How bitcoin works - Bitcoin Wiki

libbitcoin: Asynchronous C++ Bitcoin library, full node and querying server

libbitcoin is a community of developers building the open source library, tools and implementation necesary for a free, independent and vibrant Bitcoin. In this way we are helping to build a better future. libbitcoin believes in the revoltionary promise of Satoshi's original protocol. The libbitcoin development project aims to create an extendable, scalable and configurable architecture, along with useful software. Making Bitcoin super-pluggable, highly configurable and easy to interact with.

Ethereum-based Projects and Products


Vite - A Next Generation High-performance Decentralized Application Platform

Vite is a next-generation reactive Blockchain that adopts a message-driven, asynchronous architecture and a DAG-based ledger. The goal for Vite’s design is to provide a reliable public platform for industrial dApps, with features of ultra-high throughput and scalability.

Thought of an interesting application of the Bitcoin architecture for something else, how (much) to make it a reality?

Don't worry, I'm not trying to get rich quick selling yet another crypto currency or anything.
As the title says, what I'm after is basically a fork of the original program for another (entirely not for profit) application of the technology.
What I'm after is:
I've read in some places that a fork can be written in a day. That said, I've had a friend who worked on Crypto investment tell me I'd need to budget a hundred large at least. Not knowing the code, I have no idea how deep these tweaks will go. Perhaps my friend is right, I dunno.
Is this an insane project? Where do I go next? I can code a bit- how much would I need to know to code it myself? Could I find devs as a maths teacher with a dumb idea? How much would that kind of thing cost?
submitted by Newtonswig to Bitcoin [link] [comments]

Question on bitcoin architecture design for large automated distributions

Hi, I'm thinking about how to go about doing an automated distribution using OP_GROUP when it's implemented in future upgrades.
Let's take SatoshiDice for example, the backend application receives input, immediately checks for winning/losing transactions and immediately pays out.
Let's say I run Satoshi dice and my address has 2 utxo of 5 BCH each with a total of 10 BCH in utxo. If there are 10 players playing continuously 1 after the other and all 10 of them win 1 BCH per person, how do I pay out immediately to 10 winning players since I only have 2 utxo? Am I missing something here?
Am I missing something or is this a big problem and a big flaw for BCH to do mass distribution of tokens using OP GROUP in the future?
submitted by markpsp to btc [link] [comments]

Question on bitcoin architecture design for large automated distributions /r/btc

Question on bitcoin architecture design for large automated distributions /btc submitted by HiIAMCaptainObvious to BitcoinAll [link] [comments]

Could we use the bitcoin architecture to create a unified login system? I'm sick of having to remember tens of login/pass, password vaults can be lost, and i don't trust google to do this.

submitted by Kanin to Bitcoin [link] [comments]

Bitcoins architecture is what will change the world. Have 20 minutes? Please watch. This is Andreas Antonopoulos.

Bitcoins architecture is what will change the world. Have 20 minutes? Please watch. This is Andreas Antonopoulos. submitted by imsoulrebel1 to Libertarian [link] [comments]

OpenLibernet: mesh network proposal based upon elements of bitcoin architecture - x-post via darknetplan

submitted by xr1s to Anarcho_Capitalism [link] [comments]

Thought of an interesting application of the Bitcoin architecture for something else, how (much) to make it a reality? /r/Bitcoin

Thought of an interesting application of the Bitcoin architecture for something else, how (much) to make it a reality? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoins: Architecture and Archetype

submitted by jana67 to Economics [link] [comments]

Bitcoin: Architecture, Malware, and Platforms – What are the Real Threats?

Bitcoin: Architecture, Malware, and Platforms – What are the Real Threats? submitted by frrrni to Bitcoin [link] [comments]

Bitcoin: Architecture, Malware, and Platforms – What are the Real Threats?

Bitcoin: Architecture, Malware, and Platforms – What are the Real Threats? submitted by pyrotactics to Bitcoin [link] [comments]

Google Chairman Eric Schmidt: Bitcoin Architecture an Amazing Advancement

Google Chairman Eric Schmidt: Bitcoin Architecture an Amazing Advancement submitted by BTCNews to BTCNews [link] [comments]

BitNova - Announcement

Hello, in my free time I'm working on a game using the Bitcoin architecture, which is called (initially) BitNova. This is an Ogame clone (Open Source), where players earn Satoshi (although the game is F2P, without micropayments).
If you have questions - ask! ;)
submitted by lordfervi to Bitcoin [link] [comments]

The attempted come back of CoinEx, China's forked-Bitcoin exchange

The attempted come back of CoinEx, China's forked-Bitcoin exchange
Written by Shuyao Kong
Published by
An interview with Haipo Yang, a crypto OG who’s trying to reposition his Bitcoin Cash-based CoinEx exchange. And more, in this week’s da bing.
Haipo Yang, founder of ViaBTC, one of the largest mining pools in the world, and CoinEx, a crypto exchange known for its focus on Bitcoin Cash-based trading, is a well-known but relatively quiet character in China’s crypto circle. Typically, Yang doesn’t talk that much about his journey launching the mining pool, nor about CoinEx, which launched in December 2017.
And he almost never speaks about his fervent support for BCH, a hard fork of Bitcoin, and his now even more enthusiastic belief in BSV.
Yet that’s changing of late. Yang has been more active in recent months, participating in interviews about CoinEx and tweeting more frequently on Weibo, China’s Twitter. He’s been making controversial statements predicting the death of BTC, while supporting BCH and BSV on social media.
Recently, Yang told me that as a developer rather than a business person, he’s never been comfortable speaking in public. However he’s making an effort now to help publicize his renovation of CoinEx. So, for this week’s da bing, I decided to chat with him and get a peek into the mind of a veteran crypto entrepreneur who’s trying to make a personal, as well as a platform, comeback.

CoinEx’s golden opportunity

The first hard fork of Bitcoin occurred in August, 2017 and created a new cryptocurrency called Bitcoin Cash. The fork was prompted by partisans, including Yang, who wanted bigger block sizes on the blockchain — the basic idea was that bigger blocks would enable more transactions per second and make Bitcoin Cash something people would actually use to buy things, rather than Bitcoin’s more commonly perceived use as a store of value.
Yang added a tremendous amount of value to the mining scene in China. As a technical founder with has years of experience in big tech firms such as Tencent, Yang is proud of his #buidl skills. He developed most of the code in the early days of VicBTC, which became one of the biggest mining pools to this day.
Not satisfied with owning just a mining pool,Yang conceived of CoinEx, which was born in December of that year, specifically to carry on the mission of the newly forked Bitcoin Cash blockchain. As he got swept up in Bitcoin Cash enthusiasm, he even said that “BCH is bitcoin.”
CoinEx’s strategy was BCH-focused from day one; BCH was its base currency, meaning you could use it to buy and sell other currencies, such as Ethereum and Litecoin.
Interestingly, Jihan Wu, the co-founder of Bitcoin Exchange — himself a famous BCH supporter — was a big investor in the exchange. That made me wonder why he, Yang, and many other OG crypto miners, were so passionate about BCH. Was it just about bigger block sizes?
“Bigger block size means more users and use cases,” Yang explained. The move to bigger block sizes was attractive to miners because they would facilitate more transactions. Miners make money on transaction fees, as well as mining blocks. Likewise, the network would arguably be more useful to people, who were looking for digital cash for every day use.
That especially resonated with many early hardcore Bitcoiners. Said Yang: “We really believe that Bitcoin should be a P2P cash vehicle rather than a store of value.”
This view probably sounds outdated to people who believe that Bitcoin’s value as cash is long gone, with solutions such as Lightning Network fulfilling that role. Instead, the new narrative for Bitcoin resides in its value, rather than utility. Yet Yang believed that the forked network would create far more opportunity
“We could invite influential companies to establish nodes and contribute to the network. This cannot be done with the original Bitcoin architecture,” he said.

CoinEx pivots

But from its inception, CoinEx struggled with adoption and was dwarfed by the bigger exchanges. Part of that had to do with the fact that BCH and “Bitcoin Satoshi’s Vision,” another Bitcoin hard fork, were both controversial. Critics pointed out that these networks are centralized in a few big mining pools, and 51% attacks are not out of the question.
So over time, though Yang’s exchange still maintains strong support for BCH and BSV, it began to add support for all the major currencies.
Finally, in January of this year, it announced a major upgrade, of… well, just about everything. It started to offer futures trading, leveraged trading, options trading, and over 100 token projects available to traders. It even rolled out its own blockchain, “CoinEx Chain” to support a new DEX, “CoinEx DEX.”
The seemingly sudden publicity of CoinEx should not come as a surprise, then. As BCH/BSV was being marginalized, Yang shifted his focus. He’s now trying to ride the wave of building a bigger, more dynamic exchange.
“Crypto exchanges are where value is discovered,” Yang told me.

CoinEx: TNG

Building an exchange isn’t done overnight, nor is re-building one. CoinEx is still competing with the giants such as Binance.
However Yang thinks his exchange will thrive by zigging when his competitors zag. As usual, CoinEx is taking a slightly different route, he told me.
Like what? “We will be listing 小币种,” he said, using the expression for “small token projects.” I cannot help but wonder if these “small token projects” are simply shitcoins, the trading of which is certainly not new.
Indeed, Yang said that he’s banking on the success of his new, public blockchain. “We are building a CoinEx Chain, a layer one protocol for DEX alone. Using our public blockchain, anyone can issue any token, at any time,” he said. He described the blockchain as “a real decentralized, token-issuance and transaction platform.”
This is the core of Yang’s plan and vision. He believes that centralized exchanges will be a bottleneck for crypto adoption because it contradicts crypto’s nature as a completely free and open infrastructure. Essentially anyone should be able to launch a token and trade it with anyone. Only by building DEXes can we achieve full decentralization, he says.

The Religious nature of Bitcoin, and forked Bitcoin

It’s his belief that Bitcoin should adhere to Satoshi’s original vision that led Yang to send yet another controversial tweet last week, which I will translate: “The early days of Bitcoin expansion are similar to religion. The religious fervor brings prosperity to the industry.”
By extension, Yang believes that the next generation of Bitcoin should provoke a similar “religious” fervor. That’s why he has slowly become more of a BSV advocate than a fan of Bitcoin Cash. Yang believes that “BSV has more religious connotations, despite its negative image.” (As most crypto people know, the controversial Craig Wright, who claims to be Satoshi Nakamoto, led the hard fork which created BSV. Consequently it is often met with skepticism and derision.)
“The early days of Bitcoin expansion are similar to religion,” said Yang. “The religious fervor brings prosperity to the industry.”
Crypto is famous for its tribalism. Many people choose one camp over another not for practical reasons but because of simple faith. Talking to Yang and reading his tweet brings a historic texture to the Bitcoin narrative. But crypto cannot survive on religion alone. One has to build. Hash might have been worshipped in the old days but now the crypto religion is all about the size of the congregation.
Original article
Click here to register on CoinEx!
submitted by CoinExcom to btc [link] [comments]

can a voting system be implemented using the bitcoin/blockchain architecture?

Imagine for a second that you could somehow anonymize bitcoin wallets, and that you could create a parallel network not with the intention of money, but the intention of democratic voting.
You'd then give each voter a certified wallet address (which wouldn't be tied to your identity, however it'd be a certified wallet address), and then depending on how many votes you'd need to make for a certain electoral event, you'd be handed a certain amount of "voting currency".
so let's say you're doing city elections, or state elections, the voting app or website, would let you vote just like any other voting app/website, but instead of votes going to a centralized system, what you'd be doing would be sending specific amounts of the voting currency that was allocated to your wallet to addresses that are mapped to the different votes you are to make.
as a consequence, all votes would be replicated and validated in a distributed fashion, and everyone could check in real time how many votes are being allocated to each voting option.
does anybody see holes in my logic?
I believe in a true democracy of 2014, with today's technology, and with a repurposed Bitcoin architecture, we don't need a senate, or representatives, we could take on all the issues ourselves, immediatly. Legislation, Budgets and politics in general would move forward way faster, and we wouldn't live in a moneytocracy anymore (even though the voting system would run on an idea first created for currency, funny)
submitted by gubatron to Bitcoin [link] [comments]

Secrets of trading Litecoin

Secrets of trading Litecoin
Litecoin was developed in 2011 by former Google employee Charlie Lee and is called "The Bitcoin younger brother" and "digital silver". And for a good reason. Its work is based on the Bitcoin architecture. The name Litecoin is symbolic - the size of the blockchain is significantly smaller due to more compact blocks, and the blocks themselves are formed faster than in the main cryptocurrency.

How to trade Litecoin

Litecoin trading does not have any complicated mechanisms, and technical analysis is good not only for intraday trading, but also for trading over longer distances. Beginners will greatly benefit from automatic trading service, providing features such as:
  • Smart trade, where trailing ladder is available, i.e. take-profit and stop-loss are automatically rearranged as the price changes
  • Autotrade. You can subscribe to other traders and channels with signals and copy trades.
  • "Panic sell" button that allows you to sell all cryptocurrencies at once.
Sign up for to evaluate all the benefits of the service. In your personal account, you can track detailed statistics of your cryptocurrency portfolio and trade on several exchanges at the same time. works with three major exchanges: Binance, BitMEX and Poloniex.

Trading secrets

It is best for Litecointrading to use classic indicators, especially trend ones. Th cryptocurrency is quite volatile, which allows you to make a profit in a growing market. This strategy is based on buying on pullbacks and selling high. To improve the effectiveness of the strategy, it is recommended to use several indicators to get a more detailed picture of the state of the market.
You can determine the necessary levels with the help of standard SMA and RSI indicators, which work perfectly together. It is also important to define the boundaries of the upward channel in order to more accurately determine levels where the price rebounds. The only strategy that does not work well when trading cryptocurrency is scalping - large spreads kill it.
submitted by mrhadow to matetrade [link] [comments]

Bitcoin Lightning Network sees increasingly "centralized" architecture

Bitcoin Lightning Network sees increasingly submitted by Ranzware to BitNewsLive [link] [comments]

Bitcoin Lightning Network sees increasingly "centralized" architecture

One of the most popular Bitcoin projects that haven’t attained completed fruition in terms of development and implementation is its Lightning Network. Launched back in 2018 in order to improve the scalability issue of Bitcoin transactions, the LN has often been criticized with regard to its functionality and structural security. Although, originally the design of […]
submitted by FuzzyOneAdmin to fuzzyone [link] [comments]

Bitcoin Lightning Network sees increasingly “centralized” architecture

Bitcoin Lightning Network sees increasingly “centralized” architecture submitted by akshayks1995 to Crypto_Currency_News [link] [comments]

What defined humanities last nine years?

If I was to think of one thing that wasn’t as big nine years ago and that has incredible potential... I’d personally say Bitcoin. I’m not even invested in it and don’t have enough saved so that even if it went up to 10million from 14 thousand or whatever that I’d barely benefit... however... if it was to take over as the primary currency then it would change the structure of our entire society. No more banks creating money and the rich living of interest for generations, which I can imagine is just scraping the surface. I’m sure there will still be issues such as bitcoin billionaires taking control, but I think it’s set up in a way that wealth would distribute more evenly over time even though the current wealthy are trying to perpetuate their government wealth in bitcoin.
I’ve been trying to think of what else could define the last nine years...
Games like no mans sky simulating an entire universe on servers using mathematics and lines of code is pretty cool, but that’s something I imagine every intelligent civilization would do at some point.
I’m thinking more like what defines humanity that if another intelligent civilization existed, it might not do at this point of evolution.
I believe there is something in common between things like Bitcoin, architecture, video games, music and everything else we have been doing as humans these last nine years, but I haven’t figured it out yet. I just think Bitcoin is the most obvious.
WikiLeaks is probably up there too, there’s a common theme of overthrowing governments between the two.
Do our games reflect that though? Our architecture? Our music?
Hip hop has blown up which I honestly don’t know enough about to say it’s specifically about overthrowing the government. However from what I see a big part of it has been overcoming oppression, which could be a better way of linking it with WikiLeaks and bitcoin.
In architecture, building taller and taller buildings could be seen as a way to overcome the oppression of gravity in a tower of Babylon like style.
Even the blowing up of Satanism where I am(Canada), it’s a religion about overcoming the oppression of religions, which of course goes with their belief of separation of church and state.
Not to mention stand up comedians trying to show how wrong we have been in the belief that we have freedom of speech.
Anyways... that’s kind of what I’ve been seeing.
I’m not looking for anyone to agree. Like I said I haven’t figured it out yet. What I’m looking for is your opinions on what defined humanities last 9 years, and if you can’t think of anything specifically, then what you disagree with about what I think, and finally if you really do agree then feel free to add to, simplify or reformulate the concept of “overcoming oppression”.
submitted by Nobeefnobelief to NoStupidQuestions [link] [comments]

A sneak peek into SIGNUP's new DApp Architecture for Bitcoin Cash

A sneak peek into SIGNUP's new DApp Architecture for Bitcoin Cash submitted by p0ok3r to Bitcoincash [link] [comments]

A reminder why CryptoNote protocol was created...

CryptoNote v 2.0 Nicolas van Saberhagen October 17, 2013
1 Introduction
“Bitcoin” [1] has been a successful implementation of the concept of p2p electronic cash. Both professionals and the general public have come to appreciate the convenient combination of public transactions and proof-of-work as a trust model. Today, the user base of electronic cash is growing at a steady pace; customers are attracted to low fees and the anonymity provided by electronic cash and merchants value its predicted and decentralized emission. Bitcoin has effectively proved that electronic cash can be as simple as paper money and as convenient as credit cards.
Unfortunately, Bitcoin suffers from several deficiencies. For example, the system’s distributed nature is inflexible, preventing the implementation of new features until almost all of the net- work users update their clients. Some critical flaws that cannot be fixed rapidly deter Bitcoin’s widespread propagation. In such inflexible models, it is more efficient to roll-out a new project rather than perpetually fix the original project.
In this paper, we study and propose solutions to the main deficiencies of Bitcoin. We believe that a system taking into account the solutions we propose will lead to a healthy competition among different electronic cash systems. We also propose our own electronic cash, “CryptoNote”, a name emphasizing the next breakthrough in electronic cash.
2 Bitcoin drawbacks and some possible solutions
2.1 Traceability of transactions
Privacy and anonymity are the most important aspects of electronic cash. Peer-to-peer payments seek to be concealed from third party’s view, a distinct difference when compared with traditional banking. In particular, T. Okamoto and K. Ohta described six criteria of ideal electronic cash, which included “privacy: relationship between the user and his purchases must be untraceable by anyone” [30]. From their description, we derived two properties which a fully anonymous electronic cash model must satisfy in order to comply with the requirements outlined by Okamoto and Ohta:
Untraceability: for each incoming transaction all possible senders are equiprobable.
Unlinkability: for any two outgoing transactions it is impossible to prove they were sent to the same person.
Unfortunately, Bitcoin does not satisfy the untraceability requirement. Since all the trans- actions that take place between the network’s participants are public, any transaction can be unambiguously traced to a unique origin and final recipient. Even if two participants exchange funds in an indirect way, a properly engineered path-finding method will reveal the origin and final recipient.
It is also suspected that Bitcoin does not satisfy the second property. Some researchers stated ([33, 35, 29, 31]) that a careful blockchain analysis may reveal a connection between the users of the Bitcoin network and their transactions. Although a number of methods are disputed [25], it is suspected that a lot of hidden personal information can be extracted from the public database.
Bitcoin’s failure to satisfy the two properties outlined above leads us to conclude that it is not an anonymous but a pseudo-anonymous electronic cash system. Users were quick to develop solutions to circumvent this shortcoming. Two direct solutions were “laundering services” [2] and the development of distributed methods [3, 4]. Both solutions are based on the idea of mixing several public transactions and sending them through some intermediary address; which in turn suffers the drawback of requiring a trusted third party. Recently, a more creative scheme was proposed by I. Miers et al. [28]: “Zerocoin”. Zerocoin utilizes a cryptographic one-way accumulators and zero-knoweldge proofs which permit users to “convert” bitcoins to zerocoins and spend them using anonymous proof of ownership instead of explicit public-key based digital signatures. However, such knowledge proofs have a constant but inconvenient size - about 30kb (based on today’s Bitcoin limits), which makes the proposal impractical. Authors admit that the protocol is unlikely to ever be accepted by the majority of Bitcoin users [5].
2.2 The proof-of-work function
Bitcoin creator Satoshi Nakamoto described the majority decision making algorithm as “one- CPU-one-vote” and used a CPU-bound pricing function (double SHA-256) for his proof-of-work scheme. Since users vote for the single history of transactions order [1], the reasonableness and consistency of this process are critical conditions for the whole system.
The security of this model suffers from two drawbacks. First, it requires 51% of the network’s mining power to be under the control of honest users. Secondly, the system’s progress (bug fixes, security fixes, etc...) require the overwhelming majority of users to support and agree to the changes (this occurs when the users update their wallet software) [6].Finally this same voting mechanism is also used for collective polls about implementation of some features [7].
This permits us to conjecture the properties that must be satisfied by the proof-of-work pricing function. Such function must not enable a network participant to have a significant advantage over another participant; it requires a parity between common hardware and high cost of custom devices. From recent examples [8], we can see that the SHA-256 function used in the Bitcoin architecture does not posses this property as mining becomes more efficient on GPUs and ASIC devices when compared to high-end CPUs.
Therefore, Bitcoin creates favourable conditions for a large gap between the voting power of participants as it violates the “one-CPU-one-vote” principle since GPU and ASIC owners posses a much larger voting power when compared with CPU owners. It is a classical example of the Pareto principle where 20% of a system’s participants control more than 80% of the votes.
One could argue that such inequality is not relevant to the network’s security since it is not the small number of participants controlling the majority of the votes but the honesty of these participants that matters. However, such argument is somewhat flawed since it is rather the possibility of cheap specialized hardware appearing rather than the participants’ honesty which poses a threat. To demonstrate this, let us take the following example. Suppose a malevolent individual gains significant mining power by creating his own mining farm through the cheap hardware described previously. Suppose that the global hashrate decreases significantly, even for a moment, he can now use his mining power to fork the chain and double-spend. As we shall see later in this article, it is not unlikely for the previously described event to take place.
2.3 Irregular emission
Bitcoin has a predetermined emission rate: each solved block produces a fixed amount of coins. Approximately every four years this reward is halved. The original intention was to create a limited smooth emission with exponential decay, but in fact we have a piecewise linear emission function whose breakpoints may cause problems to the Bitcoin infrastructure.
When the breakpoint occurs, miners start to receive only half of the value of their previous reward. The absolute difference between 12.5 and 6.25 BTC (projected for the year 2020) may seem tolerable. However, when examining the 50 to 25 BTC drop that took place on November 28 2012, felt inappropriate for a significant number of members of the mining community. Figure 1 shows a dramatic decrease in the network’s hashrate in the end of November, exactly when the halving took place. This event could have been the perfect moment for the malevolent individual described in the proof-of-work function section to carry-out a double spending attack [36]. Fig. 1. Bitcoin hashrate chart (source:
2.4 Hardcoded constants
Bitcoin has many hard-coded limits, where some are natural elements of the original design (e.g. block frequency, maximum amount of money supply, number of confirmations) whereas other seem to be artificial constraints. It is not so much the limits, as the inability of quickly changing them if necessary that causes the main drawbacks. Unfortunately, it is hard to predict when the constants may need to be changed and replacing them may lead to terrible consequences.
A good example of a hardcoded limit change leading to disastrous consequences is the block size limit set to 250kb1. This limit was sufficient to hold about 10000 standard transactions. In early 2013, this limit had almost been reached and an agreement was reached to increase the limit. The change was implemented in wallet version 0.8 and ended with a 24-blocks chain split and a successful double-spend attack [9]. While the bug was not in the Bitcoin protocol, but rather in the database engine it could have been easily caught by a simple stress test if there was no artificially introduced block size limit.
Constants also act as a form of centralization point. Despite the peer-to-peer nature of Bitcoin, an overwhelming majority of nodes use the official reference client [10] developed by a small group of people. This group makes the decision to implement changes to the protocol and most people accept these changes irrespective of their “correctness”. Some decisions caused heated discussions and even calls for boycott [11], which indicates that the community and the developers may disagree on some important points. It therefore seems logical to have a protocol with user-configurable and self-adjusting variables as a possible way to avoid these problems.
2.5 Bulky scripts
The scripting system in Bitcoin is a heavy and complex feature. It potentially allows one to create sophisticated transactions [12], but some of its features are disabled due to security concerns and some have never even been used [13]. The script (including both senders’ and receivers’ parts) for the most popular transaction in Bitcoin looks like this: OP DUP OP HASH160 OP EQUALVERIFY OP CHECKSIG. The script is 164 bytes long whereas its only purpose is to check if the receiver possess the secret key required to verify his signature.
Read the rest of the white paper here:
submitted by xmrhaelan to CryptoCurrency [link] [comments]

How would transactions take place if miners leave the network?

While I understand the incentives involved in a bitcoin transaction validation; I want to hypothesise a scenario where bitcoin is unattractive to people, and they stop their mining processes.
In this case, how would transactions continue to get processed between bitcoin holders? Can this be a valid scenario to judge the robustness of the network?
One explanation I have is that this is where the cap on number of bitcoins comes into play. Chiefly, transaction fees paid by users will drive validation and “mining” in the traditional sense will stop. The incentives would derive value from the currency; more attractive the currency; better the value for validation.
I have been reading up on the bitcoin architecture recently, and I guess I may have missed some important points. What are some other aspects to this?
EDIT: Thanks to everyone who helped me understand this better.
  1. Hashrates (an indicator of computational power reqd. for updating the chain) would also move with demand making the returns on cost less volatile (in event of a price collapse)
  2. Highly diversified mining pools make this a “black-swan” event in any case lending increasing credibility to the network.
  3. The production cost lends an inherent value to the chain (correctness?) which acts as incentive.
Thanks again!
submitted by ReginaldForBubs to Bitcoin [link] [comments]

Bitcoin Q&A: Assumptions of centralized architectures Blockchain Technology Architecture Blockchain Architecture and Cryptocurrencies Bitcoin Architect: Everything You Need To Know About Bitcoin Bitcoin Basics (Part 1) -

In bitcoin, integrity, block-chaining, and the hashcash cost-function all use SHA256 as the underlying cryptographic hash function. A cryptographic hash function essentially takes input data which can be of practically any size, and transforms it, in an effectively-impossible to reverse or to predict way, into a relatively compact string (in In Bitcoin blockchain architecture, it takes around 10 minutes to determine the necessary proof-of-work and add a new block to the chain. This work is done by miners - special nodes within the Bitcoin blockchain structure. Miners get to keep the transaction fees from the block that they verified as a reward. Bitcoin is the first successful decentralized global digital cash system. Usefulness of the mining process requiring a lot of computational resources to be wasted, though, remains disputable. Contents1 Bitcoin is a bubble or new technology? 2 ethereum architecture today. 3 Do you believe in Bitcoin? It is unequivocal that ethereum architecture is gaining popularity. And this popularity is changing with varying success. Bitcoin is a bubble or new technology? The world has split into two camps. Some consider bitcoin – a new […] Prior to discussing the architecture, let us get a few things clear in our head: The blockchain is not Bitcoin; Blockchain is the technology behind Bitcoin. Bitcoin is the digital token or cryptocurrency whereas blockchain is the ledger to keep track of transactions of those digital tokens.

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Bitcoin Q&A: Assumptions of centralized architectures

SOTI MobiControl Architecture. Comments are turned off. Learn more. ... Banking on Bitcoin YouTube Movies. 2017 · Documentary; 1:23:41. The ARMY Are Here Mr Bean! Mr Bean Full Episodes ... The Toxic World of Self Help: Hustle Culture, Toxic Positivity, Addiction, and Fake Gurus. - Duration: 18:51. James Jani Recommended for you This Bitcoin basics video series will explain Bitcoin for beginners. You'll learn how Bitcoin works, and how to make money with Bitcoin. Many people are looking to mine bitcoin or trading bitcoin ... Some of the biggest questions in technology today opportunities for crypto center around issues of privacy and security. When you consider the very nature of... Bitcoin Cryptocurrency Crash Course with Andreas Antonopoulos - Jefferson Club Dinner Meetup - Duration: 1:12:22. Jefferson Club Silicon Valley 192,322 views 1:12:22

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