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1941  Other / Beginners & Help / Re: Number of Transaction Confirmations Needed on: August 31, 2012, 01:19:32 PM
What determines the number of transaction confirmations that must be completed prior to a wallet or website considering the transaction complete (irreversible) and subsequently acknowledging the transaction? The bitcoin wiki states that only six confirmations are typically required for proof of irreversibly and I believe I've come across some websites that follow this guideline. Along the same lines, why are mined coins acknowledged after 100 confirmations, rather than, say, six? If anyone could comment, I would be interested to learn more about how one judges sufficient number of confirmations. Thanks.

Double spend attempts are rare.  Really rare.  Because of this, if the chain reorgs, all legitimate transactions that were in the old chain will be in the new chain, or they'll make it in shortly.

But, a reorg destroys a coinbase permanently.  If that coinbase had been spent, all transactions that traced back to it would become invalid and need to be thrown out.

So, the solution is to prevent spending coinbases until WAY more blocks have passed than we ever expect to get balled back in a reorg.
1942  Other / Beginners & Help / Re: Did I just lose $200 worth of BTC? on: August 31, 2012, 01:15:20 PM
Odds are pretty good that it was just addr.dat that you needed to delete.  That is the culprit like 90% of the time.  The good news is that the latest RC has swapped that out for a less annoying system.

The logs should indicate which file is causing the problem.
1943  Other / Beginners & Help / Re: I bought some of Goat's PPTs and now Pirate wants to deal with me directly? on: August 31, 2012, 01:08:55 PM
Phishing?
1944  Economy / Economics / Re: Why does Bitcoin subsidize saving? on: August 31, 2012, 12:46:00 PM
it's also a complete non sequitur to the discussion, but maybe if it's bolded and in a bigger font it will mean something more

Ok.  It is already bold, I can't make it bolder.  How about red?

Money is not riches, it's representation of riches.

Your posts make it clear that you do not understand this distinction.  Here is a recent example:

Explain to me how non-productive capital pursues innovation or accelerates the rate of growth in the economy. Or are we just going to say that capital sitting in a wallet accruing deflationary interest at little to no risk is productive again? Innovative, even?

Capital does not sit in wallets.
1945  Economy / Economics / Re: Why does Bitcoin subsidize saving? on: August 31, 2012, 12:37:11 PM
Money is not riches, it's representation of riches.

Money is not riches, it's representation of riches.

Money is not riches, it's representation of riches.

Put another way, money is not wealth.  Money is what you use to purchase wealth.
1946  Other / Beginners & Help / Re: FPGA MINING? on: August 31, 2012, 12:27:41 PM
There are up front costs, and then per run, per wafer and per chip costs.  The fabs are rarely totally transparent with them, preferring instead to give quotes like "X for the first 1000 chips, Y for each subsequent thousand", or whatever.

Assuming that there are no errata, Y should be much lower than X.  If there are errata, and they can't be fixed with blue wire, you might be back to step 1.
1947  Bitcoin / Bitcoin Discussion / Re: New Hampshire Deputy Secretary of State Recognizes Bitcoin Contributions on: August 30, 2012, 11:05:01 PM
I don't think it is as big a deal as it seems. The same laws apply to any donations: cars, boats, airplanes, apples, carrots... Pretty much anything that can be sold for fiat currency.

Yes, but so far there has never been legal recognition of bitcoin as being equivalent to "property" that has "value" that someone "can own."  Given that Bitcoin's are really just a figment of the digital imagination of millions of GPUs and CPUs, it remains uncertain how they might be recognized in the legal system.

This is the first legal context that it has been recognized as property with value.  It's not the biggest legal context there can be:  exactly where it falls in the world of securitys, stocks, FOREX, etc, remains to be seen.  But it's still a first step among many.

And the important part, is that it's first foray into a beaurocrat's lap has been positive:  if it had been shot down for whatever reason, Bitcoin would start off at a disadvantage.  We'd be fighting an uphill battle.  So, this is a very positive thing, and enables others to jump on board because now there is a bit of precendence that they can leverage.

And getting recognition is huge.  It establishes the presumption, makes it normal.  Think of the hoops that Jubal tricked the government into jumping through when they met with Mike in Stranger in a Strange Land.
1948  Bitcoin / Bitcoin Discussion / Re: Is quantum computing a issue for bitcoin? on: August 30, 2012, 11:02:01 PM
Back in 2009 Shor's algorithm had been used by a quantum computer to factorise the number 15. Anyone know what the most recent record is?

15!  But this time with electrons, and this time it was really truly QuantumTM, for sure.

Also, according to Wikipedia, the first factoring was done in 2001.  It may not have actually been a quantum event since entanglement wasn't observed, but I'd think that teaching an NMR machine to factor integers would be a bigger accomplishment!  After all, everyone "knows" that quantum computing is coming, but getting Shor's to work in a non-quantum computer would change the world.
1949  Bitcoin / Development & Technical Discussion / Re: Reviving post: Where's the -walldir option in bitcoind? on: August 30, 2012, 10:54:17 PM
So are you saying wallet.dat effectively comprises a table in the BDBE - does BDB not support linked tables?
If wallet.dat is linked in with these other database files, how come it can be renamed and replaced with a new wallet.dat without any discernible difference apart from I can now send BTC from my new wallet -what difference does the BDB see if this file is outside the data folder? If Access can manage linked tables... - I know, bad example ;-)

BDB doesn't work the way you are thinking.

BDB records extra data outside of the database files in an attempt to ensure consistency across (some types of) crashes.  For historic reasons, BDB expects database files all to be in the same place, and all of the files in that place share a single journal set.  The log.* files in database/ are the BDB journal, FYI.  As long as the files are closed properly and marked as clean ("detached"), you can swap them back and forth with no problems.  It simply doesn't support having files in multiple places, and there is nothing that bitcoin's developers can do about it.

The only option is to work around it by creating a whole second BDB instance, doubling the overhead, doubling the development effort needed, and bloating the code.  Oh, and then the client would have to rescan after even trivial "clean" crashes (maybe even on normal starts too, now that I think about it), because there would be no way to do transactions across both instances and so the code could never be sure that both databases were synchronized, even if both were marked clean.

I'm not even sure if Access does any journaling, it's been a long time since I used it, and google results weren't very helpful.  If it does do any, it does it inside the file, not externally like BDB.  Also, Microsoft has gigantic systems (OLE, DDE, etc) for data access abstraction hidden in the operating system so that their products can interact for "free".  The Bitcoin devs get no such help, they have to use the lowest common denominator between Windows, Macs and Unix, which is nothing.  Which means that they need to bring along their own third-party database library, and it needs to be freely distributable, plus work across all three platforms.  BDB fits that bill, not much else does.

gmaxwell - your holier than thou, coder superiority is not helpful, with you pull requests and shell histories. The -walletdir thread was posted over 18 months ago by Stephen and promptly died. We all appreciate the amazing work you guys are doing getting the bitcoind to it's current state, but most of us don't understand what's behind the system and that's only going to grow as adoption increases - embrace the eternal September dude, most people don't have the time to understand the ins and out of BDBE, we just see features that we would like or things we'd like to change. Bitcoind is still a terrifying prospect to install and use for most mortals, when it comes to storing actual wealth on your computer. Making it clear which files actually give you (or any thief) access to your cash, should be one-syllable-a-minute, crystal clear to the most sausage-fingered retard able to switch on a PC. If someone would like to point me to the pull request list, I'd happily hammer it up there.

Shit, September is right around the corner isn't it...  By the way, pull requests are for patches, not feature requests.
1950  Economy / Economics / Re: Why does Bitcoin subsidize saving? on: August 30, 2012, 07:59:54 PM
Here is the fundamental flaw of bitcoins economic model in one sentence:

Spending because of a need is fundamentally less than because of a want.
(I would be surprised if this gets any insightful answers)

I struck out your baseless assertion.  Your one sentence is trivially true, but being merely a roundabout definition of "want" and "need", it is devoid of other content.  It certainly does not follow from that sentence that more spending is better, nor that the lack of spending is evidence of a flaw in anything.  Nor does it say anything about what the real level of spending is or should be.
1951  Bitcoin / Bitcoin Discussion / Re: Is quantum computing a issue for bitcoin? on: August 30, 2012, 06:17:32 PM
Hmm.  The other hundred threads on this same topic all came to the conclusion that QC wasn't a problem for the next decade or more, and that we'd have plenty of time to adapt as technology improves.

I'm going to watch this thread, just in case it turns out differently from the others.
1952  Bitcoin / Armory / Re: Armory - Discussion Thread on: August 30, 2012, 05:33:07 PM
The security drawbacks of a deterministic wallet like this are basically insignificant.  A common complaint is that someone could compromise your seed, and then wait for your to make a big deposit and steal it at a later time.  The Satoshi wallet, "unsteals" itself after some time.  I think this argument is bogus:  they still have 100 addresses in your address pool to wait for some juicy coins to come in with your Satoshi wallet, and frequently there's enough there to be worth taking it right away.  There's very few situations where the deterministic wallet compromise is actually non-negligibly worse than a Satoshi-wallet compromise.  You're screwed in both cases.

On the other hand, the security benefits of the deterministic wallets are so dramatic, they far outweight anything else (and hence why the Satoshi client wants to switch to deterministic wallets in a future version).

-- One-time backup -- many more users are going to accidentally delete their wallet or have a failing disk drive, than those who will suffer because the deterministic nature of the wallet enabled a very unique attack on their already-compromised wallet.  Backup your wallet one freakin' time, ever.  Generate milllions of addresses, you're always protected.  This is the biggest fear users have with the Satoshi wallet, and regular, persistent backup solution will fail for the average user... they may keep it up for a whlie, but they swap their backup drive, and forget to set-up their backup system again, or just too lazy.  Nay -- print off your wallet once, put it in a safe-deposit box, and live merrily knowing that you won't lose them.

-- Offline wallets -- you don't need me to tell you the benefits of it.  You already know.  The ability to store the private seed offline and never touch the internet is why the attacker won't get the seed to compromise you. 

I'm in total agreement.  I was skeptical of deterministic wallets early on, because I know that they are full of traps waiting to catch the unwary.  But done right, the difference in security is negligible at worst (and with a huge upside 99.9% of the time).  And the negligible security loss is only in the amount of work the attacker has to do after he's already done the impossible.  Seems like a good trade.

However, for my personal deep safe wallet, I still prefer that my keys be unrelated and totally random (well, as random as /dev/random).  Keys generated offline using known code (using something like a live distro that predates bitcoin, heh), encrypted and burned to M*Disc DVDs and printed on archival paper, addresses burned to different DVDs and also printed.  Copies of the encrypted private keys stored in different cities.  Easy to send money to a wallet like that, but very difficult to get money out, which fits my needs very well (but is not practical for most people or most uses).

The sad thing is that for every person that thinks that I went overboard, at least one other person will think that I wasn't careful enough.
1953  Bitcoin / Armory / Re: Armory - Discussion Thread on: August 30, 2012, 04:24:57 PM
The rainbow attack would be huge, and sneaky.  You are using 32 bits for the chain, so find one collision and 2 billion operations later (on average) you've got the entire rest of the sequence, forever.  I know you care enough to carefully generate high quality a and c values, but a brain wallet using this system starting with a and c derived from user input is a disaster waiting to happen.

The first private key and chaincode are each 32 bytes.  Even if the chaincode was smaller, it wouldn't matter much.  The purpose of it is simply to add entropy to the iterative process.  And in Armory, the chaincode is actually calculated from the hash(PubKey) so it changes on every step.  In the end, the chaincode only protect your privacy, not your security... I had recommendations to shorten it considerably for this reason: it doesn't need to be a full 32 bytes to accomplish its purpose.

Ahh, so it is bytes.  I read your chart wrong.

Hmm, that makes your scheme (very!) slightly less secure against rainbow tables.  Yeah, I know, rainbows for this are totally impractical because you have a good initial a, but a (very!) lucky hit would reveal the rest of the sequence without the bother of having to search for the c that generates the next one.

And just to be clear to people following along at home, the level of "very lucky" that I'm talking about is probably along the lines of an attacker being saved from Death By Meteor when another meteor hits the first one at the last second, knocking it aside.  In practice, it isn't much better than brute force, as long as a is strong.  If some idiot modifies it to accept a weak a from the user, all bets are off.
1954  Bitcoin / Armory / Re: Armory - Discussion Thread on: August 30, 2012, 03:49:26 PM

I guess that means that if Moore's law holds for a bit longer (heh), it will become possible to attempt rainbow tables attacks on schemes like this if they don't start with a good entropy source for a and c.  Brainwallets come to mind.

That's the basis for this thread: https://bitcointalk.org/index.php?topic=102349.0
The idea is to make the standard clients only accept certain kinds of seeds, thus requiring brainwallet users to add X bits of hard entropy to their [probably crappy] brainwallet seed.  I'm not a fan of brainwallets, but we know that folks insist on it, so we want to try to be responsible about it.

scrypt seems to be the only safe way to do it, and with terribad parameters so that it takes forever even on a decent box.  Real users won't do it often enough to be put off by it, but attackers have more resources.

Agreed on the brain wallets.

The rainbow attack would be huge, and sneaky.  You are using 32 bits for the chain, so find one collision and 2 billion operations later (on average) you've got the entire rest of the sequence, forever.  I know you care enough to carefully generate high quality a and c values, but a brain wallet using this system starting with a and c derived from user input is a disaster waiting to happen.
1955  Bitcoin / Armory / Re: Armory - Discussion Thread on: August 30, 2012, 03:03:42 PM
What is the public key?
Code:
new_P = (c*a)*G = c*(a*G) = c*P

That's pretty cool.  The EC multiplication routine doesn't look like it should associate and cancel like that.

I guess that means that if Moore's law holds for a bit longer (heh), it will become possible to attempt rainbow tables attacks on schemes like this if they don't start with a good entropy source for a and c.  Brainwallets come to mind.
1956  Bitcoin / Wallet software / Re: how to generate a valid private-key + recv address in PHP? on: August 30, 2012, 02:30:02 PM
i now use vanitygen via exec(); from php.
i then present the enduser with the bitcoin-address where he can pay his money,
at the same time the private-key is sent to an off-site bitcoind to be imported there.

You'd be better off generating the pair remotely, and pulling the address into the customer-facing server.

The stuff that you don't want stolen is being created in the place that you are worried about it being stolen from.  That isn't a great idea, even if you delete it right away.
1957  Bitcoin / Armory / Re: Armory - Discussion Thread on: August 30, 2012, 01:11:27 PM
Someone is saying that with your deterministic wallet you can create a watching wallet that generates a sequence of public keys that matches the sequence of private keys generated elsewhere.  Is that true?  And if it is, how the heck do you do it?

I'm not a cryptographer so perhaps someone else can answer you with more details, but from what I've read around here, the seed is an ECDSA key pair itself. A sort of "master key". So, you use the master private key for the private key series, and the master public key for the public key series. It's a nice feature of ECDSA, apparently.

Heh, I'm no cryptographer either, that's probably my problem.  But I do have an implementation of ECDSA that I'm somewhat familiar with, and it works correctly with bitcoin keys.

I was just going through the code that I use to generate ECDSA keypairs, and the multiplication used to create the public key didn't look like it could possibly be done in that way.  The multiplication depends on every bit in the private key, and you can't back out a step if you want to change one of the private bits.  (My understanding is that if you could do that, it would totally break ECDSA's security.)

Because of that, I had assumed that Armory generated a couple thousand (or whatever) private keys, made public keys for them, and gave you the option to export just the public keys for watching elsewhere.  If it turns out that there is a pair of iterator functions that can create halves of a keypair without the other half present, I've gotta see it.
1958  Bitcoin / Wallet software / Re: how to generate a valid private-key + recv address in PHP? on: August 30, 2012, 11:28:32 AM
But there is no real "out of the box" PHP solution ready, right?
As most PHP based onlineshops (oscommerce, xtcommerce, zen-cart,...) run on a shared webspace, they would really benefit from a solution that does not rely on "bitcond" running as a service (or external server).

If you don't trust the host that runs your web store with your wallet, you really shouldn't trust it with the stuff that your wallet it made of either.
1959  Bitcoin / Wallet software / Re: how to generate a valid private-key + recv address in PHP? on: August 30, 2012, 05:55:47 AM
By the way, this is possible to do entirely in PHP, no calls to an external program.  You need a PHP library for doing EC math (there is one, LGPL), the curve definition for secp256k1 (copies of SEC2 are available for free on the web) and a little code to glue it all together.

The nice part is that if you do it all internally, you can specify the private key rather than asking the program for one at random.
1960  Bitcoin / Armory / Re: Armory - Discussion Thread on: August 30, 2012, 05:50:57 AM
Question about watching wallets...

Someone is saying that with your deterministic wallet you can create a watching wallet that generates a sequence of public keys that matches the sequence of private keys generated elsewhere.  Is that true?  And if it is, how the heck do you do it?

Generating a list of (pseudo)random numbers to use as private keys is easy enough, and deriving public keys from them is also pretty simple.  But I can't figure out how to write a generator for a sequence of public keys that doesn't involve generating the list of private keys and then deleting them.
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