NiceHash offers you to buy or sell hashing power directly, no contracts, no limitations, pay-as-you-go if you're a buyer and be-paid-as-you-go if you're a seller. Why bother renting rigs, when you can rent hashing power? NiceHash brings more to renters and rig owners. Visit https://www.nicehash.com today! Simply create order and you are already mining your favorite coin or point your rig to our stratum server and you are already earning bitcoins.
Vertnode - An automated solution for installing Vertcoin node(s) on Single Board Computers
Hello Vertcoin Community, Eager to contribute to the Vertcoin Community I began creating step by step walkthrough guides on how to get a Vertcoin node up and running on a Raspberry Pi, Raspberry Pi Zero and Intel NUC. Along with information to get a Vertcoin node up and running was also optional steps to install p2pool-vtc. I decided that while this step by step guide might be helpful to a few, a setup script may prove to be useful to a wider range of people. I have this script to a point where I think it may be productive to share with a bigger audience, for those who are brave and have this hardware sitting around or like to tinker with projects; I invite you to test this setup script if you are interested, if you run into errors any sort of verbose console output of the error proves to be extremely helpful in troubleshooting. The script was designed to produce a “headless” server... meaning we will not be using a GUI to configure Vertcoin or check to see how things are running. In fact, once the server is set up, you will only interact with it using command line calls over SSH. The idea is to have this full node be simple, low-power, with optimized memory usage and something that “just runs” in your basement, closet, etc. Why run a headless node on a Single Board Computer?
You want to support vertcoin. Running a node makes the network more robust and able to serve more wallets, more users, and more transactions.
You are building or using applications such as mining that must validate transactions according to vertcoin’s consensus rules.
You are developing vertcoin software and need to rely on a vertcoin node for programmable (API) access to the network and blockchain.
The idea is to have this full node be simple, low-power, with optimized memory usage and something that “just runs” in your basement, closet, etc. Required: USB Flash Drive 6GB - 32GB Please note that the script was designed for Single Board Computers first and looks for an accessible USB Flash Drive to use for storing the blockchain and swap file, as constant writing to a microSD can degrade the health of the microSD. Supports
Raspberry Pi 3 B+ | ARM Cortex-A53 1.4GHz | 1GB SRAM |
Raspberry Pi Zero (W) | Single Core ARMv6 1 Ghz | 433MB RAM |
All of the hardware listed above is hardware that I have personally tested / am testing on myself. The plan is to continue expanding my arsenal of single board computers and continue to add support for more hardware to ensure as much compatibility as possible. Functionality
Installs Vertcoin full node to Single Board Computer
Installs p2pool-vtc (Optional)
Installs LIT and LIT-AF (Optional)
It is worth noting that LIT can be ran with multiple configurations, the ones displayed in the Post Installation Report reflect values that run LIT with the Vertcoin Mainnet. Please be aware that the Vertcoin Testnet chain has not been mined 100% of the time in the past, if you make transactions on the Vertcoin testnet that do not go through it is likely because the chain has stopped being mined. BE CAREFUL WITH YOUR COINS, ONLY TEST WITH WHAT YOU ARE OKAY WITH LOSING IF YOU USE THE MAINNET.
Recommended: Use Etcher to install the chosen OS to your microSD card / USB flash drive.
If you intend on installing Ubuntu Server 16.04 to your Intel NUC please use Etcher to install the .iso to your USB flash drive. https://etcher.io/ PLEASE NOTE THIS SCRIPT MAY GIVE AN ERROR. THIS IS THE NATURE OF TESTING. PLEASE REPORT YOUR ERRORS IF YOU WANT THEM TO BE FIXED/RESOLVED. THANK YOU FOR BETTERING THE DEVELOPMENT OF THIS SCRIPT.
You can use different clients to ssh into your node. One option is using PuTTY or Git Bash on Windows which is included in the desktop version of Git. If you are using Linux you can simply open a new terminal window and ssh to the IP address of your node (hardware you intend installing the Vertcoin node on). You will need to know the IP address of your node, this can be found on your router page. ssh 192.168.1.5 -l pi For example, this command uses ssh to login to 192.168.1.5 using the -l login name of pi. The IP address of your node will likely be different for you, in this example I am logging into a Raspberry Pi which has a default login name of pi. A brief list of commands that can be used to check on the Vertcoin node status: vertcoin-cli getblockchaininfo | Grab information about your blockchain vertcoin-cli getblockcount | Grab the current count of blocks on your node vertcoin-cli getconnectioncount | Grab the current count of connections to your node. A number of connections larger than 8 means that you have incoming connections to your node. The default settings are to make 8 outgoing connections. If you want incoming connections please port forward your Raspberry Pi in your Router settings page. vertcoin-cli getpeerinfo | Grab the information about the peers you have connected to / are connected to vertcoin-cli getnettotals | Grab network data, how much downloaded/upload displayed in bytes tail -f ~/.vertcoin/debug.log | Output the latest lines in the Vertcoin debug.log to see verbose information about the Vertcoin daemon (ctrl+c to stop) Thank you to all who have helped me and inspired me thus far, @b17z, @jamesl22, @vertcoinmarketingteam, @canen, @flakfired, @etang600, @BDF, @tucker178, @Xer0 This work is dedicated to the users of Vertcoin, thank you for making this possible. 7/20/2018 Thank you @CommodoreAmiga for the incredibly generous tip <3 You can reach me @Sam Sepiol#3396 on the Vertcoin Discord, here on reddit or @ [email protected]
This post is a temporary resting place for FAQs while we wait for the release of VertDocs.
What is Vertcoin?
Vertcoin is a digital peer to peer currency focused on decentralization and ASIC resistance. Vertcoin is aiming to be easily accessible to the everyday user without extensive technical knowledge. Vertcoin has started to lower the barrier of entry with lots of video guides and the development of the One Click Miner (OCM).
Why does ASIC Resistance Matter?
ASICs (Application Specific Integrated Circuits) are dedicated mining devices that can only mine one algorithm. Coins like Bitcoin and Litecoin both made GPU mining obsolete when SHA-256 and Scrypt ASICs were created.
ASIC Resistance and How it Makes Vertcoin Decentralized
Vertcoin believes that ASIC resistance goes hand in hand with decentralization. ASICs are made by companies like Bitmain and almost all the original sellers of ASICs sell on a preorder basis. When pre ordering an ASIC you are buying from a limited batch that the ASIC company has produced. Often times the batch will not be fully filled and the ASIC company will often have left over ASICs. When the ASIC company has left over ASICs they will put them to work mining. Soon enough the ASIC company will have a very large amount of unsold ASICs that are mining and slowly the ASIC company starts to own a large part of the network’s hashrate. When an ASIC company(s) starts to own a large majority of the hashrate the network can become very centralized after a while. Having your network consist of a few large companies can be very dangerous as they could eventually get 51% hashing power and 51% attack your network, destabilizing the network. When your network is made out of a lot of smaller miners, like Vertcoin, it is much harder for your network to be 51% attacked, therefore increasing network security. By having centralized hashing power your coin effectively centralizing the network as the centralized hashing power can deny transactions and stop any activity they don’t want.
What Ways is Vertcoin Superior to Litecoin and Bitcoin?
Network Difficulty Adjustments with Kimoto Gravity Well
Vertcoin uses a difficulty adjustment called Kimoto Gravity Well which adjusts the difficulty every block, whereas Bitcoin and Litecoin’s difficulty changes every 2016 blocks. By adjusting the difficulty every block Vertcoin’s block time can stay consistent by adjusting for the fluctuation in network hash rate from hash rate renting and part time miners. If a large miner switches off Bitcoin or Litecoin mining the network could be slowed to a crawl until 2016 blocks are mined and the difficulty can change to adjust for the new network hash rate. We observed this happen to Bitcoin when Bitcoin Cash became more profitable than Bitcoin and Bitcoin’s network hash rate saw a steep fall off, slowing the network to a crawl. If this was to happen with Vertcoin the difficulty would adjust after 1 block was mined, allowing Vertcoin to always be profitable to mine.
Anyone can Meaningfully help Verify Transactions
In Proof-of-Work crypto currencies miners help secure the blockchain and get rewarded with the block reward. In ASIC mineable coins like Bitcoin and Litecoin you can’t meaningfully verify transactions unless you pay 1000-2000$ for a ASIC miner. When you mine with a CPU or GPU in a ASIC mineable coin you make no meaningful impact on the network. It is like trying to break concrete with a shovel while everyone else has a jackhammer.
Simple Upgrades Aren’t Held back by 1-2 Large Miners
In ASIC market people buy ASICs in batches in a preorder. With Bitcoin ASICs there is not enough demand for ASICs so the batch often doesn’t get sold out so now the manufacturer has spare ASICs. Now that the manufacturer has spare ASICs they will often start mining with them and eventually the ASIC company has one of the highest hash rates. If the ASIC company doesn’t want a certain upgrade to go through, for example SegWit, they can vote with their hash rate to hold back the upgrade forever or at least until people who want SegWit get more hash rate.
You Have a Say in Protocol Rules and Consensus
In Bitcoin you are a passive observer because you can only issue transactions and you have no part in the process after that. In Vertcoin you can be apart of the process for deciding the ordering of transactions and deciding what transactions get into blocks.
Block Rewards and Transaction Fees are Distributed Evenly
In Bitcoin and Litecoin the block rewards and transaction fees are often given to the large miners in China due to mining centralization created by ASICs. Vertcoin distributes its mining rewards to people all around the world thanks to the mining decentralization.
When will Atomic Swaps Be Ready?
Atomic Swaps can be done in two flavors: On-chain and Off-chain (via Lightning Network). On-chain swaps were actually done already using Blocknet, you can see it in use on Youtube. We're looking into doing it again using Interledger. However our main focus is to do off-chain Atomic Swaps using Lightning Network technology. Because it has the same benefits as Lightning transactions: No network fees and instant transactions. For off-chain swaps we need Lightning Network to be fully operational. It's difficult to give an ETA on that since we aren't the ones developing it. U/gertjaap posted a video on the current state of the Lightning Network for Vertcoin a while ago, which you can see here. This was actually the "bleeding edge" of Lightning Network at the time. was able to use it on VTC's main net, meaning that our blockchain is ready for the good stuff. As you can see however, it can't yet be considered production ready (most users would want a little better UX than a command line app). Now off-chain Atomic Swaps is a technique based on the same principles as Lightning Network, but adds an extra complexity for it being across chains. So it's basically the same as a "multi hop" Lightning payment, which is not yet built by any of the implementations. They're still working hard on making the single-hop payments robust. So in order for AS to be possible, LN has to be fully operational. A timeline cannot be given at this time, because frankly we don't know. The implementation of Lightning Network we feel has the most potential is LIT, because it supports multiple currencies in its protocol (where LND is bitcoin-only at the time and requires significant work to support other currencies, which is an essential part of being able to work across multiple blockchains). LIT is open source and there's nothing secretive about its progress, you can see the development on Github. We even have our lead dev James Lovejoy (u/jamesl22) close to the action and contributing to it where possible (and our team as well through testing it on the Vertcoin chain). So we're not developing LN or AS ourselves, we're just ready with our blockchain technology whenever it becomes available. If we have any real progress that has some substance, you can expect us to let the world know. We're not interested in fluffy marketing - we post something when we achieve real progress. And we are not keeping that secret.
How do I Choose the Right Vertcoin Wallet?
Deciding what Vertcoin wallet you should choose can be a difficult process. You can choose between three different wallets: Core, Electrum and Paper. Once you decide you can use the "How to Setup Your Vertcoin Wallets" video guide to assist you.
The Core wallet is the wallet that most people should use. It will store the entire blockchain (~2GB) on your computer. The Core wallet is the only wallet that fully supports P2Pool mining. You will also have to use the Core wallet if you plan to run a P2Pool node or any Vertcoin related server.
The Electrum wallet is a light wallet for Vertcoin. You do not have to download the blockchain on your computer, but you will still have your own private keys on your computer. This is recommended for people who don't need to store Vertcoins for very long and just need a quick but secure place to store them.
The Paper wallet is as the name implies, a physical paper wallet. When generating a paper wallet you will get a pdf that will need to print out. A paper wallet is normally used for long term storage since it is the safest way to store Vertcoins. A paper wallet can also be called "cold storage." Cold storage references the storage of your coins offline, preventing you from getting hacked over the internet.
Ledger Nano S
The Ledger Nano S is a hardware wallet designed by Ledger. A hardware wallet is similar to a paper wallet since it is normally used for cold storage. The hardware wallet is on par with the security of a paper wallet while being easy to use and setup. Note: You should never mine directly to a Ledger hardware wallet.
You can get the latest version of the One Click Miner in the Vertcoin Discord. The download is pinned to the top of the #oneclick channel.
What do all the Numbers Mean on P2Pool’s Web Interface
I've seen a lot of confusion from new miners on public p2pool nodes, so here's a primer for the most common static node page style, for first time miners: https://imgur.com/K48GmMw
Active Miners on this Node
Address - This is the list of addresses currently mining on this node. If your address does not show up here, you are not mining on this node.
This is a snapshot of your hashrate as seen by the node. It will fluctuate up to 15% from the hashrate you are seeing on your mining software, but will average out to match the output in your mining software.
This is the amount of your hashing contribution that is rejected, both in hashrate and as a percentage of your total contribution. Running your own p2pool node minimizes this number. Mining on a node that is geographically close to reduce lag also minimizes this number. Ideally you would like it to be less than 1%, but most people seem happy keeping it under 3%.
This speaks for itself, it is the difficulty of the share being currently worked on. Bigger numbers are more difficult.
Time to Share
This is how long you need to mine before you will receive any payouts, or any "predicted payout." The lower your hashrate, the higher your time to share.
This is the reward you would receive if a block was found by p2pool right now. If it reads "no shares yet" then you have not yet been mining the requisite amount of time as seen in the previous "time to share" column.
This is the total hashrate of all the miners mining vertcoin everywhere, regardless of where or how.
Global Pool Hashrate
This is the total hashrate of all the miners mining vertcoin on this p2pool network, be it the first network or the second network.
Local Pool Hashrate
This is the total hashrate of all the miners mining Vertcoin on this node.
Current Block Value
This is the reward that will be given for mining the current block. The base mining reward is currently 50 VTC per block, so any small decimal over that amount is transaction fees being paid by people using the network.
Network Block Difficulty
This is the difficulty of the block being mined. The higher the number, the higher the difficulty. This number rises as the "Network Hashrate" rises, so that blocks will always be found every 2.5 minutes. Inversely, this number falls when the "Network Hashrate" lowers as well.
Expected Time to Block
This is a guess at how much time will elapse between blocks being found by this p2pool network. This guess is accurate on average, but very inaccurate in the short term. Since you only receive a payout when the network finds a block, you can think of this as "Estimated Time to Payout."
Why is P2Pool Recommended Over Traditional Pools?
P2Pool is peer to peer allowing a decentralized pool mining system. There are many nodes setup around the world that connect to each other too mine together. Many other coins have 1 very large pool that many miners connect to and sometimes the largest pool can have 51% or more of the network hash rate which makes the network vulnerable to a 51% attack. If P2Pool is the largest network then that prevents the Vertcoin network to be susceptible to a 51% attack as P2Pool is decentralized.
PPLNS Payout System
P2Pool uses a PPLNS (Pay Per Last N Shares) payout system which awards miners more the longer they mine, sort of like a loyalty system. A drawback to this system is that part time miners that aren't 24/7 won't be able to earn that much.
While Network 1 is catered towards 24/7 miners and people who have dedicated mining rigs, Vertcoin has a second P2Pool network where part time miners and miners under 100 MH/s can go to mine.
Mines Directly to Your Wallet
P2Pool mines directly to your wallet and cuts out the middleman. This reduces the likely hood that the pool will run away with your coins.
Since P2Pool is decentralized and has different nodes for you to choose from there will be no downtime because the P2Pool network does not die if one node goes down. You can setup a backup server in your miner so that you will have no downtime when mining.
Anonymity and Security
When using P2Pool you use a wallet address making your real identity anonymous, you are simply known by a random 34 letter string. Along with using a wallet address instead of a username there is no password involved P2Pool preventing the possibility of cracking your pool account (If you were on a traditional pool,) and stealing all your coins.
How do I Find a Nearby P2Pool Node
You can find the public p2pool nodes the the P2Pool Node Scanners. If you want to find a network 1 node go here. If you want to find a network 2 node go here.
The quickest way for you to get help is for you to join the Vertcoin Discord Group. We almost always have knowledgable Vertans, whether that be developers or experienced Vertans, online to help you with whatever problems you may have.
How can I donate to the Developers?
You can donate to the dev fund at https://vertcoin.org/donate/. You can select what you want your funds to go to by donating to the corresponding address. You can also see how much funding is required and how much we have donated.
The Vertcoin developers currently have a trello board where you can see the goals and what the status of said goal is. You can also vote on what you want the Vertcoin developers to focus on next.
What is the Status of the AMD Optimized Miner?
The AMD Optimized Miner internal beta is aiming to be ready by the end of September. The AMD Optimized Miner is currently being developed by @turekaj on the Vertcoin Discord. He currently does not have a Reddit account and Discord is the only way you can contact him.
What Does Halving Mean?
Halving means that the block reward for miners will be split in half. Halving happens around every 4 years for Vertcoin or 840,000 blocks. This means around December miners will only receive 25 VTC per block instead of the current 50 VTC per block. If you would like to add another question to this list please comment it and I will get around to adding it ASAP.
Vertcoin is a digital currency that can be sent from peer to peer over the internet. Though similar to LTC and BTC, Vertcoin has one major difference; ASIC resistance. While this may seem like a minor change, it actually has much larger implications when it comes to the fair distribution, politics, and decentralization of the coin. Vertcoin stays true to the original vision of cryptocurrency: a financial system owned by its users, the people’s coin.
Why ASICs are harmful to cryptocurrency
While ASICs can more efficiently mine coins like Bitcoin and Litecoin compared to GPUs, their introduction unfortunately created a new problem. Unlike GPUs or CPUs, the every day person does not and will never own an ASIC. In fact, most Bitcoin and Litecoin mining isn't done by it's users at all. The majority of these machines are owned and operated by large mining companies and ASIC manufacturers, this is a problem. This creates an environment where the companies ultimately control the ASIC coins and have a vested interest to pursue profit over progress. We all witnessed the politics behind Bitcoin, Bitcoin Cash and Segwit2x. This isn't the first time we've seen drama like this, and it won't be that last. Vertcoin foresaw the issues ASICs would bring in to this space and is committed to remaining ASIC resistant. We believe everyone should have the opportunity to mine the currency, not just a select few. Now that you're more familiar with Vertcoin, let's get started!
To get started with Vertcoin, the first thing you need is a Wallet. Wallets are needed to store, send and receive your coins (private keys) on your computer or mobile device. If possible, we recommend you use the Vertcoin Core Wallet. When setting up your wallet you will generate a set of receiving addresses. These addresses are to be used whenever receiving VTC. Listed below are a few wallet options available.
Depending on where you live, the process for purchasing may be a little different. The majority of Vertcoin is purchased with bitcoin on an exchange. Listed below are different exchanges that support Vertcoin trading.
Mining Vertcoin helps secure the network and process transactions but it also is a great way to generate Vertcoin for yourself. Because Vertcoin is mined using GPUs (Graphics cards), chances are, you already have what you need to get started. This is just a general overview so we won't go into detail here, but the only things you need to get started mining are a Vertcoin wallet, a computer with a GPU, and a miner - a little program that tells your GPU what to mine. Right now the best GPUs to use when mining Vertcoin are the NVidia 10 Series cards. We're working on making it more profitable to use AMD cards as well. Listed below are a few miners you can use to mine Vertcoin.
We believe Vertcoin is a better alternative to Litecoin and Bitcoin. Centralized mining has no place in the crypto-space and should not be considered the norm or acceptable. Vertcoin is positioned to break this cycle and place the power back in to the communities hands. As more people begin to realize the value of ASIC resistance, we're starting to see an influx of interest in the coin. To put it plainly, Vertcoin is a coin with simple principles. We aim to provide a truly decentralized currency by placing the power to mine and secure the network in the hands of everyone. No politics. No centralized ASIC farms. No bullshit. Just the coin and the community, we believe the crypto-space needs that.
[Serious, long] My thoughts on what next for Dogecoin
There’s been a lot of discussion in recent days about the decreasing price of Dogecoin, as well as the risk of a 51% attack from Wafflepool or similar. I wanted to do a wrap-up of the discussions happening amongst the developers of the last few weeks, partly to illustrate that we are looking at options, but mostly to talk about what is happening. Please note that this is all rapidly changing. Dogecoin is actually moving at breakneck speed for a project of its size, especially as we still have a relatively limited core team. This is part of why we don’t write posts very often, as they become out of date so quickly as new arguments and facts are presented. Lets talk about 51% attacks first. The theory is that if anyone has over 51% of the total hashing power of the network, they can form a blockchain of their own which is considered “more valid” than the blockchain most users are on. This is because cryptocurrency blockchains are secured through proof of work, and therefore more work on a chain makes it, in essence, more valid. This risks an attacker spending coins on one chain, then releasing their own private, longer, blockchain. That latter blockchain replaces the original blockchain, and the coins they spent on the original blockchain are effectively returned to them as if the transactions never happened. It’s important to understand this because I hear suggestions that Wafflepool shouldn’t accept over 51% of the network hashrate, and unfortunately all this would do is hide the risk. Having one pool own over 51% of the network hashrate is not a problem if it’s actually being used to mine, but instead if it’s used to create a personal blockchain. The other issue raised is one of price; we’ve been steadily dropping since around early February. The core of my answers here is that you need to consider demand vs supply. What happened back in February was that we saw a surge in demand beyond sustainable levels, likely in a form of tulip mania. As supply continued (mining), and demand dropped-off, our price has dropped. This has been worsened by a succession of bad news affecting Bitcoin (MtGox and other exchanges struggling, uncertainty of China and Russia, etc.), which both directly brings down our price, as well as undermining confidence in the entire cryptocurrency ecosystem. It has been suggested (and I can believe this, but have not done my own analysis) that as multipools continue to dominate Dogecoin mining, and they tend to sell coins directly, that they are further reducing the price. Specifically, given that while there is demand for further coins from miners, as they have already expended resources on mining hardware they cannot then purchase the cheap coins the mining pools are producing. Lastly, there’s the question of ASICs; these are specialised mining devices which are significantly faster than CPU/GPU mining hardware, and typically cheaper to run due to reduced power and space requirements. Their introduction into mining at the moment leaves vastly disproportionate mining power in the hands of a few (there’s one individual with a hashrate of around 20GH/s, for example), and in time is likely to make mining on commodity hardware infeasible. We’ve had a lot of suggestions for what to do; change proof of work algorithm, add multiple proof of work algorithms, move to proof of stake, merge-mine with Litecoin, have DigiShield merge-mine with us. We’ve considered everything, and then some; I’m not sure how much discussion has happened in total, but I’ve spent over a dozen hours looking at these issues on IRC. In virtually all cases, the majority of people with the skills to implement these changes have rejected them as too high risk and/or having other significant drawbacks. In summary:
Changing proof of work introduces a number of risks; potential for a bug in the change to cause serious consequences (see recent the issue withCleanWaterCoin for examples),that we don’t manage to get a majority updated before fork and end up effectively 51% attacking our own blockchain (not to mention that at least one exchange frequently misses these updates and causes problems as a result), that the algorithm itself has problems (see the long term issues of multipools managing to exploit “random” block rewards), or we simply lose users/merchants who are fed up constantly updating software.
As a less technical concern; personally I’m uncomfortable knowingly make changes which intentionally introduce unneeded inefficiencies, which mean consumption of vastly more resources (electricity, and by proxy fossil/nuclear fuels). I imagine I’ll be swamped by shibes running geothermal mining facilities at the end of this post…
Changing to proof of stake (and this is particularly relevant in context of my previous comment) is interesting, however right now I don’t feel I personally know enough to make a judgement on how to make the jump safely and efficiently. Statistician/economist shibes, I’d love to hear more from you.
While I don’t like the idea of changing proof of work, I’m also pragmatic about these things; I am trying to find time to read up on Myriadcoin‘s multiple-PoW support, and in particular considering whether it could be hooked into the code without necessarily enabling it right now, as a harness for potential future changes.
Merged mining with Litecoin (and thanks to Charlie Lee for the invitation, of course) would likely help us mitigate 51% attack risks, by merging our mining power together, however it would introduce what have so far been considered undue issues for our mining community. Specifically, merged mining would require significant changes to mining infrastructure, adopting either p2pool or a mining proxy. Many have raised concerns that LTC miners would simply dump DOGE; personally I believe we could have an LTC/DOGE swap doing in the p2pool layer to give each miner whichever coin they prefer, to mitigate this, so this is not a risk I consider a major issue. There are also concerns that we would always be the secondary coin to LTC; personally I’d have considered a pre-defined block at which we de-merge a requirement, but again this isn’t a route we’re taking, I am just going through the evaluation I have done for reference.
Having smaller coins merge with us is interesting, however given our size in proportion to those coins, and that they are likely to be reluctant to merge with us (as we are reluctant to merge with Litecoin), I’m not expecting to see much progress in this area. We have made the invitation to DigiByte however.
The best suggestion we have so far is to out-do the multipools directly, by working on open source multipool software which is more DOGE-friendly. As I understand it two key approaches are being considered for improving DOGE-friendliness; either by directly exchanging other coins to DOGE, or through improved trading algorithms which result in less sharp shocks to the price. For very large mining farms such as SFire’s, it’s hoped this will cause them to separate from the mining pools (which they pay fees to) and go solo. This reduces fees for the miner, as well as reducing the ability for DDoS attacks to be targeted at them, and for us it reduces risk of a 51% attack, improves confidence in the coin security, and enables us to better mitigate impact of people mining huge quantities to sell. Meanwhile, the main focus is on making Dogecoin (and cryptocurrencies in general) a viable way of moving value around. The 1.7 client (beta release is imminent, and in fact if you’re comfortable compiling it yourself, the code is available from https://github.com/dogecoin/dogecoin/tree/v1.7.0-Beta-1 ) is a major re-write of Dogecoin Core to base it on the Bitcoin Core 0.9 client (with Scrypt added in, of course). This gives us significant performance improvements, as well as a better underlying architecture. To repeat; this will not be a required update, although it will be strongly encouraged as it’s a huge leap forward technologically. One of the features which is currently not working in 1.7, but will be for release, is the Bitcoin payment protocol, which massively improves the payment request/receiving process for merchants. Fundamentally 1.7 is intended to prove we have the technical skills to maintain a stable, useful coin, and help drive/support adoption. Once 1.7 is done, my immediate priority is technical documentation; we have a security specialist currently working on a guide to cryptocurrency security (setup, risks, best practices, etc.), to help give merchants and exchanges an in-depth understanding of how to securely use cryptocurrency. I’ll be addressing the need for formal standards in Dogecoin, and preparing RFCs for the “dogecoin:” URI and relay network protocol for submission to the IETF (and IANA for the URI). Lastly; there was a post recently about the need for multi-signature addresses; I’d like to add my own “hell yes!” to that, although obviously I have to prioritise. If anyone else can look at these, that would be fantastic. For anyone wanting a more permanent link, there's a copy of this on my blog ( http://jrn.me.uk/wp/what-next-for-dogecoin-mid-april-2014/ ), however posting as full text here as probably easier for most people, and I'm not sure my server would survive a reddit hug! Edit: It's been pointed out that there's no verification of the problems with Blackcoin, and the source alleging problems has a serious credibility issue. Have removed the reference now.
I'm new to ASIC mining (coming from GPU mining), and I have heard great things about mining with P2Pool. I have found a little bit of info on how to mine P2Pool, but I'm pretty lost. I don't want to setup a node, I'll just use a public one. I have heard that I use the address: http://[pool ip]:9327/ . Is that correct? I have found multiple P2Pool websites, but Bitcoin wiki says http://p2pool.in is the official one. I have a few questions.
Where do I put my address in the Antminer software / how do I connect my wallet to P2Pool?
Where can I find legitimate Litecoin P2Pool Nodes?
Sorry everyone, this one’s going to be very serious again, and I'm going to start with administrivia. First of all, a few people have mistake me for lead developer recently; I'm not, I'm just the one that’s more vocal and therefore gets attention. langer_hans is lead developer, and has been working on the coin much longer than I have. Quick reminders of a couple of things; for new shibes getting started with the main client, you can download a blockchain bootstrap file which helps you get going faster. So Chain is hosting instructions, and copies of the bootstrap.dat are hosted by themselves and Moolah (see links on that page). We've also seen a few people asking about the 1.7 release; yes it’s out, no you don’t have to upgrade, but it does seem a lot faster to us, so we would encourage upgrading. Also there is a mailing list for announcements of upcoming client releases at https://lists.sourceforge.net/lists/listinfo/dogecoin-releases which I would recommend subscribing to. So, yesterday lleti asked about an idea to see if there was community support for it. A developer asking does not mean something is going to be done. Even if it was done, it does not mean you have to follow (I’ll talk about that in a moment). Feedback to date has been overwhelmingly negative, though, so consider the idea abandoned. A few people asked have why the idea was suggested; the intent would be to remove sharp shocks from the mining schedule, and spread it over a longer period of time in order to give adoption of Dogecoin a chance to catch up. One thing I'm not sure was clear was that there was consideration of changing block time to reduce the resulting inflation. As said, we’re not seeing community support for it. Talking of adoption; /dogecoin has just ticked over 87,000 subscribers. Some Dogecoin users don’t read the subreddit, some subreddit readers don’t use the coin, but lets use that as an estimate for user base. That’s huge for a coin that’s 6 months old, and tiny in terms of an Internet service. And it’s worth remembering Bitcoin is 5 years old, Litecoin 2 years. Peercoin, almost 2 years. That’s the coins we’re in the midst of right now. The developers are cautious of making big technical changes because we want to stabilise the coin so the more cautious companies can know the coin is rock solid, and encourage them to get involved. So, everyone’s been all about the price this week, and while I hate talking price with you guys, I need to as background on a lot of other stuff. So, the DOGE/BTC price is down, yes. DOGE/USD also a bit, but much less. DOGE/DOGE still solid, though. We’re Dogecoin, though, the price shouldn't matter… well, agreed, but it’s worrying people, and in particular there’s a lot of people worrying the price drops will lead to a 51% attack. So lets talk about 51% attacks, and lets also talk forks. A 51% attack is where someone gains control of over 50% of the hashrate of the network, and maliciously uses that hashrate to make their own private blockchain which grows faster than the default blockchain. The malicious part is really important here; it’s an attack, not something that happens accidentally. In doing this, they can spend money on the current blockchain, then release their private blockchain. The network sees the longer blockchain and moves to it as part of the fork handling code (note the fork, it’s important). This effectively reverses the spending of Dogecoin that they’ve done. Note that this is only really an attack on exchanges, as the attacker has to get their Dogecoin into another form (i.e. Bitcoin) before the transaction reverses, or the whole thing has no effect. So far, no exchange has communicated any serious concern about a 51% attack on Dogecoin to myself, and I am unaware of them having done so to any other developer. The concern over price is raised because as Dogecoin rewards per block diminish over time (which they continue to do for the next 6 months or so), the payments to miners become less valuable (in USD/BTC terms) unless the price goes up. Many of our miners are here to support the coin (with thanks to /DogecoinDefenseForce), but some are just here for the money, and people worry that losing them will make it easy to 51% attack the coin. So how does one a get enough mining power to 51% attack a coin? I mean, our hashrate is in the 40-50GH/s range, how do you get 51% of that (or more, if it’s a group not currently mining us)? Well, a hacked mining pool is the main scenario that worries people; it’s considered unlikely any mining pool would decide to attack their own funding source (and the big pools are making big money through entirely legal means). When Bitcoin had the same problem back in January, there was a major push to adopt what is called p2pool, which is a distributed alternative to conventional mining pools. There’s been a few issues with p2pool and Dogecoin which is part of why it’s not more widely used, but I’d really like to see more people looking at it, and talk to the developers about what (if anything) it needs for wider adoption. Ideally I’d like to get all new miners picking up p2pool, so if anyone wants to help with tutorials that would be awesome. A number of other ideas (apart from p2pool adoption) have been proposed; change proof of work, change to proof of stake now, change to proof of stake later, merged mining, multi-protocol mining… all of these have something in common, they require that we fork the coin. Now, a deliberate planned and controlled fork is quite different to a 51% attack fork, but that does not mean that it’s risk free. One scenario would be a disagreement with the developers over path the coin is taking (as we’re seeing with the tapering suggestion), and the community not updating, leaving the developers on their own very small fork. Other scenarios could include significant numbers of exchanges stuck on the wrong “prong” of the fork for an extended period of time. We've had at least one exchange get “stuck” for days or weeks on every fork so far, causing significant confusion and distress to those trying to send coins to or receive coins from the exchange. Same for merchants, who might report not receiving coins if they or the sender are on different forks. Although unlikely, it’s also possible that the fork would introduce a serious bug. There are a number of coins which have been PoW at launch and intended to move to PoS shortly afterwards, and failed to actually switch. Certainly any such change is not without its risks. Lastly, on a personal note, I'm going to be focusing primarily on co-ordination and communication from here on in, rather than working on the code base directly. I’d like to give a shout-out to our many other developers, there are far too many people now involved to name them all, but langer_hans as lead developer, leofidus-ger, patricklodder have all worked extensively on the 1.7 client. Go give them a hug! If any of the community want to get involved with development, please do swing by #dogecoin-dev on IRC Freenode and we can help get you started.
Abstract Merged mining refers to the concept of mining more than one cryptocurrency without necessitating additional proof-of-work effort. Merged mining was introduced in 2011 as a boostrapping mechanism for new cryptocurrencies and countermeasures against the fragmentation of mining power across competing systems. Although merged mining has already been adopted by a number of cryptocurrencies, to this date little is known about the effects and implications. In this thesis, we shed light on this topic area by performing a comprehensive analysis of merged mining in practice. As part of this analysis, we present a block attribution scheme for mining pools to assist in the evaluation of mining centralization. Our findings disclose that mining pools in merge-mined cryptocurrencies have operated at the edge of, and even beyond, the security guarantees offered by the underlying Nakamoto consensus for extended periods. 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Q: What is your relationship with Blockstream now? Are you in a Cold War? Your evaluation on BS was pretty high “If this amazing team offers you a job, you should take it,” tweeted Gavin Andresen, Chief Scientist, Bitcoin Foundation.” But now, what’s your opinion on BS? A: I think everybody at Blockstream wants Bitcoin to succeed, and I respect and appreciate great work being done for Bitcoin by people at Blockstream. We strongly disagree on priorities and timing; I think the risks of increasing the block size limit right away are very small. I see evidence of people and businesses getting frustrated by the limit and choosing to use something else (like Ethereum or a private blockchain); it is impossible to know for certain how dangerous that is for Bitcoin, but I believe it is more danger than the very small risk of simply increasing or eliminating the block size limit.
Q: 1) Why insist on hard fork at only 75%? You once explained that it is possible to be controlled by 5% if we set the threshold at 95%. I agree, but there should be some balance here. 75% means a high risk in splitting, isn’t it too aggressive? Is it better if we set it to 90%? A: 1)The experience of the last two consensus changes is that miners very quickly switch once consensus reaches 75% -- the last soft fork went from 75% support to well over 95% support in less than one week. So I’m very confident that miners will all upgrade once the 75% threshold is reached, and BIP109 gives them 28 days to do so. No miner wants to create blocks that will not be accepted by the network. Q: 2) How to solve the potentially very large blocks problem Classic roadmap may cause, and furthur causing the centralization of nodes in the future? A: 2)Andreas Antonopoulos gave a great talk recently about how people repeatedly predicted that the Internet would fail to scale. Smart engineers proved them wrong again and again, and are still busy proving them wrong today (which is why I enjoy streaming video over my internet connection just about every night). I began my career working on 3D graphics software, and saw how quickly we went from being able to draw very simple scenes to today’s technology that is able to render hundreds of millions of triangles per second. Processing financial transactions is much easier than simulating reality. Bitcoin can easily scale to handle thousands of transactions per second, even on existing computers and internet connections, and even without the software optimizations that are already planned. Q: 3) Why do you not support the proposal of RBF by Satoshi, and even plan to remove it in Classic completely? A: 3) Replace-by-fee should be supported by most of the wallets people are using before it is supported by the network. Implementing replace-by-fee is very hard for a wallet, especially multi-signature and hardware wallets that might not be connected to the network all of the time. When lots of wallet developers start saying that replace-by-fee is a great idea, then supporting it at the network level makes sense. Not before. Q: 4) . Your opinion on soft fork SegWit, sidechain, lighnting network. Are you for or against, please give brief reasons. Thanks. A: 4) The best way to be successful is to let people try lots of different things. Many of them won’t be successful, but that is not a problem as long as some of them are successful. I think segregated witness is a great idea. It would be a little bit simpler as a hard fork instead of a soft fork (it would be better to put the merkle root for the witness data into the merkle root in the block header instead of putting it inside a transaction), but overall the design is good. I think sidechains are a good idea, but the main problem is finding a good way to keep them secure. I think the best uses of sidechains will be to publish “write-only” public information involving bitcoin. For example, I would like to see a Bitcoin exchange experiment with putting all bids and asks and trades on a sidechain that they secure themselves, so their customers can verify that their orders are being carried out faithfully and nobody at the exchanges is “front-running” them. Q: 5) Can you share your latest opinion on Brainwallet? It is hard for new users to use long and complex secure passphrase, but is it a good tool if it solves this problem? A: 5) We are very, very bad at creating long and complex passphrases that are random enough to be secure. And we are very good at forgetting things. We are much better at keeping physical items secure, so I am much more excited about hardware wallets and paper wallets than I am about brain wallets. I don’t trust myself to keep any bitcoin in a brain wallet, and do not recommend them for anybody else, either.
Q: Gavin, do you have bitcoins now? What is your major job in MIT? Has FBI ever investigated on you? When do you think SHA256 might be outdated, it seems like it has been a bit unsafe? A: Yes, a majority of my own person wealth is still in bitcoins -- more than a financial advisor would say is wise. My job at MIT is to make Bitcoin better, in whatever way I think best. That is the same major job I had at the Bitcoin Foundation. Sometimes I think the best way to make Bitcoin better is to write some code, sometimes to write a blog post about what I see happening in the Bitcoin world, and sometimes to travel and speak to people. The FBI (or any other law enforcement agency) has never investigated me, as far as I know. The closest thing to an investigation was an afternoon I spent at the Securities and Exchange Commission in Washington, DC. They were interested in how I and the other Bitcoin developers created the software and how much control we have over whether or not people choose to run the software that we create. “Safe or unsafe” is not the way to think about cryptographic algorithms like SHA256. They do not suddenly go from being 100% secure for everything to completely insecure for everything. I think SHA256 will be safe enough to use in the all ways that Bitcoin is using it for at least ten years, and will be good enough to be used as the proof-of-work algorithm forever. It is much more likely that ECDSA, the signature algorithm Bitcoin is using today, will start to become less safe in the next ten or twenty years, but developer are already working on replacements (like Schnorr signatures).
Q: It’s a pleasure to meet you. I only have one question. Which company are you serving? or where do you get your salary? A: The Media Lab at MIT (Massachusetts Institute of Technology) pays my salary; I don’t receive regular payments from anybody else. I have received small amounts of stock options in exchange for being a techical advisor to several Bitcoin companies (Coinbase, BitPay, Bloq, Xapo, Digital Currency Group, CoinLab, TruCoin, Chain) which might be worth money some day if one or more of those companies do very well. I make it very clear to these companies that my priority is to make Bitcoin better, and my goal in being an advisor to them is to learn more about the problems they face as they try to bring Bitcoin to more of their customers. And I am sometimes (once or twice a year) paid to speak at events.
Q: Would you mind share your opinion on lightning network? Is it complicated to implement? Does it need hard fork? A: Lightning does not need a hard fork. It is not too hard to implement at the Bitcoin protocol level, but it is much more complicated to create a wallet capable of handling Lightning network payments properly. I think Lightning is very exciting for new kinds of payments (like machine-to-machine payments that might happen hundreds of times per minute), but I am skeptical that it will be used for the kinds of payments that are common on the Bitcoin network today, because they will be more complicated both for wallet software and for people to understand.
Q: 1) There has been a lot of conferences related to blocksize limit. The two took place in HongKong in Decemeber of 2015 and Feberary of 2016 are the most important ones. Despite much opposition, it is undeniable that these two meetings basically determines the current status of Bitcoin. However, as the one of the original founders of Bitcoin, why did you choose to not attend these meetings? If you have ever attended and opposed gmax’s Core roadmap (SegWit Priority) in one of the meetings, we may be in a better situation now, and the 2M hard fork might have already begun. Can you explain your absence in the two meetings? Do you think the results of both meetings are orchestrated by blockstream? A: 1) I attended the first scaling conference in Montreal in September of 2015, and had hoped that a compromise had been reached. A few weeks after that conference, it was clear to me that whatever compromise had been reached was not going to happen, so it seemed pointless to travel all the way to Hong Kong in December for more discussion when all of the issues had been discussed repeatedly since February of 2015. The February 2016 Hong Kong meeting I could not attend because I was invited only a short time before it happened and I had already planned a vacation with my family and grandparents. I think all of those conferences were orchestrated mainly by people who do not think raising the block size limit is a high priority, and who want to see what problems happen as we run into the limit. Q: 2) We have already known that gmax tries to limit the block size so as to get investment for his company. However, it is obvious that overthrowing Core is hard in the short term. What if Core continues to dominate the development of Bitcoin? Is it possible that blockstream core will never raise the blocksize limit because of their company interests? A: 2) I don’t think investment for his company is Greg’s motivation-- I think he honestly believes that a solution like lightning is better technically. He may be right, but I think it would be better if he considered that he might also be wrong, and allowed other solutions to be tried at the same time. Blockstream is a funny company, with very strong-willed people that have different opinions. It is possible they will never come to an agreement on how to raise the blocksize limit.
Q: I would like to ask your opinion on the current situation. It’s been two years, but a simple 2MB hard fork could not even be done. In Bitcoin land, two years are incredibly long. Isn’t this enough to believe this whole thing is a conspiracy? A: I don’t think it is a conspiracy, I think it is an honest difference of opinion on what is most important to do first, and a difference in opinion on risks and benefits of doing different things. Q: How can a multi-billion network with millions of users and investors be choked by a handful of people? How can this be called decentrilized and open-source software anymore? It is so hard to get a simple 2MB hard fork, but SegWig and Lighting Network with thousands of lines of code change can be pushed through so fast. Is this normal? It is what you do to define if you are a good man, not what you say. A: I still believe good engineers will work around whatever unnecessary barriers are put in their way-- but it might take longer, and the results will not be as elegant as I would prefer. The risk is that people will not be patient and will switch to something else; the recent rapid rise in developer interest and price of Ethereum should be a warning. Q: The problem now is that everybody knows Classic is better, however, Core team has controlled the mining pools using their powers and polical approaches. This made them controll the vast majority of the hashpower, no matter what others propose. In addition, Chinese miners have little communication with the community, and do not care about the developement of the system. Very few of them knows what is going on in the Bitcoin land. They almost handed over their own power to the mining pool, so as long as Core controls the pools, Core controls the whole Bitcoin, no matter how good your Classic is. Under this circumstance, what is your plan? A: Encourage alternatives to Core. If they work better (if they are faster or do more) then Core will either be replaced or will have to become better itself. I am happy to see innovations happening in projects like Bitcoin Unlimited, for example. And just this week I see that Matt Corallo will be working on bringing an optmized protocol for relaying blocks into Core; perhaps that was the plan all along, or perhaps the “extreme thin blocks” work in Bitcoin Unlimited is making that a higher priority. In any case, competition is healthy. Q: From this scaling debate, do you think there is a huge problem with Bitcoin development? Does there exsit development centrilization? Does this situation need improvment? For example, estabilish a fund from Bitcoin as a fundation. It can be used for hiring developers and maintainers, so that we can solve the development issue once and for all. A: I think the Core project spends too much time thinking about small probability technical risks (like “rogue miners” who create hard-to-validate blocks or try to send invalid blocks to SPV wallets) and not enough time thinking about much larger non-technical risks. And I think the Core project suffers from the common open source software problem of “developers developing for developers.” The projects that get worked on are the technically interesting projects-- exciting new features (like the lightning network), and not improving the basic old features (like improving network performance or doing more code review and testing). I think the situation is improving, with businesses investing more in development (but perhaps not in the Core project, because the culture of that project has become much less focused on short-term business needs and more on long-term exciting new features). I am skeptical that crowd-funding software development can work well; if I look at other successful open source software projects, they are usually funded by companies, not individuals.
You are one of the most-repected person in Bitcoin world, I won’t miss the chance to ask some questions. First of all, I am a Classic supporter. I strongly believe that on-chain transcations should not be restrained artificially. Even if there are transcations that are willing to go through Lighting Network in the future, it should be because of a free market, not because of artificial restrication. Here are some of my questions: Q: 1) For the past two years, you’ve been proposing to Core to scale Bitcoin. In the early days of the discussion, Core devs did agree that the blocksize should be raised. What do you think is the major reason for Core to stall scaling. Does there exist conflict of interest between Blockstream and scaling? A: 1) There might be unconscious bias, but I think there is just a difference of opinion on priorities and timing. Q: 2) One of the reason for the Chinese to refuse Classic is that Classic dev team is not technically capable enough for future Bitcoin development. I also noticed that Classic does have a less frequent code release compared to Core. In your opinion, is there any solution to these problems? Have you ever thought to invite capable Chinese programers to join Classic dev team? A: 2) The great thing about open source software is if you don’t think the development team is good enough (or if you think they are working on the wrong things) you can take the software and hire a better team to improve it. Classic is a simple 2MB patch on top of Core, so it is intentional that there are not a lot of releases of Classic. The priority for Classic right now is to do things that make working on Classic better for developers than working on Core, with the goal of attracting more developers. You can expect to see some results in the next month or two. I invite capable programmers from anywhere, including China, to help any of the teams working on open source Bitcoin software, whether that is Classic or Core or Unlimited or bitcore or btcd or ckpool or p2pool or bitcoinj. Q: 3) Another reason for some of the Chinese not supporting Classic is that bigger blocks are more vulnerable to spam attacks. (However, I do think that smaller blocks are more vlunerable to spam attack, because smaller amount of money is needed to choke the blockchain.) What’s our opinion on this? A: 3) The best response to a transaction spam attack is for the network to reject transactions that pay too little fees but to simply absorb any “spam” that is paying as much fees as regular transactions. The goal for a transaction spammer is to disrupt the network; if there is room for extra transactions in blocks, then the network can just accept the spam (“thank you for the extra fees!”) and continue as if nothing out of the ordinary happened. Nothing annoys a spammer more than a network that just absorbs the extra transactions with no harmful effects. Q: 4) According to your understanding on lighting network and sidechains,if most Bitcoin transactions goes throught lighting network or sidechains, it possible that the fees paid on the these network cannot reach the main-chain miners, which leaves miners starving. If yes, how much percent do you think will be given to miners. A: 4) I don’t know, it will depend on how often lightning network channels are opened and closed, and that depends on how people choose to use lightning. Moving transactions off the main chain and on to the lightning network should mean less fees for miners, more for lightning network hubs. Hopefully it will also mean lower fees for users, which will make Bitcoin more popular, drive up the price, and make up for the lower transaction fees paid to miners. Q: 5) The concept of lighting network and sidechains have been out of one or two years already, when do you think they will be fully deployed. A: 5) Sidechains are already “fully deployed” (unless you mean the version of sidechains that doesn’t rely on some trusted gateways to move bitcoin on and off the sidechain, which won’t be fully deployed for at least a couple of years). I haven’t seen any reports of how successful they have been. I think Lightning will take longer than people estimate. Seven months ago Adam Back said that the lightning network might be ready “as soon as six months from now” … but I would be surprised if there was a robust, ready-for-everybody-to-use lightning-capable wallet before 2018. Q: 6)Regarding the hard fork, Core team has assumed that it will cause a chain-split. (Chinese miners are very intimitated by this assumption, I think this is the major reason why most of the Chinese mining pools are not switching to Classic). Do you think Bitcoin will have a chain-split? A: 6) No, there will not be a chain split. I have not talked to a single mining pool operator, miner, exchange, or major bitcoin business who would be willing to mine a minority branch of the chain or accept bitcoins from a minority branch of the main chain. Q: 7) From your point of view, do you think there is more Classic supporters or Core supporters in the U.S.? A: 7) All of the online opinion pools that have been done show that a majority of people worldwide support raising the block size limit.
Q: Which is more in line with the Satoshi’s original roadmap, Bitcoin Classic or Bitcoin Core? How to make mining pools support and adopt Bitcoin Classic? A: Bitcoin Classic is more in line with Satoshi’s original roadmap. We can’t make the mining pools do anything they don’t want to do, but they are run by smart people who will do what they think is best for their businesses and Bitcoin.
Q: Do you have any solution for mining centralization? What do you think about the hard fork of changing mining algorithms? A: I have a lot of thoughts on mining centralization; it would probably take ten or twenty pages to write them all down. I am much less worried about mining centralization than most of the other developers, because Satoshi designed Bitcoin so miners make the most profit when they do what is best for Bitcoin. I have also seen how quickly mining pools come and go; people were worried that the DeepBit mining pool would become too big, then it was GHash.io… And if a centralized mining pool does become too big and does something bad, the simplest solution is for businesses or people to get together and create or fund a competitor. Some of the big Bitcoin exchanges have been seriously considering doing exactly that to support raising the block size limit, and that is exactly the way the system is supposed to work-- if you don’t like what the miners are doing, then compete with them! I think changing the mining algorithm is a complicated solution to a simple problem, and is not necessary.
Q: Last time you came to China, you said you want to "make a different". I know that in USA the opposition political party often hold this concept, in order to prevent the other party being totally dominant. Bitcoin is born with a deep "make a different" nature inside. But in Chinese culture, it is often interpreted as split “just for the sake of splitting”, can you speak your mind on what is your meaning of "make a different"? A: I started my career in Silicon Valley, where there is a lot of competition but also a lot of cooperation. The most successful companies find a way to be different than their competitors; it is not a coincidence that perhaps the most successful company in the world (Apple Computer) had the slogan “think different.” As Bitcoin gets bigger (and I think we all agree we want Bitcoin to get bigger!) it is natural for it to split and specialize; we have already seen that happening, with lots of choices for different wallets, different exchanges, different mining chips, different mining pool software.
Q: 1) The development of XT and Classic confirmed my thoughts that it is nearly impossible to use a new version of bitcoin to replace the current bitcoin Core controlled by Blockstream. I think we will have to live with the power of Blockstream for a sufficient long time. It means we will see the deployment of SegWit and Lighting network. If it really comes to that point, what will you do? Will you also leave like Mike Hearn? A: 1) With the development of Blockchain, bitcoin will grow bigger and bigger without any doubts, And also there will be more and more companies related to the bitcoin network. When it comes to money, there will be a lot of fights between these companies. Is it possible to form some kind of committee to avoid harmful fights between these companies and also the situation that a single company controlling the direction of the bitcoin development? Is there any one doing this kind of job right now? Q: 2) My final question would be, do you really think it is possible that we can have a decentralized currency? Learning from the history, it seems like every thing will become centralized as long as it involves human. Do you have any picture for a decentralized currency or even a society? Thanks. A: 2) I think you might be surprised at what most people are running a year or three from now. Perhaps it will be a future version of Bitcoin Core, but I think there is a very good chance another project will be more successful. I remember when “everybody” was running Internet Explorer or Firefox, and people thought Google was crazy to think that Chrome would ever be a popular web browser. It took four years for Chrome to become the most popular web browser. In any case, I plan on working on Bitcoin related projects for at least another few years. Eventually it will become boring or I will decide I need to take a couple of years of and think about what I want to do next. As for fights between companies: there are always fights between companies, in every technology. There are organizations like the IETF (Internet Engineering Task Force) that try to create committees so engineers at companies can spend more time cooperating and less time fighting; I’m told by people who participate in IETF meetings that they are usually helpful and create useful standards more often than not. Finally, yes, I do think we can have a “decentralized-enough” currency. A currency that might be controlled at particular times by a small set of people or companies, but that gives everybody else the ability to take control if those people or businesses misbehave.
Hi Gavin, I have some questions: Q: 1) I noticed there are some new names added to the classic team list. Most people here only know you and Jeff. Can you briefly introduce some others to the Chinese community? A: 1) Tom Zander has been acting as lead developer, and is an experienced C++ developer who worked previously on the Qt and Debian open source projects. Pedro Pinheiro is on loan from Blockchain.info, and has mostly worked on continuous integration and testing for Classic. Jon Rumion joined recently, and has been working on things that will make life for developers more pleasant (I don’t want to be more specific, I don’t want to announce things before they are finished in case they don’t work out). Jeff has been very busy starting up Bloq, so he hasn’t been very active with Classic recently. I’ve also been very busy traveling (Barbados, Idaho, London and a very quick trip to Beijing) so haven’t been writing much code recently. Q: 2) if bitcoin classic succeeded (>75% threshold), what role would you play in the team after the 2MB upgrade finished, as a leader, a code contributor, a consultant, or something else? A: 2)Contributor and consultant-- I am trying not to be leader of any software project right now, I want to leave that to other people who are better at managing and scheduling and recruiting and all of the other things that need to be done to lead a software project. Q: 3) if bitcoin classic end up failed to achieve mainstream adoption (<75% 2018), will you continue the endeavor of encouraging on-chain scaling and garden-style growth of bitcoin? A: 3) Yes. If BIP109 does not happen, I will still be pushing to get a good on-chain solution to happen as soon as possible. Q: 4) Have you encountered any threat in your life, because people would think you obviously have many bitcoins, like what happened to Hal Finney (RIP), or because some people have different ideas about what bitcoin's future should be? A: 4) No, I don’t think I have received any death threats. It upsets me that other people have. Somebody did threaten to release my and my wife’s social security numbers and other identity information if I did not pay them some bitcoins a couple of years ago. I didn’t pay, they did release our information, and that has been a little inconvenient at times. Q: 5) Roger Ver (Bitcoin Jesus) said bitcoin would worth thousands of dollars. Do you have similar thoughts? If not, what is your opinion on bitcoin price in future? A: 5) I learned long ago to give up trying to predict the price of stocks, currencies, or Bitcoin. I think the price of Bitcoin will be higher in ten years, but I might be wrong. Q: 6) You've been to China. What's your impression about the country, people, and the culture here? Thank you! A: 6) I had a very quick trip to Beijing a few weeks ago-- not nearly long enough to get a good impression of the country or the culture. I had just enough time to walk around a little bit one morning, past the Forbidden City and walk around Tianmen Square. There are a LOT of people in China, I think the line to go into the Chairman Mao Memorial Hall was the longest I have ever seen! Beijing reminded me a little bit of London, with an interesting mix of the very old with the very new. The next time I am in China I hope I can spend at least a few weeks and see much more of the country; I like to be in a place long enough so that I really can start to understand the people and cultures.
Q: Dear Gavin, How could I contact you, we have an excellent team and good plans. please confirm your linkedin. A: Best contact for me is [email protected] : but I get lots of email, please excuse me if your messages get lost in the flood. 15. satoshi Q: Gavin, you've been both core and classic code contributor. Are there any major differences between the two teams, concerning code testing (quality control) and the release process of new versions? A: Testing and release processes are the same; a release candidate is created and tested, and once sufficiently tested, a final release is created, cryptographically signed by several developers, and then made available for download. The development process for Classic will be a little bit different, with a ‘develop’ branch where code will be pulled more quickly and then either fixed or reverted based on how testing goes. The goal is to create a more developer-friendly process, with pull requests either accepted or rejected fairly quickly.
I am a bitcoin enthusiast and a coin holder. I thank you for your great contribution to bitcoin. Please allow me to state some of my views before asking:
I'm on board with classic
I support the vision to make bitcoin a powerful currency that could compete with Visa
I support segwit, so I'll endorse whichever version of bitcoin implementation that upgrades to segwit, regardless of block size.
I disagree with those who argue bitcoin main blockchain should be a settlement network with small blocks. My view is that on the main chain btc should function properly as a currency, as well as a network for settlement.
I'm against the deployment of LN on top of small block sized blockchain. Rather, it should be built on a chain with bigger blocks.
I also won’t agree with the deployment of many sidechains on top of small size block chain. Rather, those sidechains should be on chain with bigger blocks.
With that said, below are my questions: Q: 1) If bitcoin is developed following core's vision, and after the 2020 halving which cuts block reward down to 6.125BTC, do you think the block transaction fee at that time will exceed 3BTC? A: 1) If the block limit is not raised, then no, I don’t think transaction fees will be that high. Q: 2) If bitcoin is developed following classic's vision, and after the 2020 halving which cuts block reward down to 6.125BTC, do you think the block transaction fee at that time will exceed 3BTC? A: 2) Yes, the vision is lots of transactions, each paying a very small fee, adding up to a big total for the miners. Q: 3) If bitcoin is developed following core's vision, do you think POW would fail in future, because the mining industry might be accounted too low value compared with that of the bitcoin total market, so that big miners could threaten btc market and gain profit by shorting? *The questioner further explained his concern. Currently, its about ~1.1 billion CNY worth of mining facilities protecting ~42 billion CNY worth (6.5 Billion USD) of bitcoin market. The ratio is ~3%. If bitcoin market cap continues to grow and we adopt layered development plan, the mining portion may decrease, pushing the ratio go even down to <1%, meaning we are using very small money protecting an huge expensive system. For example, in 2020 if bitcoin market cap is ~100 billion CNY, someone may attempt to spend ~1 billion CNY bribe/manipulate miners to attack the network, thus making a great fortune by shorting bitcoin and destroying the ecosystem. A: 3) Very good question, I have asked that myself. I have asked people if they know if there have been other cases where people destroyed a company or a market to make money by shorting it -- as far as I know, that does not happen. Maybe because it is impossible to take a large short position and remain anonymous, so even if you were successful, you would be arrested for doing whatever you did to destroy the company or market (e.g. blow up a factory to destroy a company, or double-spend fraud to try to destroy Bitcoin). Q: 4) If bitcoin is developed following classic's vision, will the blocks become too big that kill decentralization? A: 4) No, if you look at how many transactions the typical Internet connection can support, and how many transactions even a smart phone can validate per second, we can support many more transactions today with the hardware and network connections we have now. And hardware and network connections are getting faster all the time. Q: 5) In theory, even if we scale bitcoin with just LN and sidechains, the main chain still needs blocks with size over 100M, in order to process the trading volume matching Visa's network. So does core have any on-chain scaling plan other than 2MB? Or Core does not plan to evolve bitcoin into something capable of challenging visa? A: 5) Some of the Core developer talk about a “flexcap” solution to the block size limit, but there is no specific proposal. I think it would be best to eliminate the limit all together. That sounds crazy, but the most successful Internet protocols have no hard upper limits (there is no hard limit to how large a web page may be, for example), and no protocol limit is true to Satoshi’s original design. Q: 6) If (the majority of) hash rate managed to switch to Classic in 2018, will the bitcoin community witness the deployment of LN in two years (~2018)? A: 6) The bottleneck with Lightning Network will be wallet support, not support down at the Bitcoin protocol level. So I don’t think the deployment schedule of LN will be affected much whether Classic is adopted or not. Q: 7) If (majority) hash rate upgraded to blocks with segwit features in 2017 as specified in core's roadmap, would classic propose plans to work on top of that (blocks with segwit)? Or insist developing simplified segwit blocks as described in classic's roadmap? A: 7) Classic will follow majority hash rate. It doesn’t make sense to do anything else. Q: 8) If most hash rate is still on core's side before 2018, will you be disappointed with bitcoin, and announce that bitcoin has failed like what Mike did, and sell all your stashed coins at some acceptable price? A: 8) No-- I have said that I think if the block size limit takes longer to resolve, that is bad for Bitcoin in the short term, but smart engineers will work around whatever road blocks you put in front of them. I see Bitcoin as a long-term project. Q: 9) If we have most hash rate switched to classic's side before 2018, what do you think will be the fate of Blockstream company? A: 9) I think Blockstream might lose some employees, but otherwise I don’t think it will matter much. They are still producing interesting technology that might become a successful business. Q: 10) If we have most hash rate still on core's side before 2018, what do you think will be the fate of Blockstream company? A: 10) I don’t think Blockstream’s fate depends on whether or not BIP109 is adopted. It depends much more on whether or not they find customers willing to pay for the technology that they are developing. Q: 11) If we have most hash rate still on core's side before 2018, what do you think will be the fate of companies that support classic, such as Coinbse, bitpay, and Blockchain.info? A: 11) We have already seen companies like Kraken support alternative currencies (Kraken supports Litecoin and Ether); if there is no on-chain scaling solution accepted by the network, I think we will see more companies “hedging their bets” by supporting other currencies that have a simpler road map for supporting more transactions. Q: 12) If we have most hash rate switched to classic's side before 2018, will that hinder the development of sidechain tech? What will happen to companies like Rockroot(Rootstock?) ? A: 12) No, I think the best use of sidechains is for things that might be too risky for the main network (like Rootstock) or are narrowly focused on a small number of Bitcoin users. I don’t think hash rate supporting Classic will have any effect on that. Q: 13) Between the two versions of bitcoin client, which one is more conducive to mining industry, classic or core? A: 13) I have been working to make Classic better for the mining industry, but right now they are almost identical so it would be dishonest to say one is significantly better than the other.
Q: Gavin, can you describe what was in your mind when you first learned bitcoin? A: I was skeptical that it could actually work! I had to read everything I could about it, and then read the source code before I started to think that maybe it could actually be successful and was not a scam.
I'm working on updating p2pool to be compatible with segwit. Since litecoin also implements segwit, p2pool litecoin miners will also need to upgrade. I was able to test it myself on the bitcoin network but I do not own any scrypt miners and would need some help. If you are willing to test my PR you can do so either on mainnet to check if there are any incompatible changes before activation or on testnet to test the segwit update. Testing on testnet can be done after segwit activates on it and modifying the litecoin network's files like I did for the bitcoin testnet.
Abstract The term near or weak blocks describes Bitcoin blocks whose PoW does not meet the required target difficulty to be considered valid under the regular consensus rules of the protocol. Near blocks are generally associated with protocol improvement proposals striving towards shorter transaction confirmation times. Existing proposals assume miners will act rationally based solely on intrinsic incentives arising from the adoption of these changes, such as earlier detection of blockchain forks. In this paper we present Flux, a protocol extension for proof-of-work blockchains that leverages on near blocks, a new block reward distribution mechanism, and an improved branch selection policy to incentivize honest participation of miners. Our protocol reduces mining variance, improves the responsiveness of the underlying blockchain in terms of transaction processing, and can be deployed without conflicting modifications to the underlying base protocol as a velvet fork. 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I Quit My Job, Jotted Down Some Ideas, Hired a Lawyer... And Now, I'm Here to Ask Reddit - Would Any Miners or Crypto-Currency Enthusiasts Be Interested In Supporting or Opening A Franchise? More Details In Text
First, I want to thank the /BitcoinMining, /LitecoinMining, /scryptmining, and any of the other mining reddits that I participated or lurked in! If it wasn't for all of the the information I gathered here, I wouldn't have been able to make my numbers and formulas to make all of this happen! I figured it would be safe to post this in /Bitcoin.. since so many folks may still have this in their feed with other cryptos... and I really didn't want to do a lot of "x/post from ... " in other reddits. =) Several months ago, I left my job to spend more time with my family, since my mining hardware was making more than my salary, and my office was a 2-hour commute (one way) from home. It. Was. AWESOME!!! I was taking the kids to school and picking them up, again! I finally got to spend some lunches with my wife! DISC GOLF!! Now, I've never been one to "rest on my laurels" for too long. I was really getting bored around the house after a week or two. There's only so much disc-golf to play when all of your friends are 9-5ers. I knew I wanted to do something more with Bitcoin and cryptocurrency... but I was trying to figure out what would be a "good idea". I had a few plans... website to sell/eBay GPU rigs... B2B service to encourage crypto use at local businesses... but nothing really "jumped", or got me really excited. Another friend of mine was just opening an upscale vapor (e-cig) shop, Vape South. I've known him and his significant other for 8-9 years, and had worked a retail store with him, before... so I thought "Why not?". I love working with customers, face-to-face... sales, retail, marketing... it would be fun! And, it has been! T and K have been great, and it's been a blast helping them get their own business and dreams off the ground and running! It's always awesome to see people's efforts and honesty do a big "karma blast", and reward them with a profitable business and great clientèle. It's neat to see everyone who's interested in vaping, and talk to them about "how they got interested in it", help them find better hardware, and spreading info about healthier smoking alternatives... see people drop smoking all together (hint, hint) ... and that's when it hit me... THIS IS WHAT CRYPTO-CURRENCY NEEDS So, I started piecing together this concept of MeetSpace Crypto. I want to provide a cookie-cutter, franchise-model retail opportunity for folks who are excited about crypto-currencies, and want to maintain a local venue for reddit/Bitcoin/(insert Alt-Coin)/mining/trading meetups (think a Starbucks-meets-B&N-comfy-meeting-space), while selling the mining equipment that is run in-house. Look... CoinDesk just published an article about 'The Five Biggest Threats Facing Bitcoin'. I honestly think that MeetSpace Crypto could help with a lot of this!
The centralization of bitcoin
If we can put mining hardware in more peoples hands, and promote p2pool mining of ALL crypto-currencies, it will benefit cryptos all around.
THIS! We need happy, smiling "Crypto Faces" out there! In meat-space!! I want DOGE-heads in their NASCAR stuff, and folks that have several "I Love Bitcoin" shirts in their closets working at these stores... who ARE excited about crypto-currencies already, earning a paycheck to be excited about cryptos! All of that could really help with -
Local business owners could also have a chance to come by and see how easy some of these systems (Coinbase, BitPay, CoinKite) are to use and integrate. Also.. I've already had 4 people want to buy BTC from me, in person, in the past 2 weeks... 3 on LocalBitcoins.com, and 1 with Mycelium's new "Buy/Sell" feature. One guy drove from Mississippi (2 & 1/2 hours), to buy 1.5 BTC from me! It would be really awesome to provide a "safe area" to meet if this gets bigger, this summer. The Fed actually said that Crypto-currencies could "be a boon" for the economy, recently. I think this could be a chance to prove them right on a positive note, and provide some jobs and opportunities for crypto-enthusiasts! I've already thrown my own money into the name and lawyers and all that stuff to get started. I'm going to have a Bitcoinstarter and Kickstarter event in a few weeks. If you're interested in helping spread some crypto to "Main Street", let me know! TL;DR Please, check out MeetSpace Crypto, and let me know what you think! Thank you, reddit! Edits for formatting
Hello cryptocurrency lovers! Welcome to Coin-a-Year, the laziest series yet in the Coin-a-Day publishing empire. This year's coin is Nyancoin (NYAN). I originally covered Nyancoin in an article here in /cryptocurrency published January 4th, 2015. Without (much) further ado, I'm going to include the original report next, unmodified. This is unlike my Coin-a-Week series, where I use strikeout and update in-text. Because this is going to be a longer update, I'll just make all further comments and updates below, just realize that all information below is as of January 4th, 2015 and thus is more than a year out of date as of posting now, at the end of February 2016. Since I use horizontal rules as internal dividers in the original post, I'll use a double horizontal rule to divide the original text from this prelude and the following update. Coin-a-Day Jan 4th Welcome to the fourth installment of Coin-a-Day! To see convenient links to the introduction and the previous entries, please see /coinaday. Today's coin is Nyancoin (NYAN). Summary • ~173.6 million available currently ; 337 million limit  • All-time high: ~0.000024 BTC on February 16, 2014  • Current price: ~3 satoshi  • Current market cap: ~$1,275  • Block rate (average): 1 minute   • Transaction rate: ~25? / last 24 hours; estimated $3-4  • Transaction limit: 70 / second  • Transaction cost: 0 for most transactions  • Rich list: ???  • Exchanges: Cryptsy  • Processing method: Mining  • Distribution method: proof-of-work block rewards and 1% premine for "bounties, giveaways & dev support"   • Community: Comatose  • Code/development: https://github.com/nyancoin-release/nyancoin ; there hasn't been a released code change in 10 months. The new developer has talked about some changes, but has not made a new release. He has given advice about how to keep the network running and operate the client.  • Innovation or special feature: First officially licensed cryptocurrency (from Nyancat) ; "zombie"-coin  Description / Community: So you're probably wondering why in the world we're talking about a coin which has been declared dead and already written off. I actually first selected this coin to illustrate a "deadcoin", but the more I dug into it, the more I was amazed at the shambles I discovered. I am combining the description and community sections for this coin, because the community (or lack thereof) is the central issue for Nyancoin. Substantially all, if not literally all, of the original infrastructure is gone. From the announcement post, the original website has expired. The nyan.cat site itself survives, but has no reference to the coin. The github repo remains, but then there was never much changed from the bitcoin/litecoin original. In fact, the COPYING file doesn't even list "Nyancoin Developers". None of the original nodes seem to be running anymore. @Nyan_Coin hasn't tweeted since July 6th. And that was just to announce posting an admittedly cute picture to facebook which makes a claim for a future which seems never to have developed. Of the original 15 pools, I think all are dead except p2pool, for which at least one node still supports NYAN. The original blockchain explorer, nyancha.in, is still running. The faucet is dead or broken. The original exchanges no longer list it (two of the three having died; SwissCEX having ended its trading as of the first of this year). And so forth. And yet:
[Of course, that scene finishes with knocking out the "recovering" patient so he can be taken away...not to mention the absurdity of including Monty Python in a financial article, but moving right along.] There is still just enough left to Nyancoin to keep it twitching, even if it is on life-support. Whether it's an individual node or whether it's a pool, there are blocks being produced at a steady rate as intended. Transactions are being processed. There is still a market. There is still a block explorer. And there is a dev. It is like a case study in the absolute minimum necessary to keep a coin alive. The most likely outcome is almost certainly a final collapse when one critical piece or another of the infrastructure goes away. And yet in the meantime, a person can own a million NYAN for $8 , and then move this coin quickly and easy, albeit with no particular external demand. It's like the world's most hyped testnet. I think this case presents an interesting example of what happens to an altcoin when its initial support dries up. NYAN coin is more fortunate than some, actually, as there are some where there are no longer any nodes running it nor the original announcement thread (in fact, there was actually a second Nyancoin launched around the same time. But it died hard and its original announcement thread was deleted and at this point I would have no idea how to access it; so "Nyancoin" thus illustrates how hard a coin can die (Nyancoin 2) as well as how it can hang around despite being proclaimed dead, with far more justification behind that pronouncement than there has been for bitcoin (NYAN) ). Footnotes  http://coinmarketcap.com/currencies/nyancoin/  https://bitcointalk.org/index.php?topic=402085.0 Regarding the premine, it's unclear to me where this money is now, since the original poster hasn't been active on BCT since May and the original site is down. However, given that it's only 1%, and about $25 in value right now, there seem to be more significant concerns for NYAN.  http://nyancha.in/chain/Nyancoin - Nyan blockchain explorer; blocks are somewhat inconsistent but somewhere around the 1 minute average  There doesn't seem to be anything automatically doing these stats, so I did visual inspection on about 1500 blocks (about one day) excluding the block generation reward (~250k/day). Most blocks are otherwise empty. I counted about 24 transactions or so scrolling through, with an outlier around 300k NYAN and another around 100k NYAN. In total, about 500k NYAN, excluding the block rewards. This is very approximately $3-4.  Nyancoin is a basically unmodified, slightly out-of-date bitcoin as far as code goes, and ignoring the change in block rate and total coin supply, as well as the difficulty retarget after every block. So for purposes of estimating maximum possible transaction throughput, I start with bitcoin's estimated 7 transactions per second, and multiply by 10 for having a block on average every minute rather than every 10 minutes. In any event, this limit is not likely to be reached in the foreseeable future.  Like bitcoin, transaction fees appear to be optional in Nyancoin. Unlike bitcoin, there is almost no transaction volume, and coins tend to sit for a relatively long time before being moved. So zero-fee transactions appear to be the norm from looking at a couple transactions on the block explorer.  I couldn't find one. See the disclosure section of this article: your humble correspondent is likely represented in some way on a top 100 if one were to be made or if one exists, despite not holding it directly, depending on how the exchange holds it.  I could not find any other exchanges still listing Nyancoin. SwissCex appears to have disabled it as of a couple days ago. Cryptsy has a notice that the NYAN/BTC market will be closing, but its NYAN/LTC market appears strong.  Essentially all of the original sites, pools, faucets, etc. are dead and there has been very little to replace it. There is basically a single node, or perhaps a very few, which are running the blockchain. However, there is a developer still trying to hold things together, maxvall_dev, maxvall on BCT. He is the last hope for the NYAN.  https://bitcointalk.org/index.php?topic=597877.0 This is the thread where maxvall took over as dev, and it also discusses switching to PoS, which hasn't happened as far as I know.  "zombie"-coin: Not to be confused with ZMB (my god, does it ever end?). This is my term to describe a coin which is "undead": by rights it should be dead. And yet it's still walking around and acting like it's alive. What is it? What's going on? It's quite debatable whether this gives it any special value, but I find it an interesting state, and it's why this was chosen for early coverage. There are plenty of actually popular and successful coins, and we will go onto covering more normal selections; we're looking for variety rather than repetition. But I think this is an interesting example for what can go wrong, and yet in the midst of that, how little it takes for a coin to survive. In fact, it's almost like an alternate history bitcoin to me; this shows the concept that "it was run on one computer before; it can be run on one computer again" to some extent. And there are even some strange pragmatic benefits as well, like having no competition for getting a transaction into a block and thus zero transaction fees.  And, in fact, the author chose to do so today, spending about 0.03 BTC for about 1 million NYAN. Additional Reading • /nyancoins - Like NYAN: mostly dead, but not quite • http://nyan-coin.org/ - new official website • BCT thread listing nodes, xpool (p2pool), for mining information. • americanpegasus predicting in February that NYAN will hit $1; always an entertaining read Giveaway Instead of a challenge today, since NYAN has enough challenges, I decided I would give away 10,000 NYAN to at least the first ten people who ask for it. This still remains at my discretion, but honestly, if you really want, say, 50,000 NYAN and create four new accounts to do so, I'll probably be too amused to say no. I don't expect to get ten requests. If I get more, I'll probably still fulfill them, but as with everything else, this is left to my whim. Donations and Disclosure Okay, this is an important one today because of the tiny market here. I actually hold less USD value in NYAN than in BTC, DOGE, and PPC (although my value in PPC might be about equivalent actually), but I hold more of the total market in NYAN than any of those three. And I'll probably be buying more. So I have a conflict of interest in writing this article. I am not providing financial advice and I do not make any recommendations of any sort on any matters. Make your own decisions; do your own research. Please, I do not want to hear about anyone doing anything "on my advice." I am not offering advice. I personally hold just over 1 million NYAN on Cryptsy right now. Perhaps it would be better if I didn't write any articles about anything I were invested inspeculating on, but I started this series for my own education to further my speculation, so unfortunately, dear reader, your needs come second to my own. tanstaafl; you get what you pay for, and I'm giving you my thoughts. If by some strange quirk of fate you actually own NYAN and enjoyed this article and wished to donate some to me, K7Ho9HghBF6xWwS6JsepE6RAEPyAXbsQCV is mine (first non-empty account I've posted; transferred 1000 NYAN into here earlier from Cryptsy to test that the network and my wallet were actually working). Thank you all for reading and commenting! I've already learned a lot from this process and I look forward to more! Upcoming coins: • January 5th: Nxt • January 6th: Darkcoin • January 7th: Namecoin I'll use alphabetic labeling for footnotes in the updates to avoid any confusion with the footnotes in the original. For simplicity, unchanged items, like the 337 million limit and the 1 minute will not be mentioned, and we'll start with the summary changes. Updates: Summary
Community: We're not quite dead yet; in fact, I think we're getting better! [f]
Code/Development: I have an early draft of NYAN2, but I'm about six months past my initial goal for having it available to use. Life/work/lack of build machine/procrastination. NYAN2 will be a rebase onto a modern LTC codebase which will soft fork to fix a current vulnerability to a fork bug. For now, the network still runs on the same code that it did when I wrote the first article.
Discussion I'm going to consider the community first, since I pointed it out as the weakness and central topic in the last one, then talk about the technical situation briefly, and then review the financial results. The community has been excellent, if I do say so myself. We've got working infrastructure going thanks to the contributions of many Nekonauts (see [f]). Some original Nekonauts have returned or at least popped in from time to time, and new ones like myself have found Nyancoin (I would say given what I wrote in the original, I was still a skeptic of it at that point. Not that skeptics can't be Nekonauts, but I think I'd put my conversion to the cult of nyan shortly after writing that, even though I was already a nillionaire then for the heck of it.) While I do look forward to seeing the community continue to grow in future years and consider that important, I don't think the community is our weakest point any longer; I think it's now our strongest point. I've tried to encourage the community's revival as best I could, including giving away tens of nillions in total, and lots of long rambling articles on my views on ethics and philosophy and frankly it's worked better than I would've really expected (or at least it has coincided with an effective recovery of the community). The community also helped me through at least a couple hard times personally in there as well. The technical situation in Nyancoin is mostly unchanged but slightly improved, although with two additional known vulnerabilities. It's unchanged in that it's the same client. It's improved in that we have an active nyanchain explorer host (nyan.space), and we have a public draft of a plan for a soft forking security fix update in the near future (hopefully by the end of March (although I've slipped these deadlines before and may well miss March for release by a bit, I do think I'm inching closer now and then)). The most serious vulnerability is to forking. This is the bug which hit Peercoin if I recall correctly. NYAN2 is intended to solve this through its soft fork from the LTC fix upstream (from the BTC fix upstream). In the meantime, we've been lucky we haven't been attacked. The tiny marketcap probably helps with not being a particularly attractive attack target. We're not exactly about to pay ransom to move faucet outputs. But that's no excuse; we want this fixed and should have it finally done "soon" (tm). The less serious vulnerability is to a time warp attack in the difficulty function (Kimoto Gravity Well), which relates to general weaknesses it has and issues we've had with large gaps in the block chain because of spikes in the difficulty function causing it to be unprofitable and driving away most of the hash, and then low difficulty and price rise making it attractive to more hash, creating a spike and causing it again. While this is irritating, the chain still works, even if there are fits and starts at times. An important part of the reason I can get away with this is because there is at least one Nekonaut-supporting miner, CartmanSPC, who rescues us from time to time, and did so during the course of this article being written. We have a bunch of pools, but sometimes the hash just isn't there to get us unstuck when the difficulty goes high enough. Another part of the reason I consider it not an especially serious issue is because there's a workaround which works for me (classic bad developer logic): I use a large transaction fee (generally 337 NYAN, although I might have halved it after the most recent halving, I'll probably use 337 again) on my personal wallet by default. If necessary, I use a couple of them. It can make NYAN profitable to mine again despite the higher difficulty and "unstick" the chain. The difficulty function can go back down again in the next block if the gap has been long enough, so that can be enough to keep it going again for a while (although it can also get stuck again irritatingly fast at times). A fix for this will be putting in a better difficulty function for NYAN3, which will require a hard fork. This is tentatively scheduled for feature freeze around the middle of this year, coding to follow, activation sometime early 2017. Financial has been our most disappointing performance. A graph of the 1 year performance right now on coinmarketcap looks pretty sad, showing our fall from a little over 60 satoshi down to around 7 satoshi now. We rose too high, too fast, and I didn't stick with the safe high paying job like a sane person. Instead I hit the road, went to jail, and worked minimum wage. That doesn't sound like a sentence from a cryptocurrency financial review, does it? But the performance of NYAN since the article has been the story of my personal finances, which is the story of my life since then. So, autobiographical coinaday interlude, trying to keep it generally to the most salient points. Well, in 2014 I had been on my way home to Minnesota from California when I was pulled over leaving Eureka, Nevada for speeding (got sloppy and went 45 approaching the 45 sign and thus technically still in the 35; bored cop seeing out-of-state plates). My vehicle reeked of weed, what with having been in Mendocino County previously with no intention of traveling out of the county much less state anytime soon but family emergency brought me back, and the end result was a citation for possession of cannabis and paraphernalia along with the speeding. Fast forward to the beginning of 2015, I'm settled into a good software position and start looking more at cryptocurrency in my spare time. I write the coin-a-day series for a bit and then got annoyed and quit after a while when trying to do one a day on top of an actual job was too much for me (along with some annoyance over criticism; I can be rather thin-skinned at times). But I had gotten interested in Nyancoin, and started buying it up more and more with extra money I was making. And then comes the crash. I had to stop putting as much in as I realized that where I was living and what I was working on wasn't going to work out for me and I needed to figure something else out. So, as I seem wont to do, I went on a roadtrip. I quit my job. And I went back for the court date for my citations and refused to pay, instead spending 10 days in jail rather than pay ~$1400 (I actually had the money in cash available to me if I chose to pay as a backup if I chickened out, but the judge annoyed me enough that I really preferred to be jailed instead of paying, as stupid as that sounds since I'm quite sure the judge didn't care in the least one way or another). After that, I went back to roadtrip lifestyle for a while. It was a nice period. A lot of beautiful scenery; a lot of reading. Eventually, I busted up my car pretty badly...a couple times actually, the second time for good. Fast forwarding through the rest of the year, I worked a couple minimum wage jobs to pay bills and avoid cubicle life and kill some time until I figured out what I was going to do next. Just recently I quit as delivery boy after getting a speeding ticket (I swear, I'm not as horrible of a driver as this makes me sounds, although I have had a bad tendency to speed in the past, which I really have curbed to almost nothing; but I'm clearly not good enough) and am currently writing a Coin-a-Year article with a friend's incentive and applying to do documentation and development with the Nu project. Okay, so what did any of that have to do with NYAN? Well, it's the mess of a life that has led to the fall of the price from 60 satoshi to 7 satoshi. If instead my life history for the time since the article had been simply "I was happily employed writing software", then I don't believe we would have dropped below 20 satoshi. It's easy to see in hindsight. If anyone can lend me a time machine, I'm sure I can get some condensed instructions which should improve performance significantly. Otherwise, just going to have more chalked up for the "character building" tally. So, lessons learned if you are the major buy support for your coin: you need long-term reserves. Whatever you put in bids can be taken out in a moment by a dump for no apparent reason. This is particularly true if you may be quitting your cushy, high-paying job and wandering around without income for an extended period of time. Rather obvious, but hey, maybe someone else can learn from my mistakes. If I'd been bidding as cautiously as I am now from the beginning, I think the price would probably be somewhere from 10-20 satoshi now instead of around 7 satoshi. It's especially unfortunate given that I wanted to be able to demonstrate the more consistent growth possible building a stable store of value, as opposed to the pump and dumps common in altcoins. And instead we had a pump-and-dump looking graph ourselves after I bid up higher than I was able to sustain, and a large (10+ nillion) instadump crashed the market all the way back down to 1 satoshi momentarily. We've had a few large (2+ nillion) dumps since, but nothing that large. We haven't generally had that large of bids though either. It's hard to know when I've exhausted the supply at a price level, when it sometimes waits for a couple weeks or even more and then fills all the bids at once. But I want to maximize the minimum price paid because I think that's important for building confidence in a store of value long-term, which is one of my core goals for NYAN. At the same time, we're still up from the lowest parts of the floor and where I found it. Since I own about 30% [g], the very cheapest supply has been taken off the market. I plan to keep on buying up "cheap NYAN" as much as I can. I've bought up to 60 satoshi before, I'll probably buy up that high this time around. I've got a token 100,000 NYAN ask at 300 satoshi; I hope never to sell lower. Conclusions Now I try to wrap it all together as if I saw this all coming and am the wise expert, despite having had about 90% drop in price in the last year after bidding too high. My original concept was taking the "minimum viable coin" and reviving it to a powerhouse as a textbook example in how to do it. Part of my core concept in this is the arbitrariness of value: throughout history, humans have chosen any number of things as a store of value for the time: salt, large rocks, certain metals, disks, marked sticks, and so forth. While there has generally been a certain logic in the choice, in that there is a locally restricted supply in one way or another, and so forth, from the perspective of other centuries or cultures the choices can seem quite strange. Growing up, I was always struck by how strange the notion of salt being limited and valuable seemed in a world where people were trying to reduce intake and large amounts could be bought for trivial sums. And yet, a key nutrient necessary for life fundamentally makes more sense as being valuable than notched sticks or printed paper or a piece of plastic with some encoded information. Humans have perpetually come up with stranger and stranger ways of storing and transferring value. Each new step, as always, comes with its own disadvantages and, frankly, has generally appeared nonsensical at best and fraudulent at worst to the status quo. Which doesn't mean that each new attempt is valuable. The gold bugs always like to point out that every fiat currency ultimately returns to its true value of zero. And the skeptics of cryptocurrency argue that all cryptocurrencies will eventually return to their true value of zero. It's certainly possible. And it's possible the USD will hyperinflate someday. I tend to try the moderate view for a plausible guess of the future. By that type of logic, I would guess that over the course of decades, USD will in general lose value, and cryptocurrency will tend to slowly gain value. That might not seem the moderate view, but USD not losing value over decades would be truly shocking. And hyperinflation has been predicted since the USD went off the gold standard, or before. So some amount of inflation less than hyperinflation seems like the safe guess (but then, the Titanic arriving would also have seemed like the safe guess to me). And with cryptocurrency, I think it's clear by now the technology will continue to survive. So my first question is with what overall value as a market? It could go down, of course, but that seems unlikely in an already small, young market. Even if all the current crop die off and are replaced, whatever cryptocurrencies are around should be able to do better than a handful of billion in market cap in my view. I believe that cryptocurrency has a bright future ahead of it. The best coins should ultimately survive and thrive. But I've been wrong on most of my major calls so far, like for instance when I thought BTC was over-priced around $5-$10. I think Nyancoin can have an important role to play in the future of cryptocurrency in the years and decades to come, but it's a massively speculative long-shot. See also Nyancoin risks document. But like Linus Torvalds' autobiography, I try to keep "Just for Fun" as a core motto and principle. It's makes for a good hobby project because there will always be more to work on, with a core community motto of TO INFINITY AND BEYOND! Disclaimers / Sponsorship: As I said before:
I am not providing financial advice and I do not make any recommendations of any sort on any matters. Make your own decisions; do your own research. Please, I do not want to hear about anyone doing anything "on my advice." I am not offering advice.
And I'll reiterate that I own about 30% [g] of the current supply of NYAN, which makes me by definition maximally biased. Also, I'm not sure what's up with the address from the first post. It doesn't show up in my current wallet as a recognized address. So, anyhow, don't send there. :-) If you'd like to donate, please consider sponsoring a coin-a-day or coin-a-week article. This is the first sponsored article. This Coin-a-Year article has been brought to you by spydud22 's generous patronage. I'd been meaning to do a Coin-a-Week article on Nyancoin for a while, but between wanting to "wait until the price recovered a bit" and general procrastination, then it seemed like it would make a good Coin-a-Year article, and then I wanted to wait until the price recovered a bit more...anyhow, so thank you spydud22, for causing me to finally do this. :-) Footnotes
[a] nyan.space/chain/Nyancoin ; as of block 1091430, 263738786.71890615 NYAN outstanding. This is slightly over 50% more than the last report, which is what we would expect, since it had existed for about a year then, and has approximately annual halvings. The first year generated about 50% of total supply; the second year generated about 25% of total supply. We should expect in a year to have about 17% (one-sixth) more than we have now.
[b] https://www.cryptopia.co.nz/Exchange?market=NYAN_BTC ; this is the only market reflected in coinmarketcap and it is the primary one on which I trade. Cryptopia also has other base pairs which operate at significantly higher spreads (lower bids; higher asks) and have minimal volume. In the time since the last report, NYAN has traded as high as 60 satoshi (and briefly a little higher at times), but over the last almost twelve months since a peak about a year ago, the price has been generally declining overall, as a gross oversimplification of a lot of movements. This has been an effect of me not being able to keep buying as much and there being large dumps I wasn't expecting from time-to-time. Now I'm taking the approach of building large (one or more nillion (million NYAN)) bids on each price as I slowly work my way back up again in order to be able to handle possible dumps with less price shock.
[c] coinmarketcap.com/currencies/nyancoin/ ; as noted in [b], this only reflects the /BTC basepair on Cryptopia but that's where most of the volume is anyhow. Of course, the market is also not particularly liquid since I'm the primary buyer and have rather limited means currently.
[d] I haven't setup a script to count this yet, among many things on my to-do list for someday, so I went through by hand from what was the then-latest block of 1091430 on nyan.space back to 1089766 which was the first block generated less than 24 hours before. There was actually a three and a half hour block gap at that point, such that the next prior block was about 24 hours and 15 minutes before 1091430 while 1089766 was only about 20 hours and 45 minutes prior, and has a disproportionate number of transactions and value compared to a typical block (8 and ~313,000 NYAN respectively) from the build-up during the gap. But since that gap conveniently started right about at the start of the 24 hour period, doesn't really skew our results here.
Note that there are often times where the UTXO created during one transaction during the day is spent during a later transaction in the day. This can be considered the "same" Nyancoin being "spent" twice in the same day in our total. But in practice, I believe what's happening here is the faucet is breaking off small (10-50 NYAN) pieces from a larger (~40,000 NYAN) chunk, and so that pops up a bunch of times. So the total NYAN blockchain volume as counted for this topline number should not be interpreted as "NYAN spent in the day" but "NYAN moved on the chain", where the "same coin" can move many times. So it's a very easily gamed metric and not a strong / resistant metric like the market price tends to be (at least relatively speaking), but it's a fun number to calculate and provides a little bit of information. The transaction count can also be easily inflated and certainly, for instance, having the faucet does generate transactions which are a very common transaction. And this is also just an arbitrary 24 hour period compared to a previous arbitrary 24 hour period. Nonetheless, I do think there's clearly a bit more activity on the Nyanchain, even though the typical block is still empty and the number of transactions and volume is still tiny compared to the major cryptocurrencies. Here's an arbitrary example of the faucet transactions Note the zero transaction fee, which I love that the miners support (the defaults are all quite low as well). Here's an example of what may be the smallest transaction by NYAN volume of the day; but no, I followed its small, spent output, and it led to this gem which also links to this. I have no idea what's going on here, but it's hilarious and I love it. How's that for microtransaction support? :-)
[e] Obviously Cryptsy went down. We had had more than enough red flags with Cryptsy (including one time where I was able to withdraw 6 nillion more than I had in my balance) and got onto Cryptopia. spydud22 basically accomplished that for us, although I helped out in the tail end of the campaigning.
[f] Our community is still small (I wish there were literally dozens of us!) but we've had valuable activity from multiple people, including, just as highlights, vmp32k who hosts nyan.space, a clone of the original nyancha.in, jwflame who created the excellent nyancoin.info intro site, with the awesome status page (which currently notes that "the last 500 blocks actually took 111 minutes, which is approaching the speed of light, causing the universe to become unstable"), KojoSlayer who runs the faucet and dice, spydud22 who got us on Cryptopia, and many other Nekonauts have made worthy contributions, and the Nekonauts mentioned have done more than just that listed. So while we are small, we are active at least from time to time and technically capable.
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