Free Mortgage Calculator - Free download and software ...
What old Bitcoin transfers tell us about the value of a ...
Mining Calculator Bitcoin, Ethereum, Litecoin, Dash and Monero
08-10 07:44 - 'Who is forking Filecoin?' (self.Bitcoin) by /u/paulcheung1990 removed from /r/Bitcoin within 6-16min
''' Forking Filecoin is a $500 million to $1 billion business? On July 17, cryptocurrency analyst Bitfool mentioned via Weibo: “Recently, people who forked Filecoin in the market have been undercurrents; as far as I know, there are 4-5 teams. From a strategic point of view, the project Teams, investors, and miners get two of the three to successfully fork; one of the three can steal 5-10% of the market value. Therefore, Filecoin's fork is a $500 million to $1 billion Business." "It's even more awesome, full of courage, and ready to build a team to fork Fliecoin. Well done, famous in the world, poor done, and scorned by thousands of people." Sun Ming, a partner of Fenbushi Capital, mentioned in an interview: "Miners who have invested a lot of hardware resources are promoting the fork of Filecoin. Hu Feng, operating partner of the FILPool mining pool, said: "Currently, big miners have ideas, but it will only be possible after the mainnet is online. Filecoin economic model is not friendly to miners At the beginning of the establishment of the Filecoin economic model, a pledge and reward and punishment mechanism was proposed, which has undergone many adjustments. The last three adjustments have made the mechanism increasingly stringent. In April of this year, the Filecoin project team introduced their thinking on the economic model and refined the reward and punishment mechanism. Miners who complete file storage can get corresponding block rewards, and fail to store files within the promised period will be punished. This fine is imposed on the Filecoin collateral pool (locked funds) provided by each storage miner. Locked funds include a small amount of early FIL tokens and token rewards obtained from miners. Miners need to mortgage a certain amount of tokens in the early stage. If the amount of mortgage is too large, it will cause a shortage of FIL tokens in the early stage. The improvement made by the economic model is to transfer some of the early-stage costs to future block rewards. The severe punishment mechanism made some miners dissatisfied, and some miners commented that the mechanism was too "crude". In May, Filecoin made major adjustments to its economic model. This adjustment raises the threshold for miners to leave. Filecoin continues to strengthen the miner's mortgage mechanism, and part of the rewards mined by the miners will be locked. The penalty mechanism has also been changed accordingly. Only when the task of file hosting is completed can the mining reward be unlocked. If miners want to profit, they need to have strong computing power and be able to provide stable storage services for a long time. If this is acceptable to miners, the recent "pre-mortgage" mechanism has left miners at a loss. "Pre-mortgage" is proposed in the latest Calibration version of Filecoin, which means that every sector encapsulated requires a certain amount of FIL to be pledged in advance, and the pledged token needs to be locked for 180 days and then released in 180 days. The consequence of "pre-mortgage" is that FIL token has worse liquidity in the early stage. A large number of FIL mortgages are required in the early stage, which will force miners to find the official to buy coins, and the long lock-up period causes most miners to choose to sell coins instead of encapsulation. "The miners have put their money in the hardware, where can they go out and buy coins?" Since there is not enough funds to buy coins as collateral, it loses the qualification for mining. Even if the mortgage funds are saved, it is almost impossible to pay back with the small amount of currency in the early period. Sun Ming said: "The mining output is too small, making it difficult for early miners to maintain operations." The adjustment of the economic model continues to compress the income of early miners, and the voice of miners proposing to fork Filecoin is also getting louder. Sun Ming believes: "On the one hand, it is the protest of the miners against ProtocolLabs (requesting it to modify the economic model), and on the other hand, it is also the desperate fight of the miners forced to do nothing." Li Bai posted a circle of friends to express his attitude. As shown below: [link]1 Another very important point is that, according to the current reward mechanism, Filecoin competition in China is tantamount to "college entrance examination". Take the Filecoin big miner test competition as an example, miners can only be rewarded if they are ranked in the top 50 in their area or in the top 100 among all miners. Looking at the situation of Chinese miners, 9 of the top 10 nodes in the world are from China. According to people familiar with the matter, about 80% of Filecoin miners are concentrated in China. The fierce competition can be imagined. Wang Qingshui expressed his concern: more than 90% of miners may not make money. Many miners saw that they couldn't make money, and they had the idea of opening up Filecoin "other tracks". Therefore, the call for a Filecoin fork is the strongest in China. Unaffordable mining costs and thresholds In addition to Filecoin's economic model, another point that miners complain about is Filecoin's threshold and cost. The cost of Filecoin mining input and the technical threshold of operation are beyond the reach of many miners and mines. Filecoin has a severe punishment mechanism, which can ensure the safety of the data party, but at the same time it will bring a high threshold for mining professionalism and operation and maintenance stability. In order to ensure uninterrupted power and no disconnection, it must be hosted in a high-level IDC computer room. In order to ensure mining efficiency, the network, computing power, and storage hardware must not be poor. Therefore, miners need to use a large sum of money to purchase high-end hardware equipment. Instant window-POST verification and submission requires high algorithms and error repair capabilities, and requires professional algorithms and operation and maintenance teams. In addition, the threshold for Filecoin mining may be above 10TB or even higher. Entry mining has a threshold for storage and technical maintenance, and a lot of money is needed to purchase hardware equipment. Earlier, a blogger did a cost calculation. With 30 mining machines as a cluster calculation, the expenditure for purchasing mining machines alone was as high as 6 million. Coupled with the cost of computer room construction, operation and maintenance, Filecoin mining costs may be more than 10 million yuan. Wang Qingshui also mentioned the flaws: “Many ordinary miners and even servers cannot participate, which is contrary to the original intention of the project.” Some people in the community expressed their concerns: "I have invested so much. What if something goes wrong after Filecoin goes online? Wouldn't it be a loss?" So some miners are thinking, can they lower the threshold of mining while ensuring safety? Some miners pointed out that not all mining machines need to be hosted in the IDC computer room, which is costly and prone to waste of resources. If it can be hosted in different computer rooms according to the performance of each type of mining machine, it can not only ensure safety, but also reduce costs. Judging from the interview, many industry insiders are on the sidelines of the Filecoin fork. Li Bai said: "There are many people who have ideas, but few people can put them into action." Wang Qingshui believes that any popular big project will be forked. Are BTC and ETH forked less? But how many forks can surpass the original version? Some miners think that the fork is just talking: "Someone will follow the official game.", "Who wrote the code for you after the fork? Do you dare to use the code you wrote?" The Filecoin fork is "undercurrent". As the Filecoin mainnet approaches, miners' actions will become more frequent, and we will continue to report. What do you think of the Filecoin fork? Please let us know in the comments section. ''' Who is forking Filecoin? Go1dfish undelete link unreddit undelete link Author: paulcheung1990 1: ****ie*.redd***/4l6*p**nn4g51.jpg*width=676&*forma**pjpg&am**auto=*e*p&***c*16a*61e2*0d1a*4*3f9f*9c8*fdfcebfdb*d3 Unknown links are censored to prevent spreading illicit content.
Leads you to a comprehensive understanding of Forbes
https://preview.redd.it/1dra1br1xu351.png?width=740&format=png&auto=webp&s=925b38326cb8aa4f4b2863670ada61005ee72c4c What is the hottest blockchain project in 2020? Besides GFS, GFS is still GFS in my mind! GFS currency - the only token of Forbes cross chain blockchain! Forbes is the latest generation of blockchain, which can be said to be a new blockchain mode, or it is not a pure blockchain project. As we all know, in the era of blockchain 1.0, the bitcoin of Nakamoto brings decentralized distributed bookkeeping book, which enables human beings to have just assets for the first time; in the era of 2.0, the Ethereum smart contract created by V God makes the blockchain have divergent applications; in the era of 3.0, innovation public chains such as EOS make the application of blockchain easier to land. It will open Forbes in the era of blockchain 4.0 and create a distributed financial era of "ten thousand chain interconnection". My feeling is that Forbes is going to overthrow the traditional Internet and the classic blockchain, and reshape a financial world built directly on the blockchain. The most classic sentence on the Internet is: change your life, but it has nothing to do with you. In this way, Forbes uses the philosophy of blockchain and further technology to redo blockchain and bring blockchain to a new dimension. Today's bitcoin looks like a monument and a myth, but Forbes is using its cross chain technology and financial deployment to gently reinterpret the blockchain. Next, I will expand what you are concerned about and what I see in the form of Q & A: 1. Is it investment or speculation to participate in Forbes? Although we do not exclude speculation, there is no doubt that participating in Forbes is one of the best investment behaviors in 2020, no less than investing in bitcoin in 2013 and Ethereum in 2016. Forbes is a pure technology project, with no messy black box operation. As Forbes early deployed the ore field to facilitate the construction of cross chain system, early users can rent the Forbes BTC miner loaded with self-developed bitcoin ASIC chips by way of mortgage, with the strongest configuration on the ground. Moreover, in the process of mining, the early nodes do not even need to pay a penny, only mortgage deposit can deploy the physical miner. The income obtained can also participate in the early stage node plan carried out by Dao organization, and part of the income can be converted into GFS through Forbes wallet. And the deposit is not a routine, all the mortgage deposits will be locked in the chain. With the shortening of the lease term, each day will be returned to the user's wallet through the "deposit smart contract", without any centralized individual and organization participation in the whole process. In this way, it is equivalent to zero risk investment! After all, Forbes, with its cryptology and open source spirit, is inherently powerful. What Forbes wants to change is the life of centralization! And then there's no more. Jane is not simple. 2. Why do you like Forbes? Very simple, blockchain 4.0 First of all, let's not talk about anything. Forbes has solved a problem - mining hegemony. In the past, blockchain seems that nodes can enter and leave freely, but in fact, it needs a huge threshold to become nodes and obtain mining rewards. Whether it's bitcoin, you need to buy very expensive and complex mining equipment (ASIC miner), or EOS, Tron and other POS projects, and you need to hold a large number of coins to be elected as nodes. All in all, most of the current blockchain systems need very high mining costs, which in essence violates the principle of zhongbencong's blockchain design. The powerful thing about Forbes is that it creatively constructs dpoc as a consensus mechanism of trunk chain (main chain). Dpoc is a kind of common understanding of POC. There is no big deployment threshold for mining with hard disk miner. As a result of the consensus between Forbes blockchain Multi Chain Design and dpoc, all mining machines that do not have the relay chain node selected can pack the interaction information between the parallel chain and the relay chain, and can also obtain the block reward. In essence, such a design realizes Zhongben Cong's idea that everyone can dig. Let alone Forbes to build a mine pool, to build the strongest mining machine that can dig out the Forbes token GFS. With this in mind, which blockchain product can match. Layout of Forbes The vision of Forbes: to build the most universal distributed financial system in the world, driven by Forbes, the most widely used cross chain system in the world. I saw two key words: cross chain, distributed Finance Cross chain is the most urgent problem in current blockchain ecology. In the past 10 years, various blockchain systems have been deepening in security and performance, but no progress has been made in chain and chain scalability. As you can see, the chain and the chain is an island. Can EOS players and wave players break the bond? In the human financial life, transaction, loan, personal credit, supply chain finance, stock, commodity... They are directly full of interaction and connection. It can be said that human beings are dealing with all kinds of transactions all the time. Can the isolated blockchain really solve the problem? Forbes is born to be a global distributed financial system and truly a financial ecosystem. Imagine what a change it would be if you could smoothly carry out blockchain financial activities with foreign small partners. This pattern is too big for me to say. But please believe that if this is done, it can be described as a complete disaster. https://preview.redd.it/ee15vfv8xu351.png?width=1450&format=png&auto=webp&s=b36e2aa2548e0320b127d30e67d28511a666b30b 3. Is it better to mine or invite new people? Since this is my experience interpretation, I think: invite, boldly invite new people. Every time you invite one, you add a certain amount of calculation power. It's good to mine in Buddhism, but if you can participate in the birth of a great project, you can get more profits. Why not? Let's take a different perspective: now that you recognize Forbes, you recognize its value. Or you're not going to dig, are you! So, why can't we add more yards! Since we are trying to change our destiny, this is the highest lever. If it does, which lever can be bigger than Forbes! So, invest money or energy, and do what you can. 4. Do I want to join the Forbes pool project? Do you want to do it. They all recognize the value, so they can download the application directly. My original intention: First of all, GFS coin is a new mining model - POC hard disk mining that "everyone can dig, everyone can benefit". It avoids pow (proof of work workload) which is a large power consumption mode. In the initial stage of the main network online, Forbes opened the mine pool plan, leasing the mine machine at zero cost, becoming the earliest node of blockchain 4.0 representing the project, and obtaining the maximum benefit. Why not? You know, GFS production is also halved in four years. To dig now is to dig bitcoin before 2013, without cost. Secondly, in this stage, we can also increase the number of invited nodes. After the completion of the mining pool plan, we can only rely on hard indicators to increase the computing power. Now we can also rely on our efforts to get more profits. Therefore, in the face of equal opportunities for all, this is a great opportunity to take the initiative. Still hesitant? 5. Blockchain is my knowledge blind area. What can I do if I don't understand cross chain knowledge? First of all, you have to ask you, this is the excuse you don't want to get wealth? Not only Forbes is your knowledge blind area, but blockchain is a knowledge blind area for ordinary people. However, you should know that in 2020, the State advocates blockchain, the central bank DCEP has been put into trial operation, and blockchain has been applied in many aspects. Are you still in your blind spot? Of course, it's not good to pull the national flag. Let's talk about something practical. Opportunity always appears in new things. Ask, what's the matter with you, a solidified model? You have money or connections. I believe that choice is more important than effort. A road, if we choose the wrong direction at the beginning, the harder we work, the farther away we are from our goal. Therefore, the knowledge blind spot is not my problem, but whether you have a heart willing to contact new things! Among the miners I know, there is a 67 year old elder brother who has been a soldier, a factory, a traditional businessman and a cell phone. Do you still have his blind spot? 6. Will Forbes succeed? To be honest, I don't know. But I know that it is the blockchain project that I hope to reach the most in 2020. For details, please refer to the second question, why I like Forbes. If you really question Forbes, you can choose to only participate in the "miner Alliance Plan" and choose to mine at zero cost. No matter how the Forbes project progresses, you can get the benefit of mining without cost. Why not? Besides, when the Forbes project is really implemented, you can decide whether to invest in GFS. I'm sure you will have your own judgment at that time. 7. What is the most important thing to dig GFS? Insist, insist, or insist. We must make full use of our efforts in the earliest planning activities of the mine pool. After all, mining at zero cost + inviting to increase the calculation power and increase the support in the wet season. At this stage, we must dig more coins and exchange more for GFS. Maybe the reward coins you dig out in three months can't be found in a year after you try to buy hard disk mining machines for nodes. https://preview.redd.it/wi81roocxu351.png?width=750&format=png&auto=webp&s=0cd677f420071cfad942e426d4b415165915c2d0 8. There are so many people who rent mining machines first. Do I have a chance? People die more than people, and goods are thrown away more than goods. Don't compare with others, just be yourself. God said, I can fulfill your one wish, but I will give you twice as many neighbors. You will choose 10 million positive choices, Or one less arm in the dark? Mining is like this. Those old miners are your neighbors. Dare to own 10 million good, do not think about neighbors than you 10 million. Is that right? And when there are 10000 GFS, do you still want someone to have 100 more than you? 9. How much is GFS worth? To be honest, I don't know. The number of GFS is 21 million bitcoin, and the price of bitcoin is about 60000 yuan. The GFS main network has just been launched. In some markets, its price has increased more than 10 times in five days, far exceeding the price of bitcoin before the half reduction. The miners who rent mining machines in advance are blessed. As for the future, with the start of the implementation of blockchain financial facilities this year, GFS must be just the beginning. Where is the top? We witnessed it together. 10. Which do I want, kusd or usdt? For now, it doesn't matter which one you use. Although usdt has a lot of potential risks, there are still many people using it. However, we all know that it will have a thunderstorm sooner or later. As a cross chain gold stable currency, when cross chain finance begins to integrate into public life, kusd will show its power, which is better than issuing a usdt once in a chain. Moreover, more than 95% of the value of each kusd is based on gold, which can be exchanged by major gold exchanges in the world. The stability of gold. Have you seen it clearly in this epidemic? This is beyond the dollar.
Numbers on the screen or how digital payment systems make the market fair?
https://preview.redd.it/6m1gp2mvotx41.png?width=1160&format=png&auto=webp&s=a83f0346d8008c17968d6a240cfba8fe3fe4e2aa Continuing the trend of practicality characteristic of the XXI century, paper money is gradually disappearing from our lives, giving way to more practical digital storage. However, the digitized banking that we now use every day is still far from perfect. For starters, it is completely controlled by third parties. No one owns the numbers they see on the screen — control is entirely owned by third parties, such as banks. Banks create money out of thin air, and credit is a prime example of this. Money is no longer printed when someone takes out an overdraft or mortgage-it is simply created out of nothing. Moreover, these banks charge disproportionately high fees for the services they provide, and these services are outdated and impractical today. For example, it is impractical to pay a Commission to spend your money abroad, as it is impractical to wait a few days to verify the transfer of a small amount from You to your relative. All this makes no sense in the interconnected and instantaneous world in which We live today. Thus, the monetary system has ceased to be practical, it is replaced by a higher form of value storage. In this particular case, it is replaced by a faster and safer system that eliminates expensive operations and gives control to the person. https://i.redd.it/quc2bgmxotx41.gif Money that you have in your Bank account can be considered a virtual currency since it does not have a physical form and exists only in the Bank book. If they lose the book, your money will simply disappear. These are just numbers that you see on the screen. The numbers are stored on the hard drives of Bank servers. https://i.redd.it/4nvhydtzotx41.gif Do you open a regular app and think you have money? They are just bytes of the computer system. Today’s global payment infrastructure moves money from one payment system to another through a series of internal Deposit transfers between financial institutions. Since these transfers occur in different systems with a low level of coordination, the calculation of funds is slow, often 3–5 days, capturing liquidity.
How do payments work?
When you make a money transfer, for example, from your Bank card to the Bank card of a friend or acquaintance, you see an instant transfer, so to speak, moving numbers from you to the Recipient. For the user, the transfer is carried out instantly, and the exchange of obligations between the participants of the process takes place within 3–7 days, the User does not know about it and hardly ever thinks about it. https://preview.redd.it/rl4aai81ptx41.png?width=1400&format=png&auto=webp&s=cdfa10f0d68442aac84c14e3bae5a52e92651878 When you make a payment at a supermarket or any other point of sale, at the time of payment, information from the POS-terminal is sent to the acquiring Bank — then the acquiring Bank sends a request that passes through the payment system (Visa or MasterCard) and then transmitted to Your Bank, which confirms the operation. At this point, there is no write-off of funds. The funds are temporarily held, and the actual withdrawal will take place within a few days, the maximum processing time is up to 30 days. https://i.redd.it/8njxgxq2ptx41.gif
Currency transactions and payments abroad
You may have noticed that after making a transaction in a different currency, such as yen or dirhams, or any other currency that differs from the currency of your account or buying an item abroad, the amount charged may differ from the amount that was reflected immediately after payment.
Why is this happening?
As soon As you have made a transaction with Your Bank card — the local Bank transfers the information to the payment system: Visa or MasterCard — the payment system converts the currency used into the billing currency.
Billing currency — the currency that will be used for payment with the payment system by your Bank that issued the card. For the US, the billing currency is the dollar, in Europe — the Euro.
The billing currency may also differ depending on the issuing Bank — the Bank that issued your debit card. For example, some banks use the billing currency — Euro when making payments with MasterCard cards in the United States, which will lead to additional costs when converting euros into dollars. If the payment is in other currencies, the payment scheme will become more complicated and, accordingly, its cost will be more expensive. The transfer rate from one settlement currency to another is set by the payment system: Visa and MasterCard. If the currency of your Bankcard is the same as the currency of the payment system, the payment will take place without additional operations. For example, You have a dollar card, you make a payment in dollars in the United States, and if you make a payment with a dollar card in Europe, your Bank will convert the amount at its exchange rate, which will lead to additional costs. There are exceptions, some European banks can use dollars for settlements, but this is more an exception than a rule. Also, if, for example, you pay for purchases in China using a Bank card in euros, then double conversion is inevitable. Thus, payment in dollars is universal all over the world, except for the European Union countries. The dollar is a global currency and is therefore often used for binding in international settlements. Now we understand that due to differences in the account currency and the differences in the VISA or MasterCard payment system, additional conversions may occur, which will lead to additional bank fees. as a result, the actual payment amount will differ from the amount debited from your card. In addition to paying for conversion in the payment system and paying for currency conversion in your Bank, some banks charge an additional fee for conducting a cross-border transaction.
Where do we lose money when making debit card payments?
Euro-Dollar, or in the case of processing payment via MasterCard in Turkey, Turkish lira-Euro and additional conversion on the side of the issuing Bank (your Bank) Euro — Dollar.
Currency conversion by an acquiring bank;
The difference between the exchange rate on the purchase date and the write-off date. We purchased at a rate of 0.91 euros per dollar, and the write-off occurred at a rate of 0.94 euros per dollar.
A large number of currency conversions.
The greater the number of them, the more we will lose when buying. For example, when paying in the UAE or China, buying a product for the local currency, we understand that the number of conversions increases several times.
If we touch on the topic of international translations, we will encounter additional nuances:
This is the payment processing time. International payments can be processed within 3–5 days, as mentioned above, which in our dynamic time — it interferes with the comfortable use of the system.
Restrictions on the amounts;
Possible requirements for certain documentation for payment confirmation;
Additional fees and commissions, sometimes hidden fees.
It is not always possible to make a transfer quickly and when necessary due to these restrictions. All this confirms the complexity of the operations and additional commissions that the user pays.
And now back to the numbers on the screen, this topic affects not only banks but also centralized cryptocurrency exchanges:
You top up your Deposit on the exchange in cryptocurrency-then you use numbers inside the exchange, and real funds are most often stored on “cold storage” for which administrators or other responsible persons are responsible.
Only when you make a withdrawal from the exchange to your wallet-you are sent real funds (tokens or cryptocurrency).
The same applies to centralized applications and online services that deal with cryptocurrencies: There are many services, both online and apps, that are centralized, regardless of what they will be called: Bitcoin wallet or bitcoin exchange. This means that when you add funds to an account in such a wallet, the funds are stored on the developecompany’s side. In simple words, all your funds are stored in the wallets of the system’s creators. If you use a centralized app, you have a risk of losing funds. Although the application is called cryptocurrency, it does not affect its main principles — it is decentralization. In other words, using systems where there is a Central authority, especially in the cryptocurrency market — the risk increases, so we recommend using decentralized systems for storing currency to reduce risks to a minimum.
Decentralizationis the process of redistributing, dispersing functions, forces, power, people, or things from a Central location or governing body.Centralizationis a condition in which the right to make the most important decisions remains with the highest levels of management.
Using decentralized tools, for example, a local Tkeycoin wallet or a Multi-currency blockchain tkeyspace wallet — Your funds belong only to You and only You can use them, which eliminates the risks of third-party bankruptcy, and such a decentralized architecture can also protect against natural disasters. Given that there is no central server that can be damaged in a natural disaster, the system can work even if there are 2 nodes. https://i.redd.it/sb6i2ladptx41.gif In addition to force majeure situations, you protect your funds from theft and any sanctions from third parties-in our time, this is very important. The owner of Tkeycoin does not need Bank branches, does not need additional verifications, and does not need permission to use, transfer, or even transport Tkeycoin. You can easily carry $1 million worth of Tkeycoin in your pocket and even in theory not know any troubles. https://preview.redd.it/uvw9vfyeptx41.png?width=1400&format=png&auto=webp&s=14b89acca3568fdc5eb82d986aaa2710219ced91 Besides, it is extremely convenient and safe to store even multibillion-dollar capital in Tkeycoin. Imagine that you have a lot, a lot of money, and you need a safe place to store it. Where do you apply? Of course, the Swiss Bank, Yes, but it can easily freeze your accounts and you can easily lose your savings. In recent years, many banks are actively fighting against gray non-cash funds (including offshore ones), and every month more and more legal proceedings are organized on this basis. https://preview.redd.it/vodiuq5gptx41.png?width=1400&format=png&auto=webp&s=31ab44da4431b0159ef1213db7e37c6fd92d5b0a The fact is that serious money, for the most part, has a gray tinge, and only a tiny fraction of billions and millions are clean for the law. That is why their owners are often called to court, subjected to pressure, forced to leave the country, and so on. If your money is stored in Tkeycoin, you will not be subjected to such pressure and will avoid the lion’s share of troubles that usually accompany accounts with many zeros. Using peer-to-peer systems — you will not be called by a Bank Manager and require documents or a fraudster who asks for Your card number and SMS for confirmation. This is simply not the case, wallets are encrypted, and using different addresses guarantees privacy. As for fees for transfers, there are no Visa or Mastercard payment systems, as well as additional fees that we discussed above.
How are payments made in the Tkeycoin peer-to-peer payment system?
https://i.redd.it/9ftct10iptx41.gif As soon as you sign a transaction, it is sent to the blockchain and the miners are engaged in its confirmation, for which they take a symbolic Commission. Let’s look at an example, the key rate is $1, the transfer fee will be 0.00001970 TKEY or 0.00000174 TKEY.
Accordingly, commissions are almost zero. In Europe, on average, you will pay $15–20 for a small Bank transfer. For example, now sending 1 million dollars to BTC, You will pay a Commission in the area of ≈3–8 dollars. Just think, 1 million dollars, without restrictions, risks, and sanctions, and most importantly, the transaction will be the available day today, and you paid an average of ≈5 dollars for the transfer.
Transactions in the Tkeycoin blockchain
Now let’s touch on the topic of how a transaction in the blockchain goes. Once you have sent a transaction, it will be available to the Recipient. The transaction takes place instantly and the User sees not” numbers on the screen”, but real funds-cryptocurrency. This is very convenient when you make any transactions and the Recipient needs to make sure that the payment came. In the full node-there is a choice of confirmation blocks — this is the amount after which you can use the received cryptocurrency. When sending, you can select the number of confirmations:
As we can see, you can also set a weekly confirmation if necessary. The minimum recommended number is 3 blocks. by default, the full node (local wallet) has 6 blocks installed. The presence of this number of confirmations ensures that Your block will not be forged and will be accepted by the network. Each new transaction that receives network approval is sent to mempool, where it waits for miners to confirm it. When a miner takes a transaction to include it in the next block, it automatically receives the first confirmation.
Generating blocks in the TKEY network
A block in the TKEY network is generated within 6–10 minutes. the network automatically corrects the complexity and time of block formation. Thousands of transactions or a single transaction can be placed in a block. https://i.redd.it/f9d17k8uptx41.gif Transactions work faster in the TKEYSPACE app because we have already enabled new algorithms and this is now the fastest and most convenient way to exchange various digital currencies. https://preview.redd.it/nnz5krdvptx41.png?width=1400&format=png&auto=webp&s=fee452ae6389c8f46d97357777193ed2b10bc4bc Anyway, using the full node is also one of the safest ways to store and send Tkeycoin cryptocurrency, and most importantly, the full node stores a full copy of the entire blockchain, which benefits the network and provides protection from information forgery. The more popular the project becomes, the more load is placed on the network itself. For example, 10,000 transactions passed in one block that was processed quickly, while the other 10–20 transactions in another block hung for a longer time, so temporary “pits” may appear. To deal with them, we are working on implementing additional chains-separate chains that are created for cross-transactions, which ensures fast payments under heavy load. For the global system — we get a shipment around the world in 6–10 minutes, in cross-chains in 10 seconds. In comparison with the global payment system, which processes cross — border payments within 3–5 days, this is a huge advantage. If we add liquidity to this, we will get a perfect payment system. https://preview.redd.it/2d0uu4gxptx41.png?width=1200&format=png&auto=webp&s=ae5f2f0bc8b7c7dedd1814eb32e97092a6330c3a Also, you should not forget that if you did not sync with the network and sent a transaction, the transaction may hang in its memory pool and you will have to perform several actions to solve this situation. Here we must understand that syncing with the network is an important point because if you have a connection failure in the Internet Bank, the payment will also not be processed. After all, it will not be sent to a specialist for confirmation. If you are currently experiencing any delays with transactions, this is due to the transition of CPU mining to GPU, as soon as miners switch to new mining methods, the confirmation of blocks will be consistently fast. In conclusion: blockchain is a new technology and many terms, concepts and how it all works are still difficult for many to understand and this is normal from innovation. In many countries, the word cryptocurrency and blockchain are synonymous and no one wants to understand the reality, most people believe that if the blockchain, it means it is related to trading on the cryptocurrency exchange. No one thinks about the real usefulness of certain solutions that will become commonplace for Us in the future. For example, the Internet banking system dates back to the ’80s of the last century, when the Home Banking system was created in the United States. This system allowed depositors to check their accounts by connecting to the Bank’s computer via their phone. In the future, as the Internet and Internet technologies develop, banks are beginning to introduce systems that allow depositors to get information about their accounts via the Internet. For the first time, the service of transferring funds from accounts was introduced in 1994 in the United States by the Stanford Federal Credit Union, and in 1995 the first virtual Bank was created — Security First Network Bank. But, to the disappointment of the founders of the project, it failed because of strong distrust from potential customers, who, at that time, did not trust such an innovation. Only in 2001, Bank of America became the first among all banks that provide e-banking services, the whole user base for this service exceeded 2 million customers. At that time, this figure was about 20 % of all Bank customers. And in October of the same year, 2001, and the same Bank of America took the bar in 3 million money transfers made using online banking services for a total amount of more than 1 billion US dollars. Currently, in Western Europe and America, more than 50% of the entire adult population uses e-banking services, and this figure reaches 90% among adult Internet users. Life changes, and in the bustle of everyday work — we do not even notice how quickly all processes change. We are experiencing a technological revolution that is inevitable. https://i.redd.it/afcfj3rzptx41.gif
Uncertainty and lack of liquidity are two of the factors behind one of the last decisions of the United States Federal Reserve, the most powerful central bank in the world: injecting money to calm the markets. But not any amount. The Fed put US $ 203 billion into the financial system this week and said it has another $ 75 billion prepared in case they are needed. This intervention is the first of its kind since 2008, when the Great Financial Crisis forced central banks around the world to intervene in the markets trying to stop the debacle that came later. Why the next global economic recession may be worse than in 2008 The objective of the US Federal Reserve was to stabilize what is generally a quiet part of the market, but which is essential for the proper functioning of the financial system: the buyback market. The operations of "repo" or repurchase are one of the types of transaction most used by banks and other large companies to obtain liquidity in very short terms. Large institutions or companies lend money to each other in the repurchase market. We are talking about loans of days, weeks or months. Not 20 or 30 years as usual mortgage loans. What happened is that, on the one hand, the shortage of cash, and on the other, the uncertainty about the real state of the economy, caused the reference rate in these contracts on Wall Street last Monday to rebound strongly . They went from a level around 2.21% to 10%. "The repurchase market (repo), where banks and stock traders can obtain secured loans, is a critical barometer of the health of financial markets," explains Jerome Schneider, manager of Pimco, one of the world's largest companies of investment in public debt. What is the repo market? Banks, hedge funds and other large companies regularly come to this market to borrow money with which to ensure that their accounting books are in order. They do this regardless of their daily activities. "The repo market is essential for the efficient operation of almost all financial markets," says the International Capital Market Association, they are based in Switzerland. Now we add this to the world economic system that "is a reliable, more stable and less volatile system than cryptocurrencies in this case for our analysis Bitcoin, which has a higher volatility index" The main reason behind the collapse would be in future contracts offered by the Chicago Mercantile Exchange (CME). 50% of CME's options have an expiration date on Friday 27/09, which would boost the fall in the price of the currency as explained by Trustnodes analysts: "There are few things more predictable in Bitcoin than the price will fall before the last Friday of the month, when futures expire, and that price will increase after that. " These maturities would be such a determining event for the price of bitcoin, as they would boost market manipulation. When the end date of the options approaches, some speculators are selling BTC in the spot market. These sales increase the liquidity of the currency, affecting its price, as explained by the American Finance Association: "Without physical delivery, corner-based or squeeze strategies are not feasible. However, uninformed investors still obtain positive expected benefits, by establishing a futures position and then negotiating in the spot market to manipulate the price used to calculate the settlement. in cash at the time of delivery, "he explains. Therefore, and despite the sharp fall in the price of bitcoin, if the analyzes are true, there will be a rebound in the price of bitcoin. Others claim that it hit against bitcoin, the poor premiere of Bakkt, the new platform promoted by ICE (Intercontinental Exchange, owner of the New York Stock Exchange) for the negotiation of bitcoin futures with physical delivery. The collapse of the BTC has coincided with a sudden collapse in the hash rate of its Blockchain. The hash rate of a cryptocurrency represents the computing power of your network for performing mathematical operations that will allow you to fix transactions on the Blockchain. In simple terms, the hash rate tells us how many miners are in the Blockchain, and how much power the cryptocurrency has to carry out transactions. This rate has experienced a period of growth throughout the year, which has led it to reach constant historical highs
https://preview.redd.it/1lagrcjnc9o31.png?width=1074&format=png&auto=webp&s=3136db9ca685dc17477d307df722e5b73ba80030 Spock Network is a decentralized storage platform. In the early stage, Spock Network mainly stores Proof of Capacity (POC) consensus data to effectively utilize the most suitable decentralization technology to encourage miners providing hard disk space. Recently, Spock has been growing rapidly and getting listed on four famous exchanges including CoinEx. On Sept. 19, CoinEx will launch Accelerator for Spock, allowing users to subscribe SPOK with 0.0075 USD. Besides, in order to help our users to dig more about Spock, we have invited the open source code contributor of Spock, Titian Xie, to throw an AMA among our community. Below is the recap of the AMA and enjoy your reading!
Q1: How will Spock solve the existing problems in blockchain?
A: Spock is a decentralized storage application network. Judged from the current development of blockchain technology, PoC is the only choice for a decentralized incentive mechanism in a distributed network composed of a large amount of hard disk space and bandwidth. On one hand, this solves the problem of excessive power consumption in the current mining industry, and on the other hand, it solves the problem of fair competition among a large number of existing hard-disk mining machines. At the same time, on that basis, Spock also supports Solidity smart contracts, which makes the entire ecosystem more prosperous.
Q2: Could you please say something about the team?
A: The core members of our team are all early users on Bitcointalk forum and developers of Burst. They are very familiar with the technology development trend and the details of the bottom of the blockchain technology. Even I with such a R&D background could only throw myself down at their feet in admiration. Their ideals are also very pure, that is, to make Spock a community coin like Bitcoin and Litecoin.
Q3: Community building has just started. What will you do to build the social media that remain active and continuously focus on Spock?
A: Spock is a decentralized application platform. The community also relies on spontaneous word of mouth. Since Spock was put on the test net and later on the main net, many miners and holders have spontaneously joined in to become owners, and maintained and promoted the community. The upcoming Solidity smart contracts can be carried out by polling among the holders, and members of the community will vote through the smart contract to determine the project function expansion and community governance.
Q4: Spock is a decentralized storage application platform, so what advantages does it have compared with the traditional centralized storage platform?
A: Traditional centralized storage platforms generally adopt cloud storage. Most of the data is stored on a few cloud platforms, which leads to serious centralization problems arising from data accumulation. There are also problems including higher cost, slower transfer rate, and poorer data security. The decentralized storage application platform encrypts and distributes data through a distributed network, meaning that no party, other than the data holder, could get access to the data, thus ensuring security. And one of the key issues is that the open decentralized platform can do better in protecting private data. As with the case of the assets of the digital assets of Huobi, the private key represents the ownership of the assets, and, on the decentralized storage platform, it can represent the disposition and access rights of the data.
Q5: Spock adopts the consensus mechanism of PoC. What advantages and disadvantages does PoC have compared with PoW and PoS?
A: In terms of resource usage, PoC is just between PoW and PoS, unlike PoW which consumes a lot of power, or PoS that almost costs nothing. Besides, since the core mechanism of PoC is similar to storing the “hashrate” of PoW on the hard disk, it also makes it possible for the mining equipment to mine in different projects at the same time, provided that several different projects use the same data structure.
Q6: We noticed that Spock also introduced the PoS mechanism on the basis of PoC. What is the consideration?
A: With the POS mechanism added in SPOCK, when a miner package a block, if its address balance satisfies the condition, he or she get get all the proceeds; otherwise, the proceeds will be reduced, and those that fail to meet the conditions will be destroyed. So in my opinion, developers introduce POS mechanisms to create a more equitable and sustainable ecosystem.
Q7: What will the team do to attract more developers to join the Spock ecosystem?
A: Spock is the first public link that supports the Solidity Smart Contract and has been put on the main net. It allows developers to port the DApp on the Ethernet to the network at a very low cost, while developers can design the mining and pledge mechanisms for the tokens of PoC distributed on this network.
Q8: What is the form of Spock mining? What are the conditions for miner application?
A: In SPOCK, mining is carried out through the storage device. First, you write the result of the hash calculation to the device, and reduce the huge hash calculation required in PoW algorithm by retrieving the data in the hard disk. Only a small amount of hash calculation will be required in execution stage. You can mine as long as you have storage equipment and meet the hashrate conditions. Ordinary miners just need an ordinary computer with a hard disk and access to the internet, then they need to go through hard drive mapping, download the wallet, install nodes and so on before mining.
Q9: I am a Windows phone user. How do I download a SPOK wallet?
A: At present there is only the Android version. Versions of other platforms are subject to the official arrangement.
Q10: Miners don’t know how much hashrate they have or how much they could pledge.
Q13: What are the advantages compared with Lambda or such? The larger the hard disk, the higher the hashrate?
A: My suggestion is to experience the mining process on both official sites so you may understand the differences between them.
Q14: Can we use the Raspberry Pi to mine at home?
A: Yes, theoretically. Yet the weak computing power of Raspberry Pi itself may affect efficiency in hard drive mapping. This is the end of the sharing. See you next time! If you have any suggestions, please submit a Ticket here: https://support.coinex.com/hc/en-us/requests/new
Qtum Co Founder Patrick Dai | "3 o'clock no sleep blockchain" depth of sharing
In the industry known as the "first block of the block community," the three o'clock sleepless block chain group, brought together the heavyweight figures in the domestic block chain industry. On the second day of the New Year, starting at 11 am, the group members with a total market capitalization of about 1 trillion yuan, as the traditional world still rejoice in the Great Reign, Technology, valuation, investment and future, the main questions raised in the group were carefully answered and shared. The full text is as follows:
Q1: Stellar recently fierce in Silicon Valley, do you think the threat to eth big? Patrick Dai: ETH has become an ecosystem where the greatest risk comes from the risks inherent in one's own ecology but less from outside risks unless there is a tenfold increase in Ethereum's advanced ideas and technologies, giving it an opportunity to replace Ethereum , Otherwise it is a big threat to the nature, but not competing with the front of Ethereum, in other areas (outside the ICO) force, there are still a lot of business and investment opportunities.
Q2: What do you think about the millions of TPS that eos claims? Patrick Dai: Blockchain is not born for the TPS, if we need faster TPS, the existing banking system and Paypal and WeChat payment, is a better choice. In addition to the degree of decentralization and TPS is basically an irreconcilable conflict, many of the replacement of TPS is to sacrifice network to the degree of centralization to obtain, I personally think, simply in pursuit of higher TPS, but it makes no sense , Especially if the network after only a few dozen large nodes (this is not the early stages of the bank?), Then the high TPS, very often not significant.
TPS makes sense for specific things, but requires a compromise with the philosophy behind cryptocurrencies. Because traditional IT technology has been studied for distributed systems for decades, all algorithms based on BFT and various variants can achieve very high TPS, but their degree of centralization is relatively high. The average person in the network is Can not get the right of reciprocity If you can not participate in the supervision and verification of the network, in fact, the use of existing financial services are more than enough.
Question 3:Qtum Chain initial design of the core of what is the point? Qtum how to build their own ecology? Qtum globalization is good, even South Koreans like Qtum,landing strategies and methods in different states around the world how to look?**
Patrick Dai: The core of Qtum Blockchain design:
Security, security is the number one priority for cryptocurrency systems, with no foundation for security and sophisticated software as a back-up.
Qtum chain is basically compatible with bitcoin's UTXO and all BIPs, and is also compatible with EVM and EVM-based ecology.
Flexible, the biggest innovation in Qtum is based on bitcoin transaction model, which supports the implementation of smart contract, so that Ethereum's virtual machine can run on the bitcoin network. In addition, the current Qtum network is already in the POS phase, and around 3000 A full node. POS is more friendly to business applications. Through technical support, development tools, Community Roadshow investment hatching in the constant construction of the ecology of the Qtum Blockchain. The more important thing is landing on the local community developers and local project developers to achieve localization, the international team will also be a lot of help.
Question 4: Decentralized trading system, the future direction of development is?
Patrick Dai: to the center of the trading system of my research is not much to talk about a few specific cases, the earliest to the center of the trading system is based on the colorcoin mastercoin and counterparty transactions colorcoin on the back appeared on NXT and the BTS Decentralized trading systems, followed by the emergence of etherdelta (based on the smart contract trading system), from the experience above, several decentralized trading system experience, similar to the centralized trading system of high-frequency mobile Sex, a great gap. About decentralized trading system in the order matching and order synchronization, this can find some developers in this area, consult.
Q5: ipfs really can really decentralized web and app? Not a simple one? What is the point of going to a centralized app? Patrick Dai: IPFS specific technology to achieve no in-depth study, but read the design concept, the project itself also mentioned for several years, to the center of the web and app should be serverless service to developers, as long as the interface , Regardless of who behind the service to provide. Is not a simple token, depending on the ecology behind it, bitcoin is essentially just a piece of data in a bitcoin network, and decentralized apps make sense, but at the moment many of Dapp's really just an app + blockchain as a settlement layer . However, the future of blockchain and Dapp's future will transcend the existence of cryptocurrency and will become a social infrastructure: trust. Dapp has a lot of good direction: the game (props channels), content (movie music text), Internet of things, ID and so on.
Q6: Everyone has been saying that it is necessary to decentralize and intensify the high level of Dapp's certain degree of contradictions. However, we can not just stay at the stage where btc is used as a currency and eth only serves as a currency to be raised. Developing Dapps to address user needs, that is, the need to strike a balance between a purely decentralized utopia and user application world, Dpos is a solution for now, what do you think? How to grasp the degree of the two? Patrick Dai: Indeed, many Dapp is a pseudo-concept, but cryptocurrency itself has begun to penetrate into various places as the first successful application based on blockchain technology. My consideration for the future blockchain system is that there is enough decentralization at the bottom and the application layer can be neutralized. We need a trustless bottom plus an application layer that requires trust, on the one hand, a trustless premium (trust cost Lowest) + centralized premium (centralized), Dapp still has a lot to see in the future, such as gaming (virtual assets and channel changes) digital content (movie music) Internet of Things security and management of digital identities Areas of Pratt & Whitney Finance (Insurance-autonomous finance and micro-financial services, etc.). At present, many Dapp just use the characteristics of a blockchain, that is, the issuance and clearing of tokens. The blockchain has many other features that need to be discovered and discovered.
Q7: How do you think about the feasibility and security of cross-link technology? At present, you are optimistic about this project. In addition, how to ensure the trust and reliability of the link in the chain? Patrick Dai: I personally feel that the current cross-link area is still in its early stages, both in bitcoin and Ethereum network have limited processing power, and the process of continuous evolution, I personally feel that this one cross-chain is not yet mature enough, and from the solution Just need to point out whether cross-link at least at this stage is not just a need. On the Oracle side, this is a need, especially in the popularization of smart contracts, we need the blockchain can access external systems, in a sense, the current blockchain is an algorithm-driven self-consistent Closed system, the logic is pre-set. Through Oracle we can introduce external data sources to trigger the execution of the contract. There are many directions on how to solve the problem of credible data sources. One is a centralized approach, such as providing data sources by auditing companies and government departments. Another way to go to the center is to introduce games and mortgages. Punish fraud and reward honest data sources and establish a preferred positive feedback mechanism. Of course, there are many other solutions, there is a lot of community research, Microsoft also has a cryptolet project.
Q8: Ask a funny, 10 times eth, I have been curious about this issue, high-dimensional playing low-dimensional, non-dimensional entanglement. You must have thought about this 10 times the problem or possible direction method, want to hear you talk about the possibility of 10 times the direction of eth? Patrick Dai: 10 times ETH advanced concepts and technology iteration, ETH basically invest this thing is done through the ICO done the ultimate, 15 seconds to complete the investment process (DD TS Token release). It takes a few months, compared to the traditional melting of an angel, which is a difference of 15 seconds vs 3 months. So somehow, ETH becomes the largest investment and financing platform in the world. This is also the largest application of Ethereum, but the application of other smart contracts but did not develop.
From the cash point of view there are several directions:
distributed governance (refer to bitcoin 1M to 2M process and DAO processing);
privacy and application independence and loose coupling (refer to Parity theft);
Better flexibility (more types of virtual machines and a wider range of smart contract languages);
network layering and partitioning and data compression;
new consensus mechanisms (often requiring years of testing and practice) and more.
Q9: On the current blockchain + distributed computing issues, I think in the future if the dapp market can really make it indispensable based on the blockchain program to solve the calculation, storage, node acceleration and other issues. Currently I see several projects on distributed computing are based on the construction of Ethereum, are worrying about the performance, how do you think? Patrick Dai: Distributed Computing I did not study much, but its initial project should come from MaidSafe (https://maidsafe.net/), a nearly 10-year project, essentially Proof of Resource, and many others. The type of computation is actually not very suitable for distributed processing, requiring serial processing of data that is essentially not accelerated through distributed computing, and distributed computing may be able to handle similar game rendering and image rendering needs, but I do not know How big is a market? In addition, in distributed computing, it is also a problem how to use a common programming language to describe the computing task to be calculated and submit it accurately to the computing node. This one can consult the head of distributed computing projects.
Q10: Analysis of the following characteristics and advantages and disadvantages of the underlying chain: BTC / QTUM / ETH / EOS / NEO / ELASTOS?
BTC: theological narrative, community consensus, completed from carriage to car transition, belongs to the encrypted currency attributes, but also want to do a good job of cryptographic currency attributes, UTXO and POW and some standard types of transactions, as a guarantee Secure, reliable and secure cryptocurrency system, a point-to-point electronic cash system. But this is instead the most wild imagination of mankind, and what is more imaginative than creating money?
ETH: smart contract and Dapp platform, before the rise of ICO in March 2017, Ethereum did not show any special advantages, smart contract nor any sign of mass landing, an angel of manhood, promoted Ethereum However, smart contracts are still at an early stage and are still far away from large-scale applications. However, smart contracts should be time-tested in addition to cryptocurrency. Techno-Ethereum is essentially a Global account state machine, through the contract, the funds and data of the account to operate, compared to bitcoin more flexibility. But now also faces various technical challenges.
QTUM: The Bottom BTC-based UTXO Model (Secure and Reliable) A wide variety of virtual machines (X86 developed by Ethereum EVM + Qtum) can be supported through the account abstraction layer and future support for various programming languages (C ++ Rust) to write a smart contract, is essentially a layered design, taking into account security and flexibility. In addition the underlying is already POS, and there are more than 3500 full nodes.
Both EOS and NEO are evolving toward high TPS, but at this moment, I personally feel if I'm in the public chain or need to balance TPS and decentralize. If it is for business services is not needed.
ELASTOS is based on the bottom of NXT, to achieve a distributed computing, the recent lack of attention, but NXT as the earliest implementation of a POS, account-based blockchain system, many of the back of the system is very helpful (NEM, etc. ), NXT technically made a lot of contribution to the development of the blockchain industry, but neglected to manage and operate, early token holders are too concentrated.
Q11: At present more discussion is the public chain and the basic agreement, the application of technology in the future how to develop, what application scenarios faster landing? Patrick Dai: The current blockchain technology is still in its early stages of evolution, standing in the Internet era 20 years ago, when we can hardly imagine today can be called a mobile phone uber, the development of technology to give everyone a more rich diversity The possibility is the future. From an application perspective, the blockchain industry is indeed in the early stages of its application. Cryptocurrency is relative to the blockchain, similar to Email versus Internet, but the development behind the Internet goes far beyond emailing for information exchange, Then the future development of the blockchain will certainly not stop at cryptocurrencies born for value exchange. Cryptocurrency is just the beginning. From a scenario perspective, the biggest feature of blockchain technology is that it guarantees a trustless platform through a variety of technologies, a trust-free platform that reduces the cost of all business transactions.
Q12: First ask yourself a few questions: blockchain where the biggest investment opportunities? Patrick Dai: Based on the changes and disruptiveness brought by cryptocurrency, its wealth is created faster than the industrial revolution and the information revolution. From an investment point of view, I personally feel that there are several good directions:
Encrypted currency (cryptocurrency and token) in the underlying publicchain, which basically became the industry's first token-based blockchain technology with a close combination of blockchain
Technologies and specific application scenarios (the industry is in its infancy)
Breaking Down Scenarios Across Industries (Games, Entertainment, IoT, ID, Healthcare, Supply Chain)
Organizational Change Research, Economics, Think Tanks, Deep Media.
Q13: Is cryptocurrency popular at large scale? Patrick Dai: the development of technology with jumping, but difficult to retract, with the car, the car will never disappear, although the carriage also continued to exist for hundreds of years. The advent of cryptocurrency is not a coincidence, but is accompanied by the maturity of various internet infrastructures and the enlightenment of Cyber punk movement concept. It belongs to the fusion of technology and thought, not just to technological innovation. Personally, I think the cryptocurrency is unlikely to disappear, the widespread adoption of cryptocurrency depends on the applicability of the cryptocurrency system, including what rigid demands are being addressed, and for the moment, the greatest use is to provide people around the world an option: a very fluid Transparent, credible, secure global assets.
Q14: How to build a valuation model of blockchain platform? Patrick Dai: I have sent an article before. At present, this is a big problem in the industry. We do not have a set of valuation system to realize early warning and assessment of risks. What is the valuation of a project? Before writing something for your reference. http://www.gongxiangcj.com/posts/3895 "The number of nodes and cryptocurrency valuation model."
Q15: Who is Nakamoto? Patrick Dai: From what I learned, Nakamoto was a hardworking man with idealistic feelings. It should be done independently by one person. There are many anonymous tech bucks in IRC channel in 2011 and 2012, on which you can see Nakamoto's figure. In addition to the birth of BTC, there is also some relationship with a Chinese Wei Dai. Wei Dai, who wrote Bmoney's paper before, Zhong Zhongcong and Wei Dai also had some emails, and mentioned to Wei Dai that he has implemented Bmoney's part of cryptoCurrency, but in the second part of Bmoney there is actually a tentative idea about the contract. We can refer to Wei Dai's thesis at http://www.weidai.com/bmoney.txt and Qtum's idea Wei Dai has had some simple email exchanges, but Wei Dai's interest is no longer in the circle of cryptocurrencies.
Q16: In all the coins, which one will live the longest? Patrick Dai: simply look at cryptocurrencies, BTC completed a historic jump, but also a breakthrough from 0 to 1, followed by many cryptocurrencies are 1 to 1.1 and 1.1 to 1.2 changes, more than one billion US dollars in the amount of encrypted currency thoroughly It is unlikely that it will disappear because of the drive and governance of the community that the community will uphold even if the developer does not maintain it. However, there are indeed many crypto-currencies that will be eliminated and 95% of the projects should be gone after three years.
Q17: 18 years blockchain private market analysis, what kind of industry is better? Patrick Dai: Currently the industry needs to find other applications in addition to the cryptocurrency killer app, from the technical development point of view, I personally trust the concept of trustless Platform constantly landing and provide the underlying technology research and development and application scenarios.
Q18: Which industry has the largest total of all the industries in the blockchain? Patrick Dai: Cryptocurrency itself seems to be the biggest at this moment, and others feel that there are many opportunities for the gaming industry and for digital content (video and audio) and for financial services and the Internet of Things.
Q19: Want to hear the competition between the public chain and the public relations and cooperation, how to comment on the big brother? Patrick Dai: last year's growth in the industry, in essence, we are still eating BTC created by the combination of technology and ideas, creating a human species in the history of a new species premium, BTC has its historic significance. The groundbreaking idea it brought, gradually attracted the public's attention, but from a technical point of view, what BTC can do is limited, but it does solve its positioning. Technology is not good or bad, mainly to meet the needs. BTC technology to meet its point-to-point electronic cash system positioning and needs. We do not expect to build infinite applications in the BTC above, this is impossible. The public chain is indeed an open experimental field and a community-driven evolutionary community of interests. Its vitality is also very strong. However, at present, the problem is that we really need technological progress to further promote the scene. If only from the perspective of cryptocurrency, BTC LTC DogeCoin for a user, in essence, is the same experience, and the experience of Ethereum is not much different. The difference is, BTC and the US dollar experience is very different. I personally feel that the blockchain industry is an ecology. Whether it is serving one of the areas in the blockchain and ultimately building a blockchain together, it is essentially a collaborative evolution that builds a stronger consensus mechanism. Diversity provides the basis for the choice of consensus, and if there is only one technical direction, then the evolution of technology has become slow. In addition this is only a technical factor, but the blockchain system is not only as simple as technology, there is community community of interests behind.
Q20: What dimensions are the most important when evaluating the value of a blockchain project? What factors can be rejected one vote? The Beginning: The Essential Elements of the Encrypted Currency Valuation Model (I send some thoughts that I wrote before) As the first truly successful decentralized e-cash system, bitcoin became the anchor of value in the industry and By far the most centralized network, Bitcoin is designed as an electronic currency that is secure, secure, and has a very low threshold of participation in the early stages. It is early everyone can participate, and become a full node without any threshold, anyone can download bitcoin client, early mining in his computer, so in fact the realization of the low threshold of the financial services system, everyone With the freedom to join and exit, bitcoin clients have been rapidly evolving early, and if the client is a game, the Bitcoin client's distribution is a borderless game. In P2P network, a very important core element is full node. In a P2P network, the total number of nodes basically determines the technical value of this network.
Why do you say that? In the traditional database domain and distributed system, we study the consistency of the data, there are already many, all major companies have their own solutions, but few companies have tens of thousands of distributed system distributed nodes, So most of the research results are more suitable for some enterprises to solve the solution. For example, the Paxos algorithm proposed by Leslie Lamport in 1990 can achieve highly fault-tolerant requirements based on message passing. The latter algorithm is also widely used in google Chubby lock, and Chubby lock behind is widely used in Google's core design Bigtable, bigtable is to support a lot of Google's core business.
The realization of Bitcoin network is a fusion of technology and humanity. In a traditional distributed network, in a large company's network, each node in many cases is due to network reasons, dropping or sending wrong messages, instead of deliberately forging information for the sake of profit.
The realization of bitcoin is facing a more complicated network environment, not only a more complex network environment, but also a more complicated game of humanity. In the traditional distributed network, no one will consider the introduction of incentives to allow nodes to maintain data consistency, Nakamoto was the first person to do so, and through a resource that can not be monopolized (hash function computing power ) To ensure the effective allocation of accounting rights to avoid single-point ddos attacks on specific accounting nodes.
Bitcoin network to each distributed node in the network, the consistency of each time slice into a time interval consistency, if you look at the global currency bitcoin network, you will find each time slice and time, different The miners in calculating the different chains, in fact, is a bifurcated network, but in a 10-minute time interval, the probability that the data is modified is a Poisson distribution. The probability of the attacker's success is q, The growth of the block is exponentially declining. When the blockchain has six acknowledgments, the attacker's probability of success tends to be essentially zero.
If you are the full node in a Bitcoin network, then you have the largest and equal rights to the network, and you no longer have to trust third parties or give up your rights to others. At present, many other cryptocurrencies tend to be centralized. Many consensus mechanisms realize a fast transaction processing speed. In essence, they deprive participants of their equal rights and allow the network to return to a centralized network. But if we really need to hand over our rights in the blockchain network, banks may be a better choice than a lot of centralized blockchain systems.
At present there are about 13,000 full nodes in the bitcoin network. Due to the characteristics of the p2p network, it is very difficult to accurately count the total number of nodes in the network. These 13000 full nodes bear the accounting of the distribution and transaction of currency, and are also bits The foundation of the currency. Bitcoin is definitely a more distributed clearing network than Alipay, and unlike Alipay, Alipay is just a payment instrument that serves the renminbi system. Bitcoin's global clearing network also has its own currency system --- Bitcoin Compared to a bank, opening a bitcoin "dot" actually requires only one computer to run a full node. Therefore, the final service boundary of Bitcoin is borderless, and the service objects of banks and Alipay have boundaries.
Bitcoin achieved a breakthrough from 0 to 1 and completed the carriage-to-car transition (steam engine). In fact, crypto-currencies appeared behind us. In fact, we made some improvements on the basis of Nakamoto. Indeed, we have not Take the carriage again, essentially all the cryptocurrencies are in the car.
If we look at bitcoin from a software science perspective rather than a currency perspective, the various cryptocurrencies that appear later are essentially improvements and enhancements based on bitcoin's open-source software, which many teams make And upgrading, and not much difference, whether it is to change a mining algorithm, or add some total, a lot of bifurcation is done from 1 to 1.001 experiment, bitcoin from paper currency to electronic currency from 0 To 1 transition and fission.
Today, Bitcoin has the strongest network effect and the loudest brand effect. Although the technology iteration is very, very slow, some progress has been made one after another, but it can not be surpassed from the aspect of things development. , But no matter whether it will be surpassed, the emergence of bitcoin has its historical inevitability and it will certainly accomplish its historic mission. As the world's largest distributed clearing network and built-in monetary system in the future, as well as the anchor of the value in the parallel financial world in the blockchain and the boost of crazy humanity, we predict where its future highs will be Speaking of other factors aside, cryptocurrency has opened up a new era in which its market value should surpass that of the previous wave of the Internet.
Question 21: Blockchain whether the future is required to apply for a license to do? Patrick Dai: From the future development of cryptocurrency, this is an inevitable.
Question 22: The future of blockchain in the IP field? Patrick Dai: This still need to solve the chain and chain problems, as well as integration with the existing legal system. But purely virtual assets may not be needed, such as audio and video saved in the art and electronic formats of game props and electronic designs. But no matter what kind of industry, we have to think about, in addition to the token premium liquidity brought us by the blockchain, the blockchain really helped solve what problems?
Q23: Now the real consumption of blockchain project is not much, why do not wait for the project landing, re-vote? Tencent like buying now is not too late. Estimated seed round billion reasonable? Patrick Dai: revolutionary ideas and new technology has brought endless imagination mixed with human speculation and greed.
Q24: Want to know how to treat EOS Q1 beta? Patrick Dai: the specific progress did not pay attention to too many details, each project has its own position, as long as the solution to a certain area or the general needs, I personally feel that are very valuable. But we also look at the duration of the project is also to our own positioning, if the measurement of time is one day, it is trader, if it is a month, it is a short-term speculators, if it is one year, in the block chain industry is long-term investors If it is three to five years or ten years, it's the value discoverer and the leader in technological change.
Q25: What kind of impact can blockchain have on the economic vitality of the third and fourth tier cities today? When will have an impact? Patrick Dai: I do not know this.
How to build a reliable decentralized storage system (2/2)
The key to decentralized storage
The key to decentralized storage lies in 2 points: 1. To unleash the full potential and advantages of decentralized storage; 2. Make up for the disadvantages of decentralized storage. How can we achieve them? 1、QoS(Quality of Service)
QoS is about provisioning network services to the level of guarantee required by the application layer services.
QoS mechanisms provide means for ensuring network resources required by applications when delivered to achieve the expected level of user QoE(Quality of Experience).
On the basis of good QoS, quality of experience (QoE) of DApp based on decentralized storage is also very important. QoE(Quality of Experience) The degree of delight or annoyance of the user results from the fulfillment of his or her expectations with respect to the utility and / or enjoyment of the application or service in the light of the user’s personality and current state. What are the specific metrics of QoS and QoE? As mentioned earlier, decentralized storage has the advantage of being cheap enough, fast enough, and secure enough, and QoS is to quantify and optimize these metrics until they eventually go far beyond the QoS of centralized cloud storage. Existing decentralized storage chain projects put the main focus on how to be decentralized, how to reach consensus, how to do rigorous mathematical proof, so as to prevent cheating, etc., (especially FileCoin, almost 80% of the content of it’s white paper is on mathematics), completely ignore the importance of QoS. However, QoS cannot be done from the very beginning. It needs to be gradually optimized and improved step by step in the process of project development. So early on we had to make sure that the project could be updated flexibly, because we had to try to calibrate and adjust the algorithm. 2. Excellent economic model As mentioned earlier, one of the difficulties and challenges of decentralized storage is stability. When the storage provider (miners) is unstable, it could lead to file loss, which reduces the availability of the entire platform (like Amazon S3 SLA, also one of the QoS indicators). A good economic incentive model can encourage more stable storage suppliers (miners) and punish or even eliminate unstable miners. As long as storage suppliers (miners) are stable, the availability of services (SLA) remains very high. Not only affecting the stability of storage providers (miners), economic models also encourage new storage providers (miners) to join or participate in solving the aforementioned demand and supply balancing problem of the sharing economy. The economic model is the same as the quality of service (QoS). It is not done right from the beginning. It needs to be gradually optimized during the development of the project and changed step by step. Thus, in the early days we had to ensure that the project could be upgraded flexibly because it is necessary to try to adjust the economic incentive strategy. 3. Early anti-cheating is difficult Storage proofs are less mathematically rigorous than bitcoin’s mining and hash calculation. Only the proof of the idling hard disk of the BurstCoin is very strict, but the BurstCoin consumes hard disk space with unmeaningful hash data and it is unable to provide storage and upload services. Storage proofs such as PoRep(copy proof) and PoSt(space-time proof) introduced by FileCoin in the white paper are mathematically not as simple and rigorous as Bitcoin, but are very complex and undermined by low-performance. And subjected to the Impossible Triangles in the blockchain, that is, security and performance are at odds. If behaviors need to be rigorously proved, performance will be very low and the comparative advantage of centralized storage will be lost. The source code of the FileCoin has not been opened for so long, partially due to the rigor of the proof. Therefore, it is difficult to consider the rigor of cheating in the early days. It is proved that the method of spot check and miner mortgage punishment should be adopted, but there is no guarantee that the hacker cannot find loopholes to take advantages of. In order to reduce such risks, the most effective way to achieve service with some super nodes, then realize full decentralization service. Service with super nodes refers to the way in which the supervising organization of the certification adopts the mode of alliance. There’s threshold to enter and obtain permission, and the nodes guarantee not to do evil. This can greatly simplify the difficulty of authenticity. This is more conducive to ensuring the performance of the system. We have an idea that to keep the code of the proof algorithm not opening source for a period of time in the early stage. After verification by the market and a period of time after the algorithm matures, it will gradually open source and eventually be fully open source. This is also an effective method to reduce early risks. It is believed that Filecoin will probably adopt this scheme. …… 4. Flexible and easy to upgrade architecture and governance mechanisms are very important Since both quality of service (QoS) and economic models require an iterative process, it is important to build a flexible and easily scalable architecture. Decentralized storage is not used for projects such as Bitcoin, Ethereum, etc., because they are projects that write all information to the blockchain. As to the decentralized storage, only incentives and contracts need to be written to the blockchain, and the actual stored files do not need to be written to the blockchain. As a result, there is no need to be completely decentralized in one step. I think the appropriate path to decentralized storage is: Firstly, to build a centralized network, then multi-center, and finally a decentralized network. In phase one, services other than users and storage providers (miners) are central, such as scheduling and indexing, similar to Bittorrent’s Tracker, which allows rapid iteration of P2P algorithms and economic model policies. After a period of verification, it can become multi-center, inviting honest and powerful nodes to join and become a alliance chain. Finally, when the algorithm is proved to be efficient and safe, it goes from the super node mode of the alliance to the decentralized stage where everyone can participate. Based on the above considerations, we started the PPIO decentralized storage public chain project. Our goal is to develop a decentralized storage public chain that takes the quality of service as the primary factor. I will continue to write articles about the public chain of PPIO to explain the characteristics and principles of PPIO. Please look forward to it.
Because of the above considerations:
For this reason, I found Bill and started up the PPIO decentralized storage public chain project together. Our goal is to develop a decentralized storage public chain that prioritizes quality of service(QoS) and good ecosystem. Later, I will gradually write some articles about PPIO chains to illustrate the characteristics and principles of PPIO, please look forward to it.
So many thoughts come, in my hunger to record the shape of that which ails me. Memories, imprinted like typewriter keys on the wet, spongy mass of the brain, feel transient, like ancient scrolls or commandments inscribed on crumbling slate, eroded by desert winds in unfathomably ancient ages. The memories of a man, fragmented in time - wet with horror and delusion. For some reason, softer memories of childhood rise to the surface sometimes, like leaves in a dirty backyard pool, only to become too raw and shamefully unclothed when exposed to the sunlight of a middle aged man’s temperament. I remember games of Checkers with my great Grandfather, Ildor Hearst, who appears in my mind’s eye as a-kind-of Russian Santa Claus, wirey beard and carven forehead. He was a stern man, and would always be ranting his archaic religious views. Prostheletising the fall of modern Babylon and the age of the Nihilist. He would play Checkers with me, sharp movements, wooden circles slammed down with impunity. He never let me win. Saw his dominance as a matter of instruction and learning. As I look back nostalgically, sometimes, I yearn for Great Grandfather Ildor’s black and white mentality of good and evil, lightness and darkness... and an over arching confidence in the eventual triumph of mankind. Rather than the bleak reality of the post modernist distopia in which I live. I recall vividly, after those intense games, once Ildor had imparted his thorny wisdom, I would be granted relaxation and be free to play with my own toys, scattered around my grandparents wooden floor boards; Mutant Ninja Turtles and Transformers, Wonder Woman, Spider Man and He-Man. Mine was always a multicoloured world of complex morality and democratic voices ... all of which ran into muddy paradigms that seemed totally outside the circle of Great Grandad’s moral compass. These days, as a real estate Agent, I am occasionally gifted limited insights into a checkerboard like world of manipulation and sinister intentions, but mine is to perceive the evil of global finance, and the general unfairness of land ownership and rabid, unchecked capitalism...but with no delusion of an interventionalist God to pull us out of the hole we humans have dug for ourselves. My name is Vilson Hearst, and I am a Real Estate Agent for Steel City Real Estate in Hexton, Australia. Perhaps you think yourself free from the real estate game. Perhaps, you are a fool. Perhaps you are satisfied with your lot in life, making a simple way for yourself, with a mortgage and a family, (if you should be so lucky to afford to get into the housing market at all that is). Then, could be that you are living a student lifestyle, paying rent, constantly paying off another cunning man’s mortgage, or worse still, perhaps you have abandoned the fight, to cower in your parents basement, with the real world slowly closing in on you, as you desperately try to escape into a world of Hollywood movies, video games or creepy pasta. You are all in the real estate game, wether you like it or not. There is a broader game of capital and estate, which is increasingly complex, and even those like myself who’s job it is to ‘follow the money’ sometimes are completely lost at sea in the Darwinian struggle of the global free market. Studying finance at Bourkeley University,.. I did my PHD thesis about money and the aquisition of power. I spent a solid year, studying the major players in global banking, watched the Chinese ICBC rise to become the wealthiest banking institution in the world. I tracked the strange and secretive trails of the richest investors, after the terrorist attacks on September 11, watching money transfer around the globe in secret trust funds, private meetings of powerful elites in Shanghai—as the Chinese World Trade Centre “Tower Three” was built, in the image of the destroyed Twin Towers of New York, (which is no coincidence, given it was constructed by the same architecture group; Skidmore Owings and Merril, (who also constructed the replacement One World Trade Centre.)) I studied Wikileaks and other whistleblower organisations. Gained secret documents, and learned of meetings between wealthy individuals; John Fallon, the chief executive of Pearson Education, the company which controls half the worlds schooling institutions— made a private deal in 2015 with Indra Nooyi and Paul Bulcke, Chairman and CEO of Nestle and PepsiCo, the owners of the majority of global food and confectionary. You wonder why our children are so desperately obese. I was constantly surprised by the familiarity of these billionaires with one another. For instance, you might not know, that Hugh Grant, the CEO of Monsanto, the sinister company who has come to dominate a stronghold on global agriculture, (and who, among more nefarious acts, was responsible for manufacturing the deadly ‘Agent Orange’ poison in Vietnam and causing countless generational mutations).. just happens to be close friends with the CEO of Lockheed Martin, the dominant power in weapons manufacturing and ultimately what people mean when they talk about the ‘military industrial complex’. Guns don’t kill people. Corporations do. But you knew that already. Other minutes from meetings by the powerful, would have many questioning what the leaders of certain organisations could possibly have to discuss with each other,... such is the nature of the unheard of D40 meeting in a chateau in Shandong Province; where Barry Lam, chairman and founder of Quanta computers, the name behind the majority of computing technology, was recently in discussion with Carlos Brito, the CEO of InBev; the name behind all the major alcohol players—Ian Read, the CEO of Pfizer, who basically controls the entire legal drug market, Mark Zuckerberg and the CEO Of Alphabet Inc— who own Google and most of the rest of the internet. Now these meetings bare direct relationships with the stock trading happening in the World Trade Centre Tower Three in China. The minutes from these meetings contained discussion both controversial and amazingly nuanced, and the complexity of the global solutions some of these key players in the tech revolution were coming up with would’ve gone over the heads of even the top IQ holders from 98 percent of high schools in the world. Nonetheless, some of the darker plans by these shady monopolies would terrify you, more than you could possibly know. To understand Australian land ownership, the problem becomes more of a global puzzle. The figures who own the most land globally, are, the King of Saudi Arabia, The Pope and the Catholic Church, Hugh Grosvenor, Duke of Westminster certainly has a cut, and of course, the Queen of Britain herself, Elizabeth ...(who currently owns about a sixth of the worlds land, some 6.6 Billion Acres, more commonly known as the Commonwealth Realm, (which includes two thirds of Antarctica, Time Square in New York, Canada, New Zealand and of course ... Australia.) These people, i’ve learned, are not particularly interested in the debate around land ownership coming to the forefront of the global conversation, and billionaire media moguls like Rupert Murdoch and Andrew Packer have filled their bank accounts, making it their mission to keep just such subjects off the family dinner table, with distractions like ‘My Kitchen Rules’ and ‘Keeping up with the Kardashians’ filling Australian television channels. The question of wether anyone owns land in Australia, or if it is in fact all owned by the Queen of England, is a contentious one, particularly when you factor in the confounding elements such as the status of Norfolk Island, which at one time was, on a technicality, not owned by anyone except for the fictitious body ‘The Crown’ (until being taken over by the Australian Capital Territory, in 2015). Then when you consider the original claim of the British that the Australian nation was unoccupied or ‘Terra Nullius’ when Europeans arrived, a truth widely held as fact until the precedent of the Mabo Decision in the Torres Straight islands in 1992. This decision returned some land ownership rights back to certain aristocratic lineages of the native people. However, the paradox leaves a complex and enduring problem for the future of land ownership in Australia and what that exactly entails. In Hexton, the most rapidly developing city in Australia, corporate billionaires have their stakes in national land ownership, yet meanwhile... National Parks, Botanical Gardens and other public spaces are unapologetically ‘Crown lands’, a fact which is still testified by the names of the spaces; Kings Domain, Queen’s Square, and other titles which clearly and proudly display the heritage of monarchic ownership deeply entrenched within the Australian property market. Of course, even within the field of Australian National Real Estate, the individual estate agent becomes bogged down even further in matters of local estates, so that these important issues take second stake to the sales and acquisitions of the day. Steel City Real Estate, the company I work for, is a nation wide brand, but our particular office in Albert Park consists of about nine agents. I spend most of my time competing with the golden boy of Steel City, Greg Leisdadt. Greg has consistently won the monthly sales targets in our office for over a year. His desk is covered in trophies, awards, and framed certificates adorn the walls behind him. I’m not sure what words could aptly describe Leisdadt; his wolf-like eyes, both evil and mesmerising. A cannibal grin consisting of Colgate super white teeth, and those gelled locks of amber hair which hang impossibly, like an arch villain over his forehead. Greg oozes saleable confidence which grates my own nervous disposition sufficiently towards constant despair. The only force which makes the constantly eclipsing day to day victories of Leisdadt bearable to me is Natasha Valuvjdavo. She is the agent who sits on the adjacent table to me in the office. I confess, for some time, I was profoundly attracted to Natasha, and had to stop myself from gushing and fawning over her. She is a demure, and assertive brunette, her crimson lips could kill a boat full of sailors. Unfortunately, she is engaged to a man named Fred, who is something of a wet blanket, yet I must discard my jealousy and confess that for whatever reason, Natasha seems happy in her domestic life. My only solace in this, being that Greg Leisdadt, the man who has everything, although persistently flirtatious, has never made a dent in Natasha’s self security. She is thankfully not attracted to him. But now I should refrain from being sidetracked and talk about the subjects which, you, the reader, more likely desire to hear of. For my tale is no idle blathering of romantic ennui, or global conspiracy—but rather the trauma of my profession, does persist— in both being exposed to the ruthless game of money/power, but moreover being haunted by knowledges both gothic and Victorian. For there is no other game in town, where one is more exposed to unwanted or haunted real estate; the devil hounded, and the wished forgotten. There are the houses that are impossible to sell, because of brutal or public bloody murders that have occurred to the prior occupants. Wether psychological or other, the frequency of those who purchase such forbidden and damned abodes —then in no matter of time, flee and sell at carelessly lower settlement costs, with tales of unhallowed things returned to life, or clanking noises in the basement...why... this simple fact of the real estate market is as common as there is. A story as old as time. Now perhaps I could spend months repeating the folk lore surrounding that dilapidated and spiritually unsaveable address; that run down, trash infested garden, and collapsing terrace roof of no 13 MacArthur Street. But this could take a conceivably longer time period, and I shall reserve my energy for the most disturbing and horrific of these preternatural experiences. Though I should briefly mention Vernon tower, for though this wasn’t the property which near drove me to insanity, it factors too far into the disturbing tapestry of the veiled or hidden real estate scene. Now, Vernon tower, is an enormous building in South Hexton. Our agency deals more with rentals than with sales of the apartments in that old, and curious piece of architecture. Built as early as 1866, there has always been something profoundly wrong with Vernon towers. Of course, it is me who has to deal with most of the tennants of that foreboding block, for it is the Hearst legacy to be fated just such dull luck. Thus it is always, I, who takes the phone calls from disgruntled students and drug addicts; Vernon Tower is unprecedentedly cheap, due to its history. Yet the impoverished clientele still have no issue burning my ear off; to complain of strange mechanic noises, or those bizarre phosphorescent green lights. Then there was the girl who tried to sue us, after her seizure from what she claimed to see inside the laundry room. That manner of description I can scarce repeat for its absurdness and high strangeness. But let me get to the more dreadful incident which frightens me even to recall. Indeed, it had all begun with that infernal property in Elwood, which I was in terse competition to sell... pitted unwittingly against the undefeated Super-Agent, Greg Leisdadt. The spectacularly immense mansion on Ormond Road, was once occupied by billionaire Serbian entrapaneur Dimitrije Stojanovic, who I’m told partially drafted the architectural plans for the immense mansion himself, before he had it constructed on the corner of Ormond and Radkin Streets. The nature of the oddities surrounding that place however, extend not from the architectural style of the lot itself, (mind you those odd modernist geometric pylons, stepped piers and sail-like rooves do lend a kind of funereal gothicness to the address.) However, it was the murder of Stojanovic which caused true fluctuations of interest in the property. Given the public knowledge of the horrendous murder, the property value was incalculably lower than its market worth. It seemed the image of the alleged burglar breaking into Stojanovic’s window, and bludgeoning him to death in the lounge room with a heavy trophy or statue of some kind— somehow grinding his skin off as with multiple teeth, or a spiked club—stayed in the public mind, thanks to Channel 9’s ‘A Current Affair’ and their sensational program about the incident. For interest in the property remained uncharacteristically low. Perhaps the fact that the murderer has yet to be identified or captured by police, nor the murder weapon found, hasn’t helped the matter. Now, as I have mentioned this was not the first time our staff had dressed up a ‘murder property’. But the truly disturbing elements began to happen during the time the property came under my tenure. Now, I should proclaim sincerely that I am by no means a superstitious man, I admonish my readers to believe that I was just as skeptical about the soon to be foretold events as you, had I not experienced them myself, I should fiercely doubt my own sanity. I should also divulge a little more information about Dimitrije Stojanovic himself, (the owner of the grand mansion) as the web of intrigue very much seems to hinge on his professional history. Stojanovic made his billions in Silicon Valley, working in many aspects of the tech industry, investing timely in companies like Facebook and crypto currencies like Bitcoin, when the time was right. in the move to Australia it seems that his ambition was to try out his own company idea in the developing market of Hexton, where the game was not already dominated and over exposed. With this intent he came out, built his immense mansion in Elwood, Moonsmoth, and immediately started channeling his money into the development of something called .....‘DigiTown’. Now being neither a tech expert myself, nor expecting such of my audience, I will explain the fundamentals of the ‘DigiTown’ concept in the same manner it was explained to me by Neil Druton, a four eyed nerd with an immense forehead who was one of the developers working for Dimitrije Stojanovic, before he died. I had decided to interview Druton, to get the background on the Stojanovic case to find a more positive angle for investors. I figured if I could distract the buyer from the details of the murder, and big talk the profile of Stojanovic himself, “the prolific entrapaneur”, this might flatter the egos of other wealthy entrapaneurs to buy it out. Druton told me he had been working for Stojanovic for about six months, mostly at the office Space Dimitrije was renting in Southbank. He described Stojanovic as ruthless, and borderline insane, but nonetheless he spoke of ‘DigiTown’ with respect, a ‘unique’ and ‘brilliant’ project, which would have been at the forefront of the tech industry, if it had ever been finished. Put in layman’s terms, Druton explained that the project had a great deal in common with Bill Gates plans for a ‘smart city’ but on a more achievable scale. I could tell Druton was oversimplifying the description for my sake, no doubt parroting Dimitrije’s marketing pitches for investors. But he described it like this; ‘Imagine a kind of augmented portal, with a built infrastructure and virtual architecture planned by white collar professionals, a crypto currency run communal space, overlayed over a modern city space, where your own request portal is linked to different reference cubes; Town Square, Library Cube, Media Station, Entertainment Centre, Eateries, telematics and roads authority, and these all function via the same channels as an actual city.’ ‘So you mean, instead of one social media interface trying to network everything, the actual infrastructure of a city is built out within the media itself?’ I asked. ‘Yeah pretty much’ Druton replied, seeing I had sensed the practical nature, adaptability, and profitability of the software, all over the world. ‘ATMs, shops, business, smart cars and machinery— all worked into the same dual augmented system. Superimposed as a direct collorary.’ It got me thinking paranoid, and I asked Druton earnestly; ‘Do you think if another rogue in the tech industry knew about Stojanovic’s idea, it would have been a groundbreaking idea enough to have killed him over?’ Druton went silent, and sweated a little from his pimpled forehead. I didn’t need to hear him answer the question, it was written all over his shrivelled face. I spent a good couple of months doing my research on Dimitrije’s mansion. (I would’ve loved to cover up the existence of the current owner of the mansion). Rich heiress Stacey White bought the house, and lived in it for a month before she got spooked— and decided to resell it. I made sure to get the story straight, offering Stacey a hot cup of Bush tea, and asking her precisely what she saw. Here’s what she told me; ‘I was alone, in that creepy mansion, at night,... and I got a weird feeling. There was a strong wind, and it was dark. The gum tree in the front yard bends a lot in the wind, and sometimes the branches whip against the side of the house. I was just getting used to that noise, but this time it was something different, almost lost in the whistling wind. It was a lower kind of ...moaning. A deep, pained groan. I got up to check I hadn’t left something on in the kitchen. I went to turn on the light switch but the globe burnt out. That’s when it happened. Almost like a mini-earthquake, but there was this strange energy. Then the gas stove just lit up, a green flame. It wasn’t on, but the kitchen was illuminated in a kind of underwater hue. Then—-(Stacey began to gasp and sob)—-then... in the darkness — I saw it!! A green head! Half a Human head, but mangled, half the skull bashed in, shimmering like I was looking through glass. It spoke to me ....in a voice that made the room cold. Just—-(she broke down into tears, suppressing a scream). H—his lips... cold, green lips. Steam coming from his mouth. He said — he said—- ‘Beware the Wagluh’. As this point she became incommunicable. I felt an increasing sickness in the ensuing weeks, the cause was unknown, but chiefly matched my mental state. It must’ve been around this time when I first saw the strange rune which had been spray painted on the abandoned building in Elwood. I was doing my rounds, why I should’ve noticed the strange glyph remains beyond my understanding, yet there it was. A curious, green shape, interrupted by a stark arrow and a kind-of ladder shape above it. I was becoming increasingly stressed and agitated by the competitive sale of Dimitrije’s mansion. My manager Herron Del Ray had been hounding me to make a sale, it had been months since I had successfully got a down payment from a client. Del Ray had threatened redundancy in no uncertain terms, and the stress was beginning to erode my total mental well being. In conversations with my beautiful colleague Natasha around this time, I found her to be kind, but not particularly helpful. Her advice was that if I was going to beat Leisdadt, I would have to compete with him at his own game. She told me on one particular occasion I should just lie to clients about the gruesome murder in the house, or omit it from the description altogether. This was both against my moral compass, and senseless, for the case was so popular, I felt sure that any potential investor would know of it, to omit it would only anger them. That same day I got a call from a potential buyer named Greame De Montague. Leisdadt watched me like a hawk as I took the call, giving me a cunning look. The stare flustered my nerves, but choking through the phone I agreed for an inspection with De Montague. He would be the fifth buyer I had spoken to, all four previous investors had abandoned their inquiries when learning more about the murder, or after having seen the contract of sale. I calmed myself the day of the appointment by speaking soft mantras to myself under my breath. I knew I had to push this client to a final purchase, and my job security depended on it. Greg Leisdadt was leaning against the bronze statue of a Cheetah in our office as I was leaving, mocking me with the words ‘Good luck, Vilson old boy.’ It was a cold autumn day, and brown leaves blew around the streets in gusts of curdled wind. I had arranged to meet Mr De Montague on Beach Avenue, so that we might walk down to Ormond Street and view the mansion. As an eerie coincidence the corner we agreed to meet was precisely at the point that odd rune was sprayed on the abandoned building in Elwood. Greame De Montague was standing on the corner as I arrived in my light grey sedan. He was standing in front of the odd rune, as though the symbol itself had somehow marked his presence in an unexplainable yet mystical time stamp. I couldn’t see his car parked anywhere. He was wearing a very curious oufit, particularly for Australia, although the weather was reasonably cool that autumn day. He wore a kind of black velvet robe, cut in the shape ...not unlike an Orthodox Jew’s regalia. It tarried at the bottom into a sort of deep purple cape. On his head he wore a buckled Capotain, and in his hand, a decorated staff. I wondered if his clothing indicated the excesses of vanity of the social media age, or if he was perhaps a foreign prince of some kind. I stepped out of the car, and approached De Montague with my hand extended. I could see now he had a strange face, with slanted owl-like eyebrows, and a fluffy round beard that gave him an almost koala-bear-shaped head. Mr De Montague raised his hand and met my embrace, shaking my hand with a firm clasp. ‘It’s lovely to meet you Greame. I have a feeling you are going to love this property.’ ‘Please. Call me Lord De Montague.’ The stern man insisted, ‘I descend from Carpathian royalty, the son of a Duke.’ ‘Very well M’lord.’ I replied, my tone accidentally tinged with irony, ‘Have you come ...very far today?’ I asked trying to distract from my faux pas with a bluff of small talk. I couldn’t help staring at the strange Necklace around De Montague’s neck. It seemed to be made of solid gold, and was comprised of a chain of large charms, each coin depicting deities from Ancient Asian and Mesopotamian religions. I began walking, unsure what to say but deciding to lead De Montague down towards Ormond Street. There was a terrifying stillness on the street that day. The sun dried grass seemed frozen in time, and the grey sky moaned geriatrically, with the energy of a tired giant trying to fend off the vast abyss of Space. I noticed that De Montague was not moving, but had instead stopped firmly in his tracks. His face gave off a distinct lack of pathos. ‘Mr Hearst.’ Lord De Montague’s grainy voice echoed; ‘This is the wrong way.’ I turned and looked back at him confused, but De Montague quickly supplanted my curiosity ‘We should walk down Vautier Street. It comes out closer to the property on Ormond.’ By my own calculations, the distance was exactly the same, but as I was in a desperate state of flattery, I decided to humour the strange, old man, though I now questioned wether my client might be an eccentric madman, who merely thought he was born of Royalty, in his delusions. Nonetheless, I followed De Montague and we wandered down the leafy, terraced streets. ‘Tell me something Mr Hearst’ De Montague began to speculate; ‘Have you ever heard the expression ‘Old Money’?’ I looked at him trying to gage his meaning; ‘Yes, of course.’ I replied. ‘The man who owned this mansion’, De Montague continued in a practiced refrain; ‘It is my understanding he was one of the new breed. Wouldn’t you say? Those who make their fortunes on the gamble— or the changing technologies of the world, but haven’t yet come to fully comprehend the system as it works. As it has always worked.’ ‘I’m afraid I haven’t come to fully appreciate your meaning.’ I replied with honest perplexion. ‘My ancestors were very interested in Asian spirituality’ De Montague continued in a seemingly distracted soliloquy, ‘The De Montagues have migrated for some time you see. Sharing something in common with the Romani people of Europe. I have had ancestors who have lived, over the centuries, in Vietnam, Thailand, Cambodia, Mongolia, Papua New Guinea and the Phillipines. Do you know what is the one thing these vastly different cultures all have in common?’ ‘I do not’ I confessed. ‘Reverence for ones ancestors, and respect for ones elders, and an overwhelming policy of acceptance towards the natural systems that have always existed.’ ‘That’s very interesting’ I replied, gawking about anxiously and wondering where the conversation was leading. ‘I have only more recently come to adapt the principles of the Japanese Shinto religion into my philosophy Mr Hearst. However I think we could all take a page out of that discipline, and it’s superior attitude towards the unknown. You know, in some sense the Shinto practitioners had an almost scientific approach to their spirituality. Certainly, like with the Eastern superstitions, the Shinto perceived a longing towards extra sensory insights into a hidden or secret world supposed to lie beneath the surface of our material life. However, we can say that the Shinto practitioners never got into the awkward and complex dogma of hierarchical worship. Rather, they merely approached each of their animistic inhabitations of spirit that they encountered with the proper fear and respect that one should properly apply to creatures or Gods we fail to yet understand.’ ‘It’s an interesting religion.’ I said, still utterly confused as to what the eccentric prince was attempting to convey. ‘I see you’ve mistaken my warning.’ De Montage continued in a more stern and serious tone, as we passed rows of trimmed hedges and decorative fences. ‘It is right to fear that which we don’t understand Master Hearst. We ought to treat our material supervisors with more respect. Now, I confess, it has never been the object of my ancestors to worship the unseen. Only a fool wishes to make a slave of themselves to a devil they don’t know. But respect, awe, fear, that is different. That is the core of wisdom. Now.... I confess to you... My own aristocratic ancestors, have had more of a vested interest in acquiring artefacts and precious minerals that can absorb such unknown energies. To tap into the mechanisms of nature and the outer spheres of unseen chemistry, that is where one can find the tools to bring about the acquisition of power!’ I began to become totally speechless, realising now, that I was in the presence of a lunatic. We were still about five minutes from the Serbian’s property, and De Montague now began to rave in such a strange and sinister manner, that he appeared some demented imp, his lecture was so insane. ‘So it was for the ones who claimed the future. Those beings with silken robes of silver, who sought the forbidden wisdom from beyond the abysses of Space and time. They are like the watcher, and we are but the conduits to their ancient digital powers. Yet if you could perceive the outlines of the Shapeshifter, who is the lost among us all, and he who brings the bitterness from the original tragedy. Then, perhaps you could understand what the Hindu’s really worship, in the form of their metamorphosising God of many evolutionary attributes.’ Mr De Montague suddenly stopped, slamming the steel cap of his staff upon the cracked concrete, and turned to me; ‘Mr Hearst, this is my warning for you! You cannot outwit the darker destinies of the force that itself conjures black holes. Have due reverence for the unseen beast which lurks beneath, and threatens your soul with eternal mutilation. Stand down from that property, and abandon your research into the disappearance of that accursed Serbian. I send this warning as a friend, and wether or not you take it up, I tell you that your colleague Greg will still make the sale, whichever path you choose.’ De Montague suddenly scowled like a rabid dog, grabbing my hand and thrusting the handle of his cane upon my palm. ‘Cursed child— I have the power of the Chiromancer, and that which is engraved upon your line of fate, makes it clear. But there is still time to evade the mark of this warning.’ Suddenly, I shrieked, for my palm began stinging with pain, and I realised that the silver etched handle of the staff was unfathomable degrees hot. I pulled my hand away before the impression became irreversible; ‘Ouch, you burnt my hand!’ I cried. De Montague then seemed satisfied that his message had been delivered. He immediately hoisted back his staff, then let out a sound almost like a wolf’s growl. Then he seemed to perform a magicians trick of some form. For he cast the staff down at my feet, but as it fell there, a glimmer of light played a trick on me. I stepped back in fear, for that which lay across my feet, was no longer that of carven wood, but a coiled brown snake, who raised itself and hissed through fangs, and quivering forked tongue. I turned and dashed out of the snakes attack perimeter. I gazed down at my stinging palm, to see with terror and trepidation that the burn mark in my hand imprinted from the image on the cane— it was the same strange glyph that was painted on the house. Panting and sweating, tripping over my clumsy feet, as I rotated again to survey the scene, I saw now with incredulity the brown snake remained upon the pavement, but De Montague himself was long gone. The hoax plagued me for hours afterward, I had been pranked it seemed, by some rich and bored eccentric trickster, who never intended to view the property at all. Or he was an escaped lunatic from Bourkeley Asylum perhaps. As I was already in the area, after a sufficient down time, when my heartbeat had reduced and my manic paranoia dissipated —I resolved to continue to Ormond Street anyway. When I got to the property my fading anger was rebuked, for I saw two cars parked outside the late Serbian’s mansion. ‘Leisdadt’ I cursed. As I walked up the modern staircase, I saw a cheerful looking man m, wearing a scarf, leaving, who Greg had obviously just shown around the property. He seemed fearfully optimistic about the place, and I continued cursing under my breath until I reached the hallway where Greg was standing, smugly, with a clipboard. He seemed even more satisfied when I came to the door; ‘You better watch out for that one’ Greg said in a tone that sent me into a rage; ‘He seems very keen. What happened to your 4’oclock?’ ‘Someone pulled a prank on me’ I cursed. I began to wonder if Greg had organised the incident with the charlatan somehow. Leisdadt tried hard to refrain from breaking out into a grin, ‘That’s a shame. Your luck has to come up one day Hearst.’ Leisdadt chuckled, but then seemed to remember something— ‘I thought you signed off on the clearance papers anyway Hearst.’ He said, ‘After Stacey White complained about the dead guy’s stuff still laying around, I thought you had the house completely emptied.’ ‘What of it?’ I asked. Greg leaned over to the ornately decorated mantle piece, pulling open the dresser drawer below the mirror and revealing a stack of haphazard papers and letters. ‘Can you take care of these?’ He insisted coldly, ‘I’ve got a last minute potential sale of that impossible property, 13 MacArthur Street. Can you believe my luck? We haven’t had a buyer for that place in years.’ I scowled into my neck as Leisdadt left via the rear entrance of the mansion. Grumbling and moving towards the papers, I cursed myself for so easily being persuaded to do what Greg could’ve done himself. I mumbled, calling myself a sucker under my breath as I leafed through the papers. Then, I turned over something which captured my interest. It was a sleek black diary, and as I turned the pages I came to realise that it had evidently belonged to Dimitrije. I flicked through the musty pages, seeing that the entries of the private journal dated up until the Serbian’s disappearance. I began to read with fascination and morose intrigue; Here is the transcript of the more interesting parts of Dimitrije's diary: http://textuploader.com/dh4w4 Dimitrije Stojanovic died on the 13th of October, 2016. The strange diary had a terrible effect on me. I became deeply paranoid that I was wedged within a catastrophic and deep conspiracy. Though I couldn’t fully understand the map laid out by the corners of my discoveries, there was enough of a pattern that I knew there was some terrible logic beneath it all. I found the references to Vernon Towers and the architect ‘Von Marrickville’ extremely intriguing and began to further my own research on the property which was already familiar to me. I had always known that Vernon Towers was an old heritage building. But I had never researched the buildings actual construction. So it was, that I found out more about the strange creator, borrowing a book about the eccentric architect Veda Von Marrickville from Hexton library. The book was fascinating. Von Marrickville, it turned out was a fairly prolific architect of the day, who was commissioned to build a series of buildings around Hexton city. Of particular interest to me, where the four or five buildings Von Marrickville built in a kind of arc around Port Phillip Bay, pointing towards Valsbury docks. Von Marrickville was a Dutch native who came out to Australia in 1834, one of the key buildings on the Port Phillip Bay side of Hexton was Vernon Towers, which I read to my astonishment was funded by a wealthy nobleman named Aaron De Montague. I couldn’t find out much about the De Montague family or their history in Australia, but I was beginning to think it must have been the same family as the De Montague whom I had met. Von Marrickville describe Vernon Towers as an ‘occult conduit’ and layered it with engraved symbology. He suffered a tragic fate, and wound up raving as an inmate in Bourkeley Asylum. Since reading the diary, I have begun to experience strange anomaly. I visited Vernon towers myself, looking for a particular architectural feature. To my surprise and terror I saw one of the green glyphs mentioned by Dimitrije. I tried to track down De Montage, however have not seen him since that odd encounter. Searching for families of that name, the only people I could come across in Hexton was a family living in Brunswick. When I went to visit I found them to be a strange family of Indonesians who incidentally suffered from an unusual diverse range of diseases. The youngest daughter suffered autism, whilst her brother was an extreme Down syndrome case, and the mother herself had mental health issues. I concluded that these De Montagues probably bore no relation to the man I had met, if indeed he hadn’t lied about his name. Then there was the day I found that bizarre egg. It was about the size of a milk carton, all speckled and grey, but it was broken in half, as though it had hatched. Yet I was positive no animal could have produced the egg, and could only assume that it was a student art project or installation of some kind. In any case, it seemed unrelated to the other strange occurrences. I feel as though my sanity has completely abandoned me, torn more and more towards the point of collapse. Leisdadt has sold the Serbian’s property, and I haven’t been to work for a week, for fear of the consequences with my boss. But worse, I’ve started to smell a.... to sense something. Something that I recognise from Dimitrije’s descriptions in his diary. How is it possible to sense the form of something that you have never seen. To know it sometime. To dream of a shrieking thing that soars through a red sky. That mosquito like head. Immense lizard like body, bone and ribs, like a sharks egg. Black leather wings. There was a brown parcel that arrived in the mail. The statue inside matches the description given by Dimitrije. It’s so hideously disfigured. Does it represent the swimming demon in my dreams? I examined the edges closely, and the inscription which seems to be flecked with blood. Could it be the murder weapon they used to bludgeon the Serbian? What of his shredded corpse, what tore his body apart? As I sit, hailed up in my lounge room trying to distract my mind with escapist television, and recording this journal on my IPad. I fear something unfathomable which seeks my destruction. I can hear noises, am I hallucinating? Dear God! That banging outside the house.
It's time we had a talk about mining and markets... and scams... and other nonesuch...
Hello Bitcoiners. My name is Joshua Unseth. I'm not an economist you've ever heard of. I'm not really anybody. But I've been doing this for a long time, and I keep seeing the same thing happen again and again and again with regard to new entrants into the Bitcoin space. So, I thought it might be time to sit down with me in front of the proverbial fireplace, and have a little talk about markets, mining and all other sundry topics. Why you ask? Very simple. I'm of the opinion that you ain't a Bitcoiner until you've been scammed. Everyone gets scammed. And almost always, it's a giant slap in the face reminding you of your hubris... and trust me, you are full of hubris. Before we start, let me give you an illustration that characterizes how the rest of this little article will go: If you walked into a room with no prior experience and said that you were going to be the greatest basketball player of all time, everyone in that room would rightly laugh at you. Likewise, if you walk into Bitcoin and think that you will be a successful miner, don't be taken back when you get laughed at. Like everything that people develop expertise in, there are those whom are good at mining and there are those whom are bad at mining. Before you begin down the long path of Eureka moments regarding Bitcoin, economies, the nature of money and everything else, let's get out of our system a few base rules that I think most of you will agree with: 1) deep markets are efficient, 2) scammers suck, 3) regulation is a bitch, 4) I'm an idiot... and so am you. The most important of these assumptions is #1 and #4. If you want to understand why, I highly recommend you read my super boring blog post about why deep markets being efficient and you being an idiot are so important. Here's the thing about mining. Everyone who comes to Bitcoin thinks that they have things figured out. You can buy this money-printing machine called an ASIC, and voila, you will have yourself some bitcoins. But that just ain't how it works. I know, I know, you've run the numbers. You know that the miner that you're buying will pay for itself in 3.46 months, and everything thereafter is ka-ching ka-ching profit baby. I know. You're wrong. How do I know you're wrong? Well, it's very simple. I know you're wrong because deep markets are efficient. And while Bitcoin itself may be a woefully shallow market, mining is competitive. Very competitive. Very very hyper super competitive. And because of that, I know that you are wrong. But how could that be? You've run the numbers? Why am I disagreeing with your math? It's math right? It can't lie... No, math is math is math is math. The problem with new to Bitcoin people is that while math may be math, I know something that you don't know, and it's simply that the implications of something like markets being efficient is that in a world where there is a highly commoditized good or service, the profit of that good or service will move toward $0. That's right, $0. What's more, as people who actually have some specialized knowledge of that good or service begin providing service in the market, it's likely that profits for the average person who does not have knowledge will move to -$n. Moreover, if we believe in the fundamental rationality of humans, that they will act in their own economic interests, you have to consider the fact that the calculation you did to show these miners will pay back in under four months is the same calculation that these ASIC manufacturers are doing. Wait what? So the miner makers know that they are selling you an object that you will run for 6-8 months knowing that your pay-off is in 4 months? Really? You believe this? Here's the thing, in a world where you pay $10k for a miner (let's go with base 10 because it's easy), and you will make all of that back in 4 months, that miner will make between $15k and $20k. So in a year, you will do something like double your money. This is the equivalent of earning something like 6%/month on the stock market. Earnings of this sort are impossible. Madoff was returning 15% or so each year. So those earnings are off the charts. So here's the simple math behind mining. If a company is producing miners that can pay you back and then some at a rate of 6% per month, the very simple thing for them to do is go to raise funding. Showing those earnings to a VC or an Angel Fund would basically guarantee that you walk out the door with a check for like a $100 million. Here's the thing, while VC's or bankers are often referred to as smart money (though I hate to give them the satisfaction of the title), you and your stupid wallet are probably what are called dumb money. Smart money is the money of seasoned, researched, veterans of finance. Dumb money is the opposite. While it won't be the case 100% of the time, chances are if you are reading this at home in your undies, and are just shaking at the indignity of my characterizing you as probably dumb money, then you are almost certainly dumb money. Dumb money always thinks it's smart money. But, riddle me this very simple question: in a world where a company can nearly promise 6ish% risk-free returns per month, why is it that they are selling to the dumb money investors instead of the smart money investors? Maybe those returns aren't so risk-free. And if those returns aren't risk-free, show me where in your calculated returns you are accounting for that risk. Do you understand net present value? Are you accounting for the opportunity cost of not purchasing the miner and just buying bitcoin or maybe just buying broad-based, risk-mitigating ETFs? Do you have a good handle on where Bitcoin prices are going. If you're answer to these questions is yes, yes and yes, then you are lying to yourself. If your answer to these questions are no, yes, and yes, then you are lying to yourself. if you're answer to these questions are no, no, and yes, then you are lying to yourself. If you're answer to these questions respectively is anything but .*, .*, and no, then you are lying to yourself. You have no idea where prices are going, and neither do I. How do I know you know nothing about prices? Well, because markets are efficient. And while I'll acknowledge that BTC is a fairly shallow market, it is still the case that even in shallow markets prices are generally pretty indicative of what a thing is valued. It is to say, the price of Bitcoin right now has every inch of risk and outcome baked into the price. Unless you have special knowledge of Bitcoin and her players, you know nothing more than this very simple tautology: the price is the price. So back to the question, why do miners sell equipment to dumb money instead of smart money? The answer is very simple: mining manufacturers, cloud mining operations, people who are promising what amounts to risk free return, they are scamming you. If they think they can provide you with miners that will outperform your wildest expectations, I promise you, they are scamming themselves and also scamming you. And, to be honest, you're scamming yourself when you buy your miner. Why do I say that? Because if you actually believed you could earn an almost guaranteed 6% per month, then you would spend all of your money on all the miners, and you would go to the bank and get a loan, you'd get your parents to mortgage their house, and you would buy all the miners you could. You don't do that because your gut is telling you correctly that there is something wrong here. And before you get all huffy and tell me that a scam isn't a scam until it's revealed, there are some things that are so inordinately off-kilter, that you can know with (near) certainty before they plummet into the dark pit of irrelevancy. @ 6% per month, you're telling me that with an investment of $10k, you will make $320k (I'm not doing real math, just kind of winging it over here... it might be ever more, so if someone feels like coming up with the right number, I'll change tip you a few cents.) over the next 5 years. That just isn't reasonable. And if you think it is reasonable, you're greed is getting in the way of your brain. So who should mine? People with a specialized knowledge of the Bitcoin mining space. BitFury is a great example of this. They make their own ASICs too. Why? Because they are trying to gain a competitive edge in an industry filled with very competent competition. To them, you are an irrelevant pissant. Who else should mine? People with a specialized need for virgin coins. When does it make sense to sell mining contracts? In the case that you are a large scale mining operation and you want to normalize costs such that your returns are less subject to the whims of randomness, you might want to sell contracts. How would you price those contracts? When you sell a contract like that as a big mining operation, you're externalizing the risk presented by the random swings of winning the hashing algo. To institutional miners, externalizing this risk is probably a smart business move. Very simply, they will calculate the Net Present value of having the money they would theoretically win through hashing over the course of the next 6 months or year or some other term, and they will sell contracts at a rate slightly below that to someone who is more desirous of taking on the risk. The gap between the NPV and the price of the contract is essentially a market-based insurance premium. It is the cost of risk-mitigation. So it begs the question (not in the philosophical sense), doesn't that mean that mining contracts - like those in cloud mining - are not scams? Good question. Well, here's the thing, you probably won't be offered contracts from institutional miners with good track records. Because just like there are people who are good at mining and people who are bad at it, there are people who are good at buying bundled risk and people that are bad at it. You, sir; yes you reading this article; you are bad at it. So don't do it. Why? Because markets are efficient, and you're an idiot. So now that you've read this, go ahead, buy those miners, do your thing. But when you find out that I'm right and that you have been scammed, the only thing you will hear from me is "welcome to Bitcoin, you're finally part of the club."