That's not even a fair comparison. Obsolete is not even the correct word since it is still held in high regard and fully-functioning.  It is not all about the operational costs but the security of algorithm. Scrypt hasn't even undergone cryptanalysis as far as I know.  Unless it is based on Blowfish? If not, I would still rather put my money in something with 20 years of exposure and testing.

Algorithms are serious business and it's not something that is usually gotten right in the first shot. Scrypt could end up flawed and broken one day and not because of bruteforce.

Additionally, Bcrypt can have its workload upgraded from what I hear. Probably as high as Scrypt. Again, it's not just about workload. It's about sound cryptography.

http://en.wikipedia.org/wiki/Bcrypt

Can it be done? I ask this because Bcrypt's cipher Blowfish is a notable cipher since there is no effective cryptanalysis on its full-round version. It has been tested since 1993. This may be the strongest, most well-tested hashing function that can be incorporated into a altcoin.

Scrypt on the other hand is VERY experimental. SHA-256 was created by the NSA in 2008. Enough said there.

So, if anyone wants to create a altcoin that uses Bcrypt as its hashing function and within its digital signatures, I will mine it and invest in it -- as long as you don't go crazy with other features. Stay true to the original bitcoin formula.

Thoughts?

Federal government agencies, with their granted sovereignty and secrecy, tend to work against each other. It would not be out of the question for the NSA to purposefully have a hold on the crytography used by all federal agencies and beyond. The President is likely not even on a need-to-know basis or security clearance with the higher echelons of the NSA. It requires trust and faith to believe the NSA is working in unison with the entire federal government and the American people. Their budget is classified. Their offices overload electrical grids. They employee thousands. People granted enormous power have an endless incentive to grow it. To have access to all government data and be able to spy on it is very valuable and is right in the NSA's jurisdiction.

Okay, SHA-256 has been well-studied. There are vulnerabilities. It is not unreasonable to believe these don't go further. Take from this what you wish but SHA-256 makes me uneasy. It makes me want to sell all my bitcoins.  

I do not trust the cryptography bitcoin is using and that is all the trust bitcoin has. Without that, bitcoin is nothing. SHA-256 will make or break bitcoin.

I put this warning on the record for the future look back at.

http://en.wikipedia.org/wiki/SHA-3

Is it worth doing since SHA-256 was directly designed by a centralized, secretive government agency who may have included a nuanced and hidden flaw?

There are also pre-image attacks against SHA-256:


Would it be hard to switch Bitcoin over to SHA-3? How would it be done?

This.

Exactly what I am implying and it isn't unreasonable either considering their budget is classified and their offices clog traffic considerably.

http://en.wikipedia.org/wiki/NIST_hash_function_competition#Entrants

I suggest we create a series of cryptocurrencies based on different hashes. Why? Because any one of them can be hacked including SHA256 and ECSDA. If we have a cryptocoin for every feasibly-survivable hash function out there, we can always have a cryptocurrency to rely on because at least one should survive for the next century or so. They could all be merge-mined together, creating the ultimate octopod of economic decentralization!

The best hash functions are the ones so good that the NISPT wouldn't want the general public having them. Look at the rejected entrants list of their competition for clues! Some of them the public doesn't even know about!

Personally, I think cryptocurrency can do much better than the NSA-created SHA256.

Well, I'm implying it may already be compromised by the enormous amount of resources the NSA has in talent, hardware and other technology. I am not even talking strictly about bruteforce but rather inherent flaws that have always existed.

Anyways, we should look at rejected algorithims when it comes to new solutions. The NIST got really nervous about anything "too exceptional" in their competition.

http://en.wikipedia.org/wiki/NIST_hash_function_competition#Entrants

It's not even actual intellect these agencies are utilizing: It's control over the world's resources and information. They take. They do not usually create. They see a man with potential, they see his ideas and they snatch him before he can work for anyone else using limitless government funding.

I don't think you understand cryptography. If both SHA256 and ECSDA are compromised, funds can be shifted around at will irregardless of the true owners. All private keys would be open to anyone who knows the hack.

They created SHA256 and they likely have a hold on ECDSA. Historically, they have had a hold on cryptography by over 20 years in future technology. They usurp almost all cryptography talent and beyond before the private sector can even touch it. My gut tells me the NSA already has exploits into all the technologies bitcoin utilizes. I think we're fucked for now. Cryptocurrency may not die as an idea but bitcoin may fall before it can truly succeed.

In order for cryptocurrency to work we need a thriving, free civilization with no hegemony that usurps most R&D and capital. We need the latest and greatest cryptography and we just don't have it.

Bitcoin as it stands may just turn into a fringe money laundering operation for the CIA and NSA before it no longer serves its purpose.

Guys, it's called the weekend.

Is the US dollar really a stable currency? Does it always buy the same amount? Inflation really can't be that bad, can it? Let’s look at the price of a Big Mac in the U.S. for years 2004 – 2012 according The Economist:

2004: $2.90

2005: $3.06

2006: $3.10

2007: $3.22

2008: $3.41

2009: $3.57

2010: $3.73

2011: $4.07

2012: $4.45

Calculate that into percentage increases:

2005: 5.5%

2006: 1.3%

2007: 3.9%

2008: 5.9%

2009: 4.7%

2010: 4.5%

2011: 9.1%

2012: 9.3%

How is that for a stable currency? Inflation according to the government is supposed to be only 3% or lower! Bitcoin only performs better in purchasing power at this scale. It may be volatile but it isn't has negatively volatile as the US dollar.

References:

http://www.economist.com/content/big-mac-index

http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

https://encrypted.google.com/search?client=ubuntu&channel=fs&q=bitcoin&ie=utf-8&oe=utf-8

Kind of a problem, eh?

It's definitely a public key, private key transfer system they are describing.

That's enough to take us to $100 and above!

Are there still US dollars available during the weekend?

Another lead:

http://blog.sc5.fi/2013/02/sc5er-intro-the-bitcoin-guy/

This was posted a little more than a week ago:


He was removed from the list of project developers on bitcoin.org in June 2011. The same time Satoshi left. He still owns the bitcoin.org and bitcointalk.org domains.

Within the next few decades, extraterrestrial life will become the norm. I have consistent sources I know to be reliable in regards to this. Our governments will fall. Enlightenment will ensue on a level that we cannot currently imagine.

I am putting this here for the record just so I can be considered cool when it happens.

Feel free to speak into the sky using your mind. Just pretend you are broadcasting a message everywhere. Given enough time and if you ask to see UFOs, you will see them. They are waiting for the right moment to reveal the truth.