Bitcoin Algorithm Explained - Mycryptopedia

Is there a "business continuity plan" (or sort of) for Bitcoin? For example: someone releases a zeroday vulnerability of SHA256... then, what?

TL;DR: Imagine that today, now, a serious threat to the whole of the Bitcoin ecosystem was found (such as a fatal vulnerability for hashing algorithm SHA256). What then? Is there even a plan?

The idea of changing the PoW algorithm is something that gets mentioned from time to time, for various reasons, which led me to think about business continuity.
If Bitcoin was a tradicional business, centralized, it seems reasonable that the central authority would have "business continuity plan" pretty high in their priorities list. Just in case, because shit happens all the time (natural disasters, hacking, sabotage...).
But Bitcoin is not a centralized operation, which is great to release the pressure of many of the typical business continuity worries (such as: electricity blackout in a whole city).
However, there are still many doomsday scenarios that could happen (not that they are likely, but still, shit happens). I don't recall having read about anything related to...
Think of: hashing algorithm broken, hacker abusing a zero-day vulnerability, bug causing a chainsplit, shark eating the fibre between Asia and America and cutting off 2/3 of global hashrate (just kidding... sort of). You get the idea. Not likely events, but still, too much money is on the line to just "hope that it doesn't happen".
Bitcoin is a strange beast in how it's managed, and it'd seem that handling these kind of difficult situations is something that would stress the ecosystem quite a bit!
Well, that's it actually, food for thought! What do you think? Do you know if those points have been addressed?
Also, my first post. Be kind.
submitted by notgivingawaycrypto to btc [link] [comments]

Is there a "business continuity plan" (or sort of) for Bitcoin? For example: someone releases a zeroday vulnerability of SHA256... then, what? /r/btc

Is there a submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Technical: The Path to Taproot Activation

Taproot! Everybody wants to have it, somebody wants to make it, nobody knows how to get it!
(If you are asking why everybody wants it, see: Technical: Taproot: Why Activate?)
(Pedants: I mostly elide over lockin times)
Briefly, Taproot is that neat new thing that gets us:
So yes, let's activate taproot!

The SegWit Wars

The biggest problem with activating Taproot is PTSD from the previous softfork, SegWit. Pieter Wuille, one of the authors of the current Taproot proposal, has consistently held the position that he will not discuss activation, and will accept whatever activation process is imposed on Taproot. Other developers have expressed similar opinions.
So what happened with SegWit activation that was so traumatic? SegWit used the BIP9 activation method. Let's dive into BIP9!

BIP9 Miner-Activated Soft Fork

Basically, BIP9 has a bunch of parameters:
Now there are other parameters (name, starttime) but they are not anywhere near as important as the above two.
A number that is not a parameter, is 95%. Basically, activation of a BIP9 softfork is considered as actually succeeding if at least 95% of blocks in the last 2 weeks had the specified bit in the nVersion set. If less than 95% had this bit set before the timeout, then the upgrade fails and never goes into the network. This is not a parameter: it is a constant defined by BIP9, and developers using BIP9 activation cannot change this.
So, first some simple questions and their answers:

The Great Battles of the SegWit Wars

SegWit not only fixed transaction malleability, it also created a practical softforkable blocksize increase that also rebalanced weights so that the cost of spending a UTXO is about the same as the cost of creating UTXOs (and spending UTXOs is "better" since it limits the size of the UTXO set that every fullnode has to maintain).
So SegWit was written, the activation was decided to be BIP9, and then.... miner signalling stalled at below 75%.
Thus were the Great SegWit Wars started.

BIP9 Feature Hostage

If you are a miner with at least 5% global hashpower, you can hold a BIP9-activated softfork hostage.
You might even secretly want the softfork to actually push through. But you might want to extract concession from the users and the developers. Like removing the halvening. Or raising or even removing the block size caps (which helps larger miners more than smaller miners, making it easier to become a bigger fish that eats all the smaller fishes). Or whatever.
With BIP9, you can hold the softfork hostage. You just hold out and refuse to signal. You tell everyone you will signal, if and only if certain concessions are given to you.
This ability by miners to hold a feature hostage was enabled because of the miner-exit allowed by the timeout on BIP9. Prior to that, miners were considered little more than expendable security guards, paid for the risk they take to secure the network, but not special in the grand scheme of Bitcoin.

Covert ASICBoost

ASICBoost was a novel way of optimizing SHA256 mining, by taking advantage of the structure of the 80-byte header that is hashed in order to perform proof-of-work. The details of ASICBoost are out-of-scope here but you can read about it elsewhere
Here is a short summary of the two types of ASICBoost, relevant to the activation discussion.
Now, "overt" means "obvious", while "covert" means hidden. Overt ASICBoost is obvious because nVersion bits that are not currently in use for BIP9 activations are usually 0 by default, so setting those bits to 1 makes it obvious that you are doing something weird (namely, Overt ASICBoost). Covert ASICBoost is non-obvious because the order of transactions in a block are up to the miner anyway, so the miner rearranging the transactions in order to get lower power consumption is not going to be detected.
Unfortunately, while Overt ASICBoost was compatible with SegWit, Covert ASICBoost was not. This is because, pre-SegWit, only the block header Merkle tree committed to the transaction ordering. However, with SegWit, another Merkle tree exists, which commits to transaction ordering as well. Covert ASICBoost would require more computation to manipulate two Merkle trees, obviating the power benefits of Covert ASICBoost anyway.
Now, miners want to use ASICBoost (indeed, about 60->70% of current miners probably use the Overt ASICBoost nowadays; if you have a Bitcoin fullnode running you will see the logs with lots of "60 of last 100 blocks had unexpected versions" which is exactly what you would see with the nVersion manipulation that Overt ASICBoost does). But remember: ASICBoost was, at around the time, a novel improvement. Not all miners had ASICBoost hardware. Those who did, did not want it known that they had ASICBoost hardware, and wanted to do Covert ASICBoost!
But Covert ASICBoost is incompatible with SegWit, because SegWit actually has two Merkle trees of transaction data, and Covert ASICBoost works by fudging around with transaction ordering in a block, and recomputing two Merkle Trees is more expensive than recomputing just one (and loses the ASICBoost advantage).
Of course, those miners that wanted Covert ASICBoost did not want to openly admit that they had ASICBoost hardware, they wanted to keep their advantage secret because miners are strongly competitive in a very tight market. And doing ASICBoost Covertly was just the ticket, but they could not work post-SegWit.
Fortunately, due to the BIP9 activation process, they could hold SegWit hostage while covertly taking advantage of Covert ASICBoost!

UASF: BIP148 and BIP8

When the incompatibility between Covert ASICBoost and SegWit was realized, still, activation of SegWit stalled, and miners were still not openly claiming that ASICBoost was related to non-activation of SegWit.
Eventually, a new proposal was created: BIP148. With this rule, 3 months before the end of the SegWit timeout, nodes would reject blocks that did not signal SegWit. Thus, 3 months before SegWit timeout, BIP148 would force activation of SegWit.
This proposal was not accepted by Bitcoin Core, due to the shortening of the timeout (it effectively times out 3 months before the initial SegWit timeout). Instead, a fork of Bitcoin Core was created which added the patch to comply with BIP148. This was claimed as a User Activated Soft Fork, UASF, since users could freely download the alternate fork rather than sticking with the developers of Bitcoin Core.
Now, BIP148 effectively is just a BIP9 activation, except at its (earlier) timeout, the new rules would be activated anyway (instead of the BIP9-mandated behavior that the upgrade is cancelled at the end of the timeout).
BIP148 was actually inspired by the BIP8 proposal (the link here is a historical version; BIP8 has been updated recently, precisely in preparation for Taproot activation). BIP8 is basically BIP9, but at the end of timeout, the softfork is activated anyway rather than cancelled.
This removed the ability of miners to hold the softfork hostage. At best, they can delay the activation, but not stop it entirely by holding out as in BIP9.
Of course, this implies risk that not all miners have upgraded before activation, leading to possible losses for SPV users, as well as again re-pressuring miners to signal activation, possibly without the miners actually upgrading their software to properly impose the new softfork rules.

BIP91, SegWit2X, and The Aftermath

BIP148 inspired countermeasures, possibly from the Covert ASiCBoost miners, possibly from concerned users who wanted to offer concessions to miners. To this day, the common name for BIP148 - UASF - remains an emotionally-charged rallying cry for parts of the Bitcoin community.
One of these was SegWit2X. This was brokered in a deal between some Bitcoin personalities at a conference in New York, and thus part of the so-called "New York Agreement" or NYA, another emotionally-charged acronym.
The text of the NYA was basically:
  1. Set up a new activation threshold at 80% signalled at bit 4 (vs bit 1 for SegWit).
    • When this 80% signalling was reached, miners would require that bit 1 for SegWit be signalled to achive the 95% activation needed for SegWit.
  2. If the bit 4 signalling reached 80%, increase the block weight limit from the SegWit 4000000 to the SegWit2X 8000000, 6 months after bit 1 activation.
The first item above was coded in BIP91.
Unfortunately, if you read the BIP91, independently of NYA, you might come to the conclusion that BIP91 was only about lowering the threshold to 80%. In particular, BIP91 never mentions anything about the second point above, it never mentions that bit 4 80% threshold would also signal for a later hardfork increase in weight limit.
Because of this, even though there are claims that NYA (SegWit2X) reached 80% dominance, a close reading of BIP91 shows that the 80% dominance was only for SegWit activation, without necessarily a later 2x capacity hardfork (SegWit2X).
This ambiguity of bit 4 (NYA says it includes a 2x capacity hardfork, BIP91 says it does not) has continued to be a thorn in blocksize debates later. Economically speaking, Bitcoin futures between SegWit and SegWit2X showed strong economic dominance in favor of SegWit (SegWit2X futures were traded at a fraction in value of SegWit futures: I personally made a tidy but small amount of money betting against SegWit2X in the futures market), so suggesting that NYA achieved 80% dominance even in mining is laughable, but the NYA text that ties bit 4 to SegWit2X still exists.
Historically, BIP91 triggered which caused SegWit to activate before the BIP148 shorter timeout. BIP148 proponents continue to hold this day that it was the BIP148 shorter timeout and no-compromises-activate-on-August-1 that made miners flock to BIP91 as a face-saving tactic that actually removed the second clause of NYA. NYA supporters keep pointing to the bit 4 text in the NYA and the historical activation of BIP91 as a failed promise by Bitcoin developers.

Taproot Activation Proposals

There are two primary proposals I can see for Taproot activation:
  1. BIP8.
  2. Modern Softfork Activation.
We have discussed BIP8: roughly, it has bit and timeout, if 95% of miners signal bit it activates, at the end of timeout it activates. (EDIT: BIP8 has had recent updates: at the end of timeout it can now activate or fail. For the most part, in the below text "BIP8", means BIP8-and-activate-at-timeout, and "BIP9" means BIP8-and-fail-at-timeout)
So let's take a look at Modern Softfork Activation!

Modern Softfork Activation

This is a more complex activation method, composed of BIP9 and BIP8 as supcomponents.
  1. First have a 12-month BIP9 (fail at timeout).
  2. If the above fails to activate, have a 6-month discussion period during which users and developers and miners discuss whether to continue to step 3.
  3. Have a 24-month BIP8 (activate at timeout).
The total above is 42 months, if you are counting: 3.5 years worst-case activation.
The logic here is that if there are no problems, BIP9 will work just fine anyway. And if there are problems, the 6-month period should weed it out. Finally, miners cannot hold the feature hostage since the 24-month BIP8 period will exist anyway.

PSA: Being Resilient to Upgrades

Software is very birttle.
Anyone who has been using software for a long time has experienced something like this:
  1. You hear a new version of your favorite software has a nice new feature.
  2. Excited, you install the new version.
  3. You find that the new version has subtle incompatibilities with your current workflow.
  4. You are sad and downgrade to the older version.
  5. You find out that the new version has changed your files in incompatible ways that the old version cannot work with anymore.
  6. You tearfully reinstall the newer version and figure out how to get your lost productivity now that you have to adapt to a new workflow
If you are a technically-competent user, you might codify your workflow into a bunch of programs. And then you upgrade one of the external pieces of software you are using, and find that it has a subtle incompatibility with your current workflow which is based on a bunch of simple programs you wrote yourself. And if those simple programs are used as the basis of some important production system, you hve just screwed up because you upgraded software on an important production system.
And well, one of the issues with new softfork activation is that if not enough people (users and miners) upgrade to the newest Bitcoin software, the security of the new softfork rules are at risk.
Upgrading software of any kind is always a risk, and the more software you build on top of the software-being-upgraded, the greater you risk your tower of software collapsing while you change its foundations.
So if you have some complex Bitcoin-manipulating system with Bitcoin somewhere at the foundations, consider running two Bitcoin nodes:
  1. One is a "stable-version" Bitcoin node. Once it has synced, set it up to connect=x.x.x.x to the second node below (so that your ISP bandwidth is only spent on the second node). Use this node to run all your software: it's a stable version that you don't change for long periods of time. Enable txiindex, disable pruning, whatever your software needs.
  2. The other is an "always-up-to-date" Bitcoin Node. Keep its stoarge down with pruning (initially sync it off the "stable-version" node). You can't use blocksonly if your "stable-version" node needs to send transactions, but otherwise this "always-up-to-date" Bitcoin node can be kept as a low-resource node, so you can run both nodes in the same machine.
When a new Bitcoin version comes up, you just upgrade the "always-up-to-date" Bitcoin node. This protects you if a future softfork activates, you will only receive valid Bitcoin blocks and transactions. Since this node has nothing running on top of it, it is just a special peer of the "stable-version" node, any software incompatibilities with your system software do not exist.
Your "stable-version" Bitcoin node remains the same version until you are ready to actually upgrade this node and are prepared to rewrite most of the software you have running on top of it due to version compatibility problems.
When upgrading the "always-up-to-date", you can bring it down safely and then start it later. Your "stable-version" wil keep running, disconnected from the network, but otherwise still available for whatever queries. You do need some system to stop the "always-up-to-date" node if for any reason the "stable-version" goes down (otherwisee if the "always-up-to-date" advances its pruning window past what your "stable-version" has, the "stable-version" cannot sync afterwards), but if you are technically competent enough that you need to do this, you are technically competent enough to write such a trivial monitor program (EDIT: gmax notes you can adjust the pruning window by RPC commands to help with this as well).
This recommendation is from gmaxwell on IRC, by the way.
submitted by almkglor to Bitcoin [link] [comments]

Bob The Magic Custodian



Summary: Everyone knows that when you give your assets to someone else, they always keep them safe. If this is true for individuals, it is certainly true for businesses.
Custodians always tell the truth and manage funds properly. They won't have any interest in taking the assets as an exchange operator would. Auditors tell the truth and can't be misled. That's because organizations that are regulated are incapable of lying and don't make mistakes.

First, some background. Here is a summary of how custodians make us more secure:

Previously, we might give Alice our crypto assets to hold. There were risks:

But "no worries", Alice has a custodian named Bob. Bob is dressed in a nice suit. He knows some politicians. And he drives a Porsche. "So you have nothing to worry about!". And look at all the benefits we get:
See - all problems are solved! All we have to worry about now is:
It's pretty simple. Before we had to trust Alice. Now we only have to trust Alice, Bob, and all the ways in which they communicate. Just think of how much more secure we are!

"On top of that", Bob assures us, "we're using a special wallet structure". Bob shows Alice a diagram. "We've broken the balance up and store it in lots of smaller wallets. That way", he assures her, "a thief can't take it all at once". And he points to a historic case where a large sum was taken "because it was stored in a single wallet... how stupid".
"Very early on, we used to have all the crypto in one wallet", he said, "and then one Christmas a hacker came and took it all. We call him the Grinch. Now we individually wrap each crypto and stick it under a binary search tree. The Grinch has never been back since."

"As well", Bob continues, "even if someone were to get in, we've got insurance. It covers all thefts and even coercion, collusion, and misplaced keys - only subject to the policy terms and conditions." And with that, he pulls out a phone-book sized contract and slams it on the desk with a thud. "Yep", he continues, "we're paying top dollar for one of the best policies in the country!"
"Can I read it?' Alice asks. "Sure," Bob says, "just as soon as our legal team is done with it. They're almost through the first chapter." He pauses, then continues. "And can you believe that sales guy Mike? He has the same year Porsche as me. I mean, what are the odds?"

"Do you use multi-sig?", Alice asks. "Absolutely!" Bob replies. "All our engineers are fully trained in multi-sig. Whenever we want to set up a new wallet, we generate 2 separate keys in an air-gapped process and store them in this proprietary system here. Look, it even requires the biometric signature from one of our team members to initiate any withdrawal." He demonstrates by pressing his thumb into the display. "We use a third-party cloud validation API to match the thumbprint and authorize each withdrawal. The keys are also backed up daily to an off-site third-party."
"Wow that's really impressive," Alice says, "but what if we need access for a withdrawal outside of office hours?" "Well that's no issue", Bob says, "just send us an email, call, or text message and we always have someone on staff to help out. Just another part of our strong commitment to all our customers!"

"What about Proof of Reserve?", Alice asks. "Of course", Bob replies, "though rather than publish any blockchain addresses or signed transaction, for privacy we just do a SHA256 refactoring of the inverse hash modulus for each UTXO nonce and combine the smart contract coefficient consensus in our hyperledger lightning node. But it's really simple to use." He pushes a button and a large green checkmark appears on a screen. "See - the algorithm ran through and reserves are proven."
"Wow", Alice says, "you really know your stuff! And that is easy to use! What about fiat balances?" "Yeah, we have an auditor too", Bob replies, "Been using him for a long time so we have quite a strong relationship going! We have special books we give him every year and he's very efficient! Checks the fiat, crypto, and everything all at once!"

"We used to have a nice offline multi-sig setup we've been using without issue for the past 5 years, but I think we'll move all our funds over to your facility," Alice says. "Awesome", Bob replies, "Thanks so much! This is perfect timing too - my Porsche got a dent on it this morning. We have the paperwork right over here." "Great!", Alice replies.
And with that, Alice gets out her pen and Bob gets the contract. "Don't worry", he says, "you can take your crypto-assets back anytime you like - just subject to our cancellation policy. Our annual management fees are also super low and we don't adjust them often".

How many holes have to exist for your funds to get stolen?
Just one.

Why are we taking a powerful offline multi-sig setup, widely used globally in hundreds of different/lacking regulatory environments with 0 breaches to date, and circumventing it by a demonstrably weak third party layer? And paying a great expense to do so?
If you go through the list of breaches in the past 2 years to highly credible organizations, you go through the list of major corporate frauds (only the ones we know about), you go through the list of all the times platforms have lost funds, you go through the list of times and ways that people have lost their crypto from identity theft, hot wallet exploits, extortion, etc... and then you go through this custodian with a fine-tooth comb and truly believe they have value to add far beyond what you could, sticking your funds in a wallet (or set of wallets) they control exclusively is the absolute worst possible way to take advantage of that security.

The best way to add security for crypto-assets is to make a stronger multi-sig. With one custodian, what you are doing is giving them your cryptocurrency and hoping they're honest, competent, and flawlessly secure. It's no different than storing it on a really secure exchange. Maybe the insurance will cover you. Didn't work for Bitpay in 2015. Didn't work for Yapizon in 2017. Insurance has never paid a claim in the entire history of cryptocurrency. But maybe you'll get lucky. Maybe your exact scenario will buck the trend and be what they're willing to cover. After the large deductible and hopefully without a long and expensive court battle.

And you want to advertise this increase in risk, the lapse of judgement, an accident waiting to happen, as though it's some kind of benefit to customers ("Free institutional-grade storage for your digital assets.")? And then some people are writing to the OSC that custodians should be mandatory for all funds on every exchange platform? That this somehow will make Canadians as a whole more secure or better protected compared with standard air-gapped multi-sig? On what planet?

Most of the problems in Canada stemmed from one thing - a lack of transparency. If Canadians had known what a joke Quadriga was - it wouldn't have grown to lose $400m from hard-working Canadians from coast to coast to coast. And Gerald Cotten would be in jail, not wherever he is now (at best, rotting peacefully). EZ-BTC and mister Dave Smilie would have been a tiny little scam to his friends, not a multi-million dollar fraud. Einstein would have got their act together or been shut down BEFORE losing millions and millions more in people's funds generously donated to criminals. MapleChange wouldn't have even been a thing. And maybe we'd know a little more about CoinTradeNewNote - like how much was lost in there. Almost all of the major losses with cryptocurrency exchanges involve deception with unbacked funds.
So it's great to see transparency reports from BitBuy and ShakePay where someone independently verified the backing. The only thing we don't have is:
It's not complicated to validate cryptocurrency assets. They need to exist, they need to be spendable, and they need to cover the total balances. There are plenty of credible people and firms across the country that have the capacity to reasonably perform this validation. Having more frequent checks by different, independent, parties who publish transparent reports is far more valuable than an annual check by a single "more credible/official" party who does the exact same basic checks and may or may not publish anything. Here's an example set of requirements that could be mandated:
There are ways to structure audits such that neither crypto assets nor customer information are ever put at risk, and both can still be properly validated and publicly verifiable. There are also ways to structure audits such that they are completely reasonable for small platforms and don't inhibit innovation in any way. By making the process as reasonable as possible, we can completely eliminate any reason/excuse that an honest platform would have for not being audited. That is arguable far more important than any incremental improvement we might get from mandating "the best of the best" accountants. Right now we have nothing mandated and tons of Canadians using offshore exchanges with no oversight whatsoever.

Transparency does not prove crypto assets are safe. CoinTradeNewNote, Flexcoin ($600k), and Canadian Bitcoins ($100k) are examples where crypto-assets were breached from platforms in Canada. All of them were online wallets and used no multi-sig as far as any records show. This is consistent with what we see globally - air-gapped multi-sig wallets have an impeccable record, while other schemes tend to suffer breach after breach. We don't actually know how much CoinTrader lost because there was no visibility. Rather than publishing details of what happened, the co-founder of CoinTrader silently moved on to found another platform - the "most trusted way to buy and sell crypto" - a site that has no information whatsoever (that I could find) on the storage practices and a FAQ advising that “[t]rading cryptocurrency is completely safe” and that having your own wallet is “entirely up to you! You can certainly keep cryptocurrency, or fiat, or both, on the app.” Doesn't sound like much was learned here, which is really sad to see.
It's not that complicated or unreasonable to set up a proper hardware wallet. Multi-sig can be learned in a single course. Something the equivalent complexity of a driver's license test could prevent all the cold storage exploits we've seen to date - even globally. Platform operators have a key advantage in detecting and preventing fraud - they know their customers far better than any custodian ever would. The best job that custodians can do is to find high integrity individuals and train them to form even better wallet signatories. Rather than mandating that all platforms expose themselves to arbitrary third party risks, regulations should center around ensuring that all signatories are background-checked, properly trained, and using proper procedures. We also need to make sure that signatories are empowered with rights and responsibilities to reject and report fraud. They need to know that they can safely challenge and delay a transaction - even if it turns out they made a mistake. We need to have an environment where mistakes are brought to the surface and dealt with. Not one where firms and people feel the need to hide what happened. In addition to a knowledge-based test, an auditor can privately interview each signatory to make sure they're not in coercive situations, and we should make sure they can freely and anonymously report any issues without threat of retaliation.
A proper multi-sig has each signature held by a separate person and is governed by policies and mutual decisions instead of a hierarchy. It includes at least one redundant signature. For best results, 3of4, 3of5, 3of6, 4of5, 4of6, 4of7, 5of6, or 5of7.

History has demonstrated over and over again the risk of hot wallets even to highly credible organizations. Nonetheless, many platforms have hot wallets for convenience. While such losses are generally compensated by platforms without issue (for example Poloniex, Bitstamp, Bitfinex, Gatecoin, Coincheck, Bithumb, Zaif, CoinBene, Binance, Bitrue, Bitpoint, Upbit, VinDAX, and now KuCoin), the public tends to focus more on cases that didn't end well. Regardless of what systems are employed, there is always some level of risk. For that reason, most members of the public would prefer to see third party insurance.
Rather than trying to convince third party profit-seekers to provide comprehensive insurance and then relying on an expensive and slow legal system to enforce against whatever legal loopholes they manage to find each and every time something goes wrong, insurance could be run through multiple exchange operators and regulators, with the shared interest of having a reputable industry, keeping costs down, and taking care of Canadians. For example, a 4 of 7 multi-sig insurance fund held between 5 independent exchange operators and 2 regulatory bodies. All Canadian exchanges could pay premiums at a set rate based on their needed coverage, with a higher price paid for hot wallet coverage (anything not an air-gapped multi-sig cold wallet). Such a model would be much cheaper to manage, offer better coverage, and be much more reliable to payout when needed. The kind of coverage you could have under this model is unheard of. You could even create something like the CDIC to protect Canadians who get their trading accounts hacked if they can sufficiently prove the loss is legitimate. In cases of fraud, gross negligence, or insolvency, the fund can be used to pay affected users directly (utilizing the last transparent balance report in the worst case), something which private insurance would never touch. While it's recommended to have official policies for coverage, a model where members vote would fully cover edge cases. (Could be similar to the Supreme Court where justices vote based on case law.)
Such a model could fully protect all Canadians across all platforms. You can have a fiat coverage governed by legal agreements, and crypto-asset coverage governed by both multi-sig and legal agreements. It could be practical, affordable, and inclusive.

Now, we are at a crossroads. We can happily give up our freedom, our innovation, and our money. We can pay hefty expenses to auditors, lawyers, and regulators year after year (and make no mistake - this cost will grow to many millions or even billions as the industry grows - and it will be borne by all Canadians on every platform because platforms are not going to eat up these costs at a loss). We can make it nearly impossible for any new platform to enter the marketplace, forcing Canadians to use the same stagnant platforms year after year. We can centralize and consolidate the entire industry into 2 or 3 big players and have everyone else fail (possibly to heavy losses of users of those platforms). And when a flawed security model doesn't work and gets breached, we can make it even more complicated with even more people in suits making big money doing the job that blockchain was supposed to do in the first place. We can build a system which is so intertwined and dependent on big government, traditional finance, and central bankers that it's future depends entirely on that of the fiat system, of fractional banking, and of government bail-outs. If we choose this path, as history has shown us over and over again, we can not go back, save for revolution. Our children and grandchildren will still be paying the consequences of what we decided today.
Or, we can find solutions that work. We can maintain an open and innovative environment while making the adjustments we need to make to fully protect Canadian investors and cryptocurrency users, giving easy and affordable access to cryptocurrency for all Canadians on the platform of their choice, and creating an environment in which entrepreneurs and problem solvers can bring those solutions forward easily. None of the above precludes innovation in any way, or adds any unreasonable cost - and these three policies would demonstrably eliminate or resolve all 109 historic cases as studied here - that's every single case researched so far going back to 2011. It includes every loss that was studied so far not just in Canada but globally as well.
Unfortunately, finding answers is the least challenging part. Far more challenging is to get platform operators and regulators to agree on anything. My last post got no response whatsoever, and while the OSC has told me they're happy for industry feedback, I believe my opinion alone is fairly meaningless. This takes the whole community working together to solve. So please let me know your thoughts. Please take the time to upvote and share this with people. Please - let's get this solved and not leave it up to other people to do.

Facts/background/sources (skip if you like):



Thoughts?
submitted by azoundria2 to QuadrigaInitiative [link] [comments]

semi-quick answers to common questions of new people

so people often ask similar questions over here and because they are getting probably kinda annoying over time to many I just try to answer as many as I find. if you have more that would fit here, add them to the comments

submitted by My1xT to ledgerwallet [link] [comments]

Place of cryptocurrency in the portfolio of a modern investor

Place of cryptocurrency in the portfolio of a modern investor
Hello! 👋🏻 In this post, we will tell you about the place of cryptocurrencies in the portfolio of a modern investor.
📌 Previously, cryptocurrencies were perceived by many as just a toy for enthusiasts who, for some reason, do not like modern money.
💰 Now, cryptocurrencies have become full-fledged money for many, with excellent potential for investing not only in coins but also in the projects themselves, which offer their revolutionary solutions.
🔹 The principle of digital money boils down to the fact that only occasionally some cryptocurrencies can have an additional emission. Most of the coins are only produced in limited quantities.
🔹 Here you can draw an analogy with gold. In the world, its quantity is limited, but it is a valuable asset that will always have a high value and will inevitably grow in value over time.
💎 This is how Bitcoin is perceived by many. And if you look at the chart of Bitcoin and gold, you can find many similarities.
📈 In addition to Bitcoin, there are many other altcoins that tend to grow in value. This was the case, for example, with ETH, which has grown by over 1000% over several years.
💰 Thus, in the long term, the cryptocurrency levels out in price and has the potential for growth and contributes to the diversification of the investor's portfolio. Therefore, cryptocurrency has great investment potential and should be in the portfolio of every investor.
🔹 PYRK is a crypto coin based on such projects as Dash and Digibyte and has a high degree of anonymity (Privatesend).
🔹 PYRK is a highly technological coin with a number of unique solutions, including a triple mining algorithm (SHA256, Scrypt, and X11), instant transaction via InstantSend, etc.
🔹 In addition, PYRK is attractive by the possibility of generating passive income through the deployment of masternodes.
Purchase PYRK here: http://pyrk.org/
https://preview.redd.it/bapt7gw83tf51.png?width=1200&format=png&auto=webp&s=a87ea34023d403dca84e272011686f00d9ba1463
submitted by VS_community to pyrk [link] [comments]

This is just a theory. What do you guys think?

Just theory if Satoshi wrote the name of the creator which would be 256th puzzle of a puzzle game 14 years ago, and the card has written "find me" in Japanese at side forming this puzzle. Just for looking this picture is it possible to find this gentleman on the internet as the location from the picture been discovered " Kaysersberg, Alsace, France". It would be a great coincidence if the owner of the 256th card was really Satoshi in a ranking of 256 cards? This will be very important figure for 256 Bitcoin value. People might on here might ask why and explain your theory? Well just for a explanation this puzzle is complex and if his card is 256th puzzle card and is a value of 256. What if the answer is 2SHA256 which SHA stands for Secure Hash Algorithm that Bitcoin has been using for mining and address generation. This hash is one of those high security cryptography functions and also the length would have data fix that might contribute of harmony between these blocks.
1.) For example, word would be "squanch" with SHA256 encryption -> “5bfdd901369fbb2ae5052ab5307c74f97651e09bd83e80cf3153952bb81cc7b8”.
2.) satoshi -> DA2876B3EB31EDB4436FA4650673FC6F01F90DE2F1793C4EC332B2387B09726F
3.) Satoshi -> 002688CC350A5333A87FA622EACEC626C3D1C0EBF9F3793DE3885FA254D7E393
** you can play around with it => https://passwordsgenerator.net/sha256-hash-generato **
SHA256 with its code consist 32 bits and 64 digits, so we should not get too far from solving this puzzles some how if this was an method of solving this question via value. Also, the puzzle from this game began in which is called "The city of Perplex". This game has a original concept and also promise reward $200,000 when all the puzzles on the cards are solved. But, think about it f the 256th card is Satoshi that has not been solved it has not been resolved on card number 238. As you can imagine, the 256th card, which is “Satoshi”, has not been resolved. Otherwise, it has not been resolved on card number 238. Hint that our card gives to everyone to solve the puzzle is “ My name is Satoshi ...”. Needless to say with the game has been on the market since 1-2 years before the generation of Bitcoin and Crypto has started. Although I"m also thinking the man might not be Satoshi as his a player, so looking that either looks and style similar is only hope.
submitted by LeftSubstance to FindSatoshi [link] [comments]

Questions Regarding BTC Mining

I have been wondering about some of the details related to bitcoin mining bit couldn't find an answer, I would bet the answer can be found was I capable of looking up the mining algorithms but I'm not that savvy (not yet at least) so here it goes.
I understand that during mining, the miners take the hash calculated from a given block then appends a nonce to it and calculate SHA256 for the whole expression, if the hash value is larger than the limit set by mining difficulty, the miner must attempt again the SHA256 calculation again by appending a different nonce and repeat until a hash smaller than the limit is found.
What I wanted to ask is the following:
1) Is my understanding above correct? If not then please disregard the below questions since they would be garbage most likely (correcting the fault lines in my understanding would more than enough).
2) How are these nonces to be appended chosen? Are they chosen randomly at every attempt or changed sequentially by adding 1 for example?
3) Does the bitcoin blockchain enforces the use of a specific algorithm for generating nonces or is it left to the miners to concoct their own algorithms as they see fit? (If enforced by the bitcoin block chain, I'd appreciate an explanation why)
4) If the choice is left to miners to generate nonces as they see fit, what is the best approach to generating these nonces available?
5) In a mining pools where many ASICs are hashing together, is there any coordination at the pool or at least at individual ASIC miner level to ensure no two ASIC chips are calculating the hash for the same nonce while trying to find the block? If not, what are the difficulties preventing such an implementation?
Thanks in advance and if there are any useful resources addressing these questions please share them especially ones describing the mining algorithm generating nonces.
submitted by BitcoinAsks to BitcoinMining [link] [comments]

Exchanges, help save Bitcoin Cash from Tax!

Hey guys, please contact your Exchange if u don't want to see $BCH become $BTAX by implementing Infrastructure Funding Plan and taking 5% of all block reward and transaction fees for few selected developers starting May 15th.
Ask them to change their client from @Bitcoin_ABC to @BitcoinCashNode as they otherwise will support this fundamental change if - only - 2.5% of all SHA256 Bitcoin miners vote for it!
This would damage their business as few #BitcoinCash customers support this drastic change and do not want Bitcoin Cash name and $BCH ticker be stolen yet again, just check btc & read.cash, for example: https://www.reddit.com/btc/comments/f670m3/understand_whats_at_stake_personal_remarks_on_how/?utm_medium=android_app&utm_source=share
Also made video about it: https://youtu.be/O7PV3MZoG08
Here interview with @im_uname who is leading Tax resistance and released new client "Bitcoin Cash Node" that is fork of BitcoinABC client but without IFP. Not only a technical Mastermind but also high morals & nice character: https://youtu.be/qTEE5rauRQg
submitted by Marc_De_Mesel to btc [link] [comments]

Why the proposed soft-fork WILL cause a chain-split, a hash-war and market uncertainty

The idea behind a funding plan itself is not a bad one. Developers need funding to maintain the network. Yet the proposed solution is a very bad one, here is why.
BCH is a minority chain. There are many miners that have more hashrate than the total hashrate that is mining BCH at a given time. This is a cause for concern since it means (not) enforcing a soft-fork is easy for attackers that (at the moment) have more than 2% of the total SHA256 hashrate.
If you think this through logically, one (or more parties) will mine BCH without the proposed soft-fork, even if it's only to disturb BCH (for example: Coingeek and Nchain). If they are able to get 51% or more of the hashrate every Bitcoin Cash node will follow that chain. This means 2 chains exists, yet no node implementation will follow the soft-forked chain if they are behind in PoW.
This will start (yet another) hash-war (but this time for real) since both sides will want to find 10 blocks first so they will be the winning chain permanently (because of the re-org protection). This will scare users, businesses and investors and will probably cause for another reduction in price, and will set BCH back for years to come.
I think the current proposed implementation is just a very stupid idea, like these miners want BCH to be attacked. Doing this as a hard-fork can be considered, but should be discussed with the community and other developers. But i don't think that is a good idea in the current form either (sending 12.5% of block reward to a centrally controlled address) and may also cause for different node implementation (or a forked ABC node) that will not include this change. It seems like this hasn't been thought through as well and doing this on such short notice (by may 15th) will hurt BCH BADLY. Please at least discuss this with the community instead introducing such a major change without thinking about the consequences.
submitted by backlogg to btc [link] [comments]

12632 BTC PUZZLE ~(Approximately $80 Million)

12632 BTC PUZZLE ~(Approximately $80 Million)

12632.37162517 BTC hidden in this picture below:
12632.37162517 BTC hidden in 1CoV19
Figure it out, find the key to the Bitcoin, and claim the prize.
Whoever cracks the code can do whatever he/she wants (including donating to charity).
While solving the puzzle you can find private keys to 5 more BTC addresses with huge value.
Congrats to the genius who figures it out.
View the address:16eht5osxarvsX9rFBuNgey18N3TFxeE1P
HINTS:
Address: 1CoV19Nw1731inbx38t3Y2mcdnCehA9FmJ
12 Words 1CoV19.jpeg
A=16eht5osxarvsX9rFBuNgey18N3TFxeE1P
B=1CoV19Nw1731inbx38t3Y2mcdnCehA9FmJ
Private Key A= SHA256(passphrase) 1CoV19.jpeg + B
Mnemonic Code Converter
Sha256 — Reverse lookup, unhash and decrypt

Example:
This private key: KyTxSACvHPPDWnuE9cVi86kDgs59UFyVwx2Y3LPpAs88TqEdCKvb
The public address is:13JNB8GtymAPaqAoxRZrN2EgmzZLCkbPsh
The raw bytes for the private key:4300d94bef2ee84bd9d0781398fd96daf98e419e403adc41957fb679dfa1facd
These bytes are actually sha256 of this public address! 1LGUyTbp7nbqp8NQy2tkc3QEjy7CWwdAJj
....more Examples:
1HwxL1vutUc42ikh3RBnM4v2dVRHPTrTve from Sha256(1FfmbHfnpaZjKFvyi1okTjJJusN455paPH)
1FNF3xfTE53LVLQMvH6qteVqrNzwn2g2H8 from Sha256(1H21ndKEuMqZbeMMCqrYArCdV8WeicGehB
13FzEhD3WpX682G7b446NFZV6TXHH7BaQv Sha256(1E1rSGgugyNYF3TTr12pedv4UHoWxv5CeD)
1LVRWmpfKKcRZcKvi5ZGWGx5wU1HCNEdZZ Sha256(1CVPe9A5xFoQBEYhFP46nRrzf9wCS4KLFm)
1HhNZhMm4YFPSFvUXE6wLYPx63BF7MRJCJ Sha256(145Sph2eiNGp5WVAkdJKg9Z2PMhTGSS9iT)
1G6qfGz7eVDBGDJEy6Jw6Gkg8zaoWku8W5 Sha256(18EF7uwoJnKx7YAg72DUv4Xqbyd4a32P9f)
1MNhKuKbpPjELGJA5BRrJ4qw8RajGESLz6 Sha256(15WLziyvhPu1qVKkQ62ooEnCEu8vpyuTR5)
18XAotZvJNoaDKY7dkfNHuTrAzguazetHE Sha256(15SP99eiBZ43SMuzzCc9AaccuTxF5AQaat)
1HamTvNJfggDioTbPgnC2ujQpCj4BEJqu Sha256(14nuZCWe76kWigUKAjFxyJLFHQyLTsKXYk)
17iqGkzW5Y7miJjd5B2gP5Eztx8kcCDwRM Sha256(1MB3L1eTnHo1nQSN7Lmgepb7iipWqFjhYX)
15M7QfReFDY2SZssyBALDQTFVV1VDdVBLA Sha256(16bjY7SynPYKrTQULjHy8on3WENxCmK4ix)
1LgwKwv9kt8BwVvn6bVWj8KcqpP9JSP1Mh Sha256(1Q81rAHbNebKiNH7HD9Mh2xtH6jgzbAxoF)


Address: 1CoV19Nw1731inbx38t3Y2mcdnCehA9FmJ
will be the next Puzzle if the community decides to raise its value.
Its private key hints will revealed here to solve.
Good Luck .....
submitted by CovidBTC to Bitcoin [link] [comments]

Why I am supporting Bitcoin Cash

First, I want to say that I believe that Bitcoin (BTC) will moon and that lambo will rain, for several reasons that I won’t explain here and now. So please don't shit on me or down vote this post without explaining yourself properly. I'm saying this because the crypto community is full of young and emotional person insulting each other all the time without being able to explain their view clearly. I’m just sharing my story and my opinion, if I say something wrong, please let me know. No need to be emotional.
My story: I’m French (Forgive my English), a software engineer, working from home, previously in the banking industry, big noob in blockchain code related. I have been supporting bitcoin for a couple of times now, unfortunately I discovered it a bit late, promoting it to people around me as the peer to peer cash system and hoping that it will give us our financial freedom.
During this bear market and after losing a big part of my coins, I finally took the time to get a better understanding of each coin I’m holding and I quickly realised that Bitcoin Cash wasn’t a scam, that Bitcoin BTC is purely a speculative asset, the playground of professional traders, used to rekt noobs and that Lightning network will end as custodial wallets because no one will take the time/risk for opening/closing/securing a channel, especially poor people (few billions). There is no benefit for the average user in maintaining a LN node. I believe it will be more interesting to mine Bitcoin rather than maintaining a LN node.
So basically, I lost faith in the promise made by the Lightning Network which made me focusing on why Bitcoin Cash is the answer to a decentralized peer-to peer electronic cash system. I can confess that in the past I used to believe that second layer solution was the solution for everything, but I changed my mind.
To make it simple, BCH allows to make instant payment for very cheap whereas BTC can’t and won’t.

For each crypto project, I look at those different points:
1. Length of the chain
BTC and BCH are sharing the longest chain, it has been working well without any issues since now 10 years. No other project has such a good track record. This make me feel confident that the chance that this will continue to work as well for years or decades.

2. Community behind it
A good community for me is when you see technical people, risking their reputation/identity by posting videos, writing stuff and talking in public events about the project they support. Based on that, I believe the BCH community is the biggest of all. By technical people I mean someone talking using technical approach to back their opinion rather than beliefs based on emotions. Usually in the crypto space, those people are developers but it’s not always the case.
I made a small list of technical people supporting BCH:
-Peter R. Rizun: Chief Scientist, Bitcoin Unlimited.
-Vitalik Butterin (he often showed his support regarding BCH but didn’t produce any content)
-Jonald Fyookball: Electron Cash Developer
-Jonathan Toomim: Bitcoin cash developer who made interesting proof regarding scaling onchain)
-George Hotz: no need to present this awesome crazy dude!
-Amaury Séchet: Bitcoin Cash Developer and French! 😊
-Rick Falkvinge: Founder of the swedish pirate party, watch his youtube channel.
-Gabriel Cardona (Bitcoin cash developer)
-Justin Bons : Founder & CIO of Cyber Capital
-Dr. Mark B. Lundeberg: Developer researcher
And there is a lot more, but those people are people that I personally trust for their work they shared and that I like following.
Recently we had the Bitcoin cash city conference, another event full of people supporting BCH, that kind of thing doesn’t happen with other crypto. So many brilliant people supporting BCH, how could it be possible that all those guys are supporting a scam or a shitcoin. As well, there is often meetups and conferences all over the world.
The developer community is not centralized, there is multiple teams (BitcoinABC, Bitcoin Unlimited, BCHD, Bcash, Bitcoin Verde…) independent of each other arguing sometimes about technical and political stuff, this ensure that developments and important decisions are not centralized. I find this very healthy. If a fork occurs, it’s not a problem, it will simply double your coin and allows two different ways of thinking to grow and compete. This won’t happen in Bitcoin (BTC) anymore, the way of thinking is centralized for BTC, they all share the same view: the segwit workaround + small block + layer 2 = (moon + lambo) in 18 months.
Regarding CSW, I don’t believe in this guy for now but maybe I’m wrong, maybe this guy is wrongly understood but based on all the things I know about him, he seems too complicated to be someone honest. Honesty comes with simplicity.
Finally, regarding Roger Ver: He is hated a lot and I still don't understand why, I feel sorry for him, I really tried my best to hate him like the crowd, but I couldn’t find any reasons. Many people are saying that he is lying and scamming people but none of them are technically able to explain why. It's really a crazy story and I understand why some people call him "Bitcoin Jesus". I personally think he is doing a great job and I thank him.

3. The current and future adoption
BCH is used by reel people and reel shops (check the bitcoin cash map), there are transactions on the network to buy and sell real things that exist in the real world. Can you believe this? Maybe the only blockchain having that. Please let me know if you know another blockchain which is today serving the real world.
The Bitcoin cash wallet app is easy and exciting to use. Same for the app for merchant. This can be used by my old mum! The BCH roadmap shows that more features will be added to simplify and enhance the user experience. I can’t find other blockchain having that level of user friendliness.
Recently Roger Ver announced HTC mobile phone with a BCH wallet preinstalled. I read as well that Burger King is accepting BCH, but I haven’t verified if this was legit or not.

4. Existing features and roadmap
-Multiple wallets built on all platform.
-Bitcoin Cash point of sales: this app is the app that merchant should use to accept Bitcoin, as well very easy to use and takes 5min to install.
-Cash shuffle with Cash fusion allowing to transact anonymously, making BCH competing with privacy focused coins such like Zcash, Monero, Dash. I heard this function will be implemented as well on mobile devices.
-SLP token: The simplicity of creating a token and sending dividends make BCH a bit competing with all smart blockchain. Anyone can create a token, raise funds and send dividends easily and it works! Will Bitcoin Cash evolve to a smart economy?
-memo.cash: A social network stored on the blockchain, fixing the problem of censorship we have on reddit for example. I recently discovered it, it’s awesome to know that you can write whatever you want, and nobody will be able to delete it and this forever. It’s really an awesome experience. I invite you to test it. For example, yesterday I had fun creating, sending token and being tipped in BCH or in any token by random people, it really shows the potential of BCH. I think I made around 50 on chain transactions in less than one hour with less than 10 cents.
-Stable coins: We can build stable coin on BCH; this is something very important as well.
Regarding the roadmap: It’s well described on bitcoincash.org and looks promising, but no update since the last 5 months. Not sure if it’s normal.

5. Security
SHA256 based algorithm are I believe the most secure, I don’t think we need to add more regarding this. Maybe someone can help me to find some downside regarding security, often some people talk about the potential 51% attack that could occurs on BCH but I couldn’t manage to have my own opinion regarding this.
Regarding the double spending attack because of the zero confirmation, I have asked many people to explain to me how this could potentially be a problem for a real merchant. I think that small and insignificant amount doesn’t need instant confirmation but if you sell a lambo then of course you should wait for at least 5 confirmations.
To summarize I would even consider that zero conf is more advantageous than Lightning Network if you take everything into consideration. Worth case scenario if your restaurant is victim of a double spending attack a few times, you will just increase the confirmation level and prevent your customer from living your place. I think that it’s easier to print fake fiat money and try to pay with it rather than trying a double spending attack. But again, I might have misunderstood something or maybe there is more sophisticated exploits that I haven’t thought of.

6. Price
21 million coins, no inflation, the price currently around 300usd, a boiling community. The potential gains could be as good as BTC and even more. Maybe it’s the so waited coin that you will never convert back to that shit fiat. Certainly, one of the best coins to invest in now.

7. Electricity and efficiency
Since the cost of electricity is the same whatever the size of the block, it means that BCH is more environment friendly than BTC for the same amount of transaction or we can say that it’s "wasting" less energy. Maybe if LN works one day this will change.

My Conclusion:
Bitcoin is technically the worst coin; all others existing coins are better technically. But Bitcoin survives because of the network effect, illustrated by its biggest hash rate, making BTC the most secure blockchain. As well because of promises made by the Lightning Network. Bitcoin is the gold of crypto currencies. Bitcoin like Gold have both almost no utility. In a traditional market, gold drop when economy goes well and goes up when investors need to find a refuge. BTC is the drop zone for fresh meat.
Most of the BTC holders cannot think clearly regarding the BTC/BCH debate, they become completely irrational. This kind of behaviour leads to ruin, especially in trading/investment.With low fees, instant transaction, smart contracts, big community, user friendly apps, stable coin and a lot more to come, Bitcoin Cash has clearly a good future. I hope that someone will find my post useful. Cheers.
submitted by talu3000 to btc [link] [comments]

Profitability of purchasing hash rate

I'm investigating the nicehash markets for a research project and wanted to double-check my primary conclusion. In particular, it appears that purchasing hash rate on nicehash is very far from profitable, at least for the most common PoW algorithms.
For example, the SHA256 page currently shows that it is possible to purchase 1 PH (per day) for 0.0195 BTC. The current hash rate of Bitcoin is somewhere in the neighborhood of 100 EH/s == 100e3 PH/s. It takes 600 seconds (on average) to mine a BTC block, so this translates to approximately 6e7 PH to mine a block. Therefore, 1 PH can buy about 1/6e7 of a block reward or 12.5/6e7 BTC. Looking at the cost / profit ratio then, we have 0.0195 / (12.5/6e7) = 93.6e3.
So it appears that the price to purchase SHA256 hash rate would need to drop by five orders of magnitude before it was profitable. Is this correct or have I made an error somewhere in my reasoning?
Edit: Instead of "Price" units being BTC/PH/day, should it actually be BTC/(PH/s)/day (see attached image)?
https://preview.redd.it/yhqionkeqyc41.png?width=1242&format=png&auto=webp&s=608bae0cb8104dd122b3d0b82bc7685187462ef2
submitted by bissias to NiceHash [link] [comments]

Deadman switch activated on Dread

From Dread
HugBunter's Deadman Has Been Switched
Don't panic we have contingencies for this.
-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA256
Bitcoin Blockheight: 596837
Block Hash: 00000000000000000001392879d1aa00ceef235690227437315aa003593e594e
HugBunter's deadman has been switched. It has been three full days without any contact when in all purposes the site update should have been pushed already. Hug does disappear at times and recently he disappeared for just over a day do to personal problems. All I can hope is he is alive and well. Not harmed, captured, or dead.
However we must assume the worse in this case. If something happend and he is alive he will be able to validate himself with a signed PGP message and some internal information.
If he does not return in one weeks time from his message all server's content will be removed and the source code for dread will be released to the open public. In it's current state (without the upgrades that HugBunter was suppost to push three days ago) the site would be full of spam and phishing in no time. On the final days before dread's maintance system was turned on, hours of time per day was spent removing content and accounts spamming the forum. It was unusable.
This downtime was only suppost to be a few days at most to get the final touches to the codebase upgrade done without needing to handle all the spam at the same time. While HugBunter at times does disappear for days he generally doesn't do it when dread is down and can't be brought back up. I just hope he is alive.
There might be a simple explaination for this (health problems for example) but until that time we must assume the worse.
At this time if you need a darknet discussion forum there is
Darknet Avengers: http://avengersdutyk3xf.onion
Envoy Forum: http://envoys5appps3bin.onion
The Hub Forum: http://thehub7xbw4dc5r2.onion
I wish everyone the best,
Paris
-----BEGIN PGP SIGNATURE-----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E1tAluyOCNsHUhXXX9zPHXPpMwnnMXwD1mv/MPbmsjyWGfxv5AQ=
=mjsd
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submitted by DrinkMoreCodeMore to onions [link] [comments]

What Is Bitcoin Private Key: Beginner’s Guide

What Is Bitcoin Private Key: Beginner’s Guide
Most of the people in this sub probably already know what the Bitcoin private key is and how it works, but there are many newcomers who do not fully understand all the technical aspects of it. I hope you guys will find it useful.

Bitcoin Private Keys: The Basics

Let’s start with some main principles.
  • A private key is functionally similar to a password to your email account. Unlike your email address, you never share it.
  • You need your private key to be able to receive the crypto someone sends you and to have access to your funds.
  • The BTC network does not store your private keys, they are generated and stored by the wallet software. There are different types of wallets.
IMPORTANT: The private key concept does not apply exclusively to Bitcoin. Other cryptocurrencies use it too.
Now, let’s see how a private key looks and works.

Bitcoin Private Key Definition

Bitcoin private key is an alphanumeric piece of code. It includes letters and numbers, just like your public address.
However, while a public address is like your plastic card number, a private key is like your CVC. You know, those secret three digits on the back of a card?
A private address is created in a random manner when you get a cryptocurrency wallet. The possibility of creating two identical private keys is almost zero, due to the sophisticated encryption algorithm, we apply for the purpose.
In the BTC network, a private key contains 256 symbols, as we obtain it using the SHA256 encryption algorithm. This function always returns 256 symbols, no matter the input.

Bitcoin private key in various formats, including WIF.

Wallet Import Format (WIF)

Using such a long string of code is inconvenient, so a private key is often presented in WIF (Wallet Import Format). It’s a shortened version that includes only 51 characters (numbers from 0 to 9 and letters in the range of A-F) and begins with 5.
Here is a Bitcoin private key example in WIF:
5Kb8kLf9zgWQnogidDA76MzPL6TsZZY36hWXMssSzNydYXYB9KF
WIF has a few advantages over a full BTC private key version. As we have said, it’s shorter and more convenient to use. Also, it contains special pieces of code that serve to check the address for typos and correct them automatically.
WIF associates with only one private key and can be easily converted back into it, using an established algorithm.

Encrypting Private Keys

If a key looks like WIF but starts with 6, it is an encrypted version of a private key. People encrypt keys to ensure an extra layer of protection. To obtain such a string of code, we apply another algorithm. To decode (decrypt) the key we need to enter the password that we set when we were encrypting it.

How Bitcoin Private Key Works

You probably know Bitcoin as a digital payment system. To explain how it works, it would be better to compare it to a web-messenger, with massages transferring value. These ‘value messages’ are BTC transactions.
And what role a private key plays in sending these financial messages?
Let’s take a look at a real-life example.

https://preview.redd.it/fgtn8h63veu41.png?width=1261&format=png&auto=webp&s=9855f9aba70ebe7ca1f02b32c160ae78b2b42400

Using Private And Public Keys For a Transaction

Imagine you are sending 1 BTC to your friend Bill. You create a transaction and indicate yourself as the sender and Bill as the receiver of this amount. Then, you will broadcast the transaction to make the Bitcoin network aware of it.
  1. You start by choosing a private key. Using a special encryption algorithm, you derive a public key from it. You send this public key to Bill.
  2. You create a message for Bill and sign it with your digital signature. To obtain it, you pass your private key through a special encryption algorithm and attach the resulting code to the message. Every signature is unique, and you can use the same private address to produce an infinite number of them.
  3. Bill receives your message, public key, and signature and passes it through a signature algorithm. If it’s the message you sent, the algorithm returns ok.
Why we need a digital signature in the first place? There are three reasons. First, it tells the recipient that the message is from the sender he knows. Second, a digital signature makes it impossible for the sender to deny he sent the message. Third, it confirms that no one has altered the message in transit.
Unlike a traditional signature, a digital one cannot be forged. To produce it, you have to possess a secret private key.
https://preview.redd.it/k8n0vcg4veu41.png?width=624&format=png&auto=webp&s=9ab6c0bc25c0a638c4d3bfdbf86056f5462aa7d0

Why Keeping Your Private Key Secret Is Important

As we have mentioned, anyone in possession of your private key can steal your funds anytime.
If your wicked colleague Alice gets your private key (because you carelessly left your paper wallet on your desk), she can use it to create a digital signature. She can then use that signature to sign a transaction that will look like yours for the network. For instance, Alice can send all your crypto to another address. You will never be able to cancel this transaction and you are highly unlikely to know that she made it.
For this reason, you should be very careful with your private keys. Never send it to anyone using a messenger, or an email client, or a social media channel. Don’t share photographs of your private key. Never store a private key in a Google Doc file.
Please note that some desktop wallet apps store your private key in a standard directory on your hard drive. This place is a honeypot for hackers who know you are a cryptocurrency user. That’s why it’s extremely important to have up-to-date anti-virus software installed on your device.
https://preview.redd.it/bg2zd50aveu41.png?width=723&format=png&auto=webp&s=0e692f5c73c7c68ea854342b7fbeaf6aaa62f71f
Also, you may encrypt this wallet file to make it immune to malware. Many wallet apps provide this option. You will have to set a password to decrypt the private key, and the hacker will have to break this password to do it. If the password is strong, it will be a really difficult and time-consuming task.

Where To Store Private Keys: Mobile, Desktop And Hardware Wallets

As we have mentioned, the Bitcoin network does not store these keys. Instead, wallet services do it.

Mobile Wallets

Some of them allow you to keep and protect your private key, others do it automatically, applying various safety measures like 2FA or encryption. Note that nobody is responsible for it, your bitcoins will be gone if the service is hacked.

Desktop Wallets

Desktop wallets may be a good option. They provide a BTC public and private keys in the format of a file that you can download and import. You can protect this file with a strong password and safely store it on a hard drive. Don’t forget about safe storage for this drive, too. For instance, use a bank vault for this purpose.

Cold (Hardware) Wallets

Hardware wallets are the safest ones. They are small USB devices designed to store your funds and private keys offline, away from anyone who could steal them. For this very reason, hardware (or cold) wallets are impossible to hack. If you accidentally lose, damage or destroy such a device, you can recover your BTC and private keys using a backup phrase. The best-selling models of hardware wallets are Tresor and Ledger Nano S, supporting several popular coins.

https://preview.redd.it/7wlozgvcveu41.png?width=803&format=png&auto=webp&s=9c438a47a47f6bb2ba5dbd4fdfba924e8c960f47

Paper Wallets

These wallets are sheets of paper with BTC private keys and public address printed on them. Paper wallets look pretty basic and not very innovational, but it’s a safe way to store your BTC-related sensitive data. The main reason is that they are not connected to the Internet and thus are unreachable for malware attacks. This format is also immune to many mishaps that can affect electronic devices. To create a paper wallet you use a special web service like WalletGenerator.

P.S. Check out our blog if you are interested in more articles on crypto and finance
submitted by EX-SCUDO to btc [link] [comments]

Bitcoin Cash infrastructure tax

https://medium.com/@jiangzhuoeinfrastructure-funding-plan-for-bitcoin-cash-131fdcd2412e
Miscellaneous observations:
  1. Large Miners' ability to easily soft fork by themselves is a result of BCH having only a fraction of hashrate. Having a minority hashrate is not required, though: for example, a coin with 60% of hashrate could be 51% attacked by 31% hashrate. In other words, given the amount of mining centralization that exists, this problem could conceivably also affect BTC in the future.
  2. Obviously, this change is controversial. As such, highly invested miners have apparently shown a willingness to use their SHA256 hardware to execute a 51% attack. This might be evidence that Bitcoin's long term security model is basically broken. I'm sure some BTC people will dismiss this as a BCH-local problem but I feel like it's everyone's problem who uses SHA256.
  3. While the article proposes that any miners who are driven out of business will flock to BTC and drive up the hashrate, that might be an oversimplification, as some might be driven out of business entirely (further enriching miners of either coin who had large margins to begin with).
  4. As usual, BTC could theoretically avoid the incoming hashrate (and flood BCH with hashrate in the process) by changing PoW if it was considered a serious enough problem. (A similar skewing of "independent" miners to preferentially mine BTC probably already exists once existed because of ASICBOOST.)
  5. If some or all of the infrastructure tax went directly into the cartel's pockets, they could of course undercut all other miners.
  6. This post notes that a UASF could theoretically prevent such a MASF by banning multiple coinbase outputs. I'm not sure if it's that simple: imagine, for example, a scheme where all coinbases must directly pay Amaury Sechet, who then promises to reimburse 90% to the pool that mined the block. Banning pool identification strings doesn't work either: so long as mining pools can somehow encode information into blocks (for example, by manipulating the transaction set) for ~free, they can use that to secretly communicate their identity.
  7. Even Monero, which is typically much more secure against censorship than Bitcoin, isn't immune to this type of MASF because of view keys.
submitted by yamaha20 to BitcoinDiscussion [link] [comments]

Technical: Upcoming Improvements to Lightning Network

Price? Who gives a shit about price when Lightning Network development is a lot more interesting?????
One thing about LN is that because there's no need for consensus before implementing things, figuring out the status of things is quite a bit more difficult than on Bitcoin. In one hand it lets larger groups of people work on improving LN faster without having to coordinate so much. On the other hand it leads to some fragmentation of the LN space, with compatibility problems occasionally coming up.
The below is just a smattering sample of LN stuff I personally find interesting. There's a bunch of other stuff, like splice and dual-funding, that I won't cover --- post is long enough as-is, and besides, some of the below aren't as well-known.
Anyway.....

"eltoo" Decker-Russell-Osuntokun

Yeah the exciting new Lightning Network channel update protocol!

Advantages

Myths

Disadvantages

Multipart payments / AMP

Splitting up large payments into smaller parts!

Details

Advantages

Disadvantages

Payment points / scalars

Using the magic of elliptic curve homomorphism for fun and Lightning Network profits!
Basically, currently on Lightning an invoice has a payment hash, and the receiver reveals a payment preimage which, when inputted to SHA256, returns the given payment hash.
Instead of using payment hashes and preimages, just replace them with payment points and scalars. An invoice will now contain a payment point, and the receiver reveals a payment scalar (private key) which, when multiplied with the standard generator point G on secp256k1, returns the given payment point.
This is basically Scriptless Script usage on Lightning, instead of HTLCs we have Scriptless Script Pointlocked Timelocked Contracts (PTLCs).

Advantages

Disadvantages

Pay-for-data

Ensuring that payers cannot access data or other digital goods without proof of having paid the provider.
In a nutshell: the payment preimage used as a proof-of-payment is the decryption key of the data. The provider gives the encrypted data, and issues an invoice. The buyer of the data then has to pay over Lightning in order to learn the decryption key, with the decryption key being the payment preimage.

Advantages

Disadvantages

Stuckless payments

No more payments getting stuck somewhere in the Lightning network without knowing whether the payee will ever get paid!
(that's actually a bit overmuch claim, payments still can get stuck, but what "stuckless" really enables is that we can now safely run another parallel payment attempt until any one of the payment attempts get through).
Basically, by using the ability to add points together, the payer can enforce that the payee can only claim the funds if it knows two pieces of information:
  1. The payment scalar corresponding to the payment point in the invoice signed by the payee.
  2. An "acknowledgment" scalar provided by the payer to the payee via another communication path.
This allows the payer to make multiple payment attempts in parallel, unlike the current situation where we must wait for an attempt to fail before trying another route. The payer only needs to ensure it generates different acknowledgment scalars for each payment attempt.
Then, if at least one of the payment attempts reaches the payee, the payee can then acquire the acknowledgment scalar from the payer. Then the payee can acquire the payment. If the payee attempts to acquire multiple acknowledgment scalars for the same payment, the payer just gives out one and then tells the payee "LOL don't try to scam me", so the payee can only acquire a single acknowledgment scalar, meaning it can only claim a payment once; it can't claim multiple parallel payments.

Advantages

Disadvantages

Non-custodial escrow over Lightning

The "acknowledgment" scalar used in stuckless can be reused here.
The acknowledgment scalar is derived as an ECDH shared secret between the payer and the escrow service. On arrival of payment to the payee, the payee queries the escrow to determine if the acknowledgment point is from a scalar that the escrow can derive using ECDH with the payer, plus a hash of the contract terms of the trade (for example, to transfer some goods in exchange for Lightning payment). Once the payee gets confirmation from the escrow that the acknowledgment scalar is known by the escrow, the payee performs the trade, then asks the payer to provide the acknowledgment scalar once the trade completes.
If the payer refuses to give the acknowledgment scalar even though the payee has given over the goods to be traded, then the payee contacts the escrow again, reveals the contract terms text, and requests to be paid. If the escrow finds in favor of the payee (i.e. it determines the goods have arrived at the payer as per the contract text) then it gives the acknowledgment scalar to the payee.

Advantages

Disadvantages

Payment decorrelation

Because elliptic curve points can be added (unlike hashes), for every forwarding node, we an add a "blinding" point / scalar. This prevents multiple forwarding nodes from discovering that they have been on the same payment route. This is unlike the current payment hash + preimage, where the same hash is used along the route.
In fact, the acknowledgment scalar we use in stuckless and escrow can simply be the sum of each blinding scalar used at each forwarding node.

Advantages

Disadvantages

submitted by almkglor to Bitcoin [link] [comments]

How does the fairness system work on BetFury?

How does the fairness system work on BetFury?

https://preview.redd.it/9tip15i096t41.png?width=1200&format=png&auto=webp&s=a0027f11d8da2c04e1cc21ef811d299030c888fb
The BetFury community is constantly growing and attracting more and more followers! Most of all we are excited that you are interested in the details of the platform’s work. It means that we have a common goal — to make the world of crypto gambling better! We know that players are especially interested in the convenience and openness of the platform.

How does fairness work on the BetFury platform?

Every bet on BetFury is absolutely random. How are you supposed to know that? It’s a fair question! Let’s look at one case of Dice, where the random number generator chooses the winning number from 0 to 99 and preferred by user range will define the reward.
  • Let’s say we think the winning number is less than 50;
  • Random Lucky result generated and mixed with random Server seed for every bet (in this round, the number 18 was encrypted in a hash). Hash sum of this mixing is shown for the user in the time of each turnover of the game. In this case, the hash you can see under the yellow Bet button.
https://preview.redd.it/pcsrdp7a86t41.png?width=1276&format=png&auto=webp&s=8d497acf93567ea8ede679cb4752d5bb8fd2c2fd
  • The provably fair principle is based on SHA256 technology the same as Bitcoin.
  • You can check the result by clicking the “Fairness” in the window of the game and find the result of each bet.
https://preview.redd.it/wvznzo5d86t41.png?width=1240&format=png&auto=webp&s=c70c3d0fde673b0be08001519b55d6f3c3dfae2e
By clicking on the “CHECK” button, you can double-check the encrypted number (server seed + lucky number). To do this copy Random Seed, go to http://www.convertstring.com/Hash/SHA256 or use any other SHA256 hash on-line calculator. The issued hash must match that fixed on the BetFury platform.
https://preview.redd.it/2a09lk6g86t41.png?width=1335&format=png&auto=webp&s=ba4aa3dd9b024359b0c4d391b6637e433f8197e6
https://preview.redd.it/9ibwghnh86t41.png?width=707&format=png&auto=webp&s=0417c0e525ab2d00908f3cc9b6970f03945fc681
Similarly, you can check the results of each of your bets in other games on the BetFury platform.
New fairness pop-ups in Hi-Lo, Mines, Keno and Stairs.
To check fairness in these games find the “My bets” section under the game’s field. Click on one of the bets and the pop-up should appear.
As the example let’s take Mines. Here you can see when was the bet done, bet id, amount of the bet, multiplier and payout.
Copy Random Seed. Press Check Fairness to continue. In the opened window paste the Random Seed. The issued hash below must match that fixed on the BetFury platform.
https://preview.redd.it/bhearvfn86t41.png?width=552&format=png&auto=webp&s=2e0b7ed6719d7138bde3145036808ff4ff3ff900
https://preview.redd.it/uzf4z9vo86t41.png?width=1080&format=png&auto=webp&s=1816562ffa81cb83d4bbf3ae5a1b6b941c04ac54
How to check all the game statistics?
You can check the details of winning and losing bets in the tab Account — Game history.
https://preview.redd.it/3rn5y74s86t41.png?width=1400&format=png&auto=webp&s=0fd48d1044740c8c5df3850090c410b003cd1340
https://preview.redd.it/dprr0kpt86t41.png?width=1346&format=png&auto=webp&s=84dd29a18722b296cd596b1120173151a17a188d
Thanks for interest in the BetFury platform. We wish you successful bets, interesting games and excellent dividends!
________________________________________________________________________________________________________
Link to the Website: https://betfury.io Link to the Telegram: http://t.me/betfury Link to the Twitter: https://twitter.com/betfury_io Link to the Telegram Channel: https://t.me/betfuryofficialchannel Link to the Steemit: https://steemit.com/@betfury-steem Link to Facebook: https://www.facebook.com/BetFury.io/ Link to Instagram: https://instagram.com/betfury.io Link to Reddit: https://www.reddit.com/useBetFury_io
Regards, the BetFury team
submitted by BetFury_io to u/BetFury_io [link] [comments]

Solve the "storage, mining pool and exchange centralization", and only generate 1G data every year

The blockheader has two segments with a total length of 64 bit0 (of which blocktime is 64 bits), which strongly prevents the collapse effect of the sha256 operation in the ASIC miner, so that the mining difficulty will not increase indefinitely. The centralization for the high hashrate of the mining pool is strongly restricted. Census and prune the transactions (at most 4 outputs per transaction) whose all outputs are spent,in the block below 1300 depth in batches(i.e. clear up the input and output at the same time, and only keep the version of all-outs-spent transaction on the disk,--not serialize vin and vout). 250 for each batch, 20 block files(one file per block) will be reconstructed for each block received from other nodes, that is to say, 5000 transactions will be pruned at a time. And special mechanism is used to make the synchronization of data from malicious nodes error free. Only 1G data is increased every year. The data it running for 1000 years will be no more than 1T. Block size is 2M, and only 1g data is increased every year without SPV, which strongly prevents the storage of a large number of block data reducing the number of nodes. At the same time, 'four outputs per tx' limit the settlement of the mining pool, and strongly prevent the centralization of the mining pool. For example, the settlement is sent to 4000 miners, which requires 1000 transactions. All currencies are locked in the maturity of 300 blocks (the input can only be used as prevout after 300 blocks), which strongly prevents the frequency of trading speculation, the crash from the online exchange, and prevent the centralization of the biggest online exchange in the world.
This has achieved "absolute decentralization".
At present, the tip height is only 600, and there is no pre-mined. The RPC is stable and reliable same as bitcoin 0.10.2. No segwit but P2SH, a little change based on 0.10.2. Usage: $ /download-directory/bitcoind -addnode =47.114.58.108 (same for Ubuntu) with bitcoin.conf configuration file
Detailed introduction,original text is as follows: github-holyangel250-bitsupercoin
submitted by DangerousDetail8 to BitcoinSerious [link] [comments]

Solve the "storage, mining pool and exchange centralization", and only generate 1G data every year(only pc-miner)

The blockheader has two segments with a total length of 64 bit0 (of which blocktime is 64 bits), which strongly prevents the collapse effect of the sha256 operation in the ASIC miner, so that the mining difficulty will not increase indefinitely. The centralization for the high hashrate of the mining pool is strongly restricted. Census and prune the transactions (at most 4 outputs per transaction) whose all outputs are spent,in the block below 1300 depth in batches(i.e. clear up the input and output at the same time, and only keep the version of all-outs-spent transaction on the disk,--not serialize vin and vout). 250 for each batch, 20 block files(one file per block) will be reconstructed for each block received from other nodes, that is to say, 5000 transactions will be pruned at a time. And special mechanism is used to make the synchronization of data from malicious nodes error free. Only 1G data is increased every year. The data it running for 1000 years will be no more than 1T. Block size is 2M, and only 1g data is increased every year without SPV, which strongly prevents the storage of a large number of block data reducing the number of nodes. At the same time, 'four outputs per tx' limit the settlement of the mining pool, and strongly prevent the centralization of the mining pool. For example, the settlement is sent to 4000 miners, which requires 1000 transactions. All currencies are locked in the maturity of 300 blocks (the input can only be used as prevout after 300 blocks), which strongly prevents the frequency of trading speculation, the crash from the online exchange, and prevent the centralization of the biggest online exchange in the world.
This has achieved "absolute decentralization".
At present, the tip height is only 600, and there is no pre-mined. The RPC is stable and reliable same as bitcoin 0.10.2. No segwit but P2SH, a little change based on 0.10.2. Usage: $ /download-directory/bitcoind -addnode =47.114.58.108 (same for Ubuntu) with bitcoin.conf configuration file
Detailed introduction,original text is as follows: github-holyangel250-bitsupercoin
submitted by DangerousDetail8 to BitcoinMining [link] [comments]

Minerium Coin - Meet a new SHA256 cryptocurrency

Minerium is a mineable SHA256 crypto currency, a coin which use the bitcoin protocol and blockchain technology

https://mineriumcoin.com/


https://preview.redd.it/cx8eoh1cvov41.png?width=640&format=png&auto=webp&s=84e37e9f629d72f79413c0ed7baa10ee398c2fa0

Minerium coin - SHA256 cryptocurrency

Minerium Coin's goal is to be implemented for real-life use. Minerium is not just a coin, it is a cryptocurrency.
First, we are aiming to increase its value, then to get a stable price, which will happen at the end of the block rewards process in 2 years. A minimal value of 1000 Satoshis (0.00001000 BTC) is the ideal and what we will achieve.
This is why we are first focusing on an investment platform which will allow you to use Minerium to buy online. A partnership with Amazon, Newegg and Netflix, for example.
We realized that many projects have a too long mining process lasting over several years which give fewer chances to the new miners to make profits.
The new SuperDay function is the best remedy for this situation, giving a chance to everyone during the mining process. See the chart - Block_Rewards - for more details about this specifically.

Why Cryptocurrencies like Minerium is so Important?


https://preview.redd.it/d151p98fvov41.png?width=640&format=png&auto=webp&s=82d5be266983d599092da84669d1848b2abb72d2

People will realize that cryptocurrency is not a "bubble"; instead, it is a channel for massive unmet demand for private, sound money. Keynesian fear mongering regarding "evil deflation" will be proven wrong as the truism that people must spend money to live, even deflationary money, becomes obvious. Traditional banks will begin to crumble, much like J.C. Penny and Sears under the threat of Amazon. To survive, they will rely on customers who are late-adopters and laggards, among the very last to abandon the fiat system. Crypto-banks will begin to dominate. They will be global rather than national. Most people will trust their private keys to these banks, realizing that there is no perfectly secure way to store them. Convenience and "good enough" security will be the dominant paradigm. A small minority of die-hard users will continue to insist on storing their own private keys and signing their own transactions, much like a few people today insist on compiling their own Linux kernel or building their own PC. Crypto-banks will be thought of as just that - banks, not "exchanges." The fact that they provide currency exchange services will thought of as an obvious and necessary feature of any banking system. There will be no government-backed "FDIC" for crypto-banks. However, banks will compete on security, among other features, giving rise to private insurance that protects deposits. Banks will provide traditional savings-and-loan services, denominated in cryptocurrency.

https://preview.redd.it/89ff2g8gvov41.png?width=640&format=png&auto=webp&s=97b705a69966e3b121067db7d0ecf2f12cff5c98

Minerium over the years:

The reward's period lasts 730 days (2 years). After this, the miners will be compensated by the rewards of the transactions fees.
Compared to Bitcoin, Minerium has the capacity to adjust its difficulty much faster at every 3 blocks. Its ratio "max PoW/difficulty" is set up to never go very high on the mining difficulty, to avoid the blockchain being stuck and struggling for hours or days. This will allow a very fluid circulation of the blocks on the network and make a real-life use of Minerium.
For example, anyone can easily help the blockchain with a single CPU, or a cellphone and be rewarded with the mining fees. This would be a great income as the coin's value at this time will make it be worth for the very low ratio electricity/mining cost.
The remaining coins that will not be bought during the Presale period (which ends on the 1st of May) will be burnt by being thrown into a river.
Everything will be recorded in an uncut video. Its private key will be unknown to everyone, even the team. The public wallet address will be available to anyone (by block explorer or the cli-command in the wallet) and you will have access to it at any time to verify that no coins will ever be spent.
The goal is to have fewer coins in circulation. This will increase its value, giving less control to one person or a group in the market.

Minerium is a cryptocurrency that has to be used and developed by and for the people.

OFFICIAL LINKS:

Website: https://mineriumcoin.com/
BitcoinTalk ANN: https://bitcointalk.org/
Explorer: https://mineriumexplorer.com/
GitHub: https://github.com/MINERIUM-COIN
Telegram: https://t.me/MineriumCoinOfficial
Twitter: https://twitter.com/mineriumcoin
Discord: https://discord.gg/yPfMCwH
submitted by phabulu to MineriumCoin [link] [comments]

Minerium Coin - Meet a new SHA256 cryptocurrency

Minerium Coin - Meet a new SHA256 cryptocurrency

Minerium is a mineable SHA256 crypto currency, a coin which use the bitcoin protocol and blockchain technology

https://mineriumcoin.com/


https://preview.redd.it/cx8eoh1cvov41.png?width=640&format=png&auto=webp&s=84e37e9f629d72f79413c0ed7baa10ee398c2fa0

Minerium coin - SHA256 cryptocurrency

Minerium Coin's goal is to be implemented for real-life use. Minerium is not just a coin, it is a cryptocurrency.
First, we are aiming to increase its value, then to get a stable price, which will happen at the end of the block rewards process in 2 years. A minimal value of 1000 Satoshis (0.00001000 BTC) is the ideal and what we will achieve.
This is why we are first focusing on an investment platform which will allow you to use Minerium to buy online. A partnership with Amazon, Newegg and Netflix, for example.
We realized that many projects have a too long mining process lasting over several years which give fewer chances to the new miners to make profits.
The new SuperDay function is the best remedy for this situation, giving a chance to everyone during the mining process. See the chart - Block_Rewards - for more details about this specifically.

Why Cryptocurrencies like Minerium is so Important?


https://preview.redd.it/d151p98fvov41.png?width=640&format=png&auto=webp&s=82d5be266983d599092da84669d1848b2abb72d2

People will realize that cryptocurrency is not a "bubble"; instead, it is a channel for massive unmet demand for private, sound money. Keynesian fear mongering regarding "evil deflation" will be proven wrong as the truism that people must spend money to live, even deflationary money, becomes obvious. Traditional banks will begin to crumble, much like J.C. Penny and Sears under the threat of Amazon. To survive, they will rely on customers who are late-adopters and laggards, among the very last to abandon the fiat system. Crypto-banks will begin to dominate. They will be global rather than national. Most people will trust their private keys to these banks, realizing that there is no perfectly secure way to store them. Convenience and "good enough" security will be the dominant paradigm. A small minority of die-hard users will continue to insist on storing their own private keys and signing their own transactions, much like a few people today insist on compiling their own Linux kernel or building their own PC. Crypto-banks will be thought of as just that - banks, not "exchanges." The fact that they provide currency exchange services will thought of as an obvious and necessary feature of any banking system. There will be no government-backed "FDIC" for crypto-banks. However, banks will compete on security, among other features, giving rise to private insurance that protects deposits. Banks will provide traditional savings-and-loan services, denominated in cryptocurrency.

https://preview.redd.it/89ff2g8gvov41.png?width=640&format=png&auto=webp&s=97b705a69966e3b121067db7d0ecf2f12cff5c98

Minerium over the years:

The reward's period lasts 730 days (2 years). After this, the miners will be compensated by the rewards of the transactions fees.
Compared to Bitcoin, Minerium has the capacity to adjust its difficulty much faster at every 3 blocks. Its ratio "max PoW/difficulty" is set up to never go very high on the mining difficulty, to avoid the blockchain being stuck and struggling for hours or days. This will allow a very fluid circulation of the blocks on the network and make a real-life use of Minerium.
For example, anyone can easily help the blockchain with a single CPU, or a cellphone and be rewarded with the mining fees. This would be a great income as the coin's value at this time will make it be worth for the very low ratio electricity/mining cost.
The remaining coins that will not be bought during the Presale period (which ends on the 1st of May) will be burnt by being thrown into a river.
Everything will be recorded in an uncut video. Its private key will be unknown to everyone, even the team. The public wallet address will be available to anyone (by block explorer or the cli-command in the wallet) and you will have access to it at any time to verify that no coins will ever be spent.
The goal is to have fewer coins in circulation. This will increase its value, giving less control to one person or a group in the market.

Minerium is a cryptocurrency that has to be used and developed by and for the people.

OFFICIAL LINKS:

Website: https://mineriumcoin.com/
BitcoinTalk ANN: https://bitcointalk.org/
Explorer: https://mineriumexplorer.com/
GitHub: https://github.com/MINERIUM-COIN
Telegram: https://t.me/MineriumCoinOfficial
Twitter: https://twitter.com/mineriumcoin
Discord: https://discord.gg/yPfMCwH
submitted by phabulu to MineriumCoin [link] [comments]

SHA256 Code Animation What is a Bitcoin hash and SHA-256 - YouTube What is SHA 256 - How sha256 algorithm works  sha 256 bitcoin  sha 256 blockchain  sha2 in hindi Que es SHA-256 y el HASH en Bitcoin!!!!? Mining Bitcoin with pencil and paper - YouTube

Bitcoin SHA256 implementation with MIDSTATE Optimization - aseemgautam/bitcoin-sha256 Bitcoin uses: SHA256(SHA256(Block_Header)) but you have to be careful about byte-order. For example, this python code will calculate the hash of the block with the smallest hash as of June 2011, Block 125552. The header is built from the six fields described above, concatenated together as little-endian values in hex notation: >>> import hashlib >>> header_hex = ("01000000 ... For example, if the nonce were to have a variable “12345”, this would be placed in the block header alongside the other 5 parameters listed above. The block header would then be hashed, however, if the resulting hash proves to be above the target, the miner must try again. The miner can then change the nonce to another variable, e.g. “90872”, and place this inside the block header, wit Bitcoin Algorithm Explained. Founded by a pseudonymous individual or group, Bitcoin is a peer-to-peer digital currency that is designed to serve as a medium of exchange for the purchase of goods and services. With Bitcoin, individuals are able to execute cross-border digital payments at virtually no cost, all without having to involve any financial intermediaries. SHA-256 is a member of the SHA-2 cryptographic hash functions designed by the NSA. SHA stands for Secure Hash Algorithm. Cryptographic hash functions are mathematical operations run on digital data; by comparing the computed "hash" (the output from execution of the algorithm) to a known and expected hash value, a person can determine the data's integrity.

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SHA256 Code Animation

https://GeorgeLevy.com/Free presents: In this video, I answer a question from one of the viewers of my YouTube channel YouTube.com/GeorgeLevy : What is a SHA... This feature is not available right now. Please try again later. Since SHA1 has been broken, SHA256 is seen as one of the contenders to replace it. In this video I review why it might be needed and how it functions on a lo... What is SHA256? Bitcoin Mining using Raspberry Pi explains to you about bitcoin mining from its very basics. Initially, you will learn about all the different terminologies associated with the ... price as of Bitcoin is most liquid cryptocurrency at the moment.You will be receiving Bitcoin payouts on daily basis depending on amount of MH/s you purchased.] Bitcoin Mining Algorithm Example ...

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