20 seconds to confirm. On the other hand, Bitcoin can take up to an hour or more to confirm transactions. Fees to transmit assets via the public blockchain (coins, documents, etc) are very low. Currently the transaction fee is only 0.01%. This means it costs $0.01 to send $100 worth of coins and $0.10 to send $1,000. In comparison, credit cards charge anywhere from 1.5 to 3% and Paypal charges 2.6%. NEM’s 0.01% transaction fee is low even compared to other cryptocurrencies!
NEM Is Very Scalable
NEM is incredibly scalable. Currently NEM has transaction speeds comparable to Bitcoin, however when the planned updates go into effect the network could handle in the hundreds if not thousands of transactions per second. In comparison, Bitcoin is only able to handle 4–5 transactions per second. This has been a huge problem for Bitcoin and is a factor which has led to the Bitcoin currency being split into two (and soon three) different currencies. If NEM isn’t meant to be used as a currency, then why care about trading coins? The truth is: you still need the coins. In future, if companies use NEM software, they will eventually need to send their “Smart Assets” to various places. This will require sending the documents across the public NEM blockchain. Sending documents will require the company to pay a transaction fee, which can only be paid for in XEM (NEM’s coin). In that respect, potential investors could see gains on their investment if companies begin to adopt NEM’s software. Since there is a set number of XEM coins (9 billion), as the demand for these coins increases, so will their value.
NEM Uses Unique Harvesting Methods
For those interested in harvesting some coins for yourself, NEM is one of most lucrative coins around (as opposed to themining processes used by other coins). NEM uses unique methods ofProof of Importance (POI) andDelegated Harvesting to award coins. When a block is harvested, it confirms the transaction in the block, adds it to the blockchain permanently and then rewards the transactions fees from that block to the harvester. A user’s POI determines who actually harvests a block, which is governed by three factors:
The user’s vested stake or if the coins have been in their account for a number of days
The user’s transaction partners or if the users are making transactions with others in the network
The number and size of transactions in the last 30 days
Delegated Harvesting is an efficient way to pool account power without exposing any private keys, which yields some benefits. For instance, your computer doesn’t even have to be running to harvest and harvesting is done automatically for anyone with over 10,000 vested XEM in their accounts. These revolutionary methods implemented by NEM have leveled the playing field and gives power to users, not to hoarders or mining farmers.
What Sets NEM Apart From Other Cryptocurrencies
NEM is 100% traceable
NEM’s traceability is one big differentiating factor. Unlike its competitors such as Monero, there are no ‘private transactions’ on NEM. Although many in the cryptocurrency community consider this a negative, it has some advantages. For one, traceability will allow security features such as buyer and seller protection to be implemented. This is one of the reasons NEM is a very secure coin. To date, there has been no major security issues. NEM also allows businesses to track spending habits, a feature that is useful and may attract more businesses to use it in future.
NEM Uses Less Power
NEM uses 100 times less power than Bitcoin to run a node or harvest. This is why NEM’s transaction fees cost only a fraction of some of its competitors.
NEM Is Not Subject To Inflation
Another great thing about NEM is that all of the coins (8,999,999,999 to be exact) have already been created. This means that there is zero inflation. For most other coins such as Bitcoin or Litecoin, the mining process is still actively putting new coins into circulation, which will lead to some inflation.
NEM Does Not Focus On Retail Use
One thing you do not see NEM focusing on is coin price or retail use. Many cryptocurrencies focus on the coins themselves, but NEM is much more focused on the platform and the development community to try to create new apps for the platform. NEM’s President Lon Wong has stated:
“It Might Be exciting to see quick price gains due to marketing and speculation, but the long term winners will be those with consumer and enterprise adoption”
Competitors and Challenges
NEM has a few big competitors such as Ripple,Factom,Ubiq. Most notable is Ethereum, the 2nd largest cryptocurrency in the world with a current market cap of nearly 30 billion dollars. Compared to its competitors, NEM seems to be a more stable choice for building new applications with support for real business models. Its security and development features allow blockchain entrepreneurs to focus on relevant problems and not technical difficulties. Its learning curve is also much smoother than that of Ethereum. One of the biggest challenges NEM has is getting people to understand what it does. Typically, coins such as Litecoin are designed to be used like fiat currencies. However, XEM coins aren’t meant to be used as currency, but a transactional platform for businesses and developers. Another challenge for NEM is growing the pool of developers who have the knowledge to connect NEM to existing company networks. Luckily, NEM’s API is relatively easy to integrate with legacy networks. They have also been putting a lot of effort into growing a new wave of developers who can support their system. NEM has opened the first blockchain center in Kuala Lumpur, Malaysia. The center is meant to serve as an incubator, accelerator and co-working space. They are clearly dedicated to promoting their product but also supporting the blockchain community as a whole.
Looking at the diverse business functions that NEM can perform, it is clear that there is a large potential customer base. In addition to NEM’s current advantages, NEM plans to release the Catapult software this year which will add even more improvements to its current Mijin software. This will only put NEM further ahead of its competition. Developers at NEM are also actively working to make their product better and better. NEM has an excellent development team, strong community support, a robust blog, good incentives and a solid business plan.
Of Wolves And Weasels - Day 22 - A New Chapter Begins
Hey all! GoodShibe here, This is an exciting time for Dogecoin right now - I mean outside of all the new shibes flooding into this sub - we're starting to do something that very few coins have managed: A legal, direct exchange from DOGE to USD/CAD currency and back. This is happening, starting today, over at Vault of Satoshi. Yes, there are some hurdles to jump through - legal stuff, mostly - but it's there and it's up. It exists. Not only does this show an incredible amount of confidence in our currency -- it's a lot of work to even start to put together an exchange from USD/CAD to cryptos -- but considering that our currency is only around 7 Weeks old that tells you exactly how hard we've all been working. Every tip to a new user, every funny little Dogecoin meme, every $20 ad tossed up on Reddit, every act of compassion and charity - little by little we're bringing people to us, our confidence and compassion and flat-out sense of fun is infectious. In a time of world turmoil, of uncertainty, we're still doing what we do best -- and people want to be a part of that. This is a HUGE victory for us. It's also an important victory for us in another sense, as it allows us to begin the process of detaching ourselves, at least partially, from Bitcoin. This is both good and bad in that when Bitcoin rises, historically, we've gone with them -- and when they fall, so to do we. We're not cutting the cord entirely, but considering that the main way to get DOGE has been buying BTC and converting it to DOGE through an exchange, this will allow us to forego one major step in the chain. And as more and more exchanges start to come on board, allowing us to move freely to and from DOGE, this cord may even end up being cut entirely. Meaning we'll be on our own. If that's not both exhilarating and scary as heck, I don't know what is. But it's coming down the pipe. And maybe sooner than we think. The timing also works well because of the level of FUD (Fear, Uncertainty and Doubt) going around in Bitcoin as of late. Yes, on the surface, everything's fine - they've been getting great adoption rates lately and really are doing quite well (and I wish them well). But there's a general uncertainty building thanks to articles like this: Mega Default In China Scheduled For January 31 Additional Sources Confirm China’s Payment Processor Ban, Bitcoin Price Falls $200 Now, yes, these articles are around/over a month old, but both articles -- being from reputable sources -- say one very important point: On January 31st, Chinese New Year, the People's Republic of China will be closing all 3rd party payment processors. This further limits people's ability to exchange - and use - Bitcoin in China. Bitcoin's greatest rise and fall was because of the influx of -- and outpouring of -- Chinese investors last year and the sting, while mostly healed, can still be felt in stories like this. And rightly so, it was one heck of a sting. You see, when the Chinese Government put regulations on Bitcoin, a lot of investors panicked - thinking that Bitcoin was being outright banned (which was wholly untrue). That panic fed into a massive campaign of fear and disinformation, causing... well, pretty much a mass hysteria, leading to investors ditching the currency almost as fast as they'd bought it up... and that caused a severe and violent crash. Now, granted, this move has been telegraphed for a very long time (over a month now) so it should be no surprise and that when the 31st hits, those who wanted out will have already gotten out. But there's still that sense of uncertainty, wondering exactly how smooth the transition will be. For Dogecoin, a decent chunk of our growth has been from Bitcoiners looking to diversify their portfolios, looking to protect themselves from these sorts of general gloom and doom scenarios that push their currency down. Hopefully, once the 31st passes with a smooth transition, BTC will start its climb again. But for Dogecoin, having these exchange options open to us, it can and will insulate our currency from these sorts of issues. The biggest problem was that Bitcoin was entering a market where the Government hadn't yet decided what to do about Cryptocurrencies - so all eyes were focused on what the PRoC were going to do about it. Which, again, created uncertainty. Seeing how Bitcoin blew up like it did, and how China has a history of knocking down things when they get too big on their own (see QQ China's first uber-successful virtual currency) it all makes sense... in hindsight (20/20 vision being what it is and all). The good thing about Dogecoin is that we're being exchanged in a market that has already made themselves pretty clear about how they feel about cryptocurrencies - Canada treats them like a commodity - which should help protect us, barring a sudden change of attitude/regulation from the Canadian Government. All-in-all, this is truly the start of something huge for Dogecoin. Not only is this a severe blow to scammers (which, as mod of /Dogecoinscamwatch, fills me with endless amounts of joy) but a lot of eyes will be watching VoS, and if they start making money - good money - others will jump in to grab a slice of that pie (which will further help stabilize our DOGEs). And that's why NOW is the time to capitalize on it. We need to get more outreach efforts off the ground, more charitable responses. I'll be donating 20,000 DOGE (10K from me, 10K from ericnakagawa) - on top of the 5K I've already given - to BellLetsTalk on Twitter, a campaign to raise awareness for Mental Health. They don't take Dogecoins, but hopefully, when they see that there's a decent amount of them coming in, they'll be amenable to it. Money is money is money, right? Especially now that they can exchange those cryptos on Vault of Satoshi and get their money's worth. Incidentally, that 15K Doge I'm donating is ENTIRELY from you. Your tips. What you've given to me, I am giving back in outreach. That 5K I gave to Notch, to try and get his attention (Which, sadly, it seems, did not work) was also from you. So far your tips have amounted to approximately 40,000 DOGE since I've started doing 'Of Wolves and Weasels' and I've been using most of that money on outreach, on tipping, and doing what I can to help spread the word. (I'm saving a bit for myself too, hope you don't mind :D) Let's keep on getting the word out there, folks! We're doing amazing things -- and even better things are waiting for us, just out there on the horizon. It's 8:38AM EST, we're at 38.65% of DOGEs found. Our Global Hashrate is down into a semi-stable ~77 Gigahashes per second - after a massive spike to ~224 very early this morning - and our Difficulty is falling from ~1070 to ~1011. Looks like another nice day to hit the mines, people! Let's get to it! :D) As always, I appreciate your support! GoodShibe EDIT: I've set up This Thread for anyone who'd still like to join in and make a donation to the BellLetsTalk fund, even though the big day has passed. Thank you all!
Here is a transcript from the Ripple Consensus Presentation (May 22nd)
https://www.xrpchat.com/topic/5203-ripples-big-demo-and-why-you-missed-the-big-deal/?do=findComment&comment=49659 MY TRANSCRIPTION... 0:19 PATRICK GRIFFIN: All right I think we're gonna get started. There's total capacity. People at the door - there's a little room over here inside. There's chairs here - there’s chairs over here don't be shy. All right in case you don't know this, you are in “XRP In Action,” a live demo and expert Q & A. I’m Patrick Griffin [with] David Schwartz and Stefan Thomas. We've got an hour today. We'll walk you through, we’ll do a quick round of introductions. Stefan is going to do a demo. We have a self-guided Q&A where I basically tee up some questions for these guys that will all be softballs don't worry! Then we'll turn it over to you guys to ask questions for the technical experts. Maybe we'll do it the quick round of intros, starting with Stefan: 1:07 STEFAN THOMAS: Yeah so, my name is Stefan Thomas I am CTO with Ripple. Before Ripple I was involved with BitCoin for several years and now I work on the vision and technical direction for Ripple. 1:22 DAVID SCHWARTZ: My name is David Schwartz. I'm the chief cryptographer at Ripple. I’ve been working on Ripple since 2011 and public ledger tech. Before that I was working on cryptographic messaging systems and cloud storage for government and military applications. 1:35 PATRICK GRIFFIN: I am Patrick Griffin. I’m the head of business development. I don’t know why I’m up here, but there’s our CTO and our head of cryptography, but actually I think we are the, to be honest here, I think we are the, we are the one two and three first employees of Ripple. Well, two one and three. We've been here for quite some time and it's been a long journey. So why don't we first start off with the demo and I think I'll tee it up: This is a demo that demonstrates our technical our technology start of the inter ledger protocol, moving payments in and out of XRP and Stefan will do a better job of articulating what you are about to see. 2:22 STEFAN THOMAS: All right thanks Patrick. So here we're gathered to have a quick round table on XRP. I want to go through the demo pretty quickly so we can get to the actual discussion Q&A which I thin is the meat of this session. Basically, what we're trying to do at Ripple is we're trying to make money move like information. This has been our mission since day one, and it has never changed and so we're building a number of different technologies that all integrate to make this vision a reality. And so what we think about how information actually moves I think it's really it's really this chart that captures it. So what's happened is that the cost of moving information has really declined over the last couple decades and very strongly so. And as a result the volume of information that’s been moving has exploded. And so, very often you know, our customers will be talking to me about, you know: Oh are you focused on corporate payments? Are you focused on consumer payments? I think what you have to realize is that we're somewhere down here in that curve and so you know when you say like two-thirds of all payments are corporate payments you're really talking about two-thirds of almost nothing. I think what we're focused on is this growth that you can create if you increase the efficiency of the system enough. And so the way that we're kind of approaching that is we want to streamline the way that liquidity works today. So today you have 27 trillion dollars in float sitting around the world that is essentially there to facilitate real-time payments when the underlying systems are not real time. 3:59 STEFAN THOMAS: So, for instance, I swipe my credit card somewhere there has to be an actual creditor or money available to pay that merchant if that's supposed to happen instantly if the underlying money can't move in real time. And so that's been the case ever since we were using gold and fiat currencies in order to move money internationally, but with digital assets there's actually opportunity to improve upon that and actually move real assets in real time. So if you have something like XRP you don't need to pre-fund float all around the world. You can actually just have this digital asset and if you want to transfer value to somebody, you want to transfer value internationally, you can just transfer that asset and that moves instantly okay? 4:40 STEFAN THOMAS: So that's really the improvement. So with that I want to give you sort of a case example in a demo. This is something that already happens on blockchains today where there are money sources business that are using, businesses they're using block chain in order to move funds so they might sort of offer this as a service to small and medium businesses where if I want to let's say pay somebody in a different country I can go to one of these companies and they will move that money for me. 5:09 STEFAN THOMAS: So, in this example, we're kind of pretending that we're a publisher, we have a reporter in the field. and we’d like to pay them. And so, you know we don't really build apps, but we enable banks and other money service businesses to build apps on top of our platform. So this is kind of a mock-up that we’ve developed where, you can imagine, this would be just built into the the particular app of that company. And so I can basically pick any amount, so let’s say I want to send, say $7, and what happens is that you can see is that amount updates so what happens during that time is that we actually try to find the cheapest path from where the sender is to which are provided at the recipient uses and then once we found that cheapest path, we figure out what the exact cost is going to be, so we have that transparency upfront. What is the cost of this payment and this is all powered by the open source protocol InterLedger. Now, when I send this payment, it goes through right away. I don't have to wait for a ton of confirmations and so on. 6:11 STEFAN THOMAS: So let's talk a little bit about what is happening there in the background. So first, we basically look at the topology of the network and then we try to find a path. So say it found a path through XRP. Once we select the path, we basically send a code request to figure out what we think that cost is going to be and then we send the money through in two phases as per InterLedger Protocol, and that's enabled on XRP using a feature called escrow that we just launched earlier this year and so now XRP is it's fully InterLedger enabled. 6:50 STEFAN THOMAS: So, if we look at the kind of a cost calculation, this is kind of some fictional numbers but it's correct in terms of order of magnitude, right. So you have Bitcoin, you have Theory, we have XRP, we have Swift, and so our algorithm basically goes in and it tries to select the best option and so people often ask me like why does InterLedger help XRP? or why are you guys working on InterLedger as a completely neutral protocol when you actually have this vested interest in XRP? 7:18 STEFAN THOMAS: Well, because the reason is that XRP is right now by far the best digital asset but it's not being used as much as Bitcoin, for instance, and so in order to close that gap we want to get to a point where the selection of asset is kind of automated and you have algorithms to just pick the best one in which case, right now, XRP would get picked all the time. So that's why we have such a vested interest in just enabling more efficient selection. All right. So as you can see, it's the lowest fee right now and it’s the fastest turn right. 7:48 STEFAN THOMAS: Now, going a little bit further into the future, I was kind of talking about that huge explosion in volume and I think where that comes from is completely new user inter faces that we don't necessarily think about today. So one example would be, you have something like a publisher and a reader and a reporter and the reader is actually browsing an article and they're not having to sign up and go through a paywall in order to do that Their browser just pays them on their behalf automatically and then as a publisher I can see the money sort of coming in, in real time as users are browsing my website. And so you're basically providing the sort of metered access to your content. There's just one example. I think there's a lot of cases of APIs and other parts the industry that could benefit from micro-payments as a more granular way of transacting. So I don't have time to talk about that, but with that I hope you've got sort of a taste of both what XRP looks like today as well as what the future holds in terms of doing micro payments through payment channels, and so on, on InterLedger. So with that, I'll hand it over to Patrick to start the discussion. 9:00 PATRICK GRIFFIN: Very cool. So maybe it’s worth stepping back and also looking at our company strategy and having a conversation around what it means when we talk about an Internet of Value, which I think well this is a Silicon Valley company and for most people that doesn't mean a whole lot so maybe we can take a first stab at trying to explain what is an Internet of Value and Stefan, I’ll start with you. Actually, why don’t we start with David and give you a break. 9:24 DAVID SCHWARTZ: Yeah, so what is the Internet of Value and what are we working on? Well, the Internet has brought connectivity to billions of people around the world. They have smart phones. They have easy access to the movement of information but money is still siloed. It's still trapped in systems that don't talk to each other. Moving payments are expensive. They're slow. There's high friction. There's trillions of dollars that moves across borders and that's moved mostly by financial institutions, and we need to move that money more efficiently. We need to know where it is. We need to improve that flow. 10:02 DAVID SCHWARTZ: I don't know if any of you have made international payments or most of you have on traditional systems and you know that it's very hard to know where that money is. It’s very hard to know how much it's going to cost you ahead of time. The user experience is not great. A significant fraction of those payments fail. It takes several days. It's almost easier to ship money than it is to use our existing payment system. So we want to provide an Internet of Value where there is instant payment. Payment on demand, without failure. When you know ahead of time how much money is going to deliver. You know what path is going to take and because that transaction is set up using modern internet protocols you know ahead of time exactly what the requirements are at the destination so you don't have a failure because you didn't have the right information at the beginning. 10:45 STEFAN THOMAS: Yeah so um whenever I think of the Internet of Value, I think the number one thing that happened with the internet was that it kind of commoditized reach. So, before the Internet, if you wanted to be an online service provider like AOL or CompuServe the number one thing that you needed to have in order to be competitive is a lot of users. And if the main thing you're competing over is just having a lot of users it's very hard to get into that market for obvious reasons because you start out with zero users so how do you attract the first couple? But once you have something like the internet where all the different networks are actually tied together, suddenly the number of users you have is completely irrelevant, right? Because all of the networks are tied together you can reach all the websites, you can email all the people on the internet and so the competition has to be about something else and what does it become about? It becomes about about the efficiency of the system. 11:35: STEFAN THOMAS: And so, this fundamental transition has not happened with money yet. Like right now the the biggest consumer payment systems are things like Visa and MasterCard and they're very much competing on: We’re the biggest. We have the most merchants. We have the most customers, and so how are you going to compete with us, right? We would not even have to try to be efficient, necessarily, right? Because we're only competing with each other. It's very hard to get into that market, and so what we're trying to do with InterLedger, by creating an internet working protocol we're allowing you to go across multiple hops across multiple steps through the financial system and as a result you can tie a lot of smaller providers, a lot of smaller banks together and as a result make a system that’s much more competitive. 12:15: PATRICK GRIFFIN: I’ll just add my two cents in. I when I talk about the Internet of Value with customers it's typically the conversation on the cost and opportunities and for us you know, one of the analogies it's overused in the internet I think the Internet of Value, at least for me, is the function of bringing the marginal cost of payment processing down to as close to zero as possible. Now you can do that in one of two ways: Lower the cost of payment processing. Just for the sake of conversation these two things are 50/50. Payment processing: the messaging going between institutions and the cost of reconciling transactions as they go from one siloed network to another siloed network. Those are huge costs that the system currently bears just as a function of tracking down lost payments or fixing mistakes and broken transactions. 13:00 PATRICK GRIFFIN: Something like 12% of all international wires fail. That is an astonishing number if you come from Silicon Valley where you're typically used to five nines of reliability. The financial system isn’t working even with one nine of reliability. The other side of the equation so that it’s a processing function. We are able to achieve better processing by starting that sort of settlement layer, it’s a little bit academic, but then ultimately what our customers are buying from us today is just a payment processing capability. 13:30 PATRICK GRIFFIN: The second stool, leg of the stool, if you will, this two-legged stool, for this Internet of Value, is liquidity. And this iquidity cost is a huge component of the payments that infrastructure today. And so, when you think about the cost that you pay when you wire money internationally, it's not just processing costs and fees. Banks and financial institutions and payment processors have to cover their cost of capital. They are laying out a massive amount of cash in different overseas accounts to make sure that when you send a payment to Japan there's cash on hand in Japan to service your payment. 14:05 PATRICK GRIFFIN: The whole visual that we saw here with XRP that's really where we see there being a large opportunity to bring the liquidity costs down if you can fund your payment instantly on demand without pre-floating cash or opening up credit lines with your counter-parties you can really bring down this component of that cost so those two things together in my mind at least that's that is what really comprises the internet of value. You tackle those two things: processing and liquidity really starts to open up and level the playing field. And on leveling the playing field maybe a question back to you Stefan is and a little bit about the strategy so as we go out and roll out these new APIs for bank to bank or financial institution processing, this narrative around using the digital assets upon payment certainly there's no reason why you couldn't insert Bitcoin in there or Etherium or some other digital assets do you view this as maybe leveling the playing field for all digital assets and creating an opportunity for other digital assets to come in and basically compete for that case? STEFAN THOMAS: 15:12 Yeah so, we definitely look at it as as a way to create more competition I think that I'm just looking at the market today, most of the digital assets out there are not really designed for enterprising spaces, right? There they're coming from a background of direct to consumer use. They're kind of designed in a way that maybe isn't always necessarily totally in line with how regulators think about the financial system and as a result it’s quite difficult for companies to use these assets, so I think maybe some of people in the room are Bitcoin entrepreneurs and so you may know some of these struggles and you know some of these difficulties of using an asset like Bitcoin. I think you know me, speaking as CTO, more from the technical side, there are definitely big differences between the different digital assets, and so if you look at things like settlement speed on Ripple you get below four seconds most of the time four seconds on average. On Bitcoin you have to wait nine minutes between just to get one confirmation. 16:14 STEFAN THOMAS: There's things like finality. On Ripple when you get one confirmation you can hundred percent trust it, it cannot get reversed because the set of validators that are known so it can't be some validator you've never heard of suddenly coming up with a different answer. Whereas on Bitcoin, there can always be a longer chain that you just haven't heard of yet so you have to wait for multiple confirmations to gain more confidence. Another difference is that you know Ripple is non-deterministic and so bitcoin is is random so what that means is that the actual delay between blocks on Ripple is pretty consistent. It's four seconds with the standard deviation of 0.8 seconds so it's almost always exactly four seconds. And so, with Bitcoin it's more variable, right? So you could have a block after a minute. You can have a block after half an hour. And so, it's much harder for businesses to kind of rely on a system that has that high variability because it increases your risk as you holding an asset. 17:12 STEFAN THOMAS: So these are just some examples of why we think that XRP is best suited for payments use cases. And I think I'll give, be giving a talk later today on on going into a bit more depth on some of these differences 17:28 DAVID SCHWARTZ: And and we're not afraid of a level playing field. As Stefan said we think we can succeed on a level playing field but also you can get people to build a level playing field. It's very hard to get other people to stand behind something that has a built-in bias in favor of one company. Twitter doesn’t, it doesn't mind the fact that the internet wasn't built for Twitter. Facebook doesn't mind. They like the fact that there's an open platform that everybody can support and use and they're willing to compete on that level playing field and if they lose on that level playing field you know, so be it, somebody else will win and the world will be a better place for it. We believe that we have the advantages today and we believe that we can get the industry behind an open standard that facilitates these types of instantaneous payments. 18:07 PATRICK GRIFFIN: So David, this is a question coming back to you. In this level playing field obviously there are digital assets can compete on different characteristics. Obviously I think that Bitcoin as scalability challenges have been I think very famous recently could you comment a little bit on Bitcoin’s recent lows some of the things that have come up around resiliency scalability and maybe draw a contrast to XRP and how XRP is working. 18:32 DAVID SCHWARTZ: Sure. I think the idea that you don't need governance. The idea that you can just have this decentralized system that magically government itself doesn't really work. The internet is a decentralized system it has governance. Bitcoin currently is experiencing a little bit of a governance failure due to with dis-alignment of incentives. Historically the minerss have had an incentive to keep the system working. Everybody needs the Bitcoin system to work, whether you hold, whether you try to do payment’s, whether you're mining. This system has to work or nobody has anything. Everybody's benefited from the value of Bitcoin going up. If you’re a miner, you want the value to go up. If you hold Bitcoin, you want the value to go up. If you're using it for payments having more liquidity and lower risk and holding bitcoins is good for you. 19:11 DAVID SCHWARTZ: So everybody's incentives were aligned. They're starting to become dis-aligned recently because miners have been getting a lot of revenue from transaction fees Miners like high transaction fees. Users obviously would prefer to pay less for their payments. People who want to use Bitcoin as a payment platform want frictionless payments and they're not getting them because of the fees. So there's been a little bit of a governance breakdown due to that misalignment of incentives and it's not clear how you resolve that. It's not really clear how the stakeholders can realign their incentives. 19:39 DAVID SCHWARTZ: I’m confident that Bitcoin will come out come through it but I think it shows that governance is important. You should understand how a system is governed whatever system it is because there is going to have to be governance. It’s not going to magically govern itself. Now Ripple, the stakeholders are the validators and the validators are sort of chosen by the other validators, so right now Ripple is obviously very big in that space. We’re the major stakeholder on the network, but the recent interest into the price increase has begun diversifying the stakeholders and so we hope to see different jurisdictions, different companies and those will be the people who will be the stakeholders and they'll make the decision if there are going to be changes in the rules behind in that market. We think that that will work better and I think if you, once you accept that there has to be governance, you really want it to be the people who are using the network. You don't want the technology to force you into having other stakeholders whose interest may be adverse to the people who just want to use the system to store value and make payments. 20:32 PATRICK GRIFFIN: So what stuff, I mean do you have anything to add just in terms of the underlying design of the systems and how they're confirming transactions? I think when you go way way way back to our company's beginning it was billed as Bitcoin 2.0. And you know we felt like there was another way you could build a decentralized digital asset without without mining. So maybe talk a little about the confirmation engine behind XRP and some of its advantages over other systems 21:04 STEFAN THOMAS: Yeah, so as I mentioned in the introduction, I was fairly involved in the in the Bitcoin community back in 2010-2011 and one of the features that I contributed to was paid to script hash as a reviewer it was one of the first people to re-implement Bitcoin and I pointed out some flaws and you know we ended up with a much better solution. And so, through that experience going through the cycle of new feature on Bitcoin, even back then when the committee was much smaller I realized that it was actually very painful to do even a uncontroversial improvement to the system and that was partly because people had a very strong tendency to be conservative which is a good thing, for any, like whenever you're modifying a live system. But there was also just like no good process for introducing changes. 22:00 STEFAN THOMAS: We had to come up with a process ad hoc. We came up with this whole voting on mining power and so on. Now, from that experience I remember going back to a wiki page on the big part of working called the hard fork wish list and I kind of looked at and is sort of the list of things other things that we wanted to do and a lot of them were in my opinion, in my humble opinion, must haves for any kind of mainstream or enterprise adoption and so I was kind of like putting numbers next to them like this would take eight months this would take 12 months this would take two years and it started to add up like I'm not going to see this get to that point if we go at this rate. 22:38 STEFAN THOMAS: And then you know Ripple approached me and they had a lot of that hard fork wish list already implemented but maybe more importantly they had a different idea on the governance structure and I think there's sort of two key differences: The first key difference is there is an entity that's actually funding the development of the asset and all the technology behind the asset. And so you know, I was looking at the Bitcoin foundation website the other day and they're currently, their most recent blog post is to promote this lawsuit in New York to try to strike down the bit license and apparently the foundation feels that it's strategically important for Bitcoin to kind of fund this lawsuit and they looked at how many people had actually donated to the donation address that they were giving and it was just over a thousand dollars basically. Almost nothing 23:31 STEFAN THOMAS: And I was thinking like well if XRP you know had any strategic issue like that there would be millions of dollars immediately that just Ripple would put behind the issue and so as a holder of the asset that's really important for me to know that, you know, there is some some entity that's actually defending it from a technical standpoint, from a legal standpoint, from a business standpoint. That makes a big difference 23:53 STEFAN THOMAS: And then the second big difference that I saw was how features and how generally the evolution of the technology is managed. So on Ripple, there's voting among the validators, which is not too dissimilar from you know the kind of mining voting that we're doing on Bitcoin. However the validators on Ripple are largely chosen by the users or they are chosen by the users. And so they're not chosen by so this algorithm or just by their virtue of being very efficient in mining. And so as David pointed out earlier, the incentives are very different. On Ripple, the incentives are you know I want the people who are appointing me to be validators to be happy with my validations because otherwise you know there's what they will stop paying me. And so you know there's a much more closely aligned incentive for the value of some Ripple to do what the actual users want to do. 24:46 DAVID SCHWARTZ: And I would add that there there are sort of vulnerabilities in both types of systems. Like with the miners, it would be a double spend. With the validators, they could simply stop validating and the network would halt, but one tremendous difference is that you know how to fix one and it's not clear how you would fix the other so if you had the miners that were being pressured, let's say by a friend in government, or they were double spending or for whatever reason they are holding transaction fees high, let's say the block size issue got to the point where it was absolutely critical and there was no ability to come up with an agreement. It's not clear how you solve that. You change the mining algorithm? Like that's the nuclear option? Nobody knows what you do. With the system on consensus it is clear what you do. You can, you can change the validators. The validators work at the pleasure of the users, the holders, the real stakeholders of the network. 25:33 DAVID SCHWARTZ: That, I think that is a fairly significant advantage once you realize how important governance is. And it's not just a handle of failure as Stefan pointed out there's going to be evolution of the system unless you think the systems are absolutely perfect today. Well bitcoin is already proven that there they're not absolutely perfect today. I can’t, I certainly wouldn't try to claim the Ripple is perfect today. We have a wish list of features too, limited by engineering time, but we have to get people to agree to implement those features and I think that's also an argument why you can't have one blockchain to rule them all. There are features that also have costs and every feature has a cost because if you have a public blockchain everybody that uses that public blockchain, at a minimum, when there's a new feature they have to do a security review and make sure that that feature doesn't create a vulnerability for them. So there's a fixed cost that's fairly high. There's a huge bug bounty on Bitcoin and on Ripple right? Billions of dollars if you could steal money on the system. So the cost to implement a feature is high. So if there's a feature that somebody really wants it would be really useful for them they're probably not going to get that's not enough to get any feature on the system, so you're going to have a diversified system of multiple block chains and multiple ledger systems of all kinds competing with each other for share. that's why I think InterLedger is important because InterLedger will permit people who use different block chains and different systems, for good reasons, to be able to make payments to each other quickly seamlessly and without the risk associated with little pays problem. 26:53 PATRICK GRIFFIN: hmm Maybe just a last question before we turn it over to the audience and you've mentioned InterLedger. Stefan is the creator of InterLedger or the chief architect of it. When you walk around the conference today, you'll see a lot of companies that have blockchain offering. So, sort of going back to 2014, now if you remember, the the terminology and the marketing was all about it's not about Bitcoin it's about the blockchain. And so now we have some sound perspective on that. What's your take on the fundamental premise of a de-centralized distributed database without a digital asset and what's the trade-offs in terms of functionality versus utility? What's your opinion given the architecture IOP. 27:42 STEFAN THOMAS: Well that's a question I could easily spend hours on, so let me try to summarize. So as you mentioned, my colleague Evan Schwartz and I, we we came up with this protocol InterLedger and that came out of actually in a couple of different work streams but one in particular I remember was I was trying to figure out how to make Ripple more scalable and I was thinking about a particular kind of scalability which is similar to what David just mentioned, which was scalability in terms of functionality not just in terms of how many transactions can you do per second. Like how do I serve very different use cases that have you know mutually conflicting trade-offs. So as I was thinking about that problem I was kind of saying well maybe you don't even have to keep that one set of global state. Maybe you can have state in different places and a lot of that is honestly just rediscovering database knowledge that we've had since the 70s. Now just looking at Jim Gray's papers and just oh yeah that works for blockchains too 28:41 STEFAN THOMAS: So we took those ideas and we combined them with ideas around from the internet from the internet background in terms of networking and the concept of internet working and so on. And so, when I look at these private blockchains type approaches I think they are doing the first of those two steps namely they're applying sort of modern data, modern database thinking or classical database thinking to blockchain but I don't think they're really applying the Internet thinking yet because they're if they're attempting to achieve interoperability just by homogeneity which does not give you that diversity of use cases and so if you want that you have to think about what are the simple stateless protocols they can actually tie these different systems together without dictating how they work internally. So I can have my private blockchains that has all these like special features and it works in this way and you can have your private box and it works in the other way but we can still talk through a neutral protocol and you know the way that we're thinking about InterLedger, we're not married to InterLedger being a thing like I'm completely happy if it's lightning or if it's something else but I think as an industry to agree on some kind of standard on that layer. 29:51 STEFAN THOMAS: I think one of the reasons that we can is because unlike a blockchain a standard is neutral you know there's no acid anyone's getting rich off of. There's no there's a lot less to agree on. The list of decisions you have to make is a lot shorter. You know my colleague Evan, he makes a point, a very good point about with InterLedger only like seven eight major decisions that you have to make in the architecture to really arrive at it and so I think we have really good reasons for each one of them and so we think that there will be a certain convergence on on one standard protocol for again not just blockchains, but like any kind of ledger. 30:26 DAVID SCHWARTZ: I just ant to add that InterLedger is completely neutral to how the ledger works internally. Any ledger that can support a very short list of very simple operations. Every banking ledger can perform those operations. Almost anything the tracks ownership of value of any kind is capable of confirming that value exists, putting that value on hold, transferring that value between two people and those are the only primitives that InterLedger builds on. It's just by the clever combination of those operations in a way that provides insurance that all of the stakeholders get out of the transaction the thing that they're supposed to get out and get back whatever they were going to put in if they don't get out what they're supposed to get out. It’s, it's astonishingly simple at the protocol level. 31:08 PATRICK GRIFFIN: Okay, with that I will turn it over to the room for questions and some Q&A Aany questions in the back? QUESTION: Yeah, I’m kind of new to this and I just have some really basic questions. I read something recently where, Ripple was now the second most funded, or invested. Bitcoin was first, and Etherium was third. Can you tell me how you got to that position? You seem like you’re poking up about Bitcoin and how Ripple probably is more efficient and better. Then I had a second question - Where do I get a Ripple T-Shirt? 32:06 PATRICK GRIFFIN: The first question is how did, how did we get to this position we're in and does that generally capture the essence of that question and then Ripple t-shirts I'm not sure about that (Come work for us!) I will attempt to answer the first question and if you guys want to jump in. I think that is a function of one: Silicon Valley companies do one thing I think very well, they pick a lane and they go deep on it. For us, what we've been very very focused on it the use case. as a company we but we picked a long time ago to go deep on cross-border payments and in particular wholesale cross-border payments that’s financial institution to institution. It’s at the enterprise level and so when we look at digital assets today we think that there is a very very very use case around the consolidation of capital to fund payments overseas, which is exactly what we just demonstrated. Being able to transfer an asset from a server in one country to a server in another country and basically allow for payments companies to operate with much less capital deployed overseas. It's a, it's a quantifiable use case. Today there's 27 and a half trillion dollars in float in the banking system just wait sitting idly waiting for payments to arrive. That's compounded when you go to look at corporates and you look at payment service companies. So there's a very very very very very big number and I think that the recent traction that we've gotten has been an acknowledgement of the use case how it fits into our overall product offering. Ssome of the technical benefits of XRP itself and then when you look around, I mean I think that its head, you're hard-pressed to find another digital asset with as clearly articulated the use case that where the time horizon is now. I think there's lots of really exciting things going on in IOT and device-to-device payments and sort of the future some of things that I that Etherium people talk about for example, but it still feels like it's still at the horizon and I think this is being deployed today. There is a a path to commercial production and ultimately I think that's part of the reason why we're getting some traction. 34:18 DAVID SCHWARTZ: I think we also sort of crossed an important threshold. If an asset doesn't have value and it doesn't have liquidity you can't really use it even if it has the properties that are perfect for your use case simply because you can't you can't get enough of it without moving the market and I think we crossed a threshold (not the end) - *use the link above to view the entire transcript.**
Novice, Intermediate or Expert? A Quiz to Test Your Bitcoin Knowledge
Think you know the ins-and-outs of bitcoin? Test yourself with 30 questions that grill you on Bitcoin’s history, technology and politics. The 30 questions are split up into three segments ranging from novice to intermediate to expert, and cover a wide range of topics across the Bitcoin landscape. If you get stuck or want to check your answers along the way, an answer sheet has been added below the quiz. Of course, these questions cover only a few points about Bitcoin so far — with so many new developments taking place, there is always more to learn. Good luck! Novice Questions 1. Who created bitcoin? a. Vitalik Buterin b. Gavin Andresen c. Satoshi Nakamoto d. Charlie Lee e. Jackson Palmer 2. What is the original document that proposed Bitcoin, considered by many in the space to be a “must read”? a. The Bitcoin White Paper b. The Golden Proposal c. E-Money: Bitcoin and the Blockchain d. The Bitcoin Manifesto e. The Bitcoin Constitution 3. What is the name of the bitcoin exchange from Japan that famously collapsed in 2014 due to a devastating hack? a. Tradehill b. Bitstamp c. Mt. Gox d. Blockchain.info e. Bit Trade 4. How many bitcoin will ever be created? a. Unlimited b. 77,340,109 c. 3,500,000 d. 21,000,000 e. 18,650,000 5. What is the name of the off-chain scaling solution that is being developed to mitigate bitcoin’s fees and long transaction times? a. Instasend b. Second Layer Network c. Lightning Network d. Quick Net e. The Bitcoin Payment Network 6. Which of the following statements is NOT true about bitcoin wallets? a. Wallets can come in many forms, as long as they hold your private keys. b. Wallets have addresses that anyone can use to see the current number of unspent bitcoins in them. c. The only thing someone needs to access a wallet is the private key. d. It is possible to send bitcoin by signing the transaction offline and then broadcasting the transaction later. e. To open a wallet you must submit a request to the wallet provider. 7. What is the name of the technology underlying Bitcoin? a. Bitchain b. Blocklink c. Blockchain d. CoinLedger e. Satoshisquare 8. True or false? Bitcoin can be sent to an Ethereum address. a. True b. False 9. The first underground marketplace on the dark web which used bitcoin as its native currency and was created by Ross Ulbricht was called: a. Black Onion b. BTC Market c. East India Trading Company d. Silk Road e. Worldwide Drug Emporium 10. Bitcoins can be divisible down to the eighth decimal point. What is that unit called? a. Bit b. Satoshi c. Naki d. Shill e. Bitsat Intermediate Questions 11. Which traditional stock exchange was the first to list bitcoin futures contracts? a. The New York Stock Exchange (NYSE) b. The Intercontinental Exchange (ICE) c. The Chicago Mercantile Exchange (CME) d. The Chicago Board Options Exchange (CBOE) e. None of the above. Futures contracts are only available on cryptocurrency exchanges like BitMex and Bitfinex. 12. The computers that find new blocks are called: a. Accountants b. Miners c. Mitigators d. Associates e. Verifiers 13. Which of the following is NOT true about Bitcoin Cash, a fork from Bitcoin? a. Bitcoin Cash was created over an ongoing debate within the Bitcoin community over scaling and transaction speed. b. Roger Ver uses bitcoin.com to convince new investors that Bitcoin Cash is the original bitcoin. c. Bitcoin Cash is commonly referred to as “Bcash” because (some) bitcoin proponents don’t want to give the forked currency the brand recognition that Bitcoin has accumulated since 2009. d. Bitcoin Cash uses the SHA-256 hash function (the same as Bitcoin). e. Bitcoin Cash removed its block size limit completely. 14. Where is the Bitcoin processing server located? a. Washington, D.C., USA b. London, England c. Undisclosed location d. The United Nations votes on a new location every two years e. None of the above — Bitcoin has no processing server 15. What date was the Bitcoin network launched? a. November 5, 2008 b. May 1, 2010 c. January 3, 2009 d. December 31, 2008 e. April 23, 2010 16. When was Bitcoin’s all-time high exchange rate achieved (as of 9/11/18)? a. January 12, 2016 b. July 15, 2017 c. December 17, 2017 d. August 3, 2018 e. January 10, 2014 17. Which of the following statements is true? a. Bitcoin is owned by the NSA. b. By 2030, all bitcoins will have been mined. c. Bitcoin has smart contract capabilities. d. Before Satoshi created Bitcoin, he and a group of developers premined roughly 1 million coins. e. Only select people can mine bitcoins. 18. How often, on average, can we expect a new block be found by miners? a. > 1 second b. 2 minutes c. 10 minutes d. 60 minutes e. 6 hours 19. What is Bitcoin Pizza Day, May 22nd? a. A day every year where people who hold bitcoin pay forward a random pizza to a stranger b. The day when a computer programmer, Laszlo Hanyecz, paid 10,000 bitcoins for two pizzas in 2010 c. The day Satoshi announced his favorite food is pizza d. The day Vitalik compared bitcoin’s security to that of a soggy pizza e. A day sponsored by Pizza Hut where you can pay for pizza with bitcoin 20. How many new bitcoins should be created each day with the current block reward, on average? a. 2,200 except for February 29 on leap years b. 1,800 c. 5,000 d. 7,200 e. 150 Expert Questions 21. What is the difference between a soft fork and a hard fork? a. A soft fork happens when the code of a project is copied with permission of the original developers. A hard fork happens when the code of a project is copied without the permission of the original developers. b. A hard fork is a backwards-incompatible protocol change because it makes previously invalid blocks or transactions valid. A soft fork is a backwards-compatible protocol change because it makes previously valid blocks or transactions invalid. c. A hard fork occurs when miners in a mining pool cannot agree on how the block reward should be divided. A soft fork occurs when miners in a mining pool collectively decide to change how block rewards should be distributed. d. None of the above. 22. What does ASIC stand for? a. Applied Socioeconomic Investment Compository b. Application Specific Integrated Circuit c. Anonymous Spending Instrument for Cryptocurrencies d. Alternative Synthetic Interoperability Circuit e. Antiquated System for Implied Cryptography 23. What does an ASIC do for Bitcoin? a. Allows consumer access to high-level investment information, similar to a Bloomberg terminal b. Allows users to trade cryptocurrencies between different blockchains c. Anonymously allows users to send cryptocurrencies that aren’t entirely private d. Performs one specific task of solving a mathematical problem in order to find a new block e. Allows developers to cross reference current technology stacks with older languages 24. Is Bitcoin truly anonymous? a. Yes, people who use bitcoin cannot have their transactions traced by anyone. b. No, bitcoin addresses are derived from IP addresses. c. No, all transactions are recorded on a global transparent ledger that can be traced using analytical technologies. d. No, addresses openly show the name of the user. e. No, bitcoins can be linked to a user’s social security number. 25. What is SHA 256? a. A secure hashing algorithm used by Bitcoin, originally designed by the NSA b. A set of rules that miners and nodes must follow c. A scheme devised by Craig Wright to convince people he is Satoshi d. An annual conference in New York for blockchain enthusiasts e. The language Satoshi and early developers used to communicate behind closed doors 26. What is a nonce? a. An empty value in each block that is filled by the miner of that block b. Another name for a node c. A mining device faster than an ASIC d. A part inside a processing chip used in mining e. A name for a troll in Reddit forums 27. What is “difficulty” in relation to Bitcoin? a. A measure of how hard it is to explain what Bitcoin is b. A measure of how difficult it is to find a hash below the target c. A measure of long it takes to send bitcoin between addresses d. A measure of how difficult it is for bitcoin to move a certain number of basis points e. A measure of how hard it is for Bitcoin to recover to its all-time high 28. What is multi-sig verification? a. An older method of confirming bitcoin transactions now replaced by single-sig verification b. Verification that a user is allowed to hold bitcoins in a certain address by requiring multiple signatures from friends and family c. A form of verifying if someone is telling the truth by having multiple signatures from people monitoring the event taking place d. A process by which miners select which transaction to verify by having three other miners create a signature giving permission for the transaction to be verified e. A technology to verify wallets by requiring multiple signatures to process a single transaction with enhanced security 29. Bitcoin consumes roughly 1 percent of the world’s energy consumption. What does this mean about its security? a. A malicious actor doesn’t need to consider the total energy consumption in order to successfully execute a 51% attack. b. Bitcoin is secure to the point that it would require approximately 0 .0001% of the entire world’s energy consumption to attack the network. c. Bitcoin is secure to the point that it would require approximately 1% of the entire world’s energy consumption to attack the network. d. A malicious actor would need 10 times the amount of Bitcoin’s energy consumption in order to successfully attack the network. 30. What is a Merkle Root in Bitcoin? a. A hash of all transactions in a block that allows any specific transaction to be verified without downloading the entire blockchain b. A series of complex data that uniquely identifies the owner of an address c. A program designed by David Merkle that uncovers the largest inactive bitcoin wallets d. A cryptocurrency developed by the chancellor of Germany e. A part of a complex system of underground “roots” that power the Bitcoin blockchain How did you do? Answers:
c. Satoshi Nakamoto
a. The Bitcoin Whitepaper
c. Mt. Gox
c. Lightning Network
e. To open a wallet, you must submit a request to the wallet provider.
d. Silk Road
d. The Chicago Board Options Exchange (CBOE)
e. Bitcoin Cash removed its block size limit completely. (The limit is actually 32MB.)
e. None of the above — Bitcoin has no central server
c. January 3, 2009
c. December 17, 2017
c. Bitcoin has smart contract capabilities
c. 10 minutes
b. The day when a computer programmer, Lazlo Hanyecz, paid 10,000 bitcoins for two pizzas in 2010
b. A hard fork is a backwards incompatible protocol change because it makes previously invalid blocks or transactions valid. A soft fork is a backwards compatible protocol change because it makes previously valid blocks or transactions invalid.
b. Application Specific Integrated Circuit
d. Performs one specific task of solving a mathematical problem in order to find a new block
c. No, all transactions are recorded on a global transparent ledger that can be traced using analytical technologies
a. A secure hashing algorithm used by Bitcoin, originally designed by the NSA
a. An empty value in each block that is filled by the miner of that block
b. A measure of how difficult it is to find a hash below the target
e. A technology to verify wallets by requiring multiple signatures to process a single transaction with enhanced security
c. Bitcoin is secure to the point that it would require 1% of the entire world’s energy consumption to attack the network. (side note: bitcoin mining, while energy intensive, can be done in an eco-friendly, even carbon-neutral, manner. And it’s getting better all the time.)
a. A hash of all transactions in a block that allows any specific transaction to be verified without downloading the entire blockchain.
Coin : Bitcoin Symbol : BTC Last price : average 1.00000000 ฿, 1.00000000 (24/H), 1.00000000 (24/L) Difficulty : average 18,736,441,558.3100, 100,000,000.00 The Curecoin difficulty chart provides the current Curecoin difficulty (CURE diff) target as well as a historical data graph visualizing Curecoin mining difficulty chart values with CURE difficulty adjustments (both increases and decreases) defaulted to today with timeline options of 1 day, 1 week, 1 month, 3 months, 6 months, 1 year, 3 years, and all time Bitcoin Mining-Schwierigkeit . Im Bitcoin-Netzwerk gibt es eine globale Sammlung von Schwierigkeiten für alle Blöcke. Damit ein Block als legitim angesehen werden kann, muss der Hash-Wert niedriger als das festgelegte Ziel sein.Die Schwierigkeit wird alle 2016 Blöcke geändert. Dec 3, 2014 at 15:15 UTC Updated Dec 4, 2014 at 14:33 UTC. Nermin Hajdarbegovic. Bitcoin Price Decline Sparks Rare Mining Difficulty Drop. Bitcoin mining difficulty has decreased for the first ... In comparison, the Bitcoin mining difficulty is 3,129,573,174.52 - thus it's about 200 million times easier to get a share in this pool than to successfully mine a block independently. That's why people join pools. The third line is a mining.notify notification to our client. This message defines that block for us to mine. There's a lot of data returned under "params", so I'll explain it field ...
Bitcoin Mining Syndicate Review – Does It REALLY Work?
This usually relates to the difficulty of generating a new hash address, also known as mining. This is a variable that the Bitcoin system is using to keep the growth of new Bitcoins on a ... Why does Bitcoin have a "difficulty" and what does this difficulty represent? How is this number calculated and why is it important? In this video, shot in the Wynwood art district of Miami, I ... The Bitcoin Network Difficulty Metric The Bitcoin mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated ... Watch in 360 the inside of a nuclear reactor from the size of an atom with virtual reality - Duration: 3:42. EDF in the UK Recommended for you. 360° Explanation of Bitcoin Mining & Difficulty for lay people. Canadian billionaire predicts end of US Dollar as world's reserve currency - Ned Goodman lecture - Duration: 7:23. Cambridge House ...