What is Bitcoin Mining? How Does it Actually Work? (2020
IQ.cash smart trading and mining
https://preview.redd.it/z0xjotzxta451.png?width=724&format=png&auto=webp&s=a0c223a017dd58aa54d506e51d041f5820db4a3b Everyone from time to time has an interest in entering into a variety of investments with the aim of earning income from their home or comfort as long as they do not have to go through an inefficient employment system. This is the result of technological developments around, and to achieve this, many fall victim to con artists who promise a platform to get a comfortable income. Today I will introduce the ICO IQ cash project, one of the PLATFORM THAT ALLOWS YOU TO GET IN YOUR COMFORT.
What is IQ cash
IQ Cash is a cryptocurrency that may be used to run and increase further exposure to what has been offered. Making it is to remove from where to stop because it has been made and decided to go further because it was not possible. IQ can be used to get a place that has to be part of this trend, even if we are looking for an open place where investors can do the same with other investors. The aim is to give everyone not agreement about most and at least ROI in 300% or more of you in passive form. The IQCash company is truly unique because it will allow users to get the maximum return on investment. IQ cash is a company that will be able to combine the best and most perfect opportunities to lead exchanges in the cryptocurrency market. With IQ network Masternode you can avoid a variety of situations, problems, and unusual problems, and such a process will eliminate any deficiencies. The IQCash platform is also suitable for traders who already have experience in their activities, and of course for novice traders who have just entered the door of buying and selling crypto. No one will experience problems, everyone will only admire sales using IQCash. Learn more — http://iq.cash.
Why I chose to take a position on IQ. Cash?
Because there are many kinds of benefits for investors. except for profits up to 300%, I will be able to introduce all profits to investors. 1. Security Cryptocurrency now has a variant of active users in the world and also the number is growing rapidly! User accounts cannot be blocked, and funds cannot be accessed by anyone but the owner. 2.MASTERNODE Iq. Cash uses the consensus of the PoW algorithm with the support of the Masternode system. This makes the project economically attractive to mine 43% and provides 57% of passive income for Masternode holders. Masternode provides network integrity, transaction anonymity, and transaction speed. ways to get Masternode: You must take the position of 3000 IQ. 3. ANONIMITY The anonymity of transactions in the system is provided by the PrivateSend algorithm. Users can trust the system completely. they don’t need to worry about third-party access to data because the system encrypts data securely when transferring and receiving assets. 4. ASIC RESISTANCE Technology that solves problems accelerates the expansion of network complexity significantly when using ASIC (compared to CPU usage). IQ Cash Network uses the NeoScrypt algorithm to solve this problem. 5. TRANSACTION speed High-speed transactions are guaranteed by InstantSend data exchange across networks. The transaction time is about 5 seconds. 6. IQ Network decentralized. Cash implies weaknesses to create sites that combine the dominant influence on other network members. Effects on coins that are excluded due to their release are prohibited, and extra emission is not provided.
Buy 3,000 IQ or better 3001 because 1 is spent on commission transactions.
Download the Files application (Android or iOS) for mobile devices Open IQ. Cash Coin Purses in the application.
Enter 3,001 IQ in the wallet and create a MasterNode server and deposit. Pay for hosting service providers on Flits.
You will be charged EUR 1.99 per month, get profit and spend on your needs or create the next MasterNode to extend profits in line with the number of MasterNode!
How do I buy cash IQ
Go to the acquisition page and you will see an open window where you will pay the amount of coins you want to shop for. You don’t need to worry about the next steps because we will arrange the rest by buying IQ coins. Cash and FLS (to close Flits services) from the exchange.
Fill in «IQ wallet address» and «FLS wallet address» in the Flits application.
get a package. One package includes 3000 IQ. Cash and Bitcoin services for Flits for five months. When the cash transfer is complete, open the IQ-MasterNode window and make it comparable to the coins purchased (3000 IQ for 1 MasterNode).
activate MasterNode and get profit. You will follow the current exchange rate on the Flits application or with any crypto trading coins.
Wallets and Exchanges:
The IQ cryptocurrency wallet is available on all three Windows, Mac and Linux platforms.
• Algorithm: PoW, NeoScrypt (ASIC resistance) • Block time: 120 seconds • Prizes per block: 25 IQ • Block Block Reward Distribution: 57% to Masternodes and 43% to Miners, both taken from the formula (Reward-6%), where 6% is reserved for the DAO system • Block rewards can be sliced 12% every year • Max coins: 56 900,000 IQ • Premine: 7 900 000 IQ • Mining within 25 years
IQ.cash has studied the crypto market well enough to draw the model. This uses the mining system and MasterNode. The mining protocol will attract contributors exponentially while MasterNode will help ensure network speed, governance, and sustainability. Because MasterNode is also a cryptocurrency node, becoming a MasterNode on the IQ.cash system requires an investment commitment. This is a way to make a profit in this system. Investment is rewarded with a commission for each trade made by the system. This will help ensure that enough users try to become a MasterNode and thus make a profit without having to leave the comfort of their home.
4. Spreadstreet needs to connect to an external API, click on “Allow”.
Click "Allow" when prompted Note on security: All add-ins within the store go through a review. This is a wonderful security measure, especially in the Crypto industry, which is rife with scams and hacks.
5. Make sure the add-on is activated in your sheet:
Go to Add-on > Spreadstreet > Help
Click on View in store , then click on Manage and check Use in this document:
Data returned includes: Coin, ID, Tag, Algorithm, Block Time, Block Reward, Block Reward 24, Last Block, Difficulty, Difficulty 24, Net Hash, Exchange Rate, Exchange Rate Volume, Exchange Rate Currency, Market Cap, Estimated Rewards, Estimated Rewards 24, BTC Revenue, BTC Revenue 24, Profitability, Profitability 24, Lagging, and Timestamp
Example usage using the GUI: Open the Add-in Click “Add” to view the list of available APIs Click on the “WhatToMine” icon Click “Stats” Click “Insert” Click “Run”. This will paste values into the currently selected Cell, and save that in the main GUI for future retrieval Example usage using the =SS() Formula: =QUERY(A:W,”select A, T where T is not null order by T desc”) returns the most profitable GPU-minable cryptocurrencies.
How to use for ASIC-Mineable Coins
How does WhatToMine calculate profitability for ASIC-mineable cryptocurrencies?
SHA-256 values are adapted for Antminer S9, Scrypt for L3+ and X11 for D3.
Price is formulated from the following exchanges: Abucoins, Bitfinex, Bittrex, Bleutrade, Cryptopia, HitBTC, Poloniex, YoBit
Hash rate and wattage vary by algorithm. See the main page of WhatToMine for default values
Calculations are based on mean values, so final results will vary
What is the calculation missing?
Calculation does not account for future changes in price
Calculation does not account for future changes in network hash rate
Block rewards are fixed, future block reward reductions not taken into consideration
No significant changes to the underlying algorithm are assumed (for example, the Casper update)
Get most profitable ASIC coins Call the function =SS(“get-asic-whattomine”, true) to return various stats from ASIC-minable cryptocurrencies.
Data returned includes: Coin, ID, Tag, Algorithm, Block Time, Block Reward, Block Reward 24, Last Block, Difficulty, Difficulty 24, Net Hash, Exchange Rate, Exchange Rate Volume, Exchange Rate Currency, Market Cap, Estimated Rewards, Estimated Rewards 24, BTC Revenue, BTC Revenue 24, Profitability, Profitability 24, Lagging, and Timestamp
Example usage: =QUERY(A:W,”select A, T where T is not null order by T desc”) returns the most profitable GPU-minable cryptocurrencies.
Common issues and how to fix:
Do not keep your sheet open at all time. This will prevent the rates from refreshing. The rates will auto-refresh each time you re-open your sheet.
The add-on may not work right away on other old spreadsheets. You need to do this to activate Spreadstreet: Open the old sheet, click the menu Add-ons / Spreadstreet / Help / View in store, and then click Manage and in the dropdown menu click Use in this document .
Current Bitcoin Carbon Emissions. The numbers. Can we discuss please?
I received a PM from a redditor about a old comment. His PM reads -
So back 10 months ago I posted this comment and you responded with the most reasoned response about the entire Bitcoin network emitting less carbon than a single 747. It made me feel much better about Bitcoin. It also confused me this past few weeks with people posting stories stating that Bitcoin will soon use nearly 0.1% of the world's energy and already consumes more power than every single solar panel in the entire world produces. Those two don't really square, so I looked back and the article you reference was from 2014. I'm curious if you've reevaluated your stance on bitcoin or perhaps have some insight that the current hysteria is just overblown?
Since I've spent the time doing some napkin math (I could be horribly wrong on this, someone please correct me!), I thought I should make this post public for everone to evaulate my maths and my reasoning. First, I would just redirect to AA's great clip on the subject - https://www.youtube.com/watch?v=fExR-IKozOY As for re-evaluating my position, yes, constantly. Im going to do this really quickly, so unsure of accuracy, but should give a rough ball park. http://www.yousustain.com/footprint/howmuchco2?co2=761+tons Says its about 761 tons for a 747 to fly 24 hrs. https://www.thebalance.com/how-much-power-does-the-bitcoin-network-use-391280 Claims 1 watt per 1 second gigahash. Comes out to 343 mW per second. Thats 1234800 mW per hour, which equals 29635200 mWh for 24 hrs. The formula used to calculate megawatt-hours is Megawatt hours (MWh) = Megawatts (MW) x Hours (h). In this case, I've used 24 hours since we are comparing to 24 hours of a 747 flying, so 24 MWh. So currently btc mining has a rate of 1,234,800 per MWh. Putting 29635200000 (previous mWh * 1000 for kWh) into this government calculator will give you caron comparisons. That calculator claims an equivilent of 2,481,717,074 gallons of gas consumed. Yes, thats nearly 2.5 billion. To make this comparison more comprehensible.... https://www.eia.gov/tools/faqs/faq.php?id=23&t=10
In 2017, about 143.85 billion gallons (or about 3.40 billion barrels1) of finished motor gasoline were consumed2 in the United States, a daily average of about 391.40 million gallons (or about 9.32 million barrels per day).
This would be equivilent of 6.33 days of gasoline usage in the USA for a single day of mining. So go go back to our airplane analogy, the carbon calculator says that many mW = 22,055,020 metric tons of carbon emitted. I do recall looking into the airplane thing back when we were discussing it, and I remember looking at the numbers. Frankly, its impossible to believe those were accurate and im sorry. I should have double checked everything. According to - https://charts.bitcoin.com/chart/hash-rate We had around "5EHash" in august of 2017, when that comment was made. We are now at 31EHash, over a 6x fold since that comment was made. Now that we have the numbers out of the way, some things to consider... These estimates are based upon the USA's carbon calculators which measures average carbon output based on the varying technologies in the US. According to the wiki the US only is around 12% (in 2016) for renewable energy. So in general, our energy is pretty damn dirty and we put out a lot more carbon than we sequester. In that AA video, he talks about the geolocation arbitrage used by miners. This makes a lot of sense. If you are going to invest 50-500 million into a mining operation, are you going to do it in a area where it costs 12 cents per hour (US average), or where it costs 3-4 cents per kwH? See - https://www.forbes.com/sites/dominicdudley/2018/01/13/renewable-energy-cost-effective-fossil-fuels-2020/#1c69d08e4ff2 Obviously you are going to massively reduce your operational cost as that is what will lead your investment to become profitable. Fortunately for us, and the world, many of these arbitrage opportunities are in hydroelectric and geothermal energy areas. These plants are designed to be future proofed, so enterprising mining congolmerates will move to areas where they can secure very cheap energy prices. When these companies are currently using 5-15 GwH for their cities, with 50 GwH capacity, they will happily sell their extra capacity to the mining operation since that is a very favorable economic incentive to all parties. Another factor to consider is that for every single new ASIC design, they are becoming more energy efficient. So even though the hashrate is jumping, I would say the overall energy used by the network will plateau, if it has not already done so. With GMO and other giants like Samsung entering the mining design fray, this will only speed up energy efficiency. None of this is intended to be a sidestepping of the facts - Clearly the bitcoin network uses a lot of energy. And when you have less regulated countries (china, India), it presents opportunities for locals to setup mining operations inside their locality, which then uses dirty energy, increasing carbon outputs. The amount of carbon emissions per day (22,055,020 metric tons) that is above is obviously not very accurate when you account for these arbitrage opportunties. We know for a fact many of the largest mining colo's are situated near hydroelectric and Geothermal energy plants, which means that they are practically zero carbon emissions. Since we do not know the location of every miner, due to the decentralized unregulated nature of bitcoin, it is impossible to calculate how much of a reduction of tons of carbon we will get for that calculation. But even if we are generous, and say 50% of all mining is done on renewables, that still leaves 11 million tons of carbon per day, a pretty staggering amount. There is also much to hope for with scientists claiming we can be 100% renewable energy across the entire planet. Such as scientists setting to prove through empiracle data that it is feasible to convert the entire planet to 100% renewables. Though it is probably not realistic that this will happen quickly, or even at all. To give perspective, CFC's have been banned for decades and thought not in use for over a decade, yet recent data has shown levels are increasing. There will always be industry willing to destroy the world in the future for short term profit now. We should also weigh the costs and benefits of this massive network. If bitcoin becomes adopted across the world as a currency, which if you look at places like Japan, it clearly is, then this will enable literal billions of people who are currently unbanked to join into the global financial ecosystem. The personal financial soverignty that bitcoin brings is of incalcuable value. Whether the carbon emissions are worth these trade offs is a philosophical question that probably does not have an right or wrong answer. Then we must also evaluate the carbon impact that the bitcoin network would have if cryptocurrencies were to replace traditional financial networks. There are some good analysis on the carbon footprint of banks, and bitcoin mining, coindesk has done several articles, see - https://www.coindesk.com/microscope-conclusions-costs-bitcoin/ & https://www.coindesk.com/microscope-true-costs-banking/ If we are properly to examine the impact that cryptocurrency carbon emissions have on society, then we should also examine the reduction of carbon that cryptocurrency networks will have upon the banking sector. This site Claims AC & Heating results in 47.7 % of the entire USA's electricity usage. This example is just to present a understanding of how much energy these systems use. How many Banks are there around the world that have their AC on 24/7? I can imagine just that number alone would lead to a staggering level of CO2 emissions. The coindesk article claims 591k bank branches around the world. The above aritcle claims 3.5k watts for a single central air unit. I had a family member that used to run a A/C business and I've been on top of many businesses. A bank will likely have several of those units to keep the place cool, I would estimate between 2-10 depending upon size. In more good news, Bank branches are declining, and cryptocurrencies will only accelerate this. Lets hope that bitcoin is the amazon of retail brick and mortor closures. In conclusion, there is a valid and rational concern as to the amount of power that the bitcoin network brings. And instead of being dismissive, we should recognize the incredible rate at which the bitcoin network is growing on an annual basis. From 4.3EHash to 31EHash over the last year, that is about a 8x fold increase. Since we can assume that the majority of hashpower is coming online in the last year is likely newer models, these units should be at the current efficiencies. The estimates above should be roughly accurate based on this information. This information will only be used by politicians and media congolmerates to spin a very bad negative impression of the bitcoin network. And you know what? Maybe they are right. Maybe bitcoin is growing into a massive CO2 producing beast that outweighs the benefits that it brings to society. But how can we reach a consensus on this issue unless we, the hardcore bitcoiners and techophiles, bring the numbers into sunlight and discuss?
A novice (me) explains his view on DOGE and why you should mine and share.
Please to meet you, fellow shibes. Short bio: I've been mining DOGE for 22hrs straight and managed to raise 1087 (wow rich!!!). It's not much, but I can't expect more from my GTX660. It's my first crypto and I'm rather excited, so I decided to share my insight on the matter, both for feedback and, if it's correct, to aid future and current shibes maintain their interest. I'm an embedded engineer, I design hardware and I also write low level code. If you think this was useful, your tips are appreciated, but not necessary; if you share that's enough for me. TL;DR noob makes a blunt market study, seem legit, much potential, moon nearest, so interest I've been looking at http://bitinfocharts.com/ for some data, I've extracted the main criteria that looked important to me, and I've rounded it for computing ease. Let's compare Bitcoin, Litecoin and Dogecoin BTC: Volume mined so far (Vol): 12M/21M (57%) Value in $ for each unit of currency (VAL): 830 Total market cap in $ (Cap): 10.2B Reward per block in $ (R): 20700 Difficulty: 1.8M LTC: Volume mined so far (Vol): 25M/84M (30%) Value in $ for each unit of currency (VAL): 23.87 Total market cap in $ (Cap): 600M Reward per block in $ (R): 1200 Difficulty: 4000 DOGE: Volume mined so far (Vol): 33B/100B Value in $ for each unit of currency (VAL): 830 Total market cap in $ (Cap): 10.2B Reward per block in $ (R): 500 (i've taken a mean-to-worst case scenario where each block would yield 260000 DOGE, but this is variable and it's rather closer to 500000) Difficulty: 1000 (rounded it for ease, I'll excuse myself but keep in mind that the reward is also rounded towards a lower than normal value) So basically, the formula which I used is time = difficulty x 232 / hashrate Let's use the following notation 232=Q //our time quanta Let's assume I build a miner (which I intend to do, btw), that runs at 2000KH/s. This is not important, since we'll be talking about profitability. Using the previous formula, which I hope to god is correct, we get the following mining times per block: T(BTC)=10.2 x 109 x 232 / 2000 = Q x 0.408 x 107 T(LTC)= 4000 x 232 / 2000 = Q x 2 T(DOGE)= 1000 x 2^ 32 / 2000 = Q x 0.5 As we can probably see, the shortest time to farm a block (if you're mining solo) is T(DOGE). If you're mining in a pool, it wouldn't matter since the reward is proportional to your hashrate. But this time must be accounted for with a proper yield, thus I'll divide the R factor (reward per block in $) by the figures above (money versus time) and we get profitability per time spent and also per energy (assuming 1 KHs will draw the same amount of power in watts or energy in joules regardless of what you're mining for). Also, I'll reduce the Q factor for each coin, since I'm not using any unit of measure, only absolute values. So:
Resulting in (measured in the new imperial unit of measure called "profits"):
0.005 profits for BTC 600 profits for LTC 1000 profits for DOGE wow such amaze much value so interest
Now let's sink this data in and look at the possible caveats it may have: -DOGE's value was half 24hrs ago, so why should I trust this new value. much bubble so worry -LTC seems like a stable bet, much worries stop farm no moar doge -BTC is impossible to mine, with all mathematical faults this model of mine might have, but is the most stable of all and also the most valuable. Of course, there are other factors to be taken into account, which plenty of our fellow economy students can provide, but my interpretation is that DOGE, at least for a month or so, seems like a good bet for mining, and a good future investment. And if you haven't mined until now (like me) maybe you probably should. And then sit on it and use it wisely for a year before deciding to sell. And now I'll hit you with my last argument. -We (or you, hardcore miners) have mined almost all of the minable BTC. That doesn't mean it's dead or that you should ditch it. That would also impact DOGE and other currencies. Just that it seems it's not worth mining anymore. Trade it, use it to cash in doge, do whatever. Keep it, it's a good investment. -On the other hand, we've mined only 0.3 of LTC and DOGE. There's still a good 0.2 to go with normal hashing speed. Using the exponential model for difficulty, that can happen anywhere between 2 and 6 months. Just go at it. Share the love, spread the word. Why am I lecturing you? Well it's become a bit of a true clichee, but the community is awesome and, most importantly growing. I haven't seen so much traction in BTC or LTC. Trading and having DOGE is fun, and it'll always bring a smile to your face, whether you've lost it all or doubled your $. I'm thinking of putting some serious dough into a mining rig (and boy let me tell you, 2000$ for a country like mine that's a lot), but whether I end up broke or won't be able to pay for it in the long run, I'll still consider this a great first experience with e-currency (does anyone call it that way? I don't know). Much love for my fellow shibes all 'round, and if you think this is valid information, spread it. If not, let's work on a model that is both accurate and easy for the average miner that can't afford freaking ASICS. Fun trivia, and possibly a new word to look up in your dictionary. The following phrase is a pretermission, which in my language is a rhetorical figure of speech that the author uses to divert the attention from a subject, whilst still mentioning it. 'I'm not telling you to tip or anything, just share the info.' :) Your wannabe Doge on Wall Street, shiba_dragos
What benefits does Nexus bring to the blockchain space?
How does Nexus secure the network and reach consensus?
What is quantum resistance and how does Nexus implement this?
What is Nexus’ Unified Time protocol?
Why does Nexus need its own satellite network?
The Nexus Currency:
How can I get Nexus?
How much does a transaction cost?
How fast does Nexus transfer?
Did Nexus hold an ICO? How is Nexus funded?
Is there a cap on the number of Nexus in existence?
What is the difference between the Oracle wallet and the LLD wallet?
How do I change from Oracle to the LLD wallet?
How do I install the Nexus Wallet?
Types of Mining or Minting:
Can I mine Nexus?
How do I mine Nexus?
How do I stake Nexus?
I am staking with my Nexus balance. What are trust weight, block weight and stake weight?
1. What is Nexus (NXS)? Nexus is a digital currency, distributed framework, and peer-to-peer network. Nexus further improves upon the blockchain protocol by focusing on the following core technological principles:
Nexus will combine our in-development quantum-resistant 3D blockchain software with cutting edge communication satellites to deliver a free, distributed, financial and data solution. Through our planned satellite and ground-based mesh networks, Nexus will provide uncensored internet access whilst bringing the benefits of distributed database systems to the world. For a short video introduction to Nexus Earth, please visit this link
2. What benefits does Nexus bring to the blockchain space? As Nexus has been developed, an incredible amount of time has been put into identifying and solving several key limitations:
Quantum computing vulnerability
Centralized network access
Slow difficulty adjustment
Slow block times
Block reward halving
Nexus is also developing a framework called the Lower Level Library. This LLL will incorporate the following improvements:
LLC (Lower Level Cryptography): This is a suite of cutting edge cryptographic methods including hashing, asymmetric encryption, digital signatures, and symmetric encryption algorithms
LLP (Lower Level Protocol): This is a template protocol to allow any protocol to be created with ease without the need for repeated network programming.
LLD (Lower Level Database): This is a set of templates for creating high efficiency database systems. This high efficiency can be used to power large websites, which are currently built with database software that is not designed to scale.
For information about more additions to the Lower Level Library, please visit here
3. How does Nexus secure the network and reach consensus? Nexus is unique amongst blockchain technology in that Nexus uses 3 channels to secure the network against attack. Whereas Bitcoin uses only Proof-of-Work to secure the network, Nexus combines a prime number channel, a hashing channel and a Proof-of-Stake channel. Where Bitcoin has a difficulty adjustment interval measured in weeks, Nexus can respond to increased hashrate in the space of 1 block and each channel scales independently of the other two channels. This stabilizes the block times at ~50 seconds and ensures no single channel can monopolize block production. This means that a 51% attack is much more difficult to launch because an attacker would need to control all 3 channels. Every 60 minutes, the Nexus protocol automatically creates a checkpoint. This prevents blocks from being created or modified dated prior to this checkpoint, thus protecting the chain from malicious attempts to introduce an alternate blockchain.
4. What is quantum resistance and how does Nexus implement it? To understand what quantum resistance is and why it is important, you need to understand how quantum computing works and why it’s a threat to blockchain technology. Classical computing uses an array of transistors. These transistors form the heart of your computer (the CPU). Each transistor is capable of being either on or off, and these states are used to represent the numerical values 1 and 0. Binary digits’ (bits) number of states depends on the number of transistors available, according to the formula 2n, where n is the number of transistors. Classical computers can only be in one of these states at any one time, so the speed of your computer is limited to how fast it can change states. Quantum computers utilize quantum bits, “qubits,” which are represented by the quantum state of electrons or photons. These particles are placed into a state called superposition, which allows the qubit to assume a value of 1 or 0 simultaneously. Superposition permits a quantum computer to process a higher number of data possibilities than a classical computer. Qubits can also become entangled. Entanglement makes a qubit dependant on the state of another, enabling quantum computing to calculate complex problems, extremely quickly. One such problem is the Discrete Logarithm Problem which elliptic curve cryptography relies on for security. Quantum computers can use Shor’s algorithm to reverse a key in polynomial time (which is really really really fast). This means that public keys become vulnerable to quantum attack, since quantum computers are capable of being billions of times faster at certain calculations. One way to increase quantum resistance is to require more qubits (and more time) by using larger private keys: Bitcoin Private Key (256 bit) 5Kb8kLf9zgWQnogidDA76MzPL6TsZZY36hWXMssSzNydYXYB9KF Nexus Private Key (571 bit) 6Wuiv513R18o5cRpwNSCfT7xs9tniHHN5Lb3AMs58vkVxsQdL4atHTF Vt5TNT9himnCMmnbjbCPxgxhSTDE5iAzCZ3LhJFm7L9rCFroYoqz Bitcoin addresses are created by hashing the public key, so it is not possible to decrypt the public key from the address; however, once you send funds from that address, the public key is published on the blockchain rendering that address vulnerable to attack. This means that your money has higher chances of being stolen. Nexus eliminates these vulnerabilities through an innovation called signature chains. Signature chains will enable access to an account using a username, password and PIN. When you create a transaction on the network, you claim ownership of your signature chain by revealing the public key of the NextHash (the hash of your public key) and producing a signature from the one time use private key. Your wallet then creates a new private/public keypair, generates a new NextHash, including the corresponding contract. This contract can be a receive address, a debit, a vote, or any other type of rule that is written in the contract code. This keeps the public key obscured until the next transaction, and by divorcing the address from the public key, it is unnecessary to change addresses in order to change public keys. Changing your password or PIN code becomes a case of proving ownership of your signature chain and broadcasting a new transaction with a new NextHash for your new password and/or PIN. This provides the ability to login to your account via the signature chain, which becomes your personal chain within the 3D chain, enabling the network to prove and disprove trust, and improving ease of use without sacrificing security. The next challenge with quantum computers is that Grover’s algorithm reduces the security of one-way hash function by a factor of two. Because of this, Nexus incorporates two new hash functions, Skein and Keccak, which were designed in 2008 as part of a contest to create a new SHA3 standard. Keccak narrowly defeated Skein to win the contest, so to maximize their potential Nexus combines these algorithms. Skein and Keccak utilize permutation to rotate and mix the information in the hash. To maintain a respective 256/512 bit quantum resistance, Nexus uses up to 1024 bits in its proof-of-work, and 512 bits for transactions.
5. What is the Unified Time protocol? All blockchains use time-stamping mechanisms, so it is important that all nodes operate using the same clock. Bitcoin allows for up to 2 hours’ discrepancy between nodes, which provides a window of opportunity for the blockchain to be manipulated by time-related attack vectors. Nexus eliminates this vulnerability by implementing a time synchronization protocol termed Unified Time. Unified Time also enhances transaction processing and will form an integral part of the 3D chain scaling solution. The Unified Time protocol facilitates a peer-to-peer timing system that keeps all clocks on the network synchronized to within a second. This is seeded by selected nodes with timestamps derived from the UNIX standard; that is, the number of seconds since January 1st, 1970 00:00 UTC. Every minute, the seed nodes report their current time, and a moving average is used to calculate the base time. Any node which sends back a timestamp outside a given tolerance is rejected. It is important to note that the Nexus network is fully synchronized even if an individual wallet displays something different from the local time.
6. Why does Nexus need its own satellite network? One of the key limitations of a purely electronic monetary system is that it requires a connection to the rest of the network to verify transactions. Existing network infrastructure only services a fraction of the world’s population. Nexus, in conjunction with Vector Space Systems, is designing communication satellites, or cubesats, to be launched into Low Earth Orbit in 2019. Primarily, the cubesat mesh network will exist to give Nexus worldwide coverage, but Nexus will also utilize its orbital and ground mesh networks to provide free and uncensored internet access to the world.
The Nexus Currency (NXS):
1. How can I get Nexus? There are two ways you can obtain Nexus. You can either buy Nexus from an exchange, or you can run a miner and be rewarded for finding a block. If you wish to mine Nexus, please follow our guide found below. Currently, Nexus is available on the following exchanges:
Bittrex (99% of trade volume)
Upbit (South Korea)
Nexus is actively reaching out to other exchanges to continue to be listed on cutting edge new financial technologies..
2. How much does a transaction cost? Under Nexus, the fee structure for making a transaction depends on the size of your transaction. A default fee of 0.01 NXS will cover most transactions, and users have the option to pay higher fees to ensure their transactions are processed quickly. When the 3D chain is complete and the initial 10-year distribution period finishes, Nexus will absorb these fees through inflation, enabling free transactions.
3. How fast does Nexus transfer? Nexus reaches consensus approximately every ~ 50 seconds. This is an average time, and will in some circumstances be faster or slower. NXS currency which you receive is available for use after just 6 confirmations. A confirmation is proof from a node that the transaction has been included in a block. The number of confirmations in this transaction is the number that states how many blocks it has been since the transaction is included. The more confirmations a transaction has, the more secure its placement in the blockchain is.
4. Did Nexus hold an ICO? How is Nexus funded? The Nexus Embassy, a 501(C)(3) not-for-profit corporation, develops and maintains the Nexus blockchain software. When Nexus began under the name Coinshield, the early blocks were mined using the Developer and Exchange (Ambassador) addresses, which provides funding for the Nexus Embassy. The Developer Fund fuels ongoing development and is sourced by a 1.5% commission per block mined, which will slowly increase to 2.5% after 10 years. This brings all the benefits of development funding without the associated risks. The Ambassador (renamed from Exchange) keys are funded by a 20% commission per block reward. These keys are mainly used to pay for marketing, and producing and launching the Nexus satellites. When Nexus introduces developer and ambassador contracts, they will be approved, denied, or removed by six voting groups namely: currency, developer, ambassador, prime, hash, and trust. Please Note: The Nexus Embassy reserves the sole right to trade, sell and or use these funds as required; however, Nexus will endeavor to minimize the impact that the use of these funds has upon the NXS market value.
5. Is there a cap on the number of NXS in existence? After an initial 10-year distribution period ending on September 23rd, 2024, there will be a total of 78 million NXS. Over this period, the reward gradient for mining Nexus follows a decaying logarithmic curve instead of the reward halving inherent in Bitcoin. This avoids creating a situation where older mining equipment is suddenly unprofitable, encouraging miners to continue upgrading their equipment over time and at the same time reducing major market shocks on block halving events. When the distribution period ends, the currency supply will inflate annually by a maximum of 3% via staking and by 1% via the prime and hashing channels. This inflation is completely unlike traditional inflation, which degrades the value of existing coins. Instead, the cost of providing security to the blockchain is paid by inflation, eliminating transaction fees. Colin Cantrell - Nexus Inflation Explained
6. What is the difference between the LLD wallet and the Oracle wallet? Due to the scales of efficiency needed by blockchain, Nexus has developed a custom-built database called the Lower Level Database. Since the development of the LLD wallet 0.2.3.1, which is a precursor to the Tritium updates, you should begin using the LLD wallet to take advantage of the faster load times and improved efficiency. The Oracle wallet is a legacy wallet which is no longer maintained or updated. It utilized the Berkeley DB, which is not designed to meet the needs of a blockchain. Eventually, users will need to migrate to the LLD wallet. Fortunately, the wallet.dat is interchangeable between wallets, so there is no risk of losing access to your NXS.
7. How do I change from Oracle to the LLD wallet? Step 1 - Backup your wallet.dat file. You can do this from within the Oracle wallet Menu, Backup Wallet. Step 2 - Uninstall the Oracle wallet. Close the wallet and navigate to the wallet data directory. On Windows, this is the Nexus folder located at %APPDATA%\Nexus. On macOS, this is the Nexus folder located at ~/Library/Application Support/Nexus. Move all of the contents to a temporary folder as a backup. Step 3 - Copy your backup of wallet.dat into the Nexus folder located as per Step 2. Step 4 - Install the Nexus LLD wallet. Please follow the steps as outlined in the next section. Once your wallet is fully synced, your new wallet will have access to all your addresses.
8. How do I install the Nexus Wallet? You can install your Nexus wallet by following these steps: Step 1 - Download your wallet from www.nexusearth.com. Click the Downloads menu at the top and select the appropriate wallet for your operating system. Step 2 - Unzip the wallet program to a folder. Before running the wallet program, please consider space limitations and load times. On the Windows OS, the wallet saves all data to the %APPDATA%\Nexus folder, including the blockchain, which is currently ~3GB. On macOS, data is saved to the ~/Library/Application Support/Nexus folder. You can create a symbolic link, which will allow you to install this information in another location. Using Windows, follow these steps:
Step 3 (optional) - Before running the wallet, we recommend downloading the blockchain database manually. Nexus Earth maintains a copy of the blockchain data which can save hours from the wallet synchronization process. Please go to www.nexusearth.com and click the Downloads menu. Step 4 (optional) - Extract the database file. This is commonly found in the .zip or .rar format, so you may need a program like 7zip to extract the contents. Please extract it to the relevant directory, as outlined in step 2. Step 5 - You can now start your wallet. After it loads, it should be able to complete synchronization in a short time. This may still take a couple of hours. Once it has completed synchronizing, a green check mark icon will appear in the lower right corner of the wallet. Step 6 - Encrypt your wallet. This can be done within the wallet, under the Settings menu. Encrypting your wallet will lock it, requiring a password in order to send transactions. Step 7 - Backup your wallet.dat file. This can be done from the File menu inside the wallet. This file contains the keys to the addresses in your wallet. You may wish to keep a secure copy of your password somewhere, too, in case you forget it or someone else (your spouse, for example) ever needs it. You should back up your wallet.dat file again any time you create – or a Genesis transaction creates (see “staking” below) – a new address.
Types of Mining or Minting:
1.Can I mine Nexus? Yes, there are 2 channels that you can use to mine Nexus, and 1 channel of minting: Prime Mining Channel This mining channel looks for a special prime cluster of a set length. This type of calculation is resistant to ASIC mining, allowing for greater decentralization. This is most often performed using the CPU. Hashing Channel This channel utilizes the more traditional method of hashing. This process adds a random nonce, hashes the data, and compares the resultant hash against a predetermined format set by the difficulty. This is most often performed using a GPU. Proof of Stake (nPoS) Staking is a form of mining NXS. With this process, you can receive NXS rewards from the network for continuously operating your node (wallet). It is recommended that you only stake with a minimum balance of 1000 NXS. It’s not impossible to stake with less, but it becomes harder to maintain trust. Losing trust resets the interest rate back to 0.5% per annum.
2. How do I mine Nexus? As outlined above, there are two types of mining and 1 proof of stake. Each type of mining uses a different component of your computer to find blocks, the CPU or the GPU. Nexus supports CPU and GPU mining on Windows only. There are also third-party macOS builds available. Please follow the instructions below for the relevant type of miner.
Prime Mining: Almost every CPU is capable of mining blocks on this channel. The most effective method of mining is to join a mining pool and receive a share of the rewards based on the contribution you make. To create your own mining facility, you need the CPU mining software, and a NXS address. This address cannot be on an exchange. You create an address when you install your Nexus wallet. You can find the related steps under How Do I Install the Nexus Wallet? Please download the relevant miner from http://nexusearth.com/mining.html. Please note that there are two different miner builds available: the prime solo miner and the prime pool miner. This guide will walk you through installing the pool miner only. Step 1 - Extract the archive file to a folder. Step 2 - Open the miner.conf file. You can use the default host and port, but these may be changed to a pool of your choice. You will need to change the value of nxs_address to the address found in your wallet. Sieve_threads is the number of CPU threads you want to use to find primes. Ptest_threads is the number of CPU threads you want to test the primes found by the sieve. As a general rule, the number of threads used for the sieve should be 75% of the threads used for testing. It is also recommended to add the following line to the options found in the .conf file: "experimental" : "true" This option enables the miner to use an improved sieve algorithm which will enable your miner to find primes at a faster rate. Step 3 - Run the nexus_cpuminer.exe file. For a description of the information shown in this application, please read this guide.
Hashing: The GPU is a dedicated processing unit housed on-board your graphics card. The GPU is able to perform certain tasks extremely well, unlike your CPU, which is designed for parallel processing. Nexus supports both AMD and Nvidia GPU mining, and works best on the newer models. Officially, Nexus does not support GPU pool mining, but there are 3rd party miners with this capability. The latest software for the Nvidia miner can be found here. The latest software for the AMD miner can be found here. The AMD miner is a third party miner. Information and advice about using the AMD miner can be found on our Slack channel. This guide will walk you through the Nvidia miner. Step 1 - Close your wallet. Navigate to %appdata%\Nexus (~/Library/Application Support/Nexus on macOS) and open the nexus.conf file. Depending on your wallet, you may or may not have this file. If not, please create a new txt file and save it as nexus.conf You will need to add the following lines before restarting your wallet:
Step 2 - Extract the files into a new folder. Step 3 - Run the nexus.bat file. This will run the miner and deposit any rewards for mining a block into the account on your wallet. For more information on either Prime Mining or Hashing, please join our Slack and visit the #mining channel. Additional information can be found here.
3. How do I stake Nexus? Once you have your wallet installed, fully synchronized and encrypted, you can begin staking by:
Choosing Unlock Wallet from the Settings menu
Check the box that says "Unlock for Mint Only", then enter your password.
When the question mark at the lower right of the wallet window changes to a clock icon, you are now staking.
After you begin staking, you will receive a Genesis transaction as your first staking reward. This establishes a Trust key in your wallet and stakes your wallet balance on that key. From that point, you will periodically receive additional Trust transactions as further staking rewards for as long as your Trust key remains active. IMPORTANT - After you receive a Genesis transaction, backup your wallet.dat file immediately. You can select the Backup Wallet option from the File menu, or manually copy the file directly. If you do not do this, then your Nexus balance will be staked on the Trust key that you do not have backed up, and you risk loss if you were to suffer a hard drive failure or other similar problem. In the future, signature chains will make this precaution unnecessary.
4. I am staking with my Nexus balance. What are interest rate, trust weight, block weight, and stake weight? These items affect the size and frequency of staking rewards after you receive your initial Genesis transaction. When staking is active, the wallet displays a clock icon in the bottom right corner. If you hover your mouse pointer over the icon, a tooltip-style display will open up, showing their current values. Please remember to backup your wallet.dat file (see question 3 above) after you receive a Genesis transaction. Interest Rate - The minting rate at which you will receive staking rewards, displayed as an annual percentage of your NXS balance. It starts at 0.5%, increasing to 3% after 12 months. The rate increase is not linear but slows over time. It takes several weeks to reach 1% and around 3 months to reach 2%. With this rate, you can calculate the average amount of NXS you can expect to receive each day for staking. Trust Weight - An indication of how much the network trusts your node. It starts at 5% and increases much more quickly than the minting (interest) rate, reaching 100% after one month. Your level of trust increases your stake weight (below), thus increasing your chances of receiving staking transactions. It becomes easier to maintain trust as this value increases. Block Weight - Upon receipt of a Genesis transaction, this value will begin increasing slowly, reaching 100% after 24 hours. Every time you receive a staking transaction, the block weight resets. If your block weight reaches 100%, then your Trust key expires and everything resets (0.5% interest rate, 5% trust weight, waiting for a new Genesis transaction). This 24-hour requirement will be replaced by a gradual decay in the Tritium release. As long as you receive a transaction before it decays completely, you will hold onto your key. This change addresses the potential of losing your trust key after months of staking simply because of one unlucky day receiving trust transactions. Stake Weight - The higher your stake weight, the greater your chance of receiving a transaction. The exact value is a derived by a formula using your trust weight and block weight, which roughly equals the average of the two. Thus, each time you receive a transaction, your stake weight will reset to approximately half of your current level of trust.
Maxcoin Fundamentals -- Concept of Difficulty, Difficulty Retargeting & The Kimoto Gravity Well
Dear friends. Below a full article that explains what the Kimoto Gravity Well is and the mathematics involved. TL;DR -- "Difficulty is a measure of how difficult it is to find a new block compared to the easiest it can ever be. Originally its calculated by averaging the time it took to mine blocks during a 2 week period. Due to the influx of ASIC miners and "pool-hopping", mining difficulty can fluctuate dangerously killing or seriously harming the coin (It happened to Terracoin, Frathercoin, Megacoin and Anoncoin). KWG means that difficulty is adjusted after every single block that is mined on the network. It also determines the number of blocks which contribute to the evaluation of the new difficulty. It gives fewer blocks for high hashrate changes and is therefore more adaptive." What Is a Mining Difficulty Readjustment Algorithm, Anyway? To understand what the Gravity Well algorithm is and what it does, you first need to understand what a "mining difficulty readjustment algorithm" is and why is it important for all current cryptocurrencies based off of the original Bitcoin source code. First, let's pull a few important definitions from the Bitcoin wiki: Difficulty Difficulty is a measure of how difficult it is to find a new block compared to the easiest it can ever be. Difficulty Readjustment (for Bitcoin) The difficulty is adjusted every 2016 blocks based on the time it took to find the previous 2016 blocks. At the desired rate of one block each 10 minutes, 2016 blocks would take exactly two weeks to find. If the previous 2016 blocks took more than two weeks to find, the difficulty is reduced. If they took less than two weeks, the difficulty is increased. The change in difficulty is in proportion to the amount of time over or under two weeks the previous 2016 blocks took to find. So basically, the "difficulty" of a coin determines how hard it is for miners to find and mint blocks of that coin. The more miners there are mining a coin, the faster blocks will be found and at the end of this difficulty readjustment period (approximately every two weeks for Bitcoin), the difficulty will change accordingly so that the number of coins minted will follow the intended distribution curve. This has worked well for Bitcoin (so far) because of it's extremely slow adoption rate in the early days and now because of the sheer number of miners on the network. However, this method of difficulty readjustment is flawed for new altcoins entering the market today for a number of reasons which I will discuss below. The History of the Gravity Well Mining Difficulty Readjustment Algorithm When some alternative crypto's like Megacoin were first launched, they used a more traditional difficulty readjustment algorithm based off of Bitcoin's original proposal. In the case of Megacoin, the difficulty was set to retarget every 22.5 minutes based on the same algorithm as Bitcoin, however, the developers later modified the source code to implement Kimoto Gravity retargetting because, by this time, some SHA-256 coins had already felt the pain of difficulty readjustment problems due to the influx of ASIC miners and an activity known as "pool-hopping". If you are familiar with cryptocurrency mining at all, you may already know that in most cases, solo mining is usually impossible without extremely powerful hardware due to the large number of people now aware of cryptocurrencies and willing to mine for them. Most miners mine through pools, which provide proportional payouts of coins based on the amount of hashing power you provide to the network. This mitigates some of the risk of mining in that you receive a steady stream of coins based on your network hashing rate, so even small-time miners can still earn their share of the pie. However, as pool mining became more popular and more altcoins arrived on the market, services known as "multipools" began to appear. These were special pools that allowed miners to automatically switch to the "most profitable" coin to mine based on the current exchange rates. However, these new multipools introduced some new problems to the cryptocurrency landscape, one of those being major difficulty readjustment woes. As some altcoins began to rise in price several months after its inception, it started to become a target for these multipools. What happens when this occurs is that suddenly the You-Name-It-Coin network gets barraged by an influx of new (and very powerful) miners. This causes the block confirmation time to plummet and subsequently causes the difficulty to skyrocket at the next difficulty readjustment. When this occurs, the mining profitability also drops due to the higher difficulty which then in turn causes all of the multipool miners to leave the network in search of the next most profitable coin. What remains is an extremely high difficulty and only the "core" group of a certain altocin's miners left to deal with the aftermath. In extreme cases, the difficulty may be so high in proportion to the number of miners left that the entire network grinds to a halt. This has happened in the past to Terracoin and Feathercoin, among others. The only solution if this occurs is to hard fork the coin in an attempt to readjust the difficulty (or change the difficulty readjustment algorithm) or simply grind out the mining at an extremely slow pace (during which time the coin is basically unusable) until enough blocks are found to make it to the next difficulty readjustment. The more blocks required until the next difficulty readjustment, the longer this period of unusability will be, and in some cases could mean the death of the coin completely unless drastic measures are taken. When this happened to Megacoin for example, Kimoto decided to come up with a better way to perform difficulty readjustment, and the result is the Kimoto Gravity Well (which is now also used as the difficulty readjustment algorithm for Megacoin, Maxcoin, Anoncoin among others). Gravity Well: Explained Now that you know how the Gravity Well came to be, let's take a look at what exactly it does and how it works. At the most basic level, Kimoto has changed how difficulty readjustment works so that the difficulty is adjusted after every single block that is mined on the network. The formula for the Kimoto Gravity Well (KGW) is the following KGW = 1 + (0.7084 * (PastBlocksMass/144)-1.228) The goal is to have a more adaptive way of adjusting the difficulty instead of just averaging the last 2016 blocks like bitcoin. This is needed because of multipools which might switch the coin they are mining, and a sudden change in hashrate can occur (both increasing or decreasing). Especially when a multipool switches away you get stuck too long with a too high difficulty. The algo loops backwards through the blocks, starting from the current one. The PastBlocksMass is just the number of blocks, so it starts at one and increases in each loop. In each loop an adjustment factor is computed, which is the target block time divided by the actual block time, in a cumulative fashion, so at loop 10 we would have the 25 minutes target time divided by the time it actually took to compute the last ten blocks. When the hashrate increases, we get shorter times and an adjustment factor greater than one and vice versa. The loop ends whenever the average adjustment factor is larger than the kimoto-value, or smaller than 1/kimoto-value. Summary: the Kimoto gravity well algo has a fancy name and determines the number of blocks which contribute to the evaluation of the new difficulty. It gives fewer blocks for high hashrate changes and is therefore more adaptive. More details on the math's involved and a practical example can be found here :: https://bitcoin.stackexchange.com/questions/21730/how-does-the-kimoto-gravity-well-regulate-difficulty NOTE:: The two original post that inspired this article were focused solely on Megacoin. I made some small modifications to them so the post can be applied to any cryptocurrency on the market. Below the references. Original Post 1 (History & Background) --- https://forum.megacoin.co.nz/index.php?topic=893.0 Oroginal Post 2 (Mathematics & practical example) -- https://bitcoin.stackexchange.com/questions/21730/how-does-the-kimoto-gravity-well-regulate-difficulty Original Release note of the Kimoto Gravity Well -- https://bitcointalk.org/index.php?topic=240861.msg3040291#msg3040291 We have to know very well the fundamentals of what we love. Have a great day
Nonetheless, the ASIC miners have built up an incredible infrastructure, providing unmatched security.
It makes sense for Bitcoin forks to attempt to benefit from the security provided by the existing ASIC infrastructure.
If you disagree with these, there's probably not too much point arguing about the rest.
Meeting the design goals
To meet the design goals, producing blocks with an sha256(sha256(...)) PoW needs to remain possible. Similar reasoning has led people to propose a reduction in difficulty following the fork. I presume that if (say) a fork had signed up 20% of the hash power, then it would set its new difficulty to (around) 20% of the old difficulty. This seems risky though, as the reduction in difficulty would increase the risk of 51% attacks. (While the needed hash power for a 51% attack is the same regardless of the difficulty, with very low difficulty, blocks will arrive much faster, making it much harder to mitigate such attacks.) Additionally, in the event of a "mining heart attack" (a sudden drop in ASIC hash power), it is unlikely that a hard fork with reduced difficulty could be delivered fast enough to prevent a collapse in value. In any case, following a fork, there is likely to be much higher variance in transaction times, as miners move between chains, and the difficulty adjustment algorithm struggles to keep up. People have proposed more responsive difficulty adjustment algorithms, but these produce problems in the longer term, including making certain attacks easier. This suggests that an alternative approach is needed, namely one in which most blocks are produced using the standard PoW, but in an emergency, an alternative CPU mined PoW could take over. The idea of my proposal is to allow the commencement of mining of CPU mined blocks only after a certain time has elapsed, where the passing of time is measured by the production of timing blocks. In normal times, this reduces the variance of the time between blocks, thus reducing the variance of confirmation times, and making Bitcoin more reliable as a means of payment. In crisis times, such as after a fork or "mining heart attack", this enables CPU miners to produce blocks even when ASIC miners are not.
I propose the introduction of two new block types. For clarity, I will call the existing blocks "type A blocks" (A for ASIC). "Type C blocks" (C for CPU) fulfil a similar function to type A blocks, but will be produced with a different algorithm. "Type T blocks" will be small blocks used for timing. Both type C and type T blocks will be CPU-mineable. I will now spell out the details of these new block types.
Type A blocks are virtually identical to their current form.
Type A blocks may follow either type A or type C blocks in the chain. They may not follow type T blocks.
Type C and type T blocks will use a memory-hard PoW, requiring block chain data, such as the UTXO set. (Wild Keccak is one example.)
The difficulty of producing a type C block is always set to 20 times the difficulty of producing a type T block.
Type T blocks may follow either type A, C or T blocks, but no more than 60 type T blocks may be chained in a row.
Type T blocks contain a single coinbase transaction, and no other transactions.
Allowable coinbase transactions for type T blocks take as input the current block reward divided by 80.
The outputs of coinbase transactions from type T blocks are not spendable until followed by a type C block.
Type C blocks may only follow uninterrupted chains of 60 type T blocks.
Type C blocks contain a single coinbase transaction, and arbitrarily many other transactions (subject to the block size limit).
Allowable coinbase transactions for type C blocks take as input the current block reward divided by four, plus the sum of transaction fees from any included transactions.
Note that by construction, the total coinbase outputs of a run of 60 type T blocks and one type C block is 60/80+1/4 = 1 times the block reward, so there is no change to the total number of BTC being produced.
In counting blocks for difficulty adjustment, type T blocks are ignored. Thus the difficulty is adjusted after 2016 type A or C blocks since the last adjustment.
The new difficulty for type A blocks is adjusted as it is currently. ( new_difficulty = max( old_difficulty / 4, min( old_difficulty * 4, old_difficulty * ( two_weeks / time_since_last_adjustment ) ) ) )
The difficulty of a type T block (and hence a type C block) is set according to the formula new_difficulty = max( old_difficulty / 4, min( old_difficulty * 4, old_difficulty * ( two_weeks / time_since_last_adjustment ) * ( num_type_C_blocks / 100 ) ^ ( 1 / 2 ) ), where num_type_C_blocks is the number of type C blocks out of the last 2016 type A or type C. The implicit target here is 100 type C blocks per 2016, meaning a drop in ASIC miner profits of around 5%, which is hopefully not enough to overly annoy them. The slower adjustment to the number of type C blocks reflects the greater sampling variation in num_type_C_blocks and the fact that CPU power changes more slowly than ASIC power.
Note, that with roughly 5% of all profits going to CPU miners in normal times, type T block times should be around 30 seconds, and type C block times should be a bit less than 10 minutes. This is in line with my prior proposal, linked above.
Multiple low difficult "T" blocks are not equivalent to one higher difficulty block, because the variance of the time to produce N difficulty K blocks is lower than the variance of the time to produce one difficulty NK block. (Erlang vs exponential distributions.) The low variance of the time to produce 60 T blocks is what helps ensure that mining C blocks only starts after around 30 minutes, meaning that it only happens when ASIC miners have failed to produce A blocks for some reason.
The initial difficulty of producing type T and C blocks following the fork should be set so that in a hypothetical world in which (a) only one person CPU mined and (b) the price post-fork was equal to the price pre-fork, that one miner would exactly break even in expectation by CPU mining type T and C blocks on Amazon EC2, assuming that they obtained 5% of all block rewards. This is likely to be a substantial under-estimate of the true cost of CPU mining, due to people having access to zero (or at least lower) marginal cost CPU power, but an under-estimate is desirable to provide resilience post-fork.
substantially reduces the variance of block times, increasing Bitcoin's use as a means of payment, and hence (probably) increasing its price,
encourages more people to run full nodes, due to the returns to CPU mining, increasing decentralization,
provides protection from sudden falls in ASIC hash rate, reducing tail risk of holding Bitcoin, and thus again (probably) increasing its price,
helps provide hash power post-fork, without driving away the existing miners and their hardware,
How secure is the Vertcoin network from new-entrant bad actors? Let's do the math.
The core foundation of a cryptocurrency is the network's security yet we don't have a common methodology to compare currencies. Thus I propose one method: the capital to market cap ratio. To start let us calculate Bitcoin's C2MC ratio. Since BTC is an asic coin we need to estimate the cost to design and manufacturer enough asics to 51% the network. The best method here is to look at the best value non-scam asic. The logic being if a for-profit company can bootstrap production at their public asking price then so could a malicious attacker. It does not matter for our calculation that the asic producers are abusing their customer's preorders and mining for their personal benefit, all that matters is they could produce the hardware. After all an attacker would also mine before they attack. For our calculation let us use the KNC Neptune which costs $5,995.00 and hashes at 3TH/s. Then take the Bitcoin nethash: 83,161,066.76 Combined we get the formula: ((83,161,066.76 / 3000) * 6000 ) / 7,395,527,268 We thus find Bitcoin has a whole 3 cents of hardware defending every US dollar of BTC. Now lets do it again for Vertcoin. To make things harder for Vertcoin we will only count the cost of the GPUs. We are thus ignoring the motherboard, power supply, and even CPU. We'll use the 280x which can be had right now for $300 and hashes 350KH/s. We get: ((7629439.6 / 350) * 300) / 4900000 Or: 130 cents per US dollar. So there, four months on we can say with confidence that asci-resistance leads to a stronger network. In other news, we've just redesigned the vertmarket so you should try selling something with your super-secure vertcoins.
praxeology_guy on Apr 06 2017: Praxeological Analysis of PoW Policy Changes, Re: ASICBOOST On the $100M profit claim First I'd like to confirm Gregory Maxwell's assertion that covert use of ASICBOOST could result in $100 million USD per year profits. profit = reward - costs. Total reward is fixed at (12.5 block reward + 3 fees) * 6 per hour * 24 per day * 365.25 days per year * $1150 USD per bitcoin ~= 1,000,000,000 or 1Billion USD per year. Miners normally compete against each other until there is only a very small, practically zero profit. Lets say that 50% of the mining hashpower are operating at profit = 0, and the other 50% are operating with > 0 profit due to the 20% increased efficiency of the covert optimization. How much profit is earned by the covert optimization operators? Half of the operators would have a cost of ~$500,000,000. Half would have a cost of ~0.8 * ~$500,000,000 = $400,000,000, leaving profit = $100,000,000. But does this make sense? What if 95% of hashing power miners used the more efficient process, and 5% didn't. Would this still result in using a similar formula, with $950M * 0.2 = $190M profits? I believe it would. Essentially, the the 95% of the miners are colluding to not increase their capital & hashing power enough to erase their profits. Hence an entity or multiple entities may be colluding to decrease the security of ordering (double spend prevention) of Bitcoin transactions. Hence a claim that as much as $100M per year could be gained by using the ASICBOOST Optimization is a valid claim. Miners and Money Owners have Different Motivations Money owners and miners have different motivations. Miners are currently concerned about the 1-2 year ROI of their capital. In the long term, as ASIC technology for Bitcoin matures, miners will have a longer term ROI concern. For money owners: Short term money owners are looking to transfer their money in the most efficient manner. Long term money owners are looking for a money they expect will become more valuable in the future due to its ability to handle more users with a higher money transfer efficiency than other competing currencies. $100M per year is a pretty good reason for a miner to want to delay Bitcoin policy improvements that primarily benefit the money owner, yet have only marginal utilitarian benefits for the miner, but evaporate their ability to have such an income. Money Owner Perspective Analysis Money owners strive to have a have a PoW algorithm that does not give a subset of the world an advantage by government interference. Such interference threatens bitcoin's decentralized nature, and hence the users' ability to have a money who's policies are dictated by themselves rather than a centralized entity. Changing the PoW algorithm in a way that makes existing ASIC miner capital worthless... is undesirable because it creates new opportunities for first to market optimizations to centralize mining. It also makes bitcoin's security weaker because the uncertainty of the PoW algorithm de-incentivizes the effort to invest in mining capital, which creates a larger threat for a future malicious threat to perform the 51% attack. For the duration that a new PoW algorithm is not fully optimized with the current latest ASIC manufacturing techniques, and there remains undiscovered optimizations, the double spend security is weaker. Gregory Maxwell's proposal does not make existing mining capital worthless... it only removes the advantage of using the patent encumbered optimization. Existing capital, particularly the S9, remains being the most efficient capital available for mining Bitcoin. Activating such a proposal will set a precedent for mining equipment manufacturers and operators to expect that certain classes of patented optimizations will only have a limited ROI timeframe before they are made unavailable due to users changing the PoW policy. Miners may still pursue optimizations that are not encumbered by patents without concern that their optimization advantage will be disabled just for the purpose of benefiting some other arbitrary set of miners. Given that a money owner would not want Bitcoin's ability to transfer money efficently be encumbered in the long term for the sake of miner's profits... in the case where even a non-patent encumbered optimization conflicts with an upgrade to Bitcoin for the money owners... then its a question of how much the change increases bitcoin's money transfer efficiency, and how generous the money owners are towards allowing the optimization-capital-invested miner. I use the word "generous" because the policy users choose for the money supply is entirely voluntary. No contract was made to continue using the same exact PoW algorithm. The guiding reason to keep or change the PoW algorithm to increase the money transfer efficiency of the money. Double spends, and the properties of PoW that secure against double spends, are a large factor in determining such efficiency. Impact of Changing the PoW Policy vs Covert ASICBOOST Miners currently using this optimization will lose 20% profits. Old and less efficient mining equipment using the optimization might no longer be profitable in mining Bitcoins. Miners using this optimization but using more costly energy may also no longer be profitable in mining Bitcoins. Difficulty will decrease, and miners not using the optimization will have greater profits and grow in numbers. The difficulty decrease may make older equipment and higher cost energy locations become profitable once again. Long term impact on miners: As discussed in the money owner's perspective, mainly this will reduce the motivation to perform the R&D;, manufacturing, and purchase of patent encumbered optimizations. Realizing that the users may also at a future date disable an optimization in order to in some way make an improvement to Bitcoin will also put a damper on advancing the development of more efficient mining hardware, which is once again desirable to users as it makes the transaction ordering more future proof. This may also be a lesson to hardware manufacturers that they should not make their chips extremely special purpose... that having some flexibility in the algorithms the device can run may help make their hardware still have other uses in the case that users decide to change the PoW policy. For example, it may be wise for the manufacturer to support an operating mode where only the nonce bit are permutated and no SHA256 operations are skipped due other assumptions about the block header data. Praxeology Guy's Recommendation Make it a policy that patent encumbered PoW optimizations are countered/prevented if possible while minimizing the disruption on the utility and availability of optimized mining capital equipment. Owners of Bitcoin should support and activate the proposed PoW policy change by Gregory Maxwell as soon as possible to counter the ASICBOOST patent encumbrance... unless the creators of the ASICBOOST patent transfer their IP to the public domain. SegWit should not be delayed for the purpose of being generous to those who first implement ASICBOOST in their mining operations. Future ASICs and mining equipment should be made with the option to run without optimizations that make assumptions about policy that is subject to change in a future soft fork. 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Some ideas and solution to increase the dogecoin's security without changing POW algorithm. Dogecoin gets stronger the more it circulates.
With the recent WafflePool scare, many shibes have expressed interest in swapping our scrypt POW with something less asic and gpu friendly. This is an extremely risky move with almost zero room for error, as if any part of transitioning to, or architecture of, the new algorithm is implemented incorrectly, the coin may very well kick the bit bucket. Alternatives should be explored before we consider such drastic actions as unavoidable. Thus I shall propose a few draft ideas, a Frankenstein of a solution that, while it won't solve the asic problem, and is currently far from perfect, may increase the security of dogecoin in general, from certain 51% attacks and in the long term survival of the coin. I propose the following formula for calculating difficulty: actual_difficulty = ( 10 * scrypt_difficulty ) - ( 9 * scrypt_difficulty * effective_value / past_effective_value ) for effective_value < past_effective_value and: function clamp( _inputValue, _maxValue ) actual_difficulty = scrypt_difficulty - scrypt_difficulty * clamp( dig_in_rate * ( In( e1 * ( effective_value / past_effective_value ) ) - 1 ), dig_in_max ) for effective_value > past_effective_value. The dig_in_rate will determine how much more difficulty is discounted by providing a higher effective_value than past_effective_value, while a dig_in_max is the maximum discount to difficulty allowed. If we set a dig_in_rate of 0.04, dig_in_max of 0.20, and calculate x times effective_value to past_effective_value:
26% average effective_value per block in the last 4 hours (240 blocks) (for flexibility)
40% average effective_value per block in the last 24 hours (1440 blocks) (for stability)
34% average effective_value per block in the last 7 days (10080 blocks) (stability and to prevent short term manipulation)
effective_value = actual_transaction_value * input_maturity input_maturity = number_of_confirmations / 10080 ( or 7 days worth of blocks ) 0.1% mandatory transaction fee (already mandatory?) All transaction fees are temporary removed by the protocol (rather than given to the block solver). On the next set of 100,000 blocks, (necromancy!) all removed fees are returned in the form of block rewards, distributed equally across the entire set of 100,000 blocks. Nodes will treat any block pass 30 blocks (where any reasonable natural fork should have resolved long ago) (bitcoin's longest non-hard fork is 4) as locked, and if encountered a broadcasted chain that have forked from 31 confirmations onwards, or is both a fork and longer than 30 blocks, would proceed to flag to the network of a possible fraudulent chain, broadcasting both chains to the network for verification. Each node that received the flag will then check the public ledger of all the nodes it is connected to, before flagging the fork with the highest agree rate. When a majority of the nodes are flagging one fork, they would have agreed on that fork, and the forking is resolved. Proof-of-Stake (like) via Transactions With a proof of stake (like, because actual proof-of-stake involves generating new blocks based on amount of currency held * currency age, which this solution does not) based around transactions, dogecoin can truly become a spending currency, one where the more the currency is circulated, the stronger it becomes. It works by setting the difficulty for each block prohibitively high, which can be lowered by including a reasonable volume of transactions within said block, an attacker planning on a reject all transactions attack will have to match both the average amount of transactions (about 10,567,129 DOGE per block on bitinfocharts.com) and control more than 50% of the network. An attacker that cannot match the transaction volume of the dogecoin network will have no choice but to process most of the transactions. Transaction Fee Incentive Carried Over As Reward Blocks Rather than receiving transaction fees from processing transactions, fees are temporary removed from the system to be equally distributed amongst the next set of 100,000 blocks equally as block rewards (rewards should re-target about every 69 and a half days), at a rate of 0.1% (1 DOGE for every 1000, you won't miss this) each block mined may generate 20,567 DOGE! That's over twice the minimum block reward. At the peak of transaction volume in late January, early February, you may get up to 10 times the fee, putting you at around 115671 DOGE (About the value you'll get on halving). This will keep the miners mining without unnecessary inflation (the 10,000 DOGE is necessary for replacing lost wallets and DOGE), as well as self regulating the currency against the economy (block rewards increase with an active dogeconomy, increasing the potential profits, which increases the miners, which increases the hash rate and security of the coin). Locking in Blocks after 90 Confirmations 51% double spend attacks can be prevented by simply verifying the conflicted forks against many random nodes, each node that is prompted to verify this way will verify against its connected nodes also, the fork that is spread throughout the majority of the network should be the fork being actively worked on by the network, this would be the accepted fork, while the recently broadcasted fork should be fairly isolated to a few nodes as it didn't have the chance to saturate the network without alerting them to the conflict, this fork will be orphaned and made invalid. Most of this are pretty rough draft ideas, and this is probably the extend of my knowledge in this subject. I do hope someone more knowledgeable can find something useful from this, maybe rip out the good and workable parts and improve upon them. If nothing else insights on the feasibility of these ideas can be informative.
You handle risk and pressure well, and you don't let your emotions guide your decision-making. Professional Poker and TCG players often develop this skillset.
You have experience working with stocks, bonds, derivatives, foreign exchange, or other financial instruments. If you have a strong mathematical background, that would also likely fulfill this.
You can invest significant capital into trading while remaining financially secure if it all suddenly vanishes.
You are capable of constantly monitoring a situation, waking up in the middle of the night if an alarm goes off, etc. It requires serious dedication.
You are good at keeping up with news, understanding market psychology, and "feeling" shifts in attitude and perception among other market participants.
Of those, I'd be most cautious if you don't meet no. 3. Going bust is a real possibility--day-trading a volatile commodity is inherently extremely high-risk. Nos. 2 and 4 are the easiest to learn or force through routine. No. 1 requires a person who approaches things in an emotionally detached manner. No. 5 is something that comes with investing enough time.
Second question: I'm answering this after that big block of text because this answer will come off like a get-rich-quick scheme. Yes, you can hop into it very quickly, and you can start making very high profits very quickly. I put in a small initial investment to test the waters, and made 10% on it in a few days. If you have the right skillset, composure, and resources, yes. It is a potentially very lucrative and exciting stay-at-home job. It is not for everyone, though.
Regardless, that's all a little irrelevant. We're not playing the house, and we're not flipping coins. We're playing other investors, and we're making actual decisions. You keep saying things like "98% lose money" and "Go onto any FOREX forum, and you will see from the users posts that they pretty much all lose money" but you don't back it up. Cool, yeah, it's a zero-sum game with a rake: a little more than half of the players will lose. That's expected. They'll probably complain about it, too, huh?
I only have and need one: I have chosen not to disclose my personal valuation for privacy reasons. Same reason I've had all along. I instead publicly disclose my trades, as they happen, on my website. The posts are timestamped, and the ones that are the start of a position contain the price I entered at. Go check the posts, then go check the charts, then go check my archive. But feel free to continue to arbitrarily call my credibility into question--that makes your argument better!
First, our argument so far has had nothing to do with risk. Second, I told you I am leveraged 2.5:1, two posts ago. Third, you realize I'm trading Bitcoin, not ForEx, correct? And that no one in their right mind would offer 100:1 leverage on Bitcoin due to its volatility?
A year ago I was finishing up college and extricating myself from the TCG business I'd co-founded. I took very little in take-home pay over that period, but kept part ownership of the continuing business. Money isn't just about the number on your bank account--it's also about residual future income.
Coins that offer something different or that have a strong community to them can be valuable prospects.
LTC is the first-mover scrypt coin - DOGE has the most non-techies interested in its success and is spreading quickly as a result - NXT is a cool generation two coin that has a lot of features BTC doesn't have - VTC is ASIC-resistant
Nope. That's a false equivalence. It is possible that 4.95% of the market loses. It is not feasible, that, say, 99% of people with blue eyes lose. What, exactly, in empirical terms, is the difference between retail investors and hedge/institutions that causes this INCREDIBLE disparity? Would you care to respond to my above empirical argument that demonstrates that a zero-decision system is flipping a losing coin? Do you consider it feasible for 99% of people playing a 45-55 game to lose?
Not really yet, but there will be more prominent ones soon. I hear about a new one pretty regularly, it seems, but nothing that seems truly legitimate has come out. I'm certainly excited for them, though.
Eventually, once Mr. Lawsky and co. get things sorted out, I'm certain we'll see a big-name investment bank start offering them.
I think Mage needs basic, class-level tuning. I'm not sure what needs to be done exactly, but I don't like what the Mage class power does to gameplay. I've thought some about how different it would be if it could only hit minions, and I'd want to know if Blizzard had tried that out. The Mage power is too versatile, and over the long-term I think it will prove to be problematic.
I'm currently short, but I don't expect to be so for a lot longer. I don't think we'll get past 550. I also don't expect this drop to hold on for a really long time.
I haven't seen a good, substantive rationale for what the MtGox situation really has to do with Bitcoin price. Yes, it looks bad, it certainly doesn't help with our legitimacy, but is it really worth the incredible price declines we continue to see? I don't think so. I think we are seeing these impressive declines because the price on MtGox (which is a reflection of trust in MtGox relative to Bitcoin price, not just Bitcoin price) has been declining heavily. I don't expect it to continue forever, especially not with things like the Winkdex and the accompanying ETF launching.
MtGox is basically dead to me, for now at least. The sooner everyone stops paying attention to it, the sooner we can all get back on track, which I, for one, will be quite happy about.
It can be. I don't want the developers metaphorically over my shoulder outlawing strategies, but I don't mind if the strategies that are "less fun" for your opponent (Draw/Go, Mill, or Hard Combo from MTG, for example) are also less powerful. Most players prefer a game where the best decks are also among the most fun, because it means that they are playing against fun decks more often. Clearly the 2-cost 3/3 will be played most often. If you fix this by making both 2-cost guys 2/2s or 3/3s, or by making one a 2/3 and the other a 3/2, then you've done something--but it's not that interesting. If you instead make the 2-cost 2/2 have text that says "While you control the 3-cost 3/3, this gets +2/+2" and you give the 3 cost 3/3 text that says "While you control the 2-cost 2/2, it has Taunt" you now have more complex cards that reward players for doing something other than just playing the best stand-alone card.
This is obviously a very simplistic example, but I hope it makes the point. Games are more fun when you give players more relevant choices: buffing and nerfing cards tends not to do that as well as promoting synergies does.
You might need to rephrase your question for me to understand what you're asking. If you're asking why a Bitcoin has value, the answer is the same as any other good: because someone is willing to pay it.
If you're asking why someone is willing to pay that amount, my answer would be utility.
If I'm not going to be able to check my computer for a day or two, or I'm uncertain of what's going to happen the next few days, I do use the liquidity swap function. It's actually very profitable, relative to traditional investments. And you're right, it is low-risk. I'm a fan. Good job selecting it if you were intimidated--that's a good place to start. As far as actually starting trading, do science. Start with a hypothesis. If you were up at 5 AM today when MtGox published their announcement, a good hypothesis might have been something like: "This announcement is going to be a blow to their credibility, and might panic the markets. We'll probably drop by some amount as a result." Invest based on it, figure out around what price you want to take profits, and at what price you'll cut your losses and get out. Stick to those determinations unless something substantive changes. The time you tell yourself you can afford to not close your position because it will "rebound" back to where you want is also the time you lose your shirt.
Bitcoin isn't anonymous. That's actually a common misconception. It's actually pseudonymous, like Reddit. You end up with an online identity--a wallet address--that you use with Bitcoin.
If I walk up to you on a street corner and buy Bitcoin with cash, then I'm pretty much anonymous. If I buy it from a large institution like Coinbase or some other company, they will have records of the address my Bitcoin was bought for. As a result, you can trace them down, generally speaking.
The biggest hurdle for Bitcoin to overcome is governments. Governments have a variety of reasons not to want an alternative currency. We seem to have done pretty well on that front here in the US, but for other countries (China) that is not the case. Past that, the other major hurdle is something I consider an inevitability: consumer adoption. Business adoption has begun in earnest, consumer adoption hasn't. It will when enough businesses take Bitcoin to give it sufficient utility for the average customer.
I currently have no other holdings, but I've held DOGE and LTC at points and am considering VTC and NXT. DOGE is probably my favorite, because if the community can keep this up for a little longer it will snowball into amaze.
I do use relatively strict stop losses, but they're not stop loss orders. My conditions usually aren't just the price hitting a certain point, but instead it sustaining for a brief period, or hitting it with a certain volume, or with a certain amount of resistance to retreat. I don't want my stop loss to be triggered by some idiot who dumps 300 BTC and temporarily drops the price 15, but only ends up really dropping it 3. I am very strict with myself about this, though, generally speaking--if I can't trust promises I make to myself, what good am I?
100% of funds in every trade, so long as all funds are easily moved into the position. Common exceptions are lack of liquidity and funds being on other exchanges. My reasoning for being all-in all-the-time is that it's a profit-maximizing move. It is also risk-maximizing. My risk tolerance is infinite; most people's isn't. Only ever one. Generally BTC if I'm long, dollar if I'm short. I prefer to double-dip, as otherwise it would be in contradiction to the 100% plan. I use everything I have for trading. Again, profit-maximization, infinite risk tolerance.
I decide a closing price when I'm near either my stop loss or my profit aim. I place a limit order or multiple limit orders wherever I need to. I avoid market orders whenever possible. Enough is when I hit my goals or my loss tolerance. I decide these at the start, but I frequently re-evaluate them as news and market conditions develop.
I would suggest just running around shouting "You get to be your own bank" is probably the best way.
In all seriousness, though--we don't need to try. It's going to happen on its own from now on, as the news media slowly starts to pick up the story. People will start appearing on TV talking about it with more and more frequency. Things like the Dogelympic teams are great PR and help boost it up, as well, of course, but in general it's just going to follow the adoption curve of every other technology.
If it picks up in a few developing nations that have stable internet, it will be a massive revolution for them. Self-banking can do a huge amount of good for an economy like theirs. We might see reports on that. If a major newspaper decides to run a permanent paywall like what the Sun-Times tested recently, that could be big as well. The slow PR from tipping on Reddit is another way, to be honest. Every bit helps, but the cryptocurrency community is now large enough that we're going to do a significant amount of organic, word-of-mouth style growth.
Having a currency be tracked has negatives and positives, but it's overwhelmingly positive for the average consumer. Because it's tracked, you don't need to pay someone to move your money for you. There also are no chargebacks, which means merchants aren't getting scammed and passing those costs onto consumers. Theft costs everyone money. It's also very fast--transactions confirm in just 10 minutes, regardless of size or where it's going. Transferring dollars from here to China is very difficult--transferring Bitcoin? Just as easy as from anywhere else to anywhere.
MtGox (which originally stood for Magic the Gathering Online eXchange) was the first prominent Bitcoin exchange. They've been going through some rather rough times lately, some of which I was an early cataloguer of here. In short, everyone is freaking out because the exchange may be insolvent. It's not really a big deal to Bitcoin as a whole, but it's certainly an obvious blow to credibility. In my view, people are primarily upset because MtGox has been a part of Bitcoin for a very long time, and it can be hard to let go of what we're used to. I expect that they will either fix the issues or will go out of business officially very soon.
Unless my positions are on different exchanges or in different coins, they're all always 100% of what I'll put into that trade at entrance and exit. As a result, I end up with a binary choice: stay or reduce/close. I very rarely reduce position size, nearly always preferring to just end the position instead.
Last updated: 2014-02-25 04:57 UTC This post was generated by a robot! Send all complaints to epsy.
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