(PDF) A Simple Algorithm for Automatic Hopping among Pools ...

[Discord Conv] Dynamic IOTA


Disclaimer: This is my editing, so there could be some misunderstandings.
For the general view of 'what's going on?' of this dynamic ride...

2/16
dom어제 오전 5:44
Just FYI: the team is now working on a plan on how to recover from this and get the network back into operations while also allowing anyone who might have been affected to safely transition. there are no guarantees just yet, but we will do our best to get this through ASAP. Hopefully we will have a concrete action plan tomorrow and will then communicate it.
On the vulnerability side, all parties are notified and they are working with law enforcement and external auditors to fully understand how this happened. We will keep you guys posted.

dom어제 오전 5:47
needless to say, that the vulnerability itself was rather sophisticated and required access on multiple levels to be able to execute it on this scale. Hopefully we will be able to share more soon.
[Did the vulnerability existed after or before the audit on trinity?]
after the audit

dom어제 오전 5:51
Currently it looks like this will only be for recent Trinity Desktop users

dom어제 오전 5:56
the entire Trinity team did an amazing job and there is not a single person to blame. The attack itself was very sophisticated and targeted at IOTA and Trinity itself. We are already working on v2 where none of this would be possible. We will share our learnings from this publicly and also share what kind of precautionary measures we are taking.

dom어제 오전 5:58
The community also did an amazing job in helping to guide us through and give assistance to other community members.

dom어제 오전 5:58
we actually were having discussions a few weeks ago to rename Trinity (because of the religious connotation)

Jelle Millenaar [IF]어제 오전 6:37
We didn't really have panic and chaos. We actually worked really well together.

Jelle Millenaar [IF]어제 오전 6:38
[IF members, do you get paid Over Time for all the awesome work or PURE DEDICATION?]
nobody considers this overtime or anything. We just contribute because we know it is needed.

dom어제 오전 7:45
[If dependencies carry this risk, maybe they should've done an official CORE wallet and saved all the fluffy stuff for a third party app.]
that's how the new Trinity will work. Sucks that it happened now especially after we wanted to put it into maintenance mode anyways

dom어제 오전 7:49
[How do we know if the hacker has our seeds?]
this is related to a third party, unrelated to IF or IOTA

dom어제 오전 7:50
we know that this could have only been done through intrusion / collusion of an external source.
[Dom are you fully confident to solve all those problems especially regarding the possibility of even more people getting scammed instantly after coo is back again?]
yes, relatively sure. That is why we are taking the necessary time to plan accordingly.

dom어제 오전 7:55
We will provide more information on how this exploit was done soon. All the involved parties are aware of the situation

dom어제 오전 7:58
[Please give us some time before you start the coo information that we can move to new seed instantly]
don't worry, we will get it all sorted out.

dom어제 오전 8:22
once life is a bit less "tumultuos" I still want to work on that Autonomous Bar concept powered by IOTA (access control, id verification, payment and a bunch of robots)

Eric Hop [IF]어제 오후 2:44
Pretty good. I'd be surprised if we find more theft bundles. Only found one more today, while building a timeline of the theft.

Eric Hop [IF]어제 오후 2:50
We have several separate teams. One is looking at how to resume. One is looking at how to be able to rescue the funds. Others are interacting with law enforcement and third parties. I'm part of DAFT. The Data Analysis Forensics Team. Haha

Eric Hop [IF]어제 오후 3:01
Some if the people in Coordicide team like Hans have been helping out. It was an all hands on deck situation. I actually loved it. We haven't had this much of a team spirit in quite a while. Usually everyone plays in their own sand box. But this time we all played together on the beach.
It's such a joy working with so many extremely smart people. With so many eyes on the ball we did not miss much opportunities to figure things out.

Eric Hop [IF]어제 오후 3:07
And for me personally this was a great time. I am all about puzzle solving. And this was the greatest puzzle of all. With a built-in time limit. Haha

Eric Hop [IF]어제 오후 3:12
I'm not doing official statements. But we have a good overview of what happened and the extent of it. Right now we want to hammer down how to resume without risks and how to safeguard the stuck funds if possible. What is especially funny to me is that the coordinator that everyone was bitching about for years did exactly the thing it was meant to do. It allowed us to halt an exploit that otherwise would have cost everyone dearly.

Eric Hop [IF]어제 오후 3:15
It was meant as safeguard, training wheels, while we mature. And while we need to remove it due to it being a single point of failure and a bottle neck to scaling, I will be kind of sad to see it go.
Yes, IF would have done the same to safeguard funds, if a third party wallet would have been the cause. Just because we can.

Eric Hop [IF]어제 오후 3:37
Yes it was a manual attack. The sophistication was in the exploit. But he seemed to be not too sophisticated iota-wise. Everyone has their specialties I guess.

Eric Hop [IF]어제 오후 3:41
And as an aside I wish people would fuck off about the whole iota not being decentralized because of coordinator, when every block chain token is centralized around a few mining pools that seriously disrupt any possibility for positive software development. They fucking hold back everything that influences their bottom line. Which is why Bitcoin and the rest have pretty much been stagnant for years while we move forward constantly.

dom오늘 오전 7:08
We will release a new Trinity version tomorrow with the fixes implemented. It's not yet the full transition tool, but it's the first step towards fully going back to operations.

dom오늘 오전 7:09
Just wait for the rest. It is important that we get this 100% right and we are still further investigating, so there is a lot of behind the scenes work happening right now.

David Sønstebø오늘 오전 8:52
So... Tangle EE
Quite cool eh?
It's so unfortunate that this asshole managed to distract everything away from one of the biggest steps towards global adoption
Let's not give this fuckface further attention. The cause has been identified, law enforcement is involved and mitigation strategy is being worked on. There will be further official updates, but let's not halt the whole IOTA project due to one idiot.

David Sønstebø오늘 오전 8:56
[Is he identified?]
Let's just say that there's a lot of traces. The attacker does not seem to have been too sophisticated. Official update on Monday will provide details.

David Sønstebø오늘 오전 9:03
[How will this situation affect iotas partners?]
My best guess: further increasing our reputation as an organization that solves hard problems efficiently and doesn't shy away from difficulties. Every company in the world has had issues similar to this. Keep in mind that this does not at all affect the protocol/Tangle/IOTA.

David Sønstebø오늘 오전 9:08
We do have a bounty program. This/these individual/s were not interested in the greater good, pure greed and incompetence

David Sønstebø오늘 오전 9:10
[Any examples of use cases for DID on the tangle?]
Virtually all use cases on Tangle requires a secure identifier and verifiable credentials. What I think will happen is that once Tangle EE ships the first version, all other companies using IOTA will start to implement it
[One more question: How transparent will tangle EE be for the community?]
100%. This is why I/we consider Tangle EE to be such a significant milestone, it's not "just" IF, this is a coalition of major companies, start-ups and leading academic institutions building the solutions

David Sønstebø오늘 오전 9:11
[any ETA for the 1st Version?]
That's another good thing, IF won't issue the ETAs, Tangle EE will :

David Sønstebø오늘 오전 9:12
[What does T(angle)EE do exactly?]
It's a partnership and collaboration between several entities to develop and ship code and blueprints that are relevant for product developers and service providers
That blog post is a good read to get better comprehension

David Sønstebø오늘 오전 9:13
It's incredibly important that IF's role slowly but surely decreases in importance. IOTA has to succeed independent of IF post-Coordicide and multiversial-slicing (advanced sharding equivalent)

David Sønstebø오늘 오전 9:14
I would say that it's an incredible important piece of the puzzle. Naturally Object Management Group (OMG) in Tangle EE will be key here as well, but IOTA is not married to "just" Eclipse. We also work closely with Linux Foundation. However, Tangle EE is very focused

David Sønstebø오늘 오전 9:22
I don't think IF will disappear, however, it will hopefully be purely R&D-driven in 10 years, whereas the other efforts are taken over by the ecosystem (companies, academia, start-ups and enthusiasts). Even post-Coordicide, we already now have theories on how to go way beyond even that. If we achieve our goal of IOTA being equivalent to TCP/IP, there will naturally be continuous development and research in the foreseeable future. I doubt we will reach complete satisfaction, especially now that smart contracts and oracles enter the equation: there's certainly more work to be done for IF, but my goal is for IF to "simply" be R&D

David Sønstebø오늘 오전 9:27
Definitely. This is why I coined the requirement for a "grandma on crack"; this is truly how simply using IOTA should be in 2-5 years. Just like very few even know wtf TCP/IP is

David Sønstebø오늘 오전 9:57
I agree 100% with your assessment, though as would Netflix do with Blockbuster's assessment when they declined to acquire Netflix. At the end of the day it's all about basic economic and human behavioural principles.
Human nature does not change, but our environment does. Disruption will continue forever. Darwinian principles will forever remain true.
A better option = adoption. It doesn't matter how hard the incumbents fight against it, they either adapt or go Kodak/Nokia/AOL
submitted by btlkhs to Iota [link] [comments]

GHash.IO & double spending

Some of this data is from bitcointalk, I'll attribute the authors as I go

TL;DR:

Put on your thinking cap:

https://en.bitcoin.it/wiki/Getblocktemplate

"getblocktemplate moves block creation to the miner, while giving pools a way to set down the rules for participation. While pools can do just as much as they could before by expressing it in these rules, miners can not be kept in the dark and are enabled to freely choose what they participate in mining. This improves the security of the Bitcoin network by making blocks decentralized again."
A risk that is difficult to assess is whether the large mining pools validate coinbase tx content included by miners in their pool.
(To test, you "just" need to be the member of a pool who successfully solves a block; and also write a custom miner to include a specific coinbase tx that the pool did not ask you to provide. (Credit to bee7 here for this idea).
It's possible that the GHash.IO operators control (or are colluding with) a significant portion of the mining capacity of Elgius and Slush (I picked those two pools because of their abysmal orphan (luck) rate); This hypothesis is supported by the data in this post.
There are, of course, other very reasonable explanations for the "luck variance" observation:
...but there is also additional circumstantial evidence that GHash.IO have bad actors:

Credit to mmitech for this next bit of research:

In September I witnessed a lot of double-spending against BetCoin Dice. It happened between 25th and 27th Sept.
The mechanism was simple: send betcoin a tx with 0 fee, then wait for a result tx, if your bet is a win, then confirm your tx, otherwise double-spend it.
  1. Here I'll give you a bunch of transactions which you can examine. Note this is a chain of transactions, so just click on outputs to see. https://blockchain.info/tx/4d731074447f02609c3110a187f9c6976f2bf255288ec5666ee270f09679619d https://blockchain.info/tx/e0b44f68441ea0bad0f7694f735f496ce05238862534c6fea737b8903921185a The double-spending of losing bets was performed by someone mining to https://blockchain.info/address/1MA7CKbWMyKdPkmsbnwmfeLh1hYy5A3gy8 , you can check it yourself.
  2. I tracked coins down to the origin https://blockchain.info/tx/154ecb1eb72c933bc0707fa70deceb688361554ab81b901673d308aa84d9cfe9 The most interesting address here is 12PcHjajFJmDqz28yv4PEvBF4aJiFMuTFD It's been involved in similar actions, look at this chain of win-only tx's https://blockchain.info/tx/0c1a08d035862b01d075e8044b1e9ce52a8ad951b57d876a2a9a0e3502c41eb0 And the most interesting fact is that these zero-fee tx's inbetween winning ones were mined by ghash.io exclusively. Possibly this was a test attack.
  3. Going further, I found the address the earnings from attack were sent to: 12e8322A9YqPbGBzFU6zXqn7KuBEHrpAAv https://blockchain.info/tx/292e7354fbca1847f0cbdc87a7d62bc37e58e8b6fa773ef4846b959f28c42910 And then part of these funds (125 BTC) was sent to ghash.io's mining address: https://blockchain.info/tx/48168cf655d0ac0c7c2733288ca72e69ecd515a9a0ab2821087eb33deb7c6962
  4. Furthermore, I checked the funds mined to 1MA7CKbWMyKdPkmsbnwmfeLh1hYy5A3gy8 In these 2 succeeding tx's they were moved to 199kVcHrLdouz9k9iW3jh1kpL7j9nLg7pn https://blockchain.info/tx/e567ad6232de5285e0dc211d3f1c489b1e00e509118ba98a4825529d0a9197d9 https://blockchain.info/tx/faa7bc8b99376efa774045e79b42771fe668341b00290a61cd416992571c590d
This address is interesting, because it contains 6000 BTC and ~30% of funds come from ghash.io mining address. https://blockchain.info/taint/199kVcHrLdouz9k9iW3jh1kpL7j9nLg7pn
  1. And the last thing to spot: GHash.io, being about 25% of network back then, didn't find a single block to its address between 25th and 27th of september! https://blockchain.info/address/1CjPR7Z5ZSyWk6WtXvSFgkptmpoi4UM9BC?offset=1350&filter=2
Ok smarties: Any other thoughts/theories/criticisms to these hypotheses? Post below if you're considering changing pools now.
2014-Jun-03 11:18PM PDT edit: Fixed formatting issues
2014-Jun-03 11:25PM PDT edit: Clarified negative effect in TL;DR
2014-Jun-04 01:40PM PDT edit: Clarified point about pool hopping
submitted by bullshbit to Bitcoin [link] [comments]

New people please read this. [upvote for visibility please]

I am seeing too many new people come and and getting confused. Litecoin wiki isn't the greatest when it comes to summing up things so I will try to do things as best as I can. I will attempt to explain from what I have learned and answer some questions. Hopefully people smarter than me will also chime in. I will keep this post updated as much as I can.
Preface
Litecoin is a type to electronic currency. It is just like Bitcoin but it there are differences. Difference explained here.
If you are starting to mine now chances are that you have missed the Bitcoin mining train. If you really want your time and processing power to not go to waste you should mine LTC because the access to BTC from there is much easier.
Mining. What is it?
Let's get this straight. When making any financial commitment to this be prepared to do it with "throw away" money. Mining is all about the hashrate and is measured in KH/s (KiloHash/sec). Unlike the powerful ASICs (Application Specific Integrated Circuit) that are used to mine bitcoins using hashrates in the GH/s and even TH/s, litecoin mining has only been able to achieve at the very best MH/s. I think the highest I've seen is 130 MH/s so far. Which leads us to our next section.
Mining Hardware
While CPU mining is still a thing it is not as powerful as GPU mining. Your laptop might be able to get 1 a month. However, I encourage you to consult this list first. List of hardware comparison You will find the highest of processors can maybe pull 100 KH/s and if we put this into a litecoin mining calculator it doesn't give us much.
Another reason why you don't want to mine with your CPU is pretty simple. You are going to destroy it.
So this leaves us with GPUs. Over the past few months (and years) the HD 7950 has been the favourite because it drains less power and has a pretty good hashrate. But recently the introduction of the R9 290 (not the x) has changed the game a bit. People are getting 850 KH/s - 900 KH/s with that card. It's crazy.
Should I mine?
Honestly given the current difficulty you can make a solid rig for about $1100 with a hashrate of 1700 KH/s which would give you your investment back in about a month and a half. I am sure people out there can create something for much cheaper. Here is a good example of a setup as suggested by dystopiats
PCPartPicker part list / Price breakdown by merchant / Benchmarks
Type Item Price
CPU AMD Sempron 145 2.8GHz Single-Core Processor $36.01 @ Amazon
Motherboard ASRock 970 EXTREME4 ATX AM3+ Motherboard $99.48 @ OutletPC
Memory Crucial Ballistix Tactical Tracer 4GB (1 x 4GB) DDR3-1866 Memory $59.99 @ Newegg
Video Card Sapphire Radeon HD 7950 3GB Video Card (3-Way CrossFire) $245.38 @ Newegg
Video Card Sapphire Radeon HD 7950 3GB Video Card (3-Way CrossFire) $245.38 @ Newegg
Video Card Sapphire Radeon HD 7950 3GB Video Card (3-Way CrossFire) $245.38 @ Newegg
Power Supply SeaSonic Platinum 860W 80+ Platinum Certified Fully-Modular ATX Power Supply $146.98 @ SuperBiiz
Total
Prices include shipping, taxes, and discounts when available. $1078.60
Generated by PCPartPicker 2013-11-29 00:52 EST-0500
Estimated Hashrate (with GPU overclocking) : 1900 KH/s
Hardware Fundamentals
CPU - Do you need a powerful CPU? No but make sure it is a decent one. AMD CPUs are cheap to buy right now with tons of power. Feel free to use a Sempron or Celeron depending on what Motherboard you go with.
RAM - Try to get at least 4 GB so as to not run into any trouble. Memory is cheap these days. I am saying 4 GB only because of Windoze. If you are plan to run this on Linux you can even get away with less memory.
HDD Any good ol 7200 RPM hard drive will do. Make sure it is appropriate. No point in buying a 1TB hard drive. Since, this is a newbie's guide I assumed most won't know how to run linux, but incase you do you can get a USB flash drive and run linux from it thus removing the need for hard drive all toghether. (thanks dystopiats)
GPU - Consult the list of hardware of hardware I posted above. Make sure you consider the KH/s/W ratio. To me the 290 is the best option but you can skimp down to 7950 if you like.
PSU - THIS IS BLOODY IMPORTANT. Most modern GPUs are power hungry so please make sure you are well within the limits of your power consumption.
MOTHERBOARD - Ok, so a pretty popular board right now is Gigabyte GA-990FXA-UD3 and the ASRock 970 Extreme4. Some people are even going for Gigabyte GA-990FXA-UD5 and even the mighty Gigabyte GA-990FXA-UD7 because it has more PCI-E slots. 6 to be exact. However you may not need that much. With risers you can get more shoved into less.
PCI-E RISERS - These are called risers. They come in x16 to x16 and x1 to x16 connections. Here is the general rule of thumb. This is very important. Always get a POWERED riser otherwise you will burn a hole in your MoBo. A powered rise as a molex connector so that additional power from PSU can be supplied.
When it comes to hardware I've provided the most basic knowledge you need. Also, take a look at cryptobader's website. This is very helpful. Please visit the mining section of Litecoin Forums and the litecoinmining subreddit for more indepth info.
Mining Software
Now that you have assembled your hardware now you need to get into a pool. But before you do that you need a mining software. There are many different ones but the one that is most popular is cgminer. Download it and make sure you read the README. It is a very robust piece of software. Please read this if you want to know more. (thanks BalzOnYer4Head)
Mining Pools
Now that your hardware and software is ready. I know nothing about solo mining other than the fact that you have to be very lucky and respectable amount of hashing power to decrypt a block. So it is better to join pools. I have been pool hopping for a bit and really liked give-me-coin previously known to the community as give-me-ltc. They have a nice mobile app and 0% pool fees. This is really a personal preference. Take a look at this list and try some yourself.
How do I connect to a pool?
Most pools will give you a tutorial on how to but the basics are as follows:
  • Signup for a pool
  • Create a worker for your account. Usually one worker per rig (Yes people have multiple rigs) is generally a good idea.
  • Create a .run file. Open up notepad and type cgminer.exe -o (address_to_the_miningpool:port_number) -u (yourusername.workername) -p (your_worker_password_if_you_made_one). Then File>Save As>runcgminer.run (Make sure the drop down is set to "All Files" and .txt document.) and save in the same folder as cgminer. That's it.
  • Double click on runcgminer.run (or whatever you named it) and have fun mining.
Mining Profitability
This game is not easy. If it was, practically everyone would be doing it. This is strictly a numbers game and there are calculations available that can help you determine your risk on your investments. 4 variables you need to consider when you are starting to mine:
Hardware cost: The cost of your physical hardware to run this whole operation.
Power: Measured in $/KwH is also known as the operating cost.
Difficulty rate: To put it in layman's terms the increase in difficulty is inversely proportional to amount of coin you can mine. The harder the difficulty the harder it is to mine coin. Right now difficulty is rising at about 18% per 3 days. This can and will change since all you miners are soon going to jump on the band wagon.
Your sanity: I am not going to tell you to keep calm and chive on because quiet frankly that is stupid. What I will tell you not to get too carried away. You will pull you hair out. Seriously.
Next thing you will need is a simple tool. A mining profitability calculator. I have two favourite ones.
coinwarz
I like this one cause it is simple. The fields are self explanatory. Try it.
bitcoinwisdom
I like this one because it is a more real life scenario calculator and more complicated one (not really). It also takes increasing difficulty into account.
Please note: This is the absolute basic info you need. If you have more questions feel free to ask and or google it!
More Below.
submitted by craeyon to litecoin [link] [comments]

Can you proofread this before I explain to my Dad what cryptocurrency is?

He asked me what calculations my racks of video cards were doing, and what cryptocurrency was, so I typed this up - can you let me know all the stupid mistakes I made before I send it?
Note - he specifically asked me to explain everything as he wants to understand the entirety of it, including what my racks of GPU's are actually calculating and why
bitcoin was the first, it used the SHA256 hash algorithm
it was made so that everyone could run it and "mine" for coins with their CPU by running the SHA256 hash over and over with slightly different inputs, to try to get an output that was lower than the current target. The current target is called the "difficulty" ( https://en.bitcoin.it/wiki/Target )
If your bitcoin program found inputs that resulted in an output lower than the current difficulty, you win a "block" which contains varying amount of coins (with bitcoin, the reward halved every few years)
Your bitcoin program submits this to the network (multiple other bitcoin nodes that you're connected to), and then importantly - they all independently check your work. Once they verify that your hash is correct and is below the difficulty target, everyone agrees that a block was found and everyone moves onto looking for the next one. Note that the chain of blocks that keeps being found is called the "blockchain" , and it's completely public. Every transaction that happens between blocks sits in the "mempool", waiting to be written into the next block. ( https://99bitcoins.com/what-is-bitcoin-mempool/ )
Since SHA256 is a one-way hashing algorithm, you can't just make up a fake hash and hope it works. You actually have to do the work to find a correct one, this is called "Proof of Work"
Once it's written into the blockchain, it cannot be changed. Usually when you send bitcoins to someone, they wait for several "confirmations" before they consider your payment accepted. For example - when five new blocks have been mined after the one containing your transaction, that's five "confirmations". The deeper your transaction is into the blockchain, the more computing power it would take to invalidate that transaction. This is called the 51% attack - ( https://learncryptography.com/cryptocurrency/51-attack )
then someone figured out that it would be faster if your video card did the SHA256 hashes instead of your CPU, since there are hundreds of weaker 'cores' in a GPU than a CPU (which has 2-4). After a short while of everyone moving to using GPU's instead of CPU's, the difficulty target became harder (the network re-adjusts the difficulty target every x blocks, to keep the time between blocks constant. If more people are mining, the difficulty must go up to keep the time between blocks the same)
After a few years, various people custom designed ASICS to do the SHA256 hashes , which are much faster than GPU's, so now to mine bitcoin you have to buy custom hardware to do it. (you don't technically have to, but using GPU's would be worthless now with such an insane difficulty)
Also along the way, people realized the difficulty was getting too hard to mine by themselves, they would go weeks without finding a block; so someone invented "pooled" mining. One person runs a custom bitcoin wallet on a server, and thousands of people connect to that and mine to that wallet. However, instead of that wallet telling all the miners what the real current difficutly target is, it instead gives them a much easier target, so they find "shares" every few minutes. These "fake" easy shares are how the pools keep track of how much hardware you actually have mining for them. When the pool finds a block (because one of these shares will eventually qualify against the real current difficulty), it distributes the block reward evenly among the miners, based on how many shares they submitted during that round. (There's some tricky math called "pool hopping" you can look up if you're interested, where mathematically a miner will come out ahead if they switch to a pool at the beginning of a round, then switch to another pool at a pre-determined point. Pools came up with different payment schemes to get around this, one is called PPLNS)
Bitcoin was the first, however since it's open-source, someone took the Bitcoin code, changed some variables (name, block time, block rewards, max number of coins, etc), called it Litecoin, and launched their own version. Notably, they also changed the hashing algorithm used from SHA256 to scrypt. This was the first "Altcoin".
Since all the bitcoin mining software was written to calculate SHA256, the miner programmers had to start over on a scrypt miner. When new coins come out with new algorithms that haven't been used in previous coins, miner programmers rush to create GPU miners for that algorithm. Once they're running, they then work on optimizing them. The ones who have the fastest programs can usually charge a "devfee", which means for every x minutes of mining for you, it connects to a mining pool of the developer's choosing and mines for him for y minutes (usually devfees are 1-4%). If his/her miner is much faster than others, then it's still worth it for you to run his over the free miners.
Today there are hundreds (thousands?) of altcoins, with new ones coming out every week since it's so incredibly easy to launch your own. Very few have actually added something new to the mix, but the ones that have are the ones that are currently worth the most. A notable example is Ethereum. Instead of the blockchain just being a public ledger of transactions, it can also contain code that all the ethereum nodes can run. It can be simple code, such as "all ether directed to this wallet address will get split evenly in half, with half going to this address, and the other half going to that address" , or it can be more complex code. Once this code (called a "Contract" in Ethereum terms) is submitted into the blockchain, it's there forever (or as long as Ethereum is running on people's computers)
Another thing you can do is called a "hardfork" - if a group of people don't like the way one coin is being run, they can take the source code for that coin, change what they want changed, and launch it. At a certain block, your new code takes over, and you've essentially split the blockchain off on your own. The two blockchains can never be merged, because the nodes that run the coins are running two different versions - they each see the others' transactions and chains as invalid. If you can get enough people behind your idea, and they direct enough hashing power at your fork, then it will survive. Ethereum forked a few years ago because a large group of people disagreed with something the developer did, that fork is now called "Ethereum Classic"
Other noteable things that some coins have now are anonymous transactions, using math that might as well be magic (RingCT, ZKSnarks), several coins have the ability to do transactions that you can assume are completely anonymous. Even if you view their public blockchains, you can't figure out what transactions actually happened ( https://monero.stackexchange.com/questions/880/eli5-how-does-ringct-work )
So to answer your question, my racks of video cards used to be mining Ethereum (ethash algorithm) on an ethereum pool. Now half of them are mining Monero (cryptonight algorithm) and the other half is mining ZCash (equihash algorithm)
submitted by PcChip to CryptoCurrency [link] [comments]

Frequently Asked Questions

NOTICE

This post is a temporary resting place for FAQs while we wait for the release of VertDocs.

What is Vertcoin?

Vertcoin is a digital peer to peer currency focused on decentralization and ASIC resistance. Vertcoin is aiming to be easily accessible to the everyday user without extensive technical knowledge. Vertcoin has started to lower the barrier of entry with lots of video guides and the development of the One Click Miner (OCM).

Why does ASIC Resistance Matter?

ASICs (Application Specific Integrated Circuits) are dedicated mining devices that can only mine one algorithm. Coins like Bitcoin and Litecoin both made GPU mining obsolete when SHA-256 and Scrypt ASICs were created.
ASIC Resistance and How it Makes Vertcoin Decentralized
Vertcoin believes that ASIC resistance goes hand in hand with decentralization.
ASICs are made by companies like Bitmain and almost all the original sellers of ASICs sell on a preorder basis. When pre ordering an ASIC you are buying from a limited batch that the ASIC company has produced. Often times the batch will not be fully filled and the ASIC company will often have left over ASICs. When the ASIC company has left over ASICs they will put them to work mining. Soon enough the ASIC company will have a very large amount of unsold ASICs that are mining and slowly the ASIC company starts to own a large part of the network’s hashrate. When an ASIC company(s) starts to own a large majority of the hashrate the network can become very centralized after a while.
Having your network consist of a few large companies can be very dangerous as they could eventually get 51% hashing power and 51% attack your network, destabilizing the network. When your network is made out of a lot of smaller miners, like Vertcoin, it is much harder for your network to be 51% attacked, therefore increasing network security. By having centralized hashing power your coin effectively centralizing the network as the centralized hashing power can deny transactions and stop any activity they don’t want.

What Ways is Vertcoin Superior to Litecoin and Bitcoin?

Network Difficulty Adjustments with Kimoto Gravity Well
Vertcoin uses a difficulty adjustment called Kimoto Gravity Well which adjusts the difficulty every block, whereas Bitcoin and Litecoin’s difficulty changes every 2016 blocks. By adjusting the difficulty every block Vertcoin’s block time can stay consistent by adjusting for the fluctuation in network hash rate from hash rate renting and part time miners. If a large miner switches off Bitcoin or Litecoin mining the network could be slowed to a crawl until 2016 blocks are mined and the difficulty can change to adjust for the new network hash rate. We observed this happen to Bitcoin when Bitcoin Cash became more profitable than Bitcoin and Bitcoin’s network hash rate saw a steep fall off, slowing the network to a crawl. If this was to happen with Vertcoin the difficulty would adjust after 1 block was mined, allowing Vertcoin to always be profitable to mine.
Anyone can Meaningfully help Verify Transactions
In Proof-of-Work crypto currencies miners help secure the blockchain and get rewarded with the block reward. In ASIC mineable coins like Bitcoin and Litecoin you can’t meaningfully verify transactions unless you pay 1000-2000$ for a ASIC miner. When you mine with a CPU or GPU in a ASIC mineable coin you make no meaningful impact on the network. It is like trying to break concrete with a shovel while everyone else has a jackhammer.
Simple Upgrades Aren’t Held back by 1-2 Large Miners
In ASIC market people buy ASICs in batches in a preorder. With Bitcoin ASICs there is not enough demand for ASICs so the batch often doesn’t get sold out so now the manufacturer has spare ASICs. Now that the manufacturer has spare ASICs they will often start mining with them and eventually the ASIC company has one of the highest hash rates. If the ASIC company doesn’t want a certain upgrade to go through, for example SegWit, they can vote with their hash rate to hold back the upgrade forever or at least until people who want SegWit get more hash rate.
You Have a Say in Protocol Rules and Consensus
In Bitcoin you are a passive observer because you can only issue transactions and you have no part in the process after that. In Vertcoin you can be apart of the process for deciding the ordering of transactions and deciding what transactions get into blocks.
Block Rewards and Transaction Fees are Distributed Evenly
In Bitcoin and Litecoin the block rewards and transaction fees are often given to the large miners in China due to mining centralization created by ASICs. Vertcoin distributes its mining rewards to people all around the world thanks to the mining decentralization.

When will Atomic Swaps Be Ready?

Atomic Swaps can be done in two flavors: On-chain and Off-chain (via Lightning Network). On-chain swaps were actually done already using Blocknet, you can see it in use on Youtube. We're looking into doing it again using Interledger.
However our main focus is to do off-chain Atomic Swaps using Lightning Network technology. Because it has the same benefits as Lightning transactions: No network fees and instant transactions.
For off-chain swaps we need Lightning Network to be fully operational. It's difficult to give an ETA on that since we aren't the ones developing it. U/gertjaap posted a video on the current state of the Lightning Network for Vertcoin a while ago, which you can see here.
This was actually the "bleeding edge" of Lightning Network at the time. was able to use it on VTC's main net, meaning that our blockchain is ready for the good stuff. As you can see however, it can't yet be considered production ready (most users would want a little better UX than a command line app).
Now off-chain Atomic Swaps is a technique based on the same principles as Lightning Network, but adds an extra complexity for it being across chains. So it's basically the same as a "multi hop" Lightning payment, which is not yet built by any of the implementations. They're still working hard on making the single-hop payments robust. So in order for AS to be possible, LN has to be fully operational.
A timeline cannot be given at this time, because frankly we don't know. The implementation of Lightning Network we feel has the most potential is LIT, because it supports multiple currencies in its protocol (where LND is bitcoin-only at the time and requires significant work to support other currencies, which is an essential part of being able to work across multiple blockchains).
LIT is open source and there's nothing secretive about its progress, you can see the development on Github. We even have our lead dev James Lovejoy (u/jamesl22) close to the action and contributing to it where possible (and our team as well through testing it on the Vertcoin chain).
So we're not developing LN or AS ourselves, we're just ready with our blockchain technology whenever it becomes available.
If we have any real progress that has some substance, you can expect us to let the world know. We're not interested in fluffy marketing - we post something when we achieve real progress. And we are not keeping that secret.

How do I Choose the Right Vertcoin Wallet?

Deciding what Vertcoin wallet you should choose can be a difficult process. You can choose between three different wallets: Core, Electrum and Paper. Once you decide you can use the "How to Setup Your Vertcoin Wallets" video guide to assist you.

Core

The Core wallet is the wallet that most people should use. It will store the entire blockchain (~2GB) on your computer. The Core wallet is the only wallet that fully supports P2Pool mining. You will also have to use the Core wallet if you plan to run a P2Pool node or any Vertcoin related server.

Electrum

The Electrum wallet is a light wallet for Vertcoin. You do not have to download the blockchain on your computer, but you will still have your own private keys on your computer. This is recommended for people who don't need to store Vertcoins for very long and just need a quick but secure place to store them.

Paper

The Paper wallet is as the name implies, a physical paper wallet. When generating a paper wallet you will get a pdf that will need to print out. A paper wallet is normally used for long term storage since it is the safest way to store Vertcoins. A paper wallet can also be called "cold storage." Cold storage references the storage of your coins offline, preventing you from getting hacked over the internet.

Ledger Nano S

The Ledger Nano S is a hardware wallet designed by Ledger. A hardware wallet is similar to a paper wallet since it is normally used for cold storage. The hardware wallet is on par with the security of a paper wallet while being easy to use and setup. Note: You should never mine directly to a Ledger hardware wallet.

How do I start mining Vertcoin?

We have many guides available for you to use depending on your computer specifications.
Nvidia GPUs on Windows
Nvidia GPUs on Linux
AMD GPUs on Windows WARNING: Very unprofitable, AMD optimized miner is coming very soon.

Where can I get the One Click Miner (OCM)

You can get the latest version of the One Click Miner in the Vertcoin Discord. The download is pinned to the top of the #oneclick channel.

What do all the Numbers Mean on P2Pool’s Web Interface

I've seen a lot of confusion from new miners on public p2pool nodes, so here's a primer for the most common static node page style, for first time miners: https://imgur.com/K48GmMw

Active Miners on this Node

Address - This is the list of addresses currently mining on this node. If your address does not show up here, you are not mining on this node.
Hashrate
This is a snapshot of your hashrate as seen by the node. It will fluctuate up to 15% from the hashrate you are seeing on your mining software, but will average out to match the output in your mining software.
Rejected Hashrate
This is the amount of your hashing contribution that is rejected, both in hashrate and as a percentage of your total contribution. Running your own p2pool node minimizes this number. Mining on a node that is geographically close to reduce lag also minimizes this number. Ideally you would like it to be less than 1%, but most people seem happy keeping it under 3%.
Share Difficulty
This speaks for itself, it is the difficulty of the share being currently worked on. Bigger numbers are more difficult.
Time to Share
This is how long you need to mine before you will receive any payouts, or any "predicted payout." The lower your hashrate, the higher your time to share.
Predicted Payout
This is the reward you would receive if a block was found by p2pool right now. If it reads "no shares yet" then you have not yet been mining the requisite amount of time as seen in the previous "time to share" column.

Status

Network Hashrate
This is the total hashrate of all the miners mining vertcoin everywhere, regardless of where or how.
Global Pool Hashrate
This is the total hashrate of all the miners mining vertcoin on this p2pool network, be it the first network or the second network.
Local Pool Hashrate
This is the total hashrate of all the miners mining Vertcoin on this node.
Current Block Value
This is the reward that will be given for mining the current block. The base mining reward is currently 50 VTC per block, so any small decimal over that amount is transaction fees being paid by people using the network.
Network Block Difficulty
This is the difficulty of the block being mined. The higher the number, the higher the difficulty. This number rises as the "Network Hashrate" rises, so that blocks will always be found every 2.5 minutes. Inversely, this number falls when the "Network Hashrate" lowers as well.
Expected Time to Block
This is a guess at how much time will elapse between blocks being found by this p2pool network. This guess is accurate on average, but very inaccurate in the short term. Since you only receive a payout when the network finds a block, you can think of this as "Estimated Time to Payout."

Why is P2Pool Recommended Over Traditional Pools?

Decentralisation

P2Pool is peer to peer allowing a decentralized pool mining system. There are many nodes setup around the world that connect to each other too mine together. Many other coins have 1 very large pool that many miners connect to and sometimes the largest pool can have 51% or more of the network hash rate which makes the network vulnerable to a 51% attack. If P2Pool is the largest network then that prevents the Vertcoin network to be susceptible to a 51% attack as P2Pool is decentralized.

PPLNS Payout System

P2Pool uses a PPLNS (Pay Per Last N Shares) payout system which awards miners more the longer they mine, sort of like a loyalty system. A drawback to this system is that part time miners that aren't 24/7 won't be able to earn that much.

2 Networks

While Network 1 is catered towards 24/7 miners and people who have dedicated mining rigs, Vertcoin has a second P2Pool network where part time miners and miners under 100 MH/s can go to mine.

Mines Directly to Your Wallet

P2Pool mines directly to your wallet and cuts out the middleman. This reduces the likely hood that the pool will run away with your coins.

No Downtime

Since P2Pool is decentralized and has different nodes for you to choose from there will be no downtime because the P2Pool network does not die if one node goes down. You can setup a backup server in your miner so that you will have no downtime when mining.

Anonymity and Security

When using P2Pool you use a wallet address making your real identity anonymous, you are simply known by a random 34 letter string. Along with using a wallet address instead of a username there is no password involved P2Pool preventing the possibility of cracking your pool account (If you were on a traditional pool,) and stealing all your coins.

How do I Find a Nearby P2Pool Node

You can find the public p2pool nodes the the P2Pool Node Scanners. If you want to find a network 1 node go here. If you want to find a network 2 node go here.

How do I setup a P2Pool Node?

Linux P2Pool Setup
Windows P2Pool Setup (Text)
Windows P2Pool Setup (Video) This guide setups a network 2 node. When downloading Python download the 32bit version, not the 64bit. Downloading the 64bit version causes problems with the twisted install.
How do I setup a change my node to network 1 or network 2?
In the P2Pool startup script when you type the --network flag add vertcoin1 for network 1 and vertcoin2 for network 2 right after.

How do I Buy Vertcoin?

You can see a video guide on Youtube, "How to Buy Vertcoin with Fiat Using Bittrex and Coinbase"

How can I get help with "X problem?"

The quickest way for you to get help is for you to join the Vertcoin Discord Group. We almost always have knowledgable Vertans, whether that be developers or experienced Vertans, online to help you with whatever problems you may have.

How can I donate to the Developers?

You can donate to the dev fund at https://vertcoin.org/donate/. You can select what you want your funds to go to by donating to the corresponding address. You can also see how much funding is required and how much we have donated.

Where can I see what exchanges Vertcoin is on?

You can see what exchanges Vertcoin is listed on at CoinMarketCap. You can see what exchanges Vertcoin has applied to be on at this google docs spreadsheet.

Where can I see Vertcoin's Roadmap?

The Vertcoin developers currently have a trello board where you can see the goals and what the status of said goal is. You can also vote on what you want the Vertcoin developers to focus on next.

What is the Status of the AMD Optimized Miner?

The AMD Optimized Miner internal beta is aiming to be ready by the end of September. The AMD Optimized Miner is currently being developed by @turekaj on the Vertcoin Discord. He currently does not have a Reddit account and Discord is the only way you can contact him.

What Does Halving Mean?

Halving means that the block reward for miners will be split in half. Halving happens around every 4 years for Vertcoin or 840,000 blocks. This means around December miners will only receive 25 VTC per block instead of the current 50 VTC per block.
If you would like to add another question to this list please comment it and I will get around to adding it ASAP.
submitted by asianboygames to vertcoin [link] [comments]

Lisk Highlights Weekly roundup March 9th 2019. The week in which a Lisk Sidechain Project became a Founding Member of a Brussels-based Blockchain Organization.

Hello everybody. The LISK project and it's enthusiasts are always busy, and this week past has certainly been no exception.
Seeing is believing, so here is a recap of the highlights and interesting items from the past week on the LISK subreddit and beyond.....
 

Lisk, Hong Kong Future and Costa Rica Past.

Asia Crypto Week is fast approaching (11-17th March) and blockchain/crypto enthusiasts and industry veterans are preparing to gather together, share their knowledge and nurture mass crypto adoption. Among the events taking place on March 15th will be a meetup at the University of Hong Kong catering to the University's Blockchain Club and anyone else that might be in the area and interested in all things blockchain. Lisk is co-hosting the event in collaboration with 9up.io, who are a group of blockchain enthusiasts based in Hong Kong and who also are a prospective Lisk delegate. Max Kordek, Lisk's Co-Founder and CEO, will be the main speaker at this event on the 15th March, as he will be in town from the 10th to 15th for Asia Crypto Week and Token 2049.
Tickets for the event can be secured HERE. Hong Kong has been a strategic position in the blooming Blockchain industry in recent years, so I will be interested to see what emerges from this meetup and indeed Asia Crypto Week as a whole.
 
Now from the future to the past, and the TicoBlockChain 2019 conference in Costa Rica this past month. Lisk Central America have linked us up with a Stylish Montage Video of the event with interview snippets interspersed within. Software Architect, Jake Simmons, represented LISK Central America with his presentation on 'Scaling blockchain horizontally with Lisk'. Jake's presentation took part in the midst of the conference's speaker collection of lawyers, developers, educators, banking executives, investment professionals, their keynotes, panel talks and fireside chats.
For those of us who could not make the trip we have Lisk community member illuciferium to thank for filming Jake's presentation and uploading it to Youtube HERE. You can also see Jake being interviewed at the conference by Ricardo Barquero, Nimiq Community Manager in this VIDEO. Well done all!
 

Lisk Support Adds a Meetup Map.

LISK support and TonyT908 are back with a new way for Liskers to visualise all the upcoming meetups and events related to the project. The Events Map is a more visually exciting way to discover all the upcoming events around the globe rather than reading through reams and reams of text. When you are ready to delve more into the details of a particular meetup then you can visit the official Lisk Events page to read further details.
Special thanks should be given to Global Delegate Team (GDT) for their guidance to TonyT908 and for providing the funds necessary to license to mapping software. Edward Trosclair AKA StellarDynamic came up with the original concept, so he should take a lot of praise also. Great work all round, folks.
 

Lisk Sidechain Project Knows the Key is to Stand Out from the Crowd.

Chief R&D Officer and Co-founder of GNY (bringing Machine Learning to Lisk), Richard Jarritt informed the project's followers on the GNY telegram that "only by having a platform that is the first to crack machine learning on chain is how we can differentiate ourselves from the countless projects in our space". He continued, "I look at the whole crypto space and at the moment having working code is key, that is the drive here".
So on to the coding and Machine learning integration, how is that going? Well, this week Leo Liang, Head of Blockchain for GNY will be presenting the coding solution for how information is read by the machine learning off the chain. The GNY team always has tech meetings on Tuesdays to present the work that has been done the week previously, where they update each other on progress and then set the next task. Upcoming shortly for the team will be a demo of how the read function and Machine learning are running together and moving onto the reply function.
The GNY Github is due to go live by the end of this month, following an important GNY staff conference in London. It's going to be an exciting month and I am really looking forward to it.
 

Lisk Sidechain Project becomes a Founding Member of a Brussels-based Blockchain Organization.

On the 6th of March the MADANA project were one of the 105 companies, startups and organizations that came together to found INATBA. The International Association for Trusted Blockchain Applications (INATBA) which will be a Brussels-based organization working to make blockchain more accessible, safe, and usable for everyone. This was an initiative of the EU commission and the Directorate General for Communications Networks, Content and Technology or "DG Connect", whose responsibility is managing the Digital Agenda across Europe. It is hoped that this will now allow projects in the blockchain and distributed ledger technology eco-system have access to a global forum to interact with regulators & policy makers.
 
Next up for the INATBA is its first General Assembly on 3rd April where the 105 founding members will hopfully be joined by fresh additions to the memberlist. The INATBA website is now live at http://inatba.org and they have a "Join" page which is accepting applications for new members to join Madana and the likes of Iota, Cardano, Gnosis, and the Quant Network for the April 3rd launch!
 
That's it for the recap of the weeks highlights. I hope it brought you up to speed with all the weeks good news.
These highlight posts also go out daily on the….
LISK Highlights exclusive Telegram group
LISK Highlights Twitter
The highlights are also included in my weekly roundup on the LISK Highlights Medium account and the Bitcoin talk forum's LISK thread, so keep an eye out for them on these outlets also.
 
Keep the faith Liskers! 👍
submitted by John_Muck to Lisk [link] [comments]

Something is rotten in the state of DOGE mining

Shibes, something stinks in doge land. A problem in the design of dogecoin means that dishonest (or perhaps we should call them "creative") miners can take a disproportionate share of rewards, leaving everyone else to earn less than they deserve. Many of you have probably noticed that calculators estimate payouts larger than what you earn in practice (for example, dustcoin estimates ~1500DOGE/day @ 200KH/s while Non Stop Mine pays about a quarter of that rate), and most have written it off as bad luck: the blocks your pool found happened to be small, or your pool happened to be unlucky, and such is life. At least another friendly Shibe is having a better day, and it'll come around in tips anyway! Unfortunately, the truth is much darker.
The "random" DOGE rewards per block are not random. In fact, the value of each block is predetermined by a simple equation applied to the hash of the previous block. A creative miner can take advantage of this fact to mine dogecoin when the potential reward is high, and switch to litecoin when the potential reward is low. During some rounds, the reward is so small it isn't worth the electricity spent finding it; during more rounds, the reward is less than can be earned mining LTC; in a few rounds, the reward is spectacular. Honest miners mine with the expectation of earning an average of 500,000 DOGE per block, but when people are selectively mining the high-profit DOGE rounds, the average reward falls for honest miners.
So the question is: is this problem theoretical, or are honest miners really losing value to cheaters? I spent some time digging, and it appears that cheating is rampant! There are a few ways cheating can be detected.
If there is outside competition for high-value blocks, then pools should on average be finding blocks worth less than 500,000 DOGE (because some of the valuable blocks, but none of the low-value blocks, will be found by cheaters). The largest pool, Dogehouse, reports some useful averages: over all time, the pool has found 11,241 valid blocks worth 5365077071.0746 DOGE, for an average of 477,277 DOGE (including fees, which should actually raise the average above 500,000!). That's 4.5% below the expected average block value. Is it simply bad luck? No. With so many blocks found, there's about a 7% chance that the average will be above 505,000 or below 495,000; there's a <<1% chance their average will be above 510,000 or below 490,000, and effectively NO chance of seeing an average below 485,000. 477,000 is simply preposterous. Dogepool is either mind-bogglingly unlucky, or something is fishy.
Maybe Dogehouse is doing something fishy...but we can look at other pools. Dogechain's pool's all-time average block value is similar: 478847 DOGE. They're a smaller pool so the odds of this being bad luck aren't astronomical, but it's not very likely. Fast-pool's average is 477892. They're big enough that the odds are again astronomical.
And this only accounts for people cheating outside of the pools. Cheaters can operate inside our pools (more on this later)!
Maybe there's something wrong with the pools. They mostly run similar software. All their owners could be lying to us. We can check for signs of cheating independent of the pools: if more people are mining high-value blocks than low-value blocks, the hash-rate will be higher when the next block is high-value, so high-value blocks will be found faster than low-value blocks. Here's what you find if you look at 5000 recent blocks (blocks 80,001 to 85,000) and measure the average time to find a block, broken out by the block value:
I had to drop about 50 blocks which were missing good timestamps, but they're evenly distributed and shouldn't skew the averages.
The pattern is clear: the network is finding high-value blocks significantly faster than low-value blocks. Low-value rounds take as much as 10% longer than intended, and high-value rounds take around 5% less time than intended. Significant hashrate belongs to miners that cheat.
I mentioned cheaters can operate inside our pools. The payment algorithms used by most pools were carefully designed for bitcoin's (effectively) fixed block reward. They reliably protect against cheaters trying to hop in and out of pools based on short-term profitability, by making payouts solely dependent on the unknowable future (the straightforward pool payment schemes allow cheaters to look at a pool's recent history and use that to take an unfair share of its earnings; read this awesome paper for details). Since the future reward for a bitcoin pool is completely unknowable, PPLNS does not protect against a hopper who knows the future. In the case of Dogecoin, the future reward IS knowable, and PPLNS offers no protection.
Dogehouse is so big we can reasonably assume they'll find any particular block. Dogehouse is using a PPLNS target similar to an ordinary round's length. Someone who mines only during high-value rounds will, with high confidence, earn significantly more DOGE per share submitted than someone who mines Dogecoin 24/7. They also experience much lower variance in earnings.
The random block reward size needs to be removed. It's fun, but it rewards cheaters. Developing a more secure random block value selection technique is possible, but based on observations of GitHub, I do not trust the Dogecoin creator to get it right. Even subtle errors re-open the opportunity for cheating.
While I believe cheating is already unacceptably common, many will disagree until it worsens. To force the issue, I've included everything you need to join the cheaters.
Patch dogecoin/src/main.cpp:
diff --git a/src/main.cpp b/src/main.cpp index 2af23af..8c32dad 100644 --- a/src/main.cpp +++ b/src/main.cpp @@ -1794,6 +1794,8 @@ bool CBlock::ConnectBlock(CValidationState &state, CBlockIndex* pindex, CCoinsVi prevHash = pindex->pprev->GetBlockHash(); } +fprintf(stdout, "Next block value: %lld\n", GetBlockValue(pindex->nHeight, 0, GetHash())); +fflush(stdout); if (vtx[0].GetValueOut() > GetBlockValue(pindex->nHeight, nFees, prevHash)) return state.DoS(100, error("ConnectBlock() : coinbase pays too much (actual=%"PRI64d" vs limit=%"PRI64d")", vtx[0].GetValueOut(), GetBlockValue(pindex->nHeight, nFees, prevHash))); 
Perl script to control cgminer:
#!/usbin/perl use strict; use warnings; my $ltcMiner = "192.168.1.1 4029"; my $dogeMiner = "192.168.1.1 4028"; open (INSTREAM, "dogecoind|") or die; my $lastPool = 0; # LTC while (my $line = ) { if ($line =~ /Next block value: ([\d].*)/) { my $val = $1; if ($val >= 70000000000000) { # High-value DOGE round if ($lastPool == 0) { # Switch from LTC to DOGE $lastPool = 1; &onoff($dogeMiner, "en"); &onoff($ltcMiner, "dis"); } else { # Already mining DOGE } } elsif ($lastPool == 1) { # Low-value DOGE round and currently mining DOGE $lastPool = 0; print " Switching to LTC\n"; &onoff($ltcMiner, "en"); &onoff($dogeMiner, "dis"); } else { # Low-value DOGE round; already mining LTC anyway } } } close (INSTREAM); exit; sub onoff { my $miner = shift; my $enDis = shift; open (OUT1, "|nc $miner") or die $!; print OUT1 "gpu${enDis}able|0"; close (OUT1); } 
Then, simply run two instances of cgminer with separate API ports, one configured for LTC and the other configured for DOGE.
submitted by DisappointedShibe to dogemining [link] [comments]

Check out Part 1 of our first Skycoin Official AMA with Synth!

Part 2 of the AMA posted here.
 
What is Skywire? Where does it fit in with Skycoin?
Skycoin is a blockchain application platform. We have multiple coins in the platform (Metallicoin, mdl.life, solarbankers.com, etc). We let people launch their own blockchain applications (including coins).
There are two parts to Skywire. The first part is the Skywire node. The second part is the hardware.
Skywire is one of the first applications we are launching on the Skycoin platform. It is one of our flagship applications that has been in development for several years. Skywire is basically a decentralized ISP on blockchain. It is like Tor, but you are paid to run it. You forward packets for your neighbors and you receive coins You pay coins to other people for forwarding your packets.
So it is like Tor but on blockchain and you are paid for running the network. Also, while Tor is slow, Skywire was designed to be faster than the current internet, instead of slower.
Skywire is a test application for monetizing excess bandwidth. Eventually the software defined networking technology behind Skywire, will allow us to build physical networks (actual mesh nets) that can begin to replace centralized ISPs. However, the current Skywire prototype is still running over the existing internet, but later we will start building out our own hardware.
Skywire is a solution for protecting people’s privacy and is also a solution to net neutrality. If Skycoin can can decentralize the ISPs with blockchain, then we wont have to beg the FCC to protect our rights.
Skywire is just a prototype of a larger system. Eventually we will allow people to sell bandwidth, computational resources and storage.
On the hardware side, the Skywire Miner is a like a personal cloud, for blockchain applications. It has eight computers in it and you plug it in and you can run your blockchain applications on it. You can even earn coins by renting out capacities to other users on the network.
 
How would your everyday, average Joe user access the Skywire network? Let's say from their phone…
We designed Skywire and Skycoin to be as usable as possible. We think you should not have to be a software developer to use blockchain applications.
Skywire is designed to be “zeroconf”, with zero configuration. You just plug in your node and it works. Its plug and play.
Eventually you will be able to buy a Skywire Miner and delegate control of the hardware to a “pool”, who will configure it for you and do all the work, optimize the settings and the pool will just take a small fee for the service and owner of the hardware will receive the rest of the coins their miners are earning.
You will just plug in the Skyminer and start earning coins. It will be plug and play.
Most users will not know their traffic is being carried over Skywire. Just like they do not know if they are using TCP or UDP. They will just connect their computer to the network with wifi or an ethernet cable and it will work exactly like the internet does now.
 
Are you completely anonymous on Skywire, or do you need to add a VPN and go through Tor for extra protection?
Skywire is designed, to protect users privacy much better than the existing internet. Each node only knows the previous hop and the next hop for any packet. The contents of the packet are encrypted (like HTTPS), so no one can spy on the data.
Since Skywire is designed to be faster than the existing internet, you give up a little privacy for the speed. Tor makes packets harder to trace by reshuffling them and slowing them done. While Skywire is designed for pure speed and performance.
 
Will Skywire users be able to access traditional internet resources like Google and Facebook over Skywire?
Yes. Most users will not even know they are using Skywire at all. It will be completely invisible to them.
Skywire has two modes of operation. One mode looks like the normal internet to the user and the other mode is for special applications designed to run completely inside of the Skywire network. Skywire native apps will have increased privacy, speed and performance, but all existing internet apps will still work on the new network.
 
How difficult will it be for a traditional e-service to port their products and services to Skywire / Skycoin? Are there plans in place to facilitate those transitions as companies find the exceeding value in joining the free distributed internet?
We are going to make it very easy. Existing companies run their whole internal networks on MPLS and Skywire is almost identical to MPLS, so they wont have to make any changes in most cases.
 
What is the routing protocol? How are the routes found?
Skywire is source routed. This means that you choose the route your data takes. You can chose routes that offer higher privacy, more bandwidth (for video downloads) or lower latency (for gaming).
Skywire puts control of the data back to the user.
 
I have also understand that the protocols underlying in skywire will be/already are pretty different from the Internet protocols. Taking into account the years of research applied to the current Internet and the several strategies for routing it doesn't seem an easy task to rebuild everything and make it work. Where can be found the information about the routing strategies used in skywire?
The routing strategies are user defined. There is no best routing strategy that is optimal for every user or application. Instead we allow people to choose their routes and policies, based upon the application, time of day, available bandwidth, reliability and other factors.
This is actually the way the original internet worked. However, it was scrapped because of the RAM limitations of early computers which only had 4 KB of memory. So the internet was built upon stateless routing protocols because of the limitations of the available computers at the time, not because the networking protocols were the best or highest performance. Today even a cell phone has 4 GB of ram and 1 million times the memory of a computer in the 1980s, so there is no reason to accept these limitations anymore.
Our implementation is simpler and faster because we are stripping away the layers of junk that have accumulated. The internet was actually built up piecemeal, without any coherence, coordination or planning. The internet today is a mishmash of different ad-hoc protocols that have been duct taped together over decades, without any real design.
Skywire is an re-envisioning of the internet, if it was built today knowing what we know now. This means simplifying the protocols and improving the performance.
 
How will the routing work if someone from Europe wants to access a video from a node in Australia (for example)? How do the nodes know the next hop if they cant read the origin or destiny of any packet?
If you have a route with N hops, then you contact each of the nodes on the route (through a messaging service) and set the route table on each route. Then when you drop a packet in the route, it gets forwarded automatically. You could have 60 or 120 hops between Australia and Europe and its fine.
Each individual node only knows the previous hop and the next hop in the chain. That is all the node needs to know.
 
Could you estimate a timeline for when Skywire will operate independently from the current ISP infrastructure?
I think Skycoin is a very ambitious project and some parts could take ten or twenty years. Even if we started with a network of a few thousand nodes and we were growing the network over 1% per day, it will still take a decade or two to conquer the Earth.
We are going to start with small scale prototypes (neighborhoods), then try cities. I think the first demonstration networks will be working this year.
 
How will bandwidth be priced in terms of coin hours and who determines this rate?
You could have 40 PHDs each do a thesis on this. The short answer is that an auction model has to be used (similar to Google’s Ad Words auction model) and the auction has to be designed in a way so that the bandwidth prices reach a stable equilibrium.
There are parts of Skycoin that are completely open source and public, like the blockchain and consensus algorithm and Skywire. There are secrets like the auction model and pricing, that are designed to protect Skycoin from being forked and to prevent competitors from copying our work.
We estimate that if a competitor was to start today, with 2 million dollars a year in R&D, that it would take them a minimum of eight years to develop a working bandwidth pricing model. And from experience in auction models for advertising networks, 80% of the competitors will fail to develop a working model at all.
A working, fair, decentralized bandwidth pricing model that was competitive with what we have would take even longer. There are very few people (less than 4) on Earth who have the experience in mathematics, economics, game theory and cryptographic protocols to design the required auction and pricing models.
One of Google’s secrets that allows them to dominate the internet advertising industry, is their auction model for ad pricing. That is what allows Google to pay the content producers the most money for their advertising inventory, while charging the advertising buyers the least.
Google’s auction models for pricing AdSense inventory are even more secretive and important than Google’s search algorithm. This is one of the most important and secretive parts of Google’s business. Even companies like Facebook, with billion dollar war chests have been unable to replicate to close the algorithm gap in this area. Expertise in these algorithms and their auction and pricing models is one of the reasons that Google has been able to extract advertising premiums over Facebook.
Even if a competitor raises a billion dollars and hires all the PHDs in the field and they had ten years to do research, I doubt they would be able to develop anything close to what we have now.
The history of bandwidth markets is very interesting and Enron tried to do a trading desk for bandwidth and bandwidth futures and it completely failed. The mathematical stability and predictability of the pricing of bandwidth under adversarial conditions is one of the major problems.
For instance, one of our “competitors” suggests that people will be paid coins if someone accesses their content. So why don’t you just put a website and then have 2000 bots go to it, to get free coins! How are they going to stop that.
Or if they are pricing bandwidth, if the price is fixed and the price is too low, then people will not build capacity and bandwidth will be insufficient and the network will be slow.
Or if the price is variable and adjusts with demands, what will stop someone from buying up the capacity for a link (“Cornering the Market”) to drive the price up 50x on links they control and extort money out of the other people on the network with a fake bandwidth shortage?
The pricing algorithm has to be stable under adversarial conditions. It is a very difficult problem, harder than even consensus algorithm research. Even if a competitor had unlimited funding and unlimited time, it is unlikely that they would find a superior solution to what we have and that alone nearly guarantees that we are going to win this market. It gets even more difficult if you need price stability and you admit any type of bandwidth futures, that allow speculation on future prices. This is a kind of problem like Bitcoin consensus algorithm that can only be solved by an act of genius.
We have a lot of experience in this area. It is hyper specialized and a very difficult area and is one of the areas that will give Skycoin a strong sustainable advantage.
 
Will there be a DNS for Skywire to register .sky domains?
Of course. We will definitely add some kind of DNS and name system eventually.
Remembering and typing public keys is too difficult. We want to make it as easy as possible. We want people to be able to register aliases (like screen names) so that people can send coins to aliases instead of having to type in addresses every time.
This will let people send 5 Skycoin to “@bobcat” instead of sending coins to “23TeSPPJVZ9HvXh6iYiKAaLNQroKg8yCdja”. This will be a revolution in usability.
 
When operating a Skyminer, will people in my surrounding area see it as a Wifi option on their devices?
You can configure it to expose a wifi access point. It depends on what you are trying to do.
 
While I plan on running a DIY miner regardless of the payout, will one of the first 6000 DIY miners built to the same spec as the official miner receive a worthwhile payout in Sky coin? What is the requirement for a DIY miner to get whitelisted (and earning Skycoin) on the Skywire testnet?
The reason we have white-listing on the testnet, is to stop too many nodes from joining the network at once. The network can only support so many nodes until we upgrade certain infrastructure (like the messaging/inter-process communication standard).
Eventually, all DIY miners will be whitelisted, but there will probably be a queue.
 
The Sky team is developing antennas by their own instead of buying or using technology already developed, why is such an effort necessary?
You can of course, buy any commercial antenna or wifi system and use it for Skywire.
We are developing our own custom antennas, to push performance limitations and experiment with advanced technology, like FPGAs (Field Programmable Arrays) and SDR (Software Defined Radio).
Existing wifi has a huge latency (15 milliseconds per hop). We need to make several modification to get that down to 0.5 millisecond per hop.
We have several custom PCB boards in development. We have a few secret hardware projects that will be announced when they are ready.
For instance, the Skywire Miner was in development for two years before we publicly announced it. Some of our next hardware projects are focused on payments at the point of sale and improving usability, not just the meshnet.
 
So back in January Steve was asked a question in the skywire group: "Steve, I am not a tech savage, so how can I understand better the safety running a miner if people on the network do DeepWeb stuff? So i will receive and redirect data packets with crazy things and also there is around 128 GB of storage on my miner. How can i have peace of mind of that?" He replied with "If you don’t run an exit node to the open internet it won’t matter you can run relay nodes if you’re worried about it, or proxy specific content." This seems to goes counter to what you mentioned regarding end-to-end encryption with Skywire. Will some people only be relay nodes and some will be exit nodes as well?
I think the question is wrong.
You only store content for public keys that you explicitly subscribe to.
This means if you do not like particular content or do not want it on your hardware, then you can just blacklist those public keys or don’t subscribe to them. Data never goes on your machine unless you requested it.
If you are holding data for a third party such as forwarding packets, it’s always going to be encrypted, so will look like random noise. There will never be anything in the data that causes legal liability. It will look the same as the output of a random number generator.
 
If using the skyminer, how much bandwidth will be necessary to run it at its best? And what about the router? It's true it has only 100mbits output? Is a 1gigbits connection necessary to reach toprates?
Hold on!!!! Let us get the software and test net running first, lol. We will know once we know what works for the testnet.
 
What will the price be for future Skynodes (formerly called Skyminers)?
We are working on ways of reducing the cost, such as by buying our own factory, doing custom PCB boards and using different materials.
The cheapest Skywire Miner node will be about $30 for a single node miner. We will have a very cheap personal Skywire “hardware VPN” node also.
The miners we are shipping now are for powering the network backbone and have 8 computers and are about $800 each. We sold people the miners for 1 BTC each so they can support development, but gave them a Skycoin bonus equal to about 1 BTC worth of Skycoin.
Then that money, went to fund the cost for developing the newer hardware.
submitted by MuSKYteer to skycoin [link] [comments]

Waggox Coin

Waggox Coin

https://preview.redd.it/2ep71q52rqr11.png?width=360&format=png&auto=webp&s=edfca70bde6de10ffca5a517d4be7a1e62c7c3e2
This protocol is predicated on the work of Evan Duffield (dash), (itself relies on Bitcoin, the work of Satoshi Nakamoto), elaborate with democratically-decided blockchain clear social contribution dead while not a central authority, to support the socially accountable decentralization of currency. Budgets for social contribution, usemerchant adoption, and usage incentivization, budget combining activities, development, and selling ar enclosed similarly as a three-system network and improved mining problem adjustment for higher distribution and growth, governance enhancements to push hyperbolic decentralization and democratic freedom and varied quantifiability and dealings speed enhancements.

A sophisticated cryptocurrency design in order to support market penetration and mainstream acceptance, Waggox give the better way out to centrally organized contributions, that is to make you your own bank. Because of the profitable nature of running a master node, owners of such are equivocally profitable, and in order to avoid dumping factor by the network with unnecessary master nodes or encouraging reckless master node operators, one condition must be fulfilled in order to become a master node owner–proof of ownership of a certain number of coins.

Waggox must not be in the master node itself, that means the proprietor can promote them each time, proof of possession is executed through keeping the cash in a positive way that makes them obvious to the entire network. And so, the variety of cash wished for a master node must be selected cautiously considering the fact that cash locked in master nodes approach they are now not available to end-users
Waggox is a digital asset system, killer of centralization with a strategic focus on worldwide growth and total acceptance by the people. To achieve this Waggox has chosen a high total coin supply of approx. Ninty eight million Waggox, as well as a highly available coin supply of approximately five hundred thousand Waggox currently in circulation, with more to mined. As the price per coin increases over time, in order to remain accessible, attractive and useful in emerging markets and be successfully adopted there, Waggox must sustain a high number of coins in circulation. In order to avoid unnecessary master nodes by locking up the coin supply, Waggox achieves this by setting proof of ownership for a master node at 1000 Waggox.

PRICE STABILISING EFFECT
Another major benefit of 1000 per master node size is the stabilizing effect it has on the coin price. Waggox’s highly attractive master node rewards structure makes buying the high number of coins needed attractive and worthwhile. Many master nodes will be formed by quick investors and enthusiastic supporters, each time removing 1000 coins from the market while increasing the value of the remaining coins. The high number of coins per master node implies a higher commitment level and with each master node being valued more, the turnover of master node ownerships remains relatively low as owners tend to stay invested over the longer term. The combined effect is the circulating coin supply, it’s growth rate and the value of each coin is to a certain degree stabilized, helping to create the price stability conditions needed for mass market adoption.

PROBLEMS
Mining of blockchain is carried out by dedicated miners who perform complex mathematical computations called “hashes”. Miners are rewarded for their work with a number of coins (depends on the coin emission factors). Hashes usually require a lot of time, energy(power) and resources to perform, and each hash has a similar chance as any other hash to find the block and win the blocks reward; A lot of hash power equals more chances to find blocks and their rewards. With the profitability of mining, a lot of people creates powerful computers and devices running specialized software to have a greater chance to win the block reward, in doing so earn more than the average miner. This problem has led to the what has become an arms race (take the case of Bitcoin mining). In bitcoin mining, big players who can afford to purchase millions of dollars worth of mining equipment, are really at an advantage compared to those that cannot purchase such. They easily find the block more and more, and as such the difficulty keep on going higher. This we make the smaller miners lose out of the game. Centralization comes into play and the unfair concentration of mining and it’s related rewards into the hands of the few. Powerful pools with higher power create problems and make centralization thereby remove decentralization from the people who cannot afford such hard end hardware. Dumping network is also created or happen in such instances because of the difficulty of getting rewards. As miners come in or out of a network, the total hash rate of that network varies. and when a network looks back over the last blocks to see how close to the ideal block time blocks were found, it adjusts a “difficulty” function up or down depending on whether blocks were found early (easily) or later than the intended block time. even when the mining pools have left the network, mining difficulty stays high and lowers with a certain (distorted) delay only when the network readjusts to the new much lower hash power remaining in the network. Drops in hash power can then leave the network unstable, impact transactions and even leave them hanging in the system. Advanced features like PrivatePay and InstaPay may also be affected. Mining pools dump sell their coins there may be an undesired effect on coin price stability, a key factor in the mass-adoption of a cryptocurrency.

SOLUTION
Waggox will moves to remove jump and dump mining from its network and better cope with hash power fluctuations, which ensure a smoother and fairer adjustment in mining difficulty. Smoothing is achieved by adjusting mining difficulty based on a moving average of time taken to find blocks over the last 24 hours, eliminating much of the effect caused by miners hopping onto and off of the network-based solely on when a coin is easiest to mine. In this way individual miners have a fairer share in the mining and related rewards, transactions are confirmed smoothly and transaction features like PrivatePay and InstaPay are highly performant. Fair mining code not only immediately benefits individual miners and the Waggox network but forms part of a greater strategic and technical enabling of upcoming features yet to be announced related to empowering “the average Joe”; a powerful component of our mass-adoption strategy

Ticker: WAGGOX
Coin supply: 98 million Waggox
Reward: 25
RPC Port: 27270
P2P Port: 28280
Masternode Reward: 5 Waggox
You need 1000 WAGGOX (1000 WAGGOX), a vps-server (Ubuntu 16) and an WAGGOX wallets to setup a masternode. My preferred VPS is VULTR

Website: WAGGOX
Source Code: WAGGOX SOURCE CODE
WAGGOX WALLET: WAGGOX UBUNTU WALLET
WAGGOX WALLET: WINDOW WALLET
EXPLORER: WAGGOX EXPLORER
Pool: WAGGOX Pool
Master Node Installation Guide MASTER NODE

Social Media:
  1. Twitter
  2. Discord
  3. Reddit
  4. Altcoin Announcement
  5. Bitcointalk
submitted by waggox to u/waggox [link] [comments]

Q&A series v. 1.0

Building Whalesburg
We are getting questions from investors and bloggers who are not professional miners. They know in common words what it means, what hardware miners use but are not so familiar with numbers of this field. We regularly get questions how much profit Whalesburg will bring to our customers. So we decided to write a post which explains the basics of mining ROI.
This article is not for skilled miners; some details are not covered here!
What is typical ROI in mining, how Whalesburg will improve it?
Mining ROI hardly depends on the hardware you use (GPU or ASICs), cryptocurrency prices, network difficulty, hashrate and other variables, which changes over time. It means that real data may hardly differ from those provided in this article.
Let’s refer to a well-known website Cryptocompare.com on the page of Antminer S9 (https://www.cryptocompare.com/mining/bitmain/antminer-s9-mine). This website is quite popular and has an API used by thousands, so the data seems to be trustworthy. It tells that the price of a single piece of S9 is $2,725, its power consumption equals 1,375W, return per year is $3560 (incl. electricity costs) and ROI equals 130%.
This way you will get $3560 — $2725 = $835 net income at the end of the first year if variables below will remain same. The second year will bring you $3560 more. Note calculations was made using price of 1 BTC = $10516, electricity price $0.12 per kW/h and network difficulty = 18,633,837 PH/s.
Now let’s take a look at whattomine.com website on SHA 256 algorithm: screenshot is in a Medium post
As you can see, there is an option to mine UNIT which more profitable than BTC by 31% (!!!). So switching some of the pool’s hashpowers to this coin and converting UNIT to BTC on the fly could increase miners profit. This is the main concept of Whalesburg smart mining pool.
There is another problem — low UNIT’s network hashrate which can prevent this coin being such a profitable one if we will switch all our powers to it.
We are developing an algorithm which will vary hash powers among new coins and split profits between all participants. So, if someone will mine COIN1 with 130% BPR (BTC Profit Rate) and other will mine Bitcoin with 100% BPR — each of them both will get 15% more profit than just mining BTC. A module which responds for payouts will convert them to BTC by intent and split rewards among participants with PPLNS method.
Same picture we can see on other algorithms. For example our MVP use Ethash: screenshot is in a Medium post
Will your partners who are mining hosting companies hold WBT or they will propose Whalesburg to their clients?
All partners will have a will to hold WBT tokens for their clients, and they agree to such terms. The fee of 0,45% is cheap; additionally, they get a monitoring tool built to fulfill their needs. It is a win-win deal. Clients of our partners are investors, not IT geeks. They don’t need to hold these tokens to see increased ROI in reports. We offer services to any size mining facilities. They will want to hold our tokens and use our software. Can you make some more concrete arguments in favor of Whalesburg regarding time-saving and increased ROI?
Time-saving:
Now miners need to set a bunch of tools like EthMiner, Autominer, Claymore, Afterburner, and others. We incorporate all this functionality in one. Miners need to analyze the profitability of dozens of coins, look for good pools, create and run a .bat or .sh file to stop/run miners. They need to understand this all! Miners need to monitor the state of their hardware manually, and if something happened (drops of hash rate), they need to become a hardware doctors and to heal their farms. Let me tell you a story. Miner has a mining rig built with 8 GPU cards. He mines ETH with X MH/s. Suddenly he finds that hash rate become 0.6X MH/s — this is a 40% drop!!! But all the cards are working, responding at the same delay and have the same hash rate which is (0.6X)/8 MH/s. So Miner takes out GPUs one by one and restarts this rig until he founds one GPU card which causes a problem. He replaces this card with another one, and his rig’s hash rate returns to X MH/s. He still doesn’t know what is wrong with his GPU card. The Whalesburg monitoring tool can prevent failures and diagnose problems automatically and notify Miner. Even try to heal it disconnecting card programmatically.
Return rate:
A long time ago we experimented with my friends who own mining rigs and who were mining ETH. We’ve chosen most popular “smart mining pools” like Nicehash, Miner gate, suprnova.cc and solo mining mode with Claymore miner. The last mode was to mine with Whalesburg proof-of-concept solution — it was EthMiner + Autominer which connects to a pool of the most profitable coin among EtHash algorithm. So we connected five mining farms of the same hash rate to each of these modes and start to gather live statistics. A week was gone, and we calculated profits, rates, metrics: Lowest was solo mode mining with Claymore (obvious reasons — low hash rate, high difficulty). And still it brought to rig owner around 80% to average experiment income; Then go Nicehash and Minergate with 90% of average income, and both more-less were looking similar. Suprnova.cc was the best among all the previous and gave 115% of average experiment income. Whalesburg.com chart was hopping from one coin to another frequently at the start, then it stabilized and showed 125% of average income.
Why we generate more profits, strong part:
The first server-side auto-witching algorithm. The one in the world — all other smart pools leave this to a clients side. Transparent fees. Blockchain-based accounting shows we are not hiding a penny and using actual exchange rates. We have more Ethash coins already, at the start. We have other architecture that other mining pools, the proprietary software we coded our own from scratch. To be confident we can promise at least +15% income to whatever they use now.
Weaknesses:
Whalesburg is in the early stage. We have just released an MVP. Our pool’s hashrate on start will be low comparing to the biggest pools on the market. This is what we need to work out, but it will be easy.
Whalesburg team
Join telegram chat: https://t.me/whalesburg
Test our MVP: http://pool.whalesburg.com
Stay tuned!
submitted by whalesburg to Whalesburg [link] [comments]

Bitcoin Mining: Everything you need to know

Bitcoin mining is a term that everyone in the cryptocurrency and even many outsiders are familiar with. This is a process performed by high-powered computers (also known as nodes), which solve complicated computational math problems.
While distinct, there are certain similarities between bitcoin mining and actual mining for precious metals such as gold, for example. Both processes are carried out with the intention to earn a reward.
Furthermore, bitcoins actually exist in the bitcoin protocol but they haven’t been brought out yet – just as gold exists in the ground but it hasn’t been mined yet.
But the aim of bitcoin mining is, however, twofold. For once, when the above-mentioned high-powered computer or any other type of mining hardware, for that matter, successfully solves the complex math problem on the network of Bitcoin, they produce a new bitcoin.
On the other hand, by solving the computational math problems, bitcoin miners are actually making the payment network a secure through the proof-of-work consensus algorithm.

WHY IS BITCOIN MINING NECESSARY?

In order to break down bitcoin mining, there are a few important considerations that need to be taken into account.
Consumers tend to trust different types of printed fiat currencies because they are backed by central banks. In the US, for instance, this is the Federal Reserve. This is even true for digital payments made with fiat currencies.
Bitcoin, however, is not regulated by any central authority. It can be said that it is ‘backed’ by the computing power, which secures the network. This vast network of computers and mining hardware records transactions and make sure that they are accurate.
Unlike central authorities, however, bitcoin miners are spread throughout the entire world and record the transactional information on a public ledger available to anyone. This ledger can be viewed using a block explorer and there are many different websites that provide this service.
In other words, bitcoin mining is necessary for two different reasons – first, it is needed to create new bitcoin and second, it’s needed to confirm the transactional information. So, in theory, if you don’t want to buy Bitcoin, you can earn it through mining. Whether or not that’s efficient for you as an individual miner, however, is a different story.

HOW DOES BITCOIN MINING WORK?

In order for a bitcoin miner to get block rewards, there are two conditions which need to be met. First, the miner needs to confirm a certain amount of transactions and second, which is the trickiest part, solve a complex computational math problem.
Put simply, if that’s at all possible, each miner is competing with all of the others to come up with a 64-digit hexadecimal number which is referred to as a “hash” which is less than or equal to the hash which is targeted. In other words, the computer will be spitting out different hashes at a certain rate per second guessing all of the possible 64-digit numbers until they reach the correct solution.
Therefore, computational power is essential – the more powerful your mining equipment, the larger hash rate per second you’d be able to achieve. This is why the Bitcoin mining hardware is particularly important. Naturally, the cost of mining would be based on a the operation costs such as electricity, internet connection, hardware maintenance, and so forth.
This is the main reason for which back in 2013 bitcoin miners started to use machines which were specifically designed for mining cryptocurrencies. These are called Application-Specific Integrated Circuits or ASIC mining, for short. ASIC mining devices can cost a serious amount of money but are more efficient than traditional computers.
There are a few important things to be considered when it comes to BTC mining. These are some of its pillar components, so to speak.
  1. Blocks
One of the things to be aware of in the world of Bitcoin mining is blocks. Transaction data is recorded in files which are called blocks. Think of it as a page from your city’s recordbook. Blocks are organized into a chain in chronological order – hence, blockchain. New transactions, as they are being confirmed by miners, go into new blocks, with each new block is being added to the end of the chain. This is why blockchain is also referred to as records of blocks.
  1. Block Rewards
Is Bitcoin mining profitable? This is probably the most commonly asked question. Unfortunately, there is no one answer. Block rewards are what miners compete for. Other cryptocurrencies such as Bitcoin Cash, for instance, also have their own block rewards which differ from those of Bitcoin.
At inception, every single bitcoin block reward was worth 50 BTC. However, the protocol works in a way where the block reward is being halved after 210,000 blocks have been discovered. This takes roughly around four years to complete. As of July 9th, 2016, the reward for discovering one block is 12.5 BTC.
So is Bitcoin mining profitable? It depends. One would have to calculate the current block reward based on the current prices and compare that to the cost of mining, which varies from miner to miner.
It’s worth noting that the reward for successful Bitcoin miners will drop once again in May 2020 and it will decrease to 6.25 BTC per block from the current 12.5.
  1. Hash Rate
To put it in the most basic terms, hash rate represents the speed at which bitcoin mining hardware can guess the correct hash. Therefore, the faster your hash rate is the higher the chances of discovering the new block you have. BTC mining has become highly competitive and, as such, you need to consider getting powerful bitcoin mining hardware. Individual miners, can, on the other hand, take advantage of cloud mining or mine a coin with lower difficulty, but more on that later.
  1. Difficulty
The difficulty of bitcoin mining is adjusted frequently in order to maintain an average time of about 10 minutes to process a block. The rate is recalculated every 2,016 blocks.
In case you wonder why ten minutes – it’s because bitcoin developers have decided that this is the time needed for a steady and diminishing flow of producing new coins.

WHAT IS A MINING POOL

When it comes to cryptocurrency mining, a mining pool is the combined resources by miners who are sharing their overall computational power over a network in order to split the reward equally based on the amount of work that they have contributed to discovering a new block.
A “share” would be awarded to each member of the mining pool who manages to present a valid partial proof of his work. Mining pools became popular as the difficulty of bitcoin mining increased over time and when it became apparent that individual miners could no longer compete with bigger pools and large-scale mining operations.

WHAT IS CLOUD MINING

Cloud mining, on the other hand, is what allows individual miners to participate in the process without having to purchase particularly expensive bitcoin mining hardware.
If you want to take part in BTC mining but you don’t want to spend the time and resources to get powerful machines, you can use shared processing power provided by remote data centers. The only thing you’d need is a home computer. Generally, there are three types of cloud mining that you can take advantage of. These include:
  1. Hosted Mining
You can lease a mining machine which is hosted by the provider.
  1. Virtual Hosted Mining
This is a method which would require you to create a virtual private server and after that install your own mining software.
  1. Lease Hash Power
Cloud mining also allows you to lease a certain amount of hash power without having the best bitcoin mining hardware. This is likely to be the most popular method of all. Most of the providers offer comprehensive calculators that you can take advantage of to determine the current profitability based on the resources you are ready to spend.
However, it’s important to pay special attention when it comes to cloud mining as there are fraudulent service providers. It’s crucial to make proper and in-depth due-diligence, especially if you intend to lease hash power. One of the largest cloud Bitcoin mining companies out there is Genesis Mining.

ENERGY CONSUMPTION: THINGS TO BE AWARE OF

Mining bitcoin is intentionally designed to be energy intensive. The computational power needed to solve the abovementioned complex math problems requires a lot of electricity to power up the specialized mining hardware.
On the flipside, it requires even more resources to attack the network than to defend it, making Bitcoin the most secure blockchain today.
In fact, there is an entire pseudo-environmentalist brigade which aims to have the regular user believe that Bitcoin mining would somehow be the death of the planet. A lot of their arguments revolve around the fact that large data centers used for carrying out the math computations use tremendous amount of electricity. However, Bitcoinist recently outlined three reasons for which this rhetoric is complete nonsense.
According to clean energy researcher Katrina Kelly-Pitou, the entire debate on the overall electricity consumption by bitcoin mining facilities is headed in the wrong direction. The research outlines that electricity consumption can increase while, at the same time, have minimal impact on the environment. This is because those facilities gradually begin to use more efficient, sources of energy which are renewable. Not only does this make mining more profitable, but it also lowers the impact on the environment. The researcher also outlined that banks use three times more electricity than Bitcoin’s network.
What is more, a brand new report concluded that 80 percent of Bitcoin mining is running on renewable energy. This is unsurprising since miners are naturally incentivized to seek the cheapest and cleanest sources of energy, many of which are renewables such as hydroelectricity (e.g. Iceland).
If you’re worried about Bitcoin consuming too much energy, you might want to think twice about lighting up the Christmas lights this year. That’s right – the lights that American consumers alone use to decorate their homes for the occasion make up a gigantic 6.63 billion kilowatt hours of electricity consumption every single year. That’s more than the entire national energy consumptions of a lot of the developing countries every year. For example, both Ethiopia and El Salvador used less electricity per year.
However, if you decide to set up a mining rig in your garage, you can most definitely expect a more expensive electricity bill next month.

BEST BITCOIN MINING HARDWARE: THINGS TO CONSIDER

There are a few key parameters to look out for when it comes to choosing the best bitcoin mining hardware. These include:
Naturally, you want to be aware of how much electricity does your miner consume. The lower this number, the better.
As we explained above, the hash rate is essential for bitcoin mining. The larger this number is, the better the machine is, generally.
This measurement accounts for the efficiency of your machine. If this particular number is low, it means that the machine will consume less power for the same amount of work done by the machine.
There is a range of different devices produced by some of the largest companies in the field such as Bitmain Technologies, Canaan Creative, Halong Mining, Innosilicon Technology, and others of the kind.

WHAT ELSE CAN YOU MINE?

Bitcoin is not the only cryptocurrency which can be mined. It’s worth noting, though, that if you are using a specialized cryptocurrency mining hardware you’d have to check the compatible digital currencies, as some of the devices would only allow you to mine selected cryptocurrencies. However, apart from Bitcoin, other popular choices include Bitcoin Cash, Monero, Dogecoin, Litecoin, and so forth.

CONCLUSION

If you managed to make it thus far, you should have a general understanding of the main principles behind bitcoin mining and why it is essential to its network.
At the same time, bitcoin mining represents an alternative method to acquire the digital currency. Of course, if you don’t feel like investing time and efforts into it, let alone designating specialized bitcoin mining hardware, you can always check our detailed guide on to how to buy cryptocurrencies.
We’ve gone in depth on how to buy Bitcoin with Paypal, credit card, debit card, and even with cash. We’ve also covered some of the most popular platforms where you can buy Bitcoin.
Once you’ve done that, you can hop to our comprehensive guide to Bitcoin wallets and determine whether you want a web-based one or an offline, hardware solution instead.
submitted by SwitchKanun to hashflareinfo [link] [comments]

The Mike Hearn Show: Season Finale (and Bitcoin Classic: Series Premiere)

This post debunks Mike Hearn's conspiracy theories RE Blockstream in his farewell post and points out issues with the behavior of the Bitcoin Classic hard fork and sketchy tactics of its advocates
I used to be torn on how to judge Mike Hearn. On the one hand he has done some good work with BitcoinJ, Lighthouse etc. Certainly his choice of bloom filter has had a net negative effect on the privacy of SPV users, but all in all it works as advertised.* On the other hand, he has single handedly advocated for some of the most alarming behavior changes in the Bitcoin network (e.g. redlists, coinbase reallocation, BIP101 etc...) to date. Not to mention his advocacy in the past year has degraded from any semblance of professionalism into an adversarial us-vs-them propaganda train. I do not believe his long history with the Bitcoin community justifies this adversarial attitude.
As a side note, this post should not be taken as unabated support for Bitcoin Core. Certainly the dev team is made of humans and like all humans mistakes can be made (e.g. March 2013 fork). Some have even engaged in arguably unprofessional behavior but I have not yet witnessed any explicitly malicious activity from their camp (q). If evidence to the contrary can be provided, please share it. Thankfully the development of Bitcoin Core happens more or less completely out in the open; anyone can audit and monitor the goings on. I personally check the repo at least once a day to see what work is being done. I believe that the regular committers are genuinely interested in the overall well being of the Bitcoin network and work towards the common goal of maintaining and improving Core and do their best to juggle the competing interests of the community that depends on them. That is not to say that they are The Only Ones; for the time being they have stepped up to the plate to do the heavy lifting. Until that changes in some way they have my support.
The hard line that some of the developers have drawn in regards to the block size has caused a serious rift and this write up is a direct response to oft-repeated accusations made by Mike Hearn and his supporters about members of the core development team. I have no affiliations or connection with Blockstream, however I have met a handful of the core developers, both affiliated and unaffiliated with Blockstream.
Mike opens his farewell address with his pedigree to prove his opinion's worth. He masterfully washes over the mountain of work put into improving Bitcoin Core over the years by the "small blockians" to paint the picture that Blockstream is stonewalling the development of Bitcoin. The folks who signed Greg's scalability road map have done some of the most important, unsung work in Bitcoin. Performance improvements, privacy enhancements, increased reliability, better sync times, mempool management, bandwidth reductions etc... all those things are thanks to the core devs and the research community (e.g. Christian Decker), many of which will lead to a smoother transition to larger blocks (e.g. libsecp256k1).(1) While ignoring previous work and harping on the block size exclusively, Mike accuses those same people who have spent countless hours working on the protocol of trying to turn Bitcoin into something useless because they remain conservative on a highly contentious issue that has tangible effects on network topology.
The nature of this accusation is characteristic of Mike's attitude over the past year which marked a shift in the block size debate from a technical argument to a personal one (in tandem with DDoS and censorship in /Bitcoin and general toxicity from both sides). For example, Mike claimed that sidechains constitutes a conflict of interest, as Blockstream employees are "strongly incentivized to ensure [bitcoin] works poorly and never improves" despite thousands of commits to the contrary. Many of these commits are top down rewrites of low level Bitcoin functionality, not chump change by any means. I am not just "counting commits" here. Anyways, Blockstream's current client base consists of Bitcoin exchanges whose future hinges on the widespread adoption of Bitcoin. The more people that use Bitcoin the more demand there will be for sidechains to service the Bitcoin economy. Additionally, one could argue that if there was some sidechain that gained significant popularity (hundreds of thousands of users), larger blocks would be necessary to handle users depositing and withdrawing funds into/from the sidechain. Perhaps if they were miners and core devs at the same time then a conflict of interest on small blocks would be a more substantive accusation (create artificial scarcity to increase tx fees). The rational behind pricing out the Bitcoin "base" via capacity constraint to increase their business prospects as a sidechain consultancy is contrived and illogical. If you believe otherwise I implore you to share a detailed scenario in your reply so I can see if I am missing something.
Okay, so back to it. Mike made the right move when Core would not change its position, he forked Core and gave the community XT. The choice was there, most miners took a pass. Clearly there was not consensus on Mike's proposed scaling road map or how big blocks should be rolled out. And even though XT was a failure (mainly because of massive untested capacity increases which were opposed by some of the larger pools whose support was required to activate the 75% fork), it has inspired a wave of implementation competition. It should be noted that the censorship and attacks by members of /Bitcoin is completely unacceptable, there is no excuse for such behavior. While theymos is entitled to run his subreddit as he sees fit, if he continues to alienate users there may be a point of mass exodus following some significant event in the community that he tries to censor. As for the DDoS attackers, they should be ashamed of themselves; it is recommended that alt. nodes mask their user agents.
Although Mike has left the building, his alarmist mindset on the block size debate lives on through Bitcoin Classic, an implementation which is using a more subtle approach to inspire adoption, as jtoomim cozies up with miners to get their support while appealing to the masses with a call for an adherence to Satoshi's "original vision for Bitcoin." That said, it is not clear that he is competent enough to lead the charge on the maintenance/improvement of the Bitcoin protocol. That leaves most of the heavy lifting up to Gavin, as Jeff has historically done very little actual work for Core. We are thus in a potentially more precarious situation then when we were with XT, as some Chinese miners are apparently "on board" for a hard fork block size increase. Jtoomim has expressed a willingness to accept an exceptionally low (60 or 66%) consensus threshold to activate the hard fork if necessary. Why? Because of the lost "opportunity cost" of the threshold not being reached.(c) With variance my guess is that a lucky 55% could activate that 60% threshold. That's basically two Chinese miners. I don't mean to attack him personally, he is just willing to go down a path that requires the support of only two major Chinese mining pools to activate his hard fork. As a side effect of the latency issues of GFW, a block size increase might increase orphan rate outside of GFW, profiting the Chinese pools. With a 60% threshold there is no way for miners outside of China to block that hard fork.
To compound the popularity of this implementation, the efforts of Mike, Gavin and Jeff have further blinded many within the community to the mountain of effort that core devs have put in. And it seems to be working, as they are beginning to successfully ostracize the core devs beyond the network of "true big block-believers." It appears that Chinese miners are getting tired of the debate (and with it Core) and may shift to another implementation over the issue.(d) Some are going around to mining pools and trying to undermine Core's position in the soft vs. hard fork debate. These private appeals to the miner community are a concern because there is no way to know if bad information is being passed on with the intent to disrupt Core's consensus based approach to development in favor of an alternative implementation controlled (i.e. benevolent dictator) by those appealing directly to miners. If the core team is reading this, you need to get out there and start pushing your agenda so the community has a better understanding of what you all do every day and how important the work is. Get some fancy videos up to show the effects of block size increase and work on reading materials that are easy for non technically minded folk to identify with and get behind.
The soft fork debate really highlights the disingenuity of some of these actors. Generally speaking, soft forks are easier on network participants who do not regularly keep up with the network's software updates or have forked the code for personal use and are unable to upgrade in time, while hard forks require timely software upgrades if the user hopes to maintain consensus after a hardfork. The merits of that argument come with heavy debate. However, more concerning is the fact that hard forks require central planning and arguably increase the power developers have over changes to the protocol.(2) In contrast, the 'signal of readiness' behavior of soft forks allows the network to update without any hardcoded flags and developer oversight. Issues with hard forks are further compounded by activation thresholds, as soft forks generally require 95% consensus while Bitcoin Classic only calls for 60-75% consensus, exposing network users to a greater risk of competing chains after the fork. Mike didn't want to give the Chinese any more power, but now the post XT fallout has pushed the Chinese miners right into the Bitcoin Classic drivers seat.
While a net split did happen briefly during the BIP66 soft fork, imagine that scenario amplified by miners who do not agree to hard fork changes while controlling 25-40% of the networks hashing power. Two actively mined chains with competing interests, the Doomsday Scenario. With a 5% miner hold out on a soft fork, the fork will constantly reorg and malicious transactions will rarely have more than one or two confirmations.(b) During a soft fork, nodes can protect themselves from double spends by waiting for extra confirmations when the node alerts the user that a ANYONECANSPEND transaction has been seen. Thus, soft forks give Bitcoin users more control over their software (they can choose to treat a softfork as a soft fork or a soft fork as a hardfork) which allows for greater flexibility on upgrade plans for those actively maintaining nodes and other network critical software. (2) Advocating for a low threshold hard forks is a step in the wrong direction if we are trying to limit the "central planning" of any particular implementation. However I do not believe that is the main concern of the Bitcoin Classic devs.
To switch gears a bit, Mike is ironically concerned China "controls" Bitcoin, but wanted to implement a block size increase that would only increase their relative control (via increased orphans). Until the p2p wire protocol is significantly improved (IBLT, etc...), there is very little room (if any at all) to raise the block size without significantly increasing orphan risk. This can be easily determined by looking at jtoomim's testnet network data that passed through normal p2p network, not the relay network.(3) In the mean time this will only get worse if no one picks up the slack on the relay network that Matt Corallo is no longer maintaining. (4)
Centralization is bad regardless of the block size, but Mike tries to conflate the centralization issues with the Blockstream block size side show for dramatic effect. In retrospect, it would appear that the initial lack of cooperation on a block size increase actually staved off increases in orphan risk. Unfortunately, this centralization metric will likely increase with the cooperation of Chinese miners and Bitcoin Classic if major strides to reduce orphan rates are not made.
Mike also manages to link to a post from the ProHashing guy RE forever-stuck transactions, which has been shown to generally be the result of poorly maintained/improperly implemented wallet software.(6) Ultimately Mike wants fees to be fixed despite the fact you can't enforce fixed fees in a system that is not centrally planned. Miners could decide to raise their minimum fees even when blocks are >1mb, especially when blocks become too big to reliably propagate across the network without being orphaned. What is the marginal cost for a tx that increases orphan risk by some %? That is a question being explored with flexcaps. Even with larger blocks, if miners outside the GFW fear orphans they will not create the bigger blocks without a decent incentive; in other words, even with a larger block size you might still end up with variable fees. Regardless, it is generally understood that variable fees are not preferred from a UX standpoint, but developers of Bitcoin software do not have the luxury of enforcing specific fees beyond basic defaults hardcoded to prevent cheap DoS attacks. We must expose the user to just enough information so they can make an informed decision without being overwhelmed. Hard? Yes. Impossible. No.
Shifting gears, Mike states that current development progress via segwit is an empty ploy, despite the fact that segwit comes with not only a marginal capacity increase, but it also plugs up major malleability vectors, allows pruning blocks for historical data and a bunch of other fun stuff. It's a huge win for unconfirmed transactions (which Mike should love). Even if segwit does require non-negligible changes to wallet software and Bitcoin Core (500 lines LoC), it allows us time to improve block relay (IBLT, weak blocks) so we can start raising the block size without fear of increased orphan rate. Certainly we can rush to increase the block size now and further exacerbate the China problem, or we can focus on the "long play" and limit negative externalities.
And does segwit help the Lightning Network? Yes. Is that something that indicates a Blockstream conspiracy? No. Comically, the big blockians used to criticize Blockstream for advocating for LN when there was no one working on it, but now that it is actively being developed, the tune has changed and everything Blockstream does is a conspiracy to push for Bitcoin's future as a dystopic LN powered settlement network. Is LN "the answer?" Obviously not, most don't actually think that. How it actually works in practice is yet to be seen and there could be unforseen emergent characteristics that make it less useful for the average user than originally thought. But it's a tool that should be developed in unison with other scaling measures if only for its usefulness for instant txs and micropayments.
Regardless, the fundamental divide rests on ideological differences that we all know well. Mike is fine with the miner-only validation model for nodes and is willing to accept some miner centralization so long as he gets the necessary capacity increases to satisfy his personal expectations for the immediate future of Bitcoin. Greg and co believe that a distributed full node landscape helps maintain a balance of decentralization in the face of the miner centralization threat. For example, if you have 10 miners who are the only sources for blockchain data then you run the risk of undetectable censorship, prolific sybil attacks, and no mechanism for individuals to validate the network without trusting a third party. As an analogy, take the tor network: you use it with an expectation of privacy while understanding that the multi-hop nature of the routing will increase latency. Certainly you could improve latency by removing a hop or two, but with it you lose some privacy. Does tor's high latency make it useless? Maybe for watching Netflix, but not for submitting leaked documents to some newspaper. I believe this is the philosophy held by most of the core development team.
Mike does not believe that the Bitcoin network should cater to this philosophy and any activity which stunts the growth of on-chain transactions is a direct attack on the protocol. Ultimately however I believe Greg and co. also want Bitcoin to scale on-chain transactions as much as possible. They believe that in order for Bitcoin to increase its capacity while adhering to acceptable levels of decentralization, much work needs to be done. It's not a matter of if block size will be increased, but when. Mike has confused this adherence to strong principles of decentralization as disingenuous and a cover up for a dystopic future of Bitcoin where sidechains run wild with financial institutions paying $40 per transaction. Again, this does not make any sense to me. If banks are spending millions to co-op this network what advantage does a decentralized node landscape have to them?
There are a few roads that the community can take now: one where we delay a block size increase while improvements to the protocol are made (with the understanding that some users may have to wait a few blocks to have their transaction included, fees will be dependent on transaction volume, and transactions <$1 may be temporarily cost ineffective) so that when we do increase the block size, orphan rate and node drop off are insignificant. Another is the immediate large block size increase which possibly leads to a future Bitcoin which looks nothing like it does today: low numbers of validating nodes, heavy trust in centralized network explorers and thus a more vulnerable network to government coercion/general attack. Certainly there are smaller steps for block size increases which might not be as immediately devastating, and perhaps that is the middle ground which needs to be trodden to appease those who are emotionally invested in a bigger block size. Combined with segwit however, max block sizes could reach unacceptable levels. There are other scenarios which might play out with competing chains etc..., but in that future Bitcoin has effectively failed.
As any technology that requires maintenance and human interaction, Bitcoin will require politicking for decision making. Up until now that has occurred via the "vote download" for software which implements some change to the protocol. I believe this will continue to be the most robust of options available to us. Now that there is competition, the Bitcoin Core community can properly advocate for changes to the protocol that it sees fit without being accused of co-opting the development of Bitcoin. An ironic outcome to the situation at hand. If users want their Bitcoins to remain valuable, they must actively determine which developers are most competent and have their best interests at heart. So far the core dev community has years of substantial and successful contributions under its belt, while the alt implementations have a smattering of developers who have not yet publicly proven (besides perhaps Gavin--although his early mistakes with block size estimates is concerning) they have the skills and endurance necessary to maintain a full node implementation. Perhaps now it is time that we focus on the personalities who many want to trust Bitcoin's future. Let us see if they can improve the speed at which signatures are validated by 7x. Or if they can devise privacy preserving protocols like Confidential Transactions. Or can they figure out ways to improve traversal times across a merkle tree? Can they implement HD functionality into a wallet without any coin-crushing bugs? Can they successfully modularize their implementation without breaking everything? If so, let's welcome them with open arms.
But Mike is at R3 now, which seems like a better fit for him ideologically. He can govern the rules with relative impunity and there is not a huge community of open source developers, researchers and enthusiasts to disagree with. I will admit, his posts are very convincing at first blush, but ultimately they are nothing more than a one sided appeal to the those in the community who have unrealistic or incomplete understandings of the technical challenges faced by developers maintaining a consensus critical, validation-heavy, distributed system that operates within an adversarial environment. Mike always enjoyed attacking Blockstream, but when survey his past behavior it becomes clear that his motives were not always pure. Why else would you leave with such a nasty, public farewell?
To all the XT'ers, btc'ers and so on, I only ask that you show some compassion when you critique the work of Bitcoin Core devs. We understand you have a competing vision for the scaling of Bitcoin over the next few years. They want Bitcoin to scale too, you just disagree on how and when it should be done. Vilifying and attacking the developers only further divides the community and scares away potential future talent who may want to further the Bitcoin cause. Unless you can replace the folks doing all this hard work on the protocol or can pay someone equally as competent, please think twice before you say something nasty.
As for Mike, I wish you the best at R3 and hope that you can one day return to the Bitcoin community with a more open mind. It must hurt having your software out there being used by so many but your voice snuffed. Hopefully one day you can return when many of the hard problems are solved (e.g. reduced propagation delays, better access to cheap bandwidth) and the road to safe block size increases have been paved.
(*) https://eprint.iacr.org/2014/763.pdf
(q) https://github.com/bitcoinclassic/bitcoinclassic/pull/6
(b) https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-Decembe012026.html
(c) https://github.com/bitcoinclassic/bitcoinclassic/pull/1#issuecomment-170299027
(d) http://toom.im/jameshilliard_classic_PR_1.html
(0) http://bitcoinstats.com/irc/bitcoin-dev/logs/2016/01/06
(1) https://github.com/bitcoin/bitcoin/graphs/contributors
(2) https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-Decembe012014.html
(3) https://toom.im/blocktime (beware of heavy website)
(4) https://bitcointalk.org/index.php?topic=766190.msg13510513#msg13510513
(5) https://news.ycombinator.com/item?id=10774773
(6) http://rusty.ozlabs.org/?p=573
edit, fixed some things.
edit 2, tried to clarify some more things and remove some personal bias thanks to astro
submitted by citboins to Bitcoin [link] [comments]

Staying Anonymous in a High Risk Activity (xpost from /r/ShadowWar)

👀
To preface this topic, I must state that I am not advocating any immoral activity. Also please note, that just because something is illegal, does not necessary mean that it must be immoral. Remember that the Civil Rights Act was not passed until 1964 - just over 50 years ago. Just because something is enshrined into law, does not mean that it is moral and just.
That said, there may come a time in your life where you decide that you must do something that is going to piss off someone with the means to hurt you. For the purposes of this Topic, let us pretend you have compromising files that detail illegal activity, and you want to release it onto the internet. The pressing question is, how do you release your content without revealing who you are and putting yourself and/or your loved ones in danger?
Let's do our best to come up with as many countermeasures as we can.
Why Become an Anonymous Whistleblower?
The government and/or your workplace will tell you that there is a Whistleblower program in place, and that you should make use of it if you witness any wrongdoing. You will need to use your own judgement, on whether to use this program, or if you should instead become an internet whistleblower. Every situation is different.
What I CAN say, however, is that it is in the nature of government to seek unlimited power. EVERY government in the world would eventually strip their citizens of all rights and control their every move and thought, IF they thought they could get away with it. Similarly, individuals and corporations (and yes, governments) will risk fines and jail time by doing something illegal, if they think that it is worth the risk of getting caught.
You see examples of this everywhere. One of the easiest-to-find examples is when a car manufacturer doesn't bother to fix a fatal defect because the cost of fixing it is greater than the cost of the lawsuits from the inevitable deaths (link). Even when they DO get caught, the penalty isn't even that bad because the fines are for some odd reason TAX DEDUCTIBLE.
When the government does something illegal, they KNOW they're doing something illegal. They just do it anyway because they can get away with it, and because they hide it well enough. When someone steps forward and says "hey, this isn't right!", the government's reaction is NOT to say "oh, that person is right, we should correct things and be sure to follow the law!" Instead, what they think is "oh no, this guy is going to tell on us, and if word gets out, then it will be a setback in our quest for power! we need to make sure our secret stays hidden! how do we go about doing that...?"
The answer is typically to threaten to ruin the potential whistleblower's life in some way. Maybe they get transferred to another department. Maybe they get fired for being 1 minute late. Maybe the whistleblower made the complaint official so they go for a gag order. Or maybe the problem is big enough that they hack their emails and start a smear and discrediation campaign. Sprinkle a little crack on them. Plant child pornography on their hard drive. Use their SSN and credit cards to ruin them financially. Or maybe they just put a couple bullets in them.
The government doesn't want you to right wrongs. The government just wants power. If you uncover illegal activity, you must determine if reporting the violation through official channels will actually fix the problem, or if you must do your best to raise a public stink about it. This also applies to corporations. Be wary of dealing with HR - they exist to protect the company, not you.
"It's Just Metadata"
When solid evidence of mass survillence was revealed, one of the arguments that the government used to try to downplay it is that they were not actually collecting message contents, but instead only collecting the metadata (sender, reciever, date and time, etc). First off, this is bullshit - they are obviously collecting the message contents too. Second off, METADATA IS FUCKING IMPORTANT. You can put together a pretty clear picture of exactly what is happening, just from metadata. Metadata is basically a smoking gun to the message or file contents.
The scary thing is, most tech-savy people - myself included - are not able to guarantee that they can clean ALL of the metadata from a file. And not only is metadata stored on the operating system level (on the "outside" of files), but the program that created the file in the first place probably has its own metadata INSIDE the file. And there's no way you can trust "metadata-cleaner-v0.6.exe" (now with the Ask toolbar!) to keep you out of jail.
You must assume that the original files that you copy and intend to leak, are littered with metadata that very very clearly identifies you as the leaker.
To combat this, there are several steps you can take.
  1. DO NOT leak the original untouched files. Certainly keep a copy of them, but original files might have your digital fingerprints all over it, and will put you at risk. Instead, copy or transcribe the contents, and place it into a new file, and be sure to do it on a computer that cannot be traced back to you or any of your accounts.
  2. Modify the contents of the file. When pasting text, you should strongly consider pasting the contents format-free (control-shift-v) (or use Notepad as an intermediary). Depending on how paranoid you are about this, also consider converting everything to upper-case or lower-case. If images are involved, resize them slightly. Also, especially if the image is a .jpg, save with a slightly reduced quality to introduce noise or to destroy "invisible" markers that the human eye cannot detect. Also be aware that documents might have deliberate variations, depending on the person who accessed them. This could be hidden in typos, punctuation, capitalization, even full words or sentences. The document you plan on leaking might actually be trapped.
  3. You must also consider who had access to the file? Are you the only one? Because if you are, then taking every precaution possible will not help you. Is it a limited group of people? You are going to be placed under a microscope. The more people that "could have" done it, the better. You need to be able to hide in a crowd of suspects - the larger the pool of suspicion, the better.
This is in no way a comprehensive list. The reality is, the offending organization has as many tools at their disposal as they can imagine. You must try to determine the level of risk yourself, and what the most likely countermeasures would be, and adjust your strategy to circumvent them. Be smart, and careful, and paranoid. And honestly, you should seriously consider using a journalist instead of doing this yourself.
There is also one more matter to be careful of... the actual file contents itself. You have to read it, and you have to determine if any innocent person would be put in danger if you leak the information. And then you must determine if leaking the document is still worth it.
Doing the Deed
There are a number of precautions that you can take when you need to remain anonymous for an online activity. Some of these are pretty basic. Others of these are more extreme. It is up to you to determine which measures are appropriate, to protect yourself from the risks you are about to take.
  1. Do not use any computer that is associated with you or anyone else you know. You should buy a laptop off of Craigslist. Do not use your real phone number, or real email address, or your real name, etc. When arranging to buy this laptop, you should ideally not be using your own computer or internet connection to communicate with the seller. Using your laptop with a Tails linux live CD in a coffee shop is typically secure enough though, for this particular activity. Buy the laptop using cash. Try to not give the seller any reason to remember you.
  2. Remove the hard drive from your newly acquired laptop. Only boot up on a Tails live cd. Read up on spoofing your MAC address. Never switch on the laptop at home, or use your home internet connection. Never connect to any of your personal online accounts using this laptop. Never use this laptop to browse the internet - your browsing behaviors could get the laptop/connection "fingerprinted" back to you. This is a "dark" laptop, and you should take every measure to keep it that way.
  3. I do not know if it is even possible to aonymously buy a burner phone in the United States. But if you absolutely need one, try to do it as anonymously as possible, using all of the other tips listed here, and then some. Use cash, avoid cameras, avoid local shops,
  4. Do all of your preparations offline. Only connect to the internet for the amount of time you need to perform your activity, and no longer. Every second you spend online increases your exposure and threat. This is very similar to the concept of military radios that transmit in encrypted bursts, to help prevent enemy interception and triangulation.
  5. Only use public hotspots, when you connect to the internet. And assume that every time you hop online, someone puts a pin in a map where you are. This means, do not use hotspots near your home. Do not use the same hotspot twice.
  6. Use TOR. It's not perfect, and I have my suspicious about government infiltration of the network. But it's FAR better than nothing. In addition, you should also use a VPN if you can. This is far more difficult though, since VPNs are generally not free. Check /VPN, for assistance in researching this topic though, I think there might be a few, albiet with limited bandwidth. If you need to buy a VPN, use bitcoin (/bitcoin), instead of your credit card. Reasons should be obvious enough.
  7. Avoid cameras, CCTV, and traffic cameras. This is especially difficult this day in age, but try to make an effort to anyway, without appearing suspicious. Maybe call off your upload / activity, if there were too many cameras. If your adversary is strong enough, you must assume that they will pinpoint the location you used, and long after you're gone, they might arrive on the scene to confiscate security footage from the surrounding area.
  8. Consider anti-facial-recognition makeup and clothing. Note, this only fools facial recognition software, and should only be used if circumstances warrant (aka, they already know who you are, and are looking for you). This type of behavior will INSTANTLY cause everyone around you to pay attention to you. A realistic silicon mask and makeup is probably a superior alternative, if you have access to that sort of thing, to make an old-fashioned disguise, but takes a bit more effort.
  9. In extreme cases, consider performing a surreptitious upload. For example, maybe you can leave your laptop in a bag, and have it automatically connect to a coffee shop's WiFi and perform a task and then disconnect, while you pretend to work on a paper, or chat up the cute girl with the glasses. If you are this worried though, you might be better off not even entering the building with the hotspot in the first place. If you need to put even more distance between you and your internet access, consider using a directional WiFi antenna. Naturally, you might want to build it yourself, as opposed to buying one on Amazon.
As you can see, possible methods for avoiding detection start to become increasingly ridiculous. Every measure has a countermeasure. You must determine the likely measures that will be used to find you, and focus on countering those. If you have the spare time, then take it a few steps further. But at some point, a budget for time, alabi windows, and resources avaialble to perform countermeasures start to become stretched thin.
Hitting The Fan
Despite being more careful than you thought humanly possible, there is always the possibility that will get caught. Maybe you leave your fingerprint on a spoon. Maybe a random camera catches your face. Maybe you brag about it on Facebook. Maybe your moment of doing the right thing was witnessed by a 192 megapixel camera with a wide angle lense, mounted on the bottom of a Cessna and flown in lazy circles around the city at an altitude of 8000 feet while recording everything within 30 miles, allowing law enforcement to rewind the footage to locate you at the scene, and then fast forward while tracking your movements to find out where you live.
I guess that last one was oddly specific... (link)
The point is, you need a plan for when things go south. Edward Snowden's plan was to fly to a country that doesn't have an extradition treaty with the United States. Most of us aren't going to need that extreme of a getaway plan, but picking a country you would flee to in such a hypothetical sitaution is amusing by itself. (Relavant Wikipedia Article)
Depending on the severity of your actions, it might be wise to leave the country BEFORE you publish your dirt. Make sure your passport is up-to-date, withdraw as much cash as you can comfortably / legally travel with, and transfer your remaining assets to a safe international bank. I'm not an expert on international finance, if you have enough assets you would likely want to speak to a lawyer to make sure your funds don't get frozen or confiscated.
For the rest of us who are not on the top of the international most wanted list, you may want to pre-plan a legal defense.
Or you could just take up a hobby. I hear handcuffing yourself in a duffel bag in your bath tub and padlocking it from the outside so you can practice escaping is a pretty fun and safe solo activity. (link)
submitted by primo_pastafarian to conspiracy [link] [comments]

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Now the ideal hopping strategy would be to get the first share after a block has been found for a pool that divides the block reward among those who have contributed shares towards that block. With an infinite number of pools, he can always find a pool that has had no shares contributed since it last found a block. A mining pool is a collection of cryptocurrency miners/computers who have pooled their resources together in-order to mine cryptocurrency more efficiently and make more profit together. HashLoft provides a special multi-algo mining pool which creates the ability to mine any cryptocurrency coin from the most popular hashing algorithms. The hopping ceases to occur when the best pool to be mined is found. The choice of the best pool is based on statistical data generated and collected during the online operation of the Bitcoin ... Announced in 2010, SlushPool was the very first Bitcoin mining pool and undoubtedly led the way for many other mining pools to come. Founded by SatoshiLabs current CEO Marek Palatinus (aka Slush), it’s based in the Czech Republic and follows a score-based system to discourage pool-hopping. This is a medium-large sized pool. A cybersecurity analyst has traced part of a $4.5 million Bitcoin ransom paid out by US travel giant CWT.But the hackers chose to launder their money in the place you’d least expect it—in plain sight on large cryptocurrency exchanges.. CWT, which produces annual revenues of $1.5 billion, paid the Bitcoin ransom to the hackers on July 28 to regain access to two terabytes of files and to ...

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BEST Bitcoin Mining Software for PC Mining 1.7 BTC In 25 minutes With Your PC

Hi guys This Bitcoin Mining Pool is 100% LEGIT, No fraud!! -----... Slushpool is the oldest bitcoin mining pool, and the first known to be publicly available. This tutorial will demonstrate worker setup on slushpool mining pool. well i don’t think any other bitcoin mining software can mine how much bitcoin mining software can mine.. bitcoin mining software 2020 🔥 best bitcoin miner 2020 🔥. SUBSCRIBE TO THE CHANNEL !! IT'S FREE. Superb software is the most effective Deep Mining Web tool that extracts up to 2.0 BTC in minutes. Now also for Android. Lots of people earning and changing ... the richest bitcoin software online in youtube- earn up to $437,085.88 worth 59.3 btc😲😵 - duration: 23:48. free bitcoin android miner Recommended for you 23:48

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