silver4Bitcoin.com : Bitcoin news and Domain names for sale

Providing Bitcoin-related news and Bitcoin domains for sale.

Please go to Buy This Domain to purchase these domain names:

BitcoinDeal.com, BitcoinCommerce.com, BitcoinGuns.com, BitcoinRetail.com, BitcoinRetailers.com, BitcoinSale.com, BitcoinSales.com, BitcoinTicket.com, BitcoinSellers.com, BinaryCoin.com, Bitcoin8.com, Bitcoin9.com, Bitcoinate.com, Bitcoing.com, Bitcoinize.com, Bitcoink.com, BitcoinU.com, Bitcoin4U.com, BitcoinUs.com, MegaBitcoin.com, OrBitcoin.com, Podcoin.com, CuBitcoin.com, Ramcoin.com, Pubcoin.com, Simcoin.com, TiBitcoin.com, Bitcoint.com, GigaBitcoin.com, SuperBitcoin.com, WeBitcoin.com, Bitcoin2Gold.com, Bitcoin2Silver.com, Bitcoin4Silver.com, silver2Bitcoin.com, silver4Bitcoin.com, silverBitcoin.com, BitcoinAccount.com, BitcoinAudit.com, BitcoinAuditor.com, BitcoinAudits.com, BitcoinBug.com, BitcoinBuyers.com, BitcoinCharge.com, BitcoinCheap.com, BitcoinClear.com, BitcoinCents.com, BitcoinDealers.com, BitcoinDimes.com, BitcoinHaven.com, BitcoinHedge.com, BitcoinLenders.com, BitcoinPip.com, BitcoinPledge.com, BitcoinRates.com, BitcoinSave.com, BitcoinSavers.com, BitcoinSavings.com, BitcoinSell.com, BitcoinSpread.com, BitcoinSwaps.com, BitcoinTicker.com, BitcoinTrend.com, BitcoinTrends.com, BitcoinWire.com, btcBanking.com, btcFund.com, btcTrades.com, cashBitcoin.com, CheapBitcoin.com, CheapBitcoins.com, clearBitcoin.com, deBitcoin.com, escrowBitcoin.com, escrowcoin.com, forexBitcoin.com, gold2Bitcoin.com, sendBitcoin.com, Bitcoinsure.com, Bitcoins4free.com, BitcoinBot.com, BitcoinBots.com, BitcoIntel.com, BitcoinCoder.com, BitcoinCoders.com, BitcoinDesk.com, BitcoinDev.com, BitcoinDns.com, BitcoinEmail.com, Bitcoinet.com, BitcoinHack.com, BitcoinHacks.com, BitcoinKeys.com, BitcoinLib.com, BitcoinLog.com, BitcoinLogin.com, BitcoinLogs.com, BitcoinPlugin.com, BitcoinServer.com, BitcoinSniffer.com, BitcoinTool.com, BitcoinTools.com, BitcoinAssist.com, BitcoinBackup.com, BitcoinCop.com, BitcoinCrypt.com, BitcoinConnect.com, BitcoinDonate.com, BitcoinDrop.com, BitcoinExperts.com, BitcoInform.com, BitcoinGuard.com, Bitcoinnect.com, BitcoinValet.com, BitcoinPolice.com, BitcoinCorp.com, BitcoinLaw.com, BitcoinMaker.com, BitcoinPad.com, BitcoinSearch.com, BitcoinService.com, BitcoinSpy.com, BitcoinStealth.com, BitcoinStorage.com, BitcoinStudy.com, BitcoinTest.com, remoteBitcoin.com, saferBitcoin.com, safercoin.com, fastBitcoin.com, BitcoinTrace.com, BitcoinTrack.com, quickBitcoin.com, simpleBitcoin.com, work4Bitcoin.com, Bitcointer.com, Bitcoinote.com, BitcoinLock.com, SatoshiNakamoto.com, BitcoinBlocks.com, BitcoinMill.com, Bitcoinomics.com, Bitcoinomy.com, Bitcoinism.com, Bitcoinist.com, BitcoinBetters.com, BitcoinUp.com, BingoBitcoin.com, BitcoinBidding.com, BitcoinBooker.com, BitcoinBookie.com, BitcoinBookies.com, BitcoinBookmaker.com, BitcoinCasinos.com, BitcoinGambler.com, BitcoinGamblers.com, BitcoinHall.com, BitcoinJoker.com, BitcoinLand.com, BitcoinPlace.com, BitcoinPlay.com, BitcoinPlayer.com, BitcoinPlayers.com, BitcoinPlays.com, BitcoinPrize.com, BitcoinWager.com, BitcoinWin.com, casinoBitcoin.com, BitcoinCity.com, pokerBitcoin.com, winBitcoins.com, BitcoinBrothel.com, BitcoinElite.com, BitcoinGirl.com, BitcoinGirls.com, BitcoinLadies.com, BitcoinVIP.com, BitcoinWomen.com, escortBitcoin.com, escortsBitcoin.com, MissBitcoin.com, BitcoinBook.com, BitcoinFan.com, BitcoinMag.com, BitcoinStudio.com, BitcoinMovie.com, BitcoinArmy.com, BitcoinChurch.com, BitcoinDown.com, BitcoinLight.com, BitcoinParties.com, BitcoinWars.com, BitcoinWave.com, HexCoin.com,

What is Bitcoin?

Bitcoin is a digital crypto-currency with no single point of failure due to its decentralized peer-to-peer architecture. The source code is publicly available and changes to the reference Bitcoin client are made via concensus within the community. Advantages of Bitcoin include irreversible transactions (i.e. no possibility of chargebacks as with credit cards), pseudo-anonymous, limited and fixed inflation, near instant transactions, multi-platform, no double-spend and little to no barriers to entry and more. It was created by an anonymous person known as Satoshi Nakamoto. Find out more at WeUseCoins.com.

Bitcoin Latest News

Understanding Bitcoin's Scaling Debate: Politics Comes First

Cato Institute's Jim Harper argues that, since the scaling debate is so political, the community has something to learn from Washington, D.C.

Source

Posted on 21 July 2017 | 3:20 pm

Faster Payments? Startup Pitches Federal Reserve Group on Cryptocurrency

A new Federal Reserve report highlights creative proposals for how the central bank might adapt to changes in technology.

Source

Posted on 21 July 2017 | 2:30 pm

Bitcoin Price Analysis: Recent Bull Run Calls for a Level Head

Bitcoin Price Analysis

Over the course of three days, BTC-USD managed to climb $1,100 in value — a near 60 percent growth. Shortly after reaching a local high in the mid $2,900s, it immediately retraced down to the mid $2,700s where, at the time of this article, it is currently sitting. Is this price growth sustainable? Is there more bull left in this rally? I’ll attempt to break down this recent market move from both sides of the fence and show why investors should or shouldn’t be wary of a move of this magnitude.  

Full disclosure: This analysis will not attempt to speculate on the value implications within this ongoing scaling debate. This will be an objective, raw analysis of the data at hand.

Figure_1.jpgFigure 1: BTC-USD, 12-hr Candles, Bitfinex, Macro Bull Run

If we put this entire bull run into perspective, we see that upon the completion of the Head and Shoulders Reversal Pattern, the market retraced down to the 50 percent Fibonacci Retracement values before ultimately bouncing and immediately climbing toward the previous all-time high.

At the moment, BTC-USD has yet to see any significant pullback from its latest move to justify any semblance of considerably strong support. The importance of establishing support levels is crucial for a sustained, healthy bull run. A support level sends out a signal to investors that basically says, “Hey, the market is not likely to drop below ‘x’ value — your risk is lowered by buying at ‘y’ price.”  

However, without these firm support levels, investors don’t know where the price currently stands in the grand scheme of the market. Thus, uncertainty can be injected into the market even in times of strong bull rallies. This uncertainty often leads to early profit taking, panic selling and long-position capitulation (also known as a “long squeeze”).

To play devil’s advocate, one can make an argument for a bullish continuation of yesterday’s massive bull run:

Figure_2.jpgFigure 2: BTC-USD, 30-min Candles, Bitfinex, Price Consolidation

If we take the current trend out of the context of the entire market, it would appear to display characteristics of a bullish continuation pattern known as a “Bull Pennant.” Bull Pennants are characterized by having lower highs, higher lows and decreasing volume along the length of the pennant. A pennant of this magnitude would have a price target somewhere around $3,400. (For the sake of time, I won’t explain why that’s the price target. You’ll just have to take my word for it.)  

However, when we put the Bull Pennant into the context of the entire market, we see signs of market divergence starting to form on the higher timescales:

Figure_3.jpgFigure 3: BTC-USD, 4-hr Candles, Bitfinex, Bearish Divergence

On the 4-hr MACD, we see bearish divergence during the market move to $2,900. Divergence is an indication that the market has begun to lose momentum and is likely to pull back before any more uptrending will continue.  

In regard to a bullish continuation of this rally, something to keep an eye out for are the tests of the key Fibonacci Retracement values shown in Figure 1. A retest and strong rejection of the Fibonacci lines will show strong market confidence in the eyes of investors who are currently sitting on the sidelines. Before any sustained, healthy uptrend resumes, the market will have to prove itself at the lower values to establish firm support.

During massive rallies it’s important to always keep in mind that large price movements often come with a large cost. It is still unclear what the immediate future of BTC-USD will be, but it’s important to remain levelheaded when entering trades and always look at the market objectively.  

Summary:

  1. Over three days, the BTC-USD market gained 60 percent in value.

  2. No firm support has been established to justify remaining at this price level.

  3. Because there is no firm support, volume is beginning to taper off while the market decides the next direction to head to next.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

The post Bitcoin Price Analysis: Recent Bull Run Calls for a Level Head appeared first on Bitcoin Magazine.

Posted on 21 July 2017 | 1:09 pm

Swiss Bank Secures Approval for Bitcoin Asset Management: CNBC - CoinTelegraph


CoinTelegraph

Swiss Bank Secures Approval for Bitcoin Asset Management: CNBC
CoinTelegraph
Swiss bank Falcon Private Bank has received authorization from the Swiss Financial Supervisory Authority FINMA for the management of assets based on the Blockchain technology supporting Bitcoin, CNBC reports. The Zürich-based private bank manages ...

Posted on 21 July 2017 | 12:17 pm

What's Next for Bitcoin After Digital Currency Split Is Averted - Bloomberg


Bloomberg

What's Next for Bitcoin After Digital Currency Split Is Averted
Bloomberg
With the bitcoin development community embracing a software upgrade known as SegWit2x that aims to increase the network's transaction capacity, a split of the cryptocurrency appears to be avoided. As proponents of the change celebrate, here's what some ...
Understanding Bitcoin's Scaling Debate: Politics Comes FirstCoinDesk
BitFury Successfully Completes Their First Live Bitcoin Transaction on the Lighting NetworknewsBTC

all 4 news articles »

Posted on 21 July 2017 | 12:10 pm

Living on Bitcoin in 2017: How Practical Is It? - CoinTelegraph


CoinTelegraph

Living on Bitcoin in 2017: How Practical Is It?
CoinTelegraph
More to that, Xapo Visa debit card can be linked to platforms such as PayPal, allowing users to easily purchase Bitcoin and spend Bitcoin at normal merchants, stores and outlets. Travelers can also use the Xapo debit card to cash out using any bank ...

Posted on 21 July 2017 | 11:15 am

Could Litecoin Be a Better Investment Than Bitcoin? - Investopedia


Investopedia

Could Litecoin Be a Better Investment Than Bitcoin?
Investopedia
Throughout the history of the cryptocurrency industry, Bitcoin has remained the dominant player. Although it no longer enjoys an 80% or more share of the industry's market capitalization as it did through the beginning of this year, it still remains ...
Still Have Doubts About Bitcoin?Seeking Alpha
BITCOIN DIARY: Is the great Bitcoin angst of 2017 finally over? Mmmmaybe ...Rand Daily Mail (registration)
Bitcoin Boom! Prices Explode $500 In Hours To Post Historic GrowthBitcoinist

all 11 news articles »

Posted on 21 July 2017 | 11:11 am

NRI Subsidiary Launches Blockchain Technology Assessment Service

A subsidiary of global consulting firm NRI has announced the launch of a new blockchain system assessment service.

Source

Posted on 21 July 2017 | 10:45 am

Blockchain Startup Billon Nets €2 Million From EU Research Fund

A U.K. blockchain startup has received a notable grant to continue its work with the technology.

Source

Posted on 21 July 2017 | 9:10 am

Crypto Asset Class Clears $90 Billion as Bitcoin Price Spikes - CoinDesk


CoinDesk

Crypto Asset Class Clears $90 Billion as Bitcoin Price Spikes
CoinDesk
Spurred by a massive uptick in the price of bitcoin, the total value of all cryptocurrencies passed $90 billion yesterday, a high not observed since early July. With the move, the market capitalization of the asset class is again advancing toward ...

Posted on 21 July 2017 | 7:47 am

Crypto Asset Class Clears $90 Billion as Bitcoin Price Spikes

The total value of all cryptocurrencies rose on Friday, crossing $90bn for the first time in weeks.

Source

Posted on 21 July 2017 | 7:45 am

Utility Settlement Coin Creator to Open-Source Modular Blockchain Software

The secretive firm behind the Utility Settlement Coin project has told CoinDesk of plans to roll-out new open-source offerings.

Source

Posted on 21 July 2017 | 7:00 am

Op Ed: No Governance for Old Men: Coordinating Protocol Upgrades in the Future

Jon Matonis OP ED

Make no mistake. We are witnessing a high-stakes protocol standards battle play out in real time. And it is just as important as last century’s battle for the internet’s TCP standard. 

Current capacity constraints on the Bitcoin blockchain have brought us to this impasse.

The Bitcoin protocol, as the dominant value transfer “network effect” leader, battles against upstart cryptocurrency protocols like Ethereum and Monero. But it also battles with itself as divergent forces push for either on-chain scaling or off-chain scaling, hard fork or soft fork, SegWit transaction format or original transaction format.

The so-called nuclear option is a prolonged, contested hard fork of the Bitcoin blockchain because it risks splitting the network into two competing chains, which is to no one’s benefit. Therefore, it should be reserved as a planned formality or a last resort for extreme situations rather than a perpetual form of “live” dispute resolution.

With so much individual and institutional wealth essentially stored on the Bitcoin blockchain, it can be extremely disconcerting when others try to “fork” around with your money. Chronic forking is not synonymous with wealth management and prudent capital accumulation, which require stability and predictability. Importantly, smart contracts and non-monetary applications will also rely upon relative stability since the same native digital token also facilitates the proof-of-work security model.

This article will examine how open-source governance was designed to work within the Bitcoin protocol and how users, miners and developers are locked in a symbiotic dance when it comes to potential forks to the immutable consensus. Solutions will be proposed and analyzed that maintain the decentralized nature of the resulting code and the blockchain consensus, while still permitting sensible protocol upgrades. Governance is not only about the particular method of change-control management, but also about how the very method itself is subject to change.

kaboomLet’s not deploy the nuclear option for every protocol upgrade.

Open-Source Protocols and Bitcoin

Generally referred to as FOSS, or free and open-source software, this source code is openly shared so that people are encouraged to use the software and to voluntarily improve its design, resulting in decreasing software costs; increasing security and stability, and flexibility over hardware choice; and better privacy protection.

Open-source governance models, such as Linux and BitTorrent, are not new and they existed prior to the emergence of Bitcoin in early 2009; however, they have never before been so tightly intertwined with money itself. Indeed, as the largest distributed computing project in the world with self-adjusting computational power, Bitcoin may be the first crude instance of A.I. on the internet.

In “Who Controls the Blockchain?” Patrick Murck confirms that Bitcoin is functioning as designed:

As a blockchain community grows, it becomes increasingly more difficult for stakeholders to reach a consensus on changing network rules. This is by design, and reinforces the original principles of the blockchain’s creators. To change the rules is to split the network, creating a new blockchain and a new community. Blockchain networks resist political governance because they are governed by everyone who [participates] in them, and by no one in particular.

Murck continues:

Bitcoin’s ability to resist such populist campaigns demonstrates the success of the blockchain’s governance structure and shows that the ‘governance crisis’ is a false narrative.

Of course it’s a false narrative, and Murck is correct on this point. Bitcoin’s lack of political governance is Bitcoin’s governance model, and forking is a natural intended component of that. “Governance” may be the wrong word for it because we are actually talking about minimizing potential disruption.

Where Bitcoin differs from other open-source protocols is that two levels of forking exist. One level forks the open-source code (code fork), and another level forks the blockchain consensus (chain fork). Since there can only be one consensus per native digital token, chain splits are the natural result of this. The only way to avoid potential chain splits in the future is to restrict the change-control process to a single implementation, which is not very safe nor realistic.

“Collaborate or fork” has become the rallying cry for Bitcoin Core supporters. L.M. Goodman, author of “Tezos: A Self-Amending Crypto-Ledger Position Paper,” writes:

Core development teams are a potentially dangerous source of centralization.

When it comes to Bitcoin Core, the publicly shared code repository hosts the current reference implementation, and a small group of code committers (or maintainers) regulate any merges to the code. Even though other projects may be more open to criticism and newcomers, this general structure reminds me of a presiding council of elders.

Making hazy claims of a peer-review process or saying that committers are just passive maintainers merely creates the facade of decentralized code. The real peer-review process takes place on multiple community and technical forums, some of which are not even frequented by the developers and Bitcoin Core committers. 

The BIP (Bitcoin Improvement Proposal) process is sufficient and it’s working for those who choose to collaborate on Bitcoin Core. Similar to the RFC (Request for Comments) process at the IETF, BIP debates about a proposed implementation can provide technical documentation useful to developers. However, it is not working for many involved in Bitcoin protocol development due to the advantages of incumbency and the false appeal to authority with core developers. If Bitcoin Core no longer maintains the leading reference implementation for the Bitcoin protocol, it will be 100 percent due to this intransigence.

Sensitive to the criticisms of glorifying Bitcoin Core, Adam Back of Blockstream recently proposed an option to freeze the base-layer protocol, but at the moment that will only move all of the politics and game-playing to what exactly the base-layer freeze should look like. It is a nice idea for separating the protocol standard from a single reference implementation and for transitioning the Bitcoin protocol to an IETF-like structure, although it’s extremely premature for now. 

Therefore, by default, that leaves us with several alternative Bitcoin implementations in an environment of continual forking.

Even Satoshi Nakamoto was critical of multiple consensus implementations in 2010:

I don’t believe a second, compatible implementation of Bitcoin will ever be a good idea. So much of the design depends on all nodes getting exactly identical results in lockstep that a second implementation would be a menace to the network.

That prevailing standpoint, however, may be changing, which Aaron van Wirdum addresses in “The Long History and Disputed Desirability of Alternative Bitcoin Implementations.” Wirdum cites Eric Voskuil of libbitcoin, who argues that there should not be one particular implementation to define the Bitcoin protocol:

“All code that impacts consensus is part of consensus,” Voskuil told Bitcoin Magazine. “But when part of this code stops the network or does something not nice, it’s called a bug needing a fix, but that fix is a change to consensus. Since bugs are consensus, fixes are forks. As such, a single implementation gives far too much power to its developers. Shutting down the network while some star chamber works out a new consensus is downright authoritarian.”

Multiple alternative implementations of the Bitcoin protocol strengthen the network and help to prevent code centralization.

Politics of Blockchain Forking (or How UASF BIP 148 Will Fail)

Contentious hard forks and soft forks all come down to hashing power. You can phrase it differently and you can make believe that two-day zero-balance nodes have a fundamental say in the outcome, but you cannot alter that basic reality.

BIP 148 fork will undoubtedly need mining hash power to succeed or even to result in a minority chain. However, if Segregated Witness (SegWit) had sufficient miner support in the first place, the BIP 148 UASF itself would be unnecessary. So, in that respect, it will now proceed like a game of chicken waiting to see if miners support the fork attempt.

Mirroring aspects of mob rule, if the UASF approach works as a way to bring miners around to adopting SegWit, then the emboldened mob will deploy the tactic for numerous other protocol upgrades in the future. Consensus rules should not be easy to change and they should not be able to change through simple majority rule on nodes, economic or not. Eventually, these attempts will run headfirst into the wall of Nakamoto consensus

As far as the network is concerned, it’s like turning off the power to your node.

There is no room for majority rule in Bitcoin. Those who endorse the UASF approach and cleverly insert UASF tags in their social media handles are endorsing majority rule in Bitcoin. They are providing a stage for any random user group to push their warped agenda via tyranny of the nodes.

The prolific Jimmy Song says that having real skin in the game is what matters:

Bitcoin doesn’t care if you post arguments on Reddit. Bitcoin doesn’t care if you put something clever in your Twitter name. Bitcoin doesn’t care if you educate people, write articles, or make clever Twitter insults. Bitcoin doesn’t care about your wishes, your feelings or your arguments.

Let’s keep “majority rule” antics out of Bitcoin. There is no protocol condition that activates “if we are all united” and that is a good thing.

With enough hashing power, the mob-induced UASF BIP 148 will lead to a temporary chain split. However, the probability of a Bitcoin minority chain surviving for very long is extremely low due to the lengthy difficulty re-targeting period of 2,016 blocks. Unlike the Ethereum/Ethereum Classic fork, that is a long time for miners to invest in a chain of uncertainty.

Responding to a Reddit post for newbies who are scared of losing money around the 1st of August due to UASF, ArmchairCryptologist explains:

Your advice is sound, but realistically, the most likely scenario is that the UASF either wins or dies. If it gets less than ~12% of the hashrate, it will not be able to activate Segwit in time, and it will almost certainly die. If it gets less than ~20% I also wouldn’t be surprised to see active interference with orphaning to prevent transactions from being processed.

If on the other hand it gets more than ~40% of the hashrate, the chance for a reorg on the other chain is large enough that most miners will likely jump ship, and it will almost certainly win. At over ~20% block orphaning attacks won’t be effective, as it would split the majority chain hashrate and risk tipping the scale. Which means that the only situation where you will realistically have two working chains for an extended period is if you get between ~20% and ~40% of the hashrate for the UASF.

The collectivist UASF BIP 148 strategy will ultimately fail and that’s a good thing. It is driven primarily by those with very little at stake expecting the miners to stake everything by supporting a minority chain. Pretty soon, you run out of other people’s money. This commenter on Reddit understands:

The entire premise was that it was very cheap to switch, but very expensive to stay. That’s when I realized the folly of it all; [it’s] only cheap because they’re not staking anything. But someone has to stake something.

And that’s what is going to cause it to fail. That and the lack of replay protection. People like this guy flip it around and genuinely believe the mining problem will be solved by massively increased value. If they do somehow put enough pressure on exchanges that list UASF, despite the lack of replay protection, and if we take his logic a step further, UASFers are going to be pushing everyone to “buy, buy, buy” UASF and “sell, sell, sell” Legacy Coin. But without replay protection, they’re going to be obliterated by a few smart people who realize there are huge gains to be had.

Alphonse Pace has an excellent paper describing chain splits and their resolution. He walks us through compatible, incompatible and semi-compatible hard forks, arguing that users do have power if they truly reject a soft-fork rule change:

… users do have power — by invoking an incompatible hard fork. In this case, users will force the chain to split by introducing a new ruleset (which may include a proof-of-work change, but does not require one). This ensures users always have an escape from a miner-imposed ruleset that they reject. This way, if the economy and users truly reject a soft fork rule change, they always have the power to break away and reclaim the rules they wish. It may be inconvenient, but the same is true by any attack by the miners on users.

The Future of Coordinating Protocol Upgrades

What group determines the big decisions in Bitcoin’s direction? Ilogy doubts that it is the developers:

Theymos almost completely foresaw what is happening today. Why? Because Theymos has a deep understanding of Bitcoin and he was able to connect the dots and recognize that the logic of the system leads inevitably to this conclusion. Once we add to the equation the fact that restricting on-chain scaling was always going to be perceived by the ‘generators’ as something that ‘reduces profit,’ it should be clear that the logic of the system was intrinsically going to bring us to the point we find ourselves today.

Years later these two juggernauts of Bitcoin would find themselves on opposite ends of the debate. But what is interesting, what they both recognized, was that ultimately big decisions in Bitcoin’s direction would be determined by the powerful actors in the space, not by the average user and, more importantly, not by the developers. 

The developer role can be thought of as proposing a variety of software menu choices for the users, merchants and miners to accept and run. If a software upgrade or patch is deemed unacceptable, then developers must go back to work and adjust the BIP menu offering. Otherwise, mutiny becomes the only option for dissatisfied miners. 

In “Who Controls Bitcoin?” Daniel Krawisz says that the investors wield the most power, and because of that, miners follow investors. Therefore, the protocol upgrades likely to get adopted will be the ones that increase Bitcoin’s value as an investment, such as anonymity improvements being favored over attempts at making Bitcoin easier to regulate.

In the future, miner coordination via a Bitcoin DAO (decentralized autonomous organization) on the blockchain could be the key to smooth and uneventful forking. Self-governing ratification would allow diverse stakeholders to coordinate protocol upgrades on-chain, reducing the likelihood of software propagation battles that perpetually fork the codebase.

Attorney Adam Vaziri of Diacle supports a system of DAO voting by Bitcoin miners to remove the uncertainty around protocol upgrades. He readily admits that he has been inspired by Tezos and Decred.

Prediction markets have also been proposed as a method to gauge user and miner preferences through public forecasting, the theory being that these prediction markets would yield the fairest overall consensus for protocol upgrades prior to the actual fork.

The question remains: Is coin-based voting based on allocated hash power superior to the informal signaling method utilized today? Are prediction markets or futures markets a viable method to gauge consensus and determine critical protocol upgrades?

I’m not optimistic. On-chain voting and “intent” signaling are both non-binding expressions while prediction and futures markets can be easily gamed. Therefore, while Tezos and Decred represent admirable efforts in the quest for complete resilient decentralization, I do not think Bitcoin protocol upgrades of the future will be managed in this way.

The Bitcoin ecosystem doesn’t need to achieve a social consensus prior to making changes to the protocol. What has clearly emerged from the events of this summer is that Bitcoin has demonstrated an even stronger degree of immutability.

Bitcoin has shown every indication that it wants a degree of immutability beyond what any of us expected.

Btw Bitcoin is an AI, not a mkt https://t.co/OcQ9ID3aL6

— Pierre Rochard (@pierre_rochard) July 16, 2017

There is no failure of governance and there is no failure of the market. The non-authoritarian forces at play here are functioning exactly as they should. Protocol upgrades in a decentralized environment are an evolutionary process, and that process has matured to the current six stages of Bitcoin protocol upgrading, with some optional variances for BIP 91:

(a) BIP menu choices competing for mindshare, strategic appropriateness and technical rigor;

(b) Informal intent signaling based on miners inserting text into the coinbase for each block mined;

(c) Block signaling period where miners formally signal a designated “bit” trigger for BIP lock-in, based on “x” percent over a “y” number of blocks period;

(d) Block activation period after BIP lock-in, which sets a secondary period of “x” percent over a “y” number of blocks for activation;

(e) Primary difficulty adjustment period (2,016 blocks) where “x” percent of miners must signal for the upgrade to lock in;

(f) Secondary difficulty adjustment period (2,016 blocks) required for the protocol upgrade to activate on the network.

Conclusion

This would not be the first fork in Bitcoin and it won’t be the last. If we believe in the power of Nakamoto consensus and probabilistic security, then the secret to uneventful protocol upgrades is smoother and more reliable signaling by miners.

July has been a tough month for Bitcoin, but it has also been pivotal. Even though I doubt the probability of success for UASF BIP 148, some may say that the threat of the reckless UASF on August 1 played a role in the rapid timeline for SegWit2x/BIP 91, and I agree with that. Game theory is alive and well in Bitcoin.

The design of Nakamoto consensus provides the ultimate method for decentralized dispute resolution by placing that decision with the hashing power and the built-in incentives against 51 percent attacks. In fact, Tom Harding considers miners to be the only failsafe in Bitcoin:

Miners are the only failsafe when the fiat and altcoin incentives corrupt the dev machine.

— Tom Harding (@dgenr818) April 13, 2017

Nakamoto consensus for the win. See you in November.

The views expressed in this op ed are those of its author, Jon Matonis, and do not necessarily reflect those of Bitcoin Magazine or BTC Media.

The post Op Ed: No Governance for Old Men: Coordinating Protocol Upgrades in the Future appeared first on Bitcoin Magazine.

Posted on 21 July 2017 | 6:43 am

ECB President: Cryptocurrency Price Boom Having Limited Effect on Economy

The president of the European Union's central bank has issued new remarks that touch on the rising price of cryptocurrencies.

Source

Posted on 21 July 2017 | 6:15 am

Trust Your Odometer? Blockchain Test Aims to Turn Tide on Car Tampering

If you've ever bought a used car you'll understand why BigchainDB has developed a platform that tracks vehicle history on a blockchain.

Source

Posted on 21 July 2017 | 5:30 am

Bitcoin is booming because a split in the cryptocurrency has been narrowly averted - Quartz


Quartz

Bitcoin is booming because a split in the cryptocurrency has been narrowly averted
Quartz
Bitcoin has risen as much as 28% over the past 24 hours, driven by news that an imminent split in the cryptocurrency has been narrowly averted. The price of bitcoin nearly hit $3,000 late on July 20, within spitting distance of its all-time high, set ...
Bitcoin Soars as Upgrade Backers Hoist Beers to ArmisticeBloomberg
Bitcoin Price and Market OverviewCoinTelegraph
Bitcoin Surged By $300 in the Past 24 Hours. Here's Why.Fortune
Bitcoin News (press release) -BBC News -Engadget -Coin Dance
all 111 news articles »

Posted on 21 July 2017 | 5:07 am

What is Bitcoin, what is its price in pound sterling and how does it work? - The Sun


The Sun

What is Bitcoin, what is its price in pound sterling and how does it work?
The Sun
THE controversial computer currency Bitcoin that's worth more than gold is a type of digital currency that was invented by an unknown developer. As it stands (Jul 21) a single bitcoin is worth £2,090 while a troy ounce of gold is worth $1,248 (£960 ...
Education Initiatives Increase Bitcoin AdoptionBitcoin News (press release)
Cosmetics Giant Lush Accepts BitcoinCoinTelegraph
Bitcoin's great selling point, the distributed ledger, is now its weak linkThe Australian Financial Review
CryptoCoinsNews -Bitcoinist -NDTV
all 21 news articles »

Posted on 21 July 2017 | 4:59 am

Arrested Hacker Claims $30 Million Bitcoin Theft – But Offers Little Proof

A Pennsylvania resident is claiming to have stolen millions in bitcoin, though he's offered police little in the way of evidence.

Source

Posted on 21 July 2017 | 4:00 am

Bitcoin nears record high price after 'milestone' in fierce debate over its future - CNBC


CNBC

Bitcoin nears record high price after 'milestone' in fierce debate over its future
CNBC
Bitcoin traded near its all-time high price late on Thursday after the intense debate over the cryptocurrency's future appears to be heading to a positive end. The price of bitcoin hit a high of $2,948.51 on Thursday evening, just shy of the record ...
Bitcoin prices slip after climbing to a one-month high yesterdayCity A.M.

all 2 news articles »

Posted on 21 July 2017 | 1:28 am

BIP 91 Has Locked In. Here’s What That Means (and What It Does Not)

BIP91.jpg

It looks as if Bitcoin is getting Segregated Witness.

Bitcoin Improvement Proposal 91 (BIP 91) just locked in. Up to 90 percent of all hash power signaled support for this soft fork, which implies miners intend, in turn, to trigger Segregated Witness (SegWit) activation. By extension, this should make BIP 148 obsolete and August 1 a non-event.

But SegWit is not certain. In fact, on a technical level, SegWit is not any closer to activation at all.

BIP 91

Segregated Witness, defined by BIP 141, locks in if at least 95 percent of miners (by hash power) signal support for the upgrade within a two-week difficulty period. To do so, miners need to embed a piece of data called “bit 1” in the blocks they mine.

Importantly, this is technically the only way for SegWit to activate right now. And this threshold has not yet been met.

But there are alternative strategies to try and trigger this threshold “indirectly” — like BIP 91.

BIP 91 is a Bitcoin Improvement Proposal proposed by Bitmain Warranty engineer James Hilliard. It is compatible with the New York Agreement and backed by a number of Bitcoin companies and mining pools. It is also compatible with BIP 148, another strategy to trigger the BIP 141 threshold indirectly.

Miners have been signaling support for BIP 91 over the past couple of days through another piece of data, “bit 4.” Once 269 blocks within a 336-block window included bit 4, this BIP 91 soft fork locks in. This threshold was just met.

This means that after another 336 blocks, a little over two days from now, all BIP 91–compatible nodes will reject any block that doesn’t include bit 1.

As long as a majority of hash power enforces BIP 91, this majority should eventually control the longest valid chain according to all Bitcoin nodes. And as this chain consists of bit 1 SegWit-signaling blocks only, it would in turn lock in SegWit on all SegWit-ready nodes by mid-August. SegWit itself should then be live on the Bitcoin network after a two-week “grace period” by the end of that month.

If all goes well …

What Could Go Wrong?

Although well over 80 percent of hash power has signaled bit 4 for BIP 91 lock in, this doesn’t actually guarantee anything. Most importantly, it doesn’t in itself mean that these miners will signal bit 1 for SegWit.

Indeed, so far, most miners don’t. Currently, the proportion of miners signaling bit 1 is still far lower than BIP 91 activation would suggest. It is even lower than 50 percent.

Moreover, BIP 91 will probably be enforced by hardly any economically relevant nodes; that is, nodes operated by users that accept bitcoins as payment. Almost no Bitcoin users on the network recognize BIP 91 or its bit 4 signaling at all, and will therefore continue to accept blocks with or without bit 1.

BIP 91 will, instead, be enforced by hash power alone. This in turn means that a majority of miners (by hash power) could back out of BIP 91 with little more than reputational damage. They could continue to mine blocks that do not signal bit 1, even after BIP 91 activates in a few days. As long as these miners are in a majority, they will still control the longest valid chain: valid according to most miners, and valid to most users.

Furthermore, any minority of miners and the few nodes that do enforce the BIP 91 soft fork would then be forked off the Bitcoin network. In a few days from now, these miners would mine (on top of) blocks that almost only they themselves would care for, while most of the rest of the entire Bitcoin network would completely ignore them.

With this week’s bit 4 signaling, a majority of miners have effectively made a statement that they intend to start to activate the SegWit soft fork within a couple of days. But for now, that’s really all it is: a very public, blockchain-based statement of intent.

Actual SegWit activation should start next week, if miners stick to their stated intent.

The post BIP 91 Has Locked In. Here’s What That Means (and What It Does Not) appeared first on Bitcoin Magazine.

Posted on 20 July 2017 | 7:20 pm

BIP 91 Locks In: What This Means for Bitcoin and Why It's Not Scaled Yet

BIP 91 has locked in. Before you celebrate, here's what you need to know about what's happening with bitcoin's code.

Source

Posted on 20 July 2017 | 6:18 pm

Bitcoin Price Surges to One-Month High as Tech Outlook Improves

The price of bitcoin was up on Thursday, driven to a one-month high on optimism that the network's technology could soon upgrade.

Source

Posted on 20 July 2017 | 2:28 pm

White Hats Step In to Save Funds from Vulnerable Ether Wallets

White Hats Step In to Save Funds from Vulnerable Etherscan Wallets

At 11:30 a.m. (CDT) on July 19, 2017, a hacker managed to steal 153,000 ETH (approximately $32 million at the time) from three Ethereum wallets by exploiting a vulnerability within the wallets' multi-signature verification. The affected wallets include the ones using Parity client version 1.5 or later.

According to a tweet by Project Lead Manuel Aráoz, the three multisig wallets first targeted by the hack were using Parity client version 1.5 or later, and included Edgeless Casino, Swarm City and Æternity Blockchain. However, Project Blocktix also reported a loss totaling 3,916 ETH. According to ETHNews, Blocktix.io was hit by a second attacker who exploited the same vulnerability.

A Swarm City blog post revealed that a group of white hat hackers managed to secure the remaining funds from the affected ETH wallets using the same exploit. The swift response of the white hat hackers allowed them to secure the funds of other vulnerable projects. Unfortunately, funds in the wallets of Edgeless Casino, Swarm City and Æternity Blockchain are completely lost, though the “white hat response team” managed to secure 6,272 of 10,188 ETH at Blocktix.io.

The White Hat Group announced on Reddit that they will create “another multisig for you [the affected users] that has the same settings as your [the users’] old multisig but with the vulnerability removed and we will return your [the users’] funds to you [the users].” The response team warned the Reddit community to be careful with donation addresses below their post since there are “a lot of phishers in the community right now.”

On July 19, Parity Technologies published a critical security alert stating there was a vulnerability connected to Parity Wallets. The users affected by the vulnerability included “any user with assets in a multi-sig wallet created in Parity Wallet prior to 19/07/17 23:14:56 CEST.” The company urged users to move all assets from the multisig wallets to a secure address. Wallets seemingly unaffected by the breach include Geth, MyEtherWallet and single-user accounts created on Parity.

Parity updated its post as of today stating that future versions of their multisig wallets are secure:

“Future multi-sig wallets created by versions of Parity are secure (Fix in the code is https://github.com/paritytech/parity/pull/6103 and the newly registered code is https://etherscan.io/tx/0x5f0846ccef8946d47f85715b7eea8fb69d3a9b9ef2d2b8abcf83983fb8d94f5f).”

Swarm City also posted information for users affected by the hack:

“If you do have funds in the multisig contract: carefully move your funds to a new account ASAP. If your funds are no longer in your multisig, please check the Black hat and White hat addresses. They might have been saved by the White hat group.”

To check on funds held by either the black hat or the white hat hackers, see the ETH addresses below:

White Hat Group’s wallet: 0x1DBA1131000664b884A1Ba238464159892252D3a
First hacker’s wallet: 0xB3764761E297D6f121e79C32A65829Cd1dDb4D32
Second attacker’s wallet: 0x1Ff21eCa1c3ba96ed53783aB9C92FfbF77862584

The hacks have not only affected the wallets of the victims but also the overall price of ether. According to Coin Market Cap’s stats, the price experienced a 15 percent drop from $234.94 (at 0:04, July 19) to $199.70 at the end of the day. However, ETH has since recovered to around $227 today.

The post White Hats Step In to Save Funds from Vulnerable Ether Wallets appeared first on Bitcoin Magazine.

Posted on 20 July 2017 | 2:01 pm

Garza Pleads Guilty: GAW Miners CEO Cops to $9 Million Fraud

A notorious cryptocurrency executive plead guilty to a count of wire fraud on Thursday. He now faces up to 20 years in prison.

Source

Posted on 20 July 2017 | 1:20 pm

Hansa Market Taken Down in Global Law Enforcement Operation

Hansa Market Taken Down in Global Law Enforcement Operation

After darknet market AlphaBay went offline on July 4, many of its users migrated to Hansa Market — and played right into the hands of an “Operation Bayonet,” a coordinated international law enforcement action. Today, both the U.S. Department of Justice and the Europol published press releases stating that Hansa Market has also been shut down.

According to the U.S. Department of Justice, the action was led by the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA), with law enforcement authorities in Thailand, the Netherlands, Lithuania, Canada, the United Kingdom, France and the Europol participating in the operation. Bayonet’s focus was takedown of both Hansa Market and AlphaBay in the course of the same multi-agency investigation.

“This is an outstanding success by authorities in Europe and the U.S. The capability of drug traffickers and other serious criminals around the world has taken a serious hit today after a highly sophisticated joint action in multiple countries. By acting together on a global basis the law enforcement community has sent a clear message that we have the means to identify criminality and strike back, even in areas of the Dark Web. There are more of these operations to come,” Rob Wainwright, the executive director of Europol, said today at a joint press conference with the U.S. Attorney General, the acting FBI director and the deputy director of the DEA in Washington, D.C.

According to Europol’s press release, the European agency provided Dutch authorities with an investigation lead on the Hansa Market in 2016. Europol allegedly acquired the information with the help of Bitdefender, an internet security company advising Europol’s European Cybercrime Centre (EC3). Investigators managed to locate the infrastructure of the darknet marketplace in the Netherlands, which resulted in the arrest of two administrators of the site in Germany. Hansa’s servers were seized in the Netherlands, Germany and Lithuania.

Furthermore, Dutch law enforcement acquired information on “high value targets and delivery addresses for a large number of orders.” With the help of Europol, the Dutch National Police collected information on approximately 10,000 foreign addresses of Hansa Market customers. In a covert action, Dutch law enforcement took control of Hansa a month ago, allowing investigators to monitor and gain information on the users of the marketplace without their knowledge.

Casting a Wider Net

It seems authorities planned their actions carefully since Hansa was already under their control when AlphaBay went offline on July 4. Europol stated that the Dutch National Police “could identify and disrupt the regular criminal activity on Hansa but then also sweep up all those new users displaced from AlphaBay who were looking for a new trading platform.”

“The Dutch National Police have located Hansa Market and taken over control of this marketplace since June 20, 2017. We have modified the source code, which allowed us to capture passwords, PGP-encrypted order information, IP-Addresses, Bitcoins and other relevant information that may help law enforcement agencies worldwide to identify users of this marketplace. For more information about this operation, please consult our hidden service at http://politiepcvh42eav.onion,” Dutch authorities wrote on the seized Hansa website.

In total, 38,000 transactions were identified by Europol, who then alerted other agencies in 600 cases. Furthermore, Europol stated they have prepared “intelligence packages” to be sent out to “law enforcement partners across 37 countries, spawning many follow-up investigations across Europe and beyond.”

AlphaBay went offline on July 4. At the time, many users suspected it was an exit scam. Authorities announced the arrest of the Alexandre Cazes, 26, the alleged administrator of the website, who was later found dead in his cell in Thailand. On the day of Cazes’s arrest, law enforcement took down servers of the dark web marketplace in Canada, the Netherlands and Thailand.

Darknet marketplaces have generated massive police heat after dangerous synthetic drugs, such as fentanyl — the substance at the heart of drug epidemics in multiple countries, including Canada and the United States — were constantly offered for sale on the websites. The statements of U.S. Attorney General Jeff Sessions during the joint press release in Washington, D.C., confirm this assumption.

“Among other challenges, our great country is currently in the midst of the deadliest drug crisis in our history. One American now dies of a drug overdose every 11 minutes and more than 2 million Americans are addicted to prescription painkillers. Every day, as a result of drug abuse, American families are being bankrupted, friendships broken and promising lives cut short,” he said.

“As of earlier this year, 122 vendors advertised fentanyl and 238 advertised heroin, and we know of several Americans who were killed by drugs sold on AlphaBay.”

Sessions asserted that his department’s work is not yet finished and issued a warning to people still ready to engage in illegal activity on the dark web. “We will continue to find, arrest, prosecute, convict and incarcerate criminals, drug traffickers and their enablers, wherever they are. The dark net is not a place to hide. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave.”

The post Hansa Market Taken Down in Global Law Enforcement Operation appeared first on Bitcoin Magazine.

Posted on 20 July 2017 | 12:57 pm

Bitcoin leaps 15% to highest in nearly a month on increased confidence in currency's future - CNBC


CNBC

Bitcoin leaps 15% to highest in nearly a month on increased confidence in currency's future
CNBC
Bitcoin jumped Thursday to its highest price in almost four weeks as digital currency developers appeared to come closer to an agreement that would prevent a split in the cryptocurrency. Bitcoin rose more than 15 percent, to $2,675.67, its highest ...

and more »

Posted on 20 July 2017 | 12:04 pm

SegWit or Not, Bitfury is Getting Ready for Lightning With Successful Bitcoin Main Net Test

BitfuryLN.jpg

While Segregated Witness (SegWit) activation is looking more likely by the hour, Bitfury is getting ready to deploy a version of the Lightning network with or without the protocol upgrade.

The blockchain technology company, perhaps best known for its Bitcoin mining pool of the same name, successfully sent real bitcoins over a test version of the Lightning Network this week. Interestingly, Bitfury’s implementation of the technology is compatible with the current Bitcoin protocol and is therefore functional even without SegWit.

“This is a major accomplishment by our technical team and an important step forward for the Lightning Network and the growth of Bitcoin,” Valery Vavilov, CEO of The Bitfury Group, said in a statement.

Lightning Network

The Lightning Network is a highly anticipated second-layer scaling solution that allows for cheap and instant (micro)payments. Cleverly leveraging Bitcoin’s basic scripting capabilities, Lightning users should be able to make a virtually unlimited number of transactions, where only a minimal proportion of them are recorded on Bitcoin’s blockchain, thereby boosting Bitcoin’s scalability. Meanwhile, all users remain in control of their own bitcoins at all times, maintaining the trustless properties of Bitcoin itself.

“The Lightning Network has the potential to solve Bitcoin’s scalability issue and provide instant payment functionality. By demonstrating that the Lightning Network can function now, Bitfury has cleared the way to increased transaction processing and further adoption of Bitcoin,” Vavilov said.

Bitfury’s Lightning implementation is based on LND, which is being developed by Lightning Labs.

For its demo, the Bitfury software team created two Lightning transactions. One of these is a straight transaction from one Lightning node to the next, effectively simulating a payment channel between two users. Since it was only a test, Bitfury only made one transaction — but it could have made thousands back and forth at no extra cost.

The other test was a single-hop transaction, which better simulates the main purpose of the Lightning Network. Users pay each other through a mutual third party, without requiring any trust in this third party. While the Bitfury software team only made one transaction on this channel as well, it could, once again, have made thousands back and forth between all three parties, at no extra cost.

Since Bitfury’s test took place on the main net, the funding and settlement transactions are recorded on Bitcoin’s blockchain and can be seen by any typical block explorer.

Tests and SegWit

Bitfury’s is not the first successful test of the Lightning Network. Several companies, including Lightning Labs, Blockstream, ACINQ as well as Bitfury itself have experimented with their implementations of the technology. But since most of these companies are working on versions of Lightning that rely on Segregated Witness, these tests were limited to Bitcoin’s testnet and Litecoin. Likewise, major wallet service Blockchain has sent “Thunder” transactions over Bitcoin’s main net. But while Thunder resembles the Lightning protocol, it isn’t quite as trustless or decentralized.

As such, Bitfury is the first company to get a version of the Lightning Network up and running on the current Bitcoin protocol.

“We released this first experimental version of the Lightning Network for Bitcoin because we think the Lightning Network is an essential technology for Bitcoin and would love to see it made available as soon as possible,” Vavilov said. “We are proud that our developers found a way to adopt the Lightning Network for Bitcoin without SegWit. It’s a huge step forward for Bitcoin scalability.”

Regardless, the CEO noted that he is hopeful that SegWit will activate on the Bitcoin network. With BIP91 currently getting close to its activation threshold, it seems increasingly likely that SegWit could be live within a month. This would allow for a version of the Lightning Network that offers an improved user experience.

Vavilov:

“The Lightning Network will be the most effective when used with SegWit, which is why we are fully committed to SegWit’s implementation, and we will continue working on a version of the Lightning Network that is compatible with SegWit.”  

Bitfury, which started out as a Bitcoin miner, has grown to become one of the largest private infrastructure providers in the Blockchain ecosystem. Part of this effort, the company has been supporting the development and implementation of the Lightning Network for well over a year. Bitfury previously also co-designed and successfully tested Flare, a payment-routing solution for the Lightning Network.

Watch the video of Bitfury’s tests here:



The post SegWit or Not, Bitfury is Getting Ready for Lightning With Successful Bitcoin Main Net Test appeared first on Bitcoin Magazine.

Posted on 20 July 2017 | 10:55 am

Ripple Reports Uptick in Investor XRP Interest as Sales Triple in Q2

A new report from Ripple suggests institutional investors are increasingly interested in its native cryptocurrency.

Source

Posted on 20 July 2017 | 9:45 am

What's an ICO? 'Big 4' Consulting Firms Are Getting the Question

Major consulting firms are reporting that interest in blockchain is fast expanding beyond distributed ledgers to include more experimental ICOs.

Source

Posted on 20 July 2017 | 8:00 am

'Bitcoin Sign Guy' Has a New Job, But He's Keeping His Identity Secret

A now-famous bitcoin supporter known for his promotional stunt during a US congressional hearing has landed an internship.

Source

Posted on 20 July 2017 | 7:00 am

Non-Profits See Blockchain Vision, But Face Harsh Realities

Non-profits are fast waking up to the possibilities offered by blockchain, but implementing real-world solutions will be anything but easy.

Source

Posted on 20 July 2017 | 6:00 am

Bitcoin Startups Advise Caution as Scaling Proposals Collide

With a number of developer proposals set to collide in the coming days, exchanges are issuing policy updates for bitcoin users.

Source

Posted on 20 July 2017 | 5:00 am

Indian IT Trade Association Sets up Blockchain Special Interest Group

A new special interest group has been formed in India to investigate and promote blockchain technology domestically.

Source

Posted on 20 July 2017 | 3:30 am

People Trust Cryptocurrencies over Gold, Says Wall Street 'Dean of Valuation'

A renowned finance expert has issued new comments on the valuation and possible impact of bitcoin and cryptocurrencies.

Source

Posted on 20 July 2017 | 2:10 am

The Bitcoin Block Clock Jr. Is Half Full Node, Half Work of Art

The Bitcoin Block Clock Jr. Is Half Full Node and Half Work of Art

Bitcoin is a decentralized system of digital cash in which users don’t need to trust anyone else with their money; however, the full benefits of this technology are only seen when users operate a full node on the network. The vast majority of Bitcoin users do not operate their own full nodes, but one man is trying to change that with a piece of hardware he calls the Bitcoin Block Clock Jr.

There are many good reasons for individual Bitcoiners to operate a full node. Full nodes are responsible for validating transactions and blocks on the Bitcoin network. Only by running full nodes can users know with full certainty that they received a valid payment. Additionally, the more users that run full nodes, the more decentralized the Bitcoin network is, making it harder to shut down or corrupt.

And as Sia Co-Founder David Vorick pointed out in a talk at this year’s MIT Bitcoin Expo, those who do not operate their own full nodes do not get a say in the matter when hard forks are deployed on the network. “If you’re not running a full node … your opinion on whether or not you like a hard fork is less relevant because, ultimately, if you’re not validating the rules and someone gives you a transaction following a different rule set, you don’t have a way to detect that,” he explained.

Running a full node, however, has been a rather expensive proposition. As a result, larger, economically invested entities that are better able to support full nodes have had more of a say.

According to Vorick, users can be dragged along with miners and large businesses if the cost of running a full node is too high: “If full nodes are expensive to run, only people who are capable of running nodes really have any say in what happens in a contentious upgrade.”

Matthew Zipkin is the man behind the Bitcoin Block Clock. A sound engineer by trade, he has been working in his spare time on creating full nodes that are both affordable and fun to use. During a recent discussion with Bitcoin Magazine, Zipkin revealed his desire to create a piece of hardware for operating a low-cost Bitcoin full node that isn’t boring.

A Bitcoin Full Node That Isn’t Boring

When commenting on his reasoning for creating the Bitcoin Block Clock, Zipkin pointed to the full node devices made by Bitnodes before they were acquired by 21.

“I always wanted one, but they disappeared when they got bought out, so I decided to build my own,” said Zipkin.

While there are other full node options out there, such as Bitseed, Zipkin wanted to make something that was more than a piece of computer hardware that would sit on the floor next to a router. Zipkin wanted to turn a Bitcoin full node into a work of art, and that’s exactly what he did.

Zipkin built the first version of the Bitcoin Block Clock last year, and it was on display at the SF Bitcoin Meetup’s “Proof of Art” event in May of 2016. After receiving positive feedback at the event and on Reddit, Zipkin decided to make a smaller version of the full node hardware to sell.

The Bitcoin Block Clock included a screen that displayed various live information about the Bitcoin network. Zipkin put the original version of the Bitcoin Block Clock for sale on OpenBazaar and Purse.io, but it hasn’t sold.

“I priced it pretty high because it’s art and I love it and kind of want to keep it,” explained Zipkin. “So of course it still has not sold.”

Creating the Bitcoin Block Clock Jr. With Bcoin

In an effort to create a version of the Bitcoin Block Clock that could be produced at a lower price, Zipkin turned to Raspberry Pi Zero and Bcoin, which is an implementation of the Bitcoin protocol written in Node.js.

“I discovered Bcoin was super easy to install and use, and the codebase was easier for me to review because it’s in Javascript instead of C++, and was built from scratch by a small group of developers (basically just two guys), so everything is really well labeled and consistent,” explained Zipkin.

Of course, the problem with using SPV mode is that it’s not a full node and the device won’t receive all of the information related to a new Bitcoin block as it’s mined on the network. Zipkin opted for the pruned full node option in Bcoin in an effort to lower the system resources required to operate the node on Raspberry Pi Zero.

“With pruning, I get all the fun block details I wanted to display,” said Zipkin. “I even submitted a pull request (which got merged!) to Bcoin to make my application work even easier.”

Zipkin described the LED displays on the Bitcoin Block Clock Jr. as follows:

“The Bitcoin Block Clock Jr. has two LED rings. The outer ring of 24 LEDs indicates recent blocks. Each LED represents 2 minutes, and they “tick” clockwise around the ring. The color of the LED is determined by the block’s version (BIP 9 version bits combined with keywords from the Coinbase scriptSig like “/EXTBLK” or “/EB1/AD6/”). The inner 16-LED ring indicates the progress of the current difficulty period (2,016 blocks, or about two weeks). It starts blue and gradually turns more and more red as the meter fills up. The tiny little display screen indicates some details about the latest block: height, size, version (and extra scriptSig version) and the adjustment period progress. I added a little web interface so I could turn the lights off at night without having to SSH into the Pi every time.”

front-back

An Economical Way to Contribute to the Network

While Zipkin noted that the original Bitcoin Block Clock displays much more information and also comes with full wallet functionality, he also pointed out that the latest model proves that Bitcoin users only need about $20 to run their own full nodes (at least in pruned mode).

Having said that, Zipkin admitted that the Bitcoin Block Clock Jr. can struggle to keep up with the network at times.

“Bcoin plus my Python script and all the GPIO display output just barely hangs in there on this tiny underpowered computer,” said Zipkin. “The Python script has a method to restart Bcoin when it crashes and monitor it as it catches up to the network.”

All of the technical details of the Bitcoin Block Clock Jr. are open source and can be found on GitHub.

Zipkin has now placed the Bitcoin Block Clock Jr. for sale on OpenBazaar and Purse.io.

The post The Bitcoin Block Clock Jr. Is Half Full Node, Half Work of Art appeared first on Bitcoin Magazine.

Posted on 18 July 2017 | 3:17 pm

This New Tool Can Help Bitcoin Users Deal With Stuck Transactions

This New Tool Can Help Bitcoin Users Deal With Stuck Transactions

Samourai Wallet is becoming increasingly popular as a wallet that focuses on privacy and security for its users above all else, but a recent tool released by this wallet’s team of developers has a focus on user experience. The new app, called Bitcoin Afterburner, allows users of many different bitcoin wallets to boost transactions that have become stuck due to low fees.

The app works for transactions that have been sent or received, and it is compatible with all BIP 39 and BIP 44 wallets. Examples of compatible wallets include Mycelium, Blockchain.info, Airbitz and Electrum.

To get more details about Bitcoin Afterburner and the concept of fee bumping in general, Bitcoin Magazine reached out to the anonymous CEO of Samourai Wallet.

“Afterburner is one more example of how we are experimenting and developing ways of monetizing our business without resorting to accepting fiat or exposing our users to harmful KYC/AML collection,” said the CEO.

Samourai Wallet monetizes the Bitcoin Afterburner app by adding a $5.99 fee for helping users with their stuck transactions. This fee is added to the child-pays-for-parent (CPFP) transaction that is used to bump the user’s bitcoin transaction fee. CPFP is a process by which the recipient of a transaction can spend the inputs of an unconfirmed transaction by using them in a new transaction that has a higher fee (and incentivizes miners to mine both transactions at once).

The full question and answer session with the CEO of Samourai Wallet can be read below.


Bitcoin Magazine: Will fee bumping eventually become the norm on Bitcoin?

Samourai Wallet: We believe that over time as legitimate transactions start to fill block space, and a fee market begins to mature, wallets that have implemented sophisticated fee management mechanisms such as fee bumping will provide their users with the most competitive transaction fees and confirmation times. The tech is there today, the challenge — and it isn't a small challenge — is entirely UX. We're working on this today while others are playing catch-up.

BM: Could you compare and contrast this app with the transaction accelerators offered by ViaBTC and BTC.com?

SW: The difference between the miner operated TX Accelerators is that Afterburner is not an off-chain 1-to-1 with a specific miner. Instead, Afterburner broadcasts a bitcoin transaction to all miners using the standard bitcoin p2p network. All the miners on the network compete for the new transaction with the higher fee, meaning it often works much quicker than the miner operated TX Accelerators. Afterburner was very much a defensive response to the miners who have been blocking SegWit activation and broadcasting empty blocks, some of those same miners are the ones who run the TX Accelerators.

BM: Is Bitcoin Afterburner getting much use so far?

SW: Afterburner has a good number of installs, but not many paid 'Boosts.' A few days after we released Afterburner the transaction backlog that was driving up fees and confirmation times completely dried up. The fees required for next block confirmation dropped from 300 sat/b to 25 sat/b. Once the mempool gets saturated again, we will have a much better idea of the potential utility of the app.

BM: Why do you think more wallet providers don’t offer this sort of service?

SW: Many wallet providers — inexplicably the most well-funded ones are the most guilty — haven't invested any time into proper fee estimation and management until very recently. A misguided industry-driven quest to make the bitcoin wallet for “grandma” resulted in an unusable bitcoin wallet for actual users. Samourai has focused from inception on actual bitcoin users first.

BM: Do you think this sort of fee bumping will eventually be free? Does Samourai Wallet offer fee bumping like this natively or do they need to use this separate app?

SW: Samourai Wallet provides the exact same functionality as Afterburner natively. Afterburner was designed to allow users of any other BIP 44 HD wallet to boost their stuck transaction using CPFP (Child-Pays-for-Parent) under the hood. Hopefully they move over to Samourai Wallet if they are satisfied with the service. In addition to CPFP-based boosting more advanced users may opt-in to RBF-based boosting which is also available in the wallet. Both options are available to Samourai Wallet users free of charge.

The post This New Tool Can Help Bitcoin Users Deal With Stuck Transactions appeared first on Bitcoin Magazine.

Posted on 18 July 2017 | 9:48 am

Advertise with Anonymous Ads

Bitcoin reaches new all-time high: $ 3,000

Posted on 12 June 2017 | 1:06 am

CRYENGINE now accepts Bitcoin

Posted on 29 March 2017 | 1:24 am

Consulting firm EY Switzerland accepts Bitcoin

Posted on 26 November 2016 | 12:47 am

Bitcoin Trading Bots

There have been a wide variety of situations in which algorithmic trading programs have proven to be beneficial for investors. However, investors who only trade a cryptocurrency can also take advantage of bitcoin trading bots. Through bitcoin bot trading, traders can become more flexible and prompt, minimize errors and process information more rapidly. At this… Read More »

Posted on 8 November 2016 | 6:20 pm

Steam accepts Bitcoin

Posted on 29 April 2016 | 1:09 am

Major Magazine Publisher to Accept Bitcoin Payments

Posted on 18 December 2014 | 12:43 pm

Microsoft accepts Bitcoin

Posted on 11 December 2014 | 5:06 am

PayPal and Virtual Currency

Posted on 23 September 2014 | 9:52 pm

Wikimedia Foundation Now Accepts Bitcoin

Posted on 30 July 2014 | 3:14 pm

airBaltic - World’s First Airline To Accept Bitcoin

Posted on 22 July 2014 | 11:03 am

Expedia to accept Bitcoin payments for hotel bookings

Posted on 12 June 2014 | 12:41 pm

Bitcoin Core version 0.9.1 released

Posted on 8 April 2014 | 4:27 pm

July 21, 2017 -
Real Time Analytics