Bitcoin Forum

Economy => Services => Topic started by: pugman on February 17, 2018, 07:49:36 PM



Title: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on February 17, 2018, 07:49:36 PM
Hey everyone,
Bill gator (https://bitcointalk.org/index.php?action=profile;threads;u=370611) and I decided to start up Q/A contest wherein users can answer the questions we ask about bitcoin. Fair discussions are appreciated. This is only because we want to encourage users to learn more about bitcoin,and encourage them to make quality posts subsequently helping them to receive merits and rank up.
Suggestions appreciated.
How to participate in the contest:

1) Me or Bill gator (https://bitcointalk.org/index.php?action=profile;threads;u=370611) will ask questions related to bitcoin.
2) Users shall answer the question and they may research and answer if they want.
3) The first correct answer will be counted and that user may receive merit based on how their answer is.
4) The post quality shall be reviewed and if you're a quality poster you may even receive more merits.

NOTE: If either one of us run out of merits,the thread shall be locked temporarily.

Rules:

1. No spamming/posting off-topic replies,otherwise your posts shall be deleted.
2. Users may not enroll with alts,anyone found with using alts,their posts will be deleted and even if the answers are correct,it shall become invalid.
3. Don't pm me or bill gator (https://bitcointalk.org/index.php?action=profile;threads;u=370611) begging for merits.
4. Wrong answers and repetitive answers shall be deleted. Any means to farm merit shall not be tolerated.
5. If you spam too much you shall be put on ignore and all your posts will be deleted.Not reading the OP and blatantly posting something will get your post deleted.
6. No Bitcoincash shills.
7. If you have any questions that you want us to ask,feel free to PM us.
8. This shall only be related to bitcoin since this is a Bitcoin Forum.
9. If a user answers a question correct or is granted merits in another way from this thread then he will not attempt the next question.
10. No editing your posts after giving your initial answer. Making edits will disqualify your answer.
11.Plagiarizing or copy pasting content from various sources is NOT allowed. Rephrasing such content is also not allowed.

NOTE: I'll take 24-48 hours to update the thread,so don't worry. All users who gave correct answers would get merited soon.

Let's hop right into it then.


Title: Re: A simple bitcoin Q/A
Post by: pugman on February 17, 2018, 07:49:51 PM
Question #1: What is bitcoin’s Mempool? What does it do, what is held there and where is it’s physical location on the network?
Answer:
Code:
The bitcoin mempool is where unconfirmed transactions are stored.
It's a set of all the transactions that have been broadcast but have not yet been added to a block by a miner.
Every node has its own transaction relay policy so there is no definite mempool, but different mempools for different nodes.

Winner:- Xynerise (https://bitcointalk.org/index.php?action=profile;u=1250855) and hugeblack (https://bitcointalk.org/index.php?action=profile;u=1059082)

Question #2: What is a legacy address? What is segwit address? What is the difference between these two addresses?
Answer:
Code:
Legacy means that you will be using addresses of the form 1...
Segwit means that you will be using addresses of the form 3... or bc1... (one is for P2SH nested segwit and the other is for native segwit).
Note that 3... addresses are for P2SH addresses in general and are not just for segwit.
bc1... addresses are for segwit specifically but not all wallets support it yet.*
*Credit: achow101 (https://bitcointalk.org/index.php?action=profile;u=290195)
Source: Legacy vs Segwit wallets. Whats the difference ? (https://bitcointalk.org/index.php?topic=2251039.msg22764587#msg22764587)

Winner:- Eddie13 (https://bitcointalk.org/index.php?action=profile;u=580327)


Question #3:
When a node receives a block, what does it check for to verify the validity of transactions within it?
What are these checked against?
Answer:
Code:
It checks the signatures of the transaction against previous blocks.

Winner:- Fazlurkhan.kz (https://bitcointalk.org/index.php?action=profile;u=1147321)

Question #4:
Does Bitcoin have an adaquete solution to the Byzantine Generals problem?
Why not or what is it?
Answer:
Code:
Yes, Bitcoin does have a solution and it is called the proof-of-work algorithm.
So to alter "the message" (a block of transactions in our case) as in the classic Byzantine Generals problem and to make it look authentic by guessing a new nonce, one would need to use more Hash Power than the entire network.
Since the current Hash Rate is around 23 million TH/s, to achieve that they would need to buy 1.5 million of Antminer S9.

Winner:- Betwrong (https://bitcointalk.org/index.php?action=profile;u=402366)

Question #5:
Did Satoshi write the Bitcoin Whitepaper or write the code for Bitcoin first?
Why did he choose the one he did to do first?
Answer:
Code:
I actually did this kind of backwards. I had to
write all the code before I could convince myself that I could solve every
problem, then I wrote the paper. I think I will be able to release the code
sooner than I could write a detailed spec. [i]-Satoshi[/i]

Winner:- buwaytress (https://bitcointalk.org/index.php?action=profile;u=901859)

Question #6:
In Satoshi's old e-mails they imply that handling as many transactions as Visa should not be a problem.
What does this imply about the development of Bitcoin?
Specifically, what is one parameter that would need to be changed and to what value to accommodate such heavy transaction flow?
Answer:
Code:
Satoshi implies that handling the amount of transactions that Visa processes should not be a problem in time because it was expected that computing power would keep pace with network and transaction growth.
There were concerns with blocksize limits at the time because the bigger they got the more power that would be required with both upload steams (to broadcast to the network) and computing power (to process the transactions).
The blocklimit was set so that mining operations could not out-power single person operations.

Satoshi's emails re transaction processing imply that higher block limits were anticipated and were an expected development of bitcoin.
This is controversial as a number of people see off chain scaling as a better method instead of increasing block size.
At 150,000,000 transactions a day that makes 1,041,667 per block (given it can be mined in 10m), and with a transcation size of around 1kb it would need to be just over 1gb.
My understanding is that upload/download speeds should be able to keep pace with this size.

Winner: Wheelige (https://bitcointalk.org/index.php?action=profile;u=1224968)


Question #7:
What is the Difference Between a Blockchain and a Database?
Answer:
Code:
A database is online, but it is kept there by a server computer, so it is centralized by definition.
If I have a database, I control it and I can manipulate it as I see fit. It can be hacked or changed by others.
A blockchain is decentralized, and it is on hundreds or thousands of computers, based on the popularity of the blockchain.
Some, such as bitcoin blockchain is very popular due to the high price, and some others are not so.
Blockchain is an immutable public ledger and it cannot be hacked, modified, stolen or manipulated.
If you own 51 percent of the blockchain though, then it could be a problem as they can all pool and do something nasty with that.

Winner: ridertiger
 (https://bitcointalk.org/index.php?action=profile;u=1114493)

Question #8:
How exactly does a 51% attack work?

Answer:
Code:
If I had 51%, I could mine a chain of blocks in which I transfer all my coins to my personal wallet.
I'd mine this chain about 10 long, but not tell the rest of the network.
At the same time, I convert all my coins to dollars on the exchange and withdraw them. This happens on the normal blockchain.

After my withdrawal has gone through. the normal blockchain is about 9 long, while my blockchain is 10 long.
I announce all my blocks to the network, and lo and behold, the network confirms I am right.

But dollars can't be reverted! So the exchange takes a loss.

Instead of the exchange, I could do this with buying anything for bitcoins.
If this happens a few times, it will probably kill bitcoin, or at least hurt the trust in the system severely.*
*Credit: BTCurious (https://bitcointalk.org/index.php?action=profile;u=30341)
Source: How exactly would a 51% attack work? (https://bitcointalk.org/index.php?topic=52388.msg625236#msg625236)

Winner:bitmover (https://bitcointalk.org/index.php?action=profile;u=1554927)


Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?
Answer:
Code:
With one confirmation you are vulnerable to the 51% attack. There could also be a miner with a lot of hashing power who could get a couple blocks in a row, so three confirmations removes most of them.

With six confirmations it is essentially mathematically impossible for an attacker with less than 51% of all mining capacity to get six blocks in a row. and still surpass the longest block chain. With 51% or a lot more than 51% the attacker can get six confirmations by creating a parallel blockchain in which only transactions approved by the attacker get included in blocks.

Therefore 6 confirmations are needed to prevent the attack from attacker.

Winner: nalinpuri (https://bitcointalk.org/index.php?action=profile;u=1642043)


Question #10:
What are bitcoin days destroyed?
Answer:
Code:
Bitcoin days destroyed is another way to measure bitcoin trading volume, in a more significant way.

This idea was created because 1 bitcoin could be sent thousand times a day, to create a false high volume.

The idea behind Bitcoin days destroyed is to consider in the trading volume equation the number of days each bitcoin has not moved from that address.

So if you have 1 bitcoin that has not moved in the last 100 days, when it move to another address it would have the same weight in the volume as 100 bitcoin that were transferred yesterday.

This equation would give a more precise value for bitcoin volume and economic activity as it cannot be manipulated by whales.

Winner: bitmover (https://bitcointalk.org/index.php?action=profile;u=1554927)


Question #11:
What does double spend mean?
Answer:
Code:
Double spend is to spend the same coins in 2 different transactions. It's mostly attempted when the 1st transaction doesn't have any confirmations yet, because it becomes much harder to successfully do a double spend after each confirmation.
Double spend is usually attempted when someone makes a transaction by mistake, when a transaction gets stuck because of a low fee, or of course for fraud.
There are several ways to attempt a double spend, what I know of them:
Including a higher fee in the 2nd transaction (the one you want to get it confirmed faster), asking a miner to include your transaction in the next block, these two methods work for unconfirmed transactions.
Double spend can also happen in 51% attacks or similar attacks where the attacker has high hash power. In this case the 1st transaction could have a couple of confirmations and still get reversed. Though this kind of double spend is not worth it unless the amount of transaction is so high.

Winner: Oulay (https://bitcointalk.org/index.php?action=profile;u=1290719)



Title: Re: A simple bitcoin Q/A
Post by: pugman on February 17, 2018, 07:51:10 PM
Alright here is the first question.
Since QuestionAuthority motivated us to create this thread, here is the first question guided by him.
Question : What is bitcoin’s Mempool? What does it do, what is held there and where is it’s physical location on the network?
May the best answer win, remember it is first come first serve.


Title: Re: A simple bitcoin Q/A
Post by: hugeblack on February 17, 2018, 08:01:54 PM
Alright here is the first question.
Since QuestionAuthority motivated us to create this thread, here is the first question guided by him.
Question : What is bitcoinís Mempool? What does it do, what is held there and where is itís physical location on the network?
May the best answer win, remember it is first come first serve.
Memory Pool is a place when Bitcoin transaction being inside After it passes node verification until a miner picks it up in the next block "higher fee go first and lower gets long time [unconfirmed transactions]". itís a node holding awaiting transaction.


Title: Re: A simple bitcoin Q/A
Post by: Xynerise on February 17, 2018, 08:02:05 PM
Alright here is the first question.
Since QuestionAuthority motivated us to create this thread, here is the first question guided by him.
Question : What is bitcoinís Mempool? What does it do, what is held there and where is itís physical location on the network?
May the best answer win, remember it is first come first serve.
The bitcoin mempool is where unconfirmed transactions are stored.
It's a set of all the transactions that have been broadcast but have not yet been added to a block by a miner.

Every node has its own transaction relay policy so there is no definite mempool, but different mempools for different nodes.


Title: Re: A simple bitcoin Q/A
Post by: pugman on February 17, 2018, 08:37:17 PM
Memory Pool is a place when Bitcoin transaction being inside After it passes node verification until a miner picks it up in the next block "higher fee go first and lower gets long time [unconfirmed transactions]". it’s a node holding awaiting transaction.
Looks like you have some idea at least on what Mempool is and your post quality ain't that bad. You have made some edits and this is the first and last warning for any body, the OP has been updated and editing posts would result in disqualification of the answer.
The bitcoin mempool is where unconfirmed transactions are stored.
It's a set of all the transactions that have been broadcast but have not yet been added to a block by a miner.

Every node has its own transaction relay policy so there is no definite mempool, but different mempools for different nodes.
Good, very good. This is what I expect members to post. Keep up the good work bud. Keep posting good quality posts and you shall never be short of merits.
Both of you have been awarded a merit each due to good post quality.


Title: Re: A simple bitcoin Q/A
Post by: pugman on February 17, 2018, 08:44:18 PM
Question #2: What is a legacy address? What is segwit address? What is the difference between these two addresses?
This question may seem too easy but yet most of the users don't know the answer to it. May the best reply win. Do note that posting random stuff  won't help you win. Your grammar must be legible and must make sense. Good luck.


Title: Re: A simple bitcoin Q/A
Post by: bill gator on February 17, 2018, 08:45:05 PM
Sorry I am late, but I just wanted to verify that I will also be handing out merits, picking winners, helping pugman dig through the thread in anyway that I can help. We will be formulating questions together, selecting answers and we will be taking suggestions together.

We thought this up in QuestionAuthority's merit upgrade thread, so shout out to them and QA also gave us our first question. Pugman and I discussed this a little bit after that through PM and thought this would be a solid service/thread/discussion.

We're all trying to learn more about Bitcoin, so if you can suggest a question that will make pugman or I think we may give you merit for that as well, or even may include it as one of our questions (of course, you wouldn't be allowed to answer that one and we better not find anyone giving out answers to their own questions!). Anyways, I won't ramble on too much, have at it, hope we all learn a lot, get merits to the people that deserve them and enjoy ourselves while doing it.

P.S. I have to catch up on my sMerit review thread, so my Merit might be a bit scarce for a bit, but all will be rewarded that deserve it and have patience!


Title: Re: A simple bitcoin Q/A
Post by: BTCforJoe on February 17, 2018, 09:34:44 PM
Great idea, but wouldn't this fit better in Beginners & Help? Either way, can you guys make sure to update either the top post or second post with the questions and answers that are posted throughout this topic? It will be much easier to track that way, and when this topic has multiple pages, newbies won't have to go through pages and pages of Q/A. Just my $0.02! Great job!


Title: Re: A simple bitcoin Q/A
Post by: eddie13 on February 18, 2018, 12:03:15 AM
Question #2: What is a legacy address? What is segwit address? What is the difference between these two addresses?

I'm not a coder but I'll take a crack at it..

Typically from what I see a legacy addy starts with a 1 and a segwit addy starts with a 3.. Not that this is the end all be all..
As far as I understand, segwit vs legacy transactions use a different code to wright transactions so the data that must be saved in the blockchain to confirm these segwit transactions is more compressed or just smaller than the amount of data you have to save in the blockchain for a legacy transaction to confirm the same/similar transaction.. 

You save on miner fees paid in this way because fees are based on how much data you have to write to the blockchain, or space taken up in a block..
Space is very limited so the less space you take up with your TX the less you have to pay and the more TXs will fit per block in total..
This makes fees paid per TX cheaper and more room for more TXs per block therefore higher throughput capacity total for all of Bitcoin.. Though we haven't scene a very big change because the space savings aren't drastic and hasn't yet been thoroughly adopted by users (including myself)..

I haven't really been sending around a lot of BTC lately due to craziness and the places I use are all still using legacy addys so to be honest I have not used segwit yet..
When I have the option to choose my fees paid I use a somewhat low fee as compared to the current going rate and supplement them with the accelerators available..


This question may seem too easy but yet most of the users don't know the answer to it.

You are right but it is quite technical, you can only get a layman's explanation from me :)


Title: Re: A simple bitcoin Q/A
Post by: bill gator on February 18, 2018, 03:48:06 AM
~snip~

I would have liked to know why/how the data was able to be compressed or for there to be less data. You are correct though! I encourage you to read a little bit more into it, so you know exactly what is different about Segregated Witness and the old way of doing things. Unless I'm mistaken, it requires less verification checks to confirm transactions with equal precision. I've given you a merit for this. This means do not participate in the next question, give someone else a chance. ;)



I'm going to run my questions a little bit differently, in the hopes that we can bring even more variance in how things go in here; offer more users a chance at the merit through variance.

You can choose to answer at least one of my questions; but if you answer multiple questions you will still be considered for merit even if one of your questions was already answered (as to not punish you for working/researching longer). Sometimes there will be a mandatory question and then an additional two-questions for you to choose one to answer for a total of two answers. For now, just choose Question A or B to answer (feel free to answer both).



Question A)

When a node receives a block, what does it check for to verify the validity of transactions within it?
What are these checked against?



Question B)

Does Bitcoin have an adaquete solution to the Byzantine Generals problem?
Why not or what is it?


Title: Re: A simple bitcoin Q/A
Post by: killyou72 on February 18, 2018, 08:26:52 AM
How do I properly use oclvanitygen, I keep getting these errors


https://postimg.org/image/tvqyvjw4z/


https://postimg.org/image/lq8wxcxlf/


Title: Re: A simple bitcoin Q/A
Post by: pugman on February 18, 2018, 08:36:55 AM
I shall update and reply to every person here :
Update 1:
Snip
I am sorry but you have failed to read the OP and you have broke 2 rules :
5. If you spam too much you shall be put on ignore and all your posts will be deleted.Not reading the OP and blatantly posting something will get your post deleted.
9. If a user answers a question correct or is granted merits in another way from this thread then he will not attempt the next question.
Your post is thus disqualified and shall be deleted.
Update 2:
Great idea, but wouldn't this fit better in Beginners & Help? Either way, can you guys make sure to update either the top post or second post with the questions and answers that are posted throughout this topic? It will be much easier to track that way, and when this topic has multiple pages, newbies won't have to go through pages and pages of Q/A. Just my $0.02! Great job!
Thanks for your feedback Joe. I have kept the first post as reserved only to add questions and answers. I would let you know this rather be in services board than in beginners and help, I don't expect much users to participate there. Feel free to join the contest.

I'm not a coder but I'll take a crack at it..

Typically from what I see a legacy addy starts with a 1 and a segwit addy starts with a 3.. Not that this is the end all be all..
As far as I understand, segwit vs legacy transactions use a different code to wright transactions so the data that must be saved in the blockchain to confirm these segwit transactions is more compressed or just smaller than the amount of data you have to save in the blockchain for a legacy transaction to confirm the same/similar transaction.. 

You save on miner fees paid in this way because fees are based on how much data you have to write to the blockchain, or space taken up in a block..
Space is very limited so the less space you take up with your TX the less you have to pay and the more TXs will fit per block in total..
This makes fees paid per TX cheaper and more room for more TXs per block therefore higher throughput capacity total for all of Bitcoin.. Though we haven't scene a very big change because the space savings aren't drastic and hasn't yet been thoroughly adopted by users (including myself)..

I haven't really been sending around a lot of BTC lately due to craziness and the places I use are all still using legacy addys so to be honest I have not used segwit yet..
When I have the option to choose my fees paid I use a somewhat low fee as compared to the current going rate and supplement them with the accelerators available..
This question may seem too easy but yet most of the users don't know the answer to it.
You are right but it is quite technical, you can only get a layman's explanation from me :)
Eddie, segwit addresses are of two types. One is bech32(starting with bc1) and the other is P2SH(starting with 3). Note that not all addresses starting with 3 are segwit. Multisig address also start with 3 if I'm not mistaken. So please make some edits and change the answer so that I can quote your answer, do answer bill gator's question too. But otherwise you seem to know what the concept is.
Update 3:
How do I properly use oclvanitygen, I keep getting these errors
-Snip-
Hey, you can check blankcode's video here, pretty helpful.
https://m.youtube.com/watch?v=570voL9fPp0
That doesn't show how to correct the error
and I should be able to use the gen without internet. so I shouldnt have to use that website
so I got rid of the error by adding the calc address to my C directory
now I get this error
https://postimg.org/image/vq3tdd3qr/
Did you check with the syntax? Do clarify your code with that of here: https://bitcointalk.org/index.php?topic=25804.msg321135#msg321135
Also check this link out: https://legacysecuritygroup.com/index.php/projects/recent/12-software/35-oclvanitygen-compiling-and-use
Github code: https://github.com/samr7/vanitygen
If issue of yours is yet not solved,try asking the technical experts here: https://bitcointalk.org/index.php?board=6.0
I think you have mistaken the purpose of the thread. Sure you can ask questions but this is more of a question/answer  to encourage users to learn with the working/functioning of bitcoin. Sorry for any inconvenience caused. Do participate in answering our questions.
Update 4:
This is a great initiative!

I'm going to monitor this thread on a daily basis because I find it very interesting to read.

Please do not lock this thread on account of running out of sMerits. Since I have 100+ of them left I would be happy to give my merits to those who you find worthy.
I'm not sure I know how to do it the right way (I mean making people know that they were merited by you actually) but I think you guys can figure it out.
Keep up the great work!
Sure you can handout the merits to users who answer the questions correctly. We'll just announce that if we run out of merits,some one else is free to merit the users. Thanks for your feedback. :D
Since my proposal was ignored I will try my luck in answering the question because I need merits too. :)
Sorry I had a couple of really busy and hectic days. You were not ignored.
When a node receives a block, it checks all the previous transactions that tally with the wallet that the sender or the transaction request creator used to send bitcon by means of the reference that each one has as inputs.
The network node has a special record of unspent transactions to speed up the process of checking.
Congratulations.
killyou72 is hilarious for just asking their question, but I can see how that could easily be confusing.
Nevermind. :'( :-\


Title: Re: A simple bitcoin Q/A
Post by: killyou72 on February 18, 2018, 08:39:24 AM
That doesn't show how to correct the error

and I should be able to use the gen without internet. so I shouldnt have to use that website

so I got rid of the error by adding the calc address to my C directory

now I get this error

https://postimg.org/image/vq3tdd3qr/


Title: Re: A simple bitcoin Q/A
Post by: Betwrong on February 18, 2018, 01:41:47 PM
This is a great initiative!

I'm going to monitor this thread on a daily basis because I find it very interesting to read.

Please do not lock this thread on account of running out of sMerits. Since I have 100+ of them left I would be happy to give my merits to those who you find worthy.

I'm not sure I know how to do it the right way (I mean making people know that they were merited by you actually) but I think you guys can figure it out.

Keep up the great work!


Title: Re: A simple bitcoin Q/A
Post by: bill gator on February 18, 2018, 04:22:07 PM
You can choose to answer at least one of my questions; but if you answer multiple questions you will still be considered for merit even if one of your questions was already answered (as to not punish you for working/researching longer). Sometimes there will be a mandatory question and then an additional two-questions for you to choose one to answer for a total of two answers. For now, just choose Question A or B to answer (feel free to answer both).



Question A)

When a node receives a block, what does it check for to verify the validity of transactions within it?
What are these checked against?




Question B)

Does Bitcoin have an adaquete solution to the Byzantine Generals problem?
Why not or what is it?
Question A.
What to check is a stuck transaction / unconfirmed transaction.

Not the answer I was looking for and I'm pretty sure this is not correct. This would be an "outcome" of what is performed, I suppose.  My question(s) still remain unanswered to my satisfaction; feel free to give them a try anyone!

killyou72 is hilarious for just asking their question, but I can see how that could easily be confusing.


Title: Re: A simple bitcoin Q/A
Post by: Fazlurkhan.kz on February 18, 2018, 07:00:48 PM
Question A)

When a node receives a block, what does it check for to verify the validity of transactions within it?
What are these checked against?
When a node receives a block, it checks all the previous transactions that tally with the wallet that the sender or the transaction request creator used to send bitcon by means of the reference that each one has as inputs.
The network node has a special record of unspent transactions to speed up the process of checking.


Title: Re: A simple bitcoin Q/A
Post by: bill gator on February 19, 2018, 12:17:54 AM
I had to read your answer like 15-times, because I just couldn't grasp the wording for some reason. Must've just been reading it wrong, or something. After running it through my head a bunch of times, I've realized that you're correct just using different language than I was expecting. I was mostly looking for something along the lines of "It checks the signatures of the transaction against previous blocks". Sounds like you understand though, so I'll give it to you.



What this means, since I'm running my questions differently is that the next question is simply going to be the other unanswered question.

Question B)

Does Bitcoin have an adaquete solution to the Byzantine Generals problem?
Why not or what is it?


Hint : Don't over complicate  your answer


Title: Re: A simple bitcoin Q/A
Post by: Betwrong on February 19, 2018, 06:42:02 PM
Since my proposal was ignored I will try my luck in answering the question because I need merits too. :)


Quote
Question B)

Does Bitcoin have an adaquete solution to the Byzantine Generals problem?
Why not or what is it?

Yes, Bitcoin does have a solution and it is called the proof-of-work algorithm. So to alter "the message" (a block of transactions in our case) as in the classic Byzantine Generals problem and to make it look authentic by guessing a new nonce, one would need to use more Hash Power than the entire network. Since the current Hash Rate is around 23 million TH/s, to achieve that they would need to buy 1.5 million of Antminer S9.


Btw my proposal remains in force in case you'll find it helpful.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bill gator on February 19, 2018, 07:17:37 PM
Yes, Bitcoin does have a solution and it is called the proof-of-work algorithm. So to alter "the message" (a block of transactions in our case) as in the classic Byzantine Generals problem and to make it look authentic by guessing a new nonce, one would need to use more Hash Power than the entire network. Since the current Hash Rate is around 23 million TH/s, to achieve that they would need to buy 1.5 million of Antminer S9.


Btw my proposal remains in force in case you'll find it helpful.

I did not mean to ignore your proposal, but yes that would be excellent. Pugman replies to posts above (https://bitcointalk.org/index.php?topic=2968050.msg30525496#msg30525496), they even responded to you. I will run it by pugman, since it is their thread, but it should not be a problem for us to simply send you a PM when somebody needs a merit or I could keep a little list of people that need their Post # merited. This would help us keep this running without any concern, I appreciate it and accept.

That being said, yes your answer is also correct so I've given you a merit. This means do not attempt to answer the next question.




Question :

Did Satoshi write the Bitcoin Whitepaper or write the code for Bitcoin first?
Why did he choose the one he did to do first?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: buwaytress on February 19, 2018, 07:35:31 PM

Question :

Did Satoshi write the Bitcoin Whitepaper or write the code for Bitcoin first?
Why did he choose the one he did to do first?


Just to say, I didn't know the answer to this. My first assumption was that he wrote the code first (as the whitepaper has some excerpts of coding) but now looking online I see that v0.1 was released on Jan 8 2009... meaning to say the whitepaper was published at least two months before the first version release...

My guess is that the whitepaper still had to be completed after he compiled his first coding, so would still believe it had to be written first. He had to solve the problems Bitcoin aimed to do (direct, trustless p2p payments)... the whitepaper was not so much a proposal for a way to find the solution, but a proposal to use his creation as the solution.

If I'm wrong, and the whitepaper was, indeed, published first... then he did it to gauge the cypherpunk community's interest to decide if the code was worth completing.

Note: I use third person "he" but only figuratively.

P.S. Thanks for this initiative guys! I'm sure I'll learn from the responses.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bill gator on February 19, 2018, 07:49:52 PM
Just to say, I didn't know the answer to this. My first assumption was that he wrote the code first (as the whitepaper has some excerpts of coding) but now looking online I see that v0.1 was released on Jan 8 2009... meaning to say the whitepaper was published at least two months before the first version release...

My guess is that the whitepaper still had to be completed after he compiled his first coding, so would still believe it had to be written first. He had to solve the problems Bitcoin aimed to do (direct, trustless p2p payments)... the whitepaper was not so much a proposal for a way to find the solution, but a proposal to use his creation as the solution.

If I'm wrong, and the whitepaper was, indeed, published first... then he did it to gauge the cypherpunk community's interest to decide if the code was worth completing.

Note: I use third person "he" but only figuratively.

P.S. Thanks for this initiative guys! I'm sure I'll learn from the responses.

I would encourage you to research Satoshi's exact quotes on this sort of thing. Your answer is correct, they wrote the code for Bitcoin before releasing the whitepaper. I am unsure about all of the times of release, and which hit public eye first; but at least from their perspective and words this is what happened :

Quote
I actually did this kind of backwards. I had to
write all the code before I could convince myself that I could solve every
problem, then I wrote the paper. I think I will be able to release the code
sooner than I could write a detailed spec. -Satoshi

I would suggest anyone to read some of their original e-mail threads (most of my questions come from sources such as this) : http://satoshi.nakamotoinstitute.org/emails/cryptography/1/

It's funny that you worded it almost exactly the same as them, talking about solving problems, etc.



Question :

In Satoshi's old e-mails they imply that handling as many transactions as Visa should not be a problem.
What does this imply about the development of Bitcoin?
Specifically, what is one parameter that would need to be changed and to what value to accommodate such heavy transaction flow?


Hint: Controversial
Hint 2: Light Math


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on February 19, 2018, 07:51:34 PM
Page 2 Updates :
Update 1 :

Snip
Now that's how you answer a question! Good job buwaytress.
Snip
Sorry but the question has already been answered  :-[.

Update 2 :

-Snip-
This is entirely plagiarized. I think you have misunderstood from what I meant by research. Research≠Copy pasting.
-snip-
This has also been plagiarized. On top of that someone has merited you for that.
You are breaking the forum rules here.
Archive: http://archive.is/uSW73#selection-4709.1-5052.22
Sources used: https://hackernoon.com/blockchains-versus-traditional-databases-c1a728159f79n
https://www.coindesk.com/information/what-is-the-difference-blockchain-and-database/
https://en.wikipedia.org/wiki/Blockchain
You have only rephrased the sentences for the sake of it..


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: seven2smoke1 on February 19, 2018, 07:51:39 PM

Question :

Did Satoshi write the Bitcoin Whitepaper or write the code for Bitcoin first?
Honestly, I didn't know the right answer. I do some research in google and I found that he published his white paper in some day in 2008, and he already said that he still code for bitcoin. I also read that a legend that says "sometime in 2007" (I mean the time that he begin to write the code for Bitcoin. So, it seems that Satoshi writes the code for Bitcoin first.


Why did he choose the one he did to do first?
For this question, I didn't find any answer until now.

Edit : I got the answer, thanks a lot bill gator.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: buwaytress on February 20, 2018, 10:20:39 AM
I would encourage you to research Satoshi's exact quotes on this sort of thing. Your answer is correct, they wrote the code for Bitcoin before releasing the whitepaper. I am unsure about all of the times of release, and which hit public eye first; but at least from their perspective and words this is what happened :

Quote
I actually did this kind of backwards. I had to
write all the code before I could convince myself that I could solve every
problem, then I wrote the paper. I think I will be able to release the code
sooner than I could write a detailed spec. -Satoshi

I would suggest anyone to read some of their original e-mail threads (most of my questions come from sources such as this) : http://satoshi.nakamotoinstitute.org/emails/cryptography/1/

It's funny that you worded it almost exactly the same as them, talking about solving problems, etc.

Thanks for that, bill! I did spend some time much earlier on reading up on lore... and was fortunate to have been around last year when even more new emails resurfaced in August. I know a lot of people prefer these to be left alone, but history is always important for simple posterity and the giving of context, especially to those who were (and still are) new to Bitcoin.

If only half the projects that launch now put half the effort Satoshi did into Bitcoin... the idea of having a working solution before the white paper hardly exists these days.

Page 2 Updates :
Update 1 :

Snip
Now that's how you answer a question! Good job buwaytress.

Thank you pugman!


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Wheelige on February 21, 2018, 12:47:46 AM
In Satoshi's old e-mails they imply that handling as many transactions as Visa should not be a problem.
What does this imply about the development of Bitcoin?
Specifically, what is one parameter that would need to be changed and to what value to accommodate such heavy transaction flow?

Satoshi implies that handling the amount of transactions that Visa processes should not be a problem in time because it was expected that computing power would keep pace with network and transaction growth. There were concerns with blocksize limits at the time because the bigger they got the more power that would be required with both upload steams (to broadcast to the network) and computing power (to process the transactions). The blocklimit was set so that mining operations could not out-power single person operations.

Satoshi's emails re transaction processing imply that higher block limits were anticipated and were an expected development of bitcoin. This is controversial as a number of people see off chain scaling as a better method instead of increasing block size.
At 150,000,000 transactions a day that makes 1,041,667 per block (given it can be mined in 10m), and with a transcation size of around 1kb it would need to be just over 1gb. My understanding is that upload/download speeds should be able to keep pace with this size.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Betwrong on February 21, 2018, 09:58:47 AM
Yes, Bitcoin does have a solution and it is called the proof-of-work algorithm. So to alter "the message" (a block of transactions in our case) as in the classic Byzantine Generals problem and to make it look authentic by guessing a new nonce, one would need to use more Hash Power than the entire network. Since the current Hash Rate is around 23 million TH/s, to achieve that they would need to buy 1.5 million of Antminer S9.


Btw my proposal remains in force in case you'll find it helpful.

I did not mean to ignore your proposal, but yes that would be excellent. Pugman replies to posts above (https://bitcointalk.org/index.php?topic=2968050.msg30525496#msg30525496), they even responded to you. I will run it by pugman, since it is their thread, but it should not be a problem for us to simply send you a PM when somebody needs a merit or I could keep a little list of people that need their Post # merited. This would help us keep this running without any concern, I appreciate it and accept.

That being said, yes your answer is also correct so I've given you a merit. This means do not attempt to answer the next question.

~
Update 4:
This is a great initiative!

I'm going to monitor this thread on a daily basis because I find it very interesting to read.

Please do not lock this thread on account of running out of sMerits. Since I have 100+ of them left I would be happy to give my merits to those who you find worthy.
I'm not sure I know how to do it the right way (I mean making people know that they were merited by you actually) but I think you guys can figure it out.
Keep up the great work!
Sure you can handout the merits to users who answer the questions correctly. We'll just announce that if we run out of merits,some one else is free to merit the users. Thanks for your feedback. :D
~

Thank you for accepting my proposal, bill gator and pugman! I will be happy to help you with this great project. And thank you for the acknowledgement of my answer and rewarding it with a merit.

While researching the subject I was asking myself what would really happen if a "bad person", a saboteur, had managed to gain more Hash Power than the entire network? Would this be the end of Bitcoin? OR Would they be just able to delay a transaction by 10 minutes and that's all they can do? I would appreciate very much if someone could give me an explanation on this. Maybe you can even announce it as another question if you will. Thanks again for this great topic!


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on February 22, 2018, 04:56:04 AM
A'right here's another question :
Question : What is the Difference Between a Blockchain and a Database?
This is yet another easy question but again people don't know about this. I am looking for some main points, basic explanation is not what I am looking for!


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: sheenshane on February 22, 2018, 09:01:30 AM
A'right here's another question :
Question : What is the Difference Between a Blockchain and a Database?
This is yet another easy question but again people don't know about this. I am looking for some main points, basic explanation is not what I am looking for!
Blockchain
A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly and it is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network. Originally developed as the accounting method for the virtual currency Bitcoin.

Database
Is a collection of information that is organized so that it can be easily accessed, managed and updated. One of the example on this is spreadsheet. SO it seems Bitcoin has a transaction  Database will record on it.

Blockchain as a permanent database, each time a block gets completed, a new one is generated. There is a countless number of such blocks in the blockchain, connected to each other.
For a blockchain database, each participant maintains, calculates and updates new entries into the database. All nodes work together to ensure they are all coming to the same conclusions, providing in-built security for the network.

correct me if i'm wrong.. ;D ;D


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: ridertiger on February 22, 2018, 09:24:55 AM
Instead of rephrasing this link and talking about architecture:
https://www.coindesk.com/information/what-is-the-difference-blockchain-and-database/
I will tell you what I know.
A database is online, but it is kept there by a server computer, so it is centralized by definition. If I have a database, I control it and I can manipulate it as I see fit. It can be hacked or changed by others.
A blockchain is decentralized, and it is on hundreds or thousands of computers, based on the popularity of the blockchain. Some, such as bitcoin blockchain is very popular due to the high price, and some others are not so. Blockchain is an immutable public ledger and it cannot be hacked, modified, stolen or manipulated. If you own 51 percent of the blockchain though, then it could be a problem as they can all pool and do something nasty with that.
There you go, I hope you like what I wrote because I tried to write it as simple as possible.
Maybe there should be a guide like "Bitcoin for idiots" or something like that. Being too hard or technical is a wall in the way of the public.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: just_Alice on February 22, 2018, 10:22:41 AM
A'right here's another question :
Question : What is the Difference Between a Blockchain and a Database?
This is yet another easy question but again people don't know about this. I am looking for some main points, basic explanation is not what I am looking for!
In database everyone sends information into an intermediary, that has a single version of a truth, which helps to avoid disagreement between different parties while communicating through a centralized database. Blockchain has another way to solve the data coordination problem and make sure disagreements won't occur, as it is decentralized and there are multiple parties that share a single truth and none of those parties may be considered as central - the consensus has to be reached. So the individual transactions are put into blocks, and the chain of those blocks must ensure consensus.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Alert31 on February 22, 2018, 11:27:03 PM
A'right here's another question :
Question : What is the Difference Between a Blockchain and a Database?
This is yet another easy question but again people don't know about this. I am looking for some main points, basic explanation is not what I am looking for!

       Blockchain is a continuously growing list of records that consist of several decentralize nodes. It is the worlds leading software platform for digital assets which is originally developed as the accounting method for virtual currency.
     While Database is an structured set of data held in a computer. It is an organized collection of information so that it can be easily accessed,managed and updated.
     Blockhain has a core characteristics of being decentralizes and trustless. Data can be shared accross the network without the need of an intermediary to validate or authorize it.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on February 24, 2018, 06:06:01 PM
Question : How exactly does a 51% attack work?
This might be a hard question to answer but take your time, as long as your answer is correct and you are the only one who has answered, you'd be declared winner. Get your things going.
I'll update the other posts in 24 hours.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on February 24, 2018, 06:26:00 PM
Question : How exactly does a 51% attack work?

When I read your post I immediately thought about someone who has 51% mining power.
As stated  in Bitcoin whitepaper " The system   is   secure   as   long   as   honest   nodes   collectively   control   more   CPU   power   than   any
cooperating group of attacker nodes."

So I believe this is the case.
Well, from my understanding in this case the attackers could just make fake transfers in past blocks to their address. As they would mine faster than the network, this "alternative block" would became the real block, as it is the longest chain. Then the whole network would confirm it later on.

They could even decide which transactions get confirmed or not. And double spend their own coins too.

I made a few google searches, to post a better answer:
https://learncryptography.com/cryptocurrency/51-attack
" 51% attack doesn't give you full power over the bitcoin network. The farther back in the blockchain transactions are, the more secured they are against this kind of attack. Realistically, an attacker would only be able to modify transactions within the past few blocks. They would also not be able to make new coins out of thin air - except those received as block mining rewards as usual.

It is an interesting concept because it is theoretically possible; the network is free and open, so if someone were to have enough computational power (which would cost a huge amount by itself), there is no bitcoin authority to stop them from doing so. In the event that such an attack successfully takes place, it is likely confidence in the currency would be lost and itís value as a currency would decline rapidly. "

Good info here too.
https://bitcointalk.org/index.php?topic=52388.0;all


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Alone055 on February 24, 2018, 07:01:51 PM
What @bitmover has said is totally accurate. But I just want to give my answer too as I'm excited because I learnt this just now while searching for the answer of this, and have never been aware of anything like this before.

So, a more clear and simple answer to the question, "How exactly does a 51% attack work?" is that a person or a group of people having control over 51% or more hash power can easily manipulate the transactions, meaning they can prevent other miners from mining any blocks and do it themselves to earn all the block rewards and they can pretty easily double-spend a transaction done by themselves, or prevent other transactions to get confirmed.
However, they cannot do much with already mined blocks and transactions. The more the time distance of a transaction/block is, the less are the possibilities for the attackers to change or reverse it.
Such an attack can be done even with less hash power but the probability of success would be much less then.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bill gator on February 24, 2018, 08:19:35 PM
In Satoshi's old e-mails they imply that handling as many transactions as Visa should not be a problem.
What does this imply about the development of Bitcoin?
Specifically, what is one parameter that would need to be changed and to what value to accommodate such heavy transaction flow?

Satoshi implies that handling the amount of transactions that Visa processes should not be a problem in time because it was expected that computing power would keep pace with network and transaction growth. There were concerns with blocksize limits at the time because the bigger they got the more power that would be required with both upload steams (to broadcast to the network) and computing power (to process the transactions). The blocklimit was set so that mining operations could not out-power single person operations.

Satoshi's emails re transaction processing imply that higher block limits were anticipated and were an expected development of bitcoin. This is controversial as a number of people see off chain scaling as a better method instead of increasing block size.
At 150,000,000 transactions a day that makes 1,041,667 per block (given it can be mined in 10m), and with a transcation size of around 1kb it would need to be just over 1gb. My understanding is that upload/download speeds should be able to keep pace with this size.

I apologize for taking so long to reply and merit you. I've been running around like a chicken with their head cut-off, very busy trying to get a small bitcoin mining operation started among other things.

Your numbers are a little different from mine, but I was going off of the # of transactions that were happening back then, so I'll give it to you. Your reasoning, logic and everything else arrives you at the right conclusion. It seems like pugman has been running the questions for now, so I won't hop in the way; just wanted to give credit where it is due.

Correct, Merited I'll post another question when Pugman seems stumped, out of ideas or requests for me to do so.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on February 25, 2018, 09:24:13 PM
Question :A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?
I have 2 previous answers to update, I'll try my best to update it within 48-72 hours along with the answers for this question.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Akash1243 on February 25, 2018, 09:55:37 PM
Question :A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?
I have 2 previous answers to update, I'll try my best to update it within 48-72 hours along with the answers for this question.

After 6 confirmations it is safe from any attacker as the transactions won't be vulnerable to race or finney attacks and 6 confirmations is enough for large amount therefore it is usually considered to be secure.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: coly20032003 on February 26, 2018, 01:41:03 AM
Question :A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?
I have 2 previous answers to update, I'll try my best to update it within 48-72 hours along with the answers for this question.

As mentioned in bitcoin wiki (https://en.bitcoin.it/wiki/Help:FAQ#Why_do_I_have_to_wait_10_minutes_before_I_can_spend_money_I_received.3F), only 6 blocks or 1 hour is enough to make reversal computationally impractical. Generally when it reaches 6 confirmations, there will be far less possibility for the transaction to be reversed, thus it is secure. 10 minutes is the average time needed to find a block. It will be very very hard for attacker to overtake the blockchain from a fork six blocks prior.

Also, in Satoshi's paper (https://bitcoin.org/bitcoin.pdf), it shows:
Code:
P < 0.001
q=0.10   z=5
q=0.15   z=8
q=0.20   z=11
q=0.25   z=15
q=0.30   z=24
q=0.35   z=41
q=0.40   z=89
q=0.45   z=340

If the attacker has a small percentage of hashing power then 6 blocks will be enough to ensure the secure of the transaction.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DarkStar_ on February 26, 2018, 04:05:10 AM
Question :A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?
I have 2 previous answers to update, I'll try my best to update it within 48-72 hours along with the answers for this question.

After 6 confirmations it is safe from any attacker as the transactions won't be vulnerable to race or finney attacks and 6 confirmations is enough for large amount therefore it is usually considered to be secure.

That is false. On July 4, 2015, there was a 6 block orphan chain, and those blocks were accepted by almost all wallet software. It was a result of SPV mining (mining based off of just the block header, without verification. Can give a small advantage in letting them find a block a bit faster) ontop of an invalid block that signaled a v2 block (the network had soft forked into v3 blocks). It's entirely possible that a transaction could have been put in the first orphan block, got to 6 confirmations, and then went back to 0. The mempool could have had more higher fee transactions in the process, making the earlier mentioned transaction have a slower confirmation time. This allows an attacker to theoretically double spend with a higher fee. It is an extremely rare scenario, but it is false to assume that it is entirely safe from any attacker. There were fortunately no double spends from July 4th.

More reading:

https://bitcoin.org/en/alert/2015-07-04-spv-mining
https://en.bitcoin.it/w/index.php?title=July_2015_chain_forks&redirect=no


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Ahmat faisol on February 26, 2018, 03:09:20 PM
Question #6:
In Satoshi's old e-mails they imply that handling as many transactions as Visa should not be a problem.
What does this imply about the development of Bitcoin?
Specifically, what is one parameter that would need to be changed and to what value to accommodate such heavy transaction flow?
Answer:
Scalability is the subject of the first correspondence and recurring themes in emails. Satoshi commented that the higher boundary block size could be offset once "we have actual usage close to the limit and ensure its performance is okay", adding that the choice is to keep it lower to a more reasonable size and believe that Moore's law will ensure current capacity This will ensure the capacity grows with demand.
Educated scales, and mathematics succeed in producing numbers. I want something that is not too low if it is very popular and not too high if not. "He added that the 10-minute block target is also a conjecture.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: EthanB on February 26, 2018, 04:55:02 PM
That is false. On July 4, 2015, there was a 6 block orphan chain, and those blocks were accepted by almost all wallet software. It was a result of SPV mining (mining based off of just the block header, without verification. Can give a small advantage in letting them find a block a bit faster) ontop of an invalid block that signaled a v2 block (the network had soft forked into v3 blocks). It's entirely possible that a transaction could have been put in the first orphan block, got to 6 confirmations, and then went back to 0. The mempool could have had more higher fee transactions in the process, making the earlier mentioned transaction have a slower confirmation time. This allows an attacker to theoretically double spend with a higher fee. It is an extremely rare scenario, but it is false to assume that it is entirely safe from any attacker. There were fortunately no double spends from July 4th.

More reading:

https://bitcoin.org/en/alert/2015-07-04-spv-mining
https://en.bitcoin.it/w/index.php?title=July_2015_chain_forks&redirect=no

I was completely unaware of this ever occurring. I was reading through Satoshi's old emails as suggested and he was speaking about how 6-blocks should/would be sufficient enough that it would not be an orphan chain. I'm reading through the extra reading you've provided, but I can't find any comparisons, clarification or contextualization of what Satoshi meant by this. Have we moved away from the original development enough to render his statement incorrect, or was this always a significant possibility?

I know you said it was due to SPV, but I am wondering why this chain was not invalidated sooner? What have we done to prevent this in the future, or is this still a capability?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DarkStar_ on February 26, 2018, 10:52:04 PM
That is false. On July 4, 2015, there was a 6 block orphan chain, and those blocks were accepted by almost all wallet software. It was a result of SPV mining (mining based off of just the block header, without verification. Can give a small advantage in letting them find a block a bit faster) ontop of an invalid block that signaled a v2 block (the network had soft forked into v3 blocks). It's entirely possible that a transaction could have been put in the first orphan block, got to 6 confirmations, and then went back to 0. The mempool could have had more higher fee transactions in the process, making the earlier mentioned transaction have a slower confirmation time. This allows an attacker to theoretically double spend with a higher fee. It is an extremely rare scenario, but it is false to assume that it is entirely safe from any attacker. There were fortunately no double spends from July 4th.

More reading:

https://bitcoin.org/en/alert/2015-07-04-spv-mining
https://en.bitcoin.it/w/index.php?title=July_2015_chain_forks&redirect=no

I was completely unaware of this ever occurring. I was reading through Satoshi's old emails as suggested and he was speaking about how 6-blocks should/would be sufficient enough that it would not be an orphan chain. I'm reading through the extra reading you've provided, but I can't find any comparisons, clarification or contextualization of what Satoshi meant by this. Have we moved away from the original development enough to render his statement incorrect, or was this always a significant possibility?

I know you said it was due to SPV, but I am wondering why this chain was not invalidated sooner? What have we done to prevent this in the future, or is this still a capability?

I don't think Satoshi envisioned SPV mining taking place, as after all, the role of a miner is to validate transactions. SPV mining includes no transactions and does not validate the previous block. A lot of the nodes at the time weren't on the latest version, so they accepted the block as valid, and roughly half of the network was SPV mining, so they would accept invalid blocks, and start to build on those.

This should no longer be an issue. Bitcoin Core 0.9.5 and later versions can detect invalid blocks now related to the BIP 66 (https://github.com/bitcoin/bips/blob/master/bip-0066.mediawiki) rules, and there is zero reason to be running a node with such an old version. Most, or all of the network has stopped SPV mining, as it's more profitable to fill up blocks, and better for the network. This almost certainly won't happen in the future, but it's false to say that 6 confs is safe from any attacker. There could be some other extremely rare case that happens in the future, that leads to a similar result.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: athanz88 on February 27, 2018, 05:45:18 AM
This is a great thread. I made one thread about giving away merit but people told me i should lock my thread and come to this thread. Ill try to support sending sMerits if i find a good answer too if i may, may i Pugman and bill gator?

Question #6:
In Satoshi's old e-mails they imply that handling as many transactions as Visa should not be a problem.
What does this imply about the development of Bitcoin?
Specifically, what is one parameter that would need to be changed and to what value to accommodate such heavy transaction flow?

The purpose of bitcoin development is to serve people as a digital currency that can be used for micro or macrotransaction everywhere and by everyone, without a 3rd party work in it. So those words mean that Satoshi's want bitcoin used for everyday purpose like Visa did today for millions (or even billions) of people, not as a digital assets like people do now. And for one parameter that would need to be changed is block size, it has made a lot of debate over the years as bitcoin only use 1 mb up until now and the reason behind it is to fight transaction spamming on the network because if bitcoin has bigger block size then it would be more vulnerale to transaction spamming, it is a great reason though, but some people who are in "bitcoin world" suggested to increase it to at least 2mb.


Please tell me if my answer is bad or not  ::) , still on learning proccess.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Oulay on February 27, 2018, 11:32:28 AM
Question #6:
In Satoshi's old e-mails they imply that handling as many transactions as Visa should not be a problem.
What does this imply about the development of Bitcoin?
Specifically, what is one parameter that would need to be changed and to what value to accommodate such heavy transaction flow?

I didn't really get your first question but you may be referring to the the time Satoshi limited the block size to 1mb or to when he posted this:

It can be phased in, like:

if (blocknumber > 115000)
    maxblocksize = largerlimit

It can start being in versions way ahead, so by the time it reaches that block number and goes into effect, the older versions that don't have it are already obsolete.

When we're near the cutoff block number, I can put an alert to old versions to make sure they know they have to upgrade.

About the second question: The one parameter is the block size, I don't really know how much it would need to be increased but I would guess to a thousand times the current 1mb block size. Because the Bitcoin network is now handling around 210k transactions per day based on blockchain.info while visa is handling around 150 million.

By the way, thanks for trying to help us while making us learn something in the same time.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on February 27, 2018, 04:23:22 PM
Page 3 Updates:

Update 1:
This is a great thread. I made one thread about giving away merit but people told me i should lock my thread and come to this thread. Ill try to support sending sMerits if i find a good answer too if i may, may i Pugman and bill gator?
Sure you can. Any one can merit the they feel is merit deserving.
New rule:Plagiarizing or copy pasting content from various sources is NOT allowed. Rephrasing such content is also not allowed.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on February 28, 2018, 04:18:13 AM
Question : What are bitcoin days destroyed?
No copy pasting!


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: tranminh on February 28, 2018, 07:07:27 AM
Question #9
Here is my answer
The classic bitcoin client will show a transaction as "n/unconfirmed" until the transaction is 6 blocks deep. Merchants and exchanges who accept bitcoins as payment can and should set their own threshold as to how many blocks are required until funds are considered confirmed. When potential loss due to double spending as nominal, as with very inexpensive or non-fungible items, people may choose not to wait for a transaction to be confirmed, and complete the exchange as soon as it is seen on the network. Most exchanges and other merchants who bear the risk from double spending require 6 or more blocks.

There is nothing special about the default, often-cited figure of 6 blocks. It was chosen based on the assumption that an attacker is unlikely to amass more than 10% of the hashrate, and that a negligible risk of less than 0.1% is acceptable. Both these figures are arbitrary, however; 6 blocks are overkill for casual attackers, and at the same time powerless against more dedicated attackers with much more than 10% hashrate.

Freshly-mined coins cannot be spent for 100 blocks. It is advisable to wait some additional time for a better chance that the transaction will be propagated by all nodes. Some older bitcoin clients won't show generated coins as confirmed until they are 120 blocks deep.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on February 28, 2018, 10:47:28 AM
Question : What are bitcoin days destroyed?
No copy pasting!

Bitcoin days destroyed is another way to measure bitcoin trading volume, in a more significant way.

This idea was created because 1 bitcoin could be sent thousand times a day, to create a false high volume.

The idea behind Bitcoin days destroyed is to consider in the trading volume equation the number of days each bitcoin has not moved from that address.

So if you have 1 bitcoin that has not moved in the last 100 days, when it move to another address it would have the same weight in the volume as 100 bitcoin that were transferred yesterday.

This equation would give a more precise value for bitcoin volume and economic activity as it cannot be manipulated by whales.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: EthanB on February 28, 2018, 02:10:21 PM
I don't think Satoshi envisioned SPV mining taking place, as after all, the role of a miner is to validate transactions. SPV mining includes no transactions and does not validate the previous block. A lot of the nodes at the time weren't on the latest version, so they accepted the block as valid, and roughly half of the network was SPV mining, so they would accept invalid blocks, and start to build on those.

That's probably because SPV mining seems to have very little utility in the Bitcoin protocol. Unless I am misunderstanding it, SPV mining sacrificed security for speed. This is constantly an argument within the crypto world, but I think Bitcoin's stance on security from the beginning should be respected. We can't be mining blocks without validating what they're doing. This is just encouraging splits, orphan chains and a less stable network.

This should no longer be an issue. Bitcoin Core 0.9.5 and later versions can detect invalid blocks now related to the BIP 66 (https://github.com/bitcoin/bips/blob/master/bip-0066.mediawiki) rules, and there is zero reason to be running a node with such an old version. Most, or all of the network has stopped SPV mining, as it's more profitable to fill up blocks, and better for the network. This almost certainly won't happen in the future, but it's false to say that 6 confs is safe from any attacker. There could be some other extremely rare case that happens in the future, that leads to a similar result.

I fail to see why SPV mining became a thing in the first place, that is to say that I don't believe it should have ever been an issue; I guess hind-sight is 20/20. So then the answer to the question would be "Unknown", is that right? Wouldn't it have been possible for these invalid blocks to have garnered more than the 6 confirmations they did? I guess I'm wondering if there would ever be a "safe" amount of confirmations, because the blockchain is constantly under attack by those searching for anyway to exploit it or manipulate it.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DarkStar_ on February 28, 2018, 11:12:35 PM
This should no longer be an issue. Bitcoin Core 0.9.5 and later versions can detect invalid blocks now related to the BIP 66 (https://github.com/bitcoin/bips/blob/master/bip-0066.mediawiki) rules, and there is zero reason to be running a node with such an old version. Most, or all of the network has stopped SPV mining, as it's more profitable to fill up blocks, and better for the network. This almost certainly won't happen in the future, but it's false to say that 6 confs is safe from any attacker. There could be some other extremely rare case that happens in the future, that leads to a similar result.

I fail to see why SPV mining became a thing in the first place, that is to say that I don't believe it should have ever been an issue; I guess hind-sight is 20/20. So then the answer to the question would be "Unknown", is that right? Wouldn't it have been possible for these invalid blocks to have garnered more than the 6 confirmations they did? I guess I'm wondering if there would ever be a "safe" amount of confirmations, because the blockchain is constantly under attack by those searching for anyway to exploit it or manipulate it.

Miners want to make a larger profit, so it just took time for someone to come up with something like this. I think the answer to the question would still be six, as the probability has significantly lowered since the last time it happened. The bitcoin network had a empty mempool when this happened, so sacrificing probably 10-100 dollars per block might have been worth the chance of a larger payout. Today, miners would be throwing away 3000+ dollars roughly per block they SPV mine from fees. The network had also undergone a soft fork with new rules, and not everyone would have been on the latest Bitcoin Core that enforced these rules. I don't expect to see another BIP66 in the near future. I think it's fair to assume that they are safe, but it is never a guarantee.

You are correct in that the chain could have been over 6 blocks, but I believe only around 50% of the network was SPV mining, so the more time passes, the higher the chance that the other 50% would have found a valid block.



pugman/bill gator, mind if I asked a question? I'll reward the merits my self, and you don't have to add it to the OP, I just don't want to make a new thread


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bill gator on March 01, 2018, 12:50:49 AM
pugman/bill gator, mind if I asked a question? I'll reward the merits my self, and you don't have to add it to the OP, I just don't want to make a new thread

You got it, ask away. I give you my blessing to take over the thread in any capacity you deem necessary. You are educating better than I could pull off and I'm ready to let someone else take over the merit situation, because I am at 0 for now.

Pugman is an easy going fellow, doubt they'd have any problem with you doing the same. I don't wanna speak for someone else, though.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DarkStar_ on March 01, 2018, 02:10:58 AM
pugman/bill gator, mind if I asked a question? I'll reward the merits my self, and you don't have to add it to the OP, I just don't want to make a new thread

You got it, ask away. I give you my blessing to take over the thread in any capacity you deem necessary. You are educating better than I could pull off and I'm ready to let someone else take over the merit situation, because I am at 0 for now.

Pugman is an easy going fellow, doubt they'd have any problem with you doing the same. I don't wanna speak for someone else, though.

Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

I'll offer up to 20 merits depending on how well your answer is, especially if you make a point that I haven't thought of. I expect more than the obvious benefits and drawbacks, posts with just those will not get merited (by me anyway). Same rules listed by pugman apply.


Title: Re: A simple bitcoin Q/A
Post by: DarkStar_ on March 01, 2018, 04:50:48 AM

Quote
Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

one is free to consider a bitcoin transaction as valid as soon as it appears on the ledger. However, the greater number of confirmations grants better surety that the transaction is valid and the buyer is not trying to double spend.

Each subsequent confirmation makes the computational effort required to forge the contents of 51% of the distributed ledger that much higher; 6 confirmations is considered a practical limit after which the feasibility of such forgery becomes infinitesimally small. 6 confirmations is often considered to be as safe as waiting 6 months on a credit card transaction.


You picked the wrong thread to copy and paste in.  Here's an archived version of your post. (http://archive.is/81lln)

Copied from a Quora response: https://www.quora.com/Why-do-you-need-to-wait-for-6-confirmations-for-bitcoins

I was just about to give you a few merits too! 对不起.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: izanagi narukami on March 01, 2018, 05:10:46 AM
Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?


Q : With 6 confirmation, you're safe from double spending ! With 6 confirmation, you're safe to do transaction for more than $ 10.000 although you must wait about 1 hour in process !


...

Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.
...

Benefit :
  • With bitcoin, I can purchase anythings without worried being robbed ( example : carrying money )
  • Bitcoin also provide cheaper fee and you also have double advantage ( investment & income)
  • With bitcoin, we can do transaction without converting into certain currency because every country accept bitcoin ( Absolutely No fee for conversion )

Drawbacks :

  • Bitcoin still volatile so when you're accept bitcoin , you're investing into risky investment except you sold it directly as soon as you got paid with bitcoin
  • After you run your business , suddenly your government decide to forbid bitcoin usage because security reason. Bitcoin still consider as criminal money.
  • Bitcoin still can be hacked :( although they said bitcoin using SHA 512


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BTCforJoe on March 01, 2018, 05:44:55 AM
Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

Considering that you're an online business, cash generally isn't a payment option for your customers. Paying via credit card means that there are fees: for both you and the buyer. While these fees are usually offset for the buyer via bonuses, such as points or airline miles, you, as the seller, are stuck with having to pay merchant fees for allowing credit card payments. Accepting bitcoin means that you, as a seller, do not have to pay fees for the transaction. Chances are that the transaction fees are [currently] lower than the credit card fees for the buyer, as well. Customers can also rest assured knowing that their personal information, such as their billing information that is tied to their credit card, is not divulged to your company. This should allow the customer to buy your products with ease, knowing that their privacy is never at risk.

Additionally, you no longer have to wait to have the cash on-hand. Once a bitcoin transaction successfully receives confirmation, it's yours to spend immediately; no more having to wait for your credit card agency to transfer the money to your bank, especially when there are international fiat currency exchanges involved.

More importantly for you, as a business, you're not susceptible to chargebacks, such as with credit card payments! Once a transaction has occurred, it's final. Customers can no longer fraudulently chargeback a transaction for any reason.

Given that there is a small minority of retailers that accept Bitcoin, yours will be considered one of the "forward thinkers" of this day and age. As a large business, you'll definitely gain positive press for accepting Bitcoin, which will be free press and marketing for simply deciding to accept Bitcoin.

Additionally, given that Bitcoin is considered a commodity by the Canadian government and the Canada Revenue Agency, you don't have to pay taxes on your Bitcoin earnings, unless the value of Bitcoin is higher when you're ready to convert it to fiat currency than it was when you acquired it. If so, then you'll have to pay capital gains taxes on it, which is the perfect segue into the drawbacks of accepting Bitcoin for your business:

Bitcoin is still highly unknown to the Canadian government. Because of its past ties to illegal activities, your Bitcoin could be at risk if the authorities deem any form of investigation into how you acquired the bitcoin. Because you'll be forced to comply, your bitcoin could be in limbo while investigations are conducted. All the government needs is one (false) report that your company is using Bitcoin to launder money or for trafficking, and you'll be forced to give up your bitcoin while they (attempt to) clear any false claims.

This is a farfetched scenario, but the risk is definitely there. Another risk of accepting Bitcoin? The extreme volatility of the currency. Because it's not tied to any fiat currency, and given that all of the products that your store will offer are based on a cash value, you could end up taking a loss for any given transaction if the price of Bitcoin dips after the transaction was conducted. This could be a matter of minutes or a matter of weeks. Because there is no guarantee that the price of bitcoin will increase, every transaction you conduct is at risk of realizing instant losses the moment you sell a product. On the contrary, your profits could be easily multiplied if the price of Bitcoin inflates after a sale has been made.

As a large business, you'll also be susceptible to hacking, and you'd be a target for hackers to try and intercept your customers' payments. Because bitcoin users are also more tech-savvy, it attracts the bad along with the good. Your store's website could be prone to attacks, which could come with hackers' demands for you to pay a ransom (ironically more than likely with Bitcoin) in order to resume your site's normalcy.

There are additionally many perks and drawbacks to the customer for using Bitcoin to purchase products, but since you asked about benefits and drawbacks of your business, I'll leave it at that. Does this answer your question?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Husires on March 01, 2018, 05:55:44 AM
Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.
Since Bitcoin is not a legal tender "not supported by any government or central authority" that mean you must pay Income Tax Act.
This means that if you want to start a big activity like selling physical  items you must be included your income for tax purposes"Because you didnít use the legal currency".
You must report any gains or losses when assessing taxes.

benefits
Global market:You can sell to all parts of the world and you can win big markets that canít pay by conventional methods such as the visa and MasterCard "African and Asian markets".
Low fees:Anyone around the world can pay for you less fees than $ 10 "Cheap product"
drawbacks
taxes and more taxes: income tax and bitcoin tax "bitcoin as commodity"
Legal Legislation: It can be changed at any time.
Bitcoin fluctuation:
Rigidity by CRA.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: jpespa on March 01, 2018, 06:07:53 AM
pugman/bill gator, mind if I asked a question? I'll reward the merits my self, and you don't have to add it to the OP, I just don't want to make a new thread

You got it, ask away. I give you my blessing to take over the thread in any capacity you deem necessary. You are educating better than I could pull off and I'm ready to let someone else take over the merit situation, because I am at 0 for now.

Pugman is an easy going fellow, doubt they'd have any problem with you doing the same. I don't wanna speak for someone else, though.

Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

I'll offer up to 20 merits depending on how well your answer is, especially if you make a point that I haven't thought of. I expect more than the obvious benefits and drawbacks, posts with just those will not get merited (by me anyway). Same rules listed by pugman apply.

The benefits and drawbacks of accepting bitcoin for the business are:

*
It is convenient because you can buy online without hassle through paying bitcoin and it is a fast process since you only need to send bitcoin from your btc address to another btc address and there you have it. The problem that could possibly occur though is the confirmation speed and its transaction fees. Since bitcoin has become more popular nowadays many people now are getting involved with it meaning the number of transactions being created are increasing also and it can result to a delay of your incoming or outgoing bitcoin and increase in transaction fees because of overloaded unconfirmed transactions.

*
Because of its volatility, if you sold an item in bitcoin then how much you receive will be its equivalent value at the time you receive it and you cannot change the fact that once you received your bitcoin income, you might gain or lose some of its amount depending on its price movement. For example you are able to sold such goods or services for 100$(in bitcoin) but when you receive it you might actually get more or less than 100$ because bitcoin's price has moved again.

*
I just remembered what I read recently if I am correct in Canada when you convert your bitcoin into Canadian dollar then it becomes subjected to tax. Barter transaction rule is applied when bitcoin is used to purchase goods or services and for tax purpose, the fair market value of the goods or services sold are included as income and I understood in this part is that regardless of the price swings the income that you will declare is based on the fair market value of that goods and services sold by your large business.

But the good part of all is that bitcoin is legally accepted in Canada unlike other countries that banned it.

Please feel free to correct if there are some mistakes on my opinion especially on the last part. :D Thanks!


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BTCforJoe on March 01, 2018, 06:08:11 AM
Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

Now that I'm thinking about it, there are so many more drawbacks of running a large store that accepts Bitcoin... You've got my brain working in overtime now, and all these thoughts keep popping into my head lol. Automation, being one of them. You'd have to hire developers to make an automated payment and fulfillment system, such as the ones that are used by existing fiat payment processors. This comes with a high-cost, as you'd have to have a custom build, or use existing companies like BitPay or Blockonomics. Custom builds will cost thousands of dollars to develop, and you have to put a lot of trust in the dev not to backdoor your code. Using bitcoin payment processors, in turn, means that there are, in fact, fees for your bitcoin payment transactions.

All of this talk can't be for no good reason. DarkStar_, do you run an online retailer that accepts Bitcoin, or are you thinking of starting one? I'm quite interested lol


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: tranminh on March 01, 2018, 09:50:31 AM
I think except fee of transactions one of the most drawbacks of accepting Bitcoin are Legality.
Before you want accept BTC for your business
How about Legality of bitcoin in Canada? I am not a Canadian and I just study about Cryptocurrency. I am finding some information at https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory#North_America:

Bitcoin would seem to be classified pursuant to the current provisions of the PPSA simply as an "intangible".[25]
Bitcoin is expected to be regulated under anti-money laundering and counter-terrorist financing laws in Canada, based on a federal budget bill (C-31), passed in 2014.[26] Regulations must be enacted before this provision becomes active,[27][28] however, once they are it is expected that "dealers in digital currency" will be regulated as money services businesses.[29] The Authorite des Marches Financiers, the regulator in the province of Quebec, has declared that some bitcoin related business models including exchanges and ATMs are regulated under its current MSB Act.[30]

Maybe some one tell me exactly the answel for this question


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DarkStar_ on March 01, 2018, 02:35:40 PM
Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

Now that I'm thinking about it, there are so many more drawbacks of running a large store that accepts Bitcoin... You've got my brain working in overtime now, and all these thoughts keep popping into my head lol. Automation, being one of them. You'd have to hire developers to make an automated payment and fulfillment system, such as the ones that are used by existing fiat payment processors. This comes with a high-cost, as you'd have to have a custom build, or use existing companies like BitPay or Blockonomics. Custom builds will cost thousands of dollars to develop, and you have to put a lot of trust in the dev not to backdoor your code. Using bitcoin payment processors, in turn, means that there are, in fact, fees for your bitcoin payment transactions.

All of this talk can't be for no good reason. DarkStar_, do you run an online retailer that accepts Bitcoin, or are you thinking of starting one? I'm quite interested lol

No, this is purely a hypothetical with the aims of people doing more research, and maybe figuring out why their favorite retailer doesn't accept BTC, and of course learning.

Edit: I've given some posts related to this question a few merits, will still offer more if you mention something not already mentioned


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: alisafidel58 on March 02, 2018, 05:13:14 AM
Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Answer:

Long story short. This is to prevent the action of double spending. The probability of having a double spending with 1 confirmation is much higher than 6, thus making the transaction with a normal or lesser fee will be overwritten and making it invalid with the same transaction but with a much higher fee (usually higher transaction fee goes first).


Let say i made 2 competing transaction 1 with lower fee and 1 with a higher fee. Im sending 1 transaction to some random person with a lower fee and the other is mine with a much higher fee.

If there is only 1 confirmation mine would get through first in the network rather than the other transaction (because i have much higher fee than the other transaction).
After i get to spend the inputs on the transaction i receive thus making the other transaction invalid (making it double spend).

With 6 confirmation any miner or client can see that there is a double spend making both transaction invalid.


This is my understanding why 6 confirmation is needed or usually considered to be a secure transaction.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: izanagi narukami on March 02, 2018, 08:22:12 AM
....
No, this is purely a hypothetical with the aims of people doing more research, and maybe figuring out why their favorite retailer doesn't accept BTC, and of course learning.

Edit: I've given some posts related to this question a few merits, will still offer more if you mention something not already mentioned

My government decide to forbid bitcoin as transaction because bitcoin still consider as criminal money.
Our public enemy are the corruptor and my government afraid that they begin to use bitcoin to cover their transaction.

For another reason, bitcoin is the currency based on dollar and my currency are weak against dollar.
Let say if BTC1 = $ 50.000 , our currency become nothing and it's cause inflation ! And when it's happen , everything will be expensive !

Different country have their different excuse so that's mine !


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Dr.Lecter on March 02, 2018, 01:46:17 PM
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Quote
Assume I have 10% of the network hashrate, then:

If you require 1 confirm, I can doublespend once every 4.9 blocks on average.

If you require 2 confirms, then I can doublespend once every 19.6 blocks on average.

If you require 6 confirms, then I can doublespend once every 4118 blocks on average.

Source: original bitcoin whitepaper by Satoshi Nakamoto, page 8. (https://bitcoin.org/bitcoin.pdf /)

Why 6 and not 7? Because 1 hour (average time to confirm) is a round number.
Quote
It's worth noting that the attacker also loses (n - 1) confirms * block reward every time his attack fails (by not immediately broadcasting his blocks). So that 2 confirm attack would cost the attacker 465btc per successful execution so it better be a big double spend.

For more details. (https://www.reddit.com/r/Bitcoin/comments/1cqyb1/why_6_confirmations/)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on March 02, 2018, 02:23:38 PM
Please evaluate my answer too.. i would love have any feedback...


Quote
Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.
Code:
Benefits:
1. Since your all transaction are online, Bitcoin is perfect. No worries for online charge back claims after items are delivered.
2. No need to worry about stolen cards issues
3. You won't be paying any fee to Payment Gateways which are up top 2.5% + per transaction extra fees. Bitcoin fees are very low.
4. Every payment gateway need some kind of technical knowledge to successfully implement and manage it, using bitcoin this will be hassle free.
5. Your potential customers will increase dramatically, not every body having a credit card or bank account for your online purchases but everyone can
have a bitcoin wallet irrespective of age or location.
6. Your audit is on your finger tips. You don't need to hire a audit firm and pay to conduct an audit on your transaction and go through 100s of banks
statements  to just produce a single audit report. Your audit reported is secured online get a internet access print all your history.
Drawbacks:
1. Volatility of Bitcoin, some day you will need a fiat money for your own payments and this BTC to Fiat conversion can hurt you from little to worse.
2. As of today not much options to withdraw your BTC money that fast, your options are limited in terms of exchanges offering withdraws or BTC ATMs.
3. Transaction reversal is not possible, in traditional way using credit card transactions can be reversed but in BTC you won't be having such options.
4. Possibility of loosing EVERYTHING. If you loose your wallet or private key, gone! you loose every thing forever.
5. Legals: Yet Canada does not consider Bitcoin transaction illegal, but there is no guarantee that government will not ban Bitcoin/crypto currency,
so business can at risk any time.




Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: nightwolf69 on March 02, 2018, 02:50:33 PM
Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?
_______________________________________________________________
Satoshi's paper outlines the number of confirmations necessary to be 99.9% sure (less than 1 in 1000 chance of success) that an attacker couldn't build a longer chain to reverse the transaction.
 1-if the attackerís hashrate is 10% of the total network hashrate (0.1 on
the horizontal axis), 2 confirmations are required to keep the success rate below 10%, 4
confirmations are needed to have it less than 1%, and 6 confirmations are necessary to
decrease the probability of success below 0.1.
2-There is nothing special about the default, often-cited figure of 6 confirmations. It was
chosen based on the assumption that an attacker is unlikely to amass more than 10%
of the hashrate, and that a negligible risk of less than 0.1% is acceptable. Both these
figures are arbitrary, however; 6 confirmations are overkill for casual attackers, and at
the same time powerless against more dedicated attackers with much more than 10%
hashrate.
3-If the attacker controls more hashrate than the honest network, no amount of confirmations
will reduce the success rate below 100%.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: athanz88 on March 02, 2018, 03:48:04 PM
Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

Now that I'm thinking about it, there are so many more drawbacks of running a large store that accepts Bitcoin... You've got my brain working in overtime now, and all these thoughts keep popping into my head lol. Automation, being one of them. You'd have to hire developers to make an automated payment and fulfillment system, such as the ones that are used by existing fiat payment processors. This comes with a high-cost, as you'd have to have a custom build, or use existing companies like BitPay or Blockonomics. Custom builds will cost thousands of dollars to develop, and you have to put a lot of trust in the dev not to backdoor your code. Using bitcoin payment processors, in turn, means that there are, in fact, fees for your bitcoin payment transactions.

All of this talk can't be for no good reason. DarkStar_, do you run an online retailer that accepts Bitcoin, or are you thinking of starting one? I'm quite interested lol

No, this is purely a hypothetical with the aims of people doing more research, and maybe figuring out why their favorite retailer doesn't accept BTC, and of course learning.

Edit: I've given some posts related to this question a few merits, will still offer more if you mention something not already mentioned

Sorry to step in and i can not edit the quotes because im on mobile and it is kinda hard and take a long time.

I guess i just want to add a drawback because people already add a lot.
1. You will lose more money from paying taxes of your worker who doesnt want to be paid with bitcoin. Lets calculate it.
Lets pretend 1btc=1usd, when you make a big sell, your amount will be taxed if you exchange it to fiat, and lets say you will be taxed at 20%. So,
-Fiat workers case :
You got 1000 btc deal, and when you change it to 1000 usd it will be taxed 20% and you make 800. If you have 20 workers with 10usd fees, you will pay them 200 for total and leave you 600usd.
-BTC workers case
You got 1000 btc deal, you pay them 200btc for 20 workers, leave you 800btc, but when you change it to fiat you will be taxed 20% but it will leave you 640usd.
See my point? If you pay your worker with fiat, then you pay their taxes, but it will not matter if you have a worker who wants to be paid with btc.
Lets try if the price is 1btc=10000usd, tax 20%, and workers fee is 2000 a month, 20 workers, you got 1000btc deal
-fiat workers case
You got 10.000.000 usd when exchange it to fiat, taxed 20% you got 8.000.000 usd and minus total workers fee at 40.000 so you got 7.960.000 usd
-Btc worker case
You got 1000 btc, and paid workers fee at 4 btc (40.000usd) will leave you with 996 btc, when you change it to fiat you got 9.960.000, and you pay tax for 20%and will leave you with 7.968.000 usd
Correct me if im wrong, im open to a discussion


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on March 02, 2018, 04:05:00 PM
Question: We ya'll have been on this forum for quite some time all thanks to Satoshi or whatever his real name is. Most of us even earn on this forum, some people even abuse it but we never thank anybody for it. If Satoshi ever returns to this forum or rather reveals himself IRL, what will you do to make the world a better place? How will you thank him? People say bitcoin is shit and is useless but it did reach 20,000$ and a lot of people became millionaires and billionaires because of it and yet there's no token of appreciation. So elaborate on how you're going to thank Satoshi. Even theymos has played a big part, so he deserves a hell a lot of appreciation. Bring it in.
This is not a question where you are going to learn about bitcoin, but I felt bad on people being such assholes and cunts. Learn to thank people for what they are and how they are trying to make this world a better place to live in every single day.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: onrise on March 02, 2018, 04:29:00 PM
Indeed today we all are connected on this forum is also due to the Satoshi firstly and then very obvious Theymos  as well. Let me tell you what I was couple of year back did not not matter much to people as they mostly ignored or dint meant anything me in their life. Though felt really bad but I always knew one thing that hard time passes by and need to wait for the opportunity and grab it when it comes.  Bitcoin was that opportunity when I was introduced to it by my friends and from their things have definitely become much better personally and also around me and it has definitely changed the lives of millions of people across the world and made them self depended too now. This would have not being possible unless we had Satoshi to create something like this and then by Theymos to bring all under this forum. So yes my life changed for better and for my family and credit goes to founder of Bitcoin.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: athanz88 on March 02, 2018, 05:00:28 PM
Question: We ya'll have been on this forum for quite some time all thanks to Satoshi or whatever his real name is. Most of us even earn on this forum, some people even abuse it but we never thank anybody for it. If Satoshi ever returns to this forum or rather reveals himself IRL, what will you do to make the world a better place? How will you thank him? People say bitcoin is shit and is useless but it did reach 20,000$ and a lot of people became millionaires and billionaires because of it and yet there's no token of appreciation. So elaborate on how you're going to thank Satoshi. Even theymos has played a big part, so he deserves a hell a lot of appreciation. Bring it in.
This is not a question where you are going to learn about bitcoin, but I felt bad on people being such assholes and cunts. Learn to thank people for what they are and how they are trying to make this world a better place to live in every single day.

If i am a creator of something, i would be proud of myself if my creation is known and used all over the world be any people, rich or poor, old or young, men or women. For now, sending them money is not an option because they are already richer than most of us, so the option left is to give them the joy to be proud of their creation, but how? In my opinion the best way is to spread bitcoin all over the world, locally, in wherever place you are right now, it will create a potential bitcoin user as a real bitcoin user, later on will make a country adapt bitcoin and blockchain technology, in short word, spread the awareness of bitcoin. There is no better feeling than knowing you are making a useful product for humanity.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DarkStar_ on March 03, 2018, 03:59:23 PM
-snip-

Sorry to step in and i can not edit the quotes because im on mobile and it is kinda hard and take a long time.

I guess i just want to add a drawback because people already add a lot.
1. You will lose more money from paying taxes of your worker who doesnt want to be paid with bitcoin. Lets calculate it.
Lets pretend 1btc=1usd, when you make a big sell, your amount will be taxed if you exchange it to fiat, and lets say you will be taxed at 20%. So,
-Fiat workers case :
You got 1000 btc deal, and when you change it to 1000 usd it will be taxed 20% and you make 800. If you have 20 workers with 10usd fees, you will pay them 200 for total and leave you 600usd.
-BTC workers case
You got 1000 btc deal, you pay them 200btc for 20 workers, leave you 800btc, but when you change it to fiat you will be taxed 20% but it will leave you 640usd.
See my point? If you pay your worker with fiat, then you pay their taxes, but it will not matter if you have a worker who wants to be paid with btc.
Lets try if the price is 1btc=10000usd, tax 20%, and workers fee is 2000 a month, 20 workers, you got 1000btc deal
-fiat workers case
You got 10.000.000 usd when exchange it to fiat, taxed 20% you got 8.000.000 usd and minus total workers fee at 40.000 so you got 7.960.000 usd
-Btc worker case
You got 1000 btc, and paid workers fee at 4 btc (40.000usd) will leave you with 996 btc, when you change it to fiat you got 9.960.000, and you pay tax for 20%and will leave you with 7.968.000 usd
Correct me if im wrong, im open to a discussion

I don't see why I'd be taxed at 20% when I sell. Unless I'm very wrong, Canada taxes Bitcoin under capital gains, so I'd only be taxed 20% or whatever the amount is for the gains I made. I think how it works is that if I earned 1000 BTC when it was worth $1, and I sold it instantly, it would not be a capital gain. If I sold at $2, $1000 should be taxed at capital gains as that's the amount gained.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bill gator on March 03, 2018, 04:26:39 PM
I don't see why I'd be taxed at 20% when I sell. Unless I'm very wrong, Canada taxes Bitcoin under capital gains, so I'd only be taxed 20% or whatever the amount is for the gains I made. I think how it works is that if I earned 1000 BTC when it was worth $1, and I sold it instantly, it would not be a capital gain. If I sold at $2, $1000 should be taxed at capital gains as that's the amount gained.

I think you would be taxed less than that actually. Capital gains only applies if you've purchased the bitcoin with CAD, or something like that; there are contingencies on capital gains that wouldn't apply to earned Bitcoin. I believe only purchased Bitcoin that you've sold for a profit. I don't know Canadian law, but in American law in many states and federally you do not need to pay Capital Gains on your Bitcoin unless you purchased it with USD or another currency that you've purchased with USD (if you exchanged your currency, for example), something like that; I'm no legal expert. It is a bit circular, but that's because there is little to no precedent and I do not know of any cases where they have pursued and won legal judgement against someone in a situation like this. It could be argued that only sales tax and the other normally applicable taxes would be in order for your business; unless your business is financial investments. I think the Small business tax rate is something closer to 10% in Canada, plus you must retain PST/QST/RST if that's relevant.  So you'd be paying about half that in taxes for any regular business besides financial investment.

Edit: When you accept USD for example, you do not pay the capital gains on whatever increase in value the USD may experience before you exchange it back to CAD; unless you are a financial investment company. At least, this is how I understand it and have seen many people operate this way.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BTCforJoe on March 04, 2018, 12:06:51 AM
Edit: When you accept USD for example, you do not pay the capital gains on whatever increase in value the USD may experience before you exchange it back to CAD; unless you are a financial investment company. At least, this is how I understand it and have seen many people operate this way.

Without googling the answer, I believe this to be incorrect, as both USD and CAD are deemed currencies by both nations. At the most, you'll pay an exchange fee imposed by your bank or exchange service that you use, but that shouldn't be confused as a tax from either government. Bitcoin is considered a property, and if the Canadian law is anything like US law, it gets treated just like real estate. You only pay capital gains on any profits that you make from selling it. If you sell it at a loss, however, I'm not sure if you can claim that loss, like you would with a house. Although I'm a US citizen, I do not use USD to purchase Bitcoin, so I don't ever plan on having to pay taxes on it, so I guess I've never researched it into full detail like I do for everything else tax-related in my life :P


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: nalinpuri on March 04, 2018, 09:04:42 AM
Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Answer

With one confirmation you are vulnerable to the 51% attack. There could also be a miner with a lot of hashing power who could get a couple blocks in a row, so three confirmations removes most of them.

With six confirmations it is essentially mathematically impossible for an attacker with less than 51% of all mining capacity to get six blocks in a row. and still surpass the longest block chain. With 51% or a lot more than 51% the attacker can get six confirmations by creating a parallel blockchain in which only transactions approved by the attacker get included in blocks.

Therefore 6 confirmations are needed to prevent the attack from attacker.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: athanz88 on March 05, 2018, 05:39:52 PM

I don't see why I'd be taxed at 20% when I sell. Unless I'm very wrong, Canada taxes Bitcoin under capital gains, so I'd only be taxed 20% or whatever the amount is for the gains I made. I think how it works is that if I earned 1000 BTC when it was worth $1, and I sold it instantly, it would not be a capital gain. If I sold at $2, $1000 should be taxed at capital gains as that's the amount gained.


I think you would be taxed less than that actually. Capital gains only applies if you've purchased the bitcoin with CAD, or something like that; there are contingencies on capital gains that wouldn't apply to earned Bitcoin. I believe only purchased Bitcoin that you've sold for a profit. I don't know Canadian law, but in American law in many states and federally you do not need to pay Capital Gains on your Bitcoin unless you purchased it with USD or another currency that you've purchased with USD (if you exchanged your currency, for example), something like that; I'm no legal expert. It is a bit circular, but that's because there is little to no precedent and I do not know of any cases where they have pursued and won legal judgement against someone in a situation like this. It could be argued that only sales tax and the other normally applicable taxes would be in order for your business; unless your business is financial investments. I think the Small business tax rate is something closer to 10% in Canada, plus you must retain PST/QST/RST if that's relevant.  So you'd be paying about half that in taxes for any regular business besides financial investment.

Edit: When you accept USD for example, you do not pay the capital gains on whatever increase in value the USD may experience before you exchange it back to CAD; unless you are a financial investment company. At least, this is how I understand it and have seen many people operate this way.

So, reading it from here :

https://www.canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html#toc3
https://www.canada.ca/en/revenue-agency/news/newsroom/fact-sheets/fact-sheets-2015/what-you-should-know-about-digital-currency.html


Like bill gator said, capital gains tax only applied to the profit you make from crytocurrency you bought from your local currency (in this case CAD) and if you make a business company that accepts bitcoin then the trade that happens between you and your customer is under the law of barter in the Canada. You would be required to file the amount of the trade as your income and you are liable for taxes.

https://www.moneywehave.com/how-is-cryptocurrency-taxed-in-canada/
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it490/archived-barter-transactions.html

Sorry that i brought a lot of links, just want to give some sources so people can read it as a references. Please correct me if i am wrong because i can be wrong since i am not a native english speaker, i am not a legal expert, and not an expert in Canadian law on taxes.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Joel_Jantsen on March 05, 2018, 07:34:08 PM
This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. :)

My question : How to calculate transaction fees before sending bitcoins ?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on March 05, 2018, 09:15:34 PM
This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. :)

My question : How to calculate transaction fees before sending bitcoins ?

Wow that is one tricky question.. i will give it a try:

Since we know fee are calculated per byte. So lesser bytes mean lower fee. That's how miners calculate!

I presume your question is from the consumer (sender) prospective. If we are using segwit fee be can reduced to half. Also most wallets don't tell the size of the transaction at all, so i will leave the exact calculation a side.

On average single transaction usually have 1 input and 2 outputs  which will be =>226 bytes, 

Now we must know what is average/median fee per byte in recent block to get this we have to get from somewhere like "https://bitcoinfees.earn.com/" => i got it 30 satoshis/byte (fastest and cheapest)

If I multiply it with bytes 226 x 30 = 6780 satoshis = 0.0000678 => 0.79 US Dollar (fast & min)

So can that's lowest, now from the same website, i can the max 181 satoshis/byte

If I multiply it with bytes 226 x 181 = 40906 satoshis = 0.00040906 BTC => 4.74 US Dollar  (max)

May be i went into too technical details :)




Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: CoolWave on March 06, 2018, 04:46:47 AM
This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. :)

My question : How to calculate transaction fees before sending bitcoins ?

A one liner answer may be , just use electrum wallet and you should be fine as it has both rbf and cpfp option . In case you need more info, use this website : bitcoinfees.earn.com . With electrum, you can preview size and tx fee too .


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DarkStar_ on March 07, 2018, 02:34:08 AM
This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. :)

My question : How to calculate transaction fees before sending bitcoins ?

Wow that is one tricky question.. i will give it a try:

Since we know fee are calculated per byte. So lesser bytes mean lower fee. That's how miners calculate!

I presume your question is from the consumer (sender) prospective. If we are using segwit fee be can reduced to half. Also most wallets don't tell the size of the transaction at all, so i will leave the exact calculation a side.

On average single transaction usually have 1 input and 2 outputs  which will be =>226 bytes,  

Now we must know what is average/median fee per byte in recent block to get this we have to get from somewhere like "https://bitcoinfees.earn.com/" => i got it 30 satoshis/byte (fastest and cheapest)

If I multiply it with bytes 226 x 30 = 6780 satoshis = 0.0000678 => 0.79 US Dollar (fast & min)

So can that's lowest, now from the same website, i can the max 181 satoshis/byte

If I multiply it with bytes 226 x 181 = 40906 satoshis = 0.00040906 BTC => 4.74 US Dollar  (max)

May be i went into too technical details :)

You did not go technical at all. Fees are now calculated using block weight, or vBytes (virtual bytes) with the recent Segwit upgrade. P2SH-P2WPKH address (SegWit nested in P2SH address) transactions are often larger in raw bytes than normal transactions, but have a lower fee because of block weight. The 1 MB block size limit has been replaced with block weight of 4 MB. Normal transaction data counts as 4 times their actual size (100 bytes of normal data would have a weight of 400 bytes), and SegWit data is treated as their normal size. This does not cut the fee in half like you claim, and the savings increase the more complicated (more inputs and outputs) the transaction gets.

The median transaction has 1 input and 2 outputs, and it is certainly not the average. 226 bytes is only true when Compressed Legacy (legacy, meaning addresses that begin with "1") sends to a Legacy address. If the input is Segwit or not compressed, it has a different size, being approximately 258 bytes and 168 vBytes (249 real) respectively. An output that is bech32 saves an additional 3 bytes, and for reasons I'm unaware of, it appears that sending to P2SH-P2WPKH has the same 3 byte savings.

Please stop recommending bitcoinfees.earn.com, it overestimates fees quite significantly. It was recommending 100 satoshis/byte a few days ago when 5 sat/byte were getting in the same block. Currently it suggests 20 sat/byte, while Coinb.in (https://coinb.in/#fees) suggests 4 sat/byte, and if you look at the mempool (https://core.jochen-hoenicke.de/queue/#2h), only 0.28 MB of transactions are paying a fee of 5 sat/byte or higher. Paying 20 sat/byte would just be plain stupid right now, and you would have literally no reason to do so. The best way in my opinion is to check out Jochen's mempool stats (https://core.jochen-hoenicke.de/queue/#2h) in combination with Coinb.in (https://coinb.in/#fees) to determine the optimal fee to use. Based on the current stats, I'd have to agree that 4 sat/byte is the cheapest, and will get you confirmed in the next block.

Most wallets will either let you pick a satoshi/byte fee, or a fixed amount, and tell you the size of the transaction. This lets you get the correct size, and in turn, the correct fee. I'd argue that most transactions are not 226 bytes any more, with the introduction of SegWit, and from getting many (smaller) inputs. This is more true the higher your transaction value is.

For an actual technical post, I would have expected vBytes to be at the very least mentioned, maybe block weight, and definitely more in depth info on transaction sizes.

This is indeed an interesting thread.Kudos fellas,very informative.I hope all the technical answers at least are kept updated in the first post (might as well as one of the mods to reserve couple of  posts for the thread).

Am I allowed to ask questions ? If anyone want's to,give the below question a try.If the answers is convincing,I'll leave some merits. :)

My question : How to calculate transaction fees before sending bitcoins ?

A one liner answer may be , just use electrum wallet and you should be fine as it has both rbf and cpfp option . In case you need more info, use this website : bitcoinfees.earn.com . With electrum, you can preview size and tx fee too .

Electrum was asking people to overpay just like BitcoinFees.earn.com a few weeks ago. It currently suggests 18 sat/byte for next block on version 3.0.6, which is at least 2 times more than you need. RBF helps if you pay a low fee, but does not prevent you from overpaying.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on March 07, 2018, 05:29:22 AM
For an actual technical post, I would have expected vBytes to be at the very least mentioned, maybe block weight, and definitely more in depth info on transaction sizes.

wow well now this is technical. Yeah you are right and actually i was about to mention the block-weight but since i considered answering from a normal business user who want to estimate an average fee before sending. Otherwise you answered perfectly! I did not know many things you highlighted. Thank you.

Regarding bitcoinfees.earn.com vs coinb.in i guess it's showing the lowest fee to get it into the next few blocks where bitcoinfees.earn.com is estimating the fastest.  Also i guess difference of calculating based on last 24h vs last recent block transaction giving different results.


Title: Re: A simple bitcoin Q/A
Post by: r1s2g3 on March 08, 2018, 06:56:32 PM
Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Maybe this is the right answer.

Quote
There is nothing special about the default, often-cited figure of 6 blocks. It was chosen based on the assumption that an attacker is unlikely to amass more than 10% of the hashrate, and that a negligible risk of less than 0.1% is acceptable. Both these figures are arbitrary, however; 6 blocks are overkill for casual attackers, and at the same time powerless against more dedicated attackers with much more than 10% hashrate.
https://en.bitcoin.it/wiki/Confirmation#cite_note-1

I will add that probability of reversing the transaction drop off exponentially with each confirmation. So it is always dependent on amount of transaction vs confirmation . If the amount of transaction  is more than cost of reversing the transaction of 6 confirmation then merchant will wait for more confirmation.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Coffee_Lover on March 09, 2018, 04:13:58 AM
Hi pugman and bill gator! Thanks for this thread. I hope I can read every answer and quote here so I can also learn. While reading this thread, I thought that there are lots (as in lots and lots) of things i don't really know about bitcoin. At first, I only thought of how to acquire activities so I can rank higher ('cause higher ranks mean higher stakes and token for bounties), join as many bounties as possible to have stakes and tokens so I could sell them and have money.

But since the merit system was implemented, I learn to control myself in posting (though it's not shitposting for me) and read articles in google to provide quality posts. I also learned to read threads that are very informative and look into other threads that are interesting. However, obtaining merits became hard for me. I hope I can research and answer well to be worthy of those sMerits of yours! Good luck to me!



Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on March 09, 2018, 07:28:18 PM
Question: What does double spend mean?
Welcome Joel_Jantsen. Sure,you can ask questions,so long it helps in increasing user's existing knowledge. Feel free to ask some more.
To everyone who has answered in this thread: I haven't updated the answers for a couple of questions,moderation of unwanted messages is still left but give me a couple of days(probably) to sort things out. You shall receive your merit if you answer correctly according to the question and you also follow the rules. Failure to do so,would result you not to receive any merits.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BTCforJoe on March 09, 2018, 09:40:53 PM
Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Answer

With one confirmation you are vulnerable to the 51% attack. There could also be a miner with a lot of hashing power who could get a couple blocks in a row, so three confirmations removes most of them.

With six confirmations it is essentially mathematically impossible for an attacker with less than 51% of all mining capacity to get six blocks in a row. and still surpass the longest block chain. With 51% or a lot more than 51% the attacker can get six confirmations by creating a parallel blockchain in which only transactions approved by the attacker get included in blocks.

Therefore 6 confirmations are needed to prevent the attack from attacker.


Although this question could have been answered better, this the best that has been posted thus far. Enjoy the merit.

With that said, I think the question is a bit dated now. Not many exchanges require 6 confirmations these days, and theoretically, itís almost impossible with the amount of hashing power spread across miners for the possibility of a 51% attack to be conducted successfully. One hasnít happened yet, and itís theoretically improbable. But that doesnít mean that you should ever, I repeat ever, treat an unconfirmed transaction the way you would one with a couple confirmations.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: nakamura12 on March 12, 2018, 08:39:19 PM
Question: We ya'll have been on this forum for quite some time all thanks to Satoshi or whatever his real name is. Most of us even earn on this forum, some people even abuse it but we never thank anybody for it. If Satoshi ever returns to this forum or rather reveals himself IRL, what will you do to make the world a better place? How will you thank him? People say bitcoin is shit and is useless but it did reach 20,000$ and a lot of people became millionaires and billionaires because of it and yet there's no token of appreciation. So elaborate on how you're going to thank Satoshi. Even theymos has played a big part, so he deserves a hell a lot of appreciation. Bring it in.
This is not a question where you are going to learn about bitcoin, but I felt bad on people being such assholes and cunts. Learn to thank people for what they are and how they are trying to make this world a better place to live in every single day.
If ever satoshi reveals himself and thank satoshi that i became millionaire or more for example. I would travel and meet satoshi personally just to greet and thank satoshi for what he's done to those who became millionaires around the world. To make the world a better place i would start a campaign about cryptocurrency that will promote bitcoin and share it to those who don't know about cryptocurrencies but of course i won't teach directly on what to do to earn from bitcoin. I would start a program first that will help those who doesn't know what is cryptocurrency?, what are the cryptocurrencies? and so on.

Correct me if i'm wrong. Compliments are accepted, opinions, advice and others you want to share to me.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Oulay on March 12, 2018, 09:50:03 PM
Question: What does double spend mean?
I'm so sleepy right now to make sure my answer is accurate but here I go:
Double spend is to spend the same coins in 2 different transactions. It's mostly attempted when the 1st transaction doesn't have any confirmations yet, because it becomes much harder to successfully do a double spend after each confirmation.
Double spend is usually attempted when someone makes a transaction by mistake, when a transaction gets stuck because of a low fee, or of course for fraud.
There are several ways to attempt a double spend, what I know of them:
Including a higher fee in the 2nd transaction (the one you want to get it confirmed faster), asking a miner to include your transaction in the next block, these two methods work for unconfirmed transactions.
Double spend can also happen in 51% attacks or similar attacks where the attacker has high hash power. In this case the 1st transaction could have a couple of confirmations and still get reversed. Though this kind of double spend is not worth it unless the amount of transaction is so high.

Correct or wrong answer I'd be happy to receive feedback  ;D


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Daboy_Lyle on March 13, 2018, 02:04:35 PM
Question #9:
A bitcoin transaction with 6 confirmations is usually considered to be secure. Why is it so?

Answer

With one confirmation you are vulnerable to the 51% attack. There could also be a miner with a lot of hashing power who could get a couple blocks in a row, so three confirmations removes most of them.

With six confirmations it is essentially mathematically impossible for an attacker with less than 51% of all mining capacity to get six blocks in a row. and still surpass the longest block chain. With 51% or a lot more than 51% the attacker can get six confirmations by creating a parallel blockchain in which only transactions approved by the attacker get included in blocks.

Therefore 6 confirmations are needed to prevent the attack from attacker.


Although this question could have been answered better, this the best that has been posted thus far. Enjoy the merit.

With that said, I think the question is a bit dated now. Not many exchanges require 6 confirmations these days, and theoretically, itís almost impossible with the amount of hashing power spread across miners for the possibility of a 51% attack to be conducted successfully. One hasnít happened yet, and itís theoretically improbable. But that doesnít mean that you should ever, I repeat ever, treat an unconfirmed transaction the way you would one with a couple confirmations.
Each block is stacked on top of the previous one. Adding another block to the top makes all lower blocks more difficult to remove: there is more "weight" above each block. A transaction in a block 6 blocks deep (6 confirmations) will be very difficult to remove.After a transaction is broadcast to the Bitcoin network, it may be included in a block that is published to the network. When that happens it is said that the transaction has been mined at a depth of 1 block. With each subsequent block that is found, the number of blocks deep is increased by one. To be secure against double spending, a transaction should not be considered as confirmed until it is a certain number of blocks deep.Note that unconfirmed transactions do not expire. Just wait until the transaction be confirmed. For my experience 10 minutes is enough for the transaction to be confirmed.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on March 19, 2018, 02:24:28 PM
Phew! Finally evaluated the answers and gave merits to a few deserving posts.

Joel,did you find the answer you were looking for? So that you could merit any one who deserves it.
Question: Give a short summary on bitcoind.

A tiny bump.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on March 19, 2018, 06:35:33 PM
Question: Give a short summary on bitcoind.


https://en.bitcoin.it/wiki/Bitcoind
https://en.bitcoin.it/wiki/Bitcoin_Core

bitcoind is a program that implements the Bitcoin protocol for remote procedure call (RPC) use. It is also the second Bitcoin client in the network's history. It is available under the MIT license in 32-bit and 64-bit versions for Windows, GNU/Linux-based OSes, and Mac OS X.

As part of Bitcoin Core, bitcoind has been bundled with the original client from version 0.2.6 to 0.4.9, and with Bitcoin-Qt since 0.5.0.

Bitcoind is a headless daemon, and also bundles a testing tool for the same daemon. It provides a JSON-RPC interface, allowing it to be controlled locally or remotely which makes it useful for integration with other software or in larger payment systems.

bitcoind is a multithreaded C++ program. It is designed to be portable across Windows, Mac, and Linux systems. The multithreaded aspect leads to some complexity and the use of certain code patterns to deal with concurrency that may be unfamiliar to many programmers. Also, the code is aggressive in the use of C++ constructs, so it will help to be fluent with map, multimap, set, string, vector, iostream, and templates. As is typical of a C++ program, a lot of code tends to end up in the header files so be sure to search both the .cpp and .h files when looking for a function

The client is capable several major operations
Initialization and Startup,Node Discovery,Node Connectivity,Sockets and Messages,Block Exchange,Transaction Exchange,Wallet Services,RPC Interface,User Interface


Sorry, Till above I just copied the wiki, I do not want to rephrase and paraphase because the above information is very cleary written and very understandable.

My understading and confusion: Bitcoind is one of the 2 variation  original bitcoin program available and a 'headless' version.  I assume it is written by Satoshi as he used to be cheif developer 0.3.19 but what used to be first client and what shortcomings/enhancement is in bitcoind from the first client.

https://en.bitcoin.it/wiki/Original_Bitcoin_client


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shezu007 on March 21, 2018, 06:30:44 AM
I appreciated this type of work here. That is the best way through which all users will get actual and important information about bitcoin.
We need to launch such activities more and more and i am sure that will give better result to the forum. As people will get accurate knowledge and will be able to make constructive and more informative posts. Salute to this activity.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bill gator on March 21, 2018, 09:34:24 PM
Phew! Finally evaluated the answers and gave merits to a few deserving posts.

I know the feeling, we've got a couple of threads that require a lot of attention and time. Then you add regular everyday life into the equation and you end up feeling like there's not enough hours in the day to just do the simple things. I feel bad that I have been mostly missing from this thread and it has been awhile since I've popped my head in, but it seemed like you and a couple other users have found somewhat of a rhythm so I didn't want to mess that up. I'm researching questions and always learning more, so whenever that rhythm seems to stutter I will have questions at the ready without a problem.

Phew indeed pugman, but good job not letting this thread get away from you and staying on top of it.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on March 22, 2018, 08:58:43 AM
Question: Give a short summary on bitcoind.
Answer:
One liner could be bitcoind is a source code of bitcoin.
Short summary, it is a non-gui software originally written by Satoshi Nakamoto (now maintained by Bitcoin community). It can handle all the functionalities of bitcoin like transaction verification, sending and receiving of bitcoins and running as full node by downloading the full blockchian of bitcoin.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Ginzink on March 27, 2018, 08:01:31 AM
Quote
Question: Give a short summary on bitcoin.

Money Anonymity
That's my summary for bitcoin,

The question was about Bitcoind not bitcoin :)
And bitcoin is more decentralized than anonymous  ::)

Really awesome thread, first post with all thoose good answers really did teach me something so thank you :)
Already good answers on it so wont try, but interesteing that something i had not heard of was first launched in 2009 and latest update is just 1 month old!
It looks like a complicated daemon to run.

Could i suggest the next question? "How does a bitcoin wallet work and what is the daemon role?" -Or something in that area :)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: evilsign on March 29, 2018, 07:08:22 AM
 
Question: Give a short summary on bitcoind.


Answer : bitcoind stands for "Bitcoin Daemon" where a daemon is any computer process which runs in the background ("service" in Windows terminology). Short conclusion right?  ;D


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BTCforJoe on March 29, 2018, 09:16:18 PM

Question: Give a short summary on bitcoind.


Answer : bitcoind stands for "Bitcoin Daemon" where a daemon is any computer process which runs in the background ("service" in Windows terminology). Short conclusion right?  ;D

Youíve stated what bitcoind means, but not what it is or its function. Embellish a tad bit more on your answer (very simple, yet conclusive) and youíll get a merit from me!


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: apur688 on March 29, 2018, 10:18:32 PM
Question: Give a short summary on bitcoind.

Bitcoin is a boss and bitcoind is an employee of bitcoin.
 anything about bitcoind is connected with bitcoin. But reading from Bitcoin Wiki, "As part of Bitcoin Core, bitcoind has been bundled with the original client...". Although it is bound by bitcoin, bitcoind works by itself in managing its systems and networks. So bitcoind is an independent network.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on March 30, 2018, 05:07:45 PM
Phew! Finally evaluated the answers and gave merits to a few deserving posts.

I know the feeling, we've got a couple of threads that require a lot of attention and time. Then you add regular everyday life into the equation and you end up feeling like there's not enough hours in the day to just do the simple things. I feel bad that I have been mostly missing from this thread and it has been awhile since I've popped my head in, but it seemed like you and a couple other users have found somewhat of a rhythm so I didn't want to mess that up. I'm researching questions and always learning more, so whenever that rhythm seems to stutter I will have questions at the ready without a problem.

Phew indeed pugman, but good job not letting this thread get away from you and staying on top of it.
I know right. Bill,don't worry. Feel free to hop in any time and ask the questions,I am sure you'll get a lot of answers.
I just realized I haven't been online for 4-5 days.. Crap. Need to get my shit together.
Will evaluate the answers soon and will have another question for y'all.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: qweqwe2121 on April 05, 2018, 07:30:56 AM
Question: Give a short summary on bitcoind.

A tiny bump.

Bitcoind is a multithreaded C++ program. The multithreaded aspect leads to some complexity and the use of certain code , so it will help to be fluent with map, multimap, set, string, vector, iostream, and templates.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on April 13, 2018, 02:21:37 PM
Question: What is a distributed ledger?

The merits for the previous question will be awarded within a couple of hours. Sorry for the delay. And don't plagiarize. Learn something new. Understand. Don't do this just for the sake of merit. Do it because you love bitcoin and you want to learn new stuff about. That's what is the main purpose of this thread.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on April 13, 2018, 03:35:26 PM
Question: What is a distributed ledger?

A distributed ledger is a database in which the data is shared to all participants in the network. All those participants record, share an synchronize the whole data. There is no need for a central authority in a distributed ledger.  I read reports of early distributed ledgers in 80s and 90s, very interesting.

I think the most famous distributed ledger now is R3 Corda, and some banks are testing it for financial services. R3 Corda is based on blockchain. But it's designed for financial services. One interesting difference is that not all participants (nodes) have all data in R3 Corda.

Blockchain is somehow a distributed ledger. But the process of organizing the database throught blocks, and linking these blocks using hashes, the method of consensus based on Proof of Work, is totally different from a common distributed ledger.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Kim Ji Won on April 13, 2018, 04:17:23 PM
Distributed ledgers is a type of database where you can share access of the data to all parties included in the network and each one can have a shared control over the maintenance of the set of shared facts. Decentralization of databases gives you the authority to these databases enabling you to make changes to data it holds but with the consensus of all parties involved. Therefore creating a valid data and making a trusted information.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: cryptothief on April 14, 2018, 04:46:40 AM
These guys distributed Ledger...

https://i.imgur.com/xdF7q9M.jpg


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Kim Ji Won on April 14, 2018, 06:35:00 AM
Whoa! I've answered it correctly I guess? Didn't expect that I will tho. ;D, but hey! TBH I just recently bumped into his thread yesterday and I don't really know that there is this kind of service. I really learned a lot and I added this thread to my watchlist. Hope that this thread continues to function even if pugman and bill gator run out of sMerits to give because as I went to the whole thread, it seems there are a few members with many sMerits that would like to chip in if ever you guys are running out of it.

Anyways, I gave back the merit I received in hope that it could also help others to be awarded. If I may ask, I understand that after being merited for answering the question, I should not participate in the next question but I can participate in the question after that right? Even so, can I still answer your next question even if I am not merited for it? I just want to know if what I learned/understand about it is correct or not, you can just quote my answer if it correct or wrong then.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on April 14, 2018, 12:01:40 PM
Whoa! I've answered it correctly I guess? Didn't expect that I will tho. ;D, but hey! TBH I just recently bumped into his thread yesterday and I don't really know that there is this kind of service. I really learned a lot and I added this thread to my watchlist. Hope that this thread continues to function even if pugman and bill gator run out of sMerits to give because as I went to the whole thread, it seems there are a few members with many sMerits that would like to chip in if ever you guys are running out of it.

Anyways, I gave back the merit I received in hope that it could also help others to be awarded. If I may ask, I understand that after being merited for answering the question, I should not participate in the next question but I can participate in the question after that right? Even so, can I still answer your next question even if I am not merited for it? I just want to know if what I learned/understand about it is correct or not, you can just quote my answer if it correct or wrong then.
Your answer was not entirely correct,but you did mention some valid points and most of it made a little sense. This is not a service but rather this is just a thread where you learn things about bitcoin. Thank you for your offer,but don't worry,I have a few merits and it should probably last for a while. If ever we need any assistance with smerits,I am sure other members would step up for it.

Thanks for giving me the merit but I'd rather ask you to give the merit to someone who deserves it more,I cannot rank up any further,so it'd only make sense.

You can answer how many ever questions you want,unless and you until you repeat the same points that others have mentioned. I'll surely correct you but sometimes I get a little busy and things get super clogged up but whenever I get the time,I'll surely let you know.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on April 14, 2018, 12:11:41 PM
what is the correct answer to this question?
Question: Give a short summary on bitcoind.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on April 14, 2018, 12:15:18 PM
what is the correct answer to this question?
Question: Give a short summary on bitcoind.
What r1s2g3 had copied from here (https://en.bitcoin.it/wiki/Bitcoind) is what I was looking for but not in exact same text. I was looking for someone to understand it,and then writing it,even if it is wrong,doesn't matter,you'll learn. Someone or the other if not me will correct you with the right info. So,in other words,I haven't found a right answer from this thread even though I merited a couple of them.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: theyoungmillionaire on April 14, 2018, 01:54:35 PM
Question: What is a distributed ledger?

Hi Pugman, may I know the correct answer for this? Cause I want to add in the topic Cryptocurrency Lingo/Slang (https://bitcointalk.org/index.php?topic=3250658)to help beginners. Thanks


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on April 14, 2018, 05:35:36 PM
Hi Pugman, may I know the correct answer for this? Cause I want to add in the topic Cryptocurrency Lingo/Slang (https://bitcointalk.org/index.php?topic=3250658)to help beginners. Thanks
I believe this one explains it properly :
A distributed ledger is a database in which the data is shared to all participants in the network. All those participants record, share an synchronize the whole data. There is no need for a central authority in a distributed ledger.  I read reports of early distributed ledgers in 80s and 90s, very interesting.

I think the most famous distributed ledger now is R3 Corda, and some banks are testing it for financial services. R3 Corda is based on blockchain. But it's designed for financial services. One interesting difference is that not all participants (nodes) have all data in R3 Corda.

Blockchain is somehow a distributed ledger. But the process of organizing the database throught blocks, and linking these blocks using hashes, the method of consensus based on Proof of Work, is totally different from a common distributed ledger.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on April 14, 2018, 05:49:28 PM
Really awesome thread, first post with all thoose good answers really did teach me something so thank you :)
Already good answers on it so wont try, but interesteing that something i had not heard of was first launched in 2009 and latest update is just 1 month old!
It looks like a complicated daemon to run.

Could i suggest the next question? "How does a bitcoin wallet work and what is the daemon role?" -Or something in that area :)
Thank you.
If you want to suggest a question, please go ahead. I am definitely not going to stop something that would encourage more learning.
I am really happy that people are learning something from this thread. There's another thread similar to this started by BTCforJoe, be sure to check it out.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on April 15, 2018, 12:36:04 AM
I found something interesting for this old question. This question really got my attention at the time it was first posted, but i didn't knew anything about it at the time.
I just read about it in the book Mastering Bitcoin (Antonopoulos). As have nobody to talk about it I will post here.

Okay. Here's my question:

Question 9.5: Pretend I own a large business that sells physical items, with all orders being sold online. Tell me about the benefits and drawbacks of accepting Bitcoin for my business. I reside in and pay taxes in Canada.

Now that I'm thinking about it, there are so many more drawbacks of running a large store that accepts Bitcoin... You've got my brain working in overtime now, and all these thoughts keep popping into my head lol. Automation, being one of them. You'd have to hire developers to make an automated payment and fulfillment system, such as the ones that are used by existing fiat payment processors. This comes with a high-cost, as you'd have to have a custom build, or use existing companies like BitPay or Blockonomics. Custom builds will cost thousands of dollars to develop, and you have to put a lot of trust in the dev not to backdoor your code. Using bitcoin payment processors, in turn, means that there are, in fact, fees for your bitcoin payment transactions.

All of this talk can't be for no good reason. DarkStar_, do you run an online retailer that accepts Bitcoin, or are you thinking of starting one? I'm quite interested lol

I was reading about deriving child keys, and then I found about Extended Public Keys (xpub).
This may be pretty basic stuff but I just learned about them now.

Extended Public Keys can be used to create child public keys (only public keys).
This kind of key can generate infinite child public keys and public addresses, but none private key.

In this case they are very useful.
You can install the extended public key on a web server, online, and leave your extended private key in a offline wallet.

If you are going hire developers, you could give them only the xpub, so there would be no way for them to steal your money.

Antonopoulos even talks about Mycelium Gear (I never used it), a program which could generate an unique address for every purchase on the online store.

I think the whole process of accepting bitcoin in a big store may not be so complicated after all.

One additional step for security: Extended public keys can be used to generate private keys if a SINGLE private key is leaked.
There is way to avoid this. There is also something called Hardened derivation. If xpub are generated from a hardened parent, the leak of a private key is not a risk anymore.

I am still learning, just read about it. Tell me if something is wrong.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BTCforJoe on April 15, 2018, 08:47:48 AM
These guys distributed Ledger...

https://i.imgur.com/xdF7q9M.jpg

Just in case anyone takes your answer serious:

Blockbuster Video did NOT operate a distributed ledger.
They kept a private ledger for the movies that its customers had checked out at any given time. Blockbuster was a centralized organization that operated a centralized ledger.

While I know you were making an attempt at humor with your post, I just don't want anyone to take it serious as a "fun" or "whimsical" answer to explain what a distributed ledger is.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: cryptothief on April 16, 2018, 04:20:34 AM
While I know you were making an attempt at humor

I get the reasoning behind the post, but that hurt...'an attempt'...


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: GeckoTrader on April 17, 2018, 07:01:43 AM
Thank God after a long search, I found this thread full of intangible information. Thank you @pugman for having the initiative of doing this thread.  I am a newbie when it comes to bitcoin information, I only trade what I can see a good trade in the chart and never  gave importance about learning what is bitcoin really is. With all due respect, may I kindly ask your approval if I can join this question and answer here because as I can see only member and higher position are allowed to answer.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on April 17, 2018, 08:59:11 AM
Thank God after a long search, I found this thread full of intangible information. Thank you @pugman for having the initiative of doing this thread.  I am a newbie when it comes to bitcoin information, I only trade what I can see a good trade in the chart and never  gave importance about learning what is bitcoin really is. With all due respect, may I kindly ask your approval if I can join this question and answer here because as I can see only member and higher position are allowed to answer.
You can add this Topic to your Watchlist and easily access from the shortcut on top of the page
To add to watchlist click  "Watch" on top or bottom of the topic

You can refer this image for help https://i.imgur.com/vFtLEbE.jpg


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: dauwaz on April 18, 2018, 10:01:06 AM
When reading this article I realized a lot about the formation of Bitcoin. Posts are good for newbies like me, thanks all


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on April 24, 2018, 06:38:37 PM
Hi Pugman
I am eagerly waiting for the next question.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on April 24, 2018, 07:35:33 PM
Since the lightning network is becoming more popular now,a lot of people are really confused on what actually it is.  So here's a question about it:

Question: What is lightning network? What's its role and what does it do?

I am looking for a simple answer or basically in layman's terms,so that people can actually understand.

I am eagerly waiting for the next question.
Oh crap,I almost forgot..
Don't post just because you have to earn a merit. I am seeing a lot of one/two liners just being rephrased from third party websites. Please understand what you're writing. Or just don't do anything rather.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: max2607 on April 24, 2018, 09:10:45 PM
Since the lightning network is becoming more popular now,a lot of people are really confused on what actually it is.  So here's a question about it:

Question: What is lightning network? What's its role and what does it do?

I am looking for a simple answer or basically in layman's terms,so that people can actually understand.

I am eagerly waiting for the next question.
Oh crap,I almost forgot..
Don't post just because you have to earn a merit. I am seeing a lot of one/two liners just being rephrased from third party websites. Please understand what you're writing. Or just don't do anything rather.
Not gonna copy some crap from google but my ans is purely from my point of view

Lightining network from what i have heard was a solution to the slow transaction speed and high fees , though even the speed has increased and fees has gone significantly low you can't really call bitcoin a llightning network. The lightining original was found in ltc roadmap it was going to be implemented but don't know why the delay

Lightining network allows us to transfer coins with faster confirmation like we saw in ripple , xlm and many other coins
It's role is just enhancing user experience while they are transferring funds
Like i said above facts are just told from what i know even if it's wrong i would be happy to learn more about it

Edit: Just saw what darkstar posted on your campaign thread : https://www.reddit.com/r/Bitcoin/comments/7pwna9/lightning_network_megathread/ all those who don't want to learn but just behind merits refer this


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on April 24, 2018, 09:32:02 PM
Not gonna copy some crap from google but my ans is purely from my point of view

Lightining network from what i have heard was a solution to the slow transaction speed and high fees , though even the speed has increased and fees has gone significantly low you can't really call bitcoin a lightning network. The lightining original was found in ltc roadmap it was going to be implemented but don't know why the delay

Lightining network allows us to transfer coins with faster confirmation like we saw in ripple , xlm and many other coins
It's role is just enhancing user experience while they are transferring funds
Like i said above facts are just told from what i know even if it's wrong i would be happy to learn more about it

Edit: Just saw what darkstar posted on your campaign thread : https://www.reddit.com/r/Bitcoin/comments/7pwna9/lightning_network_megathread/ all those who don't want to learn but just behind merits refer this
It was not everything I was looking for,but there was some useful information about it and you put some thought into it. So,I'll give you a merit,even though you may not be a native English speaker.
I am still looking for good answers.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: cryptothief on April 24, 2018, 10:15:18 PM
Question: What is lightning network? What's its role and what does it do?

Answer: It is touted as being one of the main potential solutions to a common problem in cryptocurrency - scalability. Simply put, it is an additional layer on top of the original blockchain, using whichever native currency it is built on - it does not have it's own currency. It simplifies and speeds up the payment process by creating a multisig wallet - in layman's terms, it could be described as the crypto equivalent of an 'escrow wallet' - on the blockchain. Any subsequent transactions are then conducted (there's your lightning link!) directly between the relevant parties, and only once they decide to close it out is the final balance posted on the blockchain. The process is almost instant as the information is only required to be posted on the blockchain at the beginning and end of the process, all other transactions are done directly between the parties involved. This also nullifies the need for miners to confirm the transactions, meaning that fees are much lower than the current methods - as little as one Satoshi per byte. It should therefore prove to be especially useful for micropayments because of the substantially lower costs for transactions. All this being said, it is still a work in progress - albeit progressing at 'lightning pace' - with doubts in some corners as to whether it will really be the game changer 'experts' think it will be.



Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: crypto1010 on April 24, 2018, 11:42:44 PM
What is lightning network? the LN is an off chain protocol intended to fix bitcoin scalability  problems without the need to alter the bitcoin protocol .

What's its role? The role of lightning network (LN) in relation to BTC is to reduce transaction confirmation times as TXs will be instant thereby reducing transaction fees. The LN will allow crypto users to make micro payments as fees a much cheaper and the LN will also allow for coin compatiblility(Cross Blockchains)


what does it do?
It enables instant transactions thereby reducing number of unconfirmed transactions and increasing the number of transactions that can be processed in a second thereby competeing with the likes of VISA that can process over 2,000 transactions per second on average as compaired to bitcoin which processes less than 7 transactions per second.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vit05 on April 25, 2018, 04:10:09 AM
What is lightning network?

Think of the phone in the old days. To call and talk to someone you had to open a call with a carrier and she would connect you to the other end. This had a high cost because it was something unexpected that involved various actions and people.

Today, its cost is close to zero when using some messager to connect with another person. This is because you are already connected to the network, just like the other person. You are already connected even if you are not exchanging any information directly. When you need to change some information, this cost is much lower than when calling someone.

In the LN the same occurs. You open a channel and connect to someone using this second layer. Unlike using blockchain directly, your costs will be lower, since you are using this second layer.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on April 25, 2018, 04:44:03 AM
Since the lightning network is becoming more popular now,a lot of people are really confused on what actually it is.  So here's a question about it:

Question: What is lightning network? What's its role and what does it do?
What is lightning network?
This is an idea for a instant peer to peer off-chain transactions, without touching the information stored on the blockchain

What's its role?
To minimize the number of transactions per block, (logically increases the overall network speed)

what does it do
It minimizes the fee and eliminates the long confirmation time of blockchian. Thus making transactions almost instant. For security it uses blockchain smart-contracts.

LN is less secure of course because the beauty of blockchian is missing however it can be used for micro or low risk payments.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: joms123 on April 25, 2018, 02:37:49 PM
Since the lightning network is becoming more popular now,a lot of people are really confused on what actually it is.  So here's a question about it:

Question: What is lightning network? What's its role and what does it do?

I am looking for a simple answer or basically in layman's terms,so that people can actually understand.

I am eagerly waiting for the next question.
Oh crap,I almost forgot..
Don't post just because you have to earn a merit. I am seeing a lot of one/two liners just being rephrased from third party websites. Please understand what you're writing. Or just don't do anything rather.

Lightning Network

This terms explains everything in a clever way, so Iíll simply reiterate for the laziest who donít feel like clicking a link:

You and I sign a contract.

As long as we both respect it, no one else needs to know we have this contract. But if I try to screw you, you want to be sure thereís someone who can force me to desist.

Thatís Lightning Network: the contract is a smart contract, the enforcer is the blockchain. As long as no one breaks the law, millions of smart contracts can be stipulated simultaneously off chain, thus reducing greatly the amount of congestion on chain, but as soon as thereís a contentious, the smart contract can be broadcasted on the network (classic BTC transaction) and the power of blockchain will fix the issue. As simple as that. Itís just the translation of common practices into crypto-space.


Title: [joms123] Copy & paste without citing a source
Post by: theyoungmillionaire on April 25, 2018, 03:21:03 PM
Since the lightning network is becoming more popular now,a lot of people are really confused on what actually it is.  So here's a question about it:

Question: What is lightning network? What's its role and what does it do?

I am looking for a simple answer or basically in layman's terms,so that people can actually understand.

I am eagerly waiting for the next question.
Oh crap,I almost forgot..
Don't post just because you have to earn a merit. I am seeing a lot of one/two liners just being rephrased from third party websites. Please understand what you're writing. Or just don't do anything rather.

Lightning Network

This terms explains everything in a clever way, so Iíll simply reiterate for the laziest who donít feel like clicking a link:

You and I sign a contract.

As long as we both respect it, no one else needs to know we have this contract. But if I try to screw you, you want to be sure thereís someone who can force me to desist.

Thatís Lightning Network: the contract is a smart contract, the enforcer is the blockchain. As long as no one breaks the law, millions of smart contracts can be stipulated simultaneously off chain, thus reducing greatly the amount of congestion on chain, but as soon as thereís a contentious, the smart contract can be broadcasted on the network (classic BTC transaction) and the power of blockchain will fix the issue. As simple as that. Itís just the translation of common practices into crypto-space.

Your answer is just a copy paste from this website: https://www.quora.com/What-is-Lightening-Network-and-what-does-it-do-Which-cryptocurrency-stands-to-gain-the-most-from-this-technology . You should at least cited their website as your source.


11.Plagiarizing or copy pasting content from various sources is NOT allowed. Rephrasing such content is also not allowed.



Title: Re: [joms123] Copy & paste without citing a source
Post by: pugman on April 25, 2018, 03:30:49 PM
Since the lightning network is becoming more popular now,a lot of people are really confused on what actually it is.  So here's a question about it:

Question: What is lightning network? What's its role and what does it do?

I am looking for a simple answer or basically in layman's terms,so that people can actually understand.

I am eagerly waiting for the next question.
Oh crap,I almost forgot..
Don't post just because you have to earn a merit. I am seeing a lot of one/two liners just being rephrased from third party websites. Please understand what you're writing. Or just don't do anything rather.

Lightning Network

This terms explains everything in a clever way, so I’ll simply reiterate for the laziest who don’t feel like clicking a link:

You and I sign a contract.

As long as we both respect it, no one else needs to know we have this contract. But if I try to screw you, you want to be sure there’s someone who can force me to desist.

That’s Lightning Network: the contract is a smart contract, the enforcer is the blockchain. As long as no one breaks the law, millions of smart contracts can be stipulated simultaneously off chain, thus reducing greatly the amount of congestion on chain, but as soon as there’s a contentious, the smart contract can be broadcasted on the network (classic BTC transaction) and the power of blockchain will fix the issue. As simple as that. It’s just the translation of common practices into crypto-space.

Your answer is just a copy paste from this website: https://www.quora.com/What-is-Lightening-Network-and-what-does-it-do-Which-cryptocurrency-stands-to-gain-the-most-from-this-technology . You should at least cited their website as your source.
You have got to be kidding me.. I gave you(joms123) the benefit of the doubt,and it kinda screwed me over. I can't take back the merit I gave to joms123 but you're getting banned.
Thanks theyoungmillionaire  for bringing me this to attention.


Title: Re: [joms123] Copy & paste without citing a source
Post by: cabalism13 on April 26, 2018, 05:40:25 AM
You have got to be kidding me.. I gave you(joms123) the benefit of the doubt,and it kinda screwed me over. I can't take back the merit I gave to joms123 but you're getting banned.
Thanks theyoungmillionaire  for bringing me this to attention.

BURNED. You've been tricked of some precious word of somebody. That guy is actually a shitposter as you can review his account and old posts.  ;D ;D ;D


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on April 26, 2018, 06:52:15 AM
Your answer is just a copy paste from this website: https://www.quora.com/What-is-Lightening-Network-and-what-does-it-do-Which-cryptocurrency-stands-to-gain-the-most-from-this-technology . You should at least cited their website as your source.
he did not even rephrase...
Good catch mate.... but just little late pugman already awarded him :)

Yeah this definition is pretty straight forward and most laziest one like he said.

But pugman was looking for this answer? Really? :(
To me question was having three parts "What is lightning network? What's its role and what does it do?" i thought it should be answered to the point and separately

Anyway next time will go for the lazy answer :p

That guy is actually a shitposter as you can review his account and old posts.  ;D ;D ;D
Too much copy paste, and without source but he is wining merits another post (https://bitcointalk.org/index.php?topic=3332970.msg35209623#msg35209623) copied from quora (https://www.quora.com/What-could-cause-the-crash-of-Cryptocurrency)


pugman next question please?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: cryptothief on April 26, 2018, 07:00:31 AM
but as soon as thereís a contentious, the smart contract can be broadcasted on the network (classic BTC transaction)

I may be misreading it, but surely this part of the contentiously quoted answer should be consensus for the answer to make sense anyway?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: theyoungmillionaire on April 26, 2018, 07:18:14 AM
Your answer is just a copy paste from this website: https://www.quora.com/What-is-Lightening-Network-and-what-does-it-do-Which-cryptocurrency-stands-to-gain-the-most-from-this-technology . You should at least cited their website as your source.
he did not even rephrase...
Good catch mate.... but just little late pugman already awarded him :)

Yeah this definition is pretty straight forward and most laziest one like he said.

But pugman was looking for this answer? Really? :(
To me question was having three parts "What is lightning network? What's its role and what does it do?" i thought it should be answered to the point and separately

Anyway next time will go for the lazy answer :p

That guy is actually a shitposter as you can review his account and old posts.  ;D ;D ;D
Too much copy paste, and without source but he is wining merits another post (https://bitcointalk.org/index.php?topic=3332970.msg35209623#msg35209623) copied from quora (https://www.quora.com/What-could-cause-the-crash-of-Cryptocurrency)


pugman next question please?

He joined my topic Get Merit Service (https://bitcointalk.org/index.php?topic=3345897), which is why I got the chance to check his profile and his post. Upon reviewing, I have notice some words that I have already read from another article, so I did my research to check if I am correct. Yes, correct, all from www.quora.com. See summary (https://bitcointalk.org/index.php?topic=3345897.msg35564087#msg35564087).


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: cryptothief on April 26, 2018, 07:28:46 AM
He/she is a serial copy paster, didn't even have to go too deep in to the posts to come to that inevitable conclusion. I reported a couple of the ones they got merit for to hopefully avoid anyone else giving merit to them undeservedly.


Title: Re: [joms123] Copy & paste without citing a source
Post by: pugman on April 26, 2018, 11:58:03 AM
BURNED. You've been tricked of some precious word of somebody. That guy is actually a shitposter as you can review his account and old posts.  ;D ;D ;D
Hmmm...Yeah. My bad that I didn't do any background check,can't help it,I am a lazy ass. But don't worry,I'll keep an eye,especially in my thread.

But hey,in my defense,it looked like he was actually explaining it by himself but apparently not. Still,I apologize for that laziness of mine.

What's done is done,he's banned now:
Code:
Autoban user: N/A in topic #0 by member #1841711

he did not even rephrase...
Good catch mate.... but just little late pugman already awarded him :)

Yeah this definition is pretty straight forward and most laziest one like he said.

But pugman was looking for this answer? Really? :(
To me question was having three parts "What is lightning network? What's its role and what does it do?" i thought it should be answered to the point and separately

Anyway next time will go for the lazy answer :p
Doesn't matter now that I merited him,I still have a few left,and I'll probably be a little more stricter in handing out merits from now on.. I wasn't looking for that answer but I liked the way he had explained it only to find out that it was a copy/paste. :-\

pugman next question please?
Sure,let me first go through the answers,and get one for y'all.
He/she is a serial copy paster, didn't even have to go too deep in to the posts to come to that inevitable conclusion. I reported a couple of the ones they got merit for to hopefully avoid anyone else giving merit to them undeservedly.
Do not worry anymore,he's perma-banned.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bill gator on April 26, 2018, 08:00:42 PM
Your answer is just a copy paste ... You should at least cited their website as your source.

I've given you a little bit of merit for your findings, because I have been too busy to help pugman out with this thread very much. I hope to be back to business as usual very soon, but I've been working on putting together a mining operation and it has been very time consuming. Regardless, good catch on the plagiarism; it's unfortunate that we didn't catch it prior to awarding it merit.

Don't beat yourself up over it pugman, it's only a single merit and it is insignificant in the grand scheme of things. Let's try to be more diligent moving forward, with maybe a quick google search on different portions of their answer, or something like that. There are free plagiarism checkers all around the internet that would make this a very easy part of the job.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: theyoungmillionaire on April 27, 2018, 05:20:33 AM
Your answer is just a copy paste ... You should at least cited their website as your source.

I've given you a little bit of merit for your findings, because I have been too busy to help pugman out with this thread very much. I hope to be back to business as usual very soon, but I've been working on putting together a mining operation and it has been very time consuming. Regardless, good catch on the plagiarism; it's unfortunate that we didn't catch it prior to awarding it merit.

Don't beat yourself up over it pugman, it's only a single merit and it is insignificant in the grand scheme of things. Let's try to be more diligent moving forward, with maybe a quick google search on different portions of their answer, or something like that. There are free plagiarism checkers all around the internet that would make this a very easy part of the job.

Glad to help, bill gator. I will assist pugman while you are busy; this thread inspired me to start a topic about merit service in Philippine section, it is assign of my gratitude(helping here). Looking forward to hear positive feedback about your mining operation project, bill gator. Congrats in advance.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on April 29, 2018, 01:34:53 AM
Since the lightning network is becoming more popular now,a lot of people are really confused on what actually it is.  So here's a question about it:

Question: What is lightning network? What's its role and what does it do?


It is tough to give very brief summary on lightinig Network but I will try to be very brief and put as much information in less words.

Why we need Lighting network?
The current bitcoin network will not be able to handle if we have to do transactions on large scale as current network will able to handle only 7 (tps) transactions per seconds (which is nowhere when compared to 56000 tps capablity of VISA and handling 4000 tps during peaktime.) So Lightinig Network is a proposed solution that will able to help in doing billion of transactions per day without affecting the blockchain.

How Lightining Network will work?
When two parties are interacting with each other on regular basis then they can commit to signing the transaction  without broadcasting to global bitcoin blockchain. This will remove dependency from blockchain. They can create fund into a 2 of-2 multisignature address (where it requires consent from both parties to create spend).

Micro payment channel created above will create relationship between two parties only. To make bitcoin scalable we will need  a large network of channels on the Bitcoin blockchain. That network will be lighting network.

Lightinig Network will use Hashed TimeLock Contract for security of transactions.

Benefit of lightining network
Rapid payments: payments within an established channel can be made almost as fast as data can travel over the Internet between the two peers.
No third-party trust: the two peers in a channel pay each other directly using regular Bitcoin transactions (of which only one is broadcast) so at no point does any third party control their funds.
Reduced blockchain load
Channels can stay open indefinitely
Rapid cooperative closes
Outsourcable enforcement
Onion-style routing
Multisignature capable
Securely cross blockchains
Sub-satoshi payments
Single-funded channels

Current vulnerability in Lighting network.
Improper Timelocks: Participants must choose timelocks with sufficient amounts of time. If insufficient time is given, it is possible that timelocked transactions believed to be invalid will become valid, enabling coin theft by the counterparty.
Forced Expiration Spam:If a malicious participant creates many  channels and forces them all to expire at once, these may overwhelm block  data capacity, forcing expiration and broadcast to the blockchain. The resultwould be mass spam on the bitcoin network.
Coin Theft via Cracking: As parties must be online and using private keys to sign, there is a possibility  that, if the computer where the private keys are stored is compromised, coins will be stolen by the attacker.
Data Loss : When one party loses data, it is possible for the counterparty to steal funds.
Forgetting to Broadcast the Transaction in Time

All these vulnerablity can be mitigated and Lighting Network will give Bitcoin Network to do billion transactions in a day using the desktop/Home pcs.

In short, Lightning Network will be bidirectional micro payment channel that will help to solve the problem of scalablity in bitcoin Network.

References:
https://www.weusecoins.com/assets/pdf/library/Lightning%20Network%20Whitepaper.pdf
https://en.bitcoin.it/wiki/Lightning_Network
https://en.bitcoin.it/wiki/Hashed_Timelock_Contracts
https://en.bitcoin.it/wiki/Payment_channels


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on April 30, 2018, 03:46:55 PM
Question: What exactly is BIP 75?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Heisenberg_Hunter on April 30, 2018, 05:54:43 PM
Question: What exactly is BIP 75?
BIP0075 is basically an upgrade of the BIP0070 suggested by Gavin and Mike. Before explaining BIP 75, we need to understand what is a Payment Protocol?

A payment protocol is basically a communication method between a sender and receiver of coins. The communication method is a human understandable payment destinations where the receiver will authorize the payment. This proposal most probably prevents the man in the middle attack and the sender receives a "Payment received" message to conform the transaction. Additionally refund addresses are also generated.

These protocol options has a disadvantage that it cannot be used for peer to peer payments. But BIP0075 solves this by encrypting the communication end to end. This protocol also allows the sender to validate the identity of the receiver and a user friendly transaction is thus created.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on April 30, 2018, 08:21:53 PM
Question: What exactly is BIP 75?
BIP stands for Bitcoin Improvement Proposal and BIP-XX are the payment protocols. BIP 75 proposed some major enhancements to the Bitcoin Payments Protocol.
 
- Support for 2-way identity exchange (the bitcoin payment information can be exchanged between both parties of the transaction, at the same time information is secured by strong end-to-end encryption)
- With BIP 75 users can generate a payment request like an invoice with verified identity and receiver can directly make the payment minimizing the chances of sending payment to a wrong address.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Heidim on May 01, 2018, 08:10:40 AM
Question: What exactly is BIP 75?

The way I understand it is that BIP 75 allows both parties in the transaction option to know the identity of the person they are making the transaction with. But the information is still secure so no 3rd party will have access to the information. If I understand correctly this is used when for example I buy something from a merchant that accepts Bitcoin, they can also record shipping addresses etc and I the buyer knows who I am doing business with.

Hopefully I understand this correctly  ;D If not, feel free to help me understand. Please also pardon me if the English is not 100%


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 03, 2018, 10:24:35 PM
I am really sorry guys that I am not in the situation to reply to every single one of your posts,but please give me some time,I'll come around really soon and correct. It may be even tomorrow,I just need some time. Please ,I am sorry again.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 03, 2018, 11:53:07 PM
Question :How are blocks created?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on May 04, 2018, 10:38:57 AM
Question :How are blocks created?

A new block is created when a miner finds an acceptable nonce, that solves the proof of work puzzle.

When he finds the nonce he broadcast it and the new block to all nodes.
All miners then starting looking for a nonce at this new block, as this is now the longest chain.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on May 04, 2018, 11:25:40 AM
Question :How are blocks created?

Here is the Receipt to cook (create) a bitcoin block:

Ingredients:
1- Coinbase transaction (Generation transaction)
2- Set of valid transaction (not spent, signatures verified, amounts verified)
3- Hash of previous block
4- Unixtime stmaps or Epoch

Now you have all the ingredients, try to remember and confirm this

1. You have a market root
2. You know the networks current difficulty (4 bytes)
3. Nonce, incremented when mining (4 bytes)

Lets start cooking:

- Start with nonce 0
- Hash or compute the hash with all the ingredients (the block header) using sha-256
- Check the hash, check if the hash is under a "certain range1" (or target if in a pool) - Yes? You found the Block
- No, increments the nonce and hash again

You never found the Block, nonce reached maximum?
- Don't worry change your ingredients for exmaple change the Timestamp or extra nonce field
- and try again

1. Certain range: The hash has to start with a pre-established number of zeroes (as of today 18 zeros (https://blockchain.info/block/00000000000000000030bf56657d096bdefaa87ab379547ddf5a3c14321734f5))

Hint: When selecting transaction select the transaction with fee to have extra BTC + block reward



Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 04, 2018, 10:10:39 PM
I found both of the above posts knowledgeable,and very helpful. Thanks guys. Atleast I get to learn something.  :D


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on May 08, 2018, 05:36:54 AM
Question :How are blocks created?


1. You have a market root
2. You know the networks current difficulty (4 bytes)
3. Nonce, incremented when mining (4 bytes)


I guess, you want to say Merkle root.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on May 08, 2018, 06:49:12 AM
I guess, you want to say Merkle root.
You're right, sorry for the typo.


@pugman
Question: What exactly is BIP 75?
What was the correct answer to the second last question?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 10, 2018, 11:48:32 PM
Question :  What is blockchain Endianness?
I came across this from a different website, I am looking for answers so that even I can learn.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Hazaki on May 11, 2018, 12:37:24 AM
Question :  What is blockchain Endianness?
I came across this from a different website, I am looking for answers so that even I can learn.

Endianess is how bytes are organized in a multi byte value , it presents the new order of bytes when every part that forms the value is put into a digital word . Bitcoin uses the little Endian to serialize almost all the data with it, and that has been always considered as an error by the community but is IMO an optimization(*) .
And since i mentionned the little Endian , people should know that there's two types , Little and Big Endian (used to serialize network adresses ) .
For a brief explanation let's take for example this hexadecimal "96385214" , if we are using the little Endian it'll be stored in the computer's memory as following : "14 52 38 96" -> we take the byte at the end (called little end) which is 14 and place it in the beginning , and keep proceeding from right to left  .
As for : Why is little Endian  used in blockchain , well it's because the dev team chose to :D , (*) -> and also because the majority of new generation computers use little Endian so that's why i consider it as an optimization .


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on May 11, 2018, 09:22:32 PM
Question :  What is blockchain Endianness?
That's like going back to uni class CS101, anyway

Endianness is ordering the bytes (or bits) in the memory, there two notations, big-endian (most significant bit) or or little-endian the (least significant bit).
So in simple words little-endian means saving the bits in reverse order.

Bitcoin use litte-endian notation.

Bitcoin is using SHA-256 algorithm for Block hashing -> it produces hash in little-endian (leading x number zeros)

For example ,this is the latest block Block #522238 (https://blockchain.info/block/0000000000000000001ea8f72b5af531257e061085973ff12cde30e882d57ce4), below is hash and it is shown in big-endian notation:
Code:
Hash 0000000000000000001ea8f72b5af531257e061085973ff12cde30e882d57ce4

and in little-endian notation (Swap the bytes):
Code:
Hash e47cd528e830cd12ff3f978510067e2531f55a2bf7a81e000000000000000000
Please ignore any typo as I typed in reverse manually

Now why litte-endian for blockchain its arguable, there are computational advantages in using little-endian but on the bigger picture there is no difference.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 11, 2018, 09:43:27 PM
That's like going back to uni class CS101, anyway

Endianness is ordering the bytes (or bits) in the memory, there two notations, big-endian (most significant bit) or or little-endian the (least significant bit).
So in simple words little-endian means saving the bits in reverse order.

Bitcoin use litte-endian notation.

Bitcoin is using SHA-256 algorithm for Block hashing -> it produces hash in little-endian (leading x number zeros)

For example ,this is the latest block Block #522238 (https://blockchain.info/block/0000000000000000001ea8f72b5af531257e061085973ff12cde30e882d57ce4), below is hash and it is shown in big-endian notation:
Code:
Hash 0000000000000000001ea8f72b5af531257e061085973ff12cde30e882d57ce4

and in little-endian notation (Swap the bytes):
Code:
Hash e47cd528e830cd12ff3f978510067e2531f55a2bf7a81e000000000000000000
Please ignore any typo as I typed in reverse manually

Now why litte-endian for blockchain its arguable, there are computational advantages in using little-endian but on the bigger picture there is no difference.
I understood a little,but what is its purpose,especially in blockchain? I don't know a lot/anything about it.

As for : Why is little Endian  used in blockchain , well it's because the dev team chose to :D , (*) -> and also because the majority of new generation computers use little Endian so that's why i consider it as an optimization .
Why do they use Endian? I am worse than a noob at this,so do pardon me.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on May 11, 2018, 10:19:49 PM
I understood a little,but what is its purpose,especially in blockchain? I don't know a lot/anything about it.
Well actually there is nothing specific related to blockchian it came into discussion because of bitcoin's block hashing algorithm SHA-256, however conventional microprocessors used little-endian notation like Intel-836 and other followed. Big-endian is become most common in internet-protocols IPv4 and IPv6 that's why it's also called network byte order.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 14, 2018, 12:51:40 PM
Are there competitions for Arabs?
This is not a competition,atleast not exactly. Anyone can answer questions here. And you did not even read the OP.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: azguard2 on May 15, 2018, 11:29:13 AM
Question :  What is blockchain Endianness?


When a new transaction is signed, it is broadcasted on the Bitcoin network. It will then be collected and recorded in a block. Each block, once constituted, will in turn be broadcasted.
All these messages are public and verifiable.
They make it possible to notify and therefore take to witness all the participants of the Bitcoin network on any new information that enriches the blockchain.
Messages are transferred over the network in a binary format, encoding numbers on 32 bits or 256 bits using the Little-Endian convention.
The Little-Endian convention sets the bytes from the lowest weight to the strongest weight, the Big-Endian convention sets the bytes from the strongest weight to the lowest weight.


For example the number 1 is represented in hexadecimal on 32 bits by 00000001 with the Big-Endian convention and 01000000 with the Little-Endian convention.

The number 1 on 32 bits with the Big-Endian convention:
 Byte 3 |  Byte 2 |  Byte 1 |  Byte 0
--------+---------+---------+--------
     00 |     00  |     00  |      01

The number 1 on 32 bits with the Little-Endian convention:
 Byte 0 |  Byte 1 |  Byte 2 |  Byte 3
--------+---------+---------+--------
     01 |      00 |      00 |      00


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: marktanlao on May 15, 2018, 12:50:04 PM
Question :  What is blockchain Endianness?
I came across this from a different website, I am looking for answers so that even I can learn.
i found some info about it

Understanding, Extracting, and Analyzing Blockchain Evidence Nick Furneaux ... of hexadecimal, you need understand a computing concept called Endianness.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Nanoverso on May 16, 2018, 07:50:48 PM
Quote
Why do they use Endian? I am worse than a noob at this,so do pardon me.
Well, they had to choose the use of one of the endian representation schemes because numerical data needs to be stored and manipulated in its binary form in the blockchain one way or another.

This comes from the fact that digital cryptography used in chain usually operates on the data in the bit level (binary form), so programmers needs to be aware of what kind of representation/storage scheme is being used so they can write algorithms that correctly manipulate the data.

Hope it helped!


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 16, 2018, 11:29:13 PM
Well, they had to choose the use of one of the endian representation schemes because numerical data needs to be stored and manipulated in its binary form in the blockchain one way or another.

This comes from the fact that digital cryptography used in chain usually operates on the data in the bit level (binary form), so programmers needs to be aware of what kind of representation/storage scheme is being used so they can write algorithms that correctly manipulate the data.

Hope it helped!
Understood something, more than what I expected. Thank you.
i found some info about it

Understanding, Extracting, and Analyzing Blockchain Evidence Nick Furneaux ... of hexadecimal, you need understand a computing concept called Endianness.
Its not clear enough and it's very vague. But I do know that I need to understand and even learn what Endianness means.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 17, 2018, 01:42:22 PM
Question :  What is the difference between a regular transaction and a coinbase transaction? Do explain the both type of transactions with or without any examples.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: PHPSELLER on May 17, 2018, 02:14:50 PM
Question :  What is the difference between a regular transaction and a coinbase transaction? Do explain the both type of transactions with or without any examples.
I think the difference between a regular transaction and a coinbase transaction is on the Input. A coinbase transaction is a type of transaction that created by miners, It has not no inputs, In other hand, a regular transaction has a transaction input, output, and an amount of money.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on May 17, 2018, 02:18:20 PM
Question :  What is the difference between a regular transaction and a coinbase transaction? Do explain the both type of transactions with or without any examples.

A coinbase transaction is a special transaction that transfer new generated coins to a miner's wallet. It's the first transaction of a block.

Whoever solves the PoW puzzle faster creates a new block and receives it reward. This reward is a newly generated bitcoin, called coinbase.
Example:
https://blockchain.info/tx/451329336cfaa7896fb4aba504bb3acd9964fc27b3fe6bbbf05615d19df313a1


A regular transaction is any other transaction, which does not involve newly generated coins.
Example:
https://blockchain.info/tx/e038d1191d09eed13ef8e4d87f95b0e3499c63aaf7bc14001e099a4e5bf50172


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: just_Alice on May 17, 2018, 02:21:27 PM
Question :  What is the difference between a regular transaction and a coinbase transaction? Do explain the both type of transactions with or without any examples.
A regular transaction has inputs (where the coins came from) and outputs (where the coins are going). A coinbase transaction has no inputs, because it is newly generated coins and has one or more outputs (where the miner wants the reward to go).


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 17, 2018, 11:24:56 PM
A coinbase transaction is a special transaction that transfer new generated coins to a miner's wallet. It's the first transaction of a block.

Whoever solves the PoW puzzle faster creates a new block and receives it reward. This reward is a newly generated bitcoin, called coinbase.
Example:
https://blockchain.info/tx/451329336cfaa7896fb4aba504bb3acd9964fc27b3fe6bbbf05615d19df313a1


A regular transaction is any other transaction, which does not involve newly generated coins.
Example:
https://blockchain.info/tx/e038d1191d09eed13ef8e4d87f95b0e3499c63aaf7bc14001e099a4e5bf50172
You just got your 200th merit and good explanation.


Question :  What is a cryptography nonce?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Zwei on May 18, 2018, 12:06:59 AM
Question :  What is a cryptography nonce?

a random number that can only be used ones, and its used most of the time in protocols to make sure that old generated communications cannot be used again.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Nanoverso on May 18, 2018, 01:00:21 AM
Question :  What is the difference between a regular transaction and a coinbase transaction? Do explain the both type of transactions with or without any examples.
I think something that deserves to be mentioned is the difference between these two types of transactions from the financial point of view: when you realize a cryptocurrency transaction between two users of the coinbase platform you don't have to pay the blockchain/miner fees of regular wallet/wallet or coinbase/wallet transactions. This definitely makes a difference for those who make regular or large amount transfers.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Hazaki on May 18, 2018, 06:00:10 AM



Question :  What is a cryptography nonce?
Cryptography nonce is an arbitrary/random/unplanned number that can't be used more than once (it's literally the same meaning as the nonce word in English ) .
This nonce is usually random (we can't figure it out through a pattern of steps/events ) or pseudo-random (seems random but is not , costs less to generate than a fully random number ) .
This nonce number is used in cryptography to ensure that old communications can't be reused and thus eliminating the risks of accessing to valuable informations through old communications . A nonce number also may include time (even better for security ) .


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on May 18, 2018, 09:33:59 AM
Question :  What is a cryptography nonce?
Cryptography nonce is a random number. Nonce is used in Cryptography/hashing to produce unique output that will only be used once, for example to authenticate user or to produce certain hash in case of hashing.

In case of cryptography it helps reduce chances of MITM (Man in the Middle)/Reply attacks. Let say Client A is talking to the Server and they are using hashing to verify any vulnerabilities of the messages and each message is hashed with nonce. Now if another Client B starts listing or sniffing the communication between Client A and Server, it will be able to get the hash (nonce+message). Now if client B try to reply same hash to the Server it will fail, because user B will not be able to produce same hash. That Hash (nonce+message) was for that one specific connection only. Remember Server is keeping track of nonce of the client.

Nonce in Bitcoin mining is used to generate a unique block hash. We know there are specific inputs to create hash, one of it is nonce. To produced required hash, nonce is added repeatedly until required hash pattern is produced. That specific nonce which produces required pattern (leading number of zeros) is called golden nonce.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on May 18, 2018, 03:40:26 PM
You just got your 200th merit and good explanation.

Thank you.  :D
You gave me my first one also , when I didn't even knew what that was .
https://bitcointalk.org/index.php?topic=2885058.msg29953079#msg29953079


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: mangodebango on May 19, 2018, 02:06:39 AM

Question :  What is a cryptography nonce?


In security engineering, nonce is an abbreviation of "number used once". It is often a random or pseudo-random number issued in an authentication protocol to ensure that old communications cannot be reused in replay attacks. For instance, nonces are used in HTTP digest access authentication to calculate an MD5 digest of the password. The nonces are different each time that the 401 authentication challenge response code is presented, and each client request has a unique sequence number, thus making replay attacks and dictionary attacks virtually impossible.

 8)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shasan on May 20, 2018, 01:24:38 AM

Question :  What is a cryptography nonce?
Nonce is a term which is used for number used once. For cryptography nonce it might be randomly generated number which might block. As on bitcoin same block cant be generated multiple time. Thanks.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: brardona on May 21, 2018, 08:23:13 AM
A coinbase transaction is a special transaction that transfer new generated coins to a miner's wallet. It's the first transaction of a block.

Whoever solves the PoW puzzle faster creates a new block and receives it reward. This reward is a newly generated bitcoin, called coinbase.
Example:
https://blockchain.info/tx/451329336cfaa7896fb4aba504bb3acd9964fc27b3fe6bbbf05615d19df313a1


A regular transaction is any other transaction, which does not involve newly generated coins.
Example:
https://blockchain.info/tx/e038d1191d09eed13ef8e4d87f95b0e3499c63aaf7bc14001e099a4e5bf50172
You just got your 200th merit and good explanation.


Question :  What is a cryptography nonce?
In cryptography, a nonce is an arbitrary number that can only be used once. It is often a random or pseudo-random number issued in an authentication protocol to ensure that old communications cannot be reused in replay attacks.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bit802346 on May 24, 2018, 11:00:45 AM
Question :  What is a cryptography nonce?
[/quote]

it's randomly generated number (block), which used to make sure that old generated communications cannot be reused.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Fawez on May 25, 2018, 05:51:01 AM
Question :  What is the difference between a regular transaction and a coinbase transaction? Do explain the both type of transactions with or without any examples.
A coinbase transaction is a unique type of bitcoin transaction that can only be created by a miner. This type of transaction has no inputs, and there is one created with each new block that is mined on the network. In other words, this is the transaction that rewards a miner with the block reward for their work...


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on May 29, 2018, 01:47:51 PM
Question: What happens when a transaction is included in more than one block?
Don't break the forum rules,and no PLAGIARIZING!


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: joniboini on May 29, 2018, 02:11:22 PM
Question: What happens when a transaction is included in more than one block?
Don't break the forum rules,and no PLAGIARIZING!


Only one transaction will be considered valid (the one which gets included in the block that is broadcasted first on the network). The other transaction (and/or block) will be considered invalid and will be rejected by the nodes.

Source:
https://bitcointalk.org/index.php?topic=216938.0


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BitHodler on May 29, 2018, 02:36:46 PM
Question: What happens when a transaction is included in more than one block?
Don't break the forum rules,and no PLAGIARIZING!


Only one transaction will be considered valid (the one which gets included in the block that is broadcasted first on the network). The other transaction (and/or block) will be considered invalid and will be rejected by the nodes.

Source:
https://bitcointalk.org/index.php?topic=216938.0
Actually, there is no first mover advantage when it comes to transactions, or more precisely said, not anymore. Double spending with a higher fee will make sure the later transaction confirms before the first one.

It's all economics based, where miners only confirm transactions with the highest fees, especially in times where unconfirmed transactions are piled up and impossible to confirm by the next block.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BitCryptex on May 29, 2018, 05:02:22 PM
Question: What happens when a transaction is included in more than one block?
Don't break the forum rules,and no PLAGIARIZING!

Assuming that the block would be valid then it couldn't happen. Transaction can be included in the block only once since it's not possible to spend your bitcoins again.

It's all economics based, where miners only confirm transactions with the highest fees, especially in times where unconfirmed transactions are piled up and impossible to confirm by the next block.

There is no such issue in the Lightning Network since all transactions are settled immediately between two parties as a sort of agreement.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on May 29, 2018, 06:37:44 PM
Question: What happens when a transaction is included in more than one block?

When transaction is present in more than one block then the first block that is broadcasted on the network will be considered valid, other blocks will be considered invalid and it will be ignored by other nodes.

We should note that the block as a whole is either accepted or rejected, not the individual transactions. So all other blocks having that transaction will become invalid.

This is what double spending problem is, the second transaction will be considered a double spend.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: denis-z12 on May 30, 2018, 03:37:13 PM
A transaction can only be valid in one block and the other transaction would cause the whole 2nd block to become invalid in such a case.
Pieter Wuille explains this nicely in this topic - https://bitcointalk.org/index.php?topic=216938.0


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: nalinpuri on June 02, 2018, 05:43:55 AM
When transaction is included in more than one block then first block is validated by the miners and the other blocks are put on hold.
 :D
(Non Google researched answer)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Zhagedu on June 02, 2018, 07:42:17 AM
If the two miners were able to find block linearly on the network, that mean the two blocks have what is called intersection included transactions whereby the two block in their right are valid but only one of this transaction will be included in the longest chain while the other become invalid on the network.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Steamtyme on June 02, 2018, 08:14:37 AM
Question: What happens when a transaction is included in more than one block?
Don't break the forum rules,and no PLAGIARIZING!


Only one of the transactions would be valid in the BTC blockchain.

For the transaction to be valid in 2 different blocks it would have to be during a fork of the original chain.

After typing this I looked for validation on my theory
and came across this
https://bitcoin.stackexchange.com/questions/18656/can-a-transaction-be-in-two-blocks

After reading the response and given when it was written, it looks like other than a fork this would only occur if someone was trying to 51% attack the chain and create a double spend opportunity for themselves.

What I did learn and did not know before, or really think about is that, if you include an already confirmed transaction in a found block it will be rejected and you would lose out on the block reward.

This brings me to another question if someone feels like learning me some knowledge... If someone did lose a block by including an already confirmed transaction, does the network keep working on that particular block, or do all valid transactions that were included in the block go back to the mempool, and the block reward is lost?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: cryptothief on June 02, 2018, 08:34:01 PM
Just did a quick bit of research and this is my 'non-technical' interpretation. The only way a transaction can be included in more than one block is if two miners reach it at the same time. Both would be broadcast and create a brief fork, with nodes building on whichever one they deem as correct (the first one they found) and rejecting the other one. It falls back into line once the next block is mined, confirming a winner and leaving the other initially legitimate block stranded. All subsequent blocks would then continue on the longest chain, with any nodes that found the stranded block first joining back in with the pack.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: El Loco on June 06, 2018, 12:45:05 AM
Question: What happens when a transaction is included in more than one block?
Don't break the forum rules,and no PLAGIARIZING!


I think it's possible for two miner include the same transaction in one block. If both miners include it in the same time then only one will be choosen and the other will be an orphan block. If transactions will come in different time then the second one will be invalid or it will allow a double spending.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pempek19 on June 08, 2018, 09:45:03 AM
where can I find similar kintes? I want to have a better contribution in this forum and get merit prizes. thanks


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: JGreg96 on June 09, 2018, 11:12:58 AM
Question: What happens when a transaction is included in more than one block?
Don't break the forum rules,and no PLAGIARIZING!


I try to reply because i saw inaccurate answers. We are talking about the same transaction still not confirmed. In this case is possible that miner A and B include this transaction in 2 different blocks (one made by A and the other made by B). Then miner A proposes his block to node i and miner B does the same with node j. In this case there will be other miners which will consider the "previous block hash" that of i and other that of j. So other miners like C,D will mine after A-block and miners F,G will mine after B-block. This story will end as soon as most miners (and therefore the greater quantity of hashing power) will continue the story from i (or j) and the other story will be rejected by nodes, so this is reduced by the common sentence "the longest chain wins". If we are talking about the same transaction but in 2 different period it has no sense because the inputs used in the second transaction (which would be the same of the first) are "empty" because they have already spent so it is necessary changing inputs, changing hash, changing transaction.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on June 12, 2018, 04:41:11 PM
where can I find similar kintes? I want to have a better contribution in this forum and get merit prizes. thanks
Yeah no. Merit is not a prize, this is NOT a competition. Now tell me why do you want merit? Just to rank up and shitpost for bounties?
Only one of the transactions would be valid in the BTC blockchain.

For the transaction to be valid in 2 different blocks it would have to be during a fork of the original chain.

After typing this I looked for validation on my theory
and came across this
https://bitcoin.stackexchange.com/questions/18656/can-a-transaction-be-in-two-blocks

After reading the response and given when it was written, it looks like other than a fork this would only occur if someone was trying to 51% attack the chain and create a double spend opportunity for themselves.

What I did learn and did not know before, or really think about is that, if you include an already confirmed transaction in a found block it will be rejected and you would lose out on the block reward.

This brings me to another question if someone feels like learning me some knowledge... If someone did lose a block by including an already confirmed transaction, does the network keep working on that particular block, or do all valid transactions that were included in the block go back to the mempool, and the block reward is lost?
The answer to your question is probably the latter. The network would rather focus on the future blocks, and the transactions in the invalid block would go to the future blocks. Although I cannot be a 100% sure.
Its been a while since I visited this thread, here's my question:

Question:  What is a stealth address? How does it work and how does one use them? 


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vit05 on June 12, 2018, 05:44:07 PM
Quote
Question:  What is a stealth address? How does it work and how does one use them?

It is a way of camouflaging the destination addresses of each transaction using a unique address. You can publish a unique "stealth address" on your website. A blockchain will understand that all unique transactions for that address are different and will not allow a correlation between incoming and outgoing addresses. It does not turn the transaction into something totally anonymous. It would be the same as creating a single address for each transaction.

Receiver generates a an address and a private secret and then sends this address to someone who he wants payment from.
Sender uses the address and a "nonce" to generate the address he/she can send funds to.
Sender communicates the nonce to the receiver and by using this nonce and the secret key generated earlier he/she can unlock the address with the funds.


This concept was introduced by the user ByteCoin.
https://bitcointalk.org/index.php?topic=5965.0


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Heisenberg_Hunter on June 14, 2018, 03:55:12 PM
Question:  What is a stealth address? How does it work and how does one use them? 
Not many users will be aware of stealth address unless they have completely read everything about bitcoin or they have used Monero or other cryptonote coins. As I have used Monero once, I knew how a stealth address works. Let me try to explain this in simple terms.

A stealth address is a type of bitcoin address which is generated by the receiver to receive his funds anonymously. A stealth address generated is used to have a transaction only between the sender and the receiver where the sender cannot view the earlier transactions which were made to the address. A stealth address can be used only once and only for one transaction. The sender sends the coins to the stealth address in the sense that it can only be derived by the receiver using his private keys. Monero uses stealth address technology for its transactions. Basically a stealth address works on the mechanism of Elliptic-Curve Diffie-Hellman algorithm.



How does a stealth address work?

For instance, let us consider Bob is the receiver of bitcoin and Alice is the sender. Bob has a private key (X) and a public key (Y) and Alice has a private key (A) and a public key (B). The public key of both sender and receiver are known to each other.

Now, Bob creates a secret channel say C, where

C= X*B (privkey of Bob * pubkey of Alice)

and Alice creates a secret channel similar to Bob, where

C= A*Y (privkey of Alice * pubkey of Bob)

When Alice pays the funds she hashes the secret channel C and then adds pubkey of Bob and creates a public key or address D where

D= Y + H(C)

This pubkey which is used by Alice to pay the bitcoin is called as Stealth Address. Bob can spend the coins by the private keys he has and also Bob's wallet need to check the OP_RETURN (B) quite often in order to discover the right address and its balances.



Stealth address are very rarely used by Bitcoin network or people due to the disadvantages associated with it. A stealth address can be generated using Dark Wallet.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: buwaytress on June 14, 2018, 04:41:26 PM
Stealth address are very rarely used by Bitcoin network or people due to the disadvantages associated with it. A stealth address can be generated using Dark Wallet.

Not answering, but this question made me look up DW again... and yeah, it's still languishing on GitHub without an update for almost two years now. Samourai, which seems to have active development, appears to implement BIP47 stealth addresses. I would be curious if anyone here has ever used a stealth address with Bitcoin. I haven't. Maybe time to check out Samourai and test this. Still in alpha, though.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on June 14, 2018, 07:11:38 PM

Question:  What is a stealth address? How does it work and how does one use them? 

If a business/organization start accepting Crypto currency then business will need to put his public address. But all the transactions on this public address can be tracked.

Disadvantage for business,
1. revenue details of business are available to competitors.
2. Competitors are knowing the client wallet id too (if they able to find  client  associated with that wallet id, they can try to break that client)
3. They can track the suppliers for that business too.

What business can do.

Business can create a  series of public address  to be used individually with each client or supplier  or it can generate a stealth address .
Now when the client send the payment to business in this stealth address,  a unique address will be automatically generated and funds will go to address  and only sender and receiver determine if payment is complete and no outsider will able to trace back the transaction.

So Stealth Address provide anonymity to the sender and receiver address. 


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on June 14, 2018, 07:47:15 PM
 I am still confused about this stealth address.

I can generate a new address for a payment, and then I will have total price on that transaction.
If for any reason I want to have privacy over the future transactions of that uotx, I could use a coinmix service.

Is there any advantage of using an stealth address over his method?
Maybe convenience, if there is an easy client to handle stealth address?

+1 merit for pugman, for the best question so far. :)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on June 14, 2018, 08:52:19 PM
I am still confused about this stealth address.
Is there any advantage of using an stealth address over his method?
Maybe convenience, if there is an easy client to handle stealth address?
I usually read stuff like this from bitcoin.stackexchange.com (http://bitcoin.stackexchange.com) ,and from what I have come across a reply that explains about stealth addresses in brief and a few things I noticed was:

- Stealth addresses don't necessarily provide 100% anonymity.

- The difference is that stealth address are based on providing unique addresses, other than manually providing different addresses.

Read this reply: https://bitcoin.stackexchange.com/a/29648/5757


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vit05 on June 15, 2018, 05:43:48 AM
I am still confused about this stealth address.
Is there any advantage of using an stealth address over his method?
Maybe convenience, if there is an easy client to handle stealth address?
I usually read stuff like this from bitcoin.stackexchange.com (http://bitcoin.stackexchange.com) ,and from what I have come across a reply that explains about stealth addresses in brief and a few things I noticed was:

- Stealth addresses don't necessarily provide 100% anonymity.

- The difference is that stealth address are based on providing unique addresses, other than manually providing different addresses.

Read this reply: https://bitcoin.stackexchange.com/a/29648/5757

In the last answer, someone says the concept was introduced by Peter Todd. Some other people usually say that. It was not. As I said before, ByteCoin comes up with the concept. But in his concept, the sender could have the money back because both could compute the private key. CryptoNote paper comes up with a solution to this problem. Amir Taaki suggests address format and some use cases and only them Peter Todd make the introduction paper to Bitcoin.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Murphydre on June 15, 2018, 08:47:04 AM
Pls this Q&A still on?cause i will like to join and participate to earn merits! Tanks for the great work here to encourage members.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Murphydre on June 15, 2018, 09:19:11 AM
To my own simple understanding of how stealth address work, a stealth address is a way to let someone pay money to somewhere that the receiver can find and have the public and private key for. The payee provided information for the stealth address such that they can determine the public and private key but payer can only determine a public/receive address. The payee didn't specify that exact receive address but can scan a valid range to find it based on a shared secret between payer (sender)and payee(receiver). The mechanism is designed so that only the payee will have the private key of the destination address.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Heisenberg_Hunter on June 15, 2018, 10:28:15 AM
~snip~
Go and shitpost somewhere! This is not the place for you to prove your plagiarism skills and earn merits. A one liner shitposter who has no knowledge other than bounty hunting came to this thread to beg for merits.

Reported you here : https://bitcointalk.org/index.php?topic=1926895.msg40162174#msg40162174

Maybe convenience, if there is an easy client to handle stealth address?
Dark Wallet and Samourai has stealth address features. But I am not sure how this will work  ??? Stealth address has more disadvantages and it is difficult to use in bitcoin environment.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: mangodebango on June 18, 2018, 05:46:03 PM
Question:  What is a stealth address? How does it work and how does one use them?  


The stealth address is a method where additional security can be granted to a user of a cryptocurrency. For example, if someone wanted to receive a number of tokens of a cryptocurrency from a sender as a payment for work, but didnít want anyone else to know about it, then they could give the sender a stealth address. When the sender sends the funds to the receiver, a random unique address is created where the funds will be shown to have gone on the blockchain. What this means is there is no link between the stealth address and any other transaction address the receiver may have used. This therefore provides a layer of anonymity because no one will be able to see how the receiver spent their received funds.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: bitmover on June 18, 2018, 06:18:30 PM
Question:  What is a stealth address? How does it work and how does one use them?  


The stealth address is a method where additional security can be granted to a user of a cryptocurrency. For example, if someone wanted to receive a number of tokens of a cryptocurrency from a sender as a payment for work, but didnít want anyone else to know about it, then they could give the sender a stealth address. When the sender sends the funds to the receiver, a random unique address is created where the funds will be shown to have gone on the blockchain. What this means is there is no link between the stealth address and any other transaction address the receiver may have used. This therefore provides a layer of anonymity because no one will be able to see how the receiver spent their received funds.


Plagiarism from
https://www.mycryptopedia.com/everything-need-know-stealth-addresses/

Quote
Stealth addresses is a method by which additional security can be granted to user of a cryptocurrency. For example, if Alice wanted to receive 5 tokens of a cryptocurrency from Bob as a payment for a job, but didnít want anyone else to know about it, then she could send Bob a stealth address. When Bob sends the funds to Alice, a random unique address is created where the funds will be shown to have gone on the blockchain. What this means is, there is no link between the stealth address and any other transaction address Alice may have used. Therefore, this provides a layer of anonymity because no one will be able to see how Alice spent her received funds.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BitcoinNewbie15 on June 18, 2018, 07:15:49 PM
Hey guys, I just wanted to say thank you to pugman, billgator, and those that gave genuine answers to the questions they've asked. I haven't participated in this Q&A but I have been following it. I have learned a lot of things from this thread and I think this is a brilliant way of encouraging forum members to learn more about Bitcoin.


It's sad to see how many people in this thread have taken advantage of this by attempting to get away with plagiarism just to earn quick merit  ::).


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: AverageGlabella on June 20, 2018, 12:12:57 AM
Hey guys, I just wanted to say thank you to pugman, billgator, and those that gave genuine answers to the questions they've asked. I haven't participated in this Q&A but I have been following it. I have learned a lot of things from this thread and I think this is a brilliant way of encouraging forum members to learn more about Bitcoin.


It's sad to see how many people in this thread have taken advantage of this by attempting to get away with plagiarism just to earn quick merit  ::).
So not only has this thread provided people like you and I with fantastic knowledge but its also led to people who are trying to abuse the system via plagiarism in order to earn merit getting banned. Thats the very definition of 2 birds 1 stone.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: korkor on June 20, 2018, 01:38:32 AM
Question:  What is a stealth address? How does it work and how does one use them?  

Stealth address can be described as a pseudo address generated by a receiver to receive crypto without others tracking the transactions. To some people, it adds extra security since there is no link between the stealth address and any other transaction address they might have used or use.
   How Stealth Address Works
Lets say I want to receive some cryptos anonymously from a friend, i will send my friend the stealth address which i generated. When the cryptos are sent to me, a random unique address (pseudo address) is created indicating that the transaction has gone through the blockchain with no link to other transaction address I may have used.
People use stealth address as an additional security in relation to anonymity in crypto businesses.    


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vominhtri1611 on June 23, 2018, 04:55:24 PM
Question:  What is a stealth address? How does it work and how does one use them?  
your question is just Bitcoin or both Bitcoin and Altcoins?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Sealis on June 25, 2018, 02:58:17 PM

Question:  What is a stealth address? How does it work and how does one use them? 
[/quote]

Stealth address is a way of security for the receiving end when a bitcoin transaction occurs. Its kind of like when you are hacking a certain address, you wouldn't really use the same address to hack again since there is a chance you might get caught. The concept of "Security" is not limited to people who really want to perform a transaction properly since Stealth addresses can also be used by people who have malicious ordeals. Stealth addresses are a way to prevent people from easily discovering you, just like how changing your IP address or having an anonymous Ip address can prevent someone from hacking into your computer.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: btcnijuan on June 25, 2018, 03:28:23 PM
Question:  What is a stealth address? How does it work and how does one use them?  

I didn't fully understand the meaning of it. But here is my understanding, stealth address is like a one-time address that is given to the sender so that the sender can only see their own transaction and not the other transactions.
It gives additional security in the transaction. That's all I understand. Still confuse a little bit.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on June 25, 2018, 11:25:57 PM
Hey guys, I just wanted to say thank you to pugman, billgator, and those that gave genuine answers to the questions they've asked. I haven't participated in this Q&A but I have been following it. I have learned a lot of things from this thread and I think this is a brilliant way of encouraging forum members to learn more about Bitcoin.


It's sad to see how many people in this thread have taken advantage of this by attempting to get away with plagiarism just to earn quick merit  ::).
Thank you for the kind words. You should participate in this too, doesn't matter if you're right or wrong,so long as you get to learn something.
So not only has this thread provided people like you and I with fantastic knowledge but its also led to people who are trying to abuse the system via plagiarism in order to earn merit getting banned. Thats the very definition of 2 birds 1 stone.
I was actually thinking of moving this thread to off-topic, so that bots could be nuked, but the more they get nuked, the more bots seem to appear.
I didn't fully understand the meaning of it. But here is my understanding, stealth address is like a one-time address that is given to the sender so that the sender can only see their own transaction and not the other transactions.
It gives additional security in the transaction. That's all I understand. Still confuse a little bit.

Read the replies above, I'll update the OP soon :P. Haven't done that in a while.. :-X
your question is just Bitcoin or both Bitcoin and Altcoins?
Read the title of this thread.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on June 25, 2018, 11:29:34 PM
I came across a concept that might be related to altcoins more than it being related to bitcoin, so I decided to bring it up here:

Question: What is a  permissioned blockchain? What is the difference between a permissioned blockchain and a normal traditional blockchain?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Aveatrex on June 25, 2018, 11:44:24 PM


Question: What is a  permissioned blockchain? What is the difference between a permissioned blockchain and a normal traditional blockchain?
A permissioned blockchain is a limited version of normal blockchain in term of permissions.With a permissioned blockchain,the company behind it can choose miners, who can serve as a node etc.. (Like Ripple does).In the contrary,a normal blockchain anyone can be a miner and contribute to the network in general.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on June 26, 2018, 04:56:23 AM
I came across a concept that might be related to altcoins more than it being related to bitcoin, so I decided to bring it up here:

Question: What is a  permissioned blockchain? What is the difference between a permissioned blockchain and a normal traditional blockchain?

 Normal traditional Blockchain, that can be referred as public blockchain also,every body have same rights on the blockchain. Every body will have same read/write rights. The "Bitcoin" blockchain will fit into this example. (or any other Alt coin which is using public blockchain)

Now in permissoned blockchain, the read/write rights on the blockchain will differ from individual to individual.Actually , Blockchain that will be adopted by business most likely will be permissioned or restricted blockchain only.

Let me take a hypothetical example of company like Amazon which is  using blockchain technology. This company is selling goods and shipping to the customer. Customer will now have read access to that blockchain in which company has generated the transaction/invoice number (company will not allow customer to change contents in the invoice generated) and company will have read/write access for that transaction. Apart from that customer others will not have any kind of read/write access (customer identity needs to be preserved).

Now, I come to feedback section. Here everybody can be granted read/write access. Company can read/write there, customer can read write there and others also read that feedback and ask further question there about the customer experience.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: siddartha1492 on June 26, 2018, 05:07:03 AM
I came across a concept that might be related to altcoins more than it being related to bitcoin, so I decided to bring it up here:

Question: What is a  permissioned blockchain? What is the difference between a permissioned blockchain and a normal traditional blockchain?

1) The basic difference between the two is that someone is there to control the permissioned blockchain, while a traditional blockchain is controlled by no one, not even its creators.
2) Permissioned blockchain is equivalent to a private blockchain (can hide their ledger as well) and a traditional blockchain is equivalent to a public blockchain.
3) Permissioned blockchain usually has a set of pre-appointed node validators and everyone can't participate to become a node validator. A traditional blockchain has no such restriction and anyone can participate in mining as long as they have required equipment or assets (in case of POS).
4) Permissioned blockchains are much faster compared to traditional blockchains but are less secure also. Node validators can collaborate to gain maximum control and gains even at the expense of that blockchain project.
5) Ripple is a good example of Permissioned blockchain and Bitcoin of a traditional blockchain project.
DPOS based projects like EOS can be placed in between these two types of blockchains.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: shahzadafzal on June 26, 2018, 06:11:21 AM
Question: What is a  permissioned blockchain? What is the difference between a permissioned blockchain and a normal traditional blockchain?
Traditional blockchain is a public blockchian (or call it permission-less blocchain) anyone can read the data on the blockchian. Anyone can write also but that is of course through a process and by following set of rules. Any one can run a node and do the mining process (transaction verifications). Public blockchian must be decentralized so it will be difficult to tamper  the public blockchain.

Permissioned blockchain is a private blockchain and controlled in way who can read or write data into blockchain. Only verified entities can run a permissioned blockchain node. This can be used by organization or group of organization to exchange information and record transactions in a secure way.

This is important to note that Permissioned blockchain can have almost all the features of permission-less for example decentralization, transparency and privacy. It is wrong to think Permissioned blockchains are not decentralized. For specific business needs permissioned blockchian is more suitable option.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on June 26, 2018, 02:01:12 PM
Alright, so in permissioned blockchain, data can be manipulated. So wouldn't it much riskier? I get that a few companies would want to use this permissioned blockchain, but in legal terms, companies are supoosed to leave their records public, that is a conflict.

Honestly, public blockchains are better than the permissioned blockchain, not that anything is wrong with it, but the possibility of data manipulation is a big no-go.

The replies are wonderful, great contributions guys.  :D


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on June 27, 2018, 03:13:19 PM
Alright, so in permissioned blockchain, data can be manipulated. So wouldn't it much riskier? I get that a few companies would want to use this permissioned blockchain, but in legal terms, companies are supoosed to leave their records public, that is a conflict.

Honestly, public blockchains are better than the permissioned blockchain, not that anything is wrong with it, but the possibility of data manipulation is a big no-go.

The replies are wonderful, great contributions guys.  :D

My understanding is that as per data manipulation Permissioned Blockchain will be same as public blockchain. Only difference is that not all Nodes involved in blockchain will able to do the write operation.

We cannot put all the records in the public view even we use blockchain.
Hospitals cannot put the patient records in public blockchain. Banks cannot put their records(account details etc) in public blockchain.

Companies will provide records to legal authorities but we can not put everything in blockchain for general public viewing.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DesertOasis3 on July 03, 2018, 10:33:08 AM
I came across a concept that might be related to altcoins more than it being related to bitcoin, so I decided to bring it up here:

Question: What is a  permissioned blockchain? What is the difference between a permissioned blockchain and a normal traditional blockchain?

What an amazing thread pugman, it is great to actually find a way that people can stand a chance to earn some merit.

A permissioned blockchain is one that has an access control layer built into the blockchain nodes.

The main difference between a permissioned blockchain and a traditional one is the participants of the network have the ability to restrict who can take part in the consensus of that particular blockchain. So essentially it is not open for just anyone to take part in the validation or mining they need to be granted the rights to do so first.



Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on July 05, 2018, 03:18:44 PM
Question: Define hyperbitcoinization.
My understanding is that as per data manipulation Permissioned Blockchain will be same as public blockchain. Only difference is that not all Nodes involved in blockchain will able to do the write operation.

We cannot put all the records in the public view even we use blockchain.
Hospitals cannot put the patient records in public blockchain. Banks cannot put their records(account details etc) in public blockchain.

Companies will provide records to legal authorities but we can not put everything in blockchain for general public viewing.
Ah..ok
I was misguided before but thanks.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Crypto_Sassy on July 05, 2018, 04:59:13 PM
Question: Define hyperbitcoinization.


To be honest, I heard this term very first time in my crypto currency journey even I am aware of Zimbabwe and Venezuela  crisis.

Hyperbitcoinization will be bitcoin induced demonetization of the currency. Current currency  value (in terms of purchasing power ) will  diminish and people will use bitcoin as a currency.
Hyperbitcoinization is a voluntary transition from an inferior currency to a superior one (here in case is Bitcoin).

Reference: https://nakamotoinstitute.org/mempool/hyperbitcoinization/#selection-79.0-82.0

I am leaving the aspects of the definition now and will try to analyse it on terms of it feasibility.

Cases where it happened probably .
1. Zimbabwe :  Bitcoin is gained popularity there but instead  of Hyperbitcoinization  there I will say bitcoinization  is happened there. Their currency
                       was never holding any ground against any of the world currency and people simply embraced Bitcoin as a better currency.
2.Venezuela   : This looks me the perfect example of hyperbitcoinization. Even Bitcoin is illegal there but still people are embracing the better currency
                       i.e  bitcoin and taking risks to mine it.
3.Japan          : This is interesting example where government  is embracing the bitcoin  and bitcoin value is increased in accordance to japanese
                        currency Yen. Look like hyperbitcoinization is getting supported by government instead of resisting it they are moving towards a global  
                        and  better currency.
4.Rest of the world: Since majority of World trade is done in USD $(Dollars). Bitcoin value raised significantly in a year so we can assume the
                        hyperbitcoinization is taking place all over the world.

Factors that will limit the speed hyperbitcoinization or will not allow it to happen.
1.  Number of transaction supported  by Bitcoin Network in a second is still very less, so moving whole fiat system  in current bitcoin network will cause congestion ad it will not able to replace the system even people are willing for it.
2.Transaction fees of bitcoin depend open in input and output instead of number of bitcoins getting transferred. So Transaction fees might look very high or might me more than cost of item if you are purchasing a very cheap item. (Like a  piece of loaf in developing country)
3.Confirmation time is still around 10 minutes and nobody will be willing to remain in queue for 10 minutes if I am purchasing some grocery items that combined cost  might be couple of Dollars only.

Conclusion: hyperbitcoinization is possible and all the limitation I discussed might be overcome by use of Lightning Network or Bitcoin Debit/Credit card sytem.

                      

 


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: THHC10 on July 07, 2018, 02:42:36 AM
Question: Define hyperbitcoinization.
My understanding is that as per data manipulation Permissioned Blockchain will be same as public blockchain. Only difference is that not all Nodes involved in blockchain will able to do the write operation.

We cannot put all the records in the public view even we use blockchain.
Hospitals cannot put the patient records in public blockchain. Banks cannot put their records(account details etc) in public blockchain.

Companies will provide records to legal authorities but we can not put everything in blockchain for general public viewing.
Ah..ok
I was misguided before but thanks.

Hyperbitconization

It is an inflection point that show the expansion of the bitcoin market to the detriment of another market, that is, massive adoption of bitcoin along with a decay of fiduciary coins.

As well as the appearance of Bitcoin after the financial crisis of 2008, the Hyperbitconization is stimulated by deficiencies in the current market, where the fast adoption of Bitcoin will be the a way to guarantee monetary stability, which is so important.

Venezuela can be highlighted as an example of hyperbitconization, since the country is passing by a historical crisis of governmental origin; Your fiat currency, the Bolivar, is in extreme devaluation. In addition, the interest and demand by Bitcoin in this country is considerable.
Using Google trends (https://trends.google.com/trends/explore?q=bitcoin), it is easy to realize that the country that has the most interest in research in Latin America, referring to Bitcoin is Venezuela.

Thus, it can be said that it will be the exponential transition of a currency in force to the Bitcoin, but in a decentralized way not in a way carried out by a specific monopoly.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DesertOasis3 on July 07, 2018, 05:09:26 AM
Question: Define hyperbitcoinization.

We are all no doubt painfully aware of the process of Inflation whereby a government controls the level of interest rates and of essential services and products within their countries borders. The gradual drip-drip increases (often far in excess of the official published rates) mean we get poorer year by year as the money we have buys less and less. The difference between Inflation and Hyperinflation is that Hyperinflation is where the government increase prices beyond everyone's expectations and sometimes with catastrophic results, a recent example of this would be Venezuela.

People will always look for ways to preserve their wealth it is a natural form of survival and this has often been done by converting FIAT cash which we know is continually depreciating into other forms of Investment such as rare paintings, antiquities or precious metals. When Hyperinflation is within the borders of a country then citizens of that country may choose another FIAT currency to use as their store of value. Again using the example of Venezuela they choose to adopt the usage of US$ as a store of value.

The founding premise of Bitcoin was that it could not be controlled by the world central banks it was supposed to be a coin of the people for the people. By adopting the usage of Bitcoin instead of FIAT we could be insulated from the practices of Inflation or worse Hyperinflation as there is no greedy Government dictating how far the Satoshi in my pocket will go.

So we have defined hyperinflation and the effect it has on a currency. The difference with Hyperbitcoinization is seen as a massive value change in a troubled currency in relation to Bitcoin itself as people no longer want to use their own currency for wealth preservation and instead opt for Bitcoin as a preferable store of value. This becomes more prevalent as hyperinflation affects several or the majority of countries at the same time. So if we see a global collapse of the established monetary we will also likely witness Global Bitcoinization at the same time.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on July 16, 2018, 09:43:11 PM
Newb question: What is a hash? How is it generated?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vit05 on July 16, 2018, 11:46:58 PM
Newb question: What is a hash? How is it generated?

Hash is a mathematical algorithm that takes a large data of any size, make a calculation and create another smaller and fixed size data as output.  It is designed to be a one-way function, that is hard or almost impossible to be reverted.

In Bitcoin we use "secure hash algorithm 256". Bitcoin miners need to produce proof of working buy solving the puzzle to be rewarded. They need to combinate all the inputs ( the most recent transactions+timestamp+reference of the previous block ) with their own Nonce. The combination of Nonce + inputs is tried several times. When the hash value with less or equal to the target of the network is found the miner is rewarded.

Wiki (https://en.wikipedia.org/wiki/Cryptographic_hash_function)
wiki2 (https://en.wikipedia.org/wiki/Hash_function)
99BTC (https://99bitcoins.com/what-is-bitcoin-hash/)
wikiBtc (https://en.bitcoin.it/wiki/Nonce)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: mexite on July 18, 2018, 08:01:56 AM
Newb question: What is a hash? How is it generated?
Hash is an encrypted value or set of values generated by compressing data of arbitrary size to data of fixed size using a hashing algorithm. It saves storage space and ensures high level of security of the hashed data.
Hashes are generated by hashing algorithm and there various types. For example, bitcoin uses SHA-256 whiile ethereum uses keccak-256, but both algorithms create 256-bit hash irrespective of the size of the input string.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on July 18, 2018, 03:44:56 PM
Newb question: What is a hash? How is it generated?

Hash is an algorithm/function  that will  give a fixed size string when input of variable length is given . They are like "One Way " because from  outputs you will not be able to guess input (that make it almost impossible to invert). Instead you need to do trial and error with series of Inputs to check which input is giving the desired output.

Using trial and error will require high computational power and even a change of single bit in input , output will be completely different. It is quite rare but it is possible to get same hash for 2 different inputs.

Storing password  by using hash function in database will be most practical and useful approach because even if the site database is hacked then hacker will able to see the hashed passwords not the real passwords and they will be of no use to hacker (as reversing hash is almost impossible)

Bitcoin uses SHA-256 algorithm to generate the bitcoin address from the public key.



Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: letsfly on July 19, 2018, 07:13:35 AM
Where are we at bitcoin now ? How many left to mine and how many is in circulation?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: RivAngE on July 19, 2018, 11:32:27 AM
Where are we at bitcoin now ? How many left to mine and how many is in circulation?

17,157,700 coins are in circulation out of the total supply of 21,000,000; that is 81.70% as of today.

Every 210.000 blocks the rewards are halved, with the next halving expected at 630000th block which is expected to be reached on May 2020.
So, the speed by which we're moving to 100% is continually beeing slowed.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: RivAngE on July 19, 2018, 11:35:37 AM
Where are we at bitcoin now ? How many left to mine and how many is in circulation?

17,157,700 coins are in circulation out of the total supply of 21,000,000; that is 81.70% as of today.

Every 210.000 blocks the rewards are halved, with the next halving expected at 630000th block which is expected to be reached on May 2020.
So, the speed by which we're moving to 100% is continually beeing slowed.

Since his name is not Bill gator or pugman, I suppose I get no merits, but still it was an easy question which I wanted to answer! If you can still count my answer that'd be appreciated. ;)
By the way I double posted because the rules are "10. No editing your posts after giving your initial answer. Making edits will disqualify your answer."


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: AlekSandRAx on July 20, 2018, 05:23:15 PM
Newb question: What is a hash? How is it generated?
Hash is a mathematical function.  It processes a arbitrary length message (input) into a fixed length output (also hash value, hash, digest).  This is achieved by breaking the input up into a series of equal sized blocks, and operating on them in sequence using a one-way compression function (https://en.wikipedia.org/wiki/One-way_compression_function).

This makes it's infeasible to invert.  The only way to invert it is by a brute-force attack (https://en.wikipedia.org/wiki/Brute-force_attack).

In Bitcoin protocol hash is used in mining process, where the inputs are all of the most recent, not-yet-confirmed transactions (along with some additional inputs relating to the timestamp and a reference to the previous block) while the outputs are the resulting hashes.

Sources:
Wikipedia - Hash function (https://en.wikipedia.org/wiki/Hash_function)
Wikipedia - Cryptographic hash function (https://en.wikipedia.org/wiki/Cryptographic_hash_function)
Coindesk Ė Bitcoin Hash Functions Explained (https://www.coindesk.com/bitcoin-hash-functions-explained/)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: arhipova on July 21, 2018, 03:20:43 AM
I will add a question to keep this going.

We have seen bitcoin evolving from a payment option (currency) to an investment medium over time. Since the concept is still new , is more evolution possible ? If yes, in what forms can it be used in future.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: kitty94 on July 21, 2018, 07:45:11 AM
Newb question: What is a hash? How is it generated?

I have already posted an article regarding the hash functions and the differences between two of most famous hashing algorithms (https://bitcointalk.org/index.php?topic=4547960.msg41208664#msg41208664), SHA256 (Used in almighty Bitcoin!) and Scrypt (Used in Eth blockchain).

As it is a rather long post I am not gonna quote or paste in here for the sake of tidiness of this thread, If you wanna take a look at that you are more than welcome!

Cheers!

PS:
Kudos for the great work done by the OP and hope you will become a merit source (https://bitcointalk.org/index.php?topic=2928807.msg30077955#msg30077955) in near future as the community (Not talking about shitposters but about the members who cares about the forum! ) desperately needs more and more active merit sources!   


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: arde13 on July 25, 2018, 02:18:28 PM
Newb question: What is a hash? How is it generated?

Hash is the checksum. It is the result of the hash function.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on July 25, 2018, 04:27:19 PM
I will add a question to keep this going.

We have seen bitcoin evolving from a payment option (currency) to an investment medium over time. Since the concept is still new , is more evolution possible ? If yes, in what forms can it be used in future.
This is a question which seeks more of opinions than facts. So doesn't actually count as a question. Will visit this thread later.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: tommisetiyawan on August 03, 2018, 12:22:26 AM
I came across a concept that might be related to altcoins more than it being related to bitcoin, so I decided to bring it up here:

Question: What is a  permissioned blockchain? What is the difference between a permissioned blockchain and a normal traditional blockchain?
The difference between the blockchain that is allowed and the traditional blockchain is that there is someone specifically to control the blockchain that is allowed, while the traditional blockchain can be controlled by anyone, even controlled by the one who made the blockchain. And a more detailed explanation is that traditional Blockchain is a public blockchain, anyone can read blockchain data, but that is of course through the process and with a series of rules. while the Blockchain that is permitted is a private blockchain and is controlled in a way that can read or write data on the blockchain. Only verified entities that can run blockchain nodes are allowed.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on August 03, 2018, 10:02:41 PM
This isn't directly related to bitcoin, but I just thought people should know more about this. There have been proposals for bitcoin ETFs to the SEC, and got rejected at least twice.

Question: Explain what is an ETF and how it works?

Apologies for not being around for this thread. Have lot a personal issues going around.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: cryptothief on August 03, 2018, 11:15:58 PM
An ETF is an exchange-traded fund, basically a fund that owns a variety of assets enabling investors to own individual portions of the fund via a tradeable token. The value of the fund will rise and fall depending on the value of the assets it owns. It is tradeable, as are the underlying assets (on their own specific markets), so savvy investors can potentially take advantage of any difference in value to make arbitrage trades.

There is plenty of talk about crypto ETFs, and these would work by owning a selection of cryptocurrencies, likely to be market leading coins with high liquidity, constantly trading to maintain the specified/desired ratio. This spreads investors' risk across multiple currencies without having to make a number of trades to do so, therefore if the overall market value of the coins in the portfolio goes up, the value of the ETF will increase accordingly.

The concept of a Bitcoin ETF hit the news recently when the SEC (US Securities and Exchange Commission) rejected the Winklevoss brothers' second attempt to create one and list it on a regulated stock exchange. According to this article (https://bitcoinist.com/lack-of-bitcoin-based-etfs-challenges-cryptocurrency-investment-markets/), there have been 'seven blockchain based ETFs approved so far in 2018'.

I'm sure there is someone who will be able to go into more detail, but reckon this covers the basics.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: havok1998 on August 04, 2018, 03:13:18 PM
ETF refers to exchange-traded funds. ETF is type of investment fund that is traded on public stock exchanges, but is a bit different from mutual funds. By owning an ETF, the investor indirectly invests in multiple assets as shares such as gold or other foreign currencies,etc without having direct claim upon them. Its like they indirectly own these assets. Advantages of owing ETF are :
1. Higher liquidity.
2. Lower fees than other shares.
3. Diversification of investment into different assets.
4. Real time trading can be done like stocks.
Some example of ETF are : crude oil, gold, foreign currencies.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: RivAngE on August 04, 2018, 03:55:34 PM
I'll try to keep is as simple as possible for people with no economic knowledge...


ETFs are tradable "intangible things" (the correct word is "securities"), which track the price of anything valuable or a combination of them.

For example there is an index called "FAANG" that tracks the combined price of Facebook, Apple, Amazon, Netflix and Google (hence the name).
Someone could buy a few stocks of these companies or they could buy FAANG ETF.

People can go long on an ETF (bet the price will rise) or short (bet the price will fall).


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DesertOasis3 on August 06, 2018, 05:20:32 AM
We are hearing a lot about ETFs at the moment with the particular relevance to crypto being the attempts in getting a Bitcoin ETF sanctioned by the SEC. So what exactly is an ETF? it is an Exchange Traded Fund that is based upon a group of stocks, indexes or commodities. Investors can buy into these instead of purchasing individual stocks with the advantage being that the good performers will balance out the poor ones and give you a reasonable overall return. They differ from funds in that a fund will have a manager making the decisions on what to buy and sell whereas the ETF just tracks them.

A Bitcoin ETF will be based on the Bitcoin benchmark index which will track the daily price of Bitcoin and investors can then get involved through the fund giving them exposure to the swings in price without having to buy or store Bitcoins themselves.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: AlekSandRAx on August 06, 2018, 11:47:57 AM

Question: Explain what is an ETF and how it works?

ETF or Exchange-Traded Funds tracks bonds, futures, index, commodities, currencies etc., or a baskets of assets.  

The baskets are created and redeemed by Authorized participants (APs), based on the demand of the assets they hold.

ETFs value is divided into shares which can be traded by individuals via broker like stocks.  Traders don't own the assets of the ETF directly, only the shares.

ETFs can be traded throughout the day on major exchanges.

Please correct me if I got something wrong.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: kirreev070 on August 12, 2018, 09:19:32 PM
Question: Explain what is an ETF and how it works?
Exchange-traded fund (English Exchange Traded Fund, ETF) is an exchange investment fund, that is, it is an investment fund whose shares are traded on the stock exchange.
Operations on ETF shares can be made throughout the trading day, and their price varies depending on the activity of market participants.
All ETF shares must be fully secured with assets in the manager's account
In the case of bitcoin, transactions will be made not with bitcoin itself, but with ETF, which saves investors from having to have bitcoins.
The purchase in this case, as you have already understood, happens only indirectly.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: newinbtc on August 13, 2018, 10:52:43 AM
Question: Explain what is an ETF and how it works?
Types of Exchange Traded Funds (ETFs)
United States Market Index ETFs
Foreign Market Index ETFs
Foreign Currency ETFs
Sector and Industry ETFs
Commodity ETFs
Derivative ETFs
Style ETFs
Bond ETFs
ETNs ó Exchange Traded Notes
Inverse ETFs
Leveraged ETFs
Actively Managed ETFs
Dividend ETFs
Innovative ETFs

What is an ETF?
ETF stands for ďexchange-traded fundĒ and describes a kind of investment fund where the price of assets like gold, stocks and oil can be tracked. These assets can then be traded on exchanges, just like conventional stocks.

how ETF IS RELATED TO BITCOIN
Bitcoin ETF - when you buy bitcoin ETF. ETF tracks real time tracking of bitcoin price.
the difference is that when you invest in bitcoin etf you have lots of bitcoins without buying and storing it.

how you can buy bitcoin ETF - Example

this company provides same service.
The Greyscale Investmentís Bitcoin Investment Trust (GBTC)

This company is holding more than 175,000 Bitcoins currently

benefits of purchase share
ownership of cryptocurrencies
assets are stored with Xapo Inc. This is a deep, cold form of storage and it is highly robust.







Michael Strutton, the CEO of Ironwood says in his Medium post
IF THE INTRODUCTION OF BITCOIN ETFS ATTRACTS 20% OF THE AVAILABLE EQUITIES TRADING MARKET (122 MILLION) THAT WOULD ADD 24 MILLION NEW INVESTORS!Ē


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on August 16, 2018, 10:55:05 PM
Question: Explain the avalanche effect.

Coming with questions is really hard nowadays, you have to witch hunt for those that not everybody knows.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vit05 on August 17, 2018, 12:45:47 AM
Question: Explain the avalanche effect.

This effect occurs when a small change in input leads to large changes in output. This is essential to ensure greater safety. Since it is much more difficult to predict what Input was, even when knowing the output.

If a single bit of the input leads to only one bit of the output, it is easy to try to find the input: just change a bit of it and check if it is correct.

It's like the butterfly effect. A small change leads to unexpected results.

Wiki


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vphasitha01 on August 17, 2018, 02:23:43 AM
Question: Explain the avalanche effect.

Avalanche effect is a property of cryptographic hashing algorithm. If small change(assume 1 bit changes) in the input value leads to a significant change(half of the output bits flip) in the output(hash value) we called it as avalanche effect of cryptography.

That way people can ensure that a person cannot predict the output massage by looking at the changes of the output hash. So this property brings more security for the massage sender as well as the receiver.

Source>>>https://en.m.wikipedia.org/wiki/Avalanche_effect (https://en.m.wikipedia.org/wiki/Avalanche_effect)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Zoha_228 on August 20, 2018, 01:47:55 PM
Question: Explain the avalanche effect.

Coming with questions is really hard nowadays, you have to witch hunt for those that not everybody knows.
In cryptography, the avalanche effect is the desirable property of cryptographic algorithms, typically block ciphers and cryptographic hash functions, wherein if an input is changed slightly (for example, flipping a single bit), the output changes significantly (e.g., half the output bits flip). In the case of high-quality block ciphers, such a small change in either the key or the plaintext should cause a drastic change in the ciphertext.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BusWay18 on August 23, 2018, 04:47:02 AM
Question: Explain the avalanche effect.

In  cryptography,  the  avalanche  effect  refers  to  a
desirable  property  of  cryptographic  algorithms,
typically  block  ciphers  and  cryptographic  hash
functions. The avalanche effect is evident if, when an
input is changed slightly (for example, flipping a single
bit)  the  output  changes  significantly  (e.g.,  half  the
output  bits  flip).  In  the  case  of  high-quality  block
ciphers, such a small change  in either  the key  or the
plaintext  should  cause  a  drastic  change  in  the
ciphertext.
 
If a  block cipher or  cryptographic hash function does
not exhibit the avalanche effect to a significant degree,
then it has poor randomization, and thus a cryptanalyst
can make predictions about the input, being given only
the  output.  This  may  be  sufficient  to  partially  or
completely  break  the  algorithm. Thus,  the  avalanche
effect is a desirable condition from the point of view of
the designer of the cryptographic algorithm or device.

(PDF) Study of Avalanche Effect in AES. Available from: https://www.researchgate.net/publication/304141002_Study_of_Avalanche_Effect_in_AES [accessed Aug 23 2018].


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DesertOasis3 on August 24, 2018, 07:15:01 AM
Question: Explain the avalanche effect.

The Avalanche effect when describing cryptography refers to an eventual change in the output hash that affects half of the bits but is started by a tiny change of the input say just one bit. The Avalanche analogy comes from the facts that even one snowflake landing on the rest of the snow on a mountain can start a huge avalanche.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Crypto_Sassy on August 26, 2018, 05:08:29 AM
Question: Explain the avalanche effect.

Look like I am late to party. Everybody given the definition and quoting the source so I am not going to repeat the same definition.

Lets go in definition of word "Avalanche".  Actually avalanche is a snow slide or in other words a large mass of snow going down by the violent force (due to gravity). It is very dangerous and can have speed of 80 miles per hour or 128 km per hour. They just need a trigger  that is most of time is provided by human activity. Actually snow in steep slope are in a delicate balance and if this balance is broken then gravity start playing its role. They can grow more strong in their downward journey gathering more snow and disturbing other delicate balances too.

So slight change in input (trigger) causing the output to change too much (disturbed balance) is Avalanche effect.

Hope you guys enjoy this relationship between a natural effect with a cryptography phenomenon.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Coolcryptovator on August 26, 2018, 07:02:24 AM
This isn't directly related to bitcoin, but I just thought people should know more about this. There have been proposals for bitcoin ETFs to the SEC, and got rejected at least twice.

Question: Explain what is an ETF and how it works?

Apologies for not being around for this thread. Have lot a personal issues going around.

ETF = Exchange Traded Fund. I had explained my other post.

What is Exchange Traded Fund:
Exchange Traded Fund most like stock exchange. Those fund use to be traded on stock exchange that's called EFT. From ETF you can track all tradable assets and you can trade from there. That means you can track price buy and sale to other investor through stock exchange.
ETF become most popular  due their low cost facility. There is many broker for buy sale assets. I just share my basic idea about ETF. If you want to know more details please visit Wikipedia (https://en.m.wikipedia.org/wiki/Exchange-traded_fund).

How will be benefited crypto or Bitcoin holder's from ETF:
If U.S. Securities and  Exchange Commission (SEC) approve EFT application than many big investor will start invest on Bitcoin/crypto-currency. Because Bitcoin or other crypto-currency will consider like an asset. So crypto currency will be open diverse set of investors. There will be no restrictions for crypto currency. For that reason crypto currency price will increase rapidly. Those will buy Bitcoin or other crypto-currency they can track real time price from ETF and can sale to other investors.

However, what I understand that if SEC approve EFT than crypto revolutions will be unbelievable.  Most of crypto currency will be up trend. We can see currently just discussing about EFT on SEC board & price of Bitcoin on bulls run. We expect SEC will consider EFT application on middle of August.





Question: Explain the avalanche effect.

In  cryptography,  the  avalanche  effect  refers  to  a
desirable  property  of  cryptographic  algorithms,
typically  block  ciphers  and  cryptographic  hash
functions. The avalanche effect is evident if, when an
input is changed slightly (for example, flipping a single
bit)  the  output  changes  significantly  (e.g.,  half  the
output  bits  flip).  In  the  case  of  high-quality  block
ciphers, such a small change  in either  the key  or the
plaintext  should  cause  a  drastic  change  in  the
ciphertext.
If a  block cipher or  cryptographic hash function does
not exhibit the avalanche effect to a significant degree,
then it has poor randomization, and thus a cryptanalyst
can make predictions about the input, being given only
the  output.  This  may  be  sufficient  to  partially  or
completely  break  the  algorithm. Thus,  the  avalanche
effect is a desirable condition from the point of view of
the designer of the cryptographic algorithm or device.

(PDF) Study of Avalanche Effect in AES. Available from: https://www.researchgate.net/publication/304141002_Study_of_Avalanche_Effect_in_AES [accessed Aug 23 2018].


Directly copy/paste from Wikipedia (https://en.m.wikipedia.org/wiki/Avalanche_effect). By the way people are going to research due to merit reward ;). I just avoid him to report plagiarism as well he try to research.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on August 27, 2018, 08:33:10 AM
Question: Explain the avalanche effect.

(PDF) Study of Avalanche Effect in AES. Available from: https://www.researchgate.net/publication/304141002_Study_of_Avalanche_Effect_in_AES [accessed Aug 23 2018].


Directly copy/paste from Wikipedia (https://en.m.wikipedia.org/wiki/Avalanche_effect). By the way people are going to research due to merit reward ;). I just avoid him to report plagiarism as well he try to research.

Sorry for posting on a row, just by mistake during collect quote. Unable to delete before 24 hour's, pugman please delete it. I have save on draft & I will update on my Above post.

Nopes, This guy copied from that paper (the PDF reference  in the post). Since I do not expect a research paper to be plagiarized, and both paper and wikipedia having same definition, I make assumption might be wikipedia is plagiarized.  
PS: Still make me wonder how somebody looking for a simple definition find a complex research paper in which definition is in the third page of the research paper not even in the first and did he/she really read that paper to that point?


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vphasitha01 on August 27, 2018, 01:49:56 PM
Question: Explain the avalanche effect.
<...snip...>

(PDF) Study of Avalanche Effect in AES. Available from: https://www.researchgate.net/publication/304141002_Study_of_Avalanche_Effect_in_AES [accessed Aug 23 2018].

Directly copy/paste from Wikipedia (https://en.m.wikipedia.org/wiki/Avalanche_effect). By the way people are going to research due to merit reward ;). I just avoid him to report plagiarism as well he try to research.

Nopes, This guy copied from that paper (the PDF reference  in the post). Since I do not expect a research paper to be plagiarized, and both paper and wikipedia having same definition, I make assumption might be wikipedia is plagiarized.  
PS: Still make me wonder how somebody looking for a simple definition find a complex research paper in which definition is in the third page of the research paper not even in the first and did he/she really read that paper to that point?
I also agreed with @r1s2g3 and I don't think it can be taken as plagarised contents. He/she looking for research paper before giving the answer is actually better than just posting spam. If she/he read that research paper before posting means something to me and even worth a Merit(at least for me). Since the introduction of Merit system, people are going to read even research papers before posting. So isn't that good thing rather criticizing?

I don't know why people are thinking that details in the Wikipedia is always right and those are not plagarised from anywhere. Actually some of the details are incorrect in Wikipedia and academic communities normally not taken details published in the Wikipedia as trusted sources for cites, since those details can be manipulated.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: cryptogideon19 on September 03, 2018, 08:37:01 AM
Hello boss, Is this Q/A still available for the Answer? And If it's not Any way for make merit's or something to learned about your thread? Seeing your thread about bitcoin makes me amaze for someone who really devoted to bitcoin.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: pugman on September 07, 2018, 11:52:41 PM
Sorry lads, don't yell at me,I am back. And I got a question.

Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)

Hello boss, Is this Q/A still available for the Answer? And If it's not Any way for make merit's or something to learned about your thread? Seeing your thread about bitcoin makes me amaze for someone who really devoted to bitcoin.
Hello employee, did you do the reports I asked you to do? I didn't get any, and you're fired. Get your filthy ass outta here. </sarcasm>

Don't post for merit dude. Just post about what you like and what you know,with some common sense. That said, whatever you need to learn from this thread, is there in this thread.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: RivAngE on September 09, 2018, 03:39:26 PM
Sorry lads, don't yell at me,I am back. And I got a question.

Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)

Hello boss, Is this Q/A still available for the Answer? And If it's not Any way for make merit's or something to learned about your thread? Seeing your thread about bitcoin makes me amaze for someone who really devoted to bitcoin.
Hello employee, did you do the reports I asked you to do? I didn't get any, and you're fired. Get your filthy ass outta here. </sarcasm>

Don't post for merit dude. Just post about what you like and what you know,with some common sense. That said, whatever you need to learn from this thread, is there in this thread.

You forgot to open the command with <sarcasm>
To answer this, I'd first like to give a short explanation of what a BIP is. BIP stands for "Bitcoin Improvement Proposals" and as the name suggests, community members suggest an improvement for the Bitcoin protocol in an official and structured manner. Every BIP goes through the some phases while it's being decided if it'll be implemented or not, which usually (but not always) look as the following,
https://coinsutra.com/wp-content/uploads/2017/07/BIP-Life-Cycle.jpg

So, BIP 174 is going to allow users to perform offline transactions through a protocol that would allow them to sign transactions without having to upload them to the network immediately.
It's also called as "Partially Signed Bitcoin Transaction", PSBT for short.
From the information I've gathered I understand it works almost like a check (cheque) we use for fiat transactions, where we sign in a paper that we'll offer 1000Ä, give it to a person and then they go to a bank to cash out from our account. In Bitcoin's case we sign a transaction offline, give it to a person, they may even sign it and give it to another person, until finally someone goes online and cash out the BTC from the initial signer.

---
Serious explanation ends here, bellow is some extra info I've found for which I'm note 100%.
---

The bellow slides 10 and 11 show an example. If my knowledge in Japanese from years of otaku activities are to be trusted,
https://speakerdeck.com/azuchi/bip-174-partially-signed-bitcoin-transaction-format?slide=10
Alice initiates a PSBT transaction and sends it to Bob. He then signs it and sends it to Carol who signs it and sends it to Bob who finnaly recevies the money from Alice. Alice initial transaction was supposed to be for Bob, but since he signed from Carol and then Carol for Bob, Bob is the one who receives the Bitcoins.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: r1s2g3 on September 09, 2018, 09:43:59 PM
Sorry lads, don't yell at me,I am back. And I got a question.

Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)

BIP is Bitcoin Improvement Proposals and Proposal 174 is titled " Partially Signed Bitcoin Transaction Format"  that proposes to have a binary transaction format that will have all the necessary information for a signer to produce signatures for the transaction and holds the signatures for an input while the input does not have a complete set of signatures. The signer can be offline as all necessary information will be provided in the transaction.

Signing transactions also requires users to have access to the UTXOs being spent. This transaction format will allow offline signers such as air-gapped wallets and hardware wallets to be able to sign transactions without needing direct access to the UTXO set and without risk of being defrauded.


Source : https://github.com/bitcoin/bips/blob/master/bip-0174.mediawiki


Look like it is currently tough for me to put these technical documentation in somewhat simple words.





Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: vlad230 on September 12, 2018, 11:41:21 AM
Sorry lads, don't yell at me,I am back. And I got a question.

Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)
It's the first time I'm joining this thread and it seems an interesting way to learn new stuff :)
I'm not going to quote you any texts I find online but just say what I understood from it while reading about it, with my own words. So, here it goes:

BIP 174 is a proposal to use a binary transaction format that can allow users to pass a transaction around multiple people (using different wallet softwares) to sign and combine their signature to authorize it. This format will also allow offline signers like hardware wallets to sign transactions without needing direct access to unspent transaction output.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DireWolfM14 on September 12, 2018, 05:04:07 PM
Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)

The way I (layman) understands it, BIP 174 will allow us to transfer bitcoin from a cold wallet with a "partially signed transaction" without having to immediately upload that transaction to the bitcoin network.   Meaning we can use our (supported) cold wallet for purchases and transactions while maintaining it's security.  Transactions will be fully signed at a later time.

So, essentially it can make a cold wallet partially hot.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DesertOasis3 on September 17, 2018, 08:50:00 AM
Sorry lads, don't yell at me,I am back. And I got a question.

Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)


BIP 174 will make it possible to perform transactions offline by a standard protocol that will have the facility for signing the transactions and then connect later to upload them to the Bitcoin Network. These transactions are known as Partially Signed and whilst still in the development phase, the flexibility it will offer would be of great benefit to Bitcoin in the future.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: hisori on September 18, 2018, 01:48:23 PM
Sorry lads, don't yell at me,I am back. And I got a question.

Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)


BIP 174 has been created to only helps for signing and creating on a chain transactions. It also acts as a transaction that dont need to be broadcast yet on a bitcoin network.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: btctop1 on September 20, 2018, 07:31:32 AM
Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)

BIP is the Bitcoin Improvement Proposal. BIP 174 is the part of bitcoinís official repository & he is potentially allowing the blockchain to support the famous "Partially Signed Bitcoin Transactions" (PSBT) in the future.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: advisor_moon on September 20, 2018, 08:06:50 AM

Interesting question!
BIP 174 is a transaction format for transactions that are not ready to be broadcast to the Bitcoin network yet. I believe it will help us to send transactions without the need of immediate Internet connection. It will help for creating and signing on chain transactions and thus boosting the business of Cold Wallet manufacturers too.

I have a question too - How is it different from Lightning network ? (I mean technically)


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: slocker on September 24, 2018, 11:16:56 AM
Sorry lads, don't yell at me,I am back. And I got a question.

Question: What is BIP 174? (Its gonna be out for bitcoin 0.17.0 version)



BIP 174 is upgrade for Bitcoin (BTC) has just been added to the official network repository (so it should in next version of bitcoin core).
Its use will take place in allowing the blockchain to support Partially Signed Bitcoin Transactions (PSBT) in the future.  If this is implemented soon (hopefully we will see it) then the implementation of this solution will enabled Bitcoin's blockchain to improve certain essential.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: purple.thoughts on September 24, 2018, 01:11:51 PM
BIP 174 is the advancement or improvement for bitcoin technology where bitcoin can be transacted offline. This said improvement is still on development phase and not yet launched official nor can be functioned now.  A lot of people specially bitcoin enthusiast can wait to see its full functionality soon.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: DerukEaa on October 04, 2018, 03:42:01 PM
Function of BIP 174 is helping to make and sign  block-to-block transaction. This is built for compatibilities client-to-client. And also make possible easier hardware wallet and offline wallet setting.

So BIP 174 is not protocol or layer 2 solution for off chain transaction but BIP 174 is a transaction format for  a transaction  that not ready to broadcast to the bitcoin network.


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: BusWay18 on October 06, 2018, 08:42:15 AM
This isn't directly related to bitcoin, but I just thought people should know more about this. There have been proposals for bitcoin ETFs to the SEC, and got rejected at least twice.

Question: Explain what is an ETF and how it works?

Apologies for not being around for this thread. Have lot a personal issues going around.

ETF = Exchange Traded Fund. I had explained my other post.

What is Exchange Traded Fund:
Exchange Traded Fund most like stock exchange. Those fund use to be traded on stock exchange that's called EFT. From ETF you can track all tradable assets and you can trade from there. That means you can track price buy and sale to other investor through stock exchange.
ETF become most popular  due their low cost facility. There is many broker for buy sale assets. I just share my basic idea about ETF. If you want to know more details please visit Wikipedia (https://en.m.wikipedia.org/wiki/Exchange-traded_fund).

How will be benefited crypto or Bitcoin holder's from ETF:
If U.S. Securities and  Exchange Commission (SEC) approve EFT application than many big investor will start invest on Bitcoin/crypto-currency. Because Bitcoin or other crypto-currency will consider like an asset. So crypto currency will be open diverse set of investors. There will be no restrictions for crypto currency. For that reason crypto currency price will increase rapidly. Those will buy Bitcoin or other crypto-currency they can track real time price from ETF and can sale to other investors.

However, what I understand that if SEC approve EFT than crypto revolutions will be unbelievable.  Most of crypto currency will be up trend. We can see currently just discussing about EFT on SEC board & price of Bitcoin on bulls run. We expect SEC will consider EFT application on middle of August.





Question: Explain the avalanche effect.

In  cryptography,  the  avalanche  effect  refers  to  a
desirable  property  of  cryptographic  algorithms,
typically  block  ciphers  and  cryptographic  hash
functions. The avalanche effect is evident if, when an
input is changed slightly (for example, flipping a single
bit)  the  output  changes  significantly  (e.g.,  half  the
output  bits  flip).  In  the  case  of  high-quality  block
ciphers, such a small change  in either  the key  or the
plaintext  should  cause  a  drastic  change  in  the
ciphertext.
If a  block cipher or  cryptographic hash function does
not exhibit the avalanche effect to a significant degree,
then it has poor randomization, and thus a cryptanalyst
can make predictions about the input, being given only
the  output.  This  may  be  sufficient  to  partially  or
completely  break  the  algorithm. Thus,  the  avalanche
effect is a desirable condition from the point of view of
the designer of the cryptographic algorithm or device.

(PDF) Study of Avalanche Effect in AES. Available from: https://www.researchgate.net/publication/304141002_Study_of_Avalanche_Effect_in_AES [accessed Aug 23 2018].


Directly copy/paste from Wikipedia (https://en.m.wikipedia.org/wiki/Avalanche_effect). By the way people are going to research due to merit reward ;). I just avoid him to report plagiarism as well he try to research.
Before critism me with plagiat...look at up comment about avalanche...all same word and i do search in google that word same with Wikipedia...and i search again with Paper research...cause i believe with word or sentence that build from someone or grup that has research about avalanche...and i give link better than Wikipedia...people can studi thiier paper research with avalanche....


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: RivAngE on October 11, 2018, 08:01:49 PM
Question #1: What is bitcoinís Mempool? What does it do, what is held there and where is itís physical location on the network?

The bitcoin mempool is where unconfirmed Bitcoin transactions are stored.
It's a set of all all the transactions that have been broadcast but have not yet been added to a block by a miner.
Every node has its own transaction relay policy so there is no definite mempool, but different mempools for different nodes.

                            From February... really?
https://techcrunch.com/wp-content/uploads/2012/06/912accb5_picard-facepalm.png?w=240


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Heisenberg_Hunter on October 12, 2018, 08:10:58 AM
The bitcoin mempool is where unconfirmed Bitcoin transactions are stored.
It's a set of all all the transactions that have been broadcast but have not yet been added to a block by a miner.
Every node has its own transaction relay policy so there is no definite mempool, but different mempools for different nodes.
Please use text spinning tools next time while you are plagiarising some content. It is really easier to find out you have stolen these texts from websites and just posting here for merit. There is no way other than reporting you here : https://bitcointalk.org/index.php?topic=1926895.msg46786275#msg46786275
You will most probably be temp banned or permabanned sooner.

Sorry Sir, Plagiarism ruined your life  :(


Title: Re: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.
Post by: Bakul_cacing on October 12, 2018, 05:24:14 PM
The bitcoin mempool is where unconfirmed Bitcoin transactions are stored.
It's a set of all all the transactions that have been broadcast but have not yet been added to a block by a miner.
Every node has its own transaction relay policy so there is no definite mempool, but different mempools for different nodes.
Please use text spinning tools next time while you are plagiarising some content. It is really easier to find out you have stolen these texts from websites and just posting here for merit. There is no way other than reporting you here : https://bitcointalk.org/index.php?topic=1926895.msg46786275#msg46786275
You will most probably be temp banned or permabanned sooner.

Sorry Sir, Plagiarism ruined your life  :(
sorry sir

Do I learn more about your question? because I want to increase my ranking in this forum without any problems.

once again, I am sorry