Peercoin (PPC) price, charts, market cap, and other

CryptoCurrency Talk and Offers

News on Bitcoin, Monero, Ethereum, Litecoin and all the other cryptocurrencies in the market. Cryptocurrency mining, trading and news talk. Cryptocurrency giveaways, coin airdrops and similar is welcome if legitimate. No scam and non-stop spam.
[link]

Funding the future with the future of currency

**About the Einsteinium Foundation** The Einsteinium Foundation was created to help, in any small way it can, raise funding for cutting edge scientific research. To this aim we created Einsteinium, a new crypto currency (similar to Bitcoin), to gather funds that can be distributed to projects the community chooses. Combined with donations from the community at large we will help fund some of the most innovative projects currently under-way or help seed those waiting to start.
[link]

Instant Crypto Exchange Flyp.me Adds USD Coin (USDC) Stablecoin Cryptocurrency

We've done it again and added another major addition to our already stacked digital asset offerings! USD Coin (USDC), a Coinbase-developed stablecoin with big backing from some of the crypto world’s biggest names, is now tradable on Flyp.me.
This addition gives Flyp.me users a major leg up in the ever-important quest for digital asset liquidity and mobility. Want to send your stablecoin balance between Flyp.me and Coinbase? No problem! How about sending USDC to Binance through Flyp.me? Easy.
Best of all, Flyp.me does not require an account to trade USDC. The process for grabbing some USDC with Flyp.me couldn’t be easier.
At no point do you enter your private keys, or give any information other than your public wallet address. So, what makes the USDC stablecoin special compared to other stable cryptocurrencies out there like Tether (USDT)? Here is a quick overview of USDC stablecoin and why this one is truly a game-changer for current and future Flyp.me traders.
USDC — Not Your Average Stablecoin
Of all the brand names in the cryptocurrency industry, few are as well known — or completely trusted — as Coinbase is. Yes, Coinbase is one of Flyp.me’s direct competitors, but you know what? Credit goes where credit is due.
Coinbase partnered with Circle to bring about USD Coin, 1:1 USD-backed cryptocurrency that stays true to its $1 = 1 USDC value. How does that work? Essentially, Coinbase keeps $1 in the bank for every 1 USDC in circulation, tying each coin to real — not imaginary or inflated — financial value.
Sure, there are other stablecoins out there, but few of them are audited, and even fewer come with the guarantee that only a big name like Coinbase can provide. USDC provides some welcome relief by being, well, stable.
USDC Stablecoin Is Powered by Ethereum
Another major plus USDC has going is it’s powered by Ethereum, our favorite decentralized ledger for all things DeFi (decentralized finance). As the undisputed hub of the emerging DeFi economy, Ethereum has nearly $1 billion in value locked into the blockchain.
Being Ethereum-based makes the ERC-20 standard USDC coin easily transferable between you and other crypto users, or from your wallet to exchanges. This ease of transfer is especially handy when you need to make a move quickly — unlike the Bitcoin blockchain, Ethereum tends to be quicker.
If you’re ready to trade some USDC cryptocurrency without the hassle of creating an account, then head over to Flyp.me and get started now!
About Flyp.me
Flyp.me is the professional tool for instant crypto trading. There is no registration necessary and no hidden analytics tracking you. Moreover, Flyp.me does not control users' funds, so your private keys are not at risk of being held on third-party services.
Flyp.me currently supports over 30 cryptocurrencies and is continuing to add more: Bitcoin, Ethereum, Zcash, Augur, Litecoin, Syscoin, Pivx, Blackcoin, Dash, Decred, Dogecoin, Flyp.me Token, Gamecredits, Peercoin, Aidcoin, 0x, Vertcoin, Basic Attention Token, BLOCKv, Groestlcoin, Essentia, DAI, DGD, Power Ledger, Enjincoin, TrueUSD, Cardano, Storj, Monero, Maker, TetherUS, DigiByte, and now USD Coin.
Connect with the community on Telegram, Twitter, and Facebook.
submitted by flypme to flypme [link] [comments]

Nuv mining | Can You Creat a Ton Of Money Via Bitcoin Mining?

Consumers, investors, fanatics or even technology smart geeks may be wonderful Bitcoin enthusiasts. They can even follow all Bitcoin information as well as have a solitary inquiry in mind. People might simply want to figure out, whether an optimistic future can be taken of mining different cryptocurrencies. Well, it's not a trick or stunning paid announcement. Mining of cryptocurrencies can be a smart step, aside from being a financially rewarding one. And also the appeal of Bitcoin market can not be denied as well. The Bitcoin boom of 2013 and its huge rise in value brought about its reputation. The roller-coaster ride of Bitcoin as well as the other cryptocurrencies, called as Altcoins, discovered a location of reputation in each dictionary of the world. Digital currencies have actually earned adequate direct exposure, and a mining occupation including them can really supply earnings. The miners nevertheless, have to have three points - adequate time, adequate money and an unequaled perseverance.
nuv mining
The initial hurdle involves the option of a cryptocurrency. A fanatic can go on to mine Bitcoin. Or instead pick to extract other readily available cryptocurrencies, Dogecoin, Litecoin or Peercoin. In other words, miners have a lot of options. Comparable to stock, even cryptocurrencies have classifications, blue chip or dime. Mining the blue chip category is commonly associated with security, integrity and a greater amount of profit. Financial on these attributes, individuals are much more inclined towards Bitcoin mining, even if it includes utilizing an enormous computer power. Altcoins, on the other hand, can also offer a fair gain as algorithms are less complex. However with Altcoins, simplicity of mining as well as the potential gains are not always proportional.
nuvmining
Hardware is an element that begins to disclose the real examination. Also a techno-savvy miner can not refute the Bitcoin problem linked to brand-new block generation. The point is to decide upon the computing power to be used. For Bitcoins, algorithms have come to be difficult to hash. Thus, GPUs of gigantic power combined with high-end RAMs and also reputable hard disk drives have to do all the task. The point is to hash at a quick price. Several high-end GPUs running together can speed up block generation and also consequently the payouts. On the various other hand, picking an item of software could not be as tricky. Windows can be selected as the required OS, yet open-source Linux does a far better job. One more demand is a digital wallet. Extracted money have to be kept. One can keep it locally on hard-drive or remotely online. A miner just has to select wisely.
With hardware and software in position, the task of mining begins. A miner may do it all alone, as well as collect all advantages. However the gear has to be tremendously effective. So it's fairly doubtful. Mining pools appear to be a sensible solution as people team up to contribute hash power and makers. Thus coins obtain extracted at a great speed. Collaborating has its advantages; miners get their reasonable share. Multipool is an economical choice. If Altcoin mining is to be embarked on, Middlecoin should be the miner's choice. So with all the active ingredients in place, a profitable mining gear can start. First investment may seem overwhelming, however the earnings are worthwhile!
submitted by Nuvmining to u/Nuvmining [link] [comments]

A brief history of the 2013 market peak; why some alts really do die; and what would've happened if you'd given in to FOMO

This piece is a follow-up to my earlier piece, which looked at what would’ve happened if you’d purchased alt-coins shortly after the bottom of the 2013-2015 bear market. A lot of the constructive criticism that I received was that I was too bullish on alt-coins, and that the timing was too convenient. Although it’s fair to say that I am bullish on crypto in general and alt-coins in particular (with several major caveats for both), I agree that it’s important to not just focus on historical analyses where it’s fairly clear that you could have earned money. So, today’s research question is whether you’d still be underwater if you’d bought in to the market at or near the 2013 all-time high. All information cited herein comes from the historical charts available at CoinMarketCap.
TL;DR: This worst-case scenario analysis shows that $300 invested equally across 15 of the 40 coins in existence near the market’s peak in 2013 would be worth only $429.95 today—gains which are entirely attributable to Bitcoin, Litecoin, and Ripple. This is basic, but it can be dangerous to buy high. This is especially true of alt-coins, but even the top three coins in our sample saw fairly lackluster results when bought at the top of the market. Finally, nothing in this post should be taken as investment advice. This is only intended as historical analysis. Past performance does not guarantee future returns.
A Brief History of the 2013 Market Peak
According to CoinMarketCap, the 2013 bull market peaked on December 4, 2013, at ~$15.87 billion in market capitalization.* Thereafter, the market crashed dramatically not once, but twice. In the first crash, which occurred between December 5-8, 2013, overall market cap fell by ~39% to ~$9.66 billion. Then, after a brief recovery to ~$13.57 billion on December 10th, the market fell precipitously, to ~$5.7 billion on December 18, 2013. Thus, over the course of only two weeks, from December 4-18, 2013, the market lost ~64% of its value. Although this was by no means the end of the 2013-2015 bear market--which lasted for approximately 17 months and saw an additional decline of ~45% from the December 18, 2013 low--this was the end of the beginning.
What If I Bought Crypto Right as the 2013 Market Peaked?
Generally, the first rule of trading is** that you want to buy low and sell high. As a result of their fear of missing out (“FOMO”), however, many people find themselves accidentally buying high. Today, I’m going to look at what would have happened to someone who bought their crypto right as the market was peaking. Ideally, I would run this experiment from December 4, 2013, but due to the limited data available from CoinMarketCap, I’m forced to choose between November 24th, December 1st, December 8th, and December 15th. Of those dates, I have selected December 1, 2013, because it represents the worst possible scenario for which I have data. On that date, total crypto market cap, which had hit a new high of ~$15.4 billion the day before, swung wildly between a high of ~$14.83 billion and a low of ~$12.18 billion. Unfortunately, it’s unclear exactly when CoinMarketCap’s snapshot was taken. That said, it’s clear that our hypothetical FOMO trader is about to lose his shirt over the next few weeks, so let’s dive into the specifics.
On December 1, 2013, there were 40 coins listed on CoinMarketCap. I won’t list them all here, but of those 40, all but 11 are still listed as active on CoinMarketCap. The truly dead (or “inactive”) coins are BBQCoin (BQC; rank 16), Devcoin (DVC; rank 19), Tickets (TIX; rank 22), Copperlark (CLR; rank 24), StableCoin (SBC; rank 25), Luckycoin (LKY—ironic, I realize; rank 31), Franko (FRK; rank 34), Bytecoin (BTE; rank 35), Junkcoin (JKE—how apt; rank 36), CraftCoin (CRC; rank 39), and Colossuscoin (COL; rank 40).***
Now, since this post is already incredibly long, instead of testing all 40 coins, let’s take a decently-sized sample of five coins each from the top, middle, and bottom of the stack, and look at what happens. For the middle, although the temptation is to take decent alts, let’s fight that and take the group with the highest failure rate: ranks 21-25. So, here’s out pool:
Now, here are how our sample of coins has performed as of when I write this:****
So, if our hypothetical FOMO trader had invested $100 in our top-five sample near the 2013 peak, it would currently be worth $411.80 (the profitable coins) + $3.06 (PPC) + $4.27 (NMC) = $419.13—a 4.19x increase.
Now for the two coins in the middle five that didn’t completely die:
So, if our hypothetical FOMO trader had invested $100 in our middle-five sample near the 2013 peak, it would currently be worth ~$15.19—an ~84.8% loss.
Finally, here are the two coins from the bottom five that didn’t completely die:
So, excluding everything buy Argentum, if our hypothetical FOMO trader had invested $100 in our bottom-five sample near the 2013 peak, it would currently be worth ~$2.96—a ~97% loss. Putting it all together, $300 invested in this sample of 15 coins as close to the peak of the 2013 market as the data will let me get, would be worth $429.95—a disappointing, but not-unexpected ~30.2% increase over five years. That said, I’m honestly somewhat amazed our FOMO trader made anything at all on this basket of coins, considering how many of them failed. In any case, all of his gains came from the top-three coins from 2013: Bitcoin, Litecoin, and Ripple.
Conclusions
What’s the lesson here, what’s the takeaway?***** Most importantly, I think the above analysis shows that it can be very dangerous to buy alt-coins when the market is at or near an all-time high—a conclusion that appears to be true regardless of where the alt is positioned in the market. That said, there are a few caveats: (1) this sample was intentionally bad, in order to reflect a worst-case scenario; (2) even buying the top-three coins at the all-time high didn’t net our FOMO trader particularly large gains when compared to someone who bought these same coins after the crash. Therefore, I think that the most important lesson here is not to buy high in the first place. Investing solely because of FOMO will probably cause you to lose money, unless you have invested equally in a broad range of cryptocurrencies, like the trader in our hypothetical. Even then, however, our FOMO trader probably would have done better investing in an S&P Index fund over the same period.
Endnotes
*This is a correction to my earlier piece, in which I stated that the cryptocurrency market peaked on November 30, 2013, at a total market capitalization of ~$15.2 billion. I made this error due to having failed to narrow the date range of the chart so I could properly zoon in. That said, the exact details of the market peak don’t affect the conclusions from my last piece, which considered trades made after the market had bottomed out.
** …you do not talk about trading. Wait, that’s the wrong rulebook.
*** Since I already typed it out, here’s the list of remaining active coins, in descending order: Bitcoin (BTC), Litecoin (LTC), Ripple (XRP), Peercoin (PPC), Namecoin (NMC), Megacoin (MEC), Feathercoin (FTC), WorldCoin (WDC), Primecoin (XPM), Freicoin (FRC), Novacoin (NVC), Zetacoin (ZET), Infinitecoin (IFC), Terracoin (TRC), Crypto Bullion (CBX), Anoncoin (ANC), Digitalcoin (DGC), GoldCoin (GLD), Yacoin (YAC), Ixcoin (IXC), Fastcoin (FST), BitBar (BTB), Mincoin (MNC), Tagcoin (TAG), FlorinCoin (FLO), I0Coin (I0C), Phoenixcoin (PXC), Argentum (ARG), Elacoin (ELC)
**** I know that we could have sold them sooner, and probably for more money, but let’s just assume that our hypothetical FOMO trader was a founding member of the #hodlgang. ;-)
***** Don’t mess with Maui when he’s on a breakaway! You’re welcome. ;-)
Disclosures: I have previous held Litecoin, and currently hold approximately $140 of Ripple. I do not believe this influenced my analysis in any way. I have never bought or held any of the other coins discussed in this analysis.
Edits: Formatting, typos, minor clarifications.
submitted by ThaneduFife to CryptoCurrency [link] [comments]

An extensive list of blockchain courses, resources and articles to help you get a job working with blockchain.

u/Maximus_no and me spent some time at work collecting and analyzing learning material for blockchain development. The list contains resources for developers, as well as business analysts/consultants looking to learn more about blockchain use-cases and solutions.

Certifications and Courses

IIB Council
Link to course: IIB council : Certified Blockchain Professional
C|BP is an In-Depth, Industry Agnostic, Hands-On Training and Certification Course specifically tailored for Industry Professionals and Developers interested in implementing emerging technologies in the Data-Driven Markets and Digitized Economies.
The IIB Council Certified Blockchain Professional (C|BP) Course was developed to help respective aspiring professionals gain excessive knowledge in Blockchain technology and its implication on businesses.
WHO IS IT FOR:

Professionals

C|BP is developed in line with the latest industry trends to help current and aspiring Professionals evolve in their career by implementing the latest knowledge in blockchain technology. This course will help professionals understand the foundation of Blockchain technology and the opportunities this emerging technology is offering.

Developers

If you are a Developer and you are willing to learn blockchain technology this course is for you. You will learn to build and model Blockchain solutions and Blockchain-based applications for enterprises and businesses in multiple Blockchain Technologies.

Certified Blockchain Business Foundations (CBBF)

This exam is designed for non-technical business professionals who require basic knowledge about Blockchain and how it will be executed within an organization. This exam is NOT appropriate for technology professionals seeking to gain deeper understanding of Blockchain technology implementation or programming.

A person who holds this certification demonstrates their knowledge of:

· What is Blockchain? (What exactly is it?)
· Non-Technical Technology Overview (How does it work?)
· Benefits of Blockchain (Why should anyone consider this?)
· Use Cases (Where and for what apps is it appropriate?)
· Adoption (Who is using it and for what?)
· Future of Blockchain (What is the future?)

Certified Blockchain Solution Architect (CBSA)

A person who holds this certification demonstrates their ability to:

· Architect blockchain solutions
· Work effectively with blockchain engineers and technical leaders
· Choose appropriate blockchain systems for various use cases
· Work effectively with both public and permissioned blockchain systems

This exam will prove that a student completely understands:

· The difference between proof of work, proof of stake, and other proof systems and why they exist
· Why cryptocurrency is needed on certain types of blockchains
· The difference between public, private, and permissioned blockchains
· How blocks are written to the blockchain
· Where cryptography fits into blockchain and the most commonly used systems
· Common use cases for public blockchains
· Common use cases for private & permissioned blockchains
· What is needed to launch your own blockchain
· Common problems & considerations in working with public blockchains
· Awareness of the tech behind common blockchains
· When is mining needed and when it is not
· Byzantine Fault Tolerance
· Consensus among blockchains
· What is hashing
· How addresses, public keys, and private keys work
· What is a smart contract
· Security in blockchain
· Brief history of blockchain
· The programming languages of the most common blockchains
· Common testing and deployment practices for blockchains and blockchain-based apps

Certified Blockchain Developer - Ethereum (CBDE)

A person who holds this certification demonstrates their ability to:

· Plan and prepare production ready applications for the Ethereum blockchain
· Write, test, and deploy secure Solidity smart contracts
· Understand and work with Ethereum fees
· Work within the bounds and limitations of the Ethereum blockchain
· Use the essential tooling and systems needed to work with the Ethereum ecosystem

This exam will prove that a student completely understands how to:

· Implement web3.js
· Write and compile Solidity smart contracts
· Create secure smart contracts
· Deploy smart contracts both the live and test Ethereum networks
· Calculate Ethereum gas costs
· Unit test smart contracts
· Run an Ethereum node on development machines

Princeton: Sixty free lectures from Princeton on bitcoin and cryptocurrencies. Avg length ~15 mins

Basic course with focus on Bitcoin. After this course, you’ll know everything you need to be able to separate fact from fiction when reading claims about Bitcoin and other cryptocurrencies. You’ll have the conceptual foundations you need to engineer secure software that interacts with the Bitcoin network. And you’ll be able to integrate ideas from Bitcoin in your own projects.

MIT : BLOCKCHAIN TECHNOLOGIES: BUSINESS INNOVATION AND APPLICATION

· A mid / basic understanding of blockchain technology and its long-term implications for business, coupled with knowledge of its relationship to other emerging technologies such as AI and IoT
· An economic framework for identifying blockchain-based solutions to challenges within your own context, guided by the knowledge of cryptoeconomics expert Christian Catalini
· Recognition of your newfound blockchain knowledge in the form of a certificate of completion from the MIT Sloan School of Management — one of the world’s leading business schools
Orientation Module: Welcome to Your Online Campus
Module 1: An introduction to blockchain technology
Module 2: Bitcoin and the curse of the double-spending problem
Module 3: Costless verification: Blockchain technology and the last mile problem
Module 4: Bootstrapping network effects through blockchain technology and cryptoeconomics
Module 5: Using tokens to design new types of digital platforms
Module 6: The future of blockchain technology, AI, and digital privacy

Oxford Blockchain Strategy Programme

· A mid / basic understanding of what blockchain is and how it works, as well as insights into how it will affect the future of industry and of your organization.
· The ability to make better strategic business decisions by utilizing the Oxford Blockchain Strategic framework, the Oxford Blockchain Regulation framework, the Oxford Blockchain Ecosystem map, and drawing on your knowledge of blockchain and affiliated industries and technologies.
· A certificate of attendance from Oxford Saïd as validation of your newfound blockchain knowledge and skills, as well as access to a global network of like-minded business leaders and innovators.
Module 1: Understanding blockchain
Module 2: The blockchain ecosystem
Module 3: Innovations in value transfer
Module 4: Decentralized apps and smart contracts
Module 5: Transforming enterprise business models
Module 6: Blockchain frontiers

Resources and Articles

Introduction to Distributed Ledger Technologies (DLT) https://www.ibm.com/developerworks/cloud/library/cl-blockchain-basics-intro-bluemix-trs/
Tomas’s Personal Favourite: 150+ Resources for going from web-dev to blockchain engineer https://github.com/benstew/blockchain-for-software-engineers
Hyperledger Frameworks Hyperledger is widely regarded as the most mature open-source framework for building private & permissioned blockchains.
Tutorials: https://www.hyperledger.org/resources/training
R3 Corda Open-source developer frameworks for building private, permissioned blockchains. A little better than Hyperledger on features like privacy and secure channels. Used mostly in financial applications.
Ethereum, Solidity, dApps and Smart-Contracts
Ethereum & Solidity Course (favourite): https://www.udemy.com/ethereum-and-solidity-the-complete-developers-guide/
An Introduction to Ethereum’s Token Standards: https://medium.com/coinmonks/anatomy-of-an-erc-an-exhaustive-survey-8bc1a323b541
How To Create Your First ERC20 Token: https://medium.com/bitfwd/how-to-do-an-ico-on-ethereum-in-less-than-20-minutes-a0062219374
Ethereum Developer Tools [Comprehensive List]: https://github.com/ConsenSys/ethereum-developer-tools-list/blob/masteREADME.md
CryptoZombies – Learn to code dApps through game-development: https://cryptozombies.io/
Intro to Ethereum Development: https://hackernoon.com/ethereum-development-walkthrough-part-1-smart-contracts-b3979e6e573e
Notes from Consensys Academy Participant (free): https://github.com/ScottWorks/ConsenSys-Academy-Notes
AWS Ethereum Templates: https://aws.amazon.com/blogs/aws/get-started-with-blockchain-using-the-new-aws-blockchain-templates/
Create dApps with better user-experience: https://blog.hellobloom.io/how-to-make-a-user-friendly-ethereum-dapp-5a7e5ea6df22
Solidity YouTube Course: https://www.youtube.com/channel/UCaWes1eWQ9TbzA695gl_PtA
[UX &UI] Designing a decentralized profile dApp: https://uxdesign.cc/designing-a-decentralized-profile-dapp-ab12ead4ab56
Scaling Solutions on Ethereum: https://media.consensys.net/the-state-of-scaling-ethereum-b4d095dbafae
Different Platforms for dApps and Smart-Contracts
While Ethereum is the most mature dApp framework with both the best developer tools, resources and community, there are other public blockchain platforms. Third generation blockchains are trying to solve Ethereum’s scaling and performance issues. Here is an overview of dApp platforms that can be worth looking into:
NEO - https://neo.org/ The second most mature dApp platform. NEO has better scalability and performance than Ethereum and has 1’000 TPS to ETH’s 15 by utilizing a dBFT consensus algorithm. While better infrastructure, NEO does not have the maturity of Ethereum’s developer tools, documentation and community.
A writeup on why a company chose to develop on NEO and not Ethereum: https://medium.com/orbismesh/why-we-chose-neo-over-ethereum-37fc9208ffa0
Cardano - https://www.cardano.org/en/home/ While still in alpha with a long and ambitious roadmap ahead of it, Cardano is one of the most anticipated dApp platforms out there. IOHK, the research and engineering company that maintains Cardano, has listed a lot of great resources and scientific papers that is worth looking into.
An Intro to Cardano: https://hackernoon.com/cardano-ethereum-and-neo-killer-or-overhyped-and-overpriced-8fcd5f8abcdf
IOHK Scientific Papers - https://iohk.io/research/papers/
Stellar - https://www.stellar.org/ If moving value fast from one party to another by using smart-contracts is the goal, Stellar Lumens is your platform. Initially as an open-source fork from Ripple, Stellar has become one of the mature frameworks for financial applications. Stellar’s focus lies in interoperability with legacy financial systems and cheap/fast value transfer. It’s smart-contract capability is rather limited in comparison to Ethereum and HyperLedger, so take that in consideration.
Ripplewww.ripple.com Ripple and its close cousin, Stellar, is two of the most well-known cryptocurrencies and DLT frameworks meant for the financial sector. Ripple enables instant settlement between banks for international transactions.

Consensus Algorithms

[Proof of Work] - very short, cuz it's well-known.
[1] Bitcoin - to generate a new block miner must generate hash of the new block header that is in line with given requirements.
Others: Ethereum, Litecoin etc.
[Hybrid of PoW and PoS]
[2] Decred - hybrid of “proof of work” and “proof of stake”. Blocks are created about every 5 minutes. Nodes in the network looking for a solution with a known difficulty to create a block (PoW). Once the solution is found it is broadcast to the network. The network then verifies the solution. Stakeholders who have locked some DCR in return for a ticket* now have the chance to vote on the block (PoS). 5 tickets are chosen pseudo-randomly from the ticket pool and if at least 3 of 5 vote ‘yes’ the block is permanently added to the blockchain. Both miners and voters are compensated with DCR : PoS - 30% and PoW - 60% of about 30 new Decred issued with a block. * 1 ticket = ability to cast 1 vote. Stakeholders must wait an average of 28 days (8,192 blocks) to vote their tickets.
[Proof of Stake]
[3] Nxt - The more tokens are held by account, the greater chance that account will earn the right to generate a block. The total reward received as a result of block generation is the sum of the transaction fees located within the block. Three values are key to determining which account is eligible to generate a block, which account earns the right to generate a block, and which block is taken to be the authoritative one in times of conflict: base target value, target value and cumulative difficulty. Each block on the chain has a generation signature parameter. To participate in the block's forging process, an active account digitally signs the generation signature of the previous block with its own public key. This creates a 64-byte signature, which is then hashed using SHA256. The first 8 bytes of the resulting hash are converted to a number, referred to as the account hit. The hit is compared to the current target value(active balance). If the computed hit is lower than the target, then the next block can be generated.
[4] Peercoin (chain-based proof of stake) - coin age parameter. Hybrid PoW and PoS algorithm. The longer your Peercoins have been stationary in your account (to a maximum of 90 days), the more power (coin age) they have to mint a block. The act of minting a block requires the consumption of coin age value, and the network determines consensus by selecting the chain with the largest total consumed coin age. Reward - minting + 1% yearly.
[5] Reddcoin (Proof of stake Velocity) - quite similar to Peercoin, difference: not linear coin-aging function (new coins gain weight quickly, and old coins gain weight increasingly slowly) to encourage Nodes Activity. Node with most coin age weight have a bigger chance to create block. To create block Node should calculate right hash. Block reward - interest on the weighted age of coins/ 5% annual interest in PoSV phase.
[6] Ethereum (Casper) - uses modified BFT consensus. Blocks will be created using PoW. In the Casper Phase 1 implementation for Ethereum, the “proposal mechanism" is the existing proof of work chain, modified to have a greatly reduced block reward. Blocks will be validated by set of Validators. Block is finalised when 2/3 of validators voted for it (not the number of validators is counted, but their deposit size). Block creator rewarded with Block Reward + Transaction FEES.
[7] Lisk (Delegated Proof-of-stake) - Lisk stakeholders vote with vote transaction (the weight of the vote depends on the amount of Lisk the stakeholder possess) and choose 101 Delegates, who create all blocks in the blockchain. One delegate creates 1 block within 1 round (1 round contains 101 blocks) -> At the beginning of each round, each delegate is assigned a slot indicating their position in the block generation process -> Delegate includes up to 25 transactions into the block, signs it and broadcasts it to the network -> As >51% of available peers agreed that this block is acceptable to be created (Broadhash consensus), a new block is added to the blockchain. *Any account may become a delegate, but only accounts with the required stake (no info how much) are allowed to generate blocks. Block reward - minted Lisks and transaction fees (fees for all 101 blocks are collected firstly and then are divided between delegates). Blocks appears every 10 sec.
[8] Cardano (Ouroboros Proof of Stake) - Blocks(slots) are created by Slot Leaders. Slot Leaders for N Epoch are chosen during n-1 Epoch. Slot Leaders are elected from the group of ADA stakeholders who have enough stake. Election process consist of 3 phases: Commitment phase: each elector generates a random value (secret), signs it and commit as message to network (other electors) saved in to block. -> Reveal phase: Each elector sends special value to open a commitment, all this values (opening) are put into the block. -> Recovery phase: each elector verifies that commitments and openings match and extracts the secrets and forms a SEED (randomly generated bytes string based on secrets). All electors get the same SEED. -> Follow the Satoshi algorithm : Elector who have coin which corresponded to SEED become a SLOT LEADER and get a right to create a block. Slot Leader is rewarded with minted ADA and transactions Fee.
[9] Tezos (Proof Of Stake) - generic and self-amending crypto-ledger. At the beginning of each cycle (2048 blocks), a random seed is derived from numbers that block miners chose and committed to in the penultimate cycle, and revealed in the last. -> Using this random seed, a follow the coin strategy (similar to Follow The Satoshi) is used to allocate mining rights and signing rights to stakeholders for the next cycle*. -> Blocks are mined by a random stakeholder (the miner) and includes multiple signatures of the previous block provided by random stakeholders (the signers). Mining and signing both offer a small reward but also require making a one cycle safety deposit to be forfeited in the event of a double mining or double signing.
· the more coins (rolls) you have - the more your chance to be a minesigner.
[10] Tendermint (Byzantine Fault Tolerance) - A proposal is signed and published by the designated proposer at each round. The proposer is chosen by a deterministic and non-choking round robin selection algorithm that selects proposers in proportion to their voting power. The proposer create the block, that should be validated by >2/3 of Validators, as follow: Propose -> Prevote -> Precommit -> Commit. Proposer rewarded with Transaction FEES.
[11] Tron (Byzantine Fault Tolerance) - This blockhain is still on development stage. Consensus algorithm = PoS + BFT (similar to Tendermint): PoS algorithm chooses a node as Proposer, this node has the power to generate a block. -> Proposer broadcasts a block that it want to release. -> Block enters the Prevote stage. It takes >2/3 of nodes' confirmations to enter the next stage. -> As the block is prevoted, it enters Precommit stage and needs >2/3 of node's confirmation to go further. -> As >2/3 of nodes have precommited the block it's commited to the blockchain with height +1. New blocks appears every 15 sec.
[12] NEO (Delegated Byzantine Fault Tolerance) - Consensus nodes* are elected by NEO holders -> The Speaker is identified (based on algorithm) -> He broadcasts proposal to create block -> Each Delegate (other consensus nodes) validates proposal -> Each Delegate sends response to other Delegates -> Delegate reaches consensus after receiving 2/3 positive responses -> Each Delegate signs the block and publishes it-> Each Delegate receives a full block. Block reward 6 GAS distributed proportionally in accordance with the NEO holding ratio among NEO holders. Speaker rewarded with transaction fees (mostly 0). * Stake 1000 GAS to nominate yourself for Bookkeeping(Consensus Node)
[13] EOS (Delegated Proof of Stake) - those who hold tokens on a blockchain adopting the EOS.IO software may select* block producers through a continuous approval voting system and anyone may choose to participate in block production and will be given an opportunity to produce blocks proportional to the total votes they have received relative to all other producers. At the start of each round 21 unique block producers are chosen. The top 20 by total approval are automatically chosen every round and the last producer is chosen proportional to their number of votes relative to other producers. Block should be confirmed by 2/3 or more of elected Block producers. Block Producer rewarded with Block rewards. *the more EOS tokens a stakeholder owns, the greater their voting power
[The XRP Ledger Consensus Process]
[14] Ripple - Each node receives transaction from external applications -> Each Node forms public list of all valid (not included into last ledger (=block)) transactions aka (Candidate Set) -> Nodes merge its candidate set with UNLs(Unique Node List) candidate sets and vote on the veracity of all transactions (1st round of consensus) -> all transactions that received at least 50% votes are passed on the next round (many rounds may take place) -> final round of consensus requires that min 80% of Nodes UNL agreeing on transactions. It means that at least 80% of Validating nodes should have same Candidate SET of transactions -> after that each Validating node computes a new ledger (=block) with all transactions (with 80% UNL agreement) and calculate ledger hash, signs and broadcasts -> All Validating nodes compare their ledgers hash -> Nodes of the network recognize a ledger instance as validated when a 80% of the peers have signed and broadcast the same validation hash. -> Process repeats. Ledger creation process lasts 5 sec(?). Each transaction includes transaction fee (min 0,00001 XRP) which is destroyed. No block rewards.
[The Stellar consensus protocol]
[15] Stellar (Federated Byzantine Agreement) - quite similar to Ripple. Key difference - quorum slice.
[Proof of Burn]
[16] Slimcoin - to get the right to write blocks Node should “burn” amount of coins. The more coins Node “burns” more chances it has to create blocks (for long period) -> Nodes address gets a score called Effective Burnt Coins that determines chance to find blocks. Block creator rewarded with block rewards.
[Proof of Importance]
[17] NEM - Only accounts that have min 10k vested coins are eligible to harvest (create a block). Accounts with higher importance scores have higher probabilities of harvesting a block. The higher amount of vested coins, the higher the account’s Importance score. And the higher amount of transactions that satisfy following conditions: - transactions sum min 1k coins, - transactions made within last 30 days, - recipient have 10k vested coins too, - the higher account’s Important score. Harvester is rewarded with fees for the transactions in the block. A new block is created approx. every 65 sec.
[Proof of Devotion]
[18] Nebulas (Proof of Devotion + BFT) - quite similar to POI, the PoD selects the accounts with high influence. All accounts are ranked according to their liquidity and propagation (Nebulas Rank) -> Top-ranked accounts are selected -> Chosen accounts pay deposit and are qualified as the blocks Validators* -> Algorithm pseudo-randomly chooses block Proposer -> After a new block is proposed, Validators Set (each Validator is charged a deposit) participate in a round of BFT-Style voting to verify block (1. Prepare stage -> 2. Commit Stage. Validators should have > 2/3 of total deposits to validate Block) -> Block is added. Block rewards : each Validator rewarded with 1 NAS. *Validators Set is dynamic, changes in Set may occur after Epoch change.
[IOTA Algorithm]
[19] IOTA - uses DAG (Directed Acyclic Graph) instead of blockchain (TANGLE equal to Ledger). Graph consist of transactions (not blocks). To issue a new transaction Node must approve 2 random other Transactions (not confirmed). Each transaction should be validate n(?) times. By validating PAST(2) transactions whole Network achieves Consensus. in Order to issue transaction Node: 1. Sign transaction with private key 2. choose two other Transactions to validate based on MCMC(Markov chain Monte Carlo) algorithm, check if 2 transactions are valid (node will never approve conflicting transactions) 3. make some PoW(similar to HashCash). -> New Transaction broadcasted to Network. Node don’t receive reward or fee.
[PBFT + PoW]
[20] Yobicash - uses PBFT and also PoW. Nodes reach consensus on transactions by querying other nodes. A node asks its peers about the state of a transaction: if it is known or not, and if it is a doublespending transaction or not. As follow : Node receives new transaction -> Checks if valid -> queries all known nodes for missing transactions (check if already in DAG ) -> queries 2/3 nodes for doublepsending and possibility -> if everything is ok add to DAG. Reward - nodes receive transaction fees + minting coins.
[Proof of Space/Proof of Capacity]
[21] Filecoin (Power Fault Tolerance) - the probability that the network elects a miner(Leader) to create a new block (it is referred to as the voting power of the miner) is proportional to storage currently in use in relation to the rest of the network. Each node has Power - storage in use verified with Proof of Spacetime by nodes. Leaders extend the chain by creating a block and propagating it to the network. There can be an empty block (when no leader). A block is committed if the majority of the participants add their weight on the chain where the block belongs to, by extending the chain or by signing blocks. Block creator rewarded with Block reward + transaction fees.
[Proof of Elapsed Time (POET)]
[22] Hyperledger Sawtooth - Goal - to solve BFT Validating Nodes limitation. Works only with intel’s SGX. PoET uses a random leader election model or a lottery based election model based on SGX, where the protocol randomly selects the next leader to finalize the block. Every validator requests a wait time from an enclave (a trusted function). -> The validator with the shortest wait time for a particular transaction block is elected the leader. -> The BlockPublisher is responsible for creating candidate blocks to extend the current chain. He takes direction from the consensus algorithm for when to create a block and when to publish a block. He creates, Finalizes, Signs Block and broadcast it -> Block Validators check block -> Block is created on top of blockchain.
[23] Byteball (Delegated Byzantine Fault Tolerance) - only verified nodes are allowed to be Validation nodes (list of requirements https://github.com/byteball/byteball-witness). Users choose in transaction set of 12 Validating nodes. Validating nodes(Witnesses) receive transaction fees.
[24] Nano - uses DAG, PoW (HashCash). Nano uses a block-lattice structure. Each account has its own blockchain (account-chain) equivalent to the account’s transaction/balance history. To add transaction user should make some HashCash PoW -> When user creates transaction Send Block appears on his blockchain and Receive block appears on Recipients blockchain. -> Peers in View receive Block -> Peers verify block (Double spending and check if already in the ledger) -> Peers achieve consensus and add block. In case of Fork (when 2 or more signed blocks reference the same previous block): Nano network resolves forks via a balance-weighted voting system where representative nodes vote for the block they observe, as >50% of weighted votes received, consensus achieved and block is retained in the Node’s ledger (block that lose the vote is discarded).
[25] Holochain - uses distributed hash table (DHT). Instead of trying to manage global consensus for every change to a huge blockchain ledger, every participant has their own signed hash chain. In case of multi-party transaction, it is signed to each party's chain. Each party signs the exact same transaction with links to each of their previous chain entries. After data is signed to local chains, it is shared to a DHT where every neighbor node validate it. Any consensus algorithms can be built on top of Holochain.
[26] Komodo ('Delegated' Delayed Proof of Work (dPoW)) - end-to-end blockchain solutions. DPoW consensus mechanism does not recognize The Longest Chain Rule to resolve a conflict in the network, instead the dPoW looks to backups it inserted previously into the chosen PoW blockchain. The process of inserting backups of Komodo transactions into a secure PoW is “notarization.” Notarisation is performed by the elected Notary nodes. Roughly every ten minutes, the Notary nodes perform a special block hash mined on the Komodo blockchain and take note of the overall Komodo blockchain “height”. The notary nodes process this specifc block so that their signatures are cryptographically included within the content of the notarized data. There are sixty-four “Notary nodes” elected by a stake-weighted vote, where ownership of KMD represents stake in the election. They are a special type of blockchain miner, having certain features in their underlying code that enable them to maintain an effective and cost-efcient blockchain and they periodically receives the privilege to mine a block on “easy difculty.”
Source: https://www.reddit.com/CryptoTechnology/comments/7znnq8/my_brief_observation_of_most_common_consensus/
Whitepapers Worth Looking Into:
IOTA -http://iotatoken.com/IOTA_Whitepaper.pdf
NANO -https://nano.org/en/whitepaper
Bitcoin -https://bitcoin.org/bitcoin.pdf
Ethereum: https://github.com/ethereum/wiki/wiki/White-Paper
Ethereum Plasma (Omise-GO) -https://plasma.io/plasma.pdf
Cardano - https://eprint.iacr.org/2016/889.pdf
submitted by heart_mind_body to CryptoCurrency [link] [comments]

The TAU Coin Concept Which is Based on Proof of Transaction as a New Consensus Algorithm

Recently, perhaps crypto currency watchers often hear about the ideas of Proof of Work and Proof of Stake, as well as the definition of mining, or the process of how new digital currencies are released through networks.
Proof of Work
As considered the first consensus algorithm, Proof of Work (PoW) is defined as a protocol that has the main purpose of preventing cyber attacks such as distributed denial-of-service (DDoS) attacks, which aim to use up computer system resources by sending fake requests.
The concept of Proof of work already existed even before bitcoin, but Satoshi Nakamoto applied this technique to - we still don't know who Nakamoto really is - his digital currency that revolutionized traditional transaction methods.
In fact, the idea of ​​the PoW was originally published by Cynthia Dwork and Moni Naor in 1993, but the term "Proof-of-Work" was created by Markus Jakobsson and Ari Juels in a document published in 1999.
However, taking into account the date it was made, POW is probably the biggest idea behind Nakamoto's Bitcoin white paper - published in 2008 - because it allows consensus without trust and distribution.
Proof-of-Work which is performed through mining and used by Bitcoin, Litecoin and Dogecoin among others. The miner is incentivized because it receives a reward for solving the puzzle that verifies the transaction. The quantity and quality of the computer determine the mining power and consequently the profit you can make. PoW reaches consensus because the miner has to (literally) prove the verification through computational labor, and at least 51% of the miner-network has to agree with the verification.
Proof of Stake
Proof of Stake (PoS) as the second consensus algorithm, is another way to validate transactions based on distributed consensus, and to achieve distributed consensus. This is still an algorithm, and the goal is the same as proof-of-work, but the process for achieving goals is very different.
The idea of ​​proof-of-work was first proposed at the BitCointalk forum in 2011, but the first digital currency to use this method was Peercoin in 2012, along with ShadowCash, Nxt, BlackCoin, NuShares / NuBits, Qora, and Nav Coin.
Unlike proof-of-work, where the algorithm rewards miners who solve mathematical equations with the aim of validating transactions and creating new blocks, with proof-of-stake, the creator of the new block is chosen in a deterministic way, depending on wealth, or defined as well as a bet. There are no block rewards.
This PoS selects a validator (comparable to a miner) based on the number of coins it deposits. Since one validator verifies the transaction, the miner doesn’t need to waste as much energy and hardware as Proof-of-Work – where each miner tries to solve the same transaction.
In addition, all digital currencies were made beforehand and the numbers never changed. This means, in the PoS system, there are no block rewards. So, the miners take transaction fees.
However, the rich get richer as they have higher chances at the selection procedure, meaning higher chances to receive the reward. This is why, in fact, in this PoS system, miners are referred to as counterfeiters. PoS is implemented by Peercoin, Decred, and Ethereum. This verification scheme reaches consensus because the validator-network checks the reviews as well. The validator won’t verify fraudulent transactions because it will lose more money (the deposit) than it can earn (the reward).
TAU Coin Concept on Proof of Transaction
Cited from http://networkcultures.org/longform/2018/08/25/proof-of-transaction-the-materiality-of-cryptocurrency/ ,
Proof-of-Transaction is defined as "a physical object that absorbs the process of transferring value from one space or entity to another. It captures the orders of magnitude of the exchange (from technology to phenomena) and narrates these realities through interobjective relations". Further, it is explained that transaction contains a meaning of ‘an agreement’ which involves an exchange or interaction between two entities. While other word that is ‘proof’ shall be referred to ‘evidence’, the witness of an event.
The proposal of TAU is an original consensus mechanism POT. It uses on-chain historical accumulated transactions to determine who can propose a new block. Block generation in TAU is still called mining like Bitcoin, but block reward only comes in the form of transaction fee. TAU is a single utility chain that funds wiring is the only thing supported; therefore, transaction fee is the only income for miners. TAU block structure is designed to support mobile phone mining for decentralization. Total 10 billions coins are generated in the genesis block, while the goal is for each individual to have a full TAU. For every address, the probability of generating a new block is exactly in linear proportion to its historical transaction. This sum is called mining power, an analogue to hash power in Bitcoin.
Further information can be found at www.taucoin.io.
submitted by denio17 to CryptoCurrency [link] [comments]

Bitcoin, dogecoin. How I tried to make my fortune in 2014 with the sweat of my computer.

Bitcoin, dogecoin. How I tried to make my fortune in 2014 with the sweat of my computer.

https://preview.redd.it/mv21lvsa3do31.jpg?width=1280&format=pjpg&auto=webp&s=51bf5296a06eedc178079cf0b3ab4c3cfc44f271
Make money just by working on your computer: the rise of electronic currencies, in the wake of bitcoin, can be a little dream, especially in times of crisis. We tried the experiment. Wealth at your fingertips? Not for everybody.
Reading time: 6 min.
We have known at least since March 2013, with the soaring Bitcoin (BTC) price during the closing of Cypriot banks: electronic currencies, it has not much virtual. Since the creation of the enigmatic Satoshi Nakamoto serves as a safe haven, a playground for speculators, interests the States and even makes it possible to pay for his trip to the space where his beer, bigger world would dare to pretend that it only serves to buy prohibited substances on SilkRoad - if it ever was.
At the end of November, James Howells was mocked a lot, this Brit, caught in a household frenzy, inadvertently threw a hard disk containing 7,500 bitcoins, the equivalent of 4.8 million euros. A small fortune now lost in the depths of the Docksway dump near Newport. Nevertheless, before causing the consternation of the global Internet, Jamie still had the nose to undermine the BTC at a time when the experience mobilized a handful of hardcore geeks.
Since the rise (sawtooth) bitcoin, each unit currently weighs more than 800 dollars, nearly thirty cryptocurrencies have emerged. Is it possible, this year again, to let this promising, volatile and risky train pass, or to fall into
  1. Choose your electronic motto.
  2. All are based on the same principle: to summarize (very) big features [1], the issuance of money is governed by an algorithm, and the new corners put in circulation reward the resolution, by participants in a network of peer and mathematical problems, including the validation and archiving of transactions, which are public [2]. Mining a cryptocurrency is like putting the computing power of your computer in the service of the network.
  3. Since the program is decreasing [3], the mining becomes more and more difficult with time (and with the increase of the number of participants): to hope to make his pelote via the only computational activity, one must either have to at its disposal a large fleet of machines, to be a miner from the first hour. Exit the bitcoin, long since out of the reach of a personal computer.
  4. I similarly gave up the litecoin and peercoin, already well launched (they date respectively 2011 and 2012), to set my heart on one of the most recent currencies - and certainly the hippest of the moment: the dogecoin.
  5. As its name suggests, the cryptocurrency favorite Shiba Inus from around the world is a tribute to the Doge, one of the most famous memes of 2013, with its captions in Comic Sans, the font most sorry for the web. A geek joke, therefore, except that - the unfathomable mysteries of the Internet - its value jumped 900% in the third week of December, and she suffered a Christmas robbery online.
  6. Admittedly, at the time when these lines are written, the dogecoin caps at 0.00023 dollars [4] - its quite ridiculous (and quite depressing), but even if you bet on the future, so much to go frankly.
  7. 2. The hands in the engine the billboard.
  8. From there, things get tough (a little). Installing an electronic purse on ones computer is not very complicated (the software is available for Windows, MacOS, Android or, for the more adventurous, on a repository to compile under Linux). It is also possible to use an online wallet, but it is more risky (except, perhaps, when one is called James Howells). When opened for the first time, the purse automatically synchronizes with the Dogecoin network (be careful, it can be long), which gives you a payment address (we can generate more later).
  9. The two most common ways to undermine electronic money are to use the computing power of the computers microprocessor (CPU) or, more efficiently, that of the graphics card processor (GPU). In the first case, the program is simple to install; in the second, it is necessary to choose the most adapted to its material [5]. There are, thankfully, a lot of online tutorials. Still, to operate the corner board requires in all cases to trade the comfort of the GUI for aridity, so confusing to the layman, command lines - we have nothing for nothing.
  10. Finally, at work alone, we prefer collaboration. Mining is best done in groups, or rather in pool: it distributes the gains, of course, but also the difficulty. For the dogecoin as for all the crypto-currencies, the pools are numerous. A quick tour of a dedicated section of the Reddit community site can help you make your choice.
  11. 3. Extension of the field of struggle.
  12. And after? After, we can rest, since it is the machine that works. But the truth of a cryptocurrency - even at the exceptionally high LOL and LOL rates of the Shiba Inu - is cruel and brutal: not all computers are equal. Or rather, some are more equal than others. For while you heat your CPU or your graphics card to grapple some unfortunate corners, others will sweep the game thanks to specialized integrated circuits, computing capabilities much higher.
  13. If the game of buying and reselling corners is basically just another stock exchange mechanism, less the intervention of the central banks - what is at stake, and the big political question they ask: are we certain to prefer speculation pure and perfect to monetary policies, however questionable they may be? -, production, it is the law of the strongest (in calculation). There are even lethal weapons at $ 10,000 each, with which your processors are like mosquitoes in front of an A bomb.
  14. And if you think it does not matter because after all, it does not cost you anything, think again: the components, like humans, wear out faster when they work at full speed, and the bill of electricity can quickly grow. The profitability of the case is anything but certain, as evidenced by the results of online calculators. (Needless to say, our laughing dogecoin does not stand up to this kind of simulation.)
  15. Much more boring, from a collective point of view: the carbon footprint, current and above all expected, of electronic currencies worries more and more. Last spring, Bloomberg estimated that the energy consumption of the Bitcoin network was equivalent to that of 31,000 US households. Not sure, according to the site, that their emission is less damaging to the environment than have been some physical currencies.
  16. For exciting to analyze that is the emergence of cryptocurrencies, it is better to ask now about their cost, economic and ecological. To see it as a potential source of income, except for being a very early adopter with a hollow nose, an individual with a lot of computational capital or a clever trader, you have to make a point.
  17. If the recurrent comparison with the famous Ponzi pyramid [6] is discussed (after all, the decentralized currencies do not make promises), remains that, as long as the value does not collapse, the system benefits mainly to the first entrants - except James Howells.
  18. As the Bitcoin.fr site aptly states: all this is just an experiment, invest only the time and money you can afford to lose. LOLs love was not a worse reason than another to experiment, so I finally submitted my laptop to four days and three nights of intense activity, which makes me happy. owner of a good half a thousand dogecoins. Either the equivalent of 0.115 dollar, or 0.08 euro. It is obviously not worth the electricity consumed to generate them, it increases my carbon footprint, but it amuses my entourage. But laughter is, as everyone knows, a safe bet in times of crisis, less volatile than a real bitcoin.
  19. And then, after all, you never know.
  20. Amaelle Guiton.
  21. 1. For explanations more provided (the case is quite complex), refer, for example, to the series of very detailed notes devoted to blogger Turblog.
  22. 2. And as such, searchable by everyone. It is the identity of the users that is not known, unless they reveal it, hence the reputation of anonymity (relative, therefore) cryptocurrencies.
  23. 3. In the case of bitcoin, the maximum of 21 million units should be reached around 2140.
  24. 4. For a day-to-day follow-up, see the CoinMarketCap site which lists the exchange rates of crypto-currencies, based on the dollar value of bitcoin.
  25. 5. We discover then, unfortunately, that some graphics cards do not allow the mining. This is the case for the author of these lines, reduced to working in conditions of extreme computer deprivation.
  26. 6. Comparison which is at the heart of a hilarious note on the ponzicoin, signed by the economic journalist Matthew OBrien, on The Atlantic (to read if you intend seriously to invest in the dogecoin).
submitted by Mejbah411 to u/Mejbah411 [link] [comments]

The TAU Coin Concept Which is Based on Proof of Transaction as a New Consensus Algorithm

Recently, perhaps crypto currency watchers often hear about the ideas of Proof of Work and Proof of Stake, as well as the definition of mining, or the process of how new digital currencies are released through networks.
Proof of Work
As considered the first consensus algorithm, Proof of Work (PoW) is defined as a protocol that has the main purpose of preventing cyber attacks such as distributed denial-of-service (DDoS) attacks, which aim to use up computer system resources by sending fake requests.
The concept of Proof of work already existed even before bitcoin, but Satoshi Nakamoto applied this technique to - we still don't know who Nakamoto really is - his digital currency that revolutionized traditional transaction methods.
In fact, the idea of ​​the PoW was originally published by Cynthia Dwork and Moni Naor in 1993, but the term "Proof-of-Work" was created by Markus Jakobsson and Ari Juels in a document published in 1999.
However, taking into account the date it was made, POW is probably the biggest idea behind Nakamoto's Bitcoin white paper - published in 2008 - because it allows consensus without trust and distribution.
Proof-of-Work which is performed through mining and used by Bitcoin, Litecoin and Dogecoin among others. The miner is incentivized because it receives a reward for solving the puzzle that verifies the transaction. The quantity and quality of the computer determine the mining power and consequently the profit you can make. PoW reaches consensus because the miner has to (literally) prove the verification through computational labor, and at least 51% of the miner-network has to agree with the verification.
Proof of Stake
Proof of Stake (PoS) as the second consensus algorithm, is another way to validate transactions based on distributed consensus, and to achieve distributed consensus. This is still an algorithm, and the goal is the same as proof-of-work, but the process for achieving goals is very different.
The idea of ​​proof-of-work was first proposed at the BitCointalk forum in 2011, but the first digital currency to use this method was Peercoin in 2012, along with ShadowCash, Nxt, BlackCoin, NuShares / NuBits, Qora, and Nav Coin.
Unlike proof-of-work, where the algorithm rewards miners who solve mathematical equations with the aim of validating transactions and creating new blocks, with proof-of-stake, the creator of the new block is chosen in a deterministic way, depending on wealth, or defined as well as a bet. There are no block rewards.
This PoS selects a validator (comparable to a miner) based on the number of coins it deposits. Since one validator verifies the transaction, the miner doesn’t need to waste as much energy and hardware as Proof-of-Work – where each miner tries to solve the same transaction.
In addition, all digital currencies were made beforehand and the numbers never changed. This means, in the PoS system, there are no block rewards. So, the miners take transaction fees.
However, the rich get richer as they have higher chances at the selection procedure, meaning higher chances to receive the reward. This is why, in fact, in this PoS system, miners are referred to as counterfeiters. PoS is implemented by Peercoin, Decred, and Ethereum. This verification scheme reaches consensus because the validator-network checks the reviews as well. The validator won’t verify fraudulent transactions because it will lose more money (the deposit) than it can earn (the reward).
TAU Coin Concept on Proof of Transaction
Cited from http://networkcultures.org/longform/2018/08/25/proof-of-transaction-the-materiality-of-cryptocurrency/ ,
Proof-of-Transaction is defined as "a physical object that absorbs the process of transferring value from one space or entity to another. It captures the orders of magnitude of the exchange (from technology to phenomena) and narrates these realities through interobjective relations". Further, it is explained that transaction contains a meaning of ‘an agreement’ which involves an exchange or interaction between two entities. While other word that is ‘proof’ shall be referred to ‘evidence’, the witness of an event.
The proposal of TAU is an original consensus mechanism POT. It uses on-chain historical accumulated transactions to determine who can propose a new block. Block generation in TAU is still called mining like Bitcoin, but block reward only comes in the form of transaction fee. TAU is a single utility chain that funds wiring is the only thing supported; therefore, transaction fee is the only income for miners. TAU block structure is designed to support mobile phone mining for decentralization. Total 10 billions coins are generated in the genesis block, while the goal is for each individual to have a full TAU. For every address, the probability of generating a new block is exactly in linear proportion to its historical transaction. This sum is called mining power, an analogue to hash power in Bitcoin.
Further information can be found at www.taucoin.io.
submitted by denio17 to Tau_coin [link] [comments]

Crypto Mining for Beginners. Is it really worth it?

Crypto Mining for Beginners. Is it really worth it?

Image from blokt.com
Mining cryptocoins is an arms race that rewards early adopters. You might have heard of Bitcoin, the first decentralized cryptocurrency that was released in early 2009. Similar digital currencies have crept into the worldwide market since then, including a spin-off from Bitcoin called Bitcoin Cash. You can get in on the cryptocurrency rush if you take the time to learn the basics properly.

Which Alt-Coins Should Be Mined?


Image from btcwarp.com
If you had started mining Bitcoins back in 2009, you could have earned thousands of dollars by now. At the same time, there are plenty of ways you could have lost money, too. Bitcoins are not a good choice for beginning miners who work on a small scale. The current up-front investment and maintenance costs, not to mention the sheer mathematical difficulty of the process, just doesn't make it profitable for consumer-level hardware. Now, Bitcoin mining is reserved for large-scale operations only.
Litecoins, Dogecoins, and Feathercoins, on the other hand, are three Scrypt-based cryptocurrencies that are the best cost-benefit for beginners.
Dogecoins and Feathercoins would yield slightly less profit with the same mining hardware but are becoming more popular daily. Peercoins, too, can also be a reasonably decent return on your investment of time and energy.
As more people join the cryptocoin rush, your choice could get more difficult to mine because more expensive hardware will be required to discover coins. You will be forced to either invest heavily if you want to stay mining that coin, or you will want to take your earnings and switch to an easier cryptocoin. Understanding the top 3 bitcoin mining methods is probably where you need to begin; this article focuses on mining "scrypt" coins.
Also, be sure you are in a country where bitcoins and bitcoin mining is legal.

Is It Worth It to Mine Cryptocoins?

As a hobby venture, yes, cryptocoin mining can generate a small income of perhaps a dollar or two per day. In particular, the digital currencies mentioned above are very accessible for regular people to mine, and a person can recoup $1000 in hardware costs in about 18-24 months.
As a second income, no, cryptocoin mining is not a reliable way to make substantial money for most people. The profit from mining cryptocoins only becomes significant when someone is willing to invest $3000-$5000 in up-front hardware costs, at which time you could potentially earn $50 per day or more.

Set Reosonable Expectations

If your objective is to earn substantial money as a second income, then you are better off purchasing cryptocoins with cash instead of mining them, and then tucking them away in the hopes that they will jump in value like gold or silver bullion. If your objective is to make a few digital bucks and spend them somehow, then you just might have a slow way to do that with mining.
Smart miners need to keep electricity costs to under $0.11 per kilowatt-hour; mining with 4 GPU video cards can net you around $8.00 to $10.00 per day (depending upon the cryptocurrency you choose), or around $250-$300 per month.
The two catches are:
1) The up-front investment in purchasing 4 ASIC processors or 4 AMD Radeon graphic processing units
2) The market value of cryptocoins
Now, there is a small chance that your chosen digital currency will jump in value alongside Bitcoin at some point. Then, possibly, you could find yourself sitting on thousands of dollars in cryptocoins. The emphasis here is on "small chance," with small meaning "slightly better than winning the lottery."
If you do decide to try cryptocoin mining, definitely do so as a hobby with a very small income return. Think of it as "gathering gold dust" instead of collecting actual gold nuggets. And always, always, do your research to avoid a scam currency.

How Cryptocoin Mining Works

Let's focus on mining scrypt coins, namely Litecoins, Dogecoins, or Feathercoins. The whole focus of mining is to accomplish three things:
- Provide bookkeeping services to the coin network. Mining is essentially 24/7 computer accounting called "verifying transactions."
- Get paid a small reward for your accounting services by receiving fractions of coins every couple of days.
- Keep your personal costs down, including electricity and hardware.

The Laundry List: What You Will Need to Mine Cryptocoins


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You will need ten things to mine Litecoins, Dogecoins, and/or Feathercoins.
1) A free private database called a coin wallet. This is a password-protected container that stores your earnings and keeps a network-wide ledger of transactions.
2) A free mining software package, like this one from AMD, typically made up of cgminer and stratum.
3) A membership in an online mining pool, which is a community of miners who combine their computers to increase profitability and income stability.
4) Membership at an online currency exchange, where you can exchange your virtual coins for conventional cash, and vice versa.
5) A reliable full-time internet connection, ideally 2 megabits per second or faster speed.
6) A hardware setup location in your basement or other cool and air-conditioned space.
7) A desktop or custom-built computer designed for mining. Yes, you may use your current computer to start, but you won't be able to use the computer while the miner is running. A separate dedicated computer is ideal. Do not use a laptop, gaming console or handheld device to mine. These devices just are not effective enough to generate income.
8) An ATI graphics processing unit (GPU) or a specialized processing device called a mining ASIC chip. The cost will be anywhere from $90 used to $3000 new for each GPU or ASIC chip. The GPU or ASIC will be the workhorse of providing the accounting services and mining work.
10) A house fan to blow cool air across your mining computer. Mining generates substantial heat, and cooling the hardware is critical for your success.
11) You absolutely need a strong appetite of personal curiosity for reading and constant learning, as there are ongoing technology changes and new techniques for optimizing coin mining results. The most successful coin miners spend hours every week studying the best ways to adjust and improve their coin mining performance.

Original Blog Post: https://www.lifewire.com/cryptocoin-mining-for-beginners-2483064
submitted by Tokenberry to NewbieZone [link] [comments]

My brief observation of most common Consensus Algorithms

I have studied most common consensus algorithms. Here is the summary, maybe for someone it will be helpful. My goal is to describe every specific consensus briefly so everyone can easily understand it. *Please let me know if I have wrote something wrong, or maybe you are aware of interesting algorithm, I have missed.
[Proof of Work] - very short, cuz it's well-known.
[1] Bitcoin - to generate a new block miner must generate hash of the new block header that is in line with given requirements.
Others: Ethereum, Litecoin etc.
[Hybrid of PoW and PoS]
[2] Decred - hybrid of “proof of work” and “proof of stake”. Blocks are created about every 5 minutes. Nodes in the network looking for a solution with a known difficulty to create a block (PoW). Once the solution is found it is broadcast to the network. The network then verifies the solution. Stakeholders who have locked some DCR in return for a ticket* now have the chance to vote on the block (PoS). 5 tickets are chosen pseudo-randomly from the ticket pool and if at least 3 of 5 vote ‘yes’ the block is permanently added to the blockchain. Both miners and voters are compensated with DCR : PoS - 30% and PoW - 60% of about 30 new Decred issued with a block. * 1 ticket = ability to cast 1 vote. Stakeholders must wait an average of 28 days (8,192 blocks) to vote their tickets.
[Proof of Stake]
[3] Nxt - The more tokens are held by account, the greater chance that account will earn the right to generate a block. The total reward received as a result of block generation is the sum of the transaction fees located within the block. Three values are key to determining which account is eligible to generate a block, which account earns the right to generate a block, and which block is taken to be the authoritative one in times of conflict: base target value, target value and cumulative difficulty. Each block on the chain has a generation signature parameter. To participate in the block's forging process, an active account digitally signs the generation signature of the previous block with its own public key. This creates a 64-byte signature, which is then hashed using SHA256. The first 8 bytes of the resulting hash are converted to a number, referred to as the account hit. The hit is compared to the current target value(active balance). If the computed hit is lower than the target, then the next block can be generated.
[4] Peercoin (chain-based proof of stake) - coin age parameter. Hybrid PoW and PoS algorithm. The longer your Peercoins have been stationary in your account (to a maximum of 90 days), the more power (coin age) they have to mint a block. The act of minting a block requires the consumption of coin age value, and the network determines consensus by selecting the chain with the largest total consumed coin age. Reward - minting + 1% yearly.
[5] Reddcoin (Proof of stake Velocity) - quite similar to Peercoin, difference: not linear coin-aging function (new coins gain weight quickly, and old coins gain weight increasingly slowly) to encourage Nodes Activity. Node with most coin age weight have a bigger chance to create block. To create block Node should calculate right hash. Block reward - interest on the weighted age of coins/ 5% annual interest in PoSV phase.
[6] Ethereum (Casper) - uses modified BFT consensus. Blocks will be created using PoW. In the Casper Phase 1 implementation for Ethereum, the “proposal mechanism" is the existing proof of work chain, modified to have a greatly reduced block reward. Blocks will be validated by set of Validators. Block is finalised when 2/3 of validators voted for it (not the number of validators is counted, but their deposit size). Block creator rewarded with Block Reward + Transaction FEES.
[7] Lisk (Delegated Proof-of-stake) - Lisk stakeholders vote with vote transaction (the weight of the vote depends on the amount of Lisk the stakeholder possess) and choose 101 Delegates, who create all blocks in the blockchain. One delegate creates 1 block within 1 round (1 round contains 101 blocks) -> At the beginning of each round, each delegate is assigned a slot indicating their position in the block generation process -> Delegate includes up to 25 transactions into the block, signs it and broadcasts it to the network -> As >51% of available peers agreed that this block is acceptable to be created (Broadhash consensus), a new block is added to the blockchain. *Any account may become a delegate, but only accounts with the required stake (no info how much) are allowed to generate blocks. Block reward - minted Lisks and transaction fees (fees for all 101 blocks are collected firstly and then are divided between delegates). Blocks appears every 10 sec.
[8] Cardano (Ouroboros Proof of Stake) - Blocks(slots) are created by Slot Leaders. Slot Leaders for N Epoch are chosen during n-1 Epoch. Slot Leaders are elected from the group of ADA stakeholders who have enough stake. Election process consist of 3 phases: Commitment phase: each elector generates a random value (secret), signs it and commit as message to network (other electors) saved in to block. -> Reveal phase: Each elector sends special value to open a commitment, all this values (opening) are put into the block. -> Recovery phase: each elector verifies that commitments and openings match and extracts the secrets and forms a SEED (randomly generated bytes string based on secrets). All electors get the same SEED. -> Follow the Satoshi algorithm : Elector who have coin which corresponded to SEED become a SLOT LEADER and get a right to create a block. Slot Leader is rewarded with minted ADA and transactions Fee.
[9] Tezos (Proof Of Stake) - generic and self-amending crypto-ledger. At the beginning of each cycle (2048 blocks), a random seed is derived from numbers that block miners chose and committed to in the penultimate cycle, and revealed in the last. -> Using this random seed, a follow the coin strategy (similar to Follow The Satoshi) is used to allocate mining rights and signing rights to stakeholders for the next cycle*. -> Blocks are mined by a random stakeholder (the miner) and includes multiple signatures of the previous block provided by random stakeholders (the signers). Mining and signing both offer a small reward but also require making a one cycle safety deposit to be forfeited in the event of a double mining or double signing. * the more coins (rolls) you have - the more your chance to be a minesigner.
[10] Tendermint (Byzantine Fault Tolerance) - A proposal is signed and published by the designated proposer at each round. The proposer is chosen by a deterministic and non-choking round robin selection algorithm that selects proposers in proportion to their voting power. The proposer create the block, that should be validated by >2/3 of Validators, as follow: Propose -> Prevote -> Precommit -> Commit. Proposer rewarded with Transaction FEES.
[11] Tron (Byzantine Fault Tolerance) - This blockhain is still on development stage. Consensus algorithm = PoS + BFT (similar to Tendermint): PoS algorithm chooses a node as Proposer, this node has the power to generate a block. -> Proposer broadcasts a block that it want to release. -> Block enters the Prevote stage. It takes >2/3 of nodes' confirmations to enter the next stage. -> As the block is prevoted, it enters Precommit stage and needs >2/3 of node's confirmation to go further. -> As >2/3 of nodes have precommited the block it's commited to the blockchain with height +1. New blocks appears every 15 sec.
[12] NEO (Delegated Byzantine Fault Tolerance) - Consensus nodes* are elected by NEO holders -> The Speaker is identified (based on algorithm) -> He broadcasts proposal to create block -> Each Delegate (other consensus nodes) validates proposal -> Each Delegate sends response to other Delegates -> Delegate reaches consensus after receiving 2/3 positive responses -> Each Delegate signs the block and publishes it-> Each Delegate receives a full block. Block reward 6 GAS distributed proportionally in accordance with the NEO holding ratio among NEO holders. Speaker rewarded with transaction fees (mostly 0). * Stake 1000 GAS to nominate yourself for Bookkeeping(Consensus Node)
[13] EOS (Delegated Proof of Stake) - those who hold tokens on a blockchain adopting the EOS.IO software may select* block producers through a continuous approval voting system and anyone may choose to participate in block production and will be given an opportunity to produce blocks proportional to the total votes they have received relative to all other producers. At the start of each round 21 unique block producers are chosen. The top 20 by total approval are automatically chosen every round and the last producer is chosen proportional to their number of votes relative to other producers. Block should be confirmed by 2/3 or more of elected Block producers. Block Producer rewarded with Block rewards. *the more EOS tokens a stakeholder owns, the greater their voting power
[The XRP Ledger Consensus Process]
[14] Ripple - Each node receives transaction from external applications -> Each Node forms public list of all valid (not included into last ledger (=block)) transactions aka (Candidate Set) -> Nodes merge its candidate set with UNLs(Unique Node List) candidate sets and vote on the veracity of all transactions (1st round of consensus) -> all transactions that received at least 50% votes are passed on the next round (many rounds may take place) -> final round of consensus requires that min 80% of Nodes UNL agreeing on transactions. It means that at least 80% of Validating nodes should have same Candidate SET of transactions -> after that each Validating node computes a new ledger (=block) with all transactions (with 80% UNL agreement) and calculate ledger hash, signs and broadcasts -> All Validating nodes compare their ledgers hash -> Nodes of the network recognize a ledger instance as validated when a 80% of the peers have signed and broadcast the same validation hash. -> Process repeats. Ledger creation process lasts 5 sec(?). Each transaction includes transaction fee (min 0,00001 XRP) which is destroyed. No block rewards.
[The Stellar consensus protocol]
[15] Stellar (Federated Byzantine Agreement) - quit similar to Ripple. Key difference - quorum slice.
[Proof of Burn]
[16] Slimcoin - to get the right to write blocks Node should “burn” amount of coins. The more coins Node “burns” more chances it has to create blocks (for long period) -> Nodes address gets a score called Effective Burnt Coins that determines chance to find blocks. Block creator rewarded with block rewards.
[Proof of Importance]
[17] NEM - Only accounts that have min 10k vested coins are eligible to harvest (create a block). Accounts with higher importance scores have higher probabilities of harvesting a block. The higher amount of vested coins, the higher the account’s Importance score. And the higher amount of transactions that satisfy following conditions: - transactions sum min 1k coins, - transactions made within last 30 days, - recipient have 10k vested coins too, - the higher account’s Important score. Harvester is rewarded with fees for the transactions in the block. A new block is created approx. every 65 sec.
[Proof of Devotion]
[18] Nebulas (Proof of Devotion + BFT) - quite similar to POI, the PoD selects the accounts with high influence. All accounts are ranked according to their liquidity and propagation (Nebulas Rank) -> Top-ranked accounts are selected -> Chosen accounts pay deposit and are qualified as the blocks Validators* -> Algorithm pseudo-randomly chooses block Proposer -> After a new block is proposed, Validators Set (each Validator is charged a deposit) participate in a round of BFT-Style voting to verify block (1. Prepare stage -> 2. Commit Stage. Validators should have > 2/3 of total deposits to validate Block) -> Block is added. Block rewards : each Validator rewarded with 1 NAS. *Validators Set is dynamic, changes in Set may occur after Epoch change.
[IOTA Algorithm]
[19] IOTA - uses DAG (Directed Acyclic Graph) instead of blockchain (TANGLE equal to Ledger). Graph consist of transactions (not blocks). To issue a new transaction Node must approve 2 random other Transactions (not confirmed). Each transaction should be validate n(?) times. By validating PAST(2) transactions whole Network achieves Consensus. in Order to issue transaction Node: 1. Sign transaction with private key 2. choose two other Transactions to validate based on MCMC(Markov chain Monte Carlo) algorithm, check if 2 transactions are valid (node will never approve conflicting transactions) 3. make some PoW(similar to HashCash). -> New Transaction broadcasted to Network. Node don’t receive reward or fee.
[PBFT + PoW]
[20] Yobicash - uses PBFT and also PoW. Nodes reach consensus on transactions by querying other nodes. A node asks its peers about the state of a transaction: if it is known or not, and if it is a doublespending transaction or not. As follow : Node receives new transaction -> Checks if valid -> queries all known nodes for missing transactions (check if already in DAG ) -> queries 2/3 nodes for doublepsending and possibility -> if everything is ok add to DAG. Reward - nodes receive transaction fees + minting coins.
[Proof of Space/Proof of Capacity]
[21] Filecoin (Power Fault Tolerance) - the probability that the network elects a miner(Leader) to create a new block (it is referred to as the voting power of the miner) is proportional to storage currently in use in relation to the rest of the network. Each node has Power - storage in use verified with Proof of Spacetime by nodes. Leaders extend the chain by creating a block and propagating it to the network. There can be an empty block (when no leader). A block is committed if the majority of the participants add their weight on the chain where the block belongs to, by extending the chain or by signing blocks. Block creator rewarded with Block reward + transaction fees.
[Proof of Elapsed Time]
[22] Hyperledger Sawtooth - Goal - to solve BFT Validating Nodes limitation. Works only with intel’s SGX. PoET uses a random leader election model or a lottery based election model based on SGX, where the protocol randomly selects the next leader to finalize the block. Every validator requests a wait time from an enclave (a trusted function). -> The validator with the shortest wait time for a particular transaction block is elected the leader. -> The BlockPublisher is responsible for creating candidate blocks to extend the current chain. He takes direction from the consensus algorithm for when to create a block and when to publish a block. He creates, Finalizes, Signs Block and broadcast it -> Block Validators check block -> Block is created on top of blockchain.
[Other]
[23] Byteball (Delegated Byzantine Fault Tolerance) - only verified nodes are allowed to be Validation nodes (list of requirements https://github.com/byteball/byteball-witness). Users choose in transaction set of 12 Validating nodes. Validating nodes(Witnesses) receive transaction fees.
[24] Nano - uses DAG, PoW (HashCash). Nano uses a block-lattice structure. Each account has its own blockchain (account-chain) equivalent to the account’s transaction/balance history. To add transaction user should make some HashCash PoW -> When user creates transaction Send Block appears on his blockchain and Receive block appears on Recipients blockchain. -> Peers in View receive Block -> Peers verify block (Double spending and check if already in the ledger) -> Peers achieve consensus and add block. In case of Fork (when 2 or more signed blocks reference the same previous block): Nano network resolves forks via a balance-weighted voting system where representative nodes vote for the block they observe, as >50% of weighted votes received, consensus achieved and block is retained in the Node’s ledger (block that lose the vote is discarded).
[25] Holochain - uses distributed hash table (DHT). Instead of trying to manage global consensus for every change to a huge blockchain ledger, every participant has their own signed hash chain. In case of multi-party transaction, it is signed to each party's chain. Each party signs the exact same transaction with links to each of their previous chain entries. After data is signed to local chains, it is shared to a DHT where every neighbor node validate it. Any consensus algorithms can be built on top of Holochain.
[26] Komodo ('Delegated' Delayed Proof of Work (dPoW)) - end-to-end blockchain solutions. DPoW consensus mechanism does not recognize The Longest Chain Rule to resolve a conflict in the network, instead the dPoW looks to backups it inserted previously into the chosen PoW blockchain. The process of inserting backups of Komodo transactions into a secure PoW is “notarization.” Notarisation is performed by the elected Notary nodes. Roughly every ten minutes, the Notary nodes perform a special block hash mined on the Komodo blockchain and take note of the overall Komodo blockchain “height”. The notary nodes process this specifc block so that their signatures are cryptographically included within the content of the notarized data. There are sixty-four “Notary nodes” elected by a stake-weighted vote, where ownership of KMD represents stake in the election. They are a special type of blockchain miner, having certain features in their underlying code that enable them to maintain an effective and cost-efcient blockchain and they periodically receives the privilege to mine a block on “easy difculty.”
post with references you can find here: https://bitcointalk.org/index.php?topic=2936428.msg30170673#msg30170673
submitted by tracyspacygo to CryptoTechnology [link] [comments]

Three Laws of BTC Bull and Bear Cycle and Its Applications — Freezing Point Forecast — One

Three Laws of BTC Bull and Bear Cycle and Its Applications — Freezing Point Forecast — One
📷
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TOKEN Roll x FENBUSHI DIGITAL
Analyst: Song Shuangjie
Special Adviser: Shen Bo Rin
Guide:
The fourth price-rising cycle of BTC might commence around May 2019. The mainstream institutions join the game and ETF might be the driving force of the fourth round of price cycle.
Summary:
BTC has undergone three rounds of price cycles. ‘It is different this time’ has always been a terrible lesson for investors. The tokens, typical represented by BTC, are special in nature to other financial products, which makes it easily get mistaken that BTC will go up straightly and never decline. When the cycle power works, the asset price, which was thought to create a different history, will collapse. There are 3 major rules of the BTC price cycle:
A. BTC price cycle is closely related to its halving cycle. A complete BTC price cycle lasts for about four years. The price-rising section will commence one year ahead of the time before the output is halved. The BTC output was halved for the first time at the end of November 2012, and before that the BTC price touched the bottom in November 2011. The BTC output was halved for the second time in July 2016, as the BTC price touched the bottom in August 2015. As you can see, each time BTC output halving, is the start of a price-rising cycle, and the price speeding up begins with it.
B. BTC price fluctuation range decreases as market value increasing. The BTC’s (in circulation) market value varies with its price fluctuations, which means BTC’s price rising makes its market value increases, and the price fluctuation range decreases. It is similar to the historical process of other asset classes. During the first price cycle, the price of BTC rose by 10636 times which was the biggest gain, and the maximum drawdown was declined by 93.76%. During the second price cycle, the price of BTC rose by 623 times, and declined by 83.93% maximum. During the third price cycle, BTC rose by 98.57 times at most, the maximum declining has not been confirmed yet.
C. The innovation led by BTC is constantly evolving and more and more approved by the mainstream. From BTC to Altcoin, from Altcoin to Crowdsale, there are iconic innovations and applications in every price cycle. In the first cycle, the birth and gradual application of BTC was a landmark event. In the second cycle, with the re-emergence of BTC in 2013, the tide of the Altcoins was rampant, and a large number of Altcoins appeared. In the third cycle, Crowdsale began to be popular around the world, and many websites started to provide Crowdsale's news and discussion forum. Since 2017, Crowdsale has dominated the blockchain investment, far exceeding VCs and corporate investment. With the development of blockchain technology, the evolution of digital certification, the improvement of practitioners' awareness, and the evolution of government regulation, the innovation led by BTC has evolved and is more approved by the mainstream.
The third round of the price cycle might come to an end around May 2019, and followed by the fourth round of price cycle. The maximum rise in the BTC's fourth price-rising cycle will be smaller than last three cycles. BTC's increasing market value demands more capital. Digital token shall embrace supervision to absorb more institutional funds. ETF will be a viable solution. In the future, it will shift from Crowdsale to ETF, and from deregulation to embracing supervision.
Risk Tips: ETFs have put capital amount into this market less than that we expected. Quantum computer technology is advancing by leaps and bounds
Content
1 The First Round of Price Cycle .
2 The Second Round of Price Cycle
3 The Third Round of Price Cycle
4 Three Major Rules of BTC Price Cycle
4.1 BTC price cycle is closely related to its halving cycle
4.2 BTC price cycle is closely related to its halving cycle
4.3 BTC-led innovatioized by the mainstream
5 The new journey of BTC will Start in May 2019
List of Graphs
Graph 1: BTC Price Trend in The First Price Cycle (in USD)
Graph 2: BTC price trend in the second round of price cycle (in USD)
Graph 3: The number of tokens in 2013 has increased significantly Graph 4: BTC price trend in the third round of price cycle (in USD)
Graph 5: VIX index and BTC price are negatively correlated
Graph 6: Crowdsale has dominated blockchain investment since 2017 (millions of US dollars)
Graph 7: A large number of Crypto Funds were established in recent years.
Graph 8: ETH price trend (in USD)
Graph 9: ETH price is positively related to the size of Crowdsale financing
Graph 10: Lightning network capacity continues to grow
Graph 11: The number of lightning network channels continues to grow
Graph 12: The global Crowdsale growth rate slows down in 2018 .
Graph 13: Crowdsale’s fundraising has started to decline since 2018 .
Graph 14: Significant growth in venture capital in the blockchain sector in 2018
Graph 15: BTC block reward trend reduction
Graph 16: BTC price cycle and halving mechanism (in USD)
Graph 17: BTC market value scale trend increase
Graph 18: BTC price fluctuations become smaller
Graph 19: Admission to mainstream institutions has continued since the end of 2018
Graph 20: The third round of the price cycle may be completed around May 2019
Graph 21: The current stage of the price cycle has been probable more than half, and the downside space is limited
History doesn't repeat itself, but it does rhyme. --Mark Twain
‘It is different this time’ has always been a terrible lesson for investors. The tokens, typical represented by BTC, are special in nature to other financial products, which results in producing an idea, in some investors’ mind, that the price of BTC will go up straightly and never decline. When the cycle power works, the asset price, which was thought to create a different history, will collapse. No matter it is the A-share market of 2007 or the one of 2015, or any ‘bubble time’ in human history, the cycle power played its role. As far as BTC is concerned, its price has also experienced three rounds of cycles.
In addition, when the asset price is in a dark period of continuous decline and weak rebound, the power of the cycle also works. As long as it is a valuable asset, its price will eventually bounce back from the bottom. Opportunities have always been there, if you have an asset with high potential in hand. In the dark moments before dawn, the more you are afraid, the more you will be confused. At this time, you have to believe in the value investing. ‘Be fearful when others are greedy and be greedy when others are fearful’, not the other way around. That means, we shall invest reversely, buying undervalued assets gradually in the bottom region of price decline cycle; selling overvalued assets gradually in the top region of price-rising cycle; and following the trend in other time region of the cycle.
1 The First Round of Price Cycle
The first round of BTC price cycle lasted for 610 days, from March 2010 to November 2011, and in this cycle, BTC price rise rate was the highest of BTCs three price cycles.
The price rise stage of the first round of price cycle, from March 2010 to June 2011, lasted for 447 days. The starting price was 0.003 USD/piece, and the highest price was 31.91 USD/piece, the rise rate reached 10,636 times. The price decline section of the first round of price cycle, from June 2011 to November 2011, lasted for 163 days. In this price decline section, the starting price of BTC was $31.91 per piece, and the lowest price was $1.99 per piece. The decline rate was 94%.
On May 22, 2010, the famous BTC Pizza dealt. Laszlo Hanyecz from Jacksonville, FL, bought two pizzas with 10,000 BTCs. Each price ofBTC is less than 0.01US dollars.
In the first round of the price cycle, there is no explicit positive or negative factors causing BTC's price huge fluctuation. Fluctuations are more like in a “natural” situation. Before the first BTC bubble bursted in November 2011, its price was in a trend of increasing. The reason of rise was that the price base of BTC was very low. With the understanding of BTC gradually getting better, the demand increased, and then, the price rose. For example, June 2011, WikiLeaks and some organizations began accepting BTC donations.
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2 The Second Round of Price Cycle
The second round of BTC price cycle lasted for 1377 days, from November 2011 to August 2015, and in this cycle, the price of BTC exceeded gold for the first time.
The price rise stage of the second round of price cycle, from November 2011 to November 2013, lasted for 743 days. The starting price was $1.99 USD/piece, and the highest price was 1,242 USD/piece, the rise rate reached 623 times. The price decline section of the second round of price cycle. From November 2013 to August 2015, lasted for 634 days. In this price decline stage, the starting price of BTC was 1,242 USD per piece, and the lowest price was 199.57 USD per piece. The decline rate was 84%.
At the second price cycle, the range of application of BTC has been greatly expanded. In November 2012, WordPress began to accept BTC; and in October 2013, the world's first BTC ATM was deployed in a coffee shop in Vancouver where customers could buy and sell BTC. In November 2013, the University of Nicosia announced accepting BTC for tuition, the university's chief financial officer called it "gold of tomorrow"; In addition to some underground economy and gray economy began to accept BTC, BTC is also getting closer to daily life.
The success of BTC popularized altcoins. The first type of altcoin LTC (Litecoin) was created in October 2011, and it is the time when the BTC price came to the end of price decline. In 2011, Namecoin and SwiftCoin were born successively. In 2012, Bytecoin and Peercoin were issued, however, BTC was still in the stage of rising slowly from the bottom, and the market was not hot. Along with the re-emergence of BTC in 2013, the tide of the altcoins is rampant, and a large number of altcoins are issued. According to CoinMarketCap data, there were 66 kinds of altcoins at the end of 2013, while there were less than 10 at the beginning of the year.
The safe-haven properties of BTC are widely approved. BTC was a choice for people in many countries that are in crises. The residents flocked to BTC, hoping to maintain assets value through BTC. This phenomenon has occurred many times during the European debt crisis. For example, in early 2013, in order to get the bailout, the Cyprus government imposed taxes on deposits and imposed strict capital controls. In order to prevent property from shrinking, the Cypriot people rushed to bank runs and exchanged their currencies for BTC. The price of BTC quickly rose from 30 something to 265 US dollars.

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Due to the lack of supervision, BTC is often affected by negative events, which makes the market confidence in the danger of collapsing. In October 2013, the FBI seized approximately 26,000 BTCs from the Silk Road website, causing the BTC price to collapse to 110 US dollars. On December 5, 2013, the People's Bank of China banned the use of BTC by Chinese financial institutions, which made the price of BTC declined. In February 2014, Mt. Gox, the largest BTC exchange at the time, said that 850,000 BTCs of its customers were stolen, worth nearly 500 million US dollars, and BTC prices fell nearly half, from 867 to 439 US dollars.
The emergence of a large number of altcoins caused market bleeding. Since 2014, the number of altcoins has exploded. By August 2015, the number has reached 556, resulting in diversion of funds and market expansion. On May 1, 2013, BTC accounted for 94.29% of the market value of all tokens, and the market value of other tokens except the top 10 tokens was about 1%. By August 25, 2015, the proportion of BTC is about 83%, and the other tokens account for 4%, which is obvious.
No matter how magical token is, it is still a kind of asset. The mean return of value is a basic common sense of investment. The value will pull the price back to it, just like the gravity. The risk increases with the price rises, and the value appears when the price declines. In the rising section of this cycle, the price of BTC rose by 623 times, which is a great rise rate. When the price is too high, and the potential return in the future is insufficient, the attractiveness to new investors will fall, and the old investors will leave and look for more lucrative assets. Once the power of trend investors exhausted, the trend will reverse.
3 The Third Round of Price Cycle
The third round of price cycle of BTC is not over and is currently in the downward phase of the cycle. The price increased from August 2015 and lasted for 845 days till December 2017. The starting price of the price-rising cycle BTC was 199.57 USD/piece, and the highest price was close to 20,000 USD/piece. The rise rate is up to 99 times. Since December 2017, the price started to decline. The price has fallen to the lowest 3,191.30 US dollars up to now, a drop of 84%.
BTC networks expanded rapidly, and BTC has gained increasing recognition among legislators and traditional financial companies. Studies have shown that by November 2013, the commercialization of BTC is no longer driven by the underground economy, but by legitimate businesses. During this price cycle, people from more countries can get in touch with, select, trade and use BTC on a daily basis. In January 2016, Bitcoin computing capacity reached 1 exahash/S for the first time; In March 2016, the Japanese cabinet acknowledged that BTC has a function similar to real money. In 2017, Norway's largest online bank Skandiabanken integrated BTC accounts. In December 2017, Chicago Mercantile Exchange (CME) officially launched BTC futures, which is an important step for BTC to take toward mainstream investment. In October 2018, Fidelity launched its independent subsidiary Fidelity Digital Asset Services to provide digital asset services to institutional customers. In December 2018, the first round of financing was completed by the token exchange Bakkt launched by the Intercontinental Exchange. In February 2019, Nasdaq officially launched - Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX)- two indexes. The pension fund of US invests in the encryption fund, the mainstream organization is accelerating, and the relevant infrastructure is gradually improved.
BTC has become a risky asset. Under the current “three lows” environment - low interest rates, low spreads and low volatility, investors are seeking high returns, which leads to excessive financial risk behaviors and complacency, investors' risk appetite, and high leverage tools and the acceptance of high-risk products has increased, arbitrage transactions have prevailed, liquidity mismatches have been severe, and the overall market is fragile. As the results we can see that, the price of BTC is increasingly correlated with the VIX index (Chicago Options Exchange Volatility Index). A lower VIX index indicates that investors expect less volatility, while a higher VIX indicates higher expected volatility. The lower VIX index indicates that investors are optimistic about S&P 500, while the higher VIX means that investors are uncertain about the market outlook. When market volatility declines, investors buy stocks and other types of risk assets, when the market volatility rises, investors sell risky assets.
Risk assets will be dumped when risk appetite reduces panic market. BTC bid farewell to the nature of safe-haven assets and become a risky asset. Since December 2017, with the decline of the VIX index, the price of BTC rises, and the price of BTC is negatively correlated with the VIX index. At the beginning of 2018, the VIX index skyrocketed and BTC fell rapidly. In October 2018, the global market risk aversion trend increased, the VIX index went up, and the BTC price also fell sharply.

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Crowdsale has become the main financing method in the blockchain field. Crowdsale was born in the second round of the price cycle, Mastercoin did the world's first Crowdsale in July 2013. In 2014, Ethereum also raised funds through Crowdsale, when the price of ETH was less than 0.22 USD per piece. After 2016, when it is in the third price cycle, Crowdsale is popular around the world, and many websites began to provide information and discussion communities for Crowdsale. From a global perspective, Crowdsale has dominated the blockchain investment since 2017, far exceeding VCs and corporate investment. In 2017, Crowdsale raised 7.4 billion US dollars, and in the first half of 2018, Crowdsale Raised 12 billion US dollars.
The Crypto Fund emerged. Along with the Crowdsale boom, a large number of Crypto Funds were created. The number of Crypto Funds newly established in 2017 was nearly 200, far exceeding the total amount of the Crypto funds created in previous years, which fully demonstrated that, with the rise in the price of the token, the enthusiasm of funds to blockchain field is high.

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The rise of blockchain 2.0, the Crowdsale tide pushed ETH up nearly 10,000 times. In the third round of the BTC (Token) price cycle, the biggest star is not BTC, but ETH. Crowdsale after 2016, issued tokens mainly through Ethereum, which represented the rise of ETH in the blockchain 2.0 era. Crowdsale prosperity boosted the rise of ETH. On January 13, 2018, the price of ETH rose to a peak of 1,432.88 US dollars per piece, which is 6512 times rise rate comparing to its initial price.
The ETH price has a significant positive correlation with the growth rate of Crowdsale financing. The growth rate of Crowdsale financing decreased by 69.23% in 2015, the price of ETH decreased by 66.30% in the same year. In 2016, the growth rate of Crowdsale financing increased by 2737.5%, and ETH increased by 753.74%. In 2017, the growth rate of Crowdsale financing increased by 3,159.91%, and ETH rose by 8809.91%.

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Plan for public blockchain performance improvement emerged, and significant progress were made in lightning network. With the popularization of blockchains, the congestion of BTC and other public chains has gradually emerged, and performance has become one of the bottlenecks in the blockchain industry. In 2018, the performance-improvement plan of the public blockchain emerged. Improvements were made to the difference in blockchain logical architecture, including on-chain capacity expansion schemes by improving consensus mechanism and sharing, and off-chain capacity expansion schemes by status channel, sidechain, off-chain computing, and Layer 0 expansion scheme that enhance the scalability of the blockchain by optimizing the underlying data transmission protocol of the blockchain. Since the main net of BTC lightning network goes live, the number and capacity of channels have been increasing. As of March 10, 2019, the capacity has reached 790 BTC, and the number of channels has reached 35,464.

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Note: The Unique channel refers to the channel that is directly connected to the node for the first time, and the Duplicate channel refers to the channel between the nodes that have been connected.
The standardization of the token is promoted. On January 22, 2018, South Korea required all BTC dealers to disclose their identity, thereby prohibiting anonymous trading of BTC. During the first quarter of 2018, Facebook, Google and Twitter prohibited the promotion of Crowdsale, while the US Securities and Exchange Commission investigated a large number of Crowdsale projects, and issued bans to some Crowdsale projects. Regardless of the government's attitude towards the token, it is committed to incorporating the token into the regulatory framework for legal compliance.
The Crowdsale bubble bursted and the magical story is no longer magical. According to incomplete statistics, in 2017, 871 Crowdsale were completed in the world. These projects involved directions as distributed analogous Facebook, twitter, amazon, and next-generation public chain (blockchain 3.0), etc. These projects have raised a large amount of funds, but the actual operating is worrying. The promotion of the project dissipated a large amount of funds, but the actual development progress was far less than expected, resulting in the market's expectation failure and the diversion of funds from the mainstream token. Superimposed the impact of more and more negative news, technical adjustment requirements and market sentiment fluctuation. The market enters a negative cycle, as the decline begins.

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In 2018, there has been rapid growth in venture capital in the blockchain sector, indicating that venture capital still have good expectations about the application and future prospects of the blockchain. According to Coindesk data, the risk investment in the blockchain sector in 2018 reverse the decline of 2017, year-on-year increase of 257%, and the total amount for the year 2018 reached 3.1 billion US dollars.

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BTC peaked first. In terms of time, in the third round of the price cycle, the first to peak is BTC, which reached 19,870.62 USD per piece in December 2017. The peak of ETH happened later than BTC, in January 2018. EOS did not peak until April. The important reason for BTC to peak first is that the amount of funds needed to support the BTC market value scale is the largest. When the market’s ability to carry on is not enough, it is inevitable for the price of BTC to react first.
4 Three Major Rules of BTC Price Cycle
The price cycle of BTC has obvious regularity, and some unchanging factors determine the price fluctuation of BTC.
4.1 BTC price cycle is closely related to its halving cycle
One full BTC price cycle lasts approximately four years. In the first round of price cycles, the measure of time span is not reliable because of the availability of BTC trading prices. The second round of the price cycle lasted for 1,377 days, from November 2011 to August 2015, about four years.
The price-rising cycle of BTC is closely related to its halving period, and the price-rising cycle starts one year before each halving. At the end of November 2012, the first production of BTC was halved, that is, the number of BTC generated by each block was 25, and in November 2011, the price of BTC has bottomed out, and the halving of BTC is one year after the second price-rising cycle. In July 2016, production of BTC was halved the second time, that is, the number of BTC generated by each block was 12.5. In August 2015, BTC had already bottomed out, and BTC's production was reduced again one year after the third price-rising cycle started.

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BTC output halving blows the horn of each price-rising cycle, and the price speeding up begin. Although it is not BTC output halving that brings the price-rising cycle, but the halving of BTC output significantly reduced the growth rate of BTC supply, speeding up the rise of BTC price and the price-rising cycle. From November 2011 to November 2012, before the halving of BTC output, BTC increased by 6.74 times in one year. From November 2012 to November 2013, BTC price increased by 99.57 times. In the third price-rising cycle, BTC price rose by a maximum of 2.87 times in about 11 months before the production cut. After halving, BTC price rose by a maximum of 29.73 times in about 11 months.

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4.2 BTC price cycle is closely related to its halving cycle
The change in the market value scale of BTC (circulation) is mainly caused by its price fluctuations, and has little to do with the changes in the total amount of BTC output. According to CMC data, by April 28, 2013, the total amount of BTC that had been mined was about 11.18 million pieces, which is more than 53% of the total amount of BTC of 21 million pieces. The halving mechanism of BTC also accelerated the marginal decline of BTC total growth rate. Compared with the amount of BTC already mined, the new supply of BTC is very insignificant. In addition, the volatility of BTC prices far exceeds the volatility of BTC's total output, and the market value of BTC fluctuates with its price.
The market value of BTC has increased in trend. Because of the trend of BTC price-rising, the number of BTC total output has also increased in one direction, and the market value of BTC has increased in the long run. According to CMC data, on April 28, 2013, BTC's market value in circulation was only 1.5 billion US dollars. By the peak of the third price-rising cycle, the market value increased to 326.1 billion US dollars, and the current market value also reached 113.8 billion US dollars, increased by 74.87 times.
The price volatility of BTC is gradually getting smaller. With the increasing of BTC market value in trend, the BTC market is becoming more and more mature, more and more accepted by the public, more and more professional organizations are participating, the compliance operation is becoming mainstream, and the BTC price volatility is decreasing. Similar to the historical process of other asset classes, and the same thing is repeated again and again. In the first price cycle, the price of BTC increased by 10636 times, and the fell by 93.76% maximum. In the second price cycle, the price of BTC increased by 623 times, and fell by 83.93% maximum. In the third price cycle, the maximum increase of BTC price was 98.57 times, and the biggest decline has not been confirmed

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4.3 BTC-led innovation continues to evolve and is more and more recognized by the mainstream
From BTC to Altcoin, from Altcoin to Crowdsale, there are iconic innovations and applications in every price cycle. In the first cycle, the birth and gradual application of BTC was a landmark event. In the second cycle, with the re-emergence of BTC in 2013, the tide of the Altcoins was rampant, and a large number of Altcoins appeared. In the third cycle, Crowdsale began to be popular around the world, many websites started to provide Crowdsale's news and discussion forum. Since 2017, Crowdsale has dominated the blockchain investment, far exceeding VCs and corporate investment.
The original intention of Nakamoto to create BTC is to establish a more efficient means of trading that can be electronically transferred in a safe, verifiable and non-tamperable form. During the early days of bitcoin and blockchain development, this drove the development of most applications of BTC and blockchain. However, with the development of blockchain technology, the evolution of digital token, the recognition of practitioners, and the evolution of government regulation, the changes led by BTC continue to evolve and gain more mainstream recognition.
More and more countries recognize that the blockchain reflects its unique value in many fields. The government has gradually incorporated digital token into regulation, and mainstream institutions are increasingly recognizing BTC. In 2017, the Chicago Mercantile Exchange (CME) officially launched BTC futures, as BTC took an important step toward mainstream investment, improving the accessibility of BTC to traditional financial institutions. In March 2017, Cameron's Cliveworth and Taylor W. Crawworth brothers attempted to submit an application to the US Securities and Exchange Commission for BTC ETF (transactional open-ended index fund). Although on September 22, 2018, US Securities and Exchange Commission rejected nine BTC ETF applications, the approval of BTC ETF application is a high probability event in the long run. With the continuous improvement of related infrastructure and the gradual maturity of the market, the pace of institutional entry has shown signs of acceleration. Since the end of 2018, news about the organization of encrypted assets by mainstream institutions has continued.

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5 The new journey of BTC will Start in May 2019
The fourth price-rising cycle of BTC will start in May 2019, and mainstream institutions will enter the market, while ETF may become the core trend of the fourth round of BTC price cycle.
From the perspective of supply, the third halving of BTC begins around May 21, 2020. The price-rising cycle of BTC is closely related to its halving period. The price-rising cycle starts about one year before halving. From this perspective, the BTC price-rising cycle may be opened around May 2019.

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From the time dimension, the complete BTC price cycle lasts for about four years. The third round of the price cycle, which started in August 2015, will be completed around August 2019, and the fourth round of the price cycle of BTC will begin thereafter. Considering that the data in the second round of the price cycle is more reliable, only the second round of price cycle data is used as the measurement standard, the complete price cycle is 1377 days, about 3 years and 9 months, and the third round price cycle may end around May 2019.
Combined with the previous two BTC price cycles, the downturn phase of the current price cycle has been probably more than half, and further downside space is limited. In the first two rounds of the price cycle, the duration of the downlink phase is less than the duration of the uplink phase. The duration of the third phase of the price cycle has been confirmed (845 days), while the duration of the downturn phase has been more than half of the upstream phase (450 days). From the first two rounds of the price cycle, the rapid decline in prices occurred in the early stage of the downtrend phase. The price fluctuations of BTC in the second half of the downturn phase have been significantly reduced. The BTC price declines reached 61% in the first half and 74% in the second round of the price cycle, and the corresponding maximum declines in BTC were 94% and 84% respectively. In the current round of the price cycle, the biggest drop has reached 84%, so take it from now, even if the price is further down, the downside space is already limited.
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Note: The data of the third round of the price cycle and the total duration are up to March 12, 2019.
From the price dimension, the downside space of the current round of BTC prices is limited, and the maximum increase of BTC's fourth price-rising cycle will become smaller. In the first price cycle, the price of BTC increased by 10636 times, and fell by 93.76% maximum. In the second price cycle, the price of BTC increased by 623 times, and fell by 83.93% maximum. In the third price cycle, the maximum increase of BTC price was 98.57 times, and the biggest decline has not been confirmed. On February 6, 2018, BTC fell to a minimum of 3,191.30 US dollars per piece, drop by 84.07%, has reached the low of second round of price cycle, from the perspective of price adjustment, BTC price downside has been more limited. The maximum increase in the fourth price-rising cycle of BTC will be smaller.
From the perspective of risk, after a year of continuous adjustment, BTC prices have fully fallen, risks have been gradually released, and investor’s risk appetite has risen to create favorable conditions for BTC prices to stabilize. Beginning at the end of December 2018, the VIX index has fallen, and now it has reached 15 or below. The investor's risk appetite has gradually picked up, creating favorable conditions for the BTC price to rise stably.
Last but not least, from the perspective of capital, the mainstream institutions accelerated their entry and many positive signals were released. With the continuous improvement of related infrastructure and the gradual maturity of the market, the pace of institutional entry has shown signs of acceleration. Since 2018, on the one hand, the entry of mainstream institutions can bring incremental funds to the entire market, on the other hand, it also contributes to the formal development of the entire industry.
The value of the BTC's market value in circulation continues to increase, and the digital token embraces regulation. It is expected that the ETF will be the core trend in the fourth price cycle. As the value of the BTC and digital token market increases, their use will be more tied-up to legitimate use than illegal activities. According to the US Drug Enforcement Administration (DEA) data, only 10% of the current BTC transactions is related to illegal activities and 90% is used for legal transactions. BTC's increasingly large market value requires more financial support. Digital token will embrace supervision to absorb more funds, and ETF will be a viable solution. In the future, there is going to be an evolution from Crowdsale to ETF, from regulation to embrace supervision.
Note:
Although in this report, we try to predict the bottom and time of Token, especially BTC, by using time and space cycle, we would like to tell investors that it is very dangerous to invest basing on a specific dot and time. An investment shall base on the assessment of the value of the token.
Here are our suggestions: 1. Do not try to predict the market. Mistakes are liable to happen when you try to predict market harshly. 2. Feel the cycle. Cycle is always there, because of the constant human nature;3. Be with a good Token, which will bring you more chance to win. 4.Keep valuation in mind. The most important thing in value investing is to keep the valuation in mind. If the price is reasonable, everything is getable. The key is the difference between price and value (Absolute valuation method is not available with Token because of its specialty. However, a relative valuation method can be applied. Please refer to Token Toll’s report series).
Notions:
For some reasons, some definition in this report are not very defined, such as: Token, Digital Token, Digital Currency, Currency, Crowdsale, etc.
If you have any questions, be free to call us to discuss with us.

https://preview.redd.it/bjnu2hjvw7531.png?width=698&format=png&auto=webp&s=43df46d8337c63a52b8a7089ed5e24360f3b281d
submitted by Token_Roll to u/Token_Roll [link] [comments]

Start Here for Much Wallet WOW!

EDIT 2017-02-10: A word about Nodes

There is a discussion about nodes that came up today, where it seems I'm discouraging people from running the full QT/Core client. Yes and No. What I'm trying to make sure people understand is how things work, and that it is NOT mandatory to run a client in order to use Dogecoins (and yes, I realise that browser-based tools like coinb.in and wallet sweepers are 'clients' by strict definition).
That said, more nodes is absolutely a good thing for the network. Preferrably full nodes. How do you run a full node? Just run Core/QT and open up Port 22556 on your router so it can connect to more than 8 peers. What will it cost you? You need your machine to be on 24/7/365, you need enough storage for the full blockchain (currently about 20Gb. Bitcoin is over 120Gb) and enough bandwidth to keep it in sync and share blocks with peers. A couple of Gb a month, most likely. This is best done with a desktop on a wired broadband link. Or maybe a hosted VM in the cloud. :)

EDIT 2017-01-09: Wallets WITHOUT Clients

Since I started helping people on /BitcoinBeginners, I'm getting a lot of questions about how to use wallets without running clients or trusting third parties. So here are a couple of resources that will make that possible, and not just for Dogecoin:
Multi-Coin Wallet Generator Now supporting 129 currencies! Coinb.in Start by setting the currency, found in the gear wheel in the Broadcast tab. Dogecoin Wallet Sweeper Redeem 'paper' wallets containing up to about 100 UTXOs. Bitinfo Charts My favourite block explorer, handles a bunch of cryptos.
Using these resources, it is possible to hold, receive and spend coins in various currencies, without having to run QT or a 'lite' client. You can also download and run the pages on your own device.

EDIT 2016-11-23: SEMANTICS about MINING! :P

Even though there is already a section on mining below, it has been suggested given the huge number of posts on the subject that this needs to be made clearer. Since people get their panties in a twist over the word 'dead', lets change that...

MINING IS DEAD!

MINING DOGECOIN IS UNPROFITABLE!

Put simply, there is no way to mine Dogecoin and make a profit because of the massive hashpower provided by industrial-scale Litecoin miners. Mining Doge directly stopped being viable when our hashrate exploded with the introduction of AuxPoW. Mining with CPU's and GPU's died when ASICs were introduced. And mining with a laptop WILL kill your laptop and cost you a fortune to repair or replace. Mining Litecoin with an exchange that also mines Doge and others will earn less than the electricity consumed, and you won't recover your costs. Probably ever, but certainly not in any reasonable time.
Mining other currencies may be a thing, but that's beyond our scope here. This is /Dogecoin, not /GetRichMiningCryptos after all. If you want to mine the newest scamcoin for fun and profit, look elsewhere for advice. :/
Oh, and most important:

READ BEFORE YOU POST!

At any given time, there are half a dozen posts on the frontpage just like the one you're about to write, where the answers have already been given. Read them. Don't make people waste their time repeating themselves because you were too lazy to bother reading stuff. :P
So there I was, having a quiet Sundy arvo bludge, as you do, when 42points turned up on Facebook and asked me to write a new sticky post for /dogecoin. Why would he do this, when he should be having a bludge himself, I hear you ask? Well, seems he was doing exactly that, and wanted to fob off the work he’s too slack to do himself. ;) Ah well, being a sucker for punishment, I’ll grudgingly oblige I guess.
OK, first things first.

The Clients:

Dogecoin Core 1.10.0 2015-Nov-01
Bootstrap file for Core to save some download time.
Dogecoin Core Guide Wiki
MultiDoge v0.1.7 2016-Jan-31
Android Dogecoin Wallet 2.0.8 2016-Jan-18
Android Coinomi Wallet
Java Cate 0.14 alpha 2 Multicoin wallet 2016-Feb-14
Exodus multicoin wallet
iOS Doughwallet

Do you REALLY need a client?

Wallet ELI5
UTXO ELI5
Paper Wallet Generator
Sample HTML Wallet List
Dogetipbot subreddit and website
Dogechain Wallet
Block.io Wallet
Exchanges
BTC38
Poloniex
CoinSpot
ShapeShift - Not really an exchange, rather a currency trader.

Mining

Litecoinpool
Prohashing
Zpool

Explorers

BitInfoCharts - My favourite, has charts!
chain.so
dogechain.info
/dogecoindev where the devs hang out

More Info

Dogeducation
Technical Wiki
Preev currency value calculator

EDITS:

From peoplma
I was wondering if you could add just a couple things. A link to the coinomi android wallet, it's probably the best one out there. And a sentence somewhere along the lines of "if you need help with any dogecoin software you are welcome to make a post, but PLEASE include your OS, version number of the client, and any relevant transaction IDs that you are willing to share" if you can fit that in somewhere.
Also, if you want to link to Prohashing, I'm pretty sure it's the only Scrypt mining pool that will actually pay out in doge. The others I know of pay out in litecoin or bitcoin. And it's a profit switching multipool, so gives a better return than just mining ltc/doge.
And there's these two wiki articles I thought would be helpful to link /dogecoin/wiki/technical for those technically minded newbies or intermediate users who want to dig a little deeper. And maybe a link to /dogecoin/wiki/dogecoincoreguide next to the link for dogecoin core.
From pts2002
Finally a proper sticky post! Here's some other stuff you could add:
zpool.ca mining pool - You can get paid in pretty much any coin, and you can mine in multiple algos (currently mining lyra2v2 with my GPU). Doing about 500Ð/day
shapeshift.io exchange - My favourite exchange, quick and easy. No registration required!
Also, you should add some blockchain explorers!
chain.so - Support for bitcoin, litecoin and doge.
dogechain.info - Official blockchain explorer. Includes a wallet (already mentioned). Live update currently not working (?)
EDIT: Here's another thing I found!
preev.com currency value calculator - Easy way to check the value of your dogecoins (or bitcoins, or litecoins, or peercoins)!
submitted by Fulvio55 to dogecoin [link] [comments]

My brief observation of most common Consensus Algorithms

I have studied most common consensus algorithms. Here is the summary, maybe for someone it will be helpful. My goal is to describe every specific consensus briefly so everyone can easily understand it. *Please let me know if I have wrote something wrong, or maybe you are aware of interesting algorithm, I have missed.
Proof of Work - very short, cuz it's well-known.
Bitcoin - to generate a new block miner must generate hash of the new block header that is in line with given requirements.
Others: Ethereum, Litecoin etc.
Proof of Stake
Nxt- The more tokens are held by account, the greater chance that account will earn the right to generate a block. The total reward received as a result of block generation is the sum of the transaction fees located within the block. Three values are key to determining which account is eligible to generate a block, which account earns the right to generate a block, and which block is taken to be the authoritative one in times of conflict: base target value, target value and cumulative difficulty. Each block on the chain has a generation signature parameter. To participate in the block's forging process, an active account digitally signs the generation signature of the previous block with its own public key. This creates a 64-byte signature, which is then hashed using SHA256. The first 8 bytes of the resulting hash are converted to a number, referred to as the account hit. The hit is compared to the current target value(active balance). If the computed hit is lower than the target, then the next block can be generated.
Peercoin (chain-based proof of stake) - coin age parameter. Hybrid PoW and PoS algorithm. The longer your Peercoins have been stationary in your account (to a maximum of 90 days), the more power (coin age) they have to mint a block. The act of minting a block requires the consumption of coin age value, and the network determines consensus by selecting the chain with the largest total consumed coin age. Reward - minting + 1% yearly.
Reddcoin (Proof of stake Velocity) - quite similar to Peercoin, difference: not linear coin-aging function (new coins gain weight quickly, and old coins gain weight increasingly slowly) to encourage Nodes Activity. Node with most coin age weight have a bigger chance to create block. To create block Node should calculate right hash. Block reward - interest on the weighted age of coins/ 5% annual interest in PoSV phase.
Ethereum (Casper) - uses modified BFT consensus. Blocks will be created using PoW. In the Casper Phase 1 implementation for Ethereum, the “proposal mechanism" is the existing proof of work chain, modified to have a greatly reduced block reward. Blocks will be validated by set of Validators. Block is finalised when 2/3 of validators voted for it (not the number of validators is counted, but their deposit size). Block creator rewarded with Block Reward + Transaction FEES.
Lisk (Delegated Proof-of-stake) - Lisk stakeholders vote with vote transaction (the weight of the vote depends on the amount of Lisk the stakeholder possess) and choose 101 Delegates, who create all blocks in the blockchain. One delegate creates 1 block within 1 round (1 round contains 101 blocks) -> At the beginning of each round, each delegate is assigned a slot indicating their position in the block generation process -> Delegate includes up to 25 transactions into the block, signs it and broadcasts it to the network -> As >51% of available peers agreed that this block is acceptable to be created (Broadhash consensus), a new block is added to the blockchain. *Any account may become a delegate, but only accounts with the required stake (no info how much) are allowed to generate blocks. Block reward - minted Lisks and transaction fees (fees for all 101 blocks are collected firstly and then are divided between delegates). Blocks appears every 10 sec.
Cardano (Ouroboros Proof of Stake) - Blocks(slots) are created by Slot Leaders. Slot Leaders for N Epoch are chosen during n-1 Epoch. Slot Leaders are elected from the group of ADA stakeholders who have enough stake. Election process consist of 3 phases: Commitment phase: each elector generates a random value (secret), signs it and commit as message to network (other electors) saved in to block. -> Reveal phase: Each elector sends special value to open a commitment, all this values (opening) are put into the block. -> Recovery phase: each elector verifies that commitments and openings match and extracts the secrets and forms a SEED (randomly generated bytes string based on secrets). All electors get the same SEED. -> Follow the Satoshi algorithm : Elector who have coin which corresponded to SEED become a SLOT LEADER and get a right to create a block. Slot Leader is rewarded with minted ADA and transactions Fee.
Tendermint (Byzantine Fault Tolerance) - A proposal is signed and published by the designated proposer at each round. The proposer is chosen by a deterministic and non-choking round robin selection algorithm that selects proposers in proportion to their voting power. The proposer create the block, that should be validated by >2/3 of Validators, as follow: Propose -> Prevote -> Precommit -> Commit. Proposer rewarded with Transaction FEES.
Tron (Byzantine Fault Tolerance) - This blockhain is still on development stage. Consensus algorithm = PoS + BFT (similar to Tendermint): PoS algorithm chooses a node as Proposer, this node has the power to generate a block. -> Proposer broadcasts a block that it want to release. -> Block enters the Prevote stage. It takes >2/3 of nodes' confirmations to enter the next stage. -> As the block is prevoted, it enters Precommit stage and needs >2/3 of node's confirmation to go further. -> As >2/3 of nodes have precommited the block it's commited to the blockchain with height +1. New blocks appears every 15 sec.
NEO (Delegated Byzantine Fault Tolerance) - Consensus nodes* are elected by NEO holders -> The Speaker is identified (based on algorithm) -> He broadcasts proposal to create block -> Each Delegate (other consensus nodes) validates proposal -> Each Delegate sends response to other Delegates -> Delegate reaches consensus after receiving 2/3 positive responses -> Each Delegate signs the block and publishes it-> Each Delegate receives a full block. Block reward 6 GAS distributed proportionally in accordance with the NEO holding ratio among NEO holders. Speaker rewarded with transaction fees (mostly 0). * Stake 1000 GAS to nominate yourself for Bookkeeping(Consensus Node)
EOS (Delegated Proof of Stake) - those who hold tokens on a blockchain adopting the EOS.IO software may select* block producers through a continuous approval voting system and anyone may choose to participate in block production and will be given an opportunity to produce blocks proportional to the total votes they have received relative to all other producers. At the start of each round 21 unique block producers are chosen. The top 20 by total approval are automatically chosen every round and the last producer is chosen proportional to their number of votes relative to other producers. Block should be confirmed by 2/3 or more of elected Block producers. Block Producer rewarded with Block rewards. *the more EOS tokens a stakeholder owns, the greater their voting power
The XRP Ledger Consensus Process
Ripple - Each node receives transaction from external applications -> Each Node forms public list of all valid (not included into last ledger (=block)) transactions aka (Candidate Set) -> Nodes merge its candidate set with UNLs(Unique Node List) candidate sets and vote on the veracity of all transactions (1st round of consensus) -> all transactions that received at least 50% votes are passed on the next round (many rounds may take place) -> final round of consensus requires that min 80% of Nodes UNL agreeing on transactions. It means that at least 80% of Validating nodes should have same Candidate SET of transactions -> after that each Validating node computes a new ledger (=block) with all transactions (with 80% UNL agreement) and calculate ledger hash, signs and broadcasts -> All Validating nodes compare their ledgers hash -> Nodes of the network recognize a ledger instance as validated when a 80% of the peers have signed and broadcast the same validation hash. -> Process repeats. Ledger creation process lasts 5 sec(?). Each transaction includes transaction fee (min 0,00001 XRP) which is destroyed. No block rewards.
The Stellar consensus protocol
Stellar (Federated Byzantine Agreement) - quit similar to Ripple. Key difference - quorum slice.
Proof of Burn
Slimcoin - to get the right to write blocks Node should “burn” amount of coins. The more coins Node “burns” more chances it has to create blocks (for long period) -> Nodes address gets a score called Effective Burnt Coins that determines chance to find blocks. Block creator rewarded with block rewards.
Proof of Importance
NEM - Only accounts that have min 10k vested coins are eligible to harvest (create a block). Accounts with higher importance scores have higher probabilities of harvesting a block. The higher amount of vested coins, the higher the account’s Importance score. And the higher amount of transactions that satisfy following conditions: - transactions sum min 1k coins, - transactions made within last 30 days, - recipient have 10k vested coins too, - the higher account’s Important score. Harvester is rewarded with fees for the transactions in the block. A new block is created approx. every 65 sec.
IOTA Algorithm
IOTA - uses DAG (Directed Acyclic Graph) instead of blockchain (TANGLE equal to Ledger). Graph consist of transactions (not blocks). To issue a new transaction Node must approve 2 random other Transactions (not confirmed). Each transaction should be validate n(?) times. By validating PAST(2) transactions whole Network achieves Consensus. in Order to issue transaction Node: 1. Sign transaction with private key 2. choose two other Transactions to validate based on MCMC(Markov chain Monte Carlo) algorithm, check if 2 transactions are valid (node will never approve conflicting transactions) 3. make some PoW(similar to HashCash). -> New Transaction broadcasted to Network. Node don’t receive reward or fee.
Proof of Space/Proof of Capacity
Filecoin (Power Fault Tolerance) - the probability that the network elects a miner(Leader) to create a new block (it is referred to as the voting power of the miner) is proportional to storage currently in use in relation to the rest of the network. Each node has Power - storage in use verified with Proof of Spacetime by nodes. Leaders extend the chain by creating a block and propagating it to the network. There can be an empty block (when no leader). A block is committed if the majority of the participants add their weight on the chain where the block belongs to, by extending the chain or by signing blocks. Block creator rewarded with Block reward + transaction fees.
Proof of Elapsed Time
Hyperledger Sawtooth - Goal - to solve BFT Validating Nodes limitation. Works only with intel’s SGX. PoET uses a random leader election model or a lottery based election model based on SGX, where the protocol randomly selects the next leader to finalize the block. Every validator requests a wait time from an enclave (a trusted function). -> The validator with the shortest wait time for a particular transaction block is elected the leader. -> The BlockPublisher is responsible for creating candidate blocks to extend the current chain. He takes direction from the consensus algorithm for when to create a block and when to publish a block. He creates, Finalizes, Signs Block and broadcast it -> Block Validators check block -> Block is created on top of blockchain. post with references you can find here: https://bitcointalk.org/index.php?topic=2936428.msg30170673#msg30170673
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Free litecoin and Bitcoin earning site 2020,with live payment proof  Claim 20 Crypto Currency BITCOIN DUMP WARNING - Bitcoin Today [July 9th 2020] Peercoin - YouTube Peercoin vs Bitcoin - A comparison Bitcoin’s Value Proposition 2020  EASILY EXPLAINED  BEGINNER FRIENDLY  Bitcoin Expert Dan Held

Peercoin price today is $0.259196 with a 24-hour trading volume of $24,105. PPC price is down -0.1% in the last 24 hours. It has a circulating supply of 26 Million coins and a max supply of 2 Billion coins. Hotbit is the current most active market trading it. The Peercoin price chart provides historical price values and exchange rate values for the last 6 months. $0.2609 ($0.01) (-2.17 %) 24 hour change. Sponsored Advertisement. Sponsored Advertisement. Sponsored Advertisement. Bitcoin. Bitcoin Mining Litecoin. Litecoin Mining Litecoin Mining Calculator Litecoin Difficulty Chart 1 Peercoin is 0.000028 Bitcoin. So, you've converted 1 Peercoin to 0.000028 Bitcoin . We used 35121.99 International Currency Exchange Rate. Litecoin. $41.98 -0.19 % Peercoin mining information - including a Peercoin mining calculator, a list of Peercoin mining hardware, Peercoin difficulty with historical charts, Peercoin hashrate charts, as well as the current Peercoin price. Bitcoin. Bitcoin Mining Unlike Bitcoin, Namecoin, and Litecoin, Peercoin does not have a hard limit on the number of possible coins, but is designed to eventually attain an annual inflation rate of 1%.There is a deflationary aspect to Peercoin as the transaction fee of 0.01 PPC/kb paid to the network is destroyed. This feature, along with increased energy efficiency, aim to allow for greater long-term scalability.

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Free litecoin and Bitcoin earning site 2020,with live payment proof Claim 20 Crypto Currency

Bitcoin Value Usd Litecoin Mining Pool Litecoin Vs Bitcoin ... What Is The Difference Between Bitcoin's "Proof Of Work" Vs. Peercoin & Nextcoin's "Proof Of Stake"? - Duration: 11:09. Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to ... The value of cryptocurrencies goes through severe ups and downs. In 2017, the worth of Bitcoin swung in between $900 and $20,000!2 Someone sneezes and the price drops! Buying cryptocurrency is ... Bitcoin aur peercoin wallet kese banate hai - Duration: ... How To Convert Bitcoin Litecoin Namecoin Novacoin Terracoin Peercoin Feathercoin Primecoin To USD - Duration: 4:18. The current price of Ethereum is at $245.53 up 2.70% The current price of EOS is at $2.66 up 2.54% The current price of Litecoin is at $45.13 up 2.06% The current price of XRP is at $0.203711 up 3.72%

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