Bitcoin: charting the life and times of a cryptocurrency ...

Investing when you don't trust [that] your own judgement [lines up with popular trends]

At 37, better a little late then never, I finally understand I need to invest my money. I've read advice that "if you have expertise in a field, why not use that to inform what companies you invest in?"
Here's the problem: as a tech geek / early adopter I tend to get the technical fundamentals right, but bet on the wrong horse every time. I zig just before the general population zags. I know this about myself, so it makes me question how I could trust myself to pick investments.
For example, I invested a lot of time, and some of my money, on a pre-Android Linux phone and learning how to develop for it. A few months later, the first iPhone came out. Right idea, wrong timing - I missed the mobile app developer bandwagon by being too early. Of course I could have pivoted to the new platform, but rode the sinking ship instead. Plus my tightwad (now ex-)wife at the time wouldn't stand for me putting $$$ on a different smartphone so soon after "wasting" $$$ on a dud.
In 2010 I thought Facebook was crazy to turn down a $24B offer from Microsoft. I predicted that people my age and younger would soon become disillusioned with the platform and might start leaving it in droves. I predicted FB would become and remain an irrelevant cesspool of sh!tposts and political memes. Plus you know, privacy concerns and all that. Well you all know how that turned out both in what did happen and how little long term effect it has had on FB's market value.
In 2009 (post crash) I supported / encouraged my (now ex-)wife at the time in buying our first house, because I envisioned that entities able to buy up properties for cash, such as (foreign) investment firms and rental companies were going to soon start out-competing individuals for houses on the market. I think I thought the concerning half of every trend over 2010-2020 was going to take place in 2009-2011. That didn't happen (then), and when we wanted to move the house failed to sell; she still lives in it.
I was aware of Bitcoin from early on. I could have easily mined it when it was still energy efficient to do so on a PC (and I had a collection of powerful PCs for the time), but I thought it was foolishness and didn't want any part of it.
It's like that episode of King of the Hill where Peggy figures out that by following Bill around as he shops and seeing what he buys she can know what to invest in because Bill is such an "everyman." Except in my case maybe you should pass on the things I pick for myself.
submitted by valdocs_user to investing [link] [comments]

"Swap" is Poised for Take-off


https://preview.redd.it/mnxeb74hk4j51.jpg?width=990&format=pjpg&auto=webp&s=32d152a7495971c10e1af12185abe5e77b61fd14

How popular is DeFi?
Link, known as the leader of the oracle machine, has increased by 305.19% for the past three months, with an investment return of 17,052%, climbing to the fifth spot in the cryptocurrency ranking list by market value in the short term;
Since its issuance, YFI, which has soared 350 times all the way, has attracted 630 million US dollars of investment in 5 days, and was even dubbed the next Bitcoin in this circle;
From Comp for lending, KNC and BAL, governance tokens for decentralized exchanges, to SNX which is a stable currency payment network, various governance tokens of the DeFi ecosystem have emerged in an endless stream, stirring the blood in the market.
Such a boom is not only reflected in the currency price, but also pushes the brand new DEX based on the AMM (automated market making) model an overnight hit. UniSwap, known as the next-generation casino, has surpassed the world's first-tier centralized exchanges such as Binance, OKex, and Huobi in user activity, daily trading volume, and daily turnover.
With the rapid rise of UniSwap, the DEX threat theory has once again triggered heated discussions among the media and communities in the blockchain industry.
DEX on the Rise
The success of UniSwap is by no means something accidental. As early as 2018 when centralized exchanges suffered the hacker theft one after another, Vitalik Buterin, founder of Ethereum, predicted that the future lay in decentralized exchanges and that Ethereum, by developing a "better" decentralized platform, could empower the cryptocurrency community to regain the dominance from the centralized cryptocurrency exchange.
To realize the decentralized concept of returning to users their asset ownership, geeks in the blockchain industry have made many attempts.
Kyber Network, Bancor, Balancer, 0X, Curvefi, etc. are all DEXs based on Ethereum blocks. For a long time, affected by the performance of Ethereum and cross-chain issues, these DEXs were once stagnant.
With the lessons learned from Ethereum DEX, newcomers to the DEX have focused on high performance, high TPS, and rich assets as the ultimate goal for product development.
Amid the DEX threat theory, major exchanges have deployed their own public chain DEX products in a response to their respective development strategies: Binance launched Binance DEX on its Binance Chain, and Bittrex Exchange unveiled Ethfinex on the Ethereum and EOSfinex on the EOS blockchain, two platforms where users can exchange for fiat currencies; last year, CoinEx officially launched CoinEx Chain, a public chain dedicated to decentralized transactions, followed by CoinEx DEX.
Since the birth of the DEX in the blockchain world, this field has never run out of competition.
By independent development or other’s advantage?
From 2017 when it was established to 2019 as it stabilized, DEX has witnessed its annual trading volume skyrocketing from less than US$5 million to over US$2.5 billion. As DeFi gains fame and grows rapidly, DEX has grown into the most popular source of money, attracting a flood of speculators. In the past month, the trading volume of the global cryptocurrency market DEX has exceeded US$ 4 billion, more than twice the figure across 2019.
In the past two years, despite the increasingly in-depth exploration in the DEX, the cross-chain issue remains a stumbling block in its development path. DEX will not outperform CEX in the trading experience until a cross-chain solution is worked out.
The concept of DeFi went viral in 2019. With the continuous improvement of the DeFi ecosystem, the current Ethereum blockchain has developed into a complete decentralized financial system, covering mortgage lending, interest from deposit, leveraged trading, token exchange, identity authentication, and other infrastructure essential to traditional financial systems.
In addition to the mouth-watering profit, the DeFi ecosystem has also brought along explosive growth in both the type and quantity of digital assets, making DEX a market favorite. Compared with the DEX dedicated to public chains, the Ethereum-based DEX has been equipped with more possible functions and thus become more attractive thanks to the comprehensive supplementary infrastructure on Ethereum.
This also presents DEX pioneers with new opportunities. Dubbed “Swap’s summer”, the summer of 2020 has seen a market rush in Swap development after UniSwap became a hit.
Miniswap, Justswap, and btswap are no more innovative than UniSwap according to their product structures and white papers.
By comparison, OneSwap has injected unique essence into its product design and governance model based on UniSwap's automated market making.
Upgraded UniSwap
OneSwap, which has a double mining model + order book, has received an investment of tens of millions from CoinEx even before the product is launched. It is known that OneSwap is jointly developed by a group of technology geeks who have engaged in the cryptocurrency community for many years. The project was initiated by a member of the team in an attempt to upgrade UniSwap after he experienced the convenient AMM enabled by UniSwap.
Without limit orders, users have to trade in the price set by the platform, which, however, compromised their experience. In addition, the lack of liquidity mining and transaction mining rewards cannot reduce the losses of liquidity providers caused by unilateral market conditions.
"DEX still has much room for perfection, and could even surpass CEX in trading experience"
The OneSwap development team always believes that UniSwap still has a long way to go before it becomes the strongest DEX in the DeFi ecosystem. They have endeavored to, relying on their abundant experience in exchange product development and digital currency trading, create the most powerful DEX product in the DeFi ecosystem based on smart contracts.
OneSwap is called the “upgraded UniSwap” in the community. By the combination of the Constant Product Market Maker (CPMM) model in the Uniswap project and the on-chain order book, it reduces restrictions on users’ trading, and, through its OneSwap Wallet, improves user interaction methods and further enhances their experience in trading and product usage.
OneSwap boasts one-click token issuance and listing essential to DEX. Unlike the listing review mechanism on Binance DEX, the setting of OneSwap is more consistent with the concept of decentralization. Anyone can put his or her good projects and ideas, if any, into practice through OneSwap without permission.
In terms of product design, OneSwap will add to its function menu the Candlestick chart, order form, and depth chart according to user habits, apart from limit orders. These functions will offer OneSwap users an experience as smooth, easy-to-use, and convenient as in the CEX.
A new source of money? A two-pronged platform with transaction mining + liquidity mining
To support on-chain governance, OneSwap will issue a ERC20 governance token called ONES. The total number of ONES remains constant at 100 million, 50% of which will be used as community funds to support the construction of the OneSwap ecosystem and 50% will be owned by the OneSwap team. Community funds can be applied for through on-chain governance. 5% of the part held by the team will be unlocked initially, and the rest will be unlocked at a rate of 5% every six months until all is unlocked after four and a half years.
After the OneSwap product was launched, the OneSwap team will take part of the initially unlocked tokens as airdrop rewards for the open beta. Then OneSwap will officially start liquidity mining and transaction mining, and the governance token ONES will also be simultaneously launched on centralized trading platforms across the world. The first round of mining activities will last for one month, and mining rewards are yet to be made public.
Liquidity mining is a popular way of obtaining governance tokens in the DeFi ecosystem. Well-known DeFi projects including COMP, Cure, and Banner have all enabled liquid mining.
Transaction mining could date back to 2018 when Fcoin grew popular.
The transaction mining model initiated by Fcoin in 2018 once set off a bull market that year, pushing many investors into financial freedom in the rush of transaction mining. In addition, transaction mining based on the DeFi ecosystem is still a blue ocean, which is not common in the current market. The success of OneSwap's double mining model, if possible, would surely start a craze in the cryptocurrency market.
The OneSwap team has not yet announced specific mining rules, but disclosed that it has developed the smart contract code. To ensure the product security, OneSwap will invite three well-known security agencies in the blockchain industry to audit the code and announce the auditing results in early September at the soonest.
Conclusion
DeFi did not rise to fame without reason in 2020. Such overnight popularity is an inevitable result of Ethereum's efforts to build a decentralized consensus mechanism and improve infrastructure in the past few years. Ethereum has almost become the only public chain in the DeFi circle and the only construction base for well-known DEX. If OneSwap succeeds, it means a huge breakthrough for both DeFi and Ethereum, and decentralization in its true sense is around the corner.
submitted by JuanJuanChan to defi [link] [comments]

48 next week, after a divorce starting from the bottom again. Is FIRE possible?

As the title says, my divorce came through about 2 weeks ago and I am starting from the bottom rung again. I haven't got any property, and my assets are limited. What prompted me to grab this with both hands is that around that time my eldest daughter gave birth to my first grandchild so it's helped me to focus on the future.
I currently live with my parents, as during the week I work away from home and have a rented property near my work. It's nearly 2 hours away from home so commuting isn't an option (plus the client pays an accommodation allowance so not all bad). I do plan to buy a house within the next 5 or so years so that's my short term goal but whilst I don't need to I'm building up my assets.
I've been earning average income for the past few years (about £33k). During my marriage I was very limited to what I could do money wise. The wife would rarely contribute to household expenses, and would spend rather than save. I tried to get better paying jobs, but security was preferred over higher income. What little money I had left over I tried to save, but more often than not had to liquidate any investments in order to pay for essentials - like a car repair or replacement washing machine etc. We rented, as neither of us were in a good enough place financially to get a mortgage.
Now, as I'm not having to answer to her and being free to do what I want (within reason, we have a 11 year old daughter) I'm in a job earning double what I got in my previous position. Although I'm a contractor, I'm needed for the length of the project which is at least the next 2 years so I'm taking advantage of the boost in income. And thankfully during the lockdown they still paid me, as it would cost too much to get a replacement in if I did leave. For the last year my priority was paying off debts, I still have some (about 10k) but much more manageable than they were this time last year. I could pay everything off in the next 6 months, but I think it's time I started preparing for the future. The way I see it, if I lost my job in a month I'd have no debts but limited or no resources to feed myself. But if I start following more of the FIRE philosophies I'll at least have covered expenses for a few months if the worst happened. I've been a follower of MMM for a few years, haven't always agreed with what he says on some subjects (Cryptocurrency for instance) but I feel I'm ready to start putting FIRE into practice.
The two things I'm looking to concentrate on right now are emergency expenses and investing. What I have in place right now is a Moneybox S&S ISA which I intend to use for emergency expenses. For those not familiar with Moneybox it rounds up the pennies for expenses in the bank account to whole pounds. As well as this I do a weekly top up and a payday top up. Approximately £150-200 per month, current value around £600. I also tried to invest in the FTSE 100 with the spare change I had, and used a Halifax Sharebuilder. I put in around £30 per month and each month picked a new share from the FTSE 100. I'm about £960 in and probably about a third of the way through the FTSE100. Thinking about it I should have invested in a tracker fund, but hey, it's been in place for a few years and it's made me put money aside so not all bad. Right now most of it is red, but I put that down to the current economic climate and I'm in it for the long haul so at the moment it doesn't matter.
I've dabbled in Cryptocurrency. I work in IT and I've always been very much of a geek, so it comes with the territory. Mostly proof of stake coins, but early in the process more 'traditional' proof of work coins such as Bitcoin and Litecoin. Somewhere I do have a few hundred Bitcoin but can I find the seed phrase I wrote down? If only I'd emailed it to myself! I'm a lot more organised these days, and probably hold £2500 in a mix of different coins. I monitor the price weekly and react if I see a trend but mostly leave this untouched.
I also have some premium bonds. Probably around £500. I only started collecting them last year, so far no winnings but again I'm in it for the long haul so I'm looking at the average returns. If it makes me my million then so be it, if it doesn't win anything at all then I'll revisit it but I see it as something I can quickly liquidate if I need the money.
If I had to liquidate everything tomorrow, I could probably support myself for 3 months. I want this to be at least 6 months, the end goal to cover potentially 30 or more years of retirement.
My budget does have some things I can't avoid, such as paying rent twice (a token amount at home but market rates for work, probably around 1000 in total). The accommodation allowance mentioned above is sufficient to cover the away from home element and more. There's feeding myself, a couple of streaming services and Xbox Live (essential for my mental health when in a 1 bed flat during the work week), car expenses (I have a Skoda Octavia and regularly exceed 50mpg, 70+ on A roads) and the finance and associated fuel and insurance costs for that, and some ad-hoc expenses as they arise such as clothing. Overall I could live on 60% of my salary, the more debt I pay off the better that gets. What's helped here is my obsession with Excel - I monitor everything. I go through bank transactions and enter every penny into a budget planner, so I know where I am. And those budget figures I use in YNAB to keep a day to day eye on how I'm doing, so far it's been quite accurate at predicting what's coming out and when.
I know it's going to be difficult, starting so late. But has anybody else been as late to the party as me, and if so how was it for you? Any tips? I'm happy to elaborate on any of the above if I need to.
submitted by dazza12 to FIREUK [link] [comments]

CPS (capricoin) to be the new king in defi!

CPS (capricoin) to be the new king in defi!

https://preview.redd.it/7ocji9v25ih51.jpg?width=732&format=pjpg&auto=webp&s=2805c69e1a1668b9dea7dfcbd297e210a9a1ef5f
With the recent popularity of the concept of defi, token in Ethereum ecology has gradually become an important asset category in cryptocurrency. In terms of the total amount of tokens, issuance, transaction time and transparency of smart contracts, these passes have both the characteristics of blockchain and the advantages provided by Ethereum, especially when Ethereum 2.0 is about to emerge. Ethereum erc20 protocol realizes "everyone can issue money", while DEX realizes "everyone can pay money".

It is needless to say that the prospect of defi decentralized finance is open, transparent and low threshold, which will reshape all aspects of traditional economic formats, so it is also known as "finance from the future". According to debank data, on August 12, the total market value of defi exceeded US $12 billion, while on August 10, the market value of defi just exceeded 10 billion, an increase of $2 billion or 20% in two days. In addition, the lock-in value of the defi ecosystem reached $5.5 billion, a record high.

https://preview.redd.it/t08ec7nf4ih51.jpg?width=600&format=pjpg&auto=webp&s=9cb2ee8292862762d6d8b47fe726a3c41f2eb572
In the current defi ecosystem, the main projects are basically focused on the decentralized lending of cryptocurrency, decentralized exchanges and other businesses, and there are few integrated service agreements based on decentralized finance. CPS (capricoin) ecological economy is a decentralized, private and democratic economy. If we design in a decentralized way, we believe that many departments will be improved and more efficient. Transaction costs can be greatly reduced, and the activities on the platform are more economical, more private and safer. In addition, the platform's defense against attacks is greatly improved. If you want to prevent attacks, you can shut down the network. CPS (capricoin) should break the Convention and become the breaker and leader of decentralized financial integration service agreement.

https://preview.redd.it/606kv77m4ih51.png?width=2111&format=png&auto=webp&s=31c4285984aab73c7a149084667e8c229509d8a0

CPS (capricoin) is the world's first distributed finance protocol based on blockchain, initiated by anonymous geek community. CPS is its token. Following bitcoin's steps, CPS (capricoin) advocates open source policy. Open source projects have a positive impact on sustainability because they support the principles of open communication, collaborative participation, peer review, rapid prototyping, transparency, elite management and community oriented development. It is these facilities that enable users and programmers to check, modify and consolidate the source code, and finally create it.
CPS (capricoin) will fully expand the target of defi and develop a new generation of decentralized digital finance technology. Based on the CPS (capricoin) ecology, we will create a decentralized financial aggregation platform, so as to help users achieve a full range of financial activities in the field of digital money and finance, and provide including but not limited to mining, lending, ABS, quantification, derivatives and other financial service agreements. By using smart contract and Oracle technology, CPS (Capricorn) distributed financial protocol has the advantages of faster transaction speed, higher security, lower threshold of participation and stronger decentralization attribute.

https://preview.redd.it/cmoc7x5q4ih51.png?width=1411&format=png&auto=webp&s=835ca495b0db56cb0af50fb6c50dc34944c2c425
In the future, CPS (capricoin) will make full use of and give full play to the advantages of blockchain decentralization, create a credit system that cannot be built by traditional financial system, expand the ecosystem of CPS (capricoin), and help more users with financial needs obtain more convenient financial services.

Not only defi, the ambition of CPS (capricoin) is to build a specific financial system, so as to combine the current digital currency with modern finance, establish a set of decentralized financial rules, and establish a communication channel between the existing physical finance and digital money finance.

https://preview.redd.it/59b67ohy4ih51.png?width=1418&format=png&auto=webp&s=80037177963f409e4490f9ed5d7bb62a239c6823
CPS (capricoin) believes that by establishing a complete set of autonomous financial system, realizing faster function iteration and upgrading with blockchain technology more in line with the future trend, and promoting more mature application and public chain development path, a new ecological transformation of decentralized finance is coming.
submitted by caipricoin to u/caipricoin [link] [comments]

The Retrospect and Prospect of the Crypto Economy——The Development and Evolution of the Consensus Mechanism (Three)

The Retrospect and Prospect of the Crypto Economy——The Development and Evolution of the Consensus Mechanism (Three)

https://preview.redd.it/45wwtygv2rc51.png?width=567&format=png&auto=webp&s=a5f51ea3c620d478231c39e32f198eb64d801897
Foreword
The consensus mechanism is one of the important elements of the blockchain and the core rule of the normal operation of the distributed ledger. It is mainly used to solve the trust problem between people and determine who is responsible for generating new blocks and maintaining the effective unification of the system in the blockchain system. Thus, it has become an everlasting research hot topic in blockchain.
This article starts with the concept and role of the consensus mechanism. First, it enables the reader to have a preliminary understanding of the consensus mechanism as a whole; then starting with the two armies and the Byzantine general problem, the evolution of the consensus mechanism is introduced in the order of the time when the consensus mechanism is proposed; Then, it briefly introduces the current mainstream consensus mechanism from three aspects of concept, working principle and representative project, and compares the advantages and disadvantages of the mainstream consensus mechanism; finally, it gives suggestions on how to choose a consensus mechanism for blockchain projects and pointed out the possibility of the future development of the consensus mechanism.
Contents
First, concept and function of the consensus mechanism
1.1 Concept: The core rules for the normal operation of distributed ledgers
1.2 Role: Solve the trust problem and decide the generation and maintenance of new blocks
1.2.1 Used to solve the trust problem between people
1.2.2 Used to decide who is responsible for generating new blocks and maintaining effective unity in the blockchain system
1.3 Mainstream model of consensus algorithm
Second, the origin of the consensus mechanism
2.1 The two armies and the Byzantine generals
2.1.1 The two armies problem
2.1.2 The Byzantine generals problem
2.2 Development history of consensus mechanism
2.2.1 Classification of consensus mechanism
2.2.2 Development frontier of consensus mechanism
Third, Common Consensus System
Fourth, Selection of consensus mechanism and summary of current situation
4.1 How to choose a consensus mechanism that suits you
4.1.1 Determine whether the final result is important
4.1.2 Determine how fast the application process needs to be
4.1.2 Determining the degree to which the application requires for decentralization
4.1.3 Determine whether the system can be terminated
4.1.4 Select a suitable consensus algorithm after weighing the advantages and disadvantages
4.2 Future development of consensus mechanism
Last lecture review: Chapter 1 Concept and Function of Consensus Mechanism plus Chapter 2 Origin of Consensus Mechanism
Last lecture review: Chapter 3 Common Consensus Mechanisms

Chapter 3 Common Consensus Mechanisms (Part 2)
Figure 6 Summary of relatively mainstream consensus mechanisms

https://preview.redd.it/2yepvjjy2rc51.png?width=567&format=png&auto=webp&s=acaed31fa6106ac2f501fe2cb284f66bb2258a0e
Source: Hasib Anwar, "Consensus Algorithms: The Root Of The Blockchain Technology"
The picture above shows 14 relatively mainstream consensus mechanisms summarized by a geek Hasib Anwar, including PoW (Proof of Work), PoS (Proof of Stake), DPoS (Delegated Proof of Stake), LPoS (Lease Proof of Stake), PoET ( Proof of Elapsed Time), PBFT (Practical Byzantine Fault Tolerance), SBFT (Simple Byzantine Fault Tolerance), DBFT (Delegated Byzantine Fault Tolerance), DAG (Directed Acyclic Graph), Proof-of-Activity (Proof of Activity), Proof-of- Importance (Proof of Importance), Proof-of-Capacity (Proof of Capacity), Proof-of-Burn ( Proof of Burn), Proof-of-Weight (Proof of Weight).
Next, we will mainly introduce and analyze the top ten consensus mechanisms of the current blockchain.
》DBFT
-Concept:
Delegated Byzantine fault tolerance. The improved Byzantine fault-tolerant algorithm makes it suitable for blockchain systems. The system consists of nodes, delegators (who can approve blocks), and speakers (who proposes the next block). It is a consensus algorithm that guarantees fault tolerance implemented inside the NEO blockchain.
-Principle:
In this mechanism, there are two participants: the professional bookkeeper "bookkeeping node" and the ordinary users in the system.
Ordinary users vote based on the proportion of holding stake to determine the bookkeeping node. When a consensus is required, a spokesperson is randomly selected from these bookkeeping nodes to draw up a plan, and then other bookkeeping nodes will vote basing on the Byzantine fault tolerance algorithm.That is, majority principle. If more than 66% of the nodes agree to the spokesperson’ plan, a consensus is reached; otherwise, the spokesperson is re-elected and the voting process is repeated.
-Representative application: Neo, etc.
》PoA
-Concept:
Proof of authority. That is, certified by some accredited accounts, these accredited accounts are called "validators". The software that the verifier runs that supports the verifier to place transactions in blocks.
-Principle:
Three conditions:
  1. The identity must be formally verified on the chain, and the information can be cross-verified in a publicly available domain;
  2. The qualifications must be difficult to obtain, so that the rights of the verification block obtained are precious enough;
  3. The authoritative inspection and procedures must be completely unified.
With PoA, every individual has the right to become a verifier, so there is an incentive to maintain the position of the verifier once acquired. By attaching a reputation to the identity, the verifier can be encouraged to maintain the transaction process. Because the verifier does not want to gain a negative reputation, it will lose its hard-won verifier status.
-Representative applications: VeChain, etc.
》DAG
-Concept:
Directed acyclic graph. Each newly added unit in the DAG is not only added to the long chain block, but added to all the previous blocks, verifying each new unit and confirming its parent unit and the parent unit of the parent unit, and gradually confirming until the genesis unit. As the hash of its parent unit is included in its own unit, the blockchains of all transactions are connected to each other to form a graph-like structure with time.
-Principle:
In the DAG network, each node can be a trader and a validator, because the transaction processing in DAG is done by the transaction node itself. Taking IOTA as an example, IOTA’s Tangle led
ger does not need to pay transaction fees while ensuring high-speed transaction processing. However, it does not mean that the transaction is free, because in this ledger, the initiation of each transaction needs to verify the other two random transactions first, and connect the transaction initiated by itself to these two transactions, so the responsibility that miners on the blockchain bear is distributed to all traders. The DAG method of processing transactions can be called asynchronous processing mode.
Figure 10 The difference between the traditional blockchain structure and the DAG structure

https://preview.redd.it/1xfssxj03rc51.png?width=553&format=png&auto=webp&s=95c382f81943c9a188a89ac6b2dadf64446589e6
-Representative applications: IOTA, etc.
》PoET
-Concept:
Proof of elapsed time. That is, it is usually used in a permissioned blockchain network. It can determine the mining rights of the block holders in the network. The permissioned blockchain network requires any prospective participants to verify their identity before joining. According to the principles of the fair lottery system, each node is equally likely to become the winner.
-Principle:
Each participating node in the network must wait for a randomly selected period, and the first node to complete the set waiting time will get a new block. Each node in the blockchain network will generate a random waiting time and sleep for a set time. The node that wakes up first, that is, the node with the shortest waiting time, wakes up and submits a new block to the blockchain, and then broadcasts the necessary information to the entire peer-to-peer network. The same process will be repeated to find the next block.
Two factors:
  1. Participating nodes will naturally select a random time in nature, rather than deliberately;
  2. The winner did complete the waiting time.
-Representative application: HyperLedger Sawtooth, etc.
》PoSV
-Concept:
Proof of stake velocity. Proposed by Reddcoin, drawing on the concept of "money circulation speed" in economics, it mainly allocates bookkeeping rights based on the coin age of nodes participating in the competition.
-Principle:
PoSV also allocates accounting rights according to the coin age of the nodes participating in the competition, but modifies the coin age calculation formula to a function of exponential decay of growth rate. Taking Reddcoin as an example, Reddcoin sets the half-life of the coin age growth rate to 1 month. Assuming that the unit token can accumulate 1CoinDay coin age on the first day, only 0.5CoinDay coin age can be accumulated on the 31st day, and only 0.25CoinDay coin age can be accumulated on the 61st day, and so on. In this way, the nodes are encouraged to use the token to conduct a transaction after holding the token for a period of time, thereby restarting the calculation of the coin age and increasing the circulation speed of the token in the network.
-Representative applications: Reddcoin, etc.
Table 2 Comparison of the advantages and disadvantages of current mainstream consensus mechanisms

https://preview.redd.it/kb04i7eh3rc51.png?width=1236&format=png&auto=webp&s=42de13bc99afaf258c0a740a6618e2d579b59100
Source: network resources
Chapter 4 Summary of the Selection and Status Quo of Consensus Mechanism
4.1 How to choose a consensus mechanism that suits you
Step 1: Determine whether the final result is important
For some applications, the end result is very important. If you are building a new payment system that can support very small amounts, it is acceptable for the transaction result to change. Similarly, if you are creating a new distributed social network, 100% guarantee that the status is updated immediately is not particularly necessary. On the contrary, if you are creating a new distributed protocol, the final result is critical to the user experience. For example, Bitcoin has a final confirmation time of about 1 hour, Ethereum has a final confirmation time of about 6 minutes, and Tendermint Core only has a final confirmation time of 1 second.
Step 2: Determine how fast the application process needs to be
If you are building a game, is it reasonable to wait 15 seconds before each action? Due to the low block processing time of Ethereum, games built on it will cause poor user experience due to Ethereum's throughput. However, the application for the transfer of housing property rights can be run on Ethereum. Use the Cosmos SDK to build an application that allows developers to freely use Tendermint Core. It has a short block processing time and high throughput, and is capable of processing 10,000 transactions per second. You can reduce the required communication overhead and speed up the application by setting the maximum number of validators for the application.
Step 3: Determine the application's demand for decentralization
Some applications such as games may not require very high censorship resistance as a by-product of decentralization. In theory, does it really matter that the validator can create a cartel in the game and reverse the transaction result for profit? If it is not important, a blockchain such as EOS may be more suitable for your needs because of the fast transaction speed and free fees. However, some applications such as autonomous banks are more powerful and decentralized. Although Ethereum is considered to be decentralized, some supporters claim that Ethereum's mining pool is an important part of centralized platform, although there are actually only 11 validators (mining pools). One of the major benefits of building your own blockchain instead of building on a smart contract platform is that you can customize the way the application completes verification. However, it is difficult to build your own blockchain, so the Cosmos SDK is very useful, you can easily build your own blockchain and customize the degree of decentralization you need.
Step 4: Determine whether the system can be terminated
If you are building a new application similar to a distributed ride-sharing service, then ensuring 24/7 service must be the first priority, even if there are occasional errors in accounting similar to transactions. One of the properties of Tendermint Core is that if there is a disagreement between network validators, the network will suspend operations instead of proceeding erroneous transactions. Applications such as decentralized exchanges require correctness at all costs-if there is a problem, it is far better to suspend trading on the decentralized exchange than there may be trading problems.
Summary: Choose a suitable consensus algorithm after weighing the advantages and disadvantages
All in all, there is no single best consensus algorithm. Each consensus algorithm has its own value and advantages. You need to have your own judgments and choices. However, by understanding the relevant processes of the consensus mechanism, including proposals and agreements, and establishing a framework to consider the types of consensus algorithms that your application may require, you should be able to make wiser decisions.
4.2 Future development of consensus mechanism
The consensus algorithm is one of the core elements of the blockchain. Although there are more than 30 consensus mechanisms listed in the article, there are still many niche consensus mechanisms that may not be discussed. As the blockchain technology is gradually known and accepted by the public, more and more newer and better consensus algorithms may appear in the future, which may be brand-new consensus algorithms, and more should be improvement and optimization version based on the current consensus algorithm.
After 2016 and 2017 years’ fast development, the current consensus algorithm does not have a recognized evaluation standard, but is generally more biased towards fairness and decentralization, as well as some technical related issues, such as energy consumption and scalability , Fault tolerance and security, etc. However, blockchain technology must be combined with requirements and application scenarios, and the consensus mechanism algorithm and incentive mechanism are inseparable. How to customize a suitable consensus mechanism according to the characteristics of your own project and optimize the current consensus mechanism will become the future direction of consensus mechanism development
CelesOS
As the first DPOW financial blockchain operating system, CelesOS adopts consensus mechanism 3.0 to break through the "impossible triangle", which can provide high TPS while also allowing for decentralization. Committed to creating a financial blockchain operating system that embraces supervision, providing services for financial institutions and the development of applications on the supervision chain, and formulating a role and consensus ecological supervision layer agreement for supervision.
The CelesOS team is dedicated to building a bridge between blockchain and regulatory agencies/financial industry. We believe that only blockchain technology that cooperates with regulators will have a real future. We believe in and contribute to achieving this goal.
📷Website
https://www.celesos.com/
📷 Telegram
https://t.me/celeschain
📷 Twitter
https://twitter.com/CelesChain
📷 Reddit
https://www.reddit.com/useCelesOS
📷 Medium
https://medium.com/@celesos
📷 Facebook
https://www.facebook.com/CelesOS1
📷 Youtube
https://www.youtube.com/channel/UC1Xsd8wU957D-R8RQVZPfGA
submitted by CelesOS to u/CelesOS [link] [comments]

Review and Prospect of Crypto Economy-Development and Evolution of Consensus Mechanism (2)

Review and Prospect of Crypto Economy-Development and Evolution of Consensus Mechanism (2)

https://preview.redd.it/a51zsja94db51.png?width=567&format=png&auto=webp&s=99e8080c9e9b1fb5e11cbd70f915f9cb37188f81
Foreword
The consensus mechanism is one of the important elements of the blockchain and the core rule of the normal operation of the distributed ledger. It is mainly used to solve the trust problem between people and determine who is responsible for generating new blocks and maintaining the effective unification of the system in the blockchain system. Thus, it has become an everlasting research hot topic in blockchain.
This article starts with the concept and role of the consensus mechanism. First, it enables the reader to have a preliminary understanding of the consensus mechanism as a whole; then starting with the two armies and the Byzantine general problem, the evolution of the consensus mechanism is introduced in the order of the time when the consensus mechanism is proposed; Then, it briefly introduces the current mainstream consensus mechanism from three aspects of concept, working principle and representative project, and compares the advantages and disadvantages of the mainstream consensus mechanism; finally, it gives suggestions on how to choose a consensus mechanism for blockchain projects and pointed out the possibility of the future development of the consensus mechanism.
Contents
First, concept and function of the consensus mechanism
1.1 Concept: The core rules for the normal operation of distributed ledgers
1.2 Role: Solve the trust problem and decide the generation and maintenance of new blocks
1.2.1 Used to solve the trust problem between people
1.2.2 Used to decide who is responsible for generating new blocks and maintaining effective unity in the blockchain system
1.3 Mainstream model of consensus algorithm
Second, the origin of the consensus mechanism
2.1 The two armies and the Byzantine generals
2.1.1 The two armies problem
2.1.2 The Byzantine generals problem
2.2 Development history of consensus mechanism
2.2.1 Classification of consensus mechanism
2.2.2 Development frontier of consensus mechanism
Third, Common Consensus System
Fourth, Selection of consensus mechanism and summary of current situation
4.1 How to choose a consensus mechanism that suits you
4.1.1 Determine whether the final result is important
4.1.2 Determine how fast the application process needs to be
4.1.2 Determining the degree to which the application requires for decentralization
4.1.3 Determine whether the system can be terminated
4.1.4 Select a suitable consensus algorithm after weighing the advantages and disadvantages
4.2 Future development of consensus mechanism
Last lecture review: Chapter 1 Concept and Function of Consensus Mechanism plus Chapter 2 Origin of Consensus Mechanism
Chapter 3 Common Consensus Mechanisms (Part 1)
Figure 6 Summary of relatively mainstream consensus mechanisms
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https://preview.redd.it/9r7q3xra4db51.png?width=567&format=png&auto=webp&s=bae5554a596feaac948fae22dffafee98c4318a7
Source: Hasib Anwar, "Consensus Algorithms: The Root Of The Blockchain Technology"
The picture above shows 14 relatively mainstream consensus mechanisms summarized by a geek Hasib Anwar, including PoW (Proof of Work), PoS (Proof of Stake), DPoS (Delegated Proof of Stake), LPoS (Lease Proof of Stake), PoET ( Proof of Elapsed Time), PBFT (Practical Byzantine Fault Tolerance), SBFT (Simple Byzantine Fault Tolerance), DBFT (Delegated Byzantine Fault Tolerance), DAG (Directed Acyclic Graph), Proof-of-Activity (Proof of Activity), Proof-of- Importance (Proof of Importance), Proof-of-Capacity (Proof of Capacity), Proof-of-Burn ( Proof of Burn), Proof-of-Weight (Proof of Weight).
Next, we will mainly introduce and analyze the top ten consensus mechanisms of the current blockchain.
》POW
-Concept:
Work proof mechanism. That is, the proof of work means that it takes a certain amount of computer time to confirm the work.
-Principle:
Figure 7 PoW work proof principle
📷
https://preview.redd.it/xupacdfc4db51.png?width=554&format=png&auto=webp&s=3b6994641f5890804d93dfed9ecfd29308c8e0cc
The PoW represented by Bitcoin uses the SHA-256 algorithm function, which is a 256-bit hash algorithm in the password hash function family:
Proof of work output = SHA256 (SHA256 (block header));
if (output of proof of work if (output of proof of work >= target value), change the random number, recursive i logic, continue to compare with the target value.
New difficulty value = old difficulty value* (time spent by last 2016 blocks /20160 minutes)
Target value = maximum target value / difficulty value
The maximum target value is a fixed number. If the last 2016 blocks took less than 20160 minutes, then this coefficient will be small, and the target value will be adjusted bigger, if not, the target value will be adjusted smaller. Bitcoin mining difficulty and block generation speed will be inversely proportional to the appropriate adjustment of block generation speed.
-Representative applications: BTC, etc.
》POS
-Concept:
Proof of stake. That is, a mechanism for reaching consensus based on the holding currency. The longer the currency is held, the greater the probability of getting a reward.
-Principle:
PoS implementation algorithm formula: hash(block_header) = Coin age calculation formula: coinage = number of coins * remaining usage time of coins
Among them, coinage means coin age, which means that the older the coin age, the easier it is to get answers. The calculation of the coin age is obtained by multiplying the coins owned by the miner by the remaining usage time of each coin, which also means that the more coins you have, the easier it is to get answers. In this way, pos solves the problem of wasting resources in pow, and miners cannot own 51% coins from the entire network, so it also solves the problem of 51% attacks.
-Representative applications: ETH, etc.
》DPoS
-Concept:
Delegated proof of stake. That is, currency holding investors select super nodes by voting to operate the entire network , similar to the people's congress system.
-Principle:
The DPOS algorithm is divided into two parts. Elect a group of block producers and schedule production.
Election: Only permanent nodes with the right to be elected can be elected, and ultimately only the top N witnesses can be elected. These N individuals must obtain more than 50% of the votes to be successfully elected. In addition, this list will be re-elected at regular intervals.
Scheduled production: Under normal circumstances, block producers take turns to generate a block every 3 seconds. Assuming that no producer misses his order, then the chain they produce is bound to be the longest chain. When a witness produces a block, a block needs to be generated every 2s. If the specified time is exceeded, the current witness will lose the right to produce and the right will be transferred to the next witness. Then the witness is not only unpaid, but also may lose his identity.
-Representative applications: EOS, etc.
》DPoW
-Concept:
Delayed proof of work. A new-generation consensus mechanism based on PoB and DPoS. Miners use their own computing power, through the hash algorithm, and finally prove their work, get the corresponding wood, wood is not tradable. After the wood has accumulated to a certain amount, you can go to the burning site to burn the wood. This can achieve a balance between computing power and mining rights.
-Principle:
In the DPoW-based blockchain, miners are no longer rewarded tokens, but "wood" that can be burned, burning wood. Miners use their own computing power, through the hash algorithm, and finally prove their work, get the corresponding wood, wood is not tradable. After the wood has accumulated to a certain amount, you can go to the burning site to burn the wood. Through a set of algorithms, people who burn more wood or BP or a group of BP can obtain the right to generate blocks in the next event segment, and get rewards (tokens) after successful block generation. Since more than one person may burn wood in a time period, the probability of producing blocks in the next time period is determined by the amount of wood burned by oneself. The more it is burned, the higher the probability of obtaining block rights in the next period.
Two node types: notary node and normal node.
The 64 notary nodes are elected by the stakeholders of the dPoW blockchain, and the notarized confirmed blocks can be added from the dPoW blockchain to the attached PoW blockchain. Once a block is added, the hash value of the block will be added to the Bitcoin transaction signed by 33 notary nodes, and a hash will be created to the dPow block record of the Bitcoin blockchain. This record has been notarized by most notary nodes in the network. In order to avoid wars on mining between notary nodes, and thereby reduce the efficiency of the network, Komodo designed a mining method that uses a polling mechanism. This method has two operating modes. In the "No Notary" (No Notary) mode, all network nodes can participate in mining, which is similar to the traditional PoW consensus mechanism. In the "Notaries Active" mode, network notaries use a significantly reduced network difficulty rate to mine. In the "Notary Public Activation" mode, each notary public is allowed to mine a block with its current difficulty, while other notary public nodes must use 10 times the difficulty of mining, and all normal nodes use 100 times the difficulty of the notary public node.
Figure 8 DPoW operation process without a notary node
📷
https://preview.redd.it/3yuzpemd4db51.png?width=500&format=png&auto=webp&s=f3bc2a1c97b13cb861414d3eb23a312b42ea6547
-Representative applications: CelesOS, Komodo, etc.
CelesOS Research Institute丨DPoW consensus mechanism-combustible mining and voting
》PBFT
-Concept:
Practical Byzantine fault tolerance algorithm. That is, the complexity of the algorithm is reduced from exponential to polynomial level, making the Byzantine fault-tolerant algorithm feasible in practical system applications.
-Principle:
Figure 9 PBFT algorithm principle
📷
https://preview.redd.it/8as7rgre4db51.png?width=567&format=png&auto=webp&s=372be730af428f991375146efedd5315926af1ca
First, the client sends a request to the master node to call the service operation, and then the master node broadcasts other copies of the request. All copies execute the request and send the result back to the client. The client needs to wait for f+1 different replica nodes to return the same result as the final result of the entire operation.
Two qualifications: 1. All nodes must be deterministic. That is to say, the results of the operation must be the same under the same conditions and parameters. 2. All nodes must start from the same status. Under these two limited qualifications, even if there are failed replica nodes, the PBFT algorithm agrees on the total order of execution of all non-failed replica nodes, thereby ensuring security.
-Representative applications: Tendermint Consensus, etc.
Next Lecture: Chapter 3 Common Consensus Mechanisms (Part 2) + Chapter 4 Consensus Mechanism Selection and Status Summary
CelesOS
As the first DPOW financial blockchain operating system, CelesOS adopts consensus mechanism 3.0 to break through the "impossible triangle", which can provide high TPS while also allowing for decentralization. Committed to creating a financial blockchain operating system that embraces supervision, providing services for financial institutions and the development of applications on the supervision chain, and formulating a role and consensus ecological supervision layer agreement for supervision.
The CelesOS team is dedicated to building a bridge between blockchain and regulatory agencies/financial industry. We believe that only blockchain technology that cooperates with regulators will have a real future. We believe in and contribute to achieving this goal.

📷Website
https://www.celesos.com/
📷 Telegram
https://t.me/celeschain
📷 Twitter
https://twitter.com/CelesChain
📷 Reddit
https://www.reddit.com/useCelesOS
📷 Medium
https://medium.com/@celesos
📷 Facebook
https://www.facebook.com/CelesOS1
📷 Youtube
https://www.youtube.com/channel/UC1Xsd8wU957D-R8RQVZPfGA
submitted by CelesOS to u/CelesOS [link] [comments]

Bitcoin

A lot of people talk about how Bitcoin will possibly reach mainstream adoption. While this is ideal, it likely won't happen in the way we visualize it.
Bitcoin's greatest strengths and key selling point is not very popular - that is, the idea of financial self-sovereignty, protection against inflation, security without third parties, and so on. Gold has had many of these properties for years, but gold bugs are somewhat rare in economic circles and certainly rare among mainstream.
It is too idealistic to believe that the mainstream will become "educated" and "financially literate" and therefore, adopt Bitcoin. That's not how the mainstream operates. They operate more like a fickle customer, following trends and only being concerned with short-term hits of dopamine that comes from things like a fast shopping experience, or a fast rise in an investment.
If Bitcoin remains how it has been for the last 10 years, it simply doesn't have enough flash to attract the mainstream. But perhaps, that is perfectly fine. Because Bitcoin can become ubiquitous without anyone in mainstream knowing what it is or how it works, much like TCP/IP or the Internet itself is simply "there" while the mainstream enjoys the results of the framework.
The way the Internet developed, was that a very, very, very small number of highly enthusiastic geeks decided to build something useful and interesting. They didn't spend a lot of time questioning, "how will we make the Internet accessible to the mainstream?" Rather, they knew that if the system was built on a solid foundation, good engineering principles, with scalability, security, and efficiency in mind, that it would naturally attract success if they did things right. Usability was not a concern, at least in the early phases.
It didn't matter that it required a ton of commands, scripts, complicated tools to make this "Internet" contraption work from their garage. Nobody knew what the hell it was, or how it worked, or why they would someday need it. They just knew the geeks were working on something.
Usability really came in once the businesses got involved, and started to streamline the "Internet". In fact, they adopted it so fast that the standards groups and geeks were not able to keep up with their desire to grow on top of the Internet. This created problems, where the technology wasn't ready for scale. For example, JavaScript was never meant to be a full-fledged application language for the client-side in browsers, but websites simply kept getting more and more complex. JavaScript standards have caught up to some degree, and browsers are more powerful, but it's still fundamentally something that could be far more efficient if it was designed from the ground up. Some concepts exist that could replace JavaScript such as Web Assembler but so far I haven't seen any really catch on or ready to overtake JavaScript.
The point is, Bitcoin will likely never be "mainstream" in the sense that everyone knows what it is or how it works. But, it will simply be the framework for financial transactions over the internet. The average user may never need to know that a system is using TCP/IP, or HTTPS, or BTC. It's simply a technology that makes good things happen for them, and that's enough.
The most mature, and secure Layer 1 is BTC. The most mature, and secure Layer 2 is BTC with Lightning Network. As we continue to build the standard, competing standards such as alt-coins, will continue to stick around. But eventually, it won't make sense for higher level platforms to adopt so many different root systems. In the beginning perhaps, it does make sense to support multiple platforms, but ultimately, communication standards should converge to make it easier for everyone. Otherwise, what is the point of a "standard" if there are so many of them? We only need one, and it makes things effective without any downside.
Is it possible for a sudden shift in underlying technology as the basis becomes something other than BTC? Yes, it is, but highly unlikely. At this point, it's not even worth considering because the distance between #1 and #2 is widening every day.
And it's important to understand, what "distance" are we talking about? Is it the "market cap"?
No.
Definitely NOT market cap.
What makes a technology like the internet the standard, is the adoption of platforms building on top of it. The fact that Lightning Network is primarily growing the fastest on Bitcoin is extremely significant. And, many platforms are building on Lightning Network itself, as a 3rd layer. Market cap, total value, is actually quite meaningless in this aspect. You could say "PayPal" and "Venmo" and "Apple Pay" all have far more value behind it because these businesses are huge. But these are not really comparable because they are not designed to be open platforms. Just like, "AOL" was huge back in the 90s, it was not the open Internet that we see today.
Java was once an extremely proprietary language, but they soon realized that by keeping it closed, nobody would build on it. Ultimately, now people can write Java programs without an official license, which blossomed into a ton of Java applications and kept Java alive. If it remained closed, it would likely be a forgotten relic of the past. Many people would have kept building on Java if they had no other choice, but slowly, there were more better and more open choices available.
Today, PayPal and the fiat currency are platforms that have a monopoly on transactions, but slowly, it's becoming clear to 2nd and 3rd layer applications that there is an advantage to using Bitcoin. And a new, open platform is better than the closed platforms.
It's important to separate the adoption of technology from the adoption of Bitcoin as use as "direct cash replacement" and as use as "store-of-value". Both are great, but what is really going to change the world, is the way Bitcoin is currently building a new type of financial "Internet". An actual, usable, stable communication protocol for how to transmit value without closed platforms.
In the beginning, we had many internet systems such as Gopher and Usenet and FTP and others, but for certain, it was HTTP and the World-Wide-Web that really became the "must-have" protocol for everyone. And HTTP is now probably used more for Email (Web-based), Group Chat (Discord/Slack), and File Transfers (cloud storage) than any of the individual protocols that existed. There is a convenience in dealing with one protocol. Bitcoin is likely to be that one protocol, because it's the easiest and more secure. Altcoins are interesting, but they are wild experiments at best. They may have some obscure use here or there, but we know that all else being equal, mass adoption will prefer to simplify. And simplifying all applications to be built on Bitcoin, rather than against Bitcoin, will likely be preferred by most serious platforms.
So don't worry if your friends arn't using Bitcoin to go shopping or that the mainstream just doesn't seem educated enough to understand it. They don't need to. Bitcoin will win because people will adopt the most efficient, reliable technology. People didn't understand how cars worked, but they were way faster than dealing with a horse pulling a buggy. People adopted it because the technology was good. Until people just use cars now as "common sense" transportation.
Closed systems like PayPal and Apple Pay will eventually die. Like AOL and Compuserve and all the thousands of other closed, proprietary, commercial systems that required permission or license or registration. At one point, AOL looked unstoppable. Everyone was on it. You would never have thought they would die. But they were unstoppable, until they wern't. And nobody blinked an eye. Someday, PayPal will be a relic of the past, as will Visa, MasterCard, and fiat currency. And it will feel so obvious that everyone switched to money that was technologically superior and open to everybody, that nobody will blink an eye.
submitted by 1anon2ABji2ciXyeyVsj to u/1anon2ABji2ciXyeyVsj [link] [comments]

The price of a Satoshi never changes. (coingeek conference subject)

It would take pages and pages to cover this topic but I am going to keep it real simple and just make a few statements that should point to why the statement made by the guest at the coin-geek conference is wrong. The economist said that to work as money you need to lock the price of bitcoin. He is correct in theory, but he didn't understand the following realities.
  1. As the network grows fees should go down.
  2. at full scale fees should be very low
  3. What is the lowest possible fee??
    1. One satoshi is the lowest possible fee, there is no smaller amount of money
  4. What is the value or utility of this one satoshi??
    1. The value is the ability to post one item on the ledger to either pay the fee or act as the anchor for an asset attached to that Satoshi.
It's hard to think of the world without money, so try to imagine the world with no dollars and only valued in gold. That is sort of easy. Now imagine the whole world valued in the ability to watch one movie. Harder, but possible. No imagine the world valued in "posting one item to the ledger".
When you value the whole world and all of it's assets in the value terms of "posting one item to the ledger" then you start to see that the value of the satoshi doesn't change. It is the same now as it will be in 1,000 years.
The value actuality is the ability to post one thing on the ledger, and I say this having fast forwarded to a point in time where the network has already expanded to near full adoption and reached a balance point.
In order to have a good money the money can't be a part of the economy it tries to represent. How can gold be compared to circuit boards when it takes gold to make circuit boards?? The value becomes circular. (a point made by the guest)
My thesis is that the value of bitcoin doesn't change, it's the rest of the things in the economy getting cheaper when compared to the only thing that matter, the ability to post to the ledger.
Posting to the ledger is such an important power, and this ledger increases trust and reduces bad actors so much that everything just gets cheaper. The utility of dollars when compared to this ledger is laughable, so dollars may go down in value when compared to the ability to post to the ledger.

One post to the ledger is worth one post to the ledger, and always will be worth one post to the ledger.

To fully understand how the world will work if this network takes over you simply need to price everything compared to the one thing that matters....... the ability to post to the ledger. Without the ability to post to the ledger you are cut off from trade, and to be cut off from trade hurts.

This value doesn't change, only the peoples perception changes. What people will trade for access to the ledger will be more and more but this is not the value of one post to the ledger going up, this is the value of other things dropping. Cooperation makes all things cheaper and this ledger is the most massive cooperation ever imagined. A new age of cooperation is about to begin.

One post to the ledger will always be worth one post to the ledger, and in a world where everything is valued as "posts to the ledger" this value can't change. The smallest expense possible is one satoshi and this one satoshi can represent anything, and that power is just as valuable now as it will be in 1,000 years. The only difference is that in 1,000 years people will be willing to trade a lot more for that ability because everything we consume will get orders of magnitude cheaper when compared to "a post to the ledger".

Sure it's a mind game, but a fun one to think through. Maybe a post to the ledger is the new measuring stick to value the rest of the world in. Once you make that leap you see that the price of a satoshi never changes.
submitted by Jdamb to bitcoincashSV [link] [comments]

some days I hate existing (life situation vent)

sorry if this is a downer post, but I literally had to find and join this sub-reddit just to be able to get some shit off my chest from today and life as a whole right at the moment... thank you for having this Reddit exist, first and foremost, because life sucks for me lately, in general, and for a good number of years, and I am having one hell of a bad day and just need to get this shit off my chest before I have a meltdown. so thank you for whomever created this sub-reddit.

anywho... hey, how's it going, my name is Mike IRL, but I just go by the name High Voltage online, I am a furry, and to use a short and to the point name everyone calls me anymore, I'm just gonna say Hey, I'm volt.

anyways... I'm an autistic furry, I love life...usually...but as of these last handful of years, life has just been one hell of a suck fest. I am a computer geek, self taught, by nature, passion, and habit, I love technology, but the more I learn, the more I realize Murphy is a vindictive bitch. Murphy in this case is Murphy's law, and me and that little shithead have a love hate relationship... I love technology, he loves to make technology hate my guts, and the more I learn about shit, the more I can tell just how much shit goes wrong in ways that are uncommon for me, and for general life. I have friends in the tech industry, that all unanimously agree, and I quote them all here "how the FUCK do you have so many things go wrong?!" this includes a friend who works for dell as a storage expert, a friend that's a tech support call center representative, and a plethora more friends that are just over all tech heads. one point I need to get off my chest.

another thing, is that for the life of me, for the last 10 years since graduation from high school, nothing I do is allowing me to get my ass in a tech job, no amount of experience personally taught, no amount of tech certifications make any difference, nothings helping and I've had to jump from one dead end job to another, just to be able to even afford to survive, and hell, that's a joke in and of itself, cause I cant even afford to be alive, and live, I am barely scraping by, ever, and am forced to live with my parents because I cant even afford subsidized housing, section 8 or otherwise.

per my autism and other issues, I have to take prescriptions just to function in society, which on their own, cost more than I have ever made in a month at any job I've ever had to date, given they are around 8k a month without insurance.

on the comment of insurance, I have to use medicaid/medicare just to be able to afford to be alive, which in turn makes me have an income limit per month, so I cant ever make more than about 1 thousand dollars in a month, making my whopping glorious yearly income, four thousand dollars a year less than poverty, which is classified here in my state as 16 thousand dollars a year.

usually this does not bother me and I'm able to maintain a fairly positive outlook on life, plus or minus my usual depression...and I don't usually let things bug me, and have made in my opinion, a name for myself as being generous, and donating money whenever I'm able to to those less fortunate than myself, countless times I've helped keep friends of mine online whom I have never actually met, and hold credible for being in the situations they claim to be at face value because I trust people and I'm a compassionate person... I have been told so many times by my parents that I'm too trusting, that I have literally lost count...

I have even been scolded by my father once for, and I quote, "your not an entrepreneur, strive for mediocrity!" while a friend of mine was at my house in the basement waiting on me, when my father found out, while I still had my income cap, BEFORE government regulations happened, regulating bitcoin as a taxable asset (I have since gotten out of the bitcoin game for a few years now and it served its purpose while it lasted)

but all of these things are normally manageable on their own in stride.... the thing that's finally just caused me to have enough at this point is the fact that I just realized how truly shitty my current discovery is right now....

more on that one in a moment however...

the one thing that I have always been proud of is this, the fact that I am self taught for all of my computer experience that I have amassed to date, including but not limited to having to be resourceful on finding good deals, given that I found and paid for myself on my measly income, all of the servers that I have to date at my ownership, all found through scrounging for deals, on Facebook marketplace, and driving literally half the entire state of Ohio one way trip to find a deal for a thing I'm after, I have HAD to be resourceful for everything, because I had nothing for income... this includes having to plan and build my own data server using second hand parts, whenever possible, and I have not had any regrets on that, because it has allowed me to get still working systems for damn good prices... so I have never, until today, regretted that... because it has always been mine, built with pride, pride that I found good deals on things, that still worked, and still had usefulness to someone (me) and gave these devices a second lease on life, for good prices, and it was something I did myself, through sheer determination, patience (something I severely lack, and the entire reason I fish for catfish when me and my folks go fishing), and resourcefulness.

welp....honestly, at this point, I don't know what the hell to do now, because out of all of the drives that I have tested so far that this thing uses, after having lost unimaginable quantities of priceless memories that I can never get back, thousands and thousands of dollars in software I cant get back (one of many failures of the storage server, and mistakenly purged gmail emails, leaving zero traces of the software and no ability to discover what it was to try and recover it anymore) and numerous personal memories in the ways of family photos lost among so much more...

of all the drives in this system, over half of them now are saying they are IMMINENT failure, and all of them, every single one of them, is either pre-fail or old age, and given that I have always HAD to buy second hand used and abused storage off of ebay, its no surprise that this has become the case.....normally I'd say "oh well, sucks, gonna have to save up and buy new drive replacements again" in the form of more used drives.....but now, the icing on the cake here, and why I'm at my point of typing up this entire post? I am one of the people that lost their jobs due to this whole pandemic....so....I literally have no way what so ever, to even try and replace these drives...and now I am left with an empty feeling in the pit of my stomach, and an epic oncoming depression fit.

bonus fun points to the fact that I do my damnedest to never ask for funding help for anything in my life ever, given that its the mindset of "my projects, my fun times, my money, nobody else should /HAVE/ to help me given this is MY fun stuff" and the few times I ever ask anyone for help, everyone always jumps down my throat, friends wise, saying how greedy I am as a person to ever ask for funding help for MY stuff, and "what will I get out of it? nothing? then why the fuck should I want to help YOU if I don't get anything from it?" so I always tend to not WANT to ask for help, EVER, given this is how I get treated when I do, and then the few times that I genuinely feel like I need to, after always having that mindset of being a burden to the world, and a nuisance to my friends, when I finally get up the nerve to fucking do so and make a gofundme out of sheer necessity...out of all of the times I have done so, over the years, I literally can count on one single hand, the number of times anybody has ACTUALLY helped me....and I get it, it does not effect them at all, and its their money, trust me I get it, but when I DO actually need help, I never get it... this is one of those times I need help...and I wont get it, and I truly understand that, especially now with this pandemic and so many people being out of their jobs and or scared of losing their jobs, I understand that, I wouldn't be able to now even if I wanted to anyways, but it just fucking sucks... always going so far out of my way to help others when I'm able to, and then life always being such a fucking bitch like this to me.

*sighs heavily* anyways....sorry for the vent, but I fucking needed to bitch and moan somewhat today...god knows I've been forced to try and bottle it up for far too fucking long, because everyone's been tired of my bitching, even though I tend to only do so, to enough of a degree to keep my head afloat as needed.

just for shits and giggles, I'll post a link to the hard drive reports, just to share what I am forced to work with because its all I can afford...not that I have any problems with it mind you, if it works, and I can afford it, then that's what I'll take any fucking day of the week, given its a means to an end.
https://drive.google.com/drive/folders/1gK7EGCU9fX9lcC1G4to2ZwbvNA8cBVQM?usp=sharing
anyways...as usual, I've made my gofundme, and as usual, I know what to expect...nothing...but whatever. such is life.
submitted by mapmd1234 to Vent [link] [comments]

Monero, the Most Private Cryptocurrency

Monero, the Most Private Cryptocurrency
Written by the CoinEx Institution, this series of jocular and easy to understand articles will show you everything you need to know about major cryptocurrencies, making you fully prepared before jumping into crypto!

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Monero, or XMR for short, is an open-source cryptocurrency that is safe, reliable, private, and untraceable. It can run on Windows, Mac, Linux, and FreeBSD, and is known as one of the most private cryptocurrencies. In 2018, Monero already ranked 10th in terms of trading volume, with its market value beyond 1 billion US dollars, an evidence for its great fame in this field.
By a special method in cryptography, Monero ensures that all transactions remain 100% irrelevant and untraceable. Perhaps after reading this article, you will understand why it is so special and popular in the increasingly transparent and traceable cryptocurrency circle (After all privacy comes first!).
In fact, many large cryptocurrencies in the world are not anonymous. All transactions on Bitcoin and Ethereum are made public and traceable, which means that anyone can eavesdrop on transactions flowing into and out of the wallet. That has given rise to a new type of cryptocurrency called “privacy currency”! These “privacy currencies” hide encrypted transactions by adopting specific types of passwords. One typical example is Monero, one of the largest privacy cryptocurrencies in the world.
Monero was created on April 18, 2014 under the name BitMonero, literally the combination of Bit (Bitcoin) and Monero (the “coin” in Esperanto). In five days, the community decided to change its name to Monero.
Interestingly, Monero’s creators valued personal privacy and tried to behave in a low-key manner with pseudonyms instead of the real names. It is said that the Monero major contributor’s nickname is “thankful for today”, yet this guy has gradually disappeared from public view as Monero developed day by day.
Unlike many cryptocurrencies derived from BTC, Monero is based on the CryptoNote protocol. It is also the first branch based on the Bytecoin of CryptoNote currency. Here is some information about Bytecoin: BCN, for short, is a decentralized cryptocurrency with a high degree of privacy; it has open-source codes that allow everyone to contribute to the development of the Bytecoin network; and the Bytecoin network provides global users with instant private transactions that are not traceable and at no additional cost.
Yet, as a branch of BCN, Monero outshines its parent in reputation by being different in two ways. First, Monero’s target block time was reduced from 120 seconds to 60 seconds; second, the issuance speed was cut by 50% (which reverted to 120-second residence later, with the issuance time maintained and the reward for each new block doubled). By the way, during the fork, the Monero developers also found a lot of low-quality codes and then refactored them. (That is exactly what geeks will do)
Monero’s modular code structure was also highly appreciated by Wladimir J. van der Laan, one of the core maintainers of Bitcoin.
Monero values privacy, decentralization and scalability, and there are significant algorithm differences in blockchain fuzzification, which sets it apart from its peers. How private is it? Here are more details.
1. Safe and reliable
For a decentralized cryptocurrency, decentralization means that its network is operated by users; transactions are confirmed by decentralized consensus and then recorded on the blockchain irrevocably. Monero needs no third party to guarantee the safety of funds;
2. Privacy protection
Monero confuses all transaction sources, amounts, and recipients through ring signatures, ring confidential transactions, and invisible addresses. Apart from all the advantages of a decentralized cryptocurrency, it is by no means inferior in safeguarding privacy;
3. Unable to track
The sender, the receiver and the transaction amount of all Monero transactions must be anonymous by default. The information on the Monero Blockchain cannot be matched with physical individuals or specific users, so there is no trace to track;
4. Scalable
Everyone knows that Bitcoin’sability to process transactions has always been limited by the scalability issue; as we have mentioned before in the introduction of Bitcoin, the block size of 1MB makes things difficult. But Monero’s developers have created a system that allows the network to process more transactions when needed; what’s more, Monero does not have any “pre-set” restrictions on block size.
Of course, this also means that some malicious miners may block the system with large blocks. To prevent this from happening, Monero has worked out countermeasures: the block reward penalty of the system.
On October 18, 2018, Monero’s latest hard fork changed the consensus mechanism algorithm to CrypotoNight V8. In this hard fork, it introduced the BulletProff bulletproof protocol, which can also effectively reduce the transaction fee of miners without disclosing transactions
It is said that Monero will issue about 18.4 million XMR in around 8 years. Moreover, it eclipses its counterparts in distribution — with no pre-mining or pre-sale, all block rewards will be left to miners by means of the POW mechanism.
Here is the reward scheme of Monero in two stages:
  1. Acceleration: mine 18132000 XMR before May 2022;
  2. Deceleration: Deceleration starts right after 18132000 XMR are mined, and there will be a reward of 0.6XMR for each block mined afterwards. In this way, the overall supply will be kept on a small scale and decelerated.
Monero is also excellent in its development concept that is designed to be anti-ASIC from the very beginning. Here is a brief introduction to ASIC (Special Application Integrated Circuit).
Due to the specificity of ASICs, specially designed ASICs can usually have much higher hashrate than general CPUs, GPUs, and even FPGAs — that makes hashrate excessively centralized and makes it vulnerable to the monopoly of single centralized institutions. Yet the cryptonight algorithm used by Monero allows most CPUs and even FPGAs to get involved and get mining rewards, instead of making GPU the only one that can efficiently mine.
In other words, Monero’s core development team will modify the consensus mechanism algorithm and have a hard fork after some time to ensure its strength against ASIC and the monopoly of hashrate.
However, although Monero has been designed against ASICs to avoid centralization, nearly 43% of its hashrate is still owned by 3 mining pools; in addition, it is not a BTC-based currency, making it even harder to introduce some elements. Of course, Monero is not that newbie-friendly, and thus has not been widely accepted.
Yet each cryptocurrency has its own features. As long as Monero keeps improving its privacy, it will definitely attract increasing followers. If you are interested in Monero, welcome to CoinEx for exchange or trade.

About CoinEx

As a global and professional cryptocurrency exchange service provider, CoinEx was founded in December 2017 with Bitmain-led investment and has obtained a legal license in Estonia. It is a subsidiary brand of the ViaBTC Group, which owns the fifth largest BTC mining pool, which is also the largest of BCH mining, in the world.
CoinEx supports perpetual contract, spot, margin trading and other derivatives trading, and its service reaches global users in nearly 100 countries/regions with various languages available, such as Chinese, English, Korean and Russian.
Website: https://www.coinex.com/
Twitter: https://twitter.com/coinexcom
Telegram: https://t.me/CoinExOfficialENG
Click here to register on CoinEx!
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White Paper, Miner, Pizza … | "Old Objects" in the Cryptocurrency Museum

White Paper, Miner, Pizza … |
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Museum has played the role of a time recorder. Talking about bitcoin, more than ten years has passed since the creation of it. Although it is uncomparable to the stock market with a hundred years of history, during the ten years, in the different stages of the development of bitcoin and blockchain have continuously poured in geeks, miners, speculators, newbies, leaving keywords such as sudden rich, myth, scam, belief, revolution, etc.
There are also many “old objects” with stories in the “Museum” of the cryptocurrency realm. On Museum Day, let ’s review the stories brought by these “old objects”.
The First Digital Currency White Paper — Bitcoin White Paper
On Oct. 31, 2008, Satoshi Nakamoto released the Bitcoin white paper — A Peer-to-Peer Electronic Cash System in the cryptographic mail group where he belongs, and Bitcoin was born since then.
A white paper is a document that explains the purpose and technology used in cryptocurrency. Usually a cryptocurrency uses the white paper to help people understand what it provides, and it is also an important information channel for investors to understand a project. Therefore, the level of the white paper affects people’s confidence towards the coin.
In a word, in the cryptocurrency and blockchain industry, the value of a white paper is equivalent to that of a standard financing speech. The white paper plays a vital role in this emerging market.
The First Public Bitcoin-Physical Transaction — Pizza
Since Satoshi Nakamoto mined the Bitcoin genesis block on January 3, 2009, Bitcoin has only been spread among the small crowd and has not realized its value.
Not until May 22, 2010, Bitcoin enthusiast “Laszlo Hanyecz” bought a pizza coupon worth $25 with 10,000 bitcoins. This is the first public bitcoin-physical transaction. Bitcoin has its price with 0.3 cents per bitcoin.


This day has also become the famous “Bitcoin Pizza Day” in Bitcoin history. Bitcoin as the imagination of the financial system has more practical significance. The tenth anniversary is coming. How will you commemorate it? Will you buy a pizza?
The First Digital Asset Exchange — Bitcoinmarket.com
After the birth of Bitcoin, in addition to mining, the only way to get Bitcoin in the early days was to conduct transactions on forums or IRC (commonly known as Internet Relay Chat). However, this method involves both long transaction time and great security risk.
In March 2010, the first digital asset exchange — Bitcoinmarket.com launched. However, due to lack of liquidity and transaction depth, it disappeared soon after its establishment, but Bitcoinmarket.com opened the era of the operation of the cryptocurrency realm exchange 1.0.


On June 9, 2011, China’s first Bitcoin exchange — Bitcoin China (BTCChina) launched. Its founder, Yang Linke, translated Bitcoin into Chinese “比特币” for the first time. In 2013, China’s bitcoin trading entered the golden age, and exchanges sprung up. China monopolized more than 90% of the world’s bitcoin transactions. Now, if the top three exchanges Binance, Huobi Global, OKEx are the Exchange 2.0, then the index exchange represented by 58COIN called the 3.0 version, leading the trend.
The First Generation of High-Performance Miner — ASIC Miner
When Satoshi Nakamoto created Bitcoin, the only way to get it is to use computers (including home computers) to mine, mainly relying on the CPU to calculate. However, as the value of digital currencies such as Bitcoin has become higher and higher, mining has become an industry with the competition is getting fiercer, accompanied by increasing difficulty of mining. Therefore, hardware performance competition starts.
In July 2012, the genius Jiang Xinyu (Internet nickname is “Friedcat”) from the junior class of the University of Science and Technology declared at the forum that he could make ASIC miners (chips). As far as mining computing power is concerned, ASICs can be tens of thousands or more higher than the same-generation CPUs and GPUs.
At the beginning of 2013, Zhang Nanqian (Pumpkin Zhang), a suspended doctoral student from the Beijing University of Aeronautics and Astronautics, developed the ASIC miner and named it “Avalon”.


In June 2013, the Friedcat’s miner USB was finally released, and it maintained 20% of the computing power of the entire network.
At the end of 2013, Wu Jihan, used the tens of millions yuan earned from Friedcat through investment, worked together with Jenke group, to develop the Antminer S1. Since then, the miner manufacturer Bitmain began to enter the stage of history.
It is no exaggeration to say that Friedcat and Zhang Nangeng have opened the domestic “mining” era.
The Birthplace of China’s Bitcoin — Garage Coffee
It is not only the “old objects” that record history, but also a place that everyone in the cryptocurrency realm aspires to.
Guo Hongcai once said, “Without no The Garage Café, there will be no cryptocurrency realm today. Since it is a very mysterious place that all waves of people from the café joint together to create today’s digital asset industry.

▲ In March 2013, American student Jake Smith successfully purchased a cup of coffee at The Garage Café with 0.131 bitcoins. This move attracted the attention of CCTV, and it conducted an interview.
Indeed, The Garage Café is the world ’s first entrepreneurial-themed coffee shop. It has been legendary since its establishment in 2011. The Garage Cafét is not only the core coordinate on China’s Bitcoin map, but also the birthplace of the Chinese cryptocurrency circle, where digital asset realm tycoons including Guo Hongcai, Zhao Dong, Li Xiaolai, Li Lin have made their ways.
The development of digital currency is only 11 years old. Through these “old objects”, we review the various stories of this wave of technology together, hoping to help you understand the development process of the digital currency field. Meanwhile, I also remind all practitioners to use history as a mirror and forge ahead.
Website: https://www.58ex.com/
Twitter: https://twitter.com/58_coin
Facebook: https://www.facebook.com/coin.58COIN
Telegram: https://t.me/official58
Medium: https://medium.com/@58coin_blog/
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Celare: A Blockchain Technology with Privacy and Cross-chain.

Celare: A Blockchain Technology with Privacy and Cross-chain.

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Blockchain is a potentially transformative technology, but its mainstream adoption remains relatively limited compared to other technology trends. The blockchain community is acutely aware that several challenges need to be solved to streamline the adoption of blockchain technologies. Among those challenges, none two are more important than privacy and scalability.
However, current solutions are hampered by issues such as lack of regulatory oversight, innovative software with unproven security, poor governance that stifles scalability, and a lack of long-term planning for protocols.
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But Celare aims to change this. The Celare project is a next-generation blockchain, creating a new decentralized economy, and democratizing finance in emerging markets.

Evolution of blockchain technology
Bitcoin disrupted the traditional trusted third party structure in finance, challenging the need for trusted institutions like banks. Instead, it introduced decentralized transfers by distributing the process of validating transactions across the network’s participants. Furthermore, it ignored regulation and institutional control over monetary policy while embracing anonymity.
Recent cryptocurrencies like Zcash and Monero have adopted this mantle, while conversely, Ripple and R3 CEV have focused on the needs of regulators.
If Blockchain is to transform regulated industries such as finance, tools for regulatory integration must be created. At the same time, individual rights to privacy in financial transactions must still be protected, as Bitcoin allows.
Celare solves this seeming contradiction through its innovative multi-layer architecture and has finally developed a cross-chain solution to the security and privacy of chain assets — Celare.

Celare Privacy Solution
Compared with the existing Blockchain privacy protection technology, Celare not only realizes the privacy protection of account information and transaction but also achieves the privacy protection of Turing’s complete smart contract input and output.
The cryptographic algorithm used by Celare is the discrete logarithmic encryption and elliptic curve encryption, which are commonly used in modern public-key cryptosystems.
Besides, Celare uses a non-interactive zk-SNARKs zero-knowledge proof system to completely address the issue of transactions being traced to expose user privacy.
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zk-SNARKs is an encryption method based on purely mathematical theory. It is the same as the nature of Blockchain. The advantage of this method is that it does not need to rely on the external operating environment to be self-contained, so it has a wide range of application scenarios.
It is worth noting that Celare chose a BLS12–381 curve with a higher safety level when specifically selecting the zk-SNARK zero-knowledge proof curve.
According to the description in https://electriccoin.co/blog/new-snark-curve/, the BN128 curve is conservatively estimated, and the safety factor that can be achieved is only 110-bit, which is not the 128-bit security previously mentioned. To achieve 128-bit security, q≈2384 is required, and the order r-value of the corresponding BN curve will be increased to 2384. The increase of r value will affect the performance of multi-exponentiation, FFT, etc., thus changing the execution efficiency of zk- SNARKs, and secure multiparty computing also affects the unnecessary increase of key files.
The BLS12–381 curve is a more cost-effective solution.
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Celare cross-chain smart contracts
Celare’s asset cross-chain logic is that the user locks the asset in the original chain and then issues the mapped asset on the target chain. At the same time, the user can apply for cash withdrawal in the target chain and finally unlock the original chain.
You can understand that assets do not disappear in the original chain, but instead are kept by decentralized node protocols, or managed by a single individual or multi-person. The asset cross-chain mapping here uses the node relay mode. The node relay mode is an efficient and secure decentralized cross-chain mapping solution.
The security of the cross-chain mapping is guaranteed by the original chain consensus algorithm and is the highest level of security. If the original chain cannot integrate the nodes of the target chain, then the original chain assets can only be managed by an individual or multiple signed address. If so, the target chain is hosted by the node protocol on the original chain.
Celare supports high-level languages based on Web Assembly (WASM) compatibility, from C, C++ to Rust, which further enhances system performance. In contrast, EVM compatibility is provided in Celare systems (described in subsequent stacks) ), then all cross-chain assets also have EVM contract functionality. This has dramatically increased the scalability and expressiveness of Celare.
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Celare’s extensible scenarios
Developers can build a complete financial stack, designing ingenious applications to stimulate a new decentralized economy.
Smart contracts are one of the essential technical foundations of value Internet networks. Still, the current frustrating situation is that the Blockchain systems currently running around the world do not support encryption protection for smart contracts, and the existing privacy protection mechanisms are used significantly reduced by the influence of this technical limitation.
However, the emergence of Celare has broken this restriction, not only with privacy and cross-chain capabilities but also supports smart contract development on the chain.
Starting with the Celare system, the issuance, and control of anonymous assets will no longer be exclusive to a few geeks who have in-depth knowledge of cryptography. Ordinary developers can issue their assets on the Celare chain as long as they have relevant business needs. Anonymous assets, establish their privacy ecology, which significantly expands the scope of application of Blockchain privacy protection technologies.
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The Celare Project is a truly collaborative effort at an exciting stage of its development. With the future launch of the settlement layer, the world will be able to participate in the Celare platform.
Celare will create a new world of decentralized applications that protect privacy while allowing for cross-chain — built on a world-class, stable, and secure platform.
As the Foundation, we are excited to work with governments, enterprises, and individuals to share how this technology can be used.
Contact Us:
Twitter: @CelareCommunity
Telegram:t.me/celarecommunity_en
Reddit:u/Celarecommunity
GitHub:Celaregithub
submitted by Celarecommunity to u/Celarecommunity [link] [comments]

How Monero, ZCash, and Celare Will Enable True Privacy

How Monero, ZCash, and Celare Will Enable True Privacy

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When cryptocurrencies were first introduced, their unique anonymity and privacy features attract plenty of people. Even Satoshi Nakamoto, the creator of bitcoin, is shrouded in mystery as no one knows the true identity of the person or group. However, privacy issues for cryptocurrency users have continued to worsen.
In many ways, bitcoin transactions are not anonymous as the open ledger offers perhaps the most transparent payment history of any financial system to date. While there are no official names directly attached to crypto wallets, there are still many steps users must take to ensure their privacy.
In response, a different class of cryptocurrencies was introduced: privacy coins. Let’s dig a little deeper into what makes a “privacy coin,” how they’re different from bitcoin and other cryptocurrencies, and learn a bit about the significant privacy coins on the market today.
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What is a Privacy Coin?
A “privacy coin” is a type of cryptocurrency that ensures the privacy and anonymity of its users. In the simplest terms, privacy coins rely on the same blockchain technology as cryptocurrencies like bitcoin, but go a step beyond in how they handle information about transactions and obfuscate some info.
For example, bitcoin transactions are all recorded on an open public ledger showing that X address sent Y address with the amount of BTC. While there are no names attached to wallet addresses, it’s not incredibly challenging to link addresses with people by the powers that be, especially when it comes to liquidating holdings with a licensed exchange.
Privacy coins conceal information about senders and receivers during transactions through a variety of methods. The vital part of knowing is that, unlike bitcoin transactions, privacy coins hide information about wallet activity or at least offer the feature to users.
Government Response to privacy coin
Given the nature of privacy-driven cryptocurrencies, it is not surprising that they have gained the attention of many government agencies. More than 80% of the 66 world’s central Banks are already studying digital currencies, according to the Bank for International Settlements(BIS) survey.
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The federal reserve is also conducting research and experiments on technologies related to electronic payments and digital currencies and has begun studying the feasibility of digital currency issuance.
Brainard said, “Current research issues include the following aspects: the fed digital currency will make the payment system becomes more simple and safe, the digital currency will affect the financial stability, how to solve the problem of privacy and fraud, etc.
According to recent domestic reports, the central bank digital currency (DCEP) is also internally testing application scenarios in areas such as payments. The central bank is leading the digital currency, and Banks are testing it internally on landing scenarios, among others. Some are already using it among their employees to pay party dues and other payment scenarios.
Based on the active research on blockchain technology and digital currency by various governments, it is reasonable to believe that compared with the existing digital currency system, anonymous currency with a higher level of privacy protection will also have more development space.
Now let’s look at some of the biggest names in the space and how they make privacy happen.

The Big Three Privacy Coin
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Monero(XMR)

Perhaps one of the most well-known privacy coins, Monero, actually started as a fork from Bytecoin in 2014. With Monero, the addresses of both the sender and receiver are kept private on the ledger, meaning there’s also no way to see the value of a user’s wallet. The Monero network protects user privacy by utilizing stealth addresses (a one-time address created by the sender for each transaction), ring signatures (a method that uses multiple signatures as decoys to obfuscate address of the sender), and Ring Confidential Transactions, also known as “RingCT” (an improved version of ring signatures that hides the amount of XMR used in a transaction).
Monero further increases the privacy of transactions via a unique splitting mechanism. Each full transaction is divided into different amounts and sent as a subset of separate, smaller transactions adding up to the initial value. For example, if you wanted to send 1,000 XMR, this amount would get split into a variety of separate amounts, say 200 XMR +150 XMR + 325 XMR + 275 XMR + 50 XMR, each of which getting its one-time address.
Next, with the help of the ring signature, each separate transaction gets combined with a variety of decoy transactions, thereby rendering the transaction nearly impossible to trace.
Furthermore, Monero also features spend keys and view keys. The alphanumeric spend key allows an authorized user to conduct transactions on behalf of the account, while the view key enables users to look at a specific account’s holdings. It comes in handy when reporting holdings for tax purposes, or auditing a company’s financial reserves.
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Zcash(ZEC)

Zcash was created as an alternative to Bitcoin and claims to boast enhanced privacy and security. Unlike Monero, private transactions are not required when using Zcash. Instead, users have the option to use the enhanced privacy feature to obfuscate transaction details and use either a transparent wallet address or a “shielded address” to keep transactions private. To accomplish this, Zcash utilizes zk-SNARK, short for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge” and the zero-knowledge security layer (ZSL).
These two security mechanisms permit existing blockchain applications to support semi-transparent transactions, effectively allowing users to display a small sub-set of data about any transaction. This is used in everyday applications to verify that payments were executed at specific times. However, it masks critical user information in the process, including the sum of the transaction as well as the personal information of both transacting parties.
Zcash has also entered into partnerships with several leading financial institutions and blockchain companies, including JP Morgan, Parity, and StarkWare.
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Celare

Unlike Monero, Dash is not driven solely by privacy, but by providing users with privacy protection for transactions and cross-chain solutions. Since most anonymous coins are private but not widely applicable and cannot be cross-chain exchanged, the Celare Co-Founders’ Committee has been researching cross-chain technology since 2018 and has finally developed a cross-chain solution to the security and privacy of chain assets — Celare.
Celare achieves zero-knowledge proof by selecting the BLS12–381 curve, and indeed implements a Blockchain system with privacy protection for Turing-complete smart contracts.
In principle, the advantage of it is that it can share the security and cross-chain operation of Polkadot, and independently develop its in-chain system. Therefore, Celare’s design will be compatible with Polkadot, and it also has its unique algorithms and functions.
https://preview.redd.it/bt8gbpnek4u41.png?width=2300&format=png&auto=webp&s=dddc4c4384d5fcf39f5d755e30e902410b82aa0a
Celare supports Turing’s comprehensive smart contracts, cross-chain asset transactions, and various related privacy protections to support the expansion of different economic ecosystems.
Starting with the Celare system, the issuance, and control of anonymous assets will no longer be exclusive to a few geeks who have in-depth knowledge of cryptography. Ordinary developers can issue their assets on the Celare chain as long as they have relevant business needs. Anonymous assets, establish their privacy ecology, which significantly expands the scope of application of Blockchain privacy protection technologies.
Compared with the existing Blockchain privacy protection technology, Celare is a rising star in anonymous currency with inestimable development potential. It can not only achieve a collaborative and efficient cross-chain function but also guarantee the security and privacy of cross-chain assets.
Although Monero and Zcash have been implemented earlier, there are still many limitations in practical application.
Celare not only has the same privacy and anonymity technology as Monero but also incorporates the zero-knowledge proof and other technical and theoretical support adopted by Zcash. On this basis, Celare innovatively adds a powerful cross-chain function.
In the future, there will be more stack extension applications in Celare ecology, such as anonymous wallets, anonymous asset exchange, anonymous chat tools with OTC function, which are likely to surpass the former two.
Since the development of Blockchain technology, there are many imperfections. However, it can be seen that all individual teams and communities that have faith in the Blockchain are actively promoting the healthy development of Blockchain ecology.
We have also noticed that the update and iteration speed of the blockchain era is much faster than we imagined. We hope that anonymous currency will have more broad development prospects in the future.
Contact Us:
Twitter: @CelareCommunity
Telegram:t.me/celarecommunity_en
Reddit:u/Celarecommunity
GitHub:Celaregithub
submitted by Celarecommunity to u/Celarecommunity [link] [comments]

⟳ 870 apps added, 78 updated at f-droid.org

Notice: this update is spurious, and the issue is being looked at.
⟳ f-droid.org from Wed, 26 Feb 2020 20:21:50 GMT updated on Sun, 01 Mar 2020 05:23:29 GMT contains 2962 apps.
Added (870)
Updated (78)
2020-03-01T05:53:18Z
submitted by BrainstormBot to FDroidUpdates [link] [comments]

If you hodl or trade, you`re the biggest problem with the world of cryptocurrencies.

There`s 3 components to a market economy: Spending, Savings & Investments. We only have 2 and those are way off balance.
Spending: Payments. Drives Inclusion & Adoption. Represents the primary bridge to real world assets.
Saving: Store of Value, Essential driver for stability. The ideea that your holdings are safe over time and don`t depreciate.
Investments: Trading, drives value of the economy, corrects inflation.
State of the nation:
IF there`s any chance at adoption, don`t just HODL. Don`t just DayTrade. Spend what you have. Money needs to move.
The moment you start spending a portion of cryptocurrencies, that money moves. The entire supply chain benefits. Miners Mine, Exchangers Exchange, Businesses get paid, Taxes get taxed. The underlying value of your holdings grows as you tell more people how you paid your AliBaba supplier in Bitcoin and didn`t have any trouble with your EU based bank making a fuss over "why you`re sending money to Asia".
If the only thing you do with Crypto is to buy it, hold it or trade it, it has no impact on real life. It`s not inviting more people to use it. Demand doesn`t grow. the value chain remains closed and non-inclusive. And it`s against the basic principles of Blockchain. You, the person who only has 10 USD in Dogecoin or the Hodler who has 8 bitcoins since Satoshi was in diapers, you`re responsible for the value of your assets and growth of your community. If you don`t SPEND it, people around you have NO reason to adopt. And if they do adopt, they do it for the wrong reasons and simply add to the volatility.
Introduction:
I`ve been in this space since 2009, reading all I could get my hands on. Coming from a poorly banked background and still having frustrations due to the inability of making online purchases at the time, just coming out of a recession, Bitcoin`s vision struck a nerve with me. I`ve been an avid believer in blockchain ever since and at no point did I buy crypto to store value, hedge my bets, invest, digital gold or any of this. I went in because it was, and still is: the easiest way to send money across the world. Ethereum`s smart contracts bring this simple function to a new level, introducing conditions to be met for the transfer itself. Simple, open, transparent, inclusive. Period.
What we`ve become, as a community:
As a whole, this community went from a group of passionate people who wanted an alternative to banks, government and politics, people who wanted to deal directly with other people, to something weird I can`t describe as a whole, but more as personas. Here`s what I`m seeing:
  1. The "I wanna buy Pizza with Bitcoin" crowd. I`m one of them. We just wanted a simple alternative, we were okay with volatility because we always knew the more people use it, more stable it gets as an alternative currency. Conspiracy theorists, tech geeks, scientists, curious people fascinated by the endless possibilities of a global, open banking system, built by the people, for the people. Joined from the first 3-4 years of Bitcoin, many still join it.
  2. The Hodlers: Also coined as the true "Believers". They`re responsible for the initial traction, and would rather liquidate their house than to "sell off" their Bitcoins. They see Bitcoin and other currencies as a "store of value" and see not much difference between buying/storing Gold and Crypto. Joined after the first group and peacefully co-existed with everybody so far. Most dedicated miners came from this group/generation of adopters.
  3. The Traders: People coming from the finance world. They either did Hedgefunds, Forex, VC. Smart opportunists that saw the first 2 groups, saw the potential value of the system as something to be gained from (nothing wrong with this) and heavily capitalize on it. These were the first guys to look at crypto as financial instruments and started fighting the compliance game. This is also where market manipulation started.
  4. The "Tokenize the world" generation. Driven by technology on one side, by the ICO madness on the other side, this opportunistic group wanted to create a token (and respective ICOs) for everything they could think of. Huge similarities between how everything needed a website in the 2000`s, everything needed an app in 2010, everything needed a coin/token started around 2016. Dogecoin is the perfect example of a joke that got way out of proportion, while the original ideea was to make fun of this particular group. Oh well, this group still garners a lot of traction/interest. This group is why we have 3000 shitcoins and who knows how many that never saw the light of day.
  5. The Consultants, Gurus, Ninjas. The "know it all`s". They`re all about the TREND, not about the substance. In the 90`s we had the "internet consultants" who were selling strategies for people to get online. Later the same people were selling strategies to get website traffic. Later, it was about the apps or about the cloud. Right now, it`s about blockchain, token economics, go to market, liquidity, or investing. Some are super smart, most are useless. The only thing that really bothers me is that consultants take no ownership in the success or failure of what they`re selling. As long as you cover their fees, they don`t care if their advice works or not and usually blame you for failing. These are the "market makers" of today, the youtube/facebook/twitteinstagram investment gurus who look at charts for 4 hours and make predictions without really having any skin in the game. Here`s what I never got my head around, if you know how to make a market for a coin, or really know how to invest in crypto.... WHY would you charge me 20k when you can make millions for yourself in less time than that? I guess it holds true: those that can, DO, those that can`t, Teach.
This brings us to the state of the market today.
Proposed solution:
Don`t wait for your government to regulate, don`t wait for banks or institutional investors to kick in, don`t wait for the media frenzy. Just do your part: spend, save and invest your crypto just as you would your USD/Euro/Yen/etc. If you`re a freelancer, accept crypto payments. if you run a business, accept crypto payments. If you have crypto, make crypto payments. This is the main reason we have crypto today and it`s exactly what we don`t use it for. Go back to basics and let`s see how influenced by "market volatility" or "market manipulation" or "media bias" the price will get.
Disclosure: Yes, trying to solve the adoption issue has led me to build a platform for e-commerce that also solves crypto-to-fiat payments for more than 2000 tokens. We walk the walk, not talk the talk.
I`d love to hear if you guys agree or disagree, and most importantly, Why?
C:\>
P.S. I love you
submitted by chrisorasanusdk to Bitcoin [link] [comments]

To everyone rushing back into BTC from altcoins: What matters is that you learn why Bitcoin needs to be conservative in its development.

Over the past year, the prevailing thought among many in the cryptocurrency communities is that bitcoin is not keeping up with other coins. That somehow bitcoin was being intentionally crippled, or that the developers did not know what they were doing. As we are seeing with the bitcoin dominance going up, that prevailing thought was wrong. The coins who were supposedly going to kill bitcoin have been all but abandoned in many cases. Many others are in the process of dying a slow death (which may take years to fully play out).
To everyone who went heavy on these coins and sold all of their bitcoin, but are now coming back: Welcome back. We are glad to have you. But before you pretend like everything is great with bitcoin again, it's important to realize why you were wrong.
But first let's go back a few years. In 2015, I was a staunch big blocker. I want to share a post made during this time that I initially downvoted. (The reason I know this is because after a certain number of months/years, reddit does not let you change whether you upvoted/downvoted something). I downvoted it because it went against my biases which had already been built up around the scaling decision, and later I came back to this post after being referred to it again. The 2015 version of me had only been in Bitcoin for 2 years, and was disillusioned with what I thought bitcoin was. And not what it actually was, or what its limitations were. The 2018 me now realizes why I was wrong, but back then I spent far too much time thinking I had it all figured out. The post that I downvoted, is as relevant today as it ever was:
A trip to the moon requires a rocket with multiple stages or otherwise the rocket equation will eat your lunch... packing everyone in clown-car style into a trebuchet and hoping for success is right out.
A lot of people on Reddit think of Bitcoin primarily as a competitor to card payment networks. I think this is more than a little odd-- Bitcoin is a digital currency. Visa and the US dollar are not usually considered competitors, Mastercard and gold coins are not usually considered competitors. Bitcoin isn't a front end for something that provides credit, etc.
Never the less, some are mostly interested in Bitcoin for payments (not a new phenomenon)-- and are not so concerned about what are, in my view, Bitcoin's primary distinguishing values-- monetary sovereignty, censorship resistance, trust cost minimization, international accessibility/borderless operation, etc. (Or other areas we need to improve, like personal and commercial privacy) Instead some are very concerned about Bitcoin's competitive properties compared to legacy payment networks. ... And although consumer payments are only one small part of whole global space of money, ... money gains value from network effects, and so I would want all the "payments only" fans to love Bitcoin too, even if I didn't care about payments.
But what does it mean to be seriously competitive in that space? The existing payments solutions have huge deployed infrastructure and merchant adoption-- lets ignore that. What about capacity? Combined the major card networks are now doing something on the other of 5000 transactions per second on a year round average; and likely something on the order of 120,000 transactions per second on peak days.
The decentralized Bitcoin blockchain is globally shared broadcast medium-- probably the most insanely inefficient mode of communication ever devised by man. Yet, considering that, it has some impressive capacity. But relative to highly efficient non-decentralized networks, not so much. The issue is that in the basic Bitcoin system every node takes on the whole load of the system, that is how it achieves its monetary sovereignty, censorship resistance, trust cost minimization, etc. Adding nodes increases costs, but not capacity. Even the most reckless hopeful blocksize growth numbers don't come anywhere close to matching those TPS figures. And even if they did, card processing rates are rapidly increasing, especially as the developing world is brought into them-- a few more years of growth would have their traffic levels vastly beyond the Bitcoin figures again.
No amount of spin, inaccurately comparing a global broadcast consensus system to loading a webpage changes any of this.
So-- Does that mean that Bitcoin can't be a big winner as a payments technology? No. But to reach the kind of capacity required to serve the payments needs of the world we must work more intelligently.
From its very beginning Bitcoin was design to incorporate layers in secure ways through its smart contracting capability (What, do you think that was just put there so people could wax-philosophic about meaningless "DAOs"?). In effect we will use the Bitcoin system as a highly accessible and perfectly trustworthy robotic judge and conduct most of our business outside of the court room-- but transact in such a way that if something goes wrong we have all the evidence and established agreements so we can be confident that the robotic court will make it right. (Geek sidebar: If this seems impossible, go read this old post on transaction cut-through)
This is possible precisely because of the core properties of Bitcoin. A censorable or reversible base system is not very suitable to build powerful upper layer transaction processing on top of... and if the underlying asset isn't sound, there is little point in transacting with it at all.
The science around Bitcoin is new and we don't know exactly where the breaking points are-- I hope we never discover them for sure-- we do know that at the current load levels the decentralization of the system has not improved as the users base has grown (and appear to have reduced substantially: even businesses are largely relying on third party processing for all their transactions; something we didn't expect early on).
There are many ways of layering Bitcoin, with varying levels of security, ease of implementation, capacity, etc. Ranging from the strongest-- bidirectional payment channels (often discussed as the 'lightning' system), which provide nearly equal security and anti-censorship while also adding instantaneous payments and improved privacy-- to the simplest, using centralized payment processors, which I believe are (in spite of my reflexive distaste for all things centralized) a perfectly reasonable thing to do for low value transactions, and can be highly cost efficient. Many of these approaches are competing with each other, and from that we gain a vibrant ecosystem with the strongest features.
Growing by layers is the gold standard for technological innovation. It's how we build our understanding of mathematics and the physical sciences, it's how we build our communications protocols and networks... Not to mention payment networks. Thus far a multi-staged approach has been an integral part of the design of rockets which have, from time to time, brought mankind to the moon.
Bitcoin does many unprecedented things, but this doesn't release it from physical reality or from the existence of engineering trade-offs. It is not acceptable, in the mad dash to fulfill a particular application set, to turn our backs on the fundamentals that make the Bitcoin currency valuable to begin with-- especially not when established forms in engineering already tell us the path to have our cake and eat it too-- harmoniously satisfying all the demands.
Before and beyond the layers, there are other things being done to improve capacity-- e.g. Bitcoin Core's capacity plan from December (see also: the FAQ) proposes some new improvements and inventions to nearly double the system's capacity while offsetting many of the costs and risks, in a fully backwards compatible way. ... but, at least for those who are focused on payments, no amount of simple changes really makes a difference; not in the way layered engineering does.
by nullc (Mr. Gregory Maxwell) submitted to the bitcoin subreddit
If you're made it this far and want to read more, or perhaps from a different perspective, here is another article which influenced me more recently by Melik Manukyan
Lightning Network enables Unicast Transactions in Bitcoin. Lightning is Bitcoin’s TCP/IP stack.
It has recently come to my attention that there is a great deal of confusion revolving around the Lightning Network within the Bitcoin and Bitcoin Cash communities, and to an extent, the greater cryptocurrency ecosystem. I’d like to share with you my thoughts on Bitcoin, Blockchain, and Lightning from a strictly networking background.
To better understand how blockchain and the lightning network work, we should take a step back from the rage-infused battlegrounds of Twitter and Reddit (no good comes from this 😛) and review the very network protocols and systems that power our Internet. I believe that there is a great wealth of knowledge to be gained in understanding how computer networks and the Internet work that can be applied to Bitcoin’s own scaling constraints. The three protocols I will be primarily focusing on in this article are Ethernet, IP, and TCP. By understanding how these protocols work, I feel that we will all be better equipped to answer the great ‘scaling’ question for Bitcoin and all blockchains alike. With that said, let’s get started.
In computer networking, the two most common forms of data transmission today are broadcast and unicast. There are many other forms such as anycast and multicast, but we won’t touch up on them in this article. Let’s first start by defining and understanding these data transmission forms.
Broadcast — a data transmission type where information is sent from one point on a network to all other points; one-to-all.
Diagram: Broadcast Data Transmission https://cdn-images-1.medium.com/max/800/1*xbgXKepaeHZRqmHWsCb_qw.png
Unicast — a data transmission type where information is sent from one point on a network to another point; one-to-one.
Diagram: Unicast Data Transmission https://cdn-images-1.medium.com/max/800/1*i18TOm6hT_h7UQ8cnt8U_Q.png
Based on our understanding of these types of data transmission forms, we very quickly discover that blockchain transactions resemble Broadcast-like forms of communication. When a transaction is made on the Bitcoin network, the transaction is communicated or broadcasted to all connected nodes on the network. In other words, for a transaction to exist or happen in Bitcoin, all nodes must receive and record this transaction. Transactions on blockchains work very similarly to how legacy, ethernet hubs handled data transmissions.
A long time ago, we relied on ethernet hubs to transfer data between computers. Evidently, we discovered that they simply did not scale due to their limited nature. Old ethernet hubs strictly supported broadcast transmissions, data that would come in through one interface or port would need to be broadcasted and replicated out through all other interfaces or ports on the network. To help you visualize this, if you wanted to send me a 1MB image file over a network with 100 participants, that 1MB image file would, in turn, need to be replicated 99 times and broadcasted out to all other users on the network.
In Bitcoin, we see very similar behavior, data (a transaction or block) that comes from one node is broadcasted and replicated to all other nodes on the network. Blockchains similarly to old, legacy ethernet hubs are simply poor mediums to perform data transmission and communicate over. It is simply unrealistic to me as a network engineer to even consider scaling a global payment network such as Bitcoin via Broadcast-based on-chain transactions. Even to this very day, us network engineers take great care and caution in spanning our Ethernet and LAN networks, let alone on a global level.
To put it into perspective, if we were to redesign the Internet by strictly relying on broadcast data transmissions as exhibited in blockchains and ethernet hubs — we would have effectively put every single person, host, and device in the entire world on the same LAN segment or broadcast domain. The Internet would have been a giant, flat LAN network where all communication would need to be replicated and broadcasted to every single device. In you opening up to read this article, every other device on the Internet would have been forced to download this article. In other words, the internet would come to a screeching halt.
In computer networks, the most frequent form of communication relies on unicast data transmissions, or point-to-point. Most of the communication on the internet is routed from one computer to another, we no longer need to rely on blind broadcast transmissions of data with the hopes that our recipient will receive it or see it. We are able to accurately send, route and deliver our messages to our receiving party(ies). We learned that the transfer of a 1MB image file in a broadcast network would require the file to be replicated and broadcasted to every participant on that network. Instead, in a network that supports unicast data transmissions, we are able to appropriately route that image file from source to destination in a clearcut manner.
To me, the Lightning Network is the IP layer of Bitcoin. (I understand that these data transmission forms exist in both Ethernet and IP.) But, I do feel that these analogies help us to better understand these complex and largely abstract ideas: blockchain, lightning, channels, etc.
Let’s take a moment and ignore all explanations and overly simplistic definitions of Lightning that are perpetuated from both sides of the debate for a moment. Instead, lets objectively take a close look at Lightning and determine what we know. What do we know about lightning? It allows us to lock our Bitcoin and form channels with others. What else do we know? We can bidirectionally send and receive transactions between the two points that constitute the channel. What else do we know? We can further route transactions to their correct destination.
Based on these key understanding points, we are able to see that lightning enables unicast transactions in a system [Bitcoin] that previously only supported broadcast transactions. To me, Lightning nodes in Bitcoin are the equivalent of IP hosts — where we can finally conduct or route one-to-one or point-to-point transactions to their appropriate recipients. In traditional IP, we send and receive data packets; in Lightning, we send and receive Bitcoin. IP is what allowed us to scale our small and largely primitive networks of the past into the global giant that it is today, the Internet. In a similar manner, Lightning is what will allow us to scale our global Bitcoin network.
Where Lightning Nodes can be seen as IP hosts, I view Lightning Channels as established TCP connections. On the Internet today, when we try to connect to a website for example, we open a TCP connection to a web server through which we can then download the website’s HTML source code from. Alternatively, when we download a torrent file, we are opening TCP connections to other computers on the Internet which we then use to facilitate the transfer of the torrent data.
And in Lightning, we establish channels with our respective parties and are able to directly [point-to-point] send and receive data (transactions) similarly to TCP. Where Blockchain is similar to Ethernet, Lightning Nodes are our IPs and Lightning Channels our TCP connections.
To conclude, I see many similarities to our pre-existing network technologies and protocols that power our computer network(s) and I feel that we are redesigning the Internet. From a technical point of view, I don’t believe that scaling Bitcoin on-chain will ever work and fear broadcast storm-like events in the future. I welcome our new unicast transaction methods enabled by the Lightning Network. Even more so, I am excited for the ‘web’ moment in Bitcoin.
While everyone has their eyes fixed on blockchain technology, I look towards Lightning. Lightning is the TCP/IP stack of Bitcoin. Lightning is where we will transact on. Lightning is where everything will be built on. Lightning is what will power and enable our applications and additional protocols and layers. With this said, what is to become of the main Bitcoin blockchain? It will and should remain a decentralized, tamper-proof, immutable base or foundation layer which will provide us with cryptographic evidence of what is a Bitcoin.
Some individuals and groups within our communities and ranks spread fear and warn us of false narratives of “lightning hubs”, but fail to grasp that their scaling approach of on-chain transactions only pushes us in the direction of an actual (ethernet) hub design. If Bitcoin loses decentralization on its base layer, then we will lose Bitcoin. The past 9 years of work will have only resulted in a large, centralized broadcast hub with only a few remaining with the ability to operate such a monstrosity.
I wrote this article with hopes that it will help clear up the ongoing confusion about Bitcoin, Blockchain, and Lightning. It is designed to help better explain Blockchain and Lightning through analogies to concepts that we may be more familiar with. I also wrote this very quickly and it may contain typos. If you notice any typos, please bring it to my attention.
submitted by hybridsole to Bitcoin [link] [comments]

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