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Orphaned Blocks are the valid blocks which are not part of the main chain. They can occur when 2 miners produce blocks at the same time or they can be caused by the hackers attempting to reverse transactions.
If you find your transaction in an orphaned block, the best thing to do is wait for your crypto to be recovered. Your transaction will go back to the queue and will be included in the subsequent block.
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That means you need to trust the authorized person
I didn't mean that we need to trust an authorized person completely. If he has given an authority to verify the block, then he will be responsible for everything that happens to the blocks that is assigned to him. |
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the main problem with sharding is keeping it decentralized. sharding can work with a database easily but blockchain is not a normal database. the current design of a decentralized trustless cryptocurrency is that you literary start from ground zero and download every single transaction that has ever been made and verify them one by one then add to your database. finally you will be left with a blockchain (database) that is cryptographically secured and verified so you can trust it. if you introduce sharding you are removing that trustlessness and would require trusting others.
Thanks for your thoughts on this. Don't you think the process of downloading every transaction and verifying them one by one is a tedious and long process. This requires a lot of time. Instead in sharding, the blockchain will divide into seperate shards. Nodes will have to validate the transactions that are assigned to that node only instead of whole ledger. And for security risks, Ethereum has proposed a random sampling concept where authorized person will verify the block authentication. This can eliminate the trustlessness. What do you say? |
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I was reading an article and came across the word "Sharding". It is nothing but a form of database partitioning, also known as horizontal partitioning. The idea of sharding is to move from a linear execution model(like in Ethereum) and allow multiple, parallel transactions processing at the same time. This can improve the scalability issues and can increase the number of transactions per second(TPS). Some blockchains already using sharding are Zilliqa, the first public blockchain to implement sharding. It was able to achieve 2,828 TPS in its testnet. The Ethereum foundation is also planning to introduce sharding as a part of Ethereum 2.0. If the sharding can increase the speed of the transaction validations and therefore increases the speed of the entire network, then why all cryptocurrencies don't implement this on the blockchain to reduce the scalability issues? Are there any drawbacks in Sharding? Are there any alternative solutions to sharding? Please share your thoughts on this. Source: https://cointelegraph.com/explained/sharding-explained |
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I think of Canada is the best place as I have read that they accept tax payment in BTC.
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altcoins not surging in value like bitcoin presently
Sure, altcoins aren't surging in value that much like bitcoin is, but even their prices are increasing, at a rapid rate, may I include (though not all coins') For example, Litecoin. With its halving approaching, it's natural that its price will increase. |
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- Is this the only method that can be used or any other method where I can use 1 wallet for multiple addresses?
This is not the only way. I started my crypto journey by reading about wallets. Let me share what I have read. You can do in HD wallets as well. HD wallets are basically the the advanced version of deterministic wallet.
Deterministic wallets which are also called seeded wallets are wallets where private keys are derived from a common key. Also, one way hash function is used while deriving these private keys thus, the private key can never get back you seed. If you have backed up the seed you can easily recover your wallet. This is the biggest advantage of deterministic wallet over the non-deterministic wallet. HD Wallets As I mentioned above HD are the advanced version of deterministic wallet. The HD wallets have tree structure that is a parent key can drive child keys and the child keys can generate grand children key and this keeps on creating in a tree fashion. There are muliple uses of HD wallets: - One is recovery like Deterministic wallet
- You can allocate the different branch of of sub-keys to different purpose
- Also, one can create public key with accessing to private key increasing the securite concerns (even I am exploring more about this feature so, unable explain in detail)
The hardware wallets like trezor and Ledger are HD wallets. |
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If transferring all funds every-time is required.
Not required, but strongly encouraged because paper wallet is more suitable as cold wallet. If I forget to transfer the remaining funds to other address can it be easily hacked?
No. The risks of your private key is exposed by stealing paper wallet is still same Won't there be a confusion as in which of my address is holding the account if, this process happens regularly?
Paper wallet usually only have an address How fixable is it to use paper wallet in this case?
Zero, if you use it like regular wallet. The lines I quoted are from Mastering Bitcoin. An I have heard that this book is like Bible for understanding Basis. It says that the private key will be compromised. |
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I read the below lines and a bit confused. Please help: although you can deposit funds into a paper wallet several times, you should withdraw all funds only once, spending everything.
This is because in the process of unlocking and spending funds some wallets might generate a change address if you spend less than the whole amount. additionally, if the computer you use to sign the transaction is compromised, you risk exposing the private key.
If transferring all funds every-time is required. Then, if I want to transfer X amount of funds to someone then I need to transfer the remaining funds to some other address. That means I am paying transaction fee twice. If I forget to transfer the remaining funds to other address can it be easily hacked? Won't there be a confusion as in which of my address is holding the account if, this process happens regularly? How fixable is it to use paper wallet in this case? |
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Logically, the price has to increase with the halving right?
Halving basically reduces the reward to the miners. If miners are rewarded less then there can be reduction of miners due to maintanince cost and other reasons which in-turn may increase the congestion.
Also, the price increases as the supply is less and demand is more. Halving by halving the supply reduces and demand increases thus, the price hash to increase.
Those are common misunderstandings. The number of miners does not affect the backlog of transactions because the difficulty self-adjusts every two weeks. Halving does not halve the supply. It halves the production. The supply of bitcoins continues to rise as the total number of bitcoins approaches 21 million. "Reduce in supply" by this I meant the number of coins that are getting mined will be reduced. Halving is the process of 1/2 the Coins that are mined right? Or you can say that it is reduction of reward by 50%. Which indirectly means the number coins Coinbase transaction reduces exactly by half. This is why I refereed supply reduces. I did not get you. I did not understand how that does not effect. Demand and supply balance always affects the market right? Please explain. Now I am confused. |
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Bitcoin halvings which have happened before always displayed far-reaching heights, hence the same is expected of the upcoming one.
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The times that the price has risen dramatically do not coincide with a halving. Doesn't that indicate the price rises are unrelated to the halvings? These facts contradict the story of the halving-induced price rises: The price rise after the 2012 halving started about a year before the halving and ended with a bubble shortly after the halving The rise to $1000 started six months after the 2012 halving, after a steep drop following the previous bubble. If you attribute the rise to $1000 to the halving, woulding you also attribute the fall from $200 to $70. The price rise to $20000 started about a year before the 2016 halving and the price actually fell during the month after the halving. You make a very good point, but we normally see a slight increase in the price about a week or two before the Halving event starts and that might be directly attributed to the media hype that are built before the event happens. I think people give more credit than credit are due for this event having a significant impact on the price. The impact is much smaller and it only last about 2 or 3 weeks.  Logically, the price has to increase with the halving right? Halving basically reduces the reward to the miners. If miners are rewarded less then there can be reduction of miners due to maintanince cost and other reasons which in-turn may increase the congestion. Also, the price increases as the supply is less and demand is more. Halving by halving the supply reduces and demand increases thus, the price hash to increase. This is as per my understanding. Please do explain if you have other side of looking into the halving. |
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There are 4 simple indicator :
1. Whether you're asked to store 12/24 mnemonic words
2. There's option to restore your wallet only with 12/24 mnemonic words.
3. Depending on wallet application you uses, there should be icon which indicate you're using HD wallet/not.
4. There's option to export master public key/master private key on your wallet.
it is worth adding that these may not cover all cases and it may not be true in all cases either. for example bitcoin core is a deterministic wallet but it does not use mnemonic so there is no 12/24/... words to back up, only a seed that the user won't see in GUI. (i think point 3 is the only thing that works in this case) or some web wallets like Blockchain.info used to have a "recovery phrase" while they weren't deterministic at the time. it looked like a mnemonic but it was for something entirely different. I do not know much just in learning stage so, clearing my doubt. Blockchain.info was a non deterministic and I read that passphrase also introduce risk of loss when both of these disadvantage are there in Blockchian.info why were or are users using it. Does it have some positive side as well? Sorry, if I have miss understood. |
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4. There's option to export master public key/master private key on your wallet.
Clue number 4 is the best, at least to my mind. All (private key:public key) pairs are derived from one master key pair. That is what an HD wallet is by definition. By contrast, the nondeterministic wallet contains random pairs of private and public keys, and hence it cannot have a master key. I agree this is one way of verifying and even the 3 point I felt very worth while as I could check before Signup or buying whether it is HD or not. @ETFbitcoin Thanks a lot. |
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Hi everyone,
Newbie here. Was reading about wallets. I am completely new. The friend who introduced me to crypto said need to know how and where to store funds is the first think I should know so started with wallets.
Coming to my query:
I read that there are two types of wallets First deterministic wallet and the other is non deterministic wallet. It was said that deterministic wallets are best. How would a user like me(newbie) know which is deterministic and which is not?
Also, read that Trezor and Ledger are hardware(offline wallets) which are deterministic as well. But, in the initial stage of investment I do not want to invest much on wallets.
There are many people here who know about crypto and blockchain since ages please advice. If there is something that I can read and understand please do share I am ready to read or put efforts to understand things.
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