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CoinEx Token Rating Report by TokenInsight

CoinEx Token Rating Report by TokenInsight
Written by TokenInsight
Published by tokenin.cn

EXECUTIVE SUMMARY

Advantages

  1. The team’s overall technical background is good, and the CTO and CEO of the project have rich experience in related industries;
  2. The current business scope of CoinEx has been expanded, and the development of the public chain has a decisive role in promoting the development of the exchange business;
  3. The project operation information is transparent, and the development process is consistent with the road map;
  4. The unlocking schedule is clear, and the token held by the team will be unlocked continuously in the next five years;
  5. The project uses POS consensus mechanism. At present, it has been launched on the main network, and the block time is stable, between 2–3 seconds.

Challenges

  1. It is not clear enough yet whether the trichain operation planning can achieve the project’s development goals;
  2. There is limited information on implementation details about cross-chain and other related technologies, and the development status needs to be assessed based on the later project development disclosure information;
  3. The team currently hold a large share of the token, hence the distribution of tokens is relatively concentrated;
  4. There are few application scenarios for project tokens, and more ecosystem scenarios need to be developed;
  5. As a deflationary token, CET needs to be balanced by dealing with the contradiction between public chain users and token holders.

Outlook

The development of CoinEx Chain contributes to the future development of CoinEx’s centralized and decentralized exchanges; the concept of trichain operation simplifies the functions of each chain, improving their performance. At present, there are few exchanges working on the public chain, and no fierce competition has occurred.

Conclusion

Considering the status and development prospects of the project, TokenInsight gives CoinEx a rating of BB with a stable outlook.

1. Multidimensional evaluation


2. Project analysis

CoinEx (CoinEx Technology Limited) was established in December 2017 and is headquartered in Hong Kong, China. It is a sub-brand of the ViaBTC mining pool. At present, CoinEx’s business scope includes CoinEx exchange, CoinEx public chain, and CoinEx decentralized exchange. The current development focus of the CoinEx platform are public chain and exchange. The main purpose of the public chain is to build a decentralized exchange (DEX) infrastructure and an ecosystem around DEX.

CoinEx business structure,Source: CoinEx; TokenInsight

2.1 Introduction

“ CoinEx Chain uses the parallel operation of three chains which are DEX, Smart, and Privacy, as well as cross-chain technologies to create a rich decentralized exchange ecosystem and blockchain financial infrastructure.
The core of CoinEx’s early business was the exchange, consisted of two major categories which were spot and derivatives trading. Currently, there are 123 trading currencies online, covering 302 trading pairs. On June 28, 2019, CoinEx released the CoinEx Chain public chain white paper, aiming to build a decentralized trading system (CoinEx DEX) with community-based operations and transparent transaction rules, and providing user-controlled asset trading scenario by the highest technical standards in the industry; CoinEx Chain has become another development focus of CoinEx. CoinEx Token (CET), which was originally a native token of the CoinEx exchange, will also be developed mainly as a built-in token of the public chain.
CoinEx Chain is a public chain based on the Tendermint consensus protocol and Cosmos SDK, and it uses POS mechanism. CoinEx Chain plans to support 42 nodes when the project starts, and any entity in the ecosystem can participate in the validator’s campaign by staking CET. CoinEx Chain will use the new block reward and the transaction fee contained in the block as the reward for running the node.
CoinEx Chain has developed three public chains with different positioning and different functions in order to meet the needs of blockchain transactions for transaction performance, smart contracts, and privacy protection at the same time. They operate in parallel and collaborate with each other through cross-chain technology. At present, the block time of the public chain is between 2–3 seconds. According to the observation of TokenInsight, the block time is stable, but the number of transactions through the CoinEx public chain is still low at present, the number of transactions in 24 hours is about 30,000; The TPS on public chain disclosed by CoinEx can reach up to 1500 per second.
CoinEx Chain uses a trichain parallel model to build a more vibrant ecosystem around DEX. The three chains are DEX public chain, Smart public chain, and Privacy public chain, respectively responsible for decentralized transactions, smart contracts, and on-chain privacy protection.
CETs that need to participate in complex financial contracts can be transferred to the Smart public chain through the DEX public chain, then moved back to the DEX public chain after that. CET tokens that need to participate in token confusion can also be carried out through the privacy transaction of the Privacy public chain, and can eventually be returned to the DEX public chain. The three public chains are responsible for their respective duties, and they are interconnected through the cross-chain technology through the relay mechanism. In addition to ensuring their respective transaction processing speed and functional attributes, they can also jointly provide richer and safer functions, and synergistically constitute the CoinEx decentralized public chain ecosystem.
In addition, CoinEx Chain also supports any participant to issue new tokens on the chain and create new trading pairs for the issued tokens. CoinEx Chain guarantees the circulation of new tokens by establishing a trading pair between the new token and CET.

2.2 Component architecture

“ Tendermint Core and Cosmos SDK have improved the performance and operation capability of the blockchain. The SDK packaging reduces the consideration of non-related logic, hence reducing the development complexity.
CoinEx Chain is based on Tendermint Core and Cosmos SDK, both of which have brought a big boost to the development of CoinEx public chain performance. Cosmos-SDK will implement the application logic of the blockchain. Together with the Tendermint consensus engine, it implements the three-layer architecture of the CoinEx public chain: the application layer, the consensus layer, and the network layer.
Tendermint
Tendermint is based on the state machine replication technology and is suitable for blockchain ledger storage. It is a list of transactions making consensus with Byzantine fault tolerance, the transactions are executed in the same order, and eventually the same state is obtained. Tendermint can be used to build various distributed applications.
Cosmos SDK
Cosmos-SDK is a blockchain framework that supports the construction of multiple assets with a consensus mechanism of POS (Proof of Stake) or POA (Proof of Authority). The goal of the Cosmos SDK is to allow developers to easily build custom blockchains from 0, while enabling the interaction with other blockchains.
Cosmos-SDK is a blockchain framework that supports the construction of multiple assets with a consensus mechanism of POS (Proof of Stake) or POA (Proof of Authority). The goal of the Cosmos SDK is to allow developers to easily build custom blockchains from 0, while enabling the interaction with other blockchains. The blockchain development framework Cosmos SDK implements general functions such as account management, community governance, and staking in a modular form. Therefore, using the Cosmos SDK to build a public chain can simplify development procedures and facilitate operation. Tendermint is a fixed protocol in a partially synchronized environment, which can achieve throughput within a delay range of the network and each process itself. The CoinEx public chain is developed based on both, improving the performance and operability of the blockchain. The SDK packaging further reduces considerations of non-related logic and reduces the complexity of developers creating. The two components of Tendermint and Cosmos SDK are connected and interacted through the Application Blockchain Interface.
Cosmos SDK and Tendermint interworking structure,Source:CoinEx; TokenInsight

2.3 Project public chain planning

The development plan of the CoinEx public chain is to create a series of public chains with specific application directions, including:
  1. DEX public chain: solve the problems of lack of security and opacity that are widely criticized by centralized exchanges at present; aim to build a transparent, safe, and permission-free financial platform; restore the experience of central exchanges to the greatest extent;
  2. Smart public chain: a public chain that specifically supports smart contracts and provides a platform for building complex financial applications;
  3. Privacy public chain: mainly provides transaction amount, account balance, and information protection and the hiding of both parties to the transaction.
In order to achieve the performance of each specific application public chain, each public chain in the CoinEx public chain focuses on the development of a certain function. For example, in order to improve the transaction processing speed of the DEX public chain, the DEX public chain only supports the necessary functions and does not support smart contracts. To achieve the smart contract function support, cross-chain connection between the DEX public chain and the Smart public chain is required.

2.4 Operation analysis

“ The CoinEx platform publishes monthly ecosystem reports with high transparency; but the monthly reports are limited to contents about transactions and development, and lack progress in ecosystem and community construction, making them relatively simple.
2.4.1 Disclosure of ecosystem information
Operational risks have a direct impact on platform users. Whether platform operations are smooth and whether there is transparency are issues that platform users care about.
The CoinEx platform was established in 2017 and has around 3 years of development. It is also one of the platforms that has been developing for a long time in the exchange industry. It has obtained a digital currency trading license issued by the Estonian Financial Intelligence Unit (FIU), and the platform’s compliance is guaranteed to some degree.
The actual operation of the CoinEx platform will be displayed in the form of ecosystem monthly reports. The monthly report contains various types of content such as online currencies, new activities, plans for the next month, and ecosystem dynamics. It involves multiple business dimensions including the CoinEx exchange, CoinEx Public Chain, and CET token.

https://preview.redd.it/4mt0999ere551.png?width=631&format=png&auto=webp&s=cba27a7c90275f4c033bdd2445a72e6f294265e8
Snippet of a CoinEx ecosystem monthly report,Source: CoinEx; TokenInsight
2.4.2 Roadmap
CoinEx Chain released its development roadmap for the four quarters of 2020 in January 2020. The roadmap shows that CoinEx Chain will undergo major updates on smart contracts and DEX hard fork upgrades. The project roadmap is basically planned on a monthly basis, with a clear plan and a clear direction of development.
CoinEx Public Chain 2020 Development Roadmap,Source: CoinEx; TokenInsight
In addition to the development route planned in the roadmap, CoinEx public chain also discloses its goals for next month in its monthly ecological report. The project’s main net was launched online in November 2019. According to TokenInsight’s review of the development of CoinEx public chain from January to April and the disclosure of the project’s ecosystem monthly report, the project’s plan about development of the smart contract Demo in February failed to be completed as planned; the project completed launching of the new version of the blockchain browser and the Asian Atlantis upgrade; the smart contract virtual machine development was planned to be completed in April, but the progress related to supporting cross-chain agreements was not disclosed yet.
Overall, the project’s development route planning is clear, and the project’s development schedule is consistent with the plan, but there are still some discrepancies. Operation and development information is disclosed every month, and information transparency is high.

3. Industry & Competitors

The earliest origin of the exchange layout in the public chain field began in early 2018 when Binance released an announcement to start the development of the Binance Public Chain officially. In June of the same year, Huobi announced at its brand upgrade conference that it will combine the technical capabilities of the Huobi technical team and the community developers to develop the Huobi public chain called “Huobi Chain”. In December of the same year, OK Group announced the launch of its self-developed public chain OKchain, dedicating to provide underlying technical support and services for startups stationed in B-Labs.
The successful launch of the public chain brings huge strategic significance to the exchange, which can not only improve the performance of the existing business of the exchange but also achieve further expansion of its influence. As one of the most important blockchain infrastructures, the public chain can benefit the exchanges behind it.
As a platform for developing public chain technology exchanges, CoinEx’s main competitors in the field of public chain development include Binance, Huobi, and OKEx. Although they are all exchange platforms for deploying public chains, the above four are different in terms of specific functions, economic models, and critical points of the public chain.

3.1 Development progress comparison

In 2019, Binance became the first exchange to launch a public chain among all digital asset exchanges, and its main product is Binance exchange (DEX). In April 2020, Binance announced the launch of a second smart contract chain, using Ethereum’s virtual machine, so that developers can build decentralized applications without affecting the performance and functionality of their original chain.
OKEx launched OKChain’s testnet in February 2020 and completed open source two months later. OKChain is designed as the basis of large-scale blockchain-driven business applications, with the characteristics of source code decentralization, point-to-point, irreversibility, and efficient autonomy.
Huobi released Huobi Chain for the first time in July 2019, the code is open source, and the testnet was released in February 2020. As a “regulator-friendly financial blockchain”, Huobi Chain focuses on providing compliance services for companies and financial institutions.
The CoinEx public chain officially completed the main online launch in November 2019 and completed the new block browser’s launch in March 2020. On April 3, 2020, CoinEx DEX uploaded the underlying code to Github to achieve open source. The CoinEx public chain is more inclined to build a full DEX ecosystem to achieve a one-stop solution for issuing, listing, storing, and trading. The long-term goal is to create a blockchain financial infrastructure.

3.2 Comparison of economic models

At present, the exchange is more inclined to use its existing platform currency as the native token of the public chain in the construction of public chain ecology. CoinEx’s CET, Binance’s BNB, and Huobi’s HT all fall into this category. OKEx is the only exchange that issues new tokens for its OKChain, which means OKT is the only ‘inflation token’ in the exchange’s public chain, while CET, HT, and BNB are all deflationary.

3.3 Decentralization of public chain

The initial number of CoinEx public chain verification nodes is 42, which is currently the most decentralized among all exchange public chains, and able to take both efficiency and decentralization into account; OKChain also currently has a relatively high degree of decentralization in the exchange public chain (21 verification nodes), its nodes have a high degree of autonomy; by contrast, Binance still firmly controls the operation of nodes and transactions; In terms of encourages cooperation between regulators and the private financial aspects, Huobi provides a lesser degree of decentralization. Huobi Chain uses a variant of the DPoS consensus algorithm to provide functions such as “supervision nodes”, allowing regulators to become validators.
Comparison of some dimensions of CoinEx, Huobi, Binance and OKEx public chain,Source: TokenInsight

4. Token Economy

CoinEx Token (CET) is a native token of the CoinEx ecosystem. It was issued in January 2018. Token holders can enjoy some user value-added services within the ecosystem. Currently, it is mainly used as a native token on the CoinEx Chain. As of 11 am on April 23, 2020, the current circulation of CET tokens in the market is 3,215,354,906.31, with a total of 5,842,177,609.53. CET tokens will not be further issued or inflated. Currently, daily repurchase and quarterly destruction are carried out. The repurchase destruction dynamics can now be tracked real-time on the CET repurchase system on the platform.

4.1 Token Distribution

The CET token used to be based on the ERC-20 token developed by Ethereum. Since the CoinEx Chain mainnet was launched in November 2019, some ERC-20 CET tokens have been mapped to the mainnet CET, and the rest of the CET will be mapped before November 10, 2020. CET holders need to deposit ERC-20 CET to the COinEX exchange, and the exchange will conduct the main network mapping.
At present, CET is mainly circulated in the form of mainnet tokens, and only a small portion of ERC-20 CET has not been mapped. The distribution of token holdings currently circulating on the mainnet can be seen in the figure below. At present, the number of tokens held by the top ten holders accounts for about 60.44% of all mainnet CET tokens.
Distribution of CET token holding addresses,Source: Etherscan; TokenInsight
The following figure shows the initial distribution of tokens after the mainnet mapping preset by CoinEx. From the initial distribution map of CET, it shows that, after mapping, a large portion of CET remains concentrated in the hands of the team (31%), and the actual number of CET circulating in the market only accounts for 49% of the total.
The initial distribution of CET token,Source: CoinEx; TokenInsight
After the main net mapping, the 31% of the total CET (1.8 billion) held by the team will be gradually unlocked in the five years from 2020 to 2024, and 360 million CET will be unlocked each year. By 2024, the CET held by the team will be completely unlocked. From the current CET dynamics, the CET share held by some teams has been used for destruction purposes to achieve the purpose of CET austerity. If the frozen 1.8 billion CET held by the team are used for similar purposes, the development of CET and its platform can benefit from it.
Team’s CET unlocking plan,Source: CoinEx; TokenInsight

4.2 Token economic model

4.2.1 Deflation mechanism
Since the CET token went online in January 2018, CoinEx has increased the circulation of CET through airdrops, transaction fee refunds, operation promotion, and team unlocking. As one of the existing platform coins with long development time, the deflation mechanism of CET token has undergone a series of changes with the development of the industry. In 2018, when the concept of coin-based mining prevailed, CET used transaction mining, stake mining, and pending order mining, which were cancelled in October, December and, April respectively of the following year.
The repurchase and destruction model currently used by CET was updated by CoinEx on April 11, 2020. The original CET quarterly repurchase and destruction policy of the platform will be adjusted to daily repurchase and quarterly destruction. After the implementation of the daily repurchase policy, CoinEx will take out 50% of the daily fee income for CET repurchase in the secondary market and implement quarterly destruction until the total remaining circulation is 3 billion (currently about 5.8 billion).
At the same time that CoinEx updated the repurchase and destruction plan on April 11, the platform also launched a page dedicated to displaying CET repurchase information, so that users can clearly understand the progress of CET repurchase and destruction.
As of April 23, 2020, the platform has destroyed 4,157,822,390.46 CET tokens, accounting for 41.6% of the initial total issuance. At the end of January 2019, it had destroyed 4 billion CETs (single destruction volume peak) at the end of this quarter. The number of CETs to be destroyed is 3,422,983.56.
CET historical destruction data,Source: CoinEx; TokenInsight
4.2.2 Application scenarios
The current usage scenarios of CET are discounted platform transaction fees, VIP services, special activities rights and interests, CoinEx Chain internal circulation fuel, and use of external scenarios.
Deduction and discount of platform transaction fees
CoinEx platform users can use CET to deduct transaction fees when conducting transactions within the platform. At the same time, using CET to pay transaction fees can enjoy the exclusive preferential rates provided by the platform.
CET fee discount amount,Source:CoinEx; TokenInsight
VIP service
Holding a certain number of CETs can make a user become a platform VIP user. Users can also use CET to purchase platform VIPs to obtain corresponding privileges such as discounted rates, accelerated withdrawals, and exclusive customers.
Special activity rights
CET holders can enjoy special rights and interests in platform marketing activities, such as participating in the airdrop of tokens on the platform or accelerating opportunities for high-quality projects.
CoinEx Chain built-in token
CET will serve as a native token of CoinEx Chain, circulate and serve as fuel in CoinEx Chain, and users can also use CET to invest or trade other digital assets. In addition, CET can also serve as transaction fees and function fees (issuing Token, creating new trading pairs, account activation), etc. in the platform, and users can also participate in the campaign of validators by staking CET tokens.
CET is currently used as a circulation token as well for CoinEx DEX to issue tokens, create orders, Bancor, address activation, set address aliases, and other application scenarios.
In general, the types of application scenarios of CET are not plenty enough. In order to better develop the internal ecosystem of the platform, it is necessary to design and develop more CET usage scenarios and incentive mechanisms to increase the retention rate of users while adding new users.
4.2.3 Token incentive
As the native token of the CoinEx public chain, CET will be used as a block incentive to increase community participation after the mainnet of the public chain launched. The 315 million CET held by the foundation in the total CET issuance will be used to incentivize initial verification nodes and Staking participants.
CET annual incentive information,Source:CoinEx; TokenInsight

5. Team & Partners

5.1 Core team members

Among the core team members of CoinEx, the technical members account for a relatively large proportion. The technical team’s overall ability is good and the team members have different technical experience backgrounds including cryptography, underlying protocols, marketing, and operations. The team has rich blockchain industry experience, especially the chief developer, who has about 13 years of development industry experience.

https://preview.redd.it/kd0z9q0ese551.png?width=785&format=png&auto=webp&s=7beff33e522165202f6a0b75dba70f32630d8656
https://preview.redd.it/s2klsatese551.png?width=1024&format=png&auto=webp&s=57f03219007d853d754883e2e07cd5eb2c8ed17d
https://preview.redd.it/kuyspmkfse551.png?width=978&format=png&auto=webp&s=fd9c808107d245047f7c74ef34fcf6a02965152c

5.2 Investment institutions and partners

CoinEx’s investment is led by Bitmain and its main partners include Matrixport, Bitcoin.com, CoinBull, Consensus Lab, BTC.com, BTC.top, Hoo Exchange, Wa Yi, ChainFor.com, etc.
Investment institutions and major partners have rich experience in the industry, which can promote the development of projects to a certain extent. However, the current industry involved by the partners is not wide enough, and it will have a limited role in promoting the future of CoinEx’s enriching business lines and increasing ecosystem functions.
https://preview.redd.it/zjgzvv6ise551.png?width=533&format=png&auto=webp&s=a3f7fe3abb2c2d522e289213ae6fbc4e899825e0

6. Community Analysis

According to TokenInsight’s research of the CoinEx platform community, as of April 23, 2020, its official Twitter has 19,800 followers and 932 tweets; the official Telegram has 45 official groups, 3 in Chinese and English, and the other is Korean, Arabic, Vietnamese, Indian and other small language groups, with a total number of 56088 people; the current number of followers on Facebook accounts is 3,107. The overall community followers still have a lot of room for improvement, and community activeness needs to be improved.
Number of followers on the CoinEx social platform,Source:TokenInsight
At present, the project’s search popularity and official website visits are both top-notch, and monthly visits have slowly returned to their previous visit levels after experiencing a significant decline in December 2019.
CoinEx visit popularity,Source: TokenInsight, Similarweb, Google
At present, the visitors of the CoinEx website are distributed in multiple countries, and there are no visits concentration from a single country or region. Therefore, CoinEx’s comprehensive global influence is widely distributed and has a reasonable degree of internationalization.

CoinEx official website’s top 5 countries by number of visitors,Source: CoinEx, TokenInsight
Original article
Click here to register on CoinEx!
submitted by CoinExcom to btc [link] [comments]

Hashgraph Vs Blockchain- Top 7 Differences That You Must Know

You know that blockchain technology is continuously evolving at a rapid pace. Blockchains impact is powerful and is impacting business, finance, education, governance, healthcare even in sports, music. There are other similar distributed ledger technologies(DLT) to replace blockchain technology by providing a better solution. Hashgraph is one of them. It solves the distributed ledger differently and claims to be safer, fast, and fair. So here, we will compare two technologies, Hashgraph and Blockchain and which one is better. Before we proceed to the comparison, let us see each one in detail.

What Is Hashgraph?

Hashgraph is a form of distributed consensus which offers another approach to distributed ledger technology. It is a peer-to-peer platform that expels the requirement for any intermediary to complete transactions. It offers a secure, fair and fast network, and its is implemented using Java and Lisp programming languages. This means it supports solidity. One of the best advantages of Hashgraph is its speed. It can handle thousands of transactions per second and is able to verify more than one million signatures per second.

What Is Blockchain?

Blockchain is a popular form of distributed ledger technology. This technology is used by every cryptocurrency ie., bitcoin. Here, peers communicate between themselves to form a peer-to-peer network. Bitcoin uses the basic form of blockchain technology but is not so efficient. Hence we have seen an ascent in another type of blockchain technology. Ethereum is successful with a huge active community. It is a second generation blockchain which means it supports dApps and smart contracts.
In technical terms, blockchain is a series of blocks or records and supports append-only structure. Despite that, the database is immutable means that data that once written, cannot be deleted or altered by anyone else. Hence blockchain is a perfect solution for the issue where data immutability is necessary. Best use cases of blockchain are, supply chain management, voting and finance industry.

Hashgraph vs Blockchain-

1. Programming Language-

Blockchain makes use of languages- Java, C++, Solidity, Ruby and Python. For hashgraph, Lisp and Java languages are used.

2. Approach-

Hashgraph makes use of directed acyclic graph to store and access information. Blockchains are an open-source technology. It stores data in blocks in a linear way. The append approach works seamlessly but it is not always a way for blockchain solutions out there. In both DLTs, each node as a copy of the ledger that makes it decentralized.

3. Consensus Mechanism –

Hashgraph is based on asynchronous Byzantine-Fault Tolerance (aBFT), which provides an improved model of DLT by catering solutions to established cryptocurrency platforms. It uses Gossip about Gossip and virtual voting as a form of gaining network consensus.
Blockchain does not depend on a single approach to consensus. Contingent on cryptography and currency, Blockchain uses numerous consensus algorithms, like Proof of Work, Proof-of-Elapsed Time, Practical Byzantine Fault Tolerance, Proof of Stake, and so on.

4. Speed-

Speed of blockchain varies according to the solution(platform, cryptocurrency, etc.). But it is slower than Hashgraphs. Hashgraph can reach a speed of 5,00,000 transactions per second. Blockchain solutions like ethereum, bitcoin are slow and can do 100 to 10,000 transactions per second. And the Hashgraph Gossip method is a reason behind its speed. With this, less information needs to be propagated across a network.

5. Security-

Blockchain uses a different approach where they use cryptographic methods to ensure security. As we already know, blockchain is a series of blocks or records and that blocks are tamper-proof and no malicious actor can change the integrity of data.
To secure a network from malicious actor, Hashgraph uses an approach- Asynchronous Byzantine Fault Tolerance(aBFT).

7. Efficiency-

Blockchain’s block approach makes it hard for miners to work on a block. There are many instances where two blocks are mined at the same time. At this time, miner’s community needs to decide on one block, and discard the other. At last, miner’s effort is wasted which results in a less efficient network.
Hashgraph is 100% efficient. Hashgraph doesn’t rely on block creation, hence it doesn’t suffer problem.

6. Development Stage-

We have seen that Hashgraph is secured, efficient and offers speed, but it lacks in terms of adoption. Blockchain technology is adopted by various companies and organizations but the adoption rate of Hashgraph is slow.

7. Fairness-

Blockchain is less fair with regards to miners or users. The miner has more power to select orders, process and stop transactions. This is not fair to anyone who is directly or indirectly connected to the network.
Hashgraph manages fairness in a different way. It allocates nodes randomly and uses consensus time stamping, meaning others can not be affected due to the order of transactions. However, the concept of fairness is still vague and isn’t clarified in the Hashgraph whitepaper. It is one of the significant aspects of Hashgraph versus Blockchain comparison.

Use Cases-

Use cases for Hashgraph-
Use cases for Blockchain-

Final words-

Hashgraph is a latest technology as compared to blockchain. But it doesn’t mean that it replaces blockchain. There are a lot of projects that can use blockchain instead of Hashgraph.
submitted by SolaceInfotech to DLT [link] [comments]

Bitcoin (BTC)A Peer-to-Peer Electronic Cash System.

Bitcoin (BTC)A Peer-to-Peer Electronic Cash System.
  • Bitcoin (BTC) is a peer-to-peer cryptocurrency that aims to function as a means of exchange that is independent of any central authority. BTC can be transferred electronically in a secure, verifiable, and immutable way.
  • Launched in 2009, BTC is the first virtual currency to solve the double-spending issue by timestamping transactions before broadcasting them to all of the nodes in the Bitcoin network. The Bitcoin Protocol offered a solution to the Byzantine Generals’ Problem with a blockchain network structure, a notion first created by Stuart Haber and W. Scott Stornetta in 1991.
  • Bitcoin’s whitepaper was published pseudonymously in 2008 by an individual, or a group, with the pseudonym “Satoshi Nakamoto”, whose underlying identity has still not been verified.
  • The Bitcoin protocol uses an SHA-256d-based Proof-of-Work (PoW) algorithm to reach network consensus. Its network has a target block time of 10 minutes and a maximum supply of 21 million tokens, with a decaying token emission rate. To prevent fluctuation of the block time, the network’s block difficulty is re-adjusted through an algorithm based on the past 2016 block times.
  • With a block size limit capped at 1 megabyte, the Bitcoin Protocol has supported both the Lightning Network, a second-layer infrastructure for payment channels, and Segregated Witness, a soft-fork to increase the number of transactions on a block, as solutions to network scalability.

https://preview.redd.it/s2gmpmeze3151.png?width=256&format=png&auto=webp&s=9759910dd3c4a15b83f55b827d1899fb2fdd3de1

1. What is Bitcoin (BTC)?

  • Bitcoin is a peer-to-peer cryptocurrency that aims to function as a means of exchange and is independent of any central authority. Bitcoins are transferred electronically in a secure, verifiable, and immutable way.
  • Network validators, whom are often referred to as miners, participate in the SHA-256d-based Proof-of-Work consensus mechanism to determine the next global state of the blockchain.
  • The Bitcoin protocol has a target block time of 10 minutes, and a maximum supply of 21 million tokens. The only way new bitcoins can be produced is when a block producer generates a new valid block.
  • The protocol has a token emission rate that halves every 210,000 blocks, or approximately every 4 years.
  • Unlike public blockchain infrastructures supporting the development of decentralized applications (Ethereum), the Bitcoin protocol is primarily used only for payments, and has only very limited support for smart contract-like functionalities (Bitcoin “Script” is mostly used to create certain conditions before bitcoins are used to be spent).

2. Bitcoin’s core features

For a more beginner’s introduction to Bitcoin, please visit Binance Academy’s guide to Bitcoin.

Unspent Transaction Output (UTXO) model

A UTXO transaction works like cash payment between two parties: Alice gives money to Bob and receives change (i.e., unspent amount). In comparison, blockchains like Ethereum rely on the account model.
https://preview.redd.it/t1j6anf8f3151.png?width=1601&format=png&auto=webp&s=33bd141d8f2136a6f32739c8cdc7aae2e04cbc47

Nakamoto consensus

In the Bitcoin network, anyone can join the network and become a bookkeeping service provider i.e., a validator. All validators are allowed in the race to become the block producer for the next block, yet only the first to complete a computationally heavy task will win. This feature is called Proof of Work (PoW).
The probability of any single validator to finish the task first is equal to the percentage of the total network computation power, or hash power, the validator has. For instance, a validator with 5% of the total network computation power will have a 5% chance of completing the task first, and therefore becoming the next block producer.
Since anyone can join the race, competition is prone to increase. In the early days, Bitcoin mining was mostly done by personal computer CPUs.
As of today, Bitcoin validators, or miners, have opted for dedicated and more powerful devices such as machines based on Application-Specific Integrated Circuit (“ASIC”).
Proof of Work secures the network as block producers must have spent resources external to the network (i.e., money to pay electricity), and can provide proof to other participants that they did so.
With various miners competing for block rewards, it becomes difficult for one single malicious party to gain network majority (defined as more than 51% of the network’s hash power in the Nakamoto consensus mechanism). The ability to rearrange transactions via 51% attacks indicates another feature of the Nakamoto consensus: the finality of transactions is only probabilistic.
Once a block is produced, it is then propagated by the block producer to all other validators to check on the validity of all transactions in that block. The block producer will receive rewards in the network’s native currency (i.e., bitcoin) as all validators approve the block and update their ledgers.

The blockchain

Block production

The Bitcoin protocol utilizes the Merkle tree data structure in order to organize hashes of numerous individual transactions into each block. This concept is named after Ralph Merkle, who patented it in 1979.
With the use of a Merkle tree, though each block might contain thousands of transactions, it will have the ability to combine all of their hashes and condense them into one, allowing efficient and secure verification of this group of transactions. This single hash called is a Merkle root, which is stored in the Block Header of a block. The Block Header also stores other meta information of a block, such as a hash of the previous Block Header, which enables blocks to be associated in a chain-like structure (hence the name “blockchain”).
An illustration of block production in the Bitcoin Protocol is demonstrated below.

https://preview.redd.it/m6texxicf3151.png?width=1591&format=png&auto=webp&s=f4253304912ed8370948b9c524e08fef28f1c78d

Block time and mining difficulty

Block time is the period required to create the next block in a network. As mentioned above, the node who solves the computationally intensive task will be allowed to produce the next block. Therefore, block time is directly correlated to the amount of time it takes for a node to find a solution to the task. The Bitcoin protocol sets a target block time of 10 minutes, and attempts to achieve this by introducing a variable named mining difficulty.
Mining difficulty refers to how difficult it is for the node to solve the computationally intensive task. If the network sets a high difficulty for the task, while miners have low computational power, which is often referred to as “hashrate”, it would statistically take longer for the nodes to get an answer for the task. If the difficulty is low, but miners have rather strong computational power, statistically, some nodes will be able to solve the task quickly.
Therefore, the 10 minute target block time is achieved by constantly and automatically adjusting the mining difficulty according to how much computational power there is amongst the nodes. The average block time of the network is evaluated after a certain number of blocks, and if it is greater than the expected block time, the difficulty level will decrease; if it is less than the expected block time, the difficulty level will increase.

What are orphan blocks?

In a PoW blockchain network, if the block time is too low, it would increase the likelihood of nodes producingorphan blocks, for which they would receive no reward. Orphan blocks are produced by nodes who solved the task but did not broadcast their results to the whole network the quickest due to network latency.
It takes time for a message to travel through a network, and it is entirely possible for 2 nodes to complete the task and start to broadcast their results to the network at roughly the same time, while one’s messages are received by all other nodes earlier as the node has low latency.
Imagine there is a network latency of 1 minute and a target block time of 2 minutes. A node could solve the task in around 1 minute but his message would take 1 minute to reach the rest of the nodes that are still working on the solution. While his message travels through the network, all the work done by all other nodes during that 1 minute, even if these nodes also complete the task, would go to waste. In this case, 50% of the computational power contributed to the network is wasted.
The percentage of wasted computational power would proportionally decrease if the mining difficulty were higher, as it would statistically take longer for miners to complete the task. In other words, if the mining difficulty, and therefore targeted block time is low, miners with powerful and often centralized mining facilities would get a higher chance of becoming the block producer, while the participation of weaker miners would become in vain. This introduces possible centralization and weakens the overall security of the network.
However, given a limited amount of transactions that can be stored in a block, making the block time too longwould decrease the number of transactions the network can process per second, negatively affecting network scalability.

3. Bitcoin’s additional features

Segregated Witness (SegWit)

Segregated Witness, often abbreviated as SegWit, is a protocol upgrade proposal that went live in August 2017.
SegWit separates witness signatures from transaction-related data. Witness signatures in legacy Bitcoin blocks often take more than 50% of the block size. By removing witness signatures from the transaction block, this protocol upgrade effectively increases the number of transactions that can be stored in a single block, enabling the network to handle more transactions per second. As a result, SegWit increases the scalability of Nakamoto consensus-based blockchain networks like Bitcoin and Litecoin.
SegWit also makes transactions cheaper. Since transaction fees are derived from how much data is being processed by the block producer, the more transactions that can be stored in a 1MB block, the cheaper individual transactions become.
https://preview.redd.it/depya70mf3151.png?width=1601&format=png&auto=webp&s=a6499aa2131fbf347f8ffd812930b2f7d66be48e
The legacy Bitcoin block has a block size limit of 1 megabyte, and any change on the block size would require a network hard-fork. On August 1st 2017, the first hard-fork occurred, leading to the creation of Bitcoin Cash (“BCH”), which introduced an 8 megabyte block size limit.
Conversely, Segregated Witness was a soft-fork: it never changed the transaction block size limit of the network. Instead, it added an extended block with an upper limit of 3 megabytes, which contains solely witness signatures, to the 1 megabyte block that contains only transaction data. This new block type can be processed even by nodes that have not completed the SegWit protocol upgrade.
Furthermore, the separation of witness signatures from transaction data solves the malleability issue with the original Bitcoin protocol. Without Segregated Witness, these signatures could be altered before the block is validated by miners. Indeed, alterations can be done in such a way that if the system does a mathematical check, the signature would still be valid. However, since the values in the signature are changed, the two signatures would create vastly different hash values.
For instance, if a witness signature states “6,” it has a mathematical value of 6, and would create a hash value of 12345. However, if the witness signature were changed to “06”, it would maintain a mathematical value of 6 while creating a (faulty) hash value of 67890.
Since the mathematical values are the same, the altered signature remains a valid signature. This would create a bookkeeping issue, as transactions in Nakamoto consensus-based blockchain networks are documented with these hash values, or transaction IDs. Effectively, one can alter a transaction ID to a new one, and the new ID can still be valid.
This can create many issues, as illustrated in the below example:
  1. Alice sends Bob 1 BTC, and Bob sends Merchant Carol this 1 BTC for some goods.
  2. Bob sends Carols this 1 BTC, while the transaction from Alice to Bob is not yet validated. Carol sees this incoming transaction of 1 BTC to him, and immediately ships goods to B.
  3. At the moment, the transaction from Alice to Bob is still not confirmed by the network, and Bob can change the witness signature, therefore changing this transaction ID from 12345 to 67890.
  4. Now Carol will not receive his 1 BTC, as the network looks for transaction 12345 to ensure that Bob’s wallet balance is valid.
  5. As this particular transaction ID changed from 12345 to 67890, the transaction from Bob to Carol will fail, and Bob will get his goods while still holding his BTC.
With the Segregated Witness upgrade, such instances can not happen again. This is because the witness signatures are moved outside of the transaction block into an extended block, and altering the witness signature won’t affect the transaction ID.
Since the transaction malleability issue is fixed, Segregated Witness also enables the proper functioning of second-layer scalability solutions on the Bitcoin protocol, such as the Lightning Network.

Lightning Network

Lightning Network is a second-layer micropayment solution for scalability.
Specifically, Lightning Network aims to enable near-instant and low-cost payments between merchants and customers that wish to use bitcoins.
Lightning Network was conceptualized in a whitepaper by Joseph Poon and Thaddeus Dryja in 2015. Since then, it has been implemented by multiple companies. The most prominent of them include Blockstream, Lightning Labs, and ACINQ.
A list of curated resources relevant to Lightning Network can be found here.
In the Lightning Network, if a customer wishes to transact with a merchant, both of them need to open a payment channel, which operates off the Bitcoin blockchain (i.e., off-chain vs. on-chain). None of the transaction details from this payment channel are recorded on the blockchain, and only when the channel is closed will the end result of both party’s wallet balances be updated to the blockchain. The blockchain only serves as a settlement layer for Lightning transactions.
Since all transactions done via the payment channel are conducted independently of the Nakamoto consensus, both parties involved in transactions do not need to wait for network confirmation on transactions. Instead, transacting parties would pay transaction fees to Bitcoin miners only when they decide to close the channel.
https://preview.redd.it/cy56icarf3151.png?width=1601&format=png&auto=webp&s=b239a63c6a87ec6cc1b18ce2cbd0355f8831c3a8
One limitation to the Lightning Network is that it requires a person to be online to receive transactions attributing towards him. Another limitation in user experience could be that one needs to lock up some funds every time he wishes to open a payment channel, and is only able to use that fund within the channel.
However, this does not mean he needs to create new channels every time he wishes to transact with a different person on the Lightning Network. If Alice wants to send money to Carol, but they do not have a payment channel open, they can ask Bob, who has payment channels open to both Alice and Carol, to help make that transaction. Alice will be able to send funds to Bob, and Bob to Carol. Hence, the number of “payment hubs” (i.e., Bob in the previous example) correlates with both the convenience and the usability of the Lightning Network for real-world applications.

Schnorr Signature upgrade proposal

Elliptic Curve Digital Signature Algorithm (“ECDSA”) signatures are used to sign transactions on the Bitcoin blockchain.
https://preview.redd.it/hjeqe4l7g3151.png?width=1601&format=png&auto=webp&s=8014fb08fe62ac4d91645499bc0c7e1c04c5d7c4
However, many developers now advocate for replacing ECDSA with Schnorr Signature. Once Schnorr Signatures are implemented, multiple parties can collaborate in producing a signature that is valid for the sum of their public keys.
This would primarily be beneficial for network scalability. When multiple addresses were to conduct transactions to a single address, each transaction would require their own signature. With Schnorr Signature, all these signatures would be combined into one. As a result, the network would be able to store more transactions in a single block.
https://preview.redd.it/axg3wayag3151.png?width=1601&format=png&auto=webp&s=93d958fa6b0e623caa82ca71fe457b4daa88c71e
The reduced size in signatures implies a reduced cost on transaction fees. The group of senders can split the transaction fees for that one group signature, instead of paying for one personal signature individually.
Schnorr Signature also improves network privacy and token fungibility. A third-party observer will not be able to detect if a user is sending a multi-signature transaction, since the signature will be in the same format as a single-signature transaction.

4. Economics and supply distribution

The Bitcoin protocol utilizes the Nakamoto consensus, and nodes validate blocks via Proof-of-Work mining. The bitcoin token was not pre-mined, and has a maximum supply of 21 million. The initial reward for a block was 50 BTC per block. Block mining rewards halve every 210,000 blocks. Since the average time for block production on the blockchain is 10 minutes, it implies that the block reward halving events will approximately take place every 4 years.
As of May 12th 2020, the block mining rewards are 6.25 BTC per block. Transaction fees also represent a minor revenue stream for miners.
submitted by D-platform to u/D-platform [link] [comments]

Numbers on the screen or how digital payment systems make the market fair?

Numbers on the screen or how digital payment systems make the market fair?

https://preview.redd.it/6m1gp2mvotx41.png?width=1160&format=png&auto=webp&s=a83f0346d8008c17968d6a240cfba8fe3fe4e2aa
Continuing the trend of practicality characteristic of the XXI century, paper money is gradually disappearing from our lives, giving way to more practical digital storage. However, the digitized banking that we now use every day is still far from perfect. For starters, it is completely controlled by third parties. No one owns the numbers they see on the screen — control is entirely owned by third parties, such as banks.
Banks create money out of thin air, and credit is a prime example of this. Money is no longer printed when someone takes out an overdraft or mortgage-it is simply created out of nothing. Moreover, these banks charge disproportionately high fees for the services they provide, and these services are outdated and impractical today.
For example, it is impractical to pay a Commission to spend your money abroad, as it is impractical to wait a few days to verify the transfer of a small amount from You to your relative. All this makes no sense in the interconnected and instantaneous world in which We live today.
Thus, the monetary system has ceased to be practical, it is replaced by a higher form of value storage. In this particular case, it is replaced by a faster and safer system that eliminates expensive operations and gives control to the person.
https://i.redd.it/quc2bgmxotx41.gif
Money that you have in your Bank account can be considered a virtual currency since it does not have a physical form and exists only in the Bank book. If they lose the book, your money will simply disappear. These are just numbers that you see on the screen. The numbers are stored on the hard drives of Bank servers.

https://i.redd.it/4nvhydtzotx41.gif
Do you open a regular app and think you have money? They are just bytes of the computer system. Today’s global payment infrastructure moves money from one payment system to another through a series of internal Deposit transfers between financial institutions. Since these transfers occur in different systems with a low level of coordination, the calculation of funds is slow, often 3–5 days, capturing liquidity.

How do payments work?

When you make a money transfer, for example, from your Bank card to the Bank card of a friend or acquaintance, you see an instant transfer, so to speak, moving numbers from you to the Recipient. For the user, the transfer is carried out instantly, and the exchange of obligations between the participants of the process takes place within 3–7 days, the User does not know about it and hardly ever thinks about it.

https://preview.redd.it/rl4aai81ptx41.png?width=1400&format=png&auto=webp&s=cdfa10f0d68442aac84c14e3bae5a52e92651878
When you make a payment at a supermarket or any other point of sale, at the time of payment, information from the POS-terminal is sent to the acquiring Bank — then the acquiring Bank sends a request that passes through the payment system (Visa or MasterCard) and then transmitted to Your Bank, which confirms the operation. At this point, there is no write-off of funds. The funds are temporarily held, and the actual withdrawal will take place within a few days, the maximum processing time is up to 30 days.
https://i.redd.it/8njxgxq2ptx41.gif

Currency transactions and payments abroad

You may have noticed that after making a transaction in a different currency, such as yen or dirhams, or any other currency that differs from the currency of your account or buying an item abroad, the amount charged may differ from the amount that was reflected immediately after payment.

Why is this happening?

As soon As you have made a transaction with Your Bank card — the local Bank transfers the information to the payment system: Visa or MasterCard — the payment system converts the currency used into the billing currency.
Billing currency — the currency that will be used for payment with the payment system by your Bank that issued the card. For the US, the billing currency is the dollar, in Europe — the Euro.
The billing currency may also differ depending on the issuing Bank — the Bank that issued your debit card. For example, some banks use the billing currency — Euro when making payments with MasterCard cards in the United States, which will lead to additional costs when converting euros into dollars.
If the payment is in other currencies, the payment scheme will become more complicated and, accordingly, its cost will be more expensive. The transfer rate from one settlement currency to another is set by the payment system: Visa and MasterCard.
If the currency of your Bankcard is the same as the currency of the payment system, the payment will take place without additional operations. For example, You have a dollar card, you make a payment in dollars in the United States, and if you make a payment with a dollar card in Europe, your Bank will convert the amount at its exchange rate, which will lead to additional costs. There are exceptions, some European banks can use dollars for settlements, but this is more an exception than a rule.
Also, if, for example, you pay for purchases in China using a Bank card in euros, then double conversion is inevitable.
Thus, payment in dollars is universal all over the world, except for the European Union countries. The dollar is a global currency and is therefore often used for binding in international settlements.
Now we understand that due to differences in the account currency and the differences in the VISA or MasterCard payment system, additional conversions may occur, which will lead to additional bank fees. as a result, the actual payment amount will differ from the amount debited from your card.
In addition to paying for conversion in the payment system and paying for currency conversion in your Bank, some banks charge an additional fee for conducting a cross-border transaction.

Where do we lose money when making debit card payments?


https://i.redd.it/tykhrd56ptx41.gif
  1. Currency conversion by the payment system;
  2. Euro-Dollar, or in the case of processing payment via MasterCard in Turkey, Turkish lira-Euro and additional conversion on the side of the issuing Bank (your Bank) Euro — Dollar.
  3. Currency conversion by an acquiring bank;
  4. The difference between the exchange rate on the purchase date and the write-off date. We purchased at a rate of 0.91 euros per dollar, and the write-off occurred at a rate of 0.94 euros per dollar.
  5. A large number of currency conversions.
  6. The greater the number of them, the more we will lose when buying. For example, when paying in the UAE or China, buying a product for the local currency, we understand that the number of conversions increases several times.
If we touch on the topic of international translations, we will encounter additional nuances:
  • This is the payment processing time. International payments can be processed within 3–5 days, as mentioned above, which in our dynamic time — it interferes with the comfortable use of the system.
  • Restrictions on the amounts;
  • Possible requirements for certain documentation for payment confirmation;
  • Additional fees and commissions, sometimes hidden fees.
It is not always possible to make a transfer quickly and when necessary due to these restrictions. All this confirms the complexity of the operations and additional commissions that the user pays.

Сryptocurrency exchanges

And now back to the numbers on the screen, this topic affects not only banks but also centralized cryptocurrency exchanges:
  • You top up your Deposit on the exchange in cryptocurrency-then you use numbers inside the exchange, and real funds are most often stored on “cold storage” for which administrators or other responsible persons are responsible.
  • Only when you make a withdrawal from the exchange to your wallet-you are sent real funds (tokens or cryptocurrency).
The same applies to centralized applications and online services that deal with cryptocurrencies:
There are many services, both online and apps, that are centralized, regardless of what they will be called: Bitcoin wallet or bitcoin exchange. This means that when you add funds to an account in such a wallet, the funds are stored on the developecompany’s side. In simple words, all your funds are stored in the wallets of the system’s creators.
If you use a centralized app, you have a risk of losing funds. Although the application is called cryptocurrency, it does not affect its main principles — it is decentralization.
In other words, using systems where there is a Central authority, especially in the cryptocurrency market — the risk increases, so we recommend using decentralized systems for storing currency to reduce risks to a minimum.
Decentralization is the process of redistributing, dispersing functions, forces, power, people, or things from a Central location or governing body. Centralization is a condition in which the right to make the most important decisions remains with the highest levels of management.

Peer-to-peer payment systems

The opposite and standard of security and independence are peer-to-peer payment systems. Using the application-level network Protocol, clients running on multiple computers connect to form a peer-to-peer network.

https://preview.redd.it/ojcg4fz7ptx41.png?width=601&format=png&auto=webp&s=6cc81d1617b0cb64a3f5c7cc6d06a78354386f8c
There are no dedicated servers in such a network, and each node is both a client and performs server functions. In contrast to the client-server architecture, this organization allows you to maintain the network operability with any number and any combination of available nodes. All nodes are members of the network.

https://preview.redd.it/npttc3a9ptx41.png?width=1000&format=png&auto=webp&s=0f2dee1e5b19436a847dca96e2b3b7f22b801b57
Tkeycoin is a decentralized peer-to-peer payment system based on p2p principles and the concept of electronic cash. P2P technology is a fairer means of mutual settlements between users and companies around the world. Modern payment systems are imperfect and may depend on the will of high-ranking officials.
The main goal of Tkeycoin is to create universal products that will make financial transactions more accessible, profitable and secure.

https://i.redd.it/gk6j0m9bptx41.gif

What do decentralized systems protect against?

Using decentralized tools, for example, a local Tkeycoin wallet or a Multi-currency blockchain tkeyspace wallet — Your funds belong only to You and only You can use them, which eliminates the risks of third-party bankruptcy, and such a decentralized architecture can also protect against natural disasters. Given that there is no central server that can be damaged in a natural disaster, the system can work even if there are 2 nodes.

https://i.redd.it/sb6i2ladptx41.gif
In addition to force majeure situations, you protect your funds from theft and any sanctions from third parties-in our time, this is very important. The owner of Tkeycoin does not need Bank branches, does not need additional verifications, and does not need permission to use, transfer, or even transport Tkeycoin. You can easily carry $1 million worth of Tkeycoin in your pocket and even in theory not know any troubles.

https://preview.redd.it/uvw9vfyeptx41.png?width=1400&format=png&auto=webp&s=14b89acca3568fdc5eb82d986aaa2710219ced91
Besides, it is extremely convenient and safe to store even multibillion-dollar capital in Tkeycoin. Imagine that you have a lot, a lot of money, and you need a safe place to store it. Where do you apply? Of course, the Swiss Bank, Yes, but it can easily freeze your accounts and you can easily lose your savings. In recent years, many banks are actively fighting against gray non-cash funds (including offshore ones), and every month more and more legal proceedings are organized on this basis.

https://preview.redd.it/vodiuq5gptx41.png?width=1400&format=png&auto=webp&s=31ab44da4431b0159ef1213db7e37c6fd92d5b0a
The fact is that serious money, for the most part, has a gray tinge, and only a tiny fraction of billions and millions are clean for the law. That is why their owners are often called to court, subjected to pressure, forced to leave the country, and so on. If your money is stored in Tkeycoin, you will not be subjected to such pressure and will avoid the lion’s share of troubles that usually accompany accounts with many zeros.
Using peer-to-peer systems — you will not be called by a Bank Manager and require documents or a fraudster who asks for Your card number and SMS for confirmation. This is simply not the case, wallets are encrypted, and using different addresses guarantees privacy.
As for fees for transfers, there are no Visa or Mastercard payment systems, as well as additional fees that we discussed above.

How are payments made in the Tkeycoin peer-to-peer payment system?


https://i.redd.it/9ftct10iptx41.gif
As soon as you sign a transaction, it is sent to the blockchain and the miners are engaged in its confirmation, for which they take a symbolic Commission. Let’s look at an example, the key rate is $1, the transfer fee will be 0.00001970 TKEY or 0.00000174 TKEY.
0.00001970 TKEY=$0.00001970 0.00000174 TKEY=$0.00000174
Accordingly, commissions are almost zero. In Europe, on average, you will pay $15–20 for a small Bank transfer.
For example, now sending 1 million dollars to BTC, You will pay a Commission in the area of ≈3–8 dollars. Just think, 1 million dollars, without restrictions, risks, and sanctions, and most importantly, the transaction will be the available day today, and you paid an average of ≈5 dollars for the transfer.

Transactions in the Tkeycoin blockchain

Now let’s touch on the topic of how a transaction in the blockchain goes. Once you have sent a transaction, it will be available to the Recipient. The transaction takes place instantly and the User sees not” numbers on the screen”, but real funds-cryptocurrency. This is very convenient when you make any transactions and the Recipient needs to make sure that the payment came.
In the full node-there is a choice of confirmation blocks — this is the amount after which you can use the received cryptocurrency. When sending, you can select the number of confirmations:
• 2 blocks≈10 minutes • 4 block≈40 minutes • 6 blocks≈60 minutes • 12 blocks≈120 minutes • 24 blocks≈4 hours • 48 blocks≈8 hours • 144 blocks≈24 hours • 504 blocks≈3 days • 1008 blocks≈7 days
As we can see, you can also set a weekly confirmation if necessary. The minimum recommended number is 3 blocks. by default, the full node (local wallet) has 6 blocks installed. The presence of this number of confirmations ensures that Your block will not be forged and will be accepted by the network.
Each new transaction that receives network approval is sent to mempool, where it waits for miners to confirm it. When a miner takes a transaction to include it in the next block, it automatically receives the first confirmation.

Generating blocks in the TKEY network

A block in the TKEY network is generated within 6–10 minutes. the network automatically corrects the complexity and time of block formation. Thousands of transactions or a single transaction can be placed in a block.

https://i.redd.it/f9d17k8uptx41.gif
Transactions work faster in the TKEYSPACE app because we have already enabled new algorithms and this is now the fastest and most convenient way to exchange various digital currencies.

https://preview.redd.it/nnz5krdvptx41.png?width=1400&format=png&auto=webp&s=fee452ae6389c8f46d97357777193ed2b10bc4bc
Anyway, using the full node is also one of the safest ways to store and send Tkeycoin cryptocurrency, and most importantly, the full node stores a full copy of the entire blockchain, which benefits the network and provides protection from information forgery.
The more popular the project becomes, the more load is placed on the network itself. For example, 10,000 transactions passed in one block that was processed quickly, while the other 10–20 transactions in another block hung for a longer time, so temporary “pits” may appear. To deal with them, we are working on implementing additional chains-separate chains that are created for cross-transactions, which ensures fast payments under heavy load.
For the global system — we get a shipment around the world in 6–10 minutes, in cross-chains in 10 seconds. In comparison with the global payment system, which processes cross — border payments within 3–5 days, this is a huge advantage. If we add liquidity to this, we will get a perfect payment system.
https://preview.redd.it/2d0uu4gxptx41.png?width=1200&format=png&auto=webp&s=ae5f2f0bc8b7c7dedd1814eb32e97092a6330c3a
Also, you should not forget that if you did not sync with the network and sent a transaction, the transaction may hang in its memory pool and you will have to perform several actions to solve this situation. Here we must understand that syncing with the network is an important point because if you have a connection failure in the Internet Bank, the payment will also not be processed. After all, it will not be sent to a specialist for confirmation.
If you are currently experiencing any delays with transactions, this is due to the transition of CPU mining to GPU, as soon as miners switch to new mining methods, the confirmation of blocks will be consistently fast.
In conclusion: blockchain is a new technology and many terms, concepts and how it all works are still difficult for many to understand and this is normal from innovation.
In many countries, the word cryptocurrency and blockchain are synonymous and no one wants to understand the reality, most people believe that if the blockchain, it means it is related to trading on the cryptocurrency exchange. No one thinks about the real usefulness of certain solutions that will become commonplace for Us in the future.
For example, the Internet banking system dates back to the ’80s of the last century, when the Home Banking system was created in the United States. This system allowed depositors to check their accounts by connecting to the Bank’s computer via their phone. In the future, as the Internet and Internet technologies develop, banks are beginning to introduce systems that allow depositors to get information about their accounts via the Internet. For the first time, the service of transferring funds from accounts was introduced in 1994 in the United States by the Stanford Federal Credit Union, and in 1995 the first virtual Bank was created — Security First Network Bank. But, to the disappointment of the founders of the project, it failed because of strong distrust from potential customers, who, at that time, did not trust such an innovation.
Only in 2001, Bank of America became the first among all banks that provide e-banking services, the whole user base for this service exceeded 2 million customers. At that time, this figure was about 20 % of all Bank customers. And in October of the same year, 2001, and the same Bank of America took the bar in 3 million money transfers made using online banking services for a total amount of more than 1 billion US dollars. Currently, in Western Europe and America, more than 50% of the entire adult population uses e-banking services, and this figure reaches 90% among adult Internet users.
Life changes, and in the bustle of everyday work — we do not even notice how quickly all processes change.
We are experiencing a technological revolution that is inevitable.

https://i.redd.it/afcfj3rzptx41.gif
submitted by tkeycoin to Tkeycoin_Official [link] [comments]

r/Bitcoin recap - July 2019

Hi Bitcoiners!
I’m back with the 31st monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month.
You can see recaps of the previous months on Bitcoinsnippets.com
A recap of Bitcoin in July 2019
Adoption
Development
Security
Mining
Business
Education
Regulation & Politics
Archeology (Financial Incumbents)
Price & Trading
Fun & Other
submitted by SamWouters to Bitcoin [link] [comments]

The BSC Hard Fork of Bitcoin: An Overview

The BSC Hard Fork of Bitcoin: An Overview
Author: Hiro Midas

Background


Bitcoin is by far the most successful cryptocurrency. After ten years of development, the concept of Bitcoin as a community currency has gained widespread acceptance. With the participation of more and more miners, exchanges, developers, and ordinary users, the network effect of Bitcoin is strong and growing. According to the latest data from CoinMarketCap, Bitcoin Dominance accounts for 65.4% of the total market value of cryptocurrency, which is unmatched by any other blockchain project.
However, this huge network effect has not spawned more valuable applications on the Bitcoin network. This is mainly due to the non-Turing complete script of Bitcoin, which cannot support the implementation of complex logic. Although Bitcoin uses non-Turing-complete scripts for security reasons, this undoubtedly sacrifices more possibilities for the Bitcoin ecosystem and hinders the further expansion of its network effect.
Smart contracts are Turing complete and can be used to develop complex DApps. But even though Ethereum and other blockchain projects support smart contracts, the user base and network effects pale in comparison to Bitcoin.

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BSC = Bitcoin Users + Smart Contracts

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We propose BSC (Bitcoin Smart Contract) in the whitepaper https://docs.bsc.net/en/bsc_en.pdf BSC will be a hard fork of Bitcoin, inheriting all the transaction history of Bitcoin, and will support smart contracts with unlimited flexibility. With the original user base and network effects of Bitcoin, BSC will enable DApps with real value.
Bitcoin users + smart contracts are likely to bring the entire industry into a new phase. Applications in the original smart contract ecosystem will likely bring qualitative changes with the help of Bitcoin’s network effect:
BTC + Digital Assets. Bitcoin users and developers will be able to issue digital assets similar to ERC-20 on the BSC network. The Bitcoin network effect makes these assets potentially more useful and valuable.
BTC + DeFi. Similar to MakerDAO, decentralized lending and fund custody, stablecoins, etc. will be built on the user base of Bitcoin to gain greater scale and visibility with the leading crypto asset.
BTC + Privacy Protocol. Since Bitcoin assets account for a very high proportion in the entire industry, Bitcoin users’ need for privacy is even more urgent. A smart contract-based privacy protocol can be built in the BSC ecosystem, and Bitcoin users can use this to achieve asset privacy.
BTC + DApp. Bitcoin users can directly create various DApps in the BSC network, such as decentralized exchanges, decentralized games, and decentralized domain name services. These applications are not mainstream now, but given the huge network effect of Bitcoin, there will be more DApps that can prove their value.

Compatibility with Bitcoin Ecosystem

To provide the huge network effect of Bitcoin, BSC is technically compatible with Bitcoin in terms of the underlying architecture and network parameters:
The infrastructure layer of the BSC adopts the UTXO (Unspent Transaction Output) model that is completely consistent with Bitcoin, supports all script types of Bitcoin, and naturally supports SegWit, multi-sig, etc. Compared with the account model, the UTXO model has certain advantages in terms of security, anonymity, and parallelism, and supports SPV (Simple Payment Verification), which makes it easier to support light wallets.
Due to the consistency of the underlying architecture, BSC is naturally compatible with the Bitcoin ecosystem. For example, all types of Bitcoin wallets, browsers, and Layer-2 protocols (such as the Lightning Network) can directly support BSC, and users have no limits.
Also, the upper limit of the total supply of BSC, the inflation rate, and the halving period are all consistent with Bitcoin. BSC will also inherit all the transaction history data of Bitcoin. Bitcoin users will obtain the equivalent BSC 1: 1. All subsequent BSC coins will be generated by PoW mining, and the development team will not have any pre-mining or pre-allocation of any coins.

Compatibility with Smart Contracts

Virtual machines are the execution environment of smart contracts. Based on maintaining the above compatibility with Bitcoin’s underlying infrastructure, BSC has achieved compatibility with EVM (Ethereum Virtual Machine) by adding additional scripts and intermediate layers, so that it can theoretically support all smart contracts in the Ethereum ecosystem. Popular applications in the Ethereum ecosystem, such as MakerDAO, AZTEC privacy protocol, decentralized stablecoins, etc., can be directly ported to the BSC network. Although these applications have received some attention on Ethereum, restrictions on the Ethereum network has significantly limited their further development. For example, decentralized lending, if you rely on the stability of Bitcoin assets and the participation of Bitcoin users, you will get more room for development.

Mining Algorithm and Reward

BSC uses the PoW consensus mechanism. Unlike Bitcoin, BSC uses the newer SHA-3 + Blake2b mining algorithm. Bitcoin’s computing power is mainly controlled by several large Bitcoin mining pools. If BSC used a PoW mining algorithm the same as Bitcoin or any mining algorithm that already has ASIC miners, there would be a good possibility for the network to suffer 51% attacks during the initial startup. To reduce the risk of attack and keep the network sufficiently decentralized, BSC uses the SHA-3 + Blake2b hash algorithm. This algorithm has been verified in projects such as Handshake, and currently, there is no ASIC miner available, which helps ensure the stable development of the BSC network.
As a BSC miner, in addition to the block rewards and transaction fees like Bitcoin, the block rewards will include the gas cost of smart contracts. Every halving of bitcoin brings significant challenges to miners. When the future bitcoin block reward is reduced to zero, whether transaction fees can support miners’ income is still unknown. The introduction of smart contracts will give BSC miners a source of additional revenue, further encourage miners to participate in mining, and protect the security of the network.

Community Governance

The BSC project is initiated by the developers from its community, and they no economic benefits. Therefore, the development of the BSC project must rely on a sufficient number of people to recognize its value. To verify interest, BSC will collect digital signatures from the Bitcoin community, and the project will not officially start until it receives signature support for more than 50,000 BTC, as shown on the official website (https://bsc.net/).
After the project was released on Bitcointalk https://bitcointalk.org/index.php?topic=5231921.0 , the BSC project gained more and more attention in the Bitcoin community, and the number of signatures collected is steadily increasing, proving that more and more Bitcoin holders have recognized the idea of Bitcoin Smart Contract. From https://bsc.net/


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Your Guide to Monero, and Why It Has Great Potential

/////Your Guide to Monero, and Why It Has Great Potential/////

Marketing.
It's a dirty word for most members of the Monero community.
It is also one of the most divisive words in the Monero community. Yet, the lack of marketing is one of the most frustrating things for many newcomers.
This is what makes this an unusual post from a member of the Monero community.
This post is an unabashed and unsolicited analyzation of why I believe Monero to have great potential.
Below I have attempted to outline different reasons why Monero has great potential, beginning with upcoming developments and use cases, to broader economic motives, speculation, and key issues for it to overcome.
I encourage you to discuss and criticise my musings, commenting below if you feel necessary to do so.

///Upcoming Developments///

Bulletproofs - A Reduction in Transaction Sizes and Fees
Since the introduction of Ring Confidential Transactions (Ring CT), transaction amounts have been hidden in Monero, albeit at the cost of increased transaction fees and sizes. In order to mitigate this issue, Bulletproofs will soon be added to reduce both fees and transaction size by 80% to 90%. This is great news for those transacting smaller USD amounts as people commonly complained Monero's fees were too high! Not any longer though! More information can be found here. Bulletproofs are already working on the Monero testnet, and developers were aiming to introduce them in March 2018, however it could be delayed in order to ensure everything is tried and tested.
Multisig
Multisig has recently been merged! Mulitsig, also called multisignature, is the requirement for a transaction to have two or more signatures before it can be executed. Multisig transactions and addresses are indistinguishable from normal transactions and addresses in Monero, and provide more security than single-signature transactions. It is believed this will lead to additional marketplaces and exchanges to supporting Monero.
Kovri
Kovri is an implementation of the Invisible Internet Project (I2P) network. Kovri uses both garlic encryption and garlic routing to create a private, protected overlay-network across the internet. This overlay-network provides users with the ability to effectively hide their geographical location and internet IP address. The good news is Kovri is under heavy development and will be available soon. Unlike other coins' false privacy claims, Kovri is a game changer as it will further elevate Monero as the king of privacy.
Mobile Wallets
There is already a working Android Wallet called Monerujo available in the Google Play Store. X Wallet is an IOS mobile wallet. One of the X Wallet developers recently announced they are very, very close to being listed in the Apple App Store, however are having some issues with getting it approved. The official Monero IOS and Android wallets, along with the MyMonero IOS and Android wallets, are also almost ready to be released, and can be expected very soon.
Hardware Wallets
Hardware wallets are currently being developed and nearing completion. Because Monero is based on the CryptoNote protocol, it means it requires unique development in order to allow hardware wallet integration. The Ledger Nano S will be adding Monero support by the end of Q1 2018. There is a recent update here too. Even better, for the first time ever in cryptocurrency history, the Monero community banded together to fund the development of an exclusive Monero Hardware Wallet, and will be available in Q2 2018, costing only about $20! In addition, the CEO of Trezor has offered a 10BTC bounty to whoever can provide the software to allow Monero integration. Someone can be seen to already be working on that here.
TAILS Operating System Integration
Monero is in the progress of being packaged in order for it to be integrated into TAILS and ready to use upon install. TAILS is the operating system popularised by Edward Snowden and is commonly used by those requiring privacy such as journalists wanting to protect themselves and sources, human-right defenders organizing in repressive contexts, citizens facing national emergencies, domestic violence survivors escaping from their abusers, and consequently, darknet market users.
In the meantime, for those users who wish to use TAILS with Monero, u/Electric_sheep01 has provided Sheep's Noob guide to Monero GUI in Tails 3.2, which is a step-by-step guide with screenshots explaining how to setup Monero in TAILS, and is very easy to follow.
Mandatory Hardforks
Unlike other coins, Monero receives a protocol upgrade every 6 months in March and September. Think of it as a Consensus Protocol Update. Monero's hard forks ensure quality development takes place, while preventing political or ideological issues from hindering progress. When a hardfork occurs, you simply download and use the new daemon version, and your existing wallet files and copy of the blockchain remain compatible. This reddit post provides more information.
Dynamic fees
Many cryptocurrencies have an arbitrary block size limit. Although Monero has a limit, it is adaptive based on the past 100 blocks. Similarly, fees change based on transaction volume. As more transactions are processed on the Monero network, the block size limit slowly increases and the fees slowly decrease. The opposite effect also holds true. This means that the more transactions that take place, the cheaper the fees!
Tail Emission and Inflation
There will be around 18.4 million Monero mined at the end of May 2022. However, tail emission will kick in after that which is 0.6 XMR, so it has no fixed limit. Gundamlancer explains that Monero's "main emission curve will issue about 18.4 million coins to be mined in approximately 8 years. (more precisely 18.132 Million coins by ca. end of May 2022) After that, a constant "tail emission" of 0.6 XMR per 2-minutes block (modified from initially equivalent 0.3 XMR per 1-minute block) will create a sub-1% perpetual inflatio starting with 0.87% yearly inflation around May 2022) to prevent the lack of incentives for miners once a currency is not mineable anymore.
Monero Research Lab
Monero has a group of anonymous/pseudo-anonymous university academics actively researching, developing, and publishing academic papers in order to improve Monero. See here and here. The Monero Research Lab are acquainted with other members of cryptocurrency academic community to ensure when new research or technology is uncovered, it can be reviewed and decided upon whether it would be beneficial to Monero. This ensures Monero will always remain a leading cryptocurrency. A recent end of 2017 update from a MRL researcher can be found here.

///Monero's Technology - Rising Above The Rest///

Monero Has Already Proven Itself To Be Private, Secure, Untraceable, and Trustless
Monero is the only private, untraceable, trustless, secure and fungible cryptocurrency. Bitcoin and other cryptocurrencies are TRACEABLE through the use of blockchain analytics, and has lead to the prosecution of numerous individuals, such as the alleged Alphabay administrator Alexandre Cazes. In the Forfeiture Complaint which detailed the asset seizure of Alexandre Cazes, the anonymity capabilities of Monero were self-demonstrated by the following statement of the officials after the AlphaBay shutdown: "In total, from CAZES' wallets and computer agents took control of approximately $8,800,000 in Bitcoin, Ethereum, Monero and Zcash, broken down as follows: 1,605.0503851 Bitcoin, 8,309.271639 Ethereum, 3,691.98 Zcash, and an unknown amount of Monero".
Privacy CANNOT BE OPTIONAL and must be at a PROTOCOL LEVEL. With Monero, privacy is mandatory, so that everyone gets the benefits of privacy without any transactions standing out as suspicious. This is the reason Darknet Market places are moving to Monero, and will never use Verge, Zcash, Dash, Pivx, Sumo, Spectre, Hush or any other coins that lack good privacy. Peter Todd (who was involved in the Zcash trusted setup ceremony) recently reiterated his concerns of optional privacy after Jeffrey Quesnelle published his recent paper stating 31.5% of Zcash transactions may be traceable, and that only ~1% of the transactions are pure privacy transactions (i.e., z -> z transactions). When the attempted private transactions stand out like a sore thumb there is no privacy, hence why privacy cannot be optional. In addition, in order for a cryptocurrency to truly be private, it must not be controlled by a centralised body, such as a company or organisation, because it opens it up to government control and restrictions. This is no joke, but Zcash is supported by DARPA and the Israeli government!.
Monero provides a stark contrast compared to other supposed privacy coins, in that Monero does not have a rich list! With all other coins, you can view wallet balances on the blockexplorers. You can view Monero's non-existent rich list here to see for yourself.
I will reiterate here that Monero is TRUSTLESS. You don't need to rely on anyone else to protect your privacy, or worry about others colluding to learn more about you. No one can censor your transaction or decide to intervene. Monero is immutable, unlike Zcash, in which the lead developer Zooko publicly tweeted the possibility of providing a backdoor for authorities to trace transactions. To Zcash's demise, Zooko famously tweeted:
" And by the way, I think we can successfully make Zcash too traceable for criminals like WannaCry, but still completely private & fungible. …"
Ethereum's track record of immutability is also poor. Ethereum was supposed to be an immutable blockchain ledger, however after the DAO hack this proved to not be the case. A 2016 article on Saintly Law summarised the problematic nature of Ethereum's leadership and blockchain intervention:
" Many ethereum and blockchain advocates believe that the intervention was the wrong move to make in this situation. Smart contracts are meant to be self-executing, immutable and free from disturbance by organisations and intermediaries. Yet the building block of all smart contracts, the code, is inherently imperfect. This means that the technology is vulnerable to the same malicious hackers that are targeting businesses and governments. It is also clear that the large scale intervention after the DAO hack could not and would not likely be taken in smaller transactions, as they greatly undermine the viability of the cryptocurrency and the technology."
Monero provides Fungibility and Privacy in a Cashless World
As outlined on GetMonero.org, fungibility is the property of a currency whereby two units can be substituted in place of one another. Fungibility means that two units of a currency can be mutually substituted and the substituted currency is equal to another unit of the same size. For example, two $10 bills can be exchanged and they are functionally identical to any other $10 bill in circulation (although $10 bills have unique ID numbers and are therefore not completely fungible). Gold is probably a closer example of true fungibility, where any 1 oz. of gold of the same grade is worth the same as another 1 oz. of gold. Monero is fungible due to the nature of the currency which provides no way to link transactions together nor trace the history of any particular XMR. 1 XMR is functionally identical to any other 1 XMR. Fungibility is an advantage Monero has over Bitcoin and almost every other cryptocurrency, due to the privacy inherent in the Monero blockchain and the permanently traceable nature of the Bitcoin blockchain. With Bitcoin, any BTC can be tracked by anyone back to its creation coinbase transaction. Therefore, if a coin has been used for an illegal purpose in the past, this history will be contained in the blockchain in perpetuity.
A great example of Bitcoin's lack of fungibility was reposted by u/ViolentlyPeaceful:
"Imagine you sell cupcakes and receive Bitcoin as payment. It turns out that someone who owned that Bitcoin before you was involved in criminal activity. Now you are worried that you have become a suspect in a criminal case, because the movement of funds to you is a matter of public record. You are also worried that certain Bitcoins that you thought you owned will be considered ‘tainted’ and that others will refuse to accept them as payment."
This lack of fungibility means that certain businesses will be obligated to avoid accepting BTC that have been previously used for purposes which are illegal, or simply run afoul of their Terms of Service. Currently some large Bitcoin companies are blocking, suspending, or closing accounts that have received Bitcoin used in online gambling or other purposes deemed unsavory by said companies. Monero has been built specifically to address the problem of traceability and non-fungibility inherent in other cryptocurrencies. By having completely private transactions Monero is truly fungible and there can be no blacklisting of certain XMR, while at the same time providing all the benefits of a secure, decentralized, permanent blockchain.
The world is moving cashless. Fact. The ramifications of this are enormous as we move into a cashless world in which transactions will be tracked and there is a potential for data to be used by third parties for adverse purposes. While most new cryptocurrency investors speculate upon vaporware ICO tokens in the hope of generating wealth, Monero provides salvation for those in which financial privacy is paramount. Too often people equate Monero's features with criminal endeavors. Privacy is not a crime, and is necessary for good money. Transparency in Monero is possible OFF-CHAIN, which offers greater transparency and flexibility. For example, a Monero user may share their Private View Key with their accountant for tax purposes.
Monero aims to be adopted by more than just those with nefarious use cases. For example, if you lived in an oppressive religious regime and wanted to buy a certain item, using Monero would allow you to exchange value privately and across borders if needed. Another example is that if everybody can see how much cryptocurrency you have in your wallet, then a certain service might decide to charge you more, and bad actors could even use knowledge of your wallet balance to target you for extortion purposes. For example, a Russian cryptocurrency blogger was recently beaten and robbed of $425k. This is why FUNGIBILITY IS ESSENTIAL. To summarise this in a nutshell:
"A lack of fungibility means that when sending or receiving funds, if the other person personally knows you during a transaction, or can get any sort of information on you, or if you provide a residential address for shipping etc. – you could quite potentially have them use this against you for personal gain"
For those that wish to seek more information about why Monero is a superior form of money, read The Merits of Monero: Why Monero Vs Bitcoin over on the Monero.how website.
Monero's Humble Origins
Something that still rings true today despite the great influx of money into cryptocurrencies was outlined in Nick Tomaino's early 2016 opinion piece. The author claimed that "one of the most interesting aspects of Monero is that the project has gained traction without a crowd sale pre-launch, without VC funding and any company or well-known investors and without a pre-mine. Like Bitcoin in the early days, Monero has been a purely grassroots movement that was bootstrapped by the creator and adopted organically without any institutional buy-in. The creator and most of the core developers serve the community pseudonymously and the project was launched on a message board (similar to the way Bitcoin was launched on an email newsletter)."
The Organic Growth of the Monero Community
The Monero community over at monero is exponentially growing. You can view the Monero reddit metrics here and see that the Monero subreddit currently gains more than 10,000 (yes, ten thousand!) new subscribers every 10 days! Compare this to most of the other coins out there, and it proves to be one of the only projects with real organic growth. In addition to this, the community subreddits are specifically divided to ensure the main subreddit remains unbiased, tech focused, with no shilling or hype. All trading talk is designated to xmrtrader, and all memes at moonero.
Forum Funding System
While most contributors have gratefully volunteered their time to the project, Monero also has a Forum Funding System in which money is donated by community members to ensure it attracts and retains the brightest minds and most skilled developers. Unlike ICOs and other cryptocurrencies, Monero never had a premine, and does not have a developer tax. If ANYONE requires funding for a Monero related project, then they can simply request funding from the community, and if the community sees it as beneficial, they will donate. Types of projects range from Monero funding for local meet ups, to paying developers for their work.
Monero For Goods, Services, and Market Places
There is a growing number of online goods and services that you can now pay for with Monero. Globee is a service that allows online merchants to accept payments through credit cards and a host of cryptocurrencies, while being settled in Bitcoin, Monero or fiat currency. Merchants can reach a wider variety of customers, while not needing to invest in additional hardware to run cryptocurrency wallets or accept the current instability of the cryptocurrency market. Globee uses all of the open source API's that BitPay does making integrations much easier!
Project Coral Reef is a service which allows you to shop and pay for popular music band products and services using Monero.
Linux, Veracrypt, and a whole array of VPNs now accept Monero.
There is a new Monero only marketplace called Annularis currently being developed which has been created for those who value financial privacy and economic freedom, and there are rumours Open Bazaar is likely to support Monero once Multisig is implemented.
In addition, Monero is also supported by The Living Room of Satoshi so you can pay bills or credit cards directly using Monero.
Monero can be found on a growing number of cryptocurrency exchange services such as Bittrex, Poloniex, Cryptopia, Shapeshift, Changelly, Bitfinex, Kraken, Bisq, Tux, and many others.
For those wishing to purchase Monero anonymously, there are services such as LocalMonero.co and Moneroforcash.com.
With XMR.TO you can pay Bitcoin addresses directly with Monero. There are no other fees than the miner ones. All user records are purged after 48 hours. XMR.TO has also been added as an embedded feature into the Monerujo android wallet.
Coinhive Browser-Based Mining
Unlike Bitcoin, Monero can be mined using CPUs and GPUs. Not only does this encourage decentralisation, it also opens the door to browser based mining. Enter side of stage, Coinhive browser-based mining. As described by Hon Lau on the Symnatec Blog Browser-based mining, as its name suggests, is a method of cryptocurrency mining that happens inside a browser and is implemented using Javascript. Coinhive is marketed as an alternative to browser ad revenue. The motivation behind this is simple: users pay for the content indirectly by coin mining when they visit the site and website owners don't have to bother users with sites laden with ads, trackers, and all the associated paraphern. This is great, provided that the websites are transparent with site visitors and notify users of the mining that will be taking place, or better still, offer users a way to opt in, although this hasn't always been the case thus far.
Skepticism Sunday
The main Monero subreddit has weekly Skepticism Sundays which was created with the purpose of installing "a culture of being scientific, skeptical, and rational". This is used to have open, critical discussions about monero as a technology, it's economics, and so on.

///Speculation///

Major Investors And Crypto Figureheads Are Interested
Ari Paul is the co-founder and CIO of BlockTower Capital. He was previously a portfolio manager for the University of Chicago's $8 billion endowment, and a derivatives market maker and proprietary trader for Susquehanna International Group. Paul was interviewed on CNBC on the 26th of December and when asked what was his favourite coin was, he stated "One that has real fundamental value besides from Bitcoin is Monero" and said it has "very strong engineering". In addition, when he was asked if that was the one used by criminals, he replied "Everything is used by criminals including the US dollar and the Euro". Paul later supported these claims on Twitter, recommending only Bitcoin and Monero as long-term investments.
There are reports that "Roger Ver, earlier known as 'Bitcoin Jesus' for his evangelical support of the Bitcoin during its early years, said his investment in Monero is 'substantial' and his biggest in any virtual currency since Bitcoin.
Charlie Lee, the creator of Litecoin, has publicly stated his appreciation of Monero. In a September 2017 tweet directed to Edward Snowden explaining why Monero is superior to Zcash, Charlie Lee tweeted:
All private transactions, More tested privacy tech, No tax on miners to pay investors, No high inflation... better investment.
John McAfee, arguably cryptocurrency's most controversial character at the moment, has publicly supported Monero numerous times over the last twelve months(before he started shilling ICOs), and has even claimed it will overtake Bitcoin.
Playboy instagram celebrity Dan Bilzerian is a Monero investor, with 15% of his portfolio made up of Monero.
Finally, while he may not be considered a major investor or figurehead, Erik Finman, a young early Bitcoin investor and multimillionaire, recently appeared in a CNBC Crypto video interview, explaining why he isn't entirely sold on Bitcoin anymore, and expresses his interest in Monero, stating:
"Monero is a really good one. Monero is an incredible currency, it's completely private."
There is a common belief that most of the money in cryptocurrency is still chasing the quick pump and dumps, however as the market matures, more money will flow into legitimate projects such as Monero. Monero's organic growth in price is evidence smart money is aware of Monero and gradually filtering in.
The Bitcoin Flaw
A relatively unknown blogger named CryptoIzzy posted three poignant pieces regarding Monero and its place in the world. The Bitcoin Flaw: Monero Rising provides an intellectual comparison of Monero to other cryptocurrencies, and Valuing Cryptocurrencies: An Approach outlines methods of valuing different coins.
CryptoIzzy's most recent blog published only yesterday titled Monero Valuation - Update and Refocus is a highly recommended read. It touches on why Monero is much more than just a coin for the Darknet Markets, and provides a calculated future price of Monero.
CryptoIzzy also published The Power of Money: A Case for Bitcoin, which is an exploration of our monetary system, and the impact decentralised cryptocurrencies such as Bitcoin and Monero will have on the world. In the epilogue the author also provides a positive and detailed future valuation based on empirical evidence. CryptoIzzy predicts Monero to easily progress well into the four figure range.
Monero Has a Relatively Small Marketcap
Recently we have witnessed many newcomers to cryptocurrency neglecting to take into account coins' marketcap and circulating supply, blindly throwing money at coins under $5 with inflated marketcaps and large circulating supplies, and then believing it's possible for them to reach $100 because someone posted about it on Facebook or Reddit.
Compared to other cryptocurrencies, Monero still has a low marketcap, which means there is great potential for the price to multiply. At the time of writing, according to CoinMarketCap, Monero's marketcap is only a little over $5 billion, with a circulating supply of 15.6 million Monero, at a price of $322 per coin.
For this reason, I would argue that this is evidence Monero is grossly undervalued. Just a few billion dollars of new money invested in Monero can cause significant price increases. Monero's marketcap only needs to increase to ~$16 billion and the price will triple to over $1000. If Monero's marketcap simply reached ~$35 billion (just over half of Ripple's $55 billion marketcap), Monero's price will increase 600% to over $2000 per coin.
Another way of looking at this is Monero's marketcap only requires ~$30 billion of new investor money to see the price per Monero reach $2000, while for Ethereum to reach $2000, Ethereum's marketcap requires a whopping ~$100 billion of new investor money.
Technical Analysis
There are numerous Monero technical analysts, however none more eerily on point than the crowd-pleasing Ero23. Ero23's charts and analysis can be found on Trading View. Ero23 gained notoriety for his long-term Bitcoin bull chart published in February, which is still in play today. Head over to his Trading View page to see his chart: Monero's dwindling supply. $10k in 2019 scenario, in which Ero23 predicts Monero to reach $10,000 in 2019. There is also this chart which appears to be freakishly accurate and is tracking along perfectly today.
Coinbase Rumours
Over the past 12 months there have been ongoing rumours that Monero will be one of the next cryptocurrencies to be added to Coinbase. In January 2017, Monero Core team member Riccardo 'Fluffypony' Spagni presented a talk at Coinbase HQ. In addition, in November 2017 GDAX announced the GDAX Digit Asset Framework outlining specific parameters cryptocurrencies must meet in order to be added to the exchange. There is speculation that when Monero has numerous mobile and hardware wallets available, and multisig is working, then it will be added. This would enable public accessibility to Monero to increase dramatically as Coinbase had in excess of 13 million users as of December, and is only going to grow as demand for cryptocurrencies increases. Many users argue that due to KYC/AML regulations, Coinbase will never be able to add Monero, however the Kraken exchange already operates in the US and has XMfiat pairs, so this is unlikely to be the reason Coinbase is yet to implement XMfiat trading.
Monero Is Not an ICO Scam
It is likely most of the ICOs which newcomers invest in, hoping to get rich quick, won't even be in the Top 100 cryptocurrencies next year. A large portion are most likely to be pumps and dumps, and we have already seen numerous instances of ICO exit scams. Once an ICO raises millions of dollars, the developers or CEO of the company have little incentive to bother rolling out their product or service when they can just cash out and leave. The majority of people who create a company to provide a service or product, do so in order to generate wealth. Unless these developers and CEOs are committed and believed in their product or service, it's likely that the funds raised during the ICO will far exceed any revenue generated from real world use cases.
Monero is a Working Currency, Today
Monero is a working currency, here today.
The majority of so called cryptocurrencies that exist today are not true currencies, and do not aim to be. They are a token of exchange. They are like a share in a start-up company hoping to use blockchain technology to succeed in business. A crypto-assest is a more accurate name for coins such as Ethereum, Neo, Cardano, Vechain, etc.
Monero isn't just a vaporware ICO token that promises to provide a blockchain service in the future. It is not a platform for apps. It is not a pump and dump coin.
Monero is the only coin with all the necessary properties to be called true money.
Monero is private internet money.
Some even describe Monero as an online Swiss Bank Account or Bitcoin 2.0, and it is here to continue on from Bitcoin's legacy.
Monero is alleviating the public from the grips of banks, and protests the monetary system forced upon us.
Monero only achieved this because it is the heart and soul, and blood, sweat, and tears of the contributors to this project. Monero supporters are passionate, and Monero has gotten to where it is today thanks to its contributors and users.

///Key Issues for Monero to Overcome///

Scalability
While Bulletproofs are soon to be implemented in order to improve Monero's transaction sizes and fees, scalability is an issue for Monero that is continuously being assessed by Monero's researchers and developers to find the most appropriate solution. Ricardo 'Fluffypony' Spagni recently appeared on CNBC's Crypto Trader, and when asked whether Monero is scalable as it stands today, Spagni stated that presently, Monero's on-chain scaling is horrible and transactions are larger than Bitcoin's (because of Monero's privacy features), so side-chain scaling may be more efficient. Spagni elaborated that the Monero team is, and will always be, looking for solutions to an array of different on-chain and off-chain scaling options, such as developing a Mimblewimble side-chain, exploring the possibility of Lightning Network so atomic swaps can be performed, and Tumblebit.
In a post on the Monero subreddit from roughly a month ago, monero moderator u/dEBRUYNE_1 supports Spagni's statements. dEBRUYNE_1 clarifies the issue of scalability:
"In Bitcoin, the main chain is constrained and fees are ludicrous. This results in users being pushed to second layer stuff (e.g. sidechains, lightning network). Users do not have optionality in Bitcoin. In Monero, the goal is to make the main-chain accessible to everyone by keeping fees reasonable. We want users to have optionality, i.e., let them choose whether they'd like to use the main chain or second layer stuff. We don't want to take that optionality away from them."
When the Spagni CNBC video was recently linked to the Monero subreddit, it was met with lengthy debate and discussion from both users and developers. u/ferretinjapan summarised the issue explaining:
"Monero has all the mechanisms it needs to find the balance between transaction load, and offsetting the costs of miner infrastructure/profits, while making sure the network is useful for users. But like the interviewer said, the question is directed at "right now", and Fluffys right to a certain extent, Monero's transactions are huge, and compromises in blockchain security will help facilitate less burdensome transactional activity in the future. But to compare Monero to Bitcoin's transaction sizes is somewhat silly as Bitcoin is nowhere near as useful as monero, and utility will facilitate infrastructure building that may eventually utterly dwarf Bitcoin. And to equate scaling based on a node being run on a desktop being the only option for what classifies as "scalable" is also an incredibly narrow interpretation of the network being able to scale, or not. Given the extremely narrow definition of scaling people love to (incorrectly) use, I consider that a pretty crap question to put to Fluffy in the first place, but... ¯_(ツ)_/¯"
u/xmrusher also contributed to the discussion, comparing Bitcoin to Monero using this analogous description:
"While John is much heavier than Henry, he's still able to run faster, because, unlike Henry, he didn't chop off his own legs just so the local wheelchair manufacturer can make money. While Morono has much larger transactions then Bitcoin, it still scales better, because, unlike Bitcoin, it hasn't limited itself to a cripplingly tiny blocksize just to allow Blockstream to make money."
Setting up a wallet can still be time consuming
It's time consuming and can be somewhat difficult for new cryptocurrency users to set up their own wallet using the GUI wallet or the Command Line Wallet. In order to strengthen and further decentralize the Monero network, users are encouraged to run a full node for their wallet, however this can be an issue because it can take up to 24-48 hours for some users depending on their hard-drive and internet speeds. To mitigate this issue, users can run a remote node, meaning they can remotely connect their wallet to another node in order to perform transactions, and in the meantime continue to sync the daemon so in the future they can then use their own node.
For users that do run into wallet setup issues, or any other problems for that matter, there is an extremely helpful troubleshooting thread on the Monero subreddit which can be found here. And not only that, unlike some other cryptocurrency subreddits, if you ask a question, there is always a friendly community member who will happily assist you. Monero.how is a fantastic resource too!
Despite still being difficult to use, the user-base and price may increase dramatically once it is easier to use. In addition, others believe that when hardware wallets are available more users will shift to Monero.

///Conclusion///

I actually still feel a little shameful for promoting Monero here, but feel a sense of duty to do so.
Monero is transitioning into an unstoppable altruistic beast. This year offers the implementation of many great developments, accompanied by the likelihood of a dramatic increase in price.
I request you discuss this post, point out any errors I have made, or any information I may have neglected to include. Also, if you believe in the Monero project, I encourage you to join your local Facebook or Reddit cryptocurrency group and spread the word of Monero. You could even link this post there to bring awareness to new cryptocurrency users and investors.
I will leave you with an old on-going joke within the Monero community - Don't buy Monero - unless you have a use case for it of course :-) Just think to yourself though - Do I have a use case for Monero in our unpredictable Huxleyan society? Hint: The answer is ?
Edit: Added in the Tail Emission section, and noted Dan Bilzerian as a Monero investor. Also added information regarding the XMR.TO payment service. Added info about hardfork
submitted by johnfoss69 to CryptoCurrency [link] [comments]

Survey: Investors Likely to Flow Back to Gold; China Blockchain Euphoria Fading

Survey: Investors Likely to Flow Back to Gold; China Blockchain Euphoria Fading
According to a recent Twitter survey, Bitcoin investors are likely to turn to gold as the cryptocurrency’s most recent hype fizzles out, leaving losses in its wake. The poll, conducted by Novem Gold, reveals the extent of the disillusionment among BTC enthusiasts as prices remain largely suppressed in H2 2019.
This slump, however, is most alarming because it closely follows the sharp gains the coin had enjoyed after optimistic comments from the Chinese head of state regarding blockchain in October. The speech, widely regarded as a watershed moment for the cryptocurrency, could prove pivotal for Bitcoin and the crypto world. China’s massive population can single-handedly send the coin’s Bull Run back on track.
In his speech, Chinese President Xi Jinping referred to blockchain as “ an important breakthrough.” Before the statement, the prevailing sentiment was that the Chinese government was anti-blockchain. The primary signal came after its September 2017 banning of initial coin offerings (ICOs). The speech was therefore interpreted as a green light indicating that China was willing to embrace cryptocurrency trading in all its aspects, which would push Bitcoin prices once more to the moon.
China, for many years, has been the epicenter of blockchain and cryptocurrency activity. Before a large number of investors in other parts of the world grew accustomed to Bitcoin, China had already established itself as a mining hub. The East Asian nation has significantly contributed in many ways to the rise of the digital currency sector over the years.
As an illustration, as of 2017 the country’s insatiable need for crypto assets was almost 90% of crypto’s total global trading volumes. Shockingly, just a few months into 2018, this demand dipped below the 1% mark. This decline in demand also followed Bitcoin’s most significant price dip, which saw it go from a high of $19,800 to a low of $6,200 each in less than two months.

China is Pro Blockchain

The excitement over the Xi Jinping speech was therefore palpable in October when he said that his country would “seize the opportunity” that blockchain offers in research, standardization, and development. The Chinese President is the first leader of a global economic giant to make such friendly remarks towards a technology that is maligned by some of his peers.
If the government embraces cryptocurrencies, Chinese Bitcoin bulls would return and push prices through the roof. Following the unexpected speech, the price of Bitcoin temporarily surged, adding 40% after rallying to a high of $9,526 on November 4th.
Unfortunately, the rise halted and a consistent correction happened, lowering the value of the token to a $6,524 mark on November 25th, a much lower price than before the Xi effect. Bitcoin has, however, recouped some of its losses over the last few days, but it is still trading at half the price in comparison to June 2019.
The Chinese, in contrast to many other countries, have many advantages when it comes to cryptocurrency awareness. They have, for instance, long been aware of the virtues of speculation into new asset types. They are also more aware of virtual currencies and have, over time, developed cautionary optimism for digital currency regulation.
Tencent QQ’s reward program, for example, paid out in Q coins and had more than 221.4 million active users by 2006. Consequently, some of the earliest BTC adopters were Chinese. Bitcoin’s popularity in China also increased with the East Asian country’s rise to the position of the second most powerful economy on earth.
China’s 12-th strategic economic plan, released in 2011, was one of many development aspects aimed at the reduction of the poverty rampant in the nation’s rural zones. As a result of the economic success of this plan, China’s emerging middle class burst onto the scene, increasing the country’s domestic consumption from a low of 4% in 2000 to a high of 68% in 2012.
The money that was left over after savings were taken care of was channeled into speculative investing. Since this aspect of making money is a big part of the investment culture of the Chinese, the country’s investors took a quick liking to Bitcoin.
The Chinese, however, were not purchasing the digital asset for its privacy attributes but rather for its investment appeal. Unlike many Bitcoin enthusiasts in the West who love the digital currency for its P2P features, the Chinese adopted BT for its Gold 2.0 features. Speculating in gold is an investment activity most Chinese are accustomed to.
This difference is the reason why, when the Silk Road closed down, the Chinese market for crypto was hardly affected. In the West, however, the closure of the online black-market platform adversely affected Bitcoin prices.

BTC was Gold 2.0 to China

The interest in BTC investment in China rose even further with the loosening of the government’s tight grip on financial markets. At the time, Beijing was in the process of developing diverse financial markets for the new elite to invest in, such as derivatives. A strengthening economy with friendly regulations was just what the Bitcoin investment frenzy required.
With the creation of BTC mining hardware in 2013, the participation of the Chinese as miners and investors soared. New 2016 to 2017 crypto regulations, however, brought the Chinese crypto trading market to its knees because they quashed the ability to speculate in Gold 2.0.
Despite the death of crypto speculative trading, the Chinese crypto community is still very vibrant despite the stringent regulations around it. This resilience is especially visible in the area of blockchain application.
Such innovation is what the Xi Jinping government is promising to support, not decentralized cryptocurrencies that make it difficult for governments to control money as they wish. Since the pro-blockchain October speech, there has been a cascade of activity in the Chinese blockchain scene.
The Chinese central bank is, for instance, readying itself to release its Digital Currency Electronic Payment System. The People’s Bank of China intends to replace the use of fiat with the DCEP blockchain-based payments solution. This move would make the country the first major world economy to embrace a native digital currency.
With the launch of the digital payment systems, China would find it much easier to extend the influence of its monetary policy to the rest of the world. While Beijing has no regard for “censorship-resistant” and permission-less digital currencies — as they endanger capital controls — it is building its centralized digital currency to supplant Bitcoin.
This effort is a true testament to Bitcoin’s significance and the Chinese government’s appreciation that the world’s monetary system is dependent on technological advancements. Unlike the West, China has harnessed the power of internet connectivity without losing its control over freedom of expression. The economic giant is now strategizing ways that it can harness the power of blockchain, albeit minus its decentralized aspects.
It could be that the Chinese government’s interest in the blockchain is part of the drive to end the age of the USD. This is an opportunity to move the country past its dependence on US-owned foundational technologies. According to Xi China, through blockchain, will “take the leading position … occupy the commanding heights of innovation, and gain new industrial advantages.”
China, however, is determined to make its cryptocurrency more acceptable to the international and domestic markets than Bitcoin has ever been. The second-largest economy has been amassing massive amounts of gold, which analysts say will back its native digital currency.
A gold-backed digital currency is acceptable in any part of the world and will significantly enhance Beijing’s de-dollarization policy. It is therefore expected that the county will maintain its leading gold mining and buying positions in 2020, which should add more fuel to the ongoing global gold rally.
https://preview.redd.it/nc1l1mlcyq741.png?width=1200&format=png&auto=webp&s=3ea7c308c3e2e226d8eced72adabefba70d49a80
submitted by y0ujin to NovemGold [link] [comments]

Bitcoin and Energy Consumption - Rebuttals

Andreas Antonopolous was featured on a CaSE podcast. At around -00:15:00, he provides a great response about energy consumption in Bitcoin.
Summarized:
-Energy is being wasted
Clearly, Bitcoin is useful to some people. Judgements about whether or not something is wasted is best left to those using it. We don't end up with a good society if we start deciding for other people what is useful and what is not.
To people who value censorship-resistance, neutrality, global access, completely decentralised system of currency with no geopolitical attachments, Bitcoin is a very useful application. Some would argue it is the most useful application in the 21st century.
You can't do the security of Bitcoin without the investment in energy. To those who say you can, they are saying that you can get something of value out of nothing. There's a reason why the security of reason costs that much in terms of energy; if you do it for less, it's less secure. If it's less secure, you won't have a valuable network.
The energy in Bitcoin is not wasted - it's used to make the network secure without central authority. No one has demonstrated at scale an alternative.
-What about Proof of Stake?
There is a lot of complexity in using an intrinsic currency as stake for the security of the same currency. The game theory gets very complicated. Proof of Work is straightforward: you spend resources on energy in order to secure the virtual asset. If you decide to fuck it up, not only do you lose the value of the virtual asset, but you also spent money on energy that you are not going to get back. This creates a level of grounding.
This is the primary basis on which Bitcoin achieves immutability; the idea that it is as computationally expensive to re-write the ledger for 3 days as the amount of energy you spent to write the ledger the first time for 3 days. It is one of the security guarantees that Bitcoin has - in order to re-write the ledger, you have to expend the energy again, but you receive the reward once. This makes it very very expensive to re-write even small stretches of the ledger. We do not know of a better basis for immutability that doesn't use energy, and I would challenge anyone who claims that there is.
-The Nirvana fallacy - comparing Bitcoin to something perfect
If this world produced all energy from renewable resources, and all energy is used for useful things, then perhaps we may look at Bitcoin and ask whether or not the value of Bitcoin is commensurate to the energy we are using. None of the journalists did even a cursory examination of what energy is being used for today.
Let me give you just 3 examples: Bitcoin's energy use is one hundreth of the energy used in mining gold. Gold is integral to the monetary system that Bitcoin is directly trying to replace. There are also environmental costs of mining gold - from sulphuric acid leeching into rivers, denuding hills, destroying mountains, etc. A tiny fraction is being used for industrial use, the vast majority of gold is being held as store of value.
Let's take a look at things like Christmas lights. The entire electricity use of Bitcoin in a year pales in comparison to the 1 week of electricity being used to power Christmas lights in the US alone. There are additional effects such as light pollution, and the majority does not come from renewable resources. You can argue about the pointlessness of such tradition.
More practically, every charging device with a step-down converter sits plugged in and coverts electricity to heat. The estimated power this consumes is 2 orders of magnitudes greater than what Bitcoin consumes. This is a worldwide phenomenon which is an enormous drain of energy. Cherry on top: the world's largest polluters and energy spenders are military; the main purpose they serve is to kill people.
We haven't even discussed the amount of energy required to support the existing banking system.
-Journalistic dishonesty and sensationalism
Spare me the righteous indignation of the environmental impact and waste of energy of cryptocurrencies - it is unscientific and completely hypocritical. All of the journalistic analysis goes like this: if it takes X kilowatts to conduct 1 transaction, and we took it to world scale, how much energy would that cost? They disregard that the energy used is completely unrelated to the # of transactions. The equivalent flawed thinking would be, "if this pregnant lady's belly is THIS large at 3 months, then in 5 years, it will be as big as this entire room." That is the exact scientific value of extrapolating something on a variable that is not dependent.
-How are you sure of your numbers?
We can estimate the lower bound of energy consumption, and say that it is unlikely that the real number is twice as much as the lower bound. The energy requirement to do a hash is a fundamental thermodynamic law. You're flipping bits, and they take a certain amount of energy to flip. You know the computational energy efficiency of 16nm ASIC-based chips. If you assume the network operates on this (which is incorrect, but again, lower bound estimate), and we know exactly how many hashes/sec are being calculated, because that's recorded on the blockchain, then we can calculate exactly how many joules of energy it takes. If you assume 50% of miners have 1 generation of miners behind (unlikely, because miners require optimisation), then it is at most 1.5x the lower bound of energy consumption.
It is easy to estimate the amount of energy being used in Bitcoin, which makes it an easy target. When you use your VISA card, you do not see the 600,000 employees who commute to work using gasoline-burning cars, the 26-story buildings which are lit 24 hours a day, data centers which are doing fraud prevention and analytics, as well as selling data to intelligence agencies and advertisers. All of this costs a lot of money and energy, and arguably just as "wasteful," but it's a hidden cost.
submitted by lobt to Bitcoin [link] [comments]

Rise and Fall Part 9

Part 8 (has access to parts 1-7 in it)
For some reason it would not post the last day or so.
It is early 2017. I have been carrying on my usual playing 10-20 hours a week to survive. Still lethargic is best term I suppose. I just dont get excited to play anymore. I consider getting a job to remind me how shitty working is so it gives me a kick in the teeth to play poker. Then it dawns on me, I hate playing poker now.
Poker has been tainted. Everything bad that happened to me I can associate with poker. The rise and fall was poker (the fall part). The oxycontin started as a performance enhancer to log more hours. Everything I consider to be wrong in my life I trace back to poker essentially, even if just a butterfly affect reason that had I done something else I wouldnt be here.
Hating poker is not the greatest realization considering its my only means to income outside of grunt labor. I seek a job in a couple places to no avail which was fine, I didnt wanna do that either.
Several months earlier I had started playing on SWC (bitcoin site) and became familiarized with bitcoin. Thought nothing of it, it was just the currency I was winning or losing. I dont read a thing about it, I learn nothing of it. I wasnt playing a ton or even big stakes, my intention for playing online was to just stay sharp in case it ever comes back full fledge. I have 5-6 btc on this site at the most (2-3k) and I flush it playing plo and big o not thinking much of it.
Back to 2017. Its March/April~ of 2017. I am playing cards one night dicking around probably had a couple drinks and was needling the usuals etc. A guy I do not know is in the game. Looks Russian. I bet he interfered in our election... fucking commies. I dont remember how I got to talking to him but crypto had been brought up. I talk about SWC. Tell him I had a few btc but not anymore. The only other thing I remember well from the conversation was bitching about going from an iphone4 (yes I had an iphone4 from 2010-17, the same one. It barely worked. Many oxycontins snorted off the back of that phone, texts dating back to when I got it in 2010) to the 6 or 7 or wtfever I have now, which is bigger and its harder to text and drive. He just responds by saying “first world problems are the worst”. Amen brother, those Africans and Venezuelans have no clue of our struggle.
I end up talking to him a bit and it turns out he mines crypto. Has a website that sells mining equipment. He has a hell of a back story too. I tell him I am interested in mining. I have about 20k to my name at this time and I realized recently that I dont like playing poker so why not? He eventually tells me not to do it. Regardless we become friends and he is ultimately the most important friend I have ever made. I have made more positive strides mentally since meeting him (mostly work ethic, realizations, reality checks and aspirations) As silly as it sounds, when he told me “first world problems are the worst” it stuck with me. He was saying it as a joke but jokes are funniest when true. He is genuinely the smartest guy I have ever associated with also. If you run into him at a poker table youd think he was a high functioning autist. Then you talk to him and go “ohhh hes just one of those Einstein type geniuses”. His hair is usually a mess, he cuts his own hair for or has his girlfriend do it. He wears cheap clothing usually since it all covers your ass or nipples I suppose. He virtually never instigates conversation with people he doesnt know. He is really deliberate with his actions. Talks really calmly and knows exactly what he is saying. He is just on the same level at all times it seems.
Meeting him has definitely changed my life for the better. We become friends pretty quickly. I know I went on a downer after meeting him because I couldnt afford to buy mining stuff and remember wanting to (again, he told me not to do it eventually anyways).
Which will lead me to another good friend to have. Between 2015 and this point in 2017 I have shot myself in the foot not logging hours a couple times. A friend has bailed me out with a loan or short term stake a few times. He is a well off restaurant owner who loves poker more than just about anything not related to him. Every time I see him we talk about hands he played and he just eats it up, has photographic memory and never butchers a hand history which is nice. He is as good hearted of a guy as I have ever met. (Sorry if this is getting long winded giving praise to people close to me, I intend on sharing with a few people and would like them to know what they mean to me as corny as that is because I suck at doing it in real life. Plus it is kinda gay to get mushy sounding in real life, but I digress. Theyve heard virtually none of the content of this whole thread either, a ton of this stuff I have never shared) In fact he is too kind hearted. He has helped people who wouldnt piss on him if he was on fire, and people have burned him on many occasions. My only complaint about this person is he never kicked my ass and told me to log more hours or fuck off. I needed it. If I just logged hours I wouldnt need the help. Its as simple as that. I have no leaks other than the unwillingness to play (leaks as in drugs/pit games/strippers/wtf ever else) and it has hindered me immensely over the these last couple years. (Ok I do have one embarrassing leak that has been fixed for a year and change, mobile games... I have spent like 30,000$ on mobile games between late 2016 and late 2018, Lords Mobile specifically clocked me for 20k. This definitely hindered my ability to build a roll and got me into a few jams. When youre not logging hours playing youre sitting around gaming and these games arent cheap obviously)
It is around May now and my friend who messes with crypto tells me that Bitcoin is going to 10,000$. Its like 800$ at the time iirc. I own a couple from Ignition cashouts. I kind of trust him. I cant argue him on it as I have literally no mental fortitude on the subject, but I essentially shrug it off. I start watching the price on poloniex and am watching prices jump like crazy. Light bulb in head! I can buy the dips sell the peaks and have more BTC! Lets load the 2.5btc I have onto poloniex! Sell peak but it keeps climbing... “FUCK! gotta get it back before it goes to 10k! Whew. Still have 2.45 BTC. FUCK! Its dropping! Get it out before it goes to zero!”
Yea I turned that 2.5 BTC into .4 BTC. No joke. I think I ended up throwing it onto SWC and losing it once it was almost gone. I honestly forget. I had nothing when it finally hit 20k other than some shit alts worth about 800$ at most (worth 35$ now but they still reside in my locked poloniex account, maybe I will give poloniex my ID if they ever become worth more than 1k)
So I am now annoyed I didnt turn every free dollar I had into BTC. I didnt trust the guy enough and to be fair I would have been using the money I play with. Had I met the guy a year earlier (know what I know of him now) I would probably have just locked it all up and sat around waiting.
I never really get my act together in 2017. I continuously log just enough hours to get by. I just dont care. I just want a way out of this. I catch myself saying “I hate playing poker” and sometime around the end of 17 or early 2018 I start trying to censor myself and quit saying that. Saying it will only make it fester deeper. I have to retrain myself to love poker. I remember the days of playing 18-24 hours straight because I love playing. I love watching for everything I can find to get an edge. I love a situation to present itself where I can step out of line. But now I just sit down and count the minutes before I can tell myself “way to go! You put in an 8 hour shift lets pack it in!” I leave good games often times. I celebrate when games break. This is where I am mentally while I play. I cant break out of it.
Late in 2017 a close friend of mine passes away. Will call him J. He was the guy who gave me a place to stay after the shutdown in Joplin. I was still doing oxy and he never once touched the stuff knowing what has happened to me. He doesnt judge me, he is somewhat of an enabler I suppose. He just drinks does shitty coke sometimes and has a script of adderol and xanax. Literally never once does he do any with me (ive warned him xanax and opiates will kill you if you mix, which is likely part of the reason he never did it) He was a marginal poker player (relative to modern game, he was just good enough to beat the rake live but he had too many pit leaks) and took great pride in being my friend (I was the slayer in the area for years leading up to this, anyone considered the best in their area can relate, you just have the respect of the local poker community). One of my earlier live poker memories involved him. I am like 18 or 19 playing a 1-2 game at a small casino and he was there with a friend. They were the good players in the game at the time. They were having a few drinks eating nice food and laughing having a good time. I remember thinking that I want this lifestyle. Care free gambling fast paced lifestyle. I had told him this story years later and he just ate it up, constantly tried to get me to rebound, but as I have stated many many times in the last few of these I have basically waved my white flag and accepted the result of my fall.
Anyhow after living with him we always talk every few months at minimal and have something to eat when we see each other at the casino. He was somewhat disingenuous sounding he was so nice and honestly it got to a point it started rubbing me the wrong way. I still talk to him of course but less frequently. In December of 2017 I get a phone call from my friend who owns the restaurant and he is distraught. He has been at the hospital and J has passed away. The back story on this is he had gotten a phone call from old friend who was getting out of prison in Arizona with no where to go (a female). J being as nice a guy as he is drives the 20+ hours to get her and gives her a place to stay. Well shes a junky and actually convinces J to do opiates/heroin. He overdoses and dies. I hadnt talked to him in a few months. I regret it. Had I known I would have beaten him senseless and got him to quit before things actually get bad.
Going to his funeral hit me up side the head too. The way I started feeling he was disingenuous just got destroyed. I cant fathom as many people showing up to my funeral with as nice of things to say. I wrote something to say but opt out after a few people say everything I had written (except better). I regret not saying them anyways. I think I still have what I wrote tucked away with the card and his money clip that made its way to me. I stumbled across his casino players card in a box one day and it resides in my wallet ever since. This was the first close friend that has passed away in my life, knock on wood. It woke me up a bit and caused a lot of self reflection because I felt I had let him down. I lived a few miles from him and didnt drop in to see him, didnt stay in contact as well as I should have. All because I felt he was disingenuously nice when he was actually just nice, which is actually because I am a cynical hermit who hates social life these days. That was the real reason I didnt stay closer. Him being too nice was just my excuse to blow him off essentially.
Only other thing I can add is that chick he helped out didnt even go to his funeral and on top of that had tried to take his truck and clean his house out. Junkies are the worst. I was a junky but I proudly say I never robbed anyone or cost anyone anything other than emotional distress, which isnt much of a brag obviously.
2018 starts and I have been decreasing my methadone every week for about 3-4 months now. I am on a low dose. Makes sleeping at night hard (get restless legs and sneezy). So I am having a few drinks any time I am at the casino playing (still just two days a week for the most part) to help get through those late night sessions when its worn off and I feel crummy. I get down to 15mg then 10mg and in March of 2018 I get asked if I wanna work for a week with my crypto friend. His friend is setting up a farm with 500 miners and needs help. I agree. The pay is in excess of the work (in my opinion) at 3k and I have no expenses, but I dont argue obviously. Before we leave town I have to pick up my week of methadone (at 4mg now) and so I do that. I never take any of them, I have the box still. Never opened it. They remain at my apartment as a reminder, the box carrying the 6 doses and a stack of receipts for every 75$ week that I kept in the box, several years worth, at least 9-10k worth of receipts, and that shits CHEAP compared to oxy. So I am finally off of opiates. I take kratom still but its essentially non addictive in comparison. Ill cede that I am reliant on kratom but if it disappeared tomorrow I wouldnt panic, I would be fine.
So I fly to Denver with my friend and meet his friends half brother who was instructed to rent a box truck and the three of us were to drive from Denver to Washington carrying like half a million dollars worth of hardware. Its early March, the roads arent exactly great. Half brother of his friend rents a truck with no middle seat though. Its absolutely miserable. Whoever sat middle was sitting like a fem boy legs closed and knees up high from the drive shaft hump. It was un fucking real how uncomfortable the middle was. So like I stated the roads were not great, we drove on ice for 5-6 hours straight (while my crypto friend did about 30 minutes of it before I decided I value my life and banned him from driving, he was literally doing over 70 on this ice sheet when I checked the gauge. I forget what he said, I will fail to make it sound as good but he said that he is protected and can not die, if we wreck he wont get hurt because of some universe stipulation that protects him. He said we would get hurt but he wouldnt. *** Ok here is what he said.
“quantum immortality. if i die in this universe, my conciousness will shift to others where i am still alive”
He just couldnt assure us ours would.
I end up driving like 18 of the 24 (one shot) hours it took as letting crypto friend drive was out. We make it set up a farm over a couple days then we go to Vegas. Not only do we go to Vegas but we fly a private jet. Not only do we take a private jet but his buddy has all four of us our own room at the Bellagio for 5-6 days. I remember having a 4500$ win at Bellagios 500$ cap 2-5 game... ran pretty salty. I only remember one hand worth bringing up, but I closed action and called 400$ pre with 67o with 3 others all in. Just flop 77X and send me the money. (Was drinking, gamble gamble). I cold called that also, some fish had opened massive and a 300$ stack just ripped a 400$ stack rejammed and I had called out of bb knowing fish will call off his 400~. This is actually a leak I have in poker. I will go over it because it has history.
Dating back to online my biggest leak was playing vs short stacks. Everyones biggest leak obv (6m setting). There were a few min buyers on Carbon and I got to the point I put them in pre every time they opened my bb from button, so long as they opened 75%+ from button or close to it. This has carried with me live, if I can gamble 3-4 ways (4 specifically) I will basically do it any time its 100bb~ or less with about 40% of hands if I can close action safely. I am a bit of a degenerate in this sense. I will flip for 1k if I have 10k to my name. It mostly came as a way to loosen up tables (the flipping blind preflop) at my local casino with players who give action. I am pretty snug in general but I cant refuse a flip when it presents itself and I cant refuse a fun gamble with short stacks.
I spend the month in Vegas during WSOP and run absurdly bad. Lose every big pot I play it seems. Switch to PLO the last half of the month and go a week straight without tripling my buy in up at any point. Just insane. Looking back I play rather poorly in PLO. I have been spoiled with my PLO games back home (which have been dead for about a year) and could get away with playing 50% of hands and no one ever bet big draws or anything not the nuts basically. I didnt adjust at all is what the issue was. Was just a frustrating month.
So I return and take a stake from a friend. I barely play still. Same ole same ole.
The last thing I will cover for this section is an incident late in 2018. One of the girls who is the floor at my local casino takes kratom also, we talk about it a fair amount. She has some 10mg percocets (mini oxycontins essentially) she gives me two of them. I havent had one in several years. I have been off methadone for 6-8 months at the time. I am eager to feel what I felt all those years ago, having no tolerance. So I take them home even though I know I shouldnt.
I get home and take both of them. What transpires is almost depressing. It frustrates me to no end that I realized that I have no desire for these. It affirms that all the money I flushed wasnt about the high, it was about the not withdrawing. I basically stated this in an earlier post but this is the event that I learned this from. I dont even enjoy it. I just sink knowing that I gave my life away for these. I have never recovered thanks to pain killers. Never once after 2011 have I ever looked in the mirror and said “finally, I have finally recovered what I fucked off”.
I am going to finish this thread off on the next post most likely. It will likely be long and take me a while to compose as it will cover my current year, and put a bow on it. The story basically climaxes a couple posts back, these surely have slowly lost their luster but I will finish them anyways. Nothing exciting about hearing about a guy who can beat games but wont sit in the chair to do it. Its a bit more upbeat in 2019 though andd I feel my future is bright and redemption nears though. I dont think I would have written these if not for a change of mentality recently, so look forward to a positive summary next post.
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