BlockChain Technology

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Bri Reference

E-Mails
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Dash
Z Cash
Ethereum
Bitcoin Cash
Bitcoin Gold


My Notes

Recorded data, ledger technology, transaction technology, Internet of the future

Advantages:

-No losses
-No corruption
-No altering
-No tampering
-No fraud
-No political control
-Low cost
-Almost instantaneous
-Total transparency
-No middlemen charges or interference
-No need to trust bank, person, money, institution
-Private
-Anonymous
-No centraliztion
-No authority interfering
-No inflation
-Distributed
-Chronological

Potential Uses:

Proof of ownership [intellectual property]

Financiel records & functions [bitcoin]

Medical records

Private blockchain revisions, maintenance [techy job]

Smart contracts

P2P posts, no need for checks or CC; see www.goabra.com

Track good: origin, history, attributes, owner [like for art works, music, etc.]

Asset registration & exchange [e.g. real estate]; can make assets liquid




Videos

Video: Blockchain: The Foundation of the Future more stable than traditional currencies, cannot be hacked. Very robust, hard for evil to influence. The future is machine to machine economy.

Understand the Blockchain in Two Minutes System cannot be cheated; impossible for others to lie to you.



E-Mails

Email from Bri:

Here is the Ethereum block chain system I was looking into, it is trying to build something with a vast number of uses, and it is relatively early in the market development. The value of ethereum recently started rising fast, hopefully it continues to grow.


ethereum

ethereum: Homestead Release Build unstoppable applications

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.

This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.

It is developed by the Ethereum Foundation, a Swiss nonprofit, with contributions from great minds across the globe.

Learn Solidity, a new language for smart contracts:

DESIGN AND ISSUE YOUR OWN CRYPTOCURRENCY

Create a tradeable digital token that can be used as a currency, a representation of an asset, a virtual share, a proof of membership or anything at all. These tokens use a standard coin API, so your contract will be automatically compatible with any wallet, other contract or exchange also using this standard.

YOU CAN BUILD:

A tradeable token with a fixed supply
A central bank that can issue money
A puzzle-based cryptocurrency

KICKSTART A PROJECT WITH A TRUSTLESS CROWDSALE

Do you already have ideas that you want to develop on Ethereum? Maybe you need help and some funds to bring them to life, but who would lend money to someone they don’t trust?

Using Ethereum, you can create a contract that will hold a contributor's money until any given date or goal is reached. Depending on the outcome, the funds will either be released to the project owners or safely returned back to the contributors. All of this is possible without requiring a centralized arbitrator, clearing house or having to trust anyone.

You can even use the token you created earlier to keep track of the distribution of rewards.

YOU CAN BUILD:

A crowdfund to pre-sell a product
A crowdsale to sell virtual shares in a blockchain organization
An auction of a limited number of items

CREATE A DEMOCRATIC AUTONOMOUS ORGANIZATION

Now that you have developed your idea and secured funds, what’s next? You have to hire managers, find a trustworthy CFO to handle the accounts, run board meetings and do a bunch of paperwork.

Or you can simply leave all that to an Ethereum contract. It will collect proposals from your backers and submit them through a completely transparent voting process.

One of the many advantages of having a robot run your organization is that it is immune to any outside influence as it’s guaranteed to execute only what it was programmed to. And because the Ethereum network is decentralized, you'll be able to provide services with a 100% uptime guarantee.

YOU CAN BUILD:

A virtual organization where members vote on issues
A transparent association based on shareholder voting
Your own country with an unchangeable constitution
A better delegative democracy

Check out the many great projects* already being built on Ethereum.

Powermatcher Blockchain, Foxfire, Distributed energy auction for balancing supply and demand

DAO IPCI, IPCI, Blockchain technology for carbon markets

JabDapp, JabDapp Team, A sports prediction platform focused on MMA, boxing, and other combat sports

FairPay, Ian Love, FairPay is a global community based project creating salary tran

TokenNinja, TokenNinja, ERC20 token management system

ProjectLIVE, MundoPM, Collaborative Problem-solving Issue

Lotto, DeviateFish, Simple, provably-fair, secure lottery

Lunyr, Lunyr, Decentralized crowdsourced encyclopedia with reward system

Gold Auction, CodeTract, Daily settled auction for easy exchange of tokens

EthereanMind, Conrad Barski, A voting Dapp to capture the sentiments/concerns of ethereans

TrekMiles, David, Fitness Motivation App + Currency + Community

Decypher TV, Decypher Media, Ethereum Screencasts for Developers

Ethplorer, Everex, Ethereum token viewer. Tokens for investors, Widgets and API

DNN, Samit and Dondrey, Decentralized News Network

Pray4Prey, Julia Altenried, Stefan Höller, The one and only blockchain aquarium

StackExchange Bounty DApp, Oraclize, Bounties for StackExchange questions

Proof of Identity, Oraclize, Onchain identity verification via your Estonina Digi-ID

Youtube contract, Oraclize, Automated escrow for youtubers and their sponsors

AnonymousVoting, Patrick McCorry, Decentralised e-voting with maximum voter privacy.

EthPassport, Michael Dela Cuesta, Decentralized Traveler

Smart Identity, Deloitte, Next generation digital identity for the new digital economy

Consulteum, Vincent Muthee, Decentralized Consultancy Platform

BlockCapsule, BlockCapsule Developers, Time Capsule on Blockchain

Pass DAO, Frederic. A DAO for decentralized services

Decibel.LIVE, Decibel.LIVE, Noise monitoring and compensation settlement based on Ethereum

Flight Delay Insurance, Etherisc GmbH, Get instant payout in case your flight is late.

Crop Insurance, Etherisc GmbH, Get instant payout in case bad weather damages your crop harvest

IDEX, Decentralized Capital, Distributed Ethereum exchange made of smart contracts

Etherisc Social Insurance, Etherisc GmbH, Social insurance based on group p2p assessment

BLOCKLOG.xyz, monkeyscage, DECENTRALIZED BLOGGING PLATFORM

THOT, monkeyscage, Decentralized Blog Generator

INSTIMATCHBLOCK, hugh macmillen, fixed income bookbuilding app (private blockchain)

AuctionHouse, Doug Petkanics, Eric Tang, Auction platform for non-fungible on-chain assets.

Blockjack, Voltaireth + WhySoS3rious, The first Blackjack Gambling Game on the Blockchain

Etheroll, James Britt, Ether dice game casino / gamble ether

Maker Market, MakerDAO, User interface for Maker Market contracts

FirstBlood.io, Joe & Zack, A decentralized eSports reward platform.

Flight Delays Suck, Christoph Mussenbrock, Get indemnification if your plane is late

Lending Circles, WeTrust, Rotating Savings and Credit on the Blockchain

Ethlance, Matus Lestan, Decentralized Job Market Platform

ECB, Ashish, Ethereum wallet and API for using for transaction

Swarm City, Bernd Lapp, Swarm City is the first truly decentralized peer to peer economy

Game Legends, Dylan J.W. Erdahl, Free, decentralized gaming & E-Sports platform with real rewards

Gnosis, Gnosis Team, Prediction market platform

Call4Contest, Julia Altenried, Stefan Hoeller, Call4Contest is a contest creation/participation/voting platform

Musicoin, Berry Labs, Blockchain solution to musicians to license their works

Ethmail.tech, Steven Ireland, Secure Blockchain Mail

Drago, Gabriele Rigo, Decentralized Hedge Fund & Social Trading

SmartPool, Loi Luu, Decentralized Mining Pool

Alice, Alice SI, Philanthropy platform

colorChain, Gian Carlo Mingati, Forge your favourite hexadecimal color to the blockchain

Fanofbeauty, DUCKHIPS, Chat app: Meet beautiful girls and boys

Etherplay, wighawag, Skill Games : Play games on Ethereum

TheEthereumLottery, HashFairGames, Lottery Dapp which solves problem of random numbers in blockchan

Vega Fund, GKVH & WPR, Decentralized managed fund.

The EDO, keech, decentralized autonomy P2P insurance platform

The Million Ether Homepage, Peter Porobov, Advertising platform. Income is shared between referrals.

DealMate, Gleb Nazarkin, Escrow smart contract between two parties with, an intermediary

CryptoFund, CryptoFund CEO, A Cryptocurrency Asset Management Hedge Fund

One Million Ether Page, Alfons Machata, Trading Pixels in the Blockchain

EtherGit, Miles Albert, Incentivized open source software development

Verity, Matt Goldenberg, Credible, Decentralized Reputation and Governance

Chainy.Link, Everex, Create Irreplaceable short URLs, Messages, Links to File

SmartToken, Nikita Dubrovin, NFC smart-token with SMS Secure

PixelMap, Ken Erwin, The Million Dollar Homepage, on the Blockchain!

Dragoo, Gabriele Rigo, decentralized hedge fund and social trading

Time Clock, Daniel Moscufo, Service Delivery / Labor hire contract

Project Entropy, Joran Kikke, The World's DAO Controlled fleet of sailing hackspaces

BitVault, Nikita Dubrovin, PoA based Debit Cards with automatic hedging and Mobile Wallet

Costring, Manuel, Upload Images to the blockchain forever

smart-lease, Marie, Store apartment leases. Pay rent and verify working appliances.

KeyPal, Paul Hensel, Part Distributed Public Key Server, Part Donors Recognition Wall

Zonafide, Paul Worrall, Work together to stop fraud: beta DApp on Google Play

SafeEther, Sergey Leschenko, Keep your personal data in the Ethereum blockchain
SafeEther

TokenCard, Monolith Studio, Smart contract powered Visa debit card. ERC20 complient

Status, Jarrad Hope, open source mobile ethereum client
Status

blockchainmail.net, Eamonn Hynes, Trustless, fully-insured, global delivery of physical items

GrünStromJeton, Thorsten Zoerner, Green Energy Consumption Token issued to power consumers
Deutsch

Community-Currency, Rogelio Segovia, Community currency with zero reserve mutual credit

Everex Transfer, Everex, Cryptocash platform for remittance, payments, trading, lending
Everex

Rex, Stephen King & Russell McLernon, A Decentralized Global Multiple Listing Service
REX

CT Contract Management, ChainThat, Legal contract management solution
CT CM

xapout, Michael Kwaaitaal, simplifying work
Xapout

otlw-assess, otlw, A decentralized framework for assessment in education
otlw

voteholder, Michael, reinvention of global governance
VoteHolder

AKASHA, AKASHA International, Next-Generation Social Media Network
Akasha

Trustery, Mustafa Al-Bassam, Public Key Infrastructure and identity management system
Trustery

Proof of Phone, Igor Barinov, KYC oracle validates and links your phone number and eth address
Proof of Phone

PatrolX, Adam Sculthorpe, Threat intelligence and breach alerts with no false positives.
PatrolX

TokenEscrow, Alex Beregszaszi, Contract for running an escrow service for Ethereum token-contracts
Token Escrow

NotarEth, Maran Hidskes, Ethereum based notary service
NotarE th



Latest News [latest first]

MIT Has Started Issuing Diplomas Using Blockchain Technology Blockchain technology is proving to offer major advantages beyond its well-known applications in the sphere of cryptocurrency. A new app allows MIT graduates to prove ownership of their degree using the digital ledger.

China completes first test runs on establishment of new sovereign digital currency

The Gates Foundation Just Launched a Blockchain-Powered Mobile Payment System The Level One Project, the umbrella blockchain effort by the Bill & Melinda Gates Foundation, started in 2015. Now, they've developed an open-source platform that lets various financial services to work seamlessly as a payment service for the poor.

INTEROPERABILITY IS KEY

The Bill & Melinda Gates Foundation is no stranger to blockchain. Since 2015, the foundation has been working on ways to use the decentralized digital ledger of transactions through its Level One Project. Now, they’ve launched Mojaloop, which is an open-source payment platform designed for people who lack access to the usual payment services.

Mojaloop’s mobile payment software, built as part of the Level One Project, is powered by the Interledger technology, which in turn was built by distributed ledger technology (DLT) startup Ripple. It “establishes a blueprint for connecting today’s financial services sector, and can be used as a solution to barriers that banks and providers seeking interoperability have traditionally faced,” the foundation’s announcement said. In short, Mojaloop wants to link financial institutions, payment providers, and other companies that provide payment services and share information using blockchain.

Video: Mojaloop is the common platform for financial transactions for the poor

THE IDEAL PLATFORM

Blockchain’s secure and decentralized nature makes it ideal for such interoperability or sharing of information that’s particularly crucial in financial transactions. “Interoperability of digital payments has been the toughest hurdle for the financial services industry to overcome,” Kosta Peric, Financial Services for the Poor deputy director at the Gates Foundation, said in the press statement. “With Mojaloop, our technology partners have finally achieved a solution that can apply to any service, and we invite banks and the payments industry to explore and test this tool.”

Aside from Ripple, the Gates Foundation also worked with other financial technology companies to make Mojaloop easily accessible. An open application programming interface (API) for mobile systems companies developed by Ericsson, Huawei, Telepin, and Mahindra Comviva will make it easier for mobile money providers to integrate their services with, and build products for, Mojaloop. Interested software developers can view the code here.

Mojaloop is yet another example of how blockchain is breaking the traditional financial service setup, which ends up benefitting a greater number of people. As the foundation notes, it’s a step at leveling the economic playing field “by crowding in expertise and resources to build inclusive payment models to benefit the world’s poor.”


Bri Stuff

Dash ~ Dash ~



Dash Network

IBM Blockchain Blockchain technologies present opportunities for disruptive innovation. It enables global business transactionns with less friction and more trust.

CryptoID: Dash Blockchain Explorer

Dash Homepage A revolutionary digital money system.

Evolution’s mission is to make digital cash easy to use and access for all users, even those who aren’t technologically savvy. Anybody will be able to setup an account on the blockchain, add contacts and pay them by name. Purchases from websites or mobile apps will be simple, requiring only a single click.

Prototype video. There is a registration process and then validation of email. Then you can log in, invite people, send payments by alias along with transaction descriptions. Shows up in their wallet as well. Electrum client. Decentralized, uses web sockets. Can build other functions on top of this, like asking network to send out messages to users. Can also send messages from one user to another. Friends can send messages between selves.

Dash Network Market shows values of coins. Treasury shows Governance Tools, includes Dash Central.

Monero is a secure, private, and untraceable cryptocurrency. It is open-source and accessible to all. With Monero, you are your own bank. Only you control and are responsible for your funds. Your accounts and transactions are kept private from prying eyes.

Monero (XMR) is a privacy-focused cryptocurrency that is not based on Bitcoin's code. Monero aims to be a fungible and untraceable digital medium of exchange. It intrinsically has a higher degree of privacy than Bitcoin or any of its various forks.Apr 25, 2014

Zcash is the latest kid on the block of cryptocurrencies – a wave ushered by bitcoin back in 2008. ... Zooko Wilcox, Founder and CEO of Zcash, told Investopedia, “Zcash is a new blockchain and cryptocurrency which allows private transactions (and generally private data) in a public blockchain.Nov 10, 2016

Dash (formerly known as Darkcoin and XCoin) is an open source peer-to-peer cryptocurrency that offers instant transactions (InstantSend), private transactions (PrivateSend) and token fungibility [mutually interchangeable]. It was rebranded from "Darkcoin" to "Dash" on March 25, 2015, a portmanteau of "Digital Cash".Apr 29, 2017

Dash (DASH) is a privacy-centric digital currency with instant transactions. ... With Bitcoin, transactions are published to the blockchain and you can prove who made them or to whom, but with Dash the anonymization technology makes it impossible to trace them.

How do you get monero?
Go to www.shapeshift.io . On the righthand side, of the screen, click icon under "Receive" to select Monero. Go back to your circle.com page, hit the "transfer" button, and paste the bitcoin address into the field Enter the amount of bitcoin you would like to spend. You will get a text message verificaiton code.

What is a dash Masternode?
Think of a masternode as a savings account with a minimum deposit of 1,000 DASH. A traditional savings account pays interest, and a masternode pays rewards which are very much like interest. In the case of a masternode, the reward (or interest) comes from performing services for the network.

What is a Cryptonight?
CryptoNight is a proof-of-work algorithm. It is designed to be suitable for ordinary PC CPUs, but currently no special purpose devices for mining are available. Therefore, CryptoNight can only be CPU-mined for the time being. CryptoNight was originally implemented in the CryptoNote codebase.Jun 19, 2014

What is a Cryptonote?
CryptoNote is an application layer protocol that powers several decentralized privacy oriented digital currencies. It aims to be an evolution of the ideas behind bitcoin.

What is hashing power?
The hash rate is the measuring unit of the processing power of the Bitcoin network. The Bitcoin network must make intensive mathematical operations for security purposes. When the network reached a hash rate of 10 Th/s, it meant it could make 10 trillion calculations per second.

Some Bitcoin words Bitcoin provides a new approach to payments and, as such, there are some new words that might become a part of your vocabulary.

What is a Masternode?
Masternodes are computers that run a dash wallet and make decisions, such as locking transactions with InstantSend, coordinate mixing of coins, and voting on budget funding. ... Typically, around 2 dash is paid to each masternode every 7 days. Masternodes enable the following services: InstantSend (instant transactions).

What is a bytecoin?
Bytecoin is an open decentralized cryptocurrency. Anyone interested can join Bytecoin network and take part in currency development. As well as the Internet, Bytecoin is international by its nature. ... In order to distinguish Bytecoin network from Bytecoin currency, the latter is referred to as BCN.

Dash Mining The foundation of Dash is its blockchain, which is a decentralized ledger of all transactions that have ever taken place. This blockchain is secured through a consensus mechanism called “Proof of Work” (PoW). Through a process called “mining,” people use specialized computers to solve extremely difficult math problems. If their solution is correct, they receive the right to add a new block to the blockchain. Once the network verifies that the problem was correctly solved, a new block is added to the blockchain and the miner is rewarded with Dash currency.

ASIC Miner Hardware
Specialized computers called Application Specific Integrated Circuits (ASICs) are designed to solve Dash’s Proof of Work problems with the greatest possible efficiency. Current Dash ASICs on the market include:

Dash (cryptocurrency) From Wikipedia, the free encyclopedia

Dash (formerly known as Darkcoin and XCoin) is an open source peer-to-peer cryptocurrency that aims to be the most user-friendly and most on-chain-scalable cryptocurrency in the world. On top of Bitcoin's feature set, it currently offers instant transactions (InstantSend), private transactions (PrivateSend) and operates a self-governing and self-funding model that enables the Dash network to pay individuals and businesses to perform work that adds value to the network. Dash's decentralized governance and budgeting system makes it a decentralized autonomous organization (DAO)

History

Dash was originally released as XCoin (XCO) on January 18, 2014. On February 28, the name was changed to "Darkcoin." On March 25, 2015, Darkcoin was rebranded as "Dash." Dash is a portmanteau of "Digital Cash."

Within the first two days of launch, 1.9 million coins were mined, which is approximately 10% of the total supply that will ever be issued. Creator and lead developer of Dash, Evan Duffield, attributed this to a bug created when the Litecoin code was forked [] to create Dash, "which incorrectly converted the difficulty, then tried using a corrupt value to calculate the subsidy"

Blockchain Blog: What the scheduled Bitcoin hard fork means for Blockchain Wallet Users

Forks Explained a fork is a technical event that occurs because diverse participants need to agree on common rules.

At its most basic, a fork is what happens when a blockchain diverges into two potential paths forward — either with regard to a network’s transaction history or a new rule in deciding what makes a transaction valid.

As a result, those who use the blockchain have to show support for one choice over the other.

Yet, there are many different types of forks, and the science of studying them is still new. So far, we know some forks resolve on their own, but others, fueled by deep rifts in a community, can cause a network to permanently split, creating two blockchain histories — and two separate currencies.

Along with that, there has also been confusion about the various types of forks, how they get activated and the risks they pose.

Before we get into the classifications, it's worth noting that bitcoin forks already occur quite regularly.

A byproduct of distributed consensus, forks happen anytime two miners find a block at nearly the same time. The ambiguity is resolved when subsequent blocks are added to one, making it the longest chain, while the other block gets "orphaned" (or abandoned) by the network.

But forks also can be willingly introduced to the network. This occurs when developers seek to change the rules the software uses to decide whether a transaction is valid or not.

When a block contains invalid transactions, that block is ignored by the network, and the miner who found that block loses out on a block reward. As such, miners generally want to mine only valid blocks and build on the longest chain.

Following are some of the more common forks and their traits.

Hard fork

A hard fork is a software upgrade that introduces a new rule to the network that isn't compatible with the older software. You can think of a hard fork as an expansion of the rules. (A new rule that allows block size to be 2MB instead of 1MB would require a hard fork).

What happens? Nodes that continue running the old version of the software will see the new transactions as invalid. So, to switch over to the new chain and to continue to mine valid blocks, all of the nodes in the network need to upgrade to the new rules.

What can go wrong? The problem comes when some sort of political impasse arises, and a portion of the community decides to stick by the old rules no matter what. The hash rate, or network computing power, behind the old chain is irrelevant. What matters is that its data (and ruleset) is still perceived to have value, meaning miners still want to mine a chain and developers still want to support it.

The ethereum DAO hard fork was a perfect case study of how a community can split over rules. Now, we have two blockchains using a variant of the software – ethereum and ethereum classic, both of which boast a different ethos and a different currency.

Soft fork

A soft fork, by contrast, is any change that's backward compatible. Say, instead of 1MB blocks, a new rule might only allow 500K blocks.

What happens? Non-upgraded nodes will still see the new transactions as valid (500k is less than 1MB in this example). However, if non-upgraded nodes continue to mine blocks, the blocks they mine will be rejected by the upgraded nodes. This is why soft forks need a majority of hash power in the network.

What can go wrong? When a soft fork is supported by only a minority of hash power in the network, it could become the shortest chain and get orphaned by the network. Or, it can act like a hard fork, and one chain can splinter off.

Soft forks have been the most commonly used option to upgrade the bitcoin blockchain so far because it's argued they present a lower risk of splitting the network. Past examples of successful soft forks include software upgrades like BIP 66 (which dealt with signature validation) and P2SH (which altered bitcoin's address formatting).

User-activated soft fork

A user-activated soft fork (UASF) is a controversial idea that explores how a blockchain might add an upgrade that is not directly supported by those who provide the network's hashing power.

The idea with UASF is that instead of waiting for a threshold of support from mining pools, the power to activate a soft fork goes to the exchanges, wallets and businesses who are running full nodes. (In bitcoin, a full node, even if it is not a mining node, is still responsible for validating blocks.)

What happens? The majority of major exchanges would need to publicly support the change before it could be written into a new version of code. After that, the new software (which has an activation point in the future) gets installed on nodes that want to participate in the soft fork.

What can go wrong? This method requires a much longer lead time to work than a hash-power-triggered soft fork. In fact, it's believed it may take as long as a year or more to write the code and get everyone ready.

Further, if the majority of miners end up not ‘falling in line’ and activating the new rules, they could use their overwhelming hash power to split the network.

Currently this idea is theoretical and has not been implemented.

[The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.]

Once the problem was resolved, Evan offered to relaunch the coin, but the community overwhelmingly disapproved. He suggested an "airdrop" of coins in order to broaden the initial distribution but the community also disapproved of this proposal. As such, the initial distribution was left alone and development of the project continued. The majority of mined coins were distributed on cryptocurrency exchanges in the following months at very low price levels.

The Dash Core Team, responsible for developing the currency, has since grown to 30 full-time employees, 20 part-time employees, and dozens of unpaid volunteers. All Core Team employees are paid from Dash's budget system and therefore are not reliant on donations or sponsorships that can lead to conflicts of interest.

According to CoinMarketCap, in June 2017 the daily trade volume of Dash was approximately $100 million per day and the market capitalization of Dash exceeded $1.4 billion. Dash has become the most active altcoin community on BitcoinTalk reaching more than 6400 pages, 133k replies, 7.9M reads.

Governance and funding

Dash is the first decentralized autonomous organization powered by a Sybil proof decentralized governance and funding system.

Decentralized Governance by Blockchain (DGBB), often referred to simply as the "treasury system" is a means of coming to consensus on proposed network changes and funding development of the Dash ecosystem. Ten percent of the block rewards go to this "treasury" in order to pay for projects that benefit Dash.

Funding from the treasury system has been used to hire additional developers and other employees, to fund attendance at conferences, and to fund integrations with major exchanges and API providers.

Each masternode operator receives one vote. Proposals are eligible for funding according to the following formula: (YES VOTES - NO VOTES) > (TOTAL NUMBER OF MASTERNODES * 0.1). If there are more proposals that meet that criterion than there are budget funds for the month, then the proposals with the highest number of net votes will be paid.

Community interaction with proposal submitters is done through the dash.org forums, or through community-driven websites, like DashCentral. These websites allow proposal submitters to provide multiple drafts, then lobby for community support before finally submitting their project to the network for a vote.

After the submitter has enough support, the network will automatically pay out the required funds in the next super block, which happens monthly.

The funding system has seen revenue growth. In September 2015, the treasury system provided $14,000 in funding per month. Due to increases in the value of Dash, as of May 2017 the treasury system provides over $650,000 per month in funding. The treasury system has created a positive feedback loop, whereby additional development increases the value of Dash, which increases the amount of funding provided by the budget system.

Dash (DASH) price stats and information

COINDASH Coindash is your tool to manage, track, analyse, and get a birds eye view of your crypto assets.

Blockchain U: Arizona State and Digital Currency: the risks of investing in cryptocurrency Very volatile. Scams are rampant. IRS goes after people who don't report gains.

Dash’s Past, and Future: An Editorial At press time, Dash has a market capitalization of nearly $3 billion and is one of the oldest-surviving altcoins. The project is about to host its first conference, Dash Conference 2017 in London, and is funding the largest cryptocurrency sponsorship in history.

So how did we get here? In my opinion, it comes down to two things: the founder’s genius and Dash’s treasury system.

Down memory lane

My involvement with Dash, then called Darkcoin, began just before the launch of “release candidate 3,” or “RC3” for short. The launch failed, causing uncontrollable forking across the network. Evan fixed some bugs and tried to launch the upgrade again. Once again, the network forked repeatedly and the code had to be rolled back.

When anybody asks why Dash succeeded while so many other altcoins failed, the first thing I do is point to Evan. His genius and determination carried Dash through the early months and years. When faced with the failure of RC3, Evan came up with another plan: he could launch a hard fork by starting it off as a soft fork.

With a soft fork, all the clients on the network are still compatible. Only upgraded clients can use the new features, but all clients interact with each other without destabilizing the network. However, the changes Evan wanted to make with RC3 would require a hard fork that would make older, non-upgraded nodes incompatible. Unless the vast majority of nodes upgraded at the exact same time, chaos would ensue.

Evan realized that he could ask the network to upgrade to the new RC3 software, but leave the incompatible bits of the upgrade turned off. Then, once an overwhelming majority of the network had upgraded, he could send a message to the network to turn the new code “on.” At this point there would no longer be any danger to the network, since virtually everybody had upgraded and would be running the same version.

This approach worked, and has been used in every Dash software upgrade since RC3. The community affectionately labelled the new method “the spork.”

Treasury

In August 2015, a new feature was added to Dash: the treasury system. Officially called “decentralized governance by blockchain,” the system would allow masternode owners to vote on budget proposals. These proposals would be funded directly by the Blockchain from a portion of the block reward.

A digital currency had finally come up with a way to fund itself without depending on donations. Not only that, but Dash now had a governance system that would allow the owners of Dash’s currency to vote on the direction the project should take.

The market reacted to this revolution...not at all. The price didn’t budge.

In time, however, the treasury system would become Dash’s quintessential feature. As Evan correctly predicted:

“To guarantee the long term sustainability of the blockchain, the network would keep a portion of the block rewards in escrow and the masternode operators would be tasked to act as stewards and invest in the maintenance and expansion of the network. This will result in faster development and promotion, creating a virtuous cycle that benefits all actors, including miners, masternode operators, investors and users. More importantly, this gives the blockchain itself a self-preservation mechanism that is beyond the control of any individual.”

Just two years ago, Dash’s monthly treasury budget was $15,000. Today it’s $2.4 million.

Keiser sponsorship
The Dash network recently approved the largest-ever cryptocurrency sponsorship, paying $500,000 to sponsor Max Keiser’s “Great American Pilgrimage” tour. The tour is hosted by the RT network, reaching 700 million global viewers.

CT: Can Dash co-exist with Bitcoin and Ethereum, or must there eventually only be one "winner"

MK: The crypto market is heading to $5 trillion and above. There will be many winners.

CT: In your opinion, what is the single most important part of Dash? Can you pinpoint any one thing that will drive its success?

MK: The governance model is outstanding. The community is fantastic.

Thoughts on the future
A working governance and funding model gives Dash a big advantage in the marketplace. As Max says, however, this is no zero-sum industry. As digital currency becomes mainstream, many different currencies are likely to thrive. Now is not the time to grow insular and proclaim that only “our” coin will survive. A rising tide lifts all boats.

Bitcoin Mag. Op Ed: A Closer Look Into DASH (Part 1) Digital Cash (DASH) is a proof of work digital currency with self-governance and self-funding capabilities through the use of masternodes (MNs).

DASH has the following block-reward structure:

- 45 percent of block rewards for DASH go to miners

- 45 percent goes toward MNs

- 10 percent goes toward the Decentralized Governance Budget

In order to set up a masternode, 1000 DASH is required as collateral. MNs help to secure the DASH network and allow for DASH users to send private transactions through PrivateSend (a form of coin mixing). MNs are also able to vote on how the Decentralized Governance Budget is used.

Bankless Times: Dash, BlockCypher launch grant program for blockchain-focused companies


Forks

A Short Guide to Bitcoin Forks. ... At its most basic, a fork is what happens when a blockchain diverges into two potential paths forward — either with regard to a network's transaction history or a new rule in deciding what makes a transaction valid.Mar 27, 2017

Forks Explained a fork is a technical event that occurs because diverse participants need to agree on common rules.

At its most basic, a fork is what happens when a blockchain diverges into two potential paths forward — either with regard to a network’s transaction history or a new rule in deciding what makes a transaction valid.

As a result, those who use the blockchain have to show support for one choice over the other.

Yet, there are many different types of forks, and the science of studying them is still new. So far, we know some forks resolve on their own, but others, fueled by deep rifts in a community, can cause a network to permanently split, creating two blockchain histories — and two separate currencies.

Along with that, there has also been confusion about the various types of forks, how they get activated and the risks they pose.

Before we get into the classifications, it's worth noting that bitcoin forks already occur quite regularly.

A byproduct of distributed consensus, forks happen anytime two miners find a block at nearly the same time. The ambiguity is resolved when subsequent blocks are added to one, making it the longest chain, while the other block gets "orphaned" (or abandoned) by the network.

But forks also can be willingly introduced to the network. This occurs when developers seek to change the rules the software uses to decide whether a transaction is valid or not.

When a block contains invalid transactions, that block is ignored by the network, and the miner who found that block loses out on a block reward. As such, miners generally want to mine only valid blocks and build on the longest chain.

Following are some of the more common forks and their traits.

Hard fork

A hard fork is a software upgrade that introduces a new rule to the network that isn't compatible with the older software. You can think of a hard fork as an expansion of the rules. (A new rule that allows block size to be 2MB instead of 1MB would require a hard fork).

What happens? Nodes that continue running the old version of the software will see the new transactions as invalid. So, to switch over to the new chain and to continue to mine valid blocks, all of the nodes in the network need to upgrade to the new rules.

What can go wrong? The problem comes when some sort of political impasse arises, and a portion of the community decides to stick by the old rules no matter what. The hash rate, or network computing power, behind the old chain is irrelevant. What matters is that its data (and ruleset) is still perceived to have value, meaning miners still want to mine a chain and developers still want to support it.

The ethereum DAO hard fork was a perfect case study of how a community can split over rules. Now, we have two blockchains using a variant of the software – ethereum and ethereum classic, both of which boast a different ethos and a different currency.

Soft fork

A soft fork, by contrast, is any change that's backward compatible. Say, instead of 1MB blocks, a new rule might only allow 500K blocks.

What happens? Non-upgraded nodes will still see the new transactions as valid (500k is less than 1MB in this example). However, if non-upgraded nodes continue to mine blocks, the blocks they mine will be rejected by the upgraded nodes. This is why soft forks need a majority of hash power in the network.

What can go wrong? When a soft fork is supported by only a minority of hash power in the network, it could become the shortest chain and get orphaned by the network. Or, it can act like a hard fork, and one chain can splinter off.

Soft forks have been the most commonly used option to upgrade the bitcoin blockchain so far because it's argued they present a lower risk of splitting the network. Past examples of successful soft forks include software upgrades like BIP 66 (which dealt with signature validation) and P2SH (which altered bitcoin's address formatting).

User-activated soft fork

A user-activated soft fork (UASF) is a controversial idea that explores how a blockchain might add an upgrade that is not directly supported by those who provide the network's hashing power.

The idea with UASF is that instead of waiting for a threshold of support from mining pools, the power to activate a soft fork goes to the exchanges, wallets and businesses who are running full nodes. (In bitcoin, a full node, even if it is not a mining node, is still responsible for validating blocks.)

What happens? The majority of major exchanges would need to publicly support the change before it could be written into a new version of code. After that, the new software (which has an activation point in the future) gets installed on nodes that want to participate in the soft fork.

What can go wrong? This method requires a much longer lead time to work than a hash-power-triggered soft fork. In fact, it's believed it may take as long as a year or more to write the code and get everyone ready.

Further, if the majority of miners end up not ‘falling in line’ and activating the new rules, they could use their overwhelming hash power to split the network.

Currently this idea is theoretical and has not been implemented.

[The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.]

Once the problem was resolved, Evan offered to relaunch the coin, but the community overwhelmingly disapproved. He suggested an "airdrop" of coins in order to broaden the initial distribution but the community also disapproved of this proposal. As such, the initial distribution was left alone and development of the project continued. The majority of mined coins were distributed on cryptocurrency exchanges in the following months at very low price levels.

The Dash Core Team, responsible for developing the currency, has since grown to 30 full-time employees, 20 part-time employees, and dozens of unpaid volunteers. All Core Team employees are paid from Dash's budget system and therefore are not reliant on donations or sponsorships that can lead to conflicts of interest.

According to CoinMarketCap, in June 2017 the daily trade volume of Dash was approximately $100 million per day and the market capitalization of Dash exceeded $1.4 billion. Dash has become the most active altcoin community on BitcoinTalk reaching more than 6400 pages, 133k replies, 7.9M reads.

Governance and funding

Dash is the first decentralized autonomous organization powered by a Sybil proof decentralized governance and funding system.

Decentralized Governance by Blockchain (DGBB), often referred to simply as the "treasury system" is a means of coming to consensus on proposed network changes and funding development of the Dash ecosystem. Ten percent of the block rewards go to this "treasury" in order to pay for projects that benefit Dash.

Funding from the treasury system has been used to hire additional developers and other employees, to fund attendance at conferences, and to fund integrations with major exchanges and API providers.

Each masternode operator receives one vote. Proposals are eligible for funding according to the following formula: (YES VOTES - NO VOTES) > (TOTAL NUMBER OF MASTERNODES * 0.1). If there are more proposals that meet that criterion than there are budget funds for the month, then the proposals with the highest number of net votes will be paid.

Community interaction with proposal submitters is done through the dash.org forums, or through community-driven websites, like DashCentral. These websites allow proposal submitters to provide multiple drafts, then lobby for community support before finally submitting their project to the network for a vote.

After the submitter has enough support, the network will automatically pay out the required funds in the next super block, which happens monthly.

The funding system has seen revenue growth. In September 2015, the treasury system provided $14,000 in funding per month. Due to increases in the value of Dash, as of May 2017 the treasury system provides over $650,000 per month in funding. The treasury system has created a positive feedback loop, whereby additional development increases the value of Dash, which increases the amount of funding provided by the budget system.


Bitcoin Cash

Wikipedia: Bitcoin Cash Bitcoin Cash (BCH/BCC) is a hard fork of the cryptocurrency bitcoin. The fork occurred on August 1, 2017

On July 20, 2017, the bitcoin miners voted, 97% in favor, on the Bitcoin Improvement Proposal (BIP) 91. The proposal, by Bitmain Warranty engineer James Hilliard, was to activate Segregated Witness (SegWit).

Tax implications: Americans wondering whether their acquisition of Bitcoin Cash is taxable as income, or not taxable as a division of property, have received no guidance from the Internal Revenue Service.

Bitcoin Cash homepage Bitcoin Cash brings sound money to the world, fulfilling the original promise of Bitcoin as "Peer-to-Peer Electronic Cash". Merchants and users are empowered with low fees and reliable confirmations. The future shines brightly with unrestricted growth, global adoption, permissionless innovation, and decentralized development.

All Bitcoin holders as of block 478558 are also owners of Bitcoin Cash.

New Features:

On Chain Scalability
New Transaction Signatures
New Difficulty Adjustment Algorithm (DAA)
Decentralized Development

What is Bitcoin Cash?

Bitcoin Cash is peer-to-peer electronic cash for the Internet. It is fully decentralized, with no central bank and requires no trusted third parties to operate.

Is Bitcoin Cash different from 'Bitcoin'?

Yes. Bitcoin Cash is the continuation of the Bitcoin project as peer-to-peer digital cash. It is a fork of the Bitcoin blockchain ledger, with upgraded consensus rules that allow it to grow and scale.

Why was a fork necessary to create Bitcoin Cash?

The legacy Bitcoin code had a maximum limit of 1MB of data per block, or about 3 transactions per second. Although technically simple to raise this limit, the community could not reach a consensus, even after years of debate.

Does Bitcoin Cash fix these problems?

Yes. Bitcoin Cash immediately raised the block size limit to 8MB as part of a massive on-chain scaling approach. There is ample capacity for everyone's transactions.

Low fees and fast confirmations have returned with Bitcoin Cash. The network is growing again. Users, merchants, businesses, and investors are building the future with real peer to peer cash.

Cryptocurrency Market Capitalizations Bitcoin Cash (BCH) $1182.40 as of 11/21/17

Why the Bitcoin network just split in half and why it matters Two rival versions of Bitcoin might be better than one.

On Tuesday, a faction of the Bitcoin community launched an audacious experiment: a new version of Bitcoin called Bitcoin Cash that's incompatible with the standard version. As a result, the Bitcoin network split into two mutually incompatible networks that will operate side-by-side.

The confusing result is that if you owned one bitcoin before the split you own two bitcoins now: one coin on the original Bitcoin network, and a second coin on the new Bitcoin Cash network. The two coins have the same cryptographic credentials, but they have very different values if you sell them for old-fashioned dollars. On Wednesday morning, one standard Bitcoin was worth about $2,700, while—on paper at least—a unit of Bitcoin Cash was worth around $600.

Getting Bitcoin Cash off the ground is a remarkable achievement. The big question now is whether the network's supporters can keep it aloft in the coming weeks and months. So far, most of the Bitcoin community has chosen to stick with the mainstream Bitcoin software and network. If Bitcoin Cash can't attract a critical mass of users and businesses, the rival payment network could wither on the vine.

If Bitcoin Cash does achieve critical mass, on the other hand, its future could be bright. It was created by Bitcoin supporters worried about growing congestion in the mainstream bitcoin network that has led to slow payment processing and high fees. Bitcoin Cash removes an important technical obstacle that has hampered the growth of the mainline Bitcoin network. In principle, that could allow Bitcoin Cash to become more widely used—and hence more valuable—in the long run.

Forking the blockchain allows the creators of Bitcoin Cash to position themselves as the true heirs to Bitcoin's still-pseudonymous founder Satoshi Nakamoto. The Bitcoin Cash faction views themselves not as creating an alternative to Bitcoin, but as laying the groundwork for the next stage of Bitcoin's growth. They believe that the higher block limit will allow Bitcoin Cash to overtake the standard Bitcoin network in transaction volume, eventually making it the most popular version of the technology.

In the short term, one of Bitcoin Cash's big challenges will be a shortage of miners. These are the people who participate in Bitcoin's decentralized transaction-clearing process. Bitcoin miners race to solve a hard mathematical problem—calculating hash functions over and over again until they find one starting with a minimum number of zeros—and the first miner to solve the problem gets to add a block to the blockchain and claim a reward of 12.5 bitcoins. The network periodically adjusts the difficulty of the problem to ensure that it's solved every 10 minutes, on average.

The difficulty of this problem was calibrated to the amount of computing power that existed on the Bitcoin network prior to the split. But only a small minority of computers that had been mining on the main Bitcoin network have switched to Bitcoin Cash. With less computing power, Bitcoin Cash miners are finding blocks much more slowly: fewer than once per hour, on average, compared with once every 10 minutes on the main blockchain. That means users of Bitcoin Cash will need to wait a lot longer—hours rather than 30 to 60 minutes—to be sure that their Bitcoin Cash payments are final.


Bitcoin Gold

Bitcoin Gold homepage Bitcoin Gold is a fork of the Bitcoin blockchain. At block 491407, Bitcoin Gold miners will begin creating blocks with a new proof-of-work algorithm, and this will cause a bifurcation of the Bitcoin blockchain. The original Bitcoin blockchain will continue on unaltered, but a new branch of the blockchain will split off from the original chain. The new branch is a distinct blockchain with the same transaction history as Bitcoin up until the fork, but then diverges from it. As a result of this process, a new cryptocurrency is born.

The purpose of Bitcoin Gold is to make Bitcoin mining decentralized again. Satoshi Nakamoto’s idealistic vision of “one CPU one vote” has been superseded by a reality where the manufacture and distribution of mining equipment has become dominated by a very small number of entities, some of which have engaged in abusive practices against individual miners and the Bitcoin network as a whole.

By changing Bitcoin’s proof-of-work algorithm from SHA256 to Equihash, all of the specialized SHA256 mining equipment will be obsolete for mining the Bitcoin Gold blockchain. Thus, Bitcoin Gold will provide an opportunity for countless new people around the world to participate in the mining process with widely-available consumer hardware that is manufactured and distributed by reputable mainstream corporations. A more decentralized, democratic mining infrastructure is more resilient and more in line with Satoshi’s original vision.


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Bankless Times BanklessTimes is dedicated to bringing the latest news, transparency, and accountability to alternative business and consumer finance. [lots on cryptocurrency]

We are focused on the rapidly growing alternative finance market, including peer-to-peer lending, crowdfunding, private consumer credit, online banking and savings, real estate crowdfunding, investments and more. BanklessTimes is meta-site publishing model publishing original content.

With Regulation A+ and a continued move towards the mainstream, alternative finance is disrupting the status quo so it is clear it will not be alternative for long.

We’re continuously breaking news on industry moves, and we provide borrowers and private lenders the information they need to challenge the status quo in banking and finance, so they can make informed lending and borrowing decisions and do better financially.

We provide original, in-depth reporting on alt-fi like no other outlet.

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Articles

WANT FASTER BITCOIN TRANSACTIONS AND LOWER FEES? TRY THESE WORKAROUNDS Your Bitcoin transactions don’t have to be expensive and slow. With a little bit of know-how and pre-planning, you can keep transaction times and fees at a manageable level.

Senior Intel Corp. Scientist Predicted Bitcoin In Cryptography Manifesto—In 1994 Bitcoin is one of the "sophisticated financial alternatives to the dollar" that was predicted in a 1994 manifesto from a senior Intel Corporation scientist.

By John Vibes - December 18, 2017

The world may never know the true identity (or identities) of Satoshi Nakamoto, the mysterious creator of Bitcoin, but the idea of cryptocurrency has actually been popular among crypto-anarchists and privacy experts for decades.

CRYPTOCURRENCY IS HALF A TRILLION: JOINT MARKET CAP HITS $500 BILLION

BITCOIN BREAKS CBOE – WEBSITE CRASHES AS FUTURES TRADING BEGINS CBOE’s website crashed within moments of the exchange opening on Sunday, unable to handle the massive influx of traffic resulting from the launch of its Bitcoin futures contract. The launch, which marks the first time that Bitcoin futures have traded on a major exchange, has been making headlines since it was first announced just five short days ago.

BITCOIN MAKES ITS GRAND ENTRANCE ONTO THE MAINSTREAM STAGE Escorted by futures trading contracts, Bitcoin has entered into the circle of mainstream finance. This event was marked by the CBOE Global Markets’ launch of Bitcoin futures contracts, on Sunday, December 10, 2017, opening the door to the cryptocurrency market for institutional investors’ trillions of dollars. Moreover, Bitcoin futures has moved the rollout of Bitcoin ETFs one giant step closer to reality.

BITCOIN FUTURES COULD BRING TRILLIONS INTO THE CRYPTO MARKET

Feds Steal $1.74 Billion in Bitcoin, Kidnap Man for Life for Building Website that Used It By John Vibes - December 3, 2017

As Bitcoin's popularity soars, one of its early adopters is currently serving a life sentence for creating a website that popularized the cryptocurrency.


Before Bitcoin became the newest tech and investment craze, it was seen as the currency of the black market which was used to buy and sell drugs on the infamous “dark web.” In fact, one of the early adopters of Bitcoin is currently serving a life sentence for creating one of the first websites that popularized the cryptocurrency.

He was one of the first people to find a way to utilize Bitcoin that the mainstream could understand, which brought the technology into pop culture. His name is Ross Ulbricht and he is the founder of the Silk Road, the anonymous online marketplace which became a target for politicians and law enforcement because of the large volume of drugs that were being sold through the site.

On the Silk Road, drug users and vendors were able to trade anonymously using Bitcoin, making it one of the first major commerce platforms to adopt the cryptocurrency.

Even though Ulbricht did nothing but create a website—just like the famous billionaires Mark Zuckerberg or Jeff Bezos—he was treated like El Chapo in court because his invention worked against the system, instead of for it.

One important point that was heavily overlooked by the media during the Ulbricht trial was the fact that the Silk Road actually made the world a safer place by undermining prohibition. Even though drugs are illegal, large numbers of people still use them on a regular basis and these people are often put into dangerous situations because of these prohibitions.

The Silk Road allowed people to purchase drugs from the comfort of their living room to avoid the risk of getting mugged in a dark alleyway. It also allowed them to read reviews of the products that their potential dealer was selling, saving them from tainted drugs and dirty batches that could put their lives at risk.

Ross Ulbricht should have gotten the Nobel Prize for his visionary application of a new and revolutionary technology, but instead, he was arrested in October 2013 and has been sitting in federal prison ever since, awaiting a break in his case, or the end of the drug war. With his arrest, the FBI seized 174,000 Bitcoins, which was worth $34.5 million at the time. Today the Bitcoins stolen from Ulbricht are worth roughly $1,740,000,000 or $1.74 billion, and there is no telling what the government has done with that money.

Even now that the cryptocurrency is appearing on mainstream television and reaching a market cap that rivals that of major banks, governments still have no clue how to deal with a technology that allows citizens to easily avoid taxes and trade in prohibited goods off the radar. Just this week, Nobel Prize-winning economist Joseph Stiglitz called for the cryptocurrency to be banned, saying that “Bitcoin is successful only because of its potential for circumvention, lack of oversight….So it seems to me it ought to be outlawed.”

Meanwhile, Coinbase, one of the world’s largest Bitcoin exchanges has announced that the IRS is forcing them to hand over the information of anyone who has had more than $20,000 flowing through the site in the past year.

IS BITCOIN SHIFTING THE ECONOMIC BALANCE OF POWER? In just a few years of existence, Bitcoin has become the 6th most powerful currency on the globe. Bitcoin now has more value than many developed nations and industry giants, while eclipsing some of the wealthiest people in the world.

Bitcoin is radically changing the way we do things, and even, possibly, our way of life. And, most probably, the cryptocurrency might be causing a shift in the global economic balance of power in inexplicable ways.

Indeed, Bitcoin’s spectacular price trajectory has pushed its market capitalization, as of this writing, to more than $192 billion USD. As a result, Bloomberg reports,

“Bitcoin’s extraordinary price surge means its market capitalization now exceeds the annual output of whole economies and the estimated worth of some of the world’s top billionaires.”

Bloomberg article reports that Bitcoin is now stronger in asset value than New Zealand, Boeing, Bill Gates, Queen Elizabeth, and the Oracle of Omaha, super-billionaire Warren Buffett.

BITCOIN IS DEFYING THE ECONOMIC STATUS QUO

Bitcoin is now the 6th largest currency in the world, as shown in the table below.


Certainly, the rapid rise of Bitcoin baffles and upsets many economists and financial experts such as Joseph E. Stiglitz, and Warren Buffett, respectively.

Bloomberg reports that Buffett has said, “People get excited from big price movements, and Wall Street accommodates … You can’t value bitcoin because it’s not a value-producing asset.” Buffet has also said that Bitcoin is a “real bubble.”

Bitcoin and its blockchain technology have placed our civilization at the threshold of a new, far-reaching technological, economic, and social revolution. This revolution provides us with a unique opportunity to shift the obsolete and unfair existing monetary and banking system toward a more equitable and just economic system.

Bitcoin Just Passed $10,000. It's Officially One of the World's 30 Largest Currencies. Bitcoin has reached a new all-time high — and a pretty historic one at that. It's reached $10,000, exceeding economists' predictions and putting it on track to hit $25,000 within the next 5 years.

LOCALBITCOINS SETS BIGGEST GAIN EVER AS VENEZUELANS EXIT FIAT Bitcoin’s price spike and increasing adoption have fuelled a Localbitcoins trading surge that has dwarfed any in the cryptocurrency’s history.

$90 MILLION IN A WEEK

Data from Coin Dance tracking trading on popular p2p trading platform Localbitcoins shows that for the week ending Saturday, December 2, almost $90 million passed through worldwide.

The huge uptick puts last week clear ahead of Localbitcoins’ previous busiest week, which occurred mid-September and saw it handle $71 million.

As Bitcoin grows to trade above $11,000 for a third time in a week, entry-level users across the globe have begun to experiment with both trading and ownership. Additional publicity in the mainstream press has contributed to the wave of adoption, with multiple countries posting record highs on Localbitcoins.

In Venezuela, the market which has become a crucible for mass consumer adoption of Bitcoin as a replacement for sovereign currency, sources report the trend is accelerating quicker than ever.

Stories posted to Reddit refer to citizens selling all their assets to trade for Bitcoin before attempting to leave the crisis-hit country, where foreign currency access is all but impossible.

The chief instrument for the process, as data attests, is Localbitcoins.

“…Bitcoin allows us to have complete control over our funds, to hide them so bad people don’t know they even exist in our possessions,” a Reddit poster analyzing how Venezuelans are retaining financial stability explains.

"Plus we can really easily purchase them or sell them at a 3% exchange fee at localbitcoins, and doing so safely by choosing a seller/buyer who has 100% positive feedback, 1000+ transactions and at least 250BTC volume history on his account."

POLITICIANS ARE WORRIED ABOUT BITCOIN FUTURES LAUNCH The rise of Bitcoin has taken the political world by surprise, and now politicians are grappling with the choices on how to handle the advent of Bitcoin futures trading on the NASDAQ that has been approved by the Commodity Futures Trading Commission.

If there is anything that has surpassed human understanding, especially in the world of investment, it is the price of Bitcoin. Its percentage increase in price is in the thousands. Speculators who envision the rise of Bitcoin tend to end up underestimating the real price, and investors wake up and see their money tripled in just a single night. So what will happen if this kind of digital asset makes its way into the futures market? Well, it’s almost there.

NASDAQ has decided to launch Bitcoin futures in 2018. This announcement was made last week after an earlier announcement by CME that Bitcoin futures trading will now commence with approval from the Commodity Futures Trading Commission (CFTC).

Will authorities scrap this move? Will they twist state laws to favor or go against Bitcoin futures trading? Or will they institute a tax system for the trading of Bitcoin futures?

But one thing is for sure, these politicians have the ability to cause a lot of problems, and when it comes to technologies that they don’t understand or something they perceive as not being so beneficial to them and ‘the people,’ then the Bitcoin futures trade is bound to suffer through a lot of regulations.

AML BITCOIN CREATOR SAW EARLY WEAKNESS IN DIGITAL CURRENCY WORLD, INNOVATED SOLUTION AND FILED PATENTS WELL BEFORE WORLD FINANCIAL LEADERS Marcus Andrade, an early digital currency entrepreneur, saw the Bitcoin phenomenon as having immense potential but knew that the anonymity of the digital currency would eventually limit its reach. So, with his team of software engineers, Andrade created the world’s first digital currency that is compliant with the anti-money laundering and ‘know-your-customer’ (AML/KYC) laws that control most of the world’s financial systems.

Slate: Fool's Gold Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.

Bitcoin is a fantasy. The Internet’s currency—a secure, private, decentralized type of money that makes possible anonymous and virtually costless transactions across borders—contains the seeds of its own destruction. More than anything else, it resembles a Ponzi scheme—and the wild claims made on its behalf reveal a great deal about a libertarian strain of thinking with deep roots in the American psyche.

As Farhad Manjoo relates in his entertaining (but dubious) foray into the market, bitcoin is the brainchild of a person (or persons) called Satoshi Nakamoto. Computer users can “mine” bitcoins by instructing their computers to solve complex problems generated by the bitcoin network. As more bitcoins are produced, the problems become more complex, requiring more computer power to solve them, and this limits the total number of bitcoins that can be created over time.

Bitcoins are themselves simply strings of numbers. Once you own a bitcoin, you can transfer it to someone else (as a gift or to purchase goods) over the Internet. You can also convert it into dollars or other currencies on various exchanges. The Bitcoin network keeps track of where the bitcoins are located, so you cannot spend a single bitcoin over and over again by trying to transmit the identical code.

The currency was launched in 2009. It has traded for less than 1 cent. As recently as a year ago, a bitcoin was worth less than $5; this week the price of a bitcoin reached $266, an increase of more than 1,000 percent over the last three months, but then yesterday plunged to $105 before finishing off at $165 last I looked. More than 11 million bitcoins circulate, and so their aggregate value is fluctuating between $1 and $2 billion—a tiny fraction of the trillions of dollars in currency but not bad for the infant brainchild of an anonymous brain.

Bitcoin may be useful for certain types of transactions, especially illegal ones. But bitcoin’s defenders argue that the experiment has proved that a currency can come into existence and function without any government role, so designed as to make inflation impossible and bank transfer fees unnecessary. These features are supposed to make bitcoins irresistible for consumers. Meanwhile, stripped of the power to manipulate currencies to advance nefarious ends, governments will collapse, and we will live in an anarcho-utopia.

This is wrong, both theory and experience tell us. Bitcoin is not the first unregulated or private currency. Until central banks were invented in the 17th century, the money supply was unregulated even if governments did stamp coins.

Other unregulated or private currencies have emerged from time to time—think of cigarettes in prison camps. Gold, silver, bank notes, and all kinds of other things have played similar roles. Paul Krugman wrote a famous Slate piece about a private currency that was invented to facilitate the exchange of services in a baby-sitting co-op.

Felix Salmon and many others have pointed out that a currency cannot succeed with a supply that is fixed, or if it grows too slowly. A currency is used to enter transactions; the more transactions there are, the more of the money you need. As the economy grows, a fixed-supply currency becomes worth more in terms of goods and services, and people begin to hoard it—expecting that if they wait a little longer, they will be able to buy more. Once hoarding takes over, circulation ends, and with it the function of the currency. Hoarding accounts for the large increase in the value of bitcoins; hoarding also sank Krugman’s baby-sitting scrip.

An even more fundamental problem with bitcoins, and indeed any private currency, is that there is no way to limit its supply. True, bitcoins cannot be manufactured beyond the limits set by Nakamoto. But there is no way to prevent future Nakamotos from creating bitcoin substitutes—say, bytecoin, or botcoin.

If merchants are willing to accept bitcoins, they will be willing to accept the substitutes, especially as bitcoins become scarce and consumers scramble for substitutes. Nakamoto must have realized this because there are not enough bitcoins to substitute for the currencies around the world.

The currency can only succeed if it is expanded or supplemented. But if there are no constraints on substitute digital currencies—and there aren’t—then the value of bitcoins will plummet as the subs begin to circulate. And once it becomes clear that there is no limit, people will realize that their holdings could become worthless at any moment, and demand for bitcoins and the other currencies will collapse, ending the experiment.

Unless a bitcoin has value as a currency, it has no value at all, and its price in dollars will fall to zero. A regular Ponzi scheme collapses when people realize that earlier investors are being paid out of the investments of later investors rather than from the returns on an underlying asset.

Bitcoin will collapse when people realize that it can’t survive as a currency because of its built-in deflationary features, or because of the emergence of bytecoins, or both. A real Ponzi scheme takes fraud; bitcoin, by contrast, seems more like a collective delusion.

Given this, why all the enthusiasm for bitcoin? Partly, the technological ingenuity of the scheme, of course. And people have misinterpreted the run-up in price as a sign of success rather than failure. But more fundamentally, bitcoin unites futuristic left-wing Internet anarchism—the fantasy that the Web can provide the conditions for a governmentless society—with the cave-dwelling right-wing libertarianism of goldbugs who think a stable money supply can be established without government involvement.

It is proof for both that government is not needed for much, or at all.

Yet history shows that private currencies always end in tears; if central banks sometimes abuse the trust we place in them, the alternatives are worse. The strangest feature of the bitcoin saga is that people who are so suspicious of government put their trust in Satoshi Nakamoto, who could be anyone, or anyones—eccentric academic researchers, mischievous Fed economists, DARPA, U.N. globalizers in black helicopters, a criminal syndicate, a bored 11-year-old Ukrainian genius. If Nakamoto is as amoral as he is ingenious, then he pocketed the early bitcoins and laughed himself to the bank.

Digital gold: why hackers love Bitcoin In March 2009, representatives of crime agencies including MI6 and the FBI, as well as Her Majesty’s Revenue and Customs, gathered for a closed session at a conference in a central-London hotel. The topic: the potential use of virtual currencies by organised criminals and terrorists.

“Bad guys were using this currency to buy virtual Picassos for $500,000 as a way of laundering the money,” Moores adds. Later that day, he wrote in his notes: “I’m still trying to digest the fantastic scale of the criminal opportunities and the money that can be made and laundered outside the control of law-enforcement agencies and Governments.”

Almost a decade later – an age in digital evolution – those same agencies are absorbing the impact of a rather different and wider ranging breach of cybersecurity, and the potentially vast implications for the current criminal currency of choice: bitcoin, which quietly landed online just weeks before the London conference.

Then came Bitcoin, a virtual or cryptocurrency invented by Satoshi Nakamoto, the alias for an anonymous programmer or collective, and launched in 2009. It offers two major advantages for cybercriminals: by operating as a decentralised currency, in which people pay each other without a middleman (like a bank or credit card company), it provides a lot of anonymity.

Bitcoins, which are now worth more than £1,300 each (there are smaller denominations, naturally) can be held in virtual wallets identified only by a number. According to a recent Cambridge University study published last month, as many as six million people around the world have such a wallet, spending bitcoins on goods such as theatre tickets and beer from a growing number of retailers now accepting the currency, as well as illicit goods including drugs and weapons on the virtual black market.

Increasingly, analysts say, targeted companies are choosing to cough up and move on. While he declines to name names, Moores says big banks are stockpiling bitcoin as ransom reserves. Prince has found the same across other industries, but warns companies to hesitate, lest organised gangs add them to a known list of payers, increasing the likelihood of further attacks. “There’s also nothing stopping them from adding a backdoor,” he says, by which he means a way for the attacker to copy or pass on the data they promise supposedly to release on payment of the ransom.

A shop displays the bitcoin sign during the opening of the first bitcoin retail shop in Hong Kong last year. Photograph: Philippe Lopez/AFP/Getty Images

Moores says part of the currency’s power is in its use as a speculative instrument for trading – a digital gold – but also as a way for companies to make payments more cheaply and perform other functions. IBM and the Danish shipping giant Maersk announced last month a new strategy to use blockchain, the digital database that records bitcoin transactions, to help manage and track worldwide shipping transactions.

For consumers, Gordon envisages bitcoin being used as the financial machinery behind popular services. Already, people wishing to send money abroad may use Abra, which uses bitcoin to make a traditionally expensive process faster and cheaper. “Users don’t touch the bitcoin directly,” he says. “Think of it as a raw tech with layers on top. People won’t know they’re using it, but they’ll know that the cost and speed of transactions will make what we use today look very out of date.”

But Gordon accepts that credibility issues are limiting bitcoin’s legitimate spread. Tax collectors don’t love its anonymity, apart from anything. “There’s a lot of work going on to build identification systems to run in parallel and when they come together with bitcoin it could make it more efficient but also more trusted and transparent than it is now,” Gordon says. He calls this the “holy grail”, when the cryptocurrency revolution really gathers steam. Even in the meantime, Gordon attributes the steep recent rise in the value of bitcoin to a growing trust in its potential – in spite of its popularity among criminals.

he says. “There will always be millions of people who need ways to transact outside the immediate control of large institutions.” Closer to home, he says his own daughter, who has just started working for a cybersecurity company, is ineligible for a credit card. “For her generation, bitcoin is something attractive.” His only regret about bitcoin is that he didn’t buy any in 2009. Six hundred dollars bought even as late as 2011, when the bitcoin achieved parity with the US dollar, would today be worth a million dollars.

HOW TO SECURE YOUR CRYPTOCURRENCY WALLET: 16 SIMPLE TIPS FOR BEGINNERS Literally millions of people have joined the world of cryptocurrencies recently. For example, Coinbase, one of the biggest cryptocurrency exchanges, has added around 2 million new clients within two months. Blockchain.com, the major electronic wallet, found its client base increase by 1.8 million during the same time frame.

Most of these people are newbies, unacquainted with security issues and risks that surround complex but currently profitable cryptocurrency realm. This makes them easy targets for cybercriminals and thieves.

One popular crime which is conducted on cryptocurrency traders is the phone-porting attack. Crooks monitor social media in search of cryptocurrency discussions wherein people publish their emails and phone numbers for quick connection.

A phone number is not the only security weak point. Hackers may get hold of your home PC too. Phishing attacks, Ponzi schemes, and ransomware are all widespread forms of cryptocurrency fraud and theft. Nothing teaches a person about security quicker than cybercriminals hacking his account and running off with $5,000 worth of Bitcoins. Once this happens, people tend to get really serious about their security.

So, what is the best method to safeguard your cryptocurrency assets from hacks? We must confess there is no ideal approach to the problem. In this digital age, hard drives, laptops, and phones are becoming the brand new bank vaults. Real-world experience and understanding of how to protect money from thieves are not sufficient for the virtual money.

The following tips can be used as a security guide for new cryptocurrency aficionados:

1. Securing your software wallet is similar to protecting any data on your computer. You have to be a little more paranoid while browsing the Internet, clicking on links and email attachments.

2. Mobile users may take advantage of Google authenticator with a single IP in its whitelist, which should be the VPN to access the online exchange. [ Google Authenticator

3. It is important to select an exchange that is not only flexible and easy to use but also reputable and secure. Try to follow the news. If industry leaders disengage from a project it should be a worrying signal. Repeated technical problems and strange policies are additional points of concern. Bitcoin withdrawal difficulties will always be a red flag also.

4. Do create backups. Kept in a secure place, a backup of your cryptocurrency wallet may save you from hardware failures and a lot of human slipups. It will also let you restore your wallet in case your PC or telephone gets stolen.

5. Encrypting the wallet or your hole device enables you to create a password for those attempting to take out any money.

6. Although passwords and encryption can protect from thieves, it is not able to put a stop to key-loggers or another malware. It is important to install and keep up-to-date leading antivirus and antimalware solutions. Many of them are free to use.

7. Prior to creating an account on any exchange, set up a new email box that you will be using for that specific exchange account.

8. Be sure to choose a very difficult and lengthy password, desirably a passphrase. Write it down on paper and store that piece of paper in a secret place.

9. Turn on two-factor-authorization not only for login but for any transaction procedures.

10. While on social media or forums, do not mention what cryptocurrency exchange or wallet you use.

11. Contact your phone carrier and order all possible levels of security they can offer. Add passcodes, secret questions, pins, etc. Additionally, enable the “do not port” option for any new SIM card.

12. Web exchanges and wallets all claim they treat security very seriously and implement all necessary protection technologies to prevent breaches and unauthorized transactions. Do not trust these words. Such companies are not banks; they often do not have the same level of security. And even banks get robbed often.

13. Do not store all Bitcoins in one wallet or exchange. Diversify your risks. It is extremely difficult to steal money from several wallets at once, particularly when you set different email accounts and passphrases for each of them.

14. Consider keeping big cryptocurrency sums in cold wallets [https://en.bitcoin.it/wiki/Cold_storage] off the Internet. The cold wallet is a technology of keeping Bitcoins offline on hard drives or even paper. Hackers will not be able to reach your funds. On the contrary, the hot wallet is linked to the Internet. It should be used for everyday transactions and is like a checking account, whereas cold wallet may represent your savings account.

15. Consider examining decentralized exchanges. The difference between decentralized and centralized exchanges is that decentralized exchange does not store your funds. Nobody can gain access to your money except you.

16. Tell your peers and especially close friends and relatives to embrace the same attitude and mindset. Ecosystems, where all participants treat security seriously, are less attractive to cybercriminals.

This territory is new and we should assist people who are trying to find their way. Fortunately, you do not have to be a cryptography professional to make the first security steps which will save you from most of the problems.

Using Digital Currency? You’ve probably triggered a taxable event. Any time you purchase goods or services with a currency like Bitcoin, Dash, or Litecoin, you need to assign a proper valuation to the transaction and determine if there was a gain or a loss.

NODE40 Balance makes this type of blockchain accounting easy and intuitive.

Token Network Effects: New business model for a decentralized web Today, developers are building the infrastructure for a decentralized web (also known as web 3 or the fifth protocol). Similar to the 1990’s, they’re building the same infrastructure across computing power, storage, and data.

But this time, it’s decentralized, private, and more secure. And this gives control back to individuals.

Tokens are a new business model that’s emerging for open source. It’s a new way to raise capital by selling tokens through an ICO (initial coin offering). If the project succeeds, its token will appreciate in value, giving early adopters a nice return.

These ICOs have now exceeded venture funding for blockchain projects. And just this week, Bancor raised $150 million from 10,885 buyers, making it the largest ICO to date. To put this in perspective, Tesla raised $226 million in their IPO to build self-driving cars.

The most famous example is with the telephone system — the value of having a phone increases when everyone else has a phone.

Blockchain: The Invisible Technology That's Changing the World By Rob Marvin August 29, 2017

Blockchain-based networks, decentralized apps (DApps), and distributed ledgers are becoming the foundation of much of your digital life. There's a new immutable digital fabric remaking the internet beneath us, and you probably don't even realize it.

Blockchain isn't a household buzzword, like the cloud or the Internet of Things. It's not an in-your-face innovation you can see and touch as easily as a smartphone or a package from Amazon. But in a world where anyone can edit a Wikipedia entry, blockchain is the answer to a question we've been asking since the dawn of the internet age: How can we collectively trust what happens online?

Every year we run more of our lives—more core functions of our governments, economies, and societies—on the internet. We do our banking online. We shop online. We log into apps and services that make up our digital selves and send information back and forth.

Think of blockchain as a historical fabric underneath recording everything that happens—every digital transaction; exchange of value, goods and services; or private data—exactly as it occurs. Then the chain stitches that data into encrypted blocks that can never be modified and scatters the pieces across a worldwide network of distributed computers or "nodes."

When it comes to digital assets and transactions, you can put absolutely anything on a blockchain. A host of economic, legal, regulatory, and technological hurdles must be scaled before we see widespread adoption of blockchain technology, but first movers are making incredible strides. Within the next handful of years, large swaths of your digital life may begin to run atop a blockchain foundation

Several interesting videos...

A "trustless system" doesn't mean it's a system you can't trust. Quite the opposite. Because the blockchain verifies each transaction through PoW, this means no trust is required between participants in a transaction. Where does the proof-of-work come from? The miners. A P2P network of Bitcoin "miners" generates PoW as they hash blocks together, verifying transactions that then go into the ledger.


In the 2016 book Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World, authors Don and Alex Tapscott explain Nakamoto's Bitcoin model about as succinctly as one can:

"Bitcoin or other digital currency isn't saved in a file somewhere; it's represented by transactions recorded in a blockchain—kind of like a global spreadsheet or ledger, which leverages the resources of a large P2P network to verify and approve each Bitcoin transaction. Each blockchain, like the [Bitcoin blockchain] is distributed: it runs on computers provided by volunteers around the world. There is no central database to hack. The blockchain is public: anyone can view it at any time because it resides on the network… and the blockchain is encrypted… it uses public and private keys (rather like a two-key system to access a safety deposit box) to maintain virtual security."

Note that nothing is completely unhackable, particularly when you don't use it as intended. Blockchain's security works not only because it's encrypted but also because it's also decentralized. Victims of the biggest blockchain breaches and cryptocurrency heists (Mt. Gox in 2014 and Bitfinex in 2016) were targeted and pilfered clean because they tried to centralize a decentralized system. Ethereum has seen a number of hacks and security incidents as well. Last year's DAO hack was traced to exploited loopholes in smart contracts written atop an established blockchain. More recently South Korea's largest Ethereum exchange was hacked, and an Israeli startup's initial coin offering (ICO) was hijacked when their website was hacked.

These issues all stemmed from vulnerabilities in systems connected to the blockchain, not within the blockchain itself. Blockchain's underlying security and encryption model is a sound one.

...

How We Build a Blockchain-Based World

Blockchain is still in its infancy. Before we see widespread adoption on the scale the technology is capable of, a lot needs to happen. We must have buy-in from government (which in the U.S. means working state-by-state on policies and legislation). The industry has to clear a labyrinth of legal and regulatory hurdles before blockchain can power better banking, identity, records, or anything else requiring official documentation that now runs on legacy government systems or even (still) on paper.

We also need open standards to tie the blockchain industry together. The most prominent coalition working to make that happen is the Hyperledger project.

Hyperledger is an open-source initiative to create an open, standardized, and enterprise-grade distributed ledger framework and code base to be used across industries. Overseen by The Linux Foundation, its members include tech companies (Cisco, IBM, Intel, Red Hat, Samsung, VMware, and more), big banks (JPMorgan, Wells Fargo, and so on), blockchain startups such as Bloq, and a host of others.

The project recently released the first production-ready version of Hyperledger Fabric as a foundation for building blockchain apps. Big blockhain players like Microsoft are beginning to get into the standardization game as well, with Redmond releasing its own Coco Framework to work with existing protocols and build more powerful governance and data confidentiality into private blockchains.

"The Linux Foundation is the key layer of governance for shepherding and maturing open-source products," said Garzik. "There are many blockchain peddlers out in the market right now, and one of the biggest pain points we see is incompatibility; a large bank that has merged 10 businesses over the past decade and has a lot of halfway-compatible internal legacy systems. That's where the foundation and Hyperledger really come to the fore. As young as the blockchain industry is, the kind of technical standards-making we need for interoperability has so far been absent."

Another important Hyperledger member is R3, the wealthy elephant in the room when it comes to blockchain standardization. R3 is a consortium dedicated to research and development of advanced distributed ledger technologies for global financial markets. It also represents most of the biggest banks and financial institutions on the planet: Barclays, Credit Suisse, J.P. Morgan, the Royal Bank of Scotland, UBS, Bank of America, Citi, Deutsche Bank, HSBC, Morgan Stanley, Wells Fargo, and a number of others.

We're already beginning to see the kind of blockchain-based international trading R3 is after. Last fall, the first cross-border transaction between banks using multiple blockchain applications took place between the Commonwealth Bank of Australia and Wells Fargo, resulting in a shipment of cotton to China from the United States.

R3 is also becoming an example of how difficult standardizing blockchain can be. Goldman Sachs and Santander both left R3 in late 2016 in the midst of big-bank jockeying over control of a new funding round for the consortium. R3 is doing just fine, though. The consortium announced a new $107 round of funding in May.

Bitcoin Gold: What you need to know There’s a Bitcoin hard fork around the corner and it’s not 2x. Announced right before Bitcoin Cash forked, Bitcoin Gold is scheduled to go live sometime in November. In this article, I’m going to explain what Bitcoin Gold is

Bitcoin Gold is the brainchild of Jack Liao and is launching as a hard fork of Bitcoin. The goal of BTG is to become a better gold than Bitcoin. The chief way they have decided to do this is trying to solve miner centralization through a proof-of-work change.

Changing proof-of-work is generally going to require a hard fork and BTG has decided to go that route. The proof-of-work that they’ve chosen is Equihash, a memory-hard algorithm that’s fairly ASIC resistant and also used by ZCash. The idea is to give mining back to the users who can start using CPUs and GPUs to mine.

What’s so special about ASIC resistance?
ASICs are Application Specific Integrated Circuits. They’re different from CPUs in that they do only one thing, but they do it really, really well.

Bitcoin mining is currently completely dominated by ASICs, mostly produced by Bitmain, Bitfury and Canaan. This is largely due to the proof-of-work function (SHA256) being reasonably simple and not requiring much RAM.

Equihash, on the other hand, is a pretty complex hashing function and requires a lot of RAM to perform. That means it’s much more expensive to produce ASICs for Equihash and the speed gain isn’t nearly as much.

To give you an idea, a normal CPU can mine SHA256 at around 5–10 MH/s. An ASIC can mine SHA256 at around 5–10 TH/s, or about 1 million times more work per second than a CPU can. By comparison, a normal CPU can mine Equihash at around 10–30 H/s, where as specialized equipment can do something like 1000–3000 H/s, or about 100 times more work per second.

In other words, the playing field is a lot more level with Equihash than SHA256 due to the ASIC-resistance. Of course, it’s hard to know how much economics would change if Equihash were to become as profitable, but suffice it to say that the efficiency gain would still be much less than SHA256.


Z Cash

Z.Cash homepage Bitcoin and most cryptocurrencies expose your entire payment history to the public. Zcash is the first open, permissionless cryptocurrency that can fully protect the privacy of transactions using zero-knowledge cryptography.

Zcash is a decentralized and open-source cryptocurrency that offers privacy and selective transparency of transactions. Zcash payments are published on a public blockchain, but the sender, recipient, and amount of a transaction remain private.

Zcash is based on peer-reviewed cryptographic research, and built by a security-specialized engineering team on an open source platform based on Bitcoin Core's battle-tested codebase. Our improvement over Bitcoin is the addition of privacy. Zcash uses advanced cryptographic techniques, namely zero-knowledge proofs, to guarantee the validity of transactions without revealing additional information about them.

What are zk-SNARKs? Zcash is the first widespread application of zk-SNARKs, a novel form of zero-knowledge cryptography. The strong privacy guarantee of Zcash is derived from the fact that shielded transactions in Zcash can be fully encrypted on the blockchain, yet still be verified as valid under the network’s consensus rules by using zk-SNARK proofs.

The acronym zk-SNARK stands for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge,” and refers to a proof construction where one can prove possession of certain information, e.g. a secret key, without revealing that information, and without any interaction between the prover and verifier.

“Zero-knowledge” proofs allow one party (the prover) to prove to another (the verifier) that a statement is true, without revealing any information beyond the validity of the statement itself. For example, given the hash of a random number, the prover could convince the verifier that there indeed exists a number with this hash value, without revealing what it is.

“Succinct” zero-knowledge proofs can be verified within a few milliseconds, with a proof length of only a few hundred bytes even for statements about programs that are very large. In the first zero-knowledge protocols, the prover and verifier had to communicate back and forth for multiple rounds, but in “non-interactive” constructions, the proof consists of a single message sent from prover to verifier.

Currently, the only known way to produce zero-knowledge proofs that are non-interactive and short enough to publish to a block chain is to have an initial setup phase that generates a common reference string shared between prover and verifier. We refer to this common reference string as the public parameters of the system.

HOW ZCASH WORKS

Zcash encrypts the contents of shielded transactions. Since the payment information is encrypted, the protocol uses a novel cryptographic method to verify their validity.

Zcash uses a zero-knowledge proof construction called a zk-SNARK, developed by our team of experienced cryptographers based on recent breakthroughs in cryptography. These constructions allow the network to maintain a secure ledger of balances without disclosing the parties or amounts involved. Instead of publicly demonstrating spend-authority and transaction values, the transaction metadata is encrypted and zk-SNARKs are used to prove that nobody is cheating or stealing.

Zcash also enables users to send public payments which work similarly to Bitcoin. With the support for both shielded and transparent addresses, users can choose to send Zcash privately or publicly. Zcash payments sent from a shielded address to a transparent address reveal the received balance, while payments from a transparent address to a shielded address protect the receiving value.


Zcash Company
PO Box 140751
Edgewater, CO 80214

Z exchanges zcashcommunity.com does not endorse any particular exchange, use at your own risk.

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Email Professor Colby Glass, MAc, MLIS, PhDc, Prof. Emeritus
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