changes italicized

ETA: based on my current rate of output, heat death of universe

Proof-of-work algorithm:

The block header is hashed with Keccak[r=1416,c=184] with 8192 bits (1 kibibyte) of output. Using a sequential memory-hard function, the previous hash is hashed again, repeatedly until it is hashed ((1.04^(months past first block))*1.5*difficulty) (rounded down) times. The block headers are then hashed again with Keccak[r=1088,c=512] with 256 bits of output. The previous hash outputs are then collectively hashed using Keccak[r=1344,c=256] with 256 bits of output. In order for the hash to be accepted, it must have an equal or greater number of leading zeroes then the difficulty target.

The intent is simple, to make this ASIC resistant (no one can determine the precise amount of memory needed for an ASIC miner, and thus some chip space will be underutilized), and to be within the cache limits of a CPU to allow mobile devices to still be able to confirm blocks.

Block reward and block difficulty will be retargeted every 660 blocks. The difficulty will target generating a new block every 15 minutes. The block reward will be targeted to equal 200*(difficulty-minimum_difficulty) coins per block.

This is meant to stabilize prices and incentive miners to mine, an increase in economic security (through an increase in liquidity) and an increase in computational security.

Block difficulty is the count of the required number of leading zero bits for a hash. While this decreases precision, it is unlikely for this to matter significantly. It is also unlikely that the distribution of outputs with most pseudorandom functions immune to preimage attacks to be 100% uniformly distributed. This of course means that the average block will be generated between 10 minutes and 22.5 minutes, but averages are a fiction anyway, since it can take between a millisecond and a day for a block to be generated for any cryptocoin.

Block header contains only block number, 8-byte nonce, and merkle root. Version, previous hash, difficulty, timestamp, extranonce, and transactions are located within the merkle root. The difficulty is a one-byte value.

Block fees will be charged per byte of a block, however the first kilobyte for a block is free (the block header and first transaction ought to be free). Block fees will be sent to an invalid address, this is a “fee” that is effectively “collected” by the entire “community” to avoid miners or other entities from causing a tragedy of the commons by spamming the blockchain with either data or dust transactions. It’s conceivable that in the future cryptocoins which round up to the nearest kibibyte will result in people using the spare room in their transactions to upload a book byte by byte. Block fees will be 0.002 coins per byte, although in the beginning block fees are too insignificant to matter. For every additional megabyte, marginal block fees per byte doubles.

The first 67,500 blocks may not be larger than one megabyte to prevent blockchain spam. The first 200,000 blocks may not be larger than two megabytes for the same reason.

Transaction fees will be a means for miners to make profit and to pay off block fees. Transactions fees could be at minimum 0.002 coins per byte.

Smallest coin size will be 0.0001.

Transactions in a future version should include data. It is wrong restricting the ability to add data to the blockchain to miners.

Sanity check for maximum transaction or maximum coins per block is 66000*difficulty.

Terminology will be changed. Wallets for this coin will be “password managers,” and each private key is a “password.” This is more accessible to relative laymen and might prevent certain forms of confusion. It is doubtable an absolute layman will ever be able to truly access a cryptocoin without an online wallet.

The client will ideally include a way to open a bootstrap file, instead of manually navigating through folders and moving files around. The bootstrap file extension should be changed to “.ledger”.


Future plans: Restrict stored transactions per public key to 1 until a block includes the transaction. Delete transactions stored after a week.

Right now the typical transaction is half a kilobyte or less, correct? And cost is rounded up usually?
Best way to reduce transaction fees is to price it on a per byte basis. There, transactions just got quartered.

How many terabytes per year would be created in the block chain if Bitcoin replaced Western Union?

One block every 30 minutes. Difficulty retarget every 330 blocks. SHA-256 hashcash. Maximum block size is 512 kb. Minimum difficulty is 100.

Block reward will be re-targeted every 330 blocks. Initial block reward is 1 coin for the first 330 blocks. The equation for the block reward will be the (difficulty/1.02225^^{(blocknumber/330)})^^.42. Each coin is divisible to the thousandth place. Block reward is capped at 3,000 coins per block.

The minimum transaction fee to forward to a different node will be 0.0002*block reward per kb rounded up to the nearest thousandth.

The sanity check for maximum coins per block is changed to ten trillion. Maximum coins in a transaction is one trillion.

Block header changes/additions: transactionfee_per_kb_vote (4 bytes, does nothing for now), blockreward (4 bytes, affects the block reward), and nonce is increased to a 64-bit value.

Client changes: Under the file menu, one can click on load bootstrap, which would open a ... file browser (I think is the term, please correct me if I'm wrong), and through that a bootstrap file can be selected. The bootstrap file extension will be changed from ".dat" to ".ledger".

I'm not willing to pay ~$9 for wiki posting privileges (I'll probably spend less time on the wiki then the forum anyway), so I'm going to make suggested changes to pages from here.

Proof of Burn: remurrage should be changed to dispatch. The opposite of demurrage is dispatch. It should also be mentioned that is theoretically possible to create an address prefix that would not have a private key attached to it, much like how Bitcoin addresses with a prefix of 3 can have multiple private keys.

How does it work?

Or in the case of primecoin.... doesn't work?

What if these insufficient transaction fees causes miners to accept only higher fees, and this encourages miners to only accept even higher fees. Because of these high fees, people stop transacting.

Perhaps the only way to compensate is inflation?

There should be ability to open a bootstrap.dat from the file menu.

Where is the difficulty code located?
Where is the block reward code  located?
Where is the block header code located?
Where is the minimum transaction fee value located?
Where is the gui code located?
Where is the code located for the file menu?
Where is the code located for command line commands?
Where is the code for the "-loadblock=" command located?
Where is the code for the seed DNS located?


I am only asking for educational purposes.

" approximates the rate at which commodities like gold " are mined. I keep seeing this, and this is in the Bitcoin wiki. But we always mine 1% to 5% of the total gold supply per year?

How does double hashing protect against birthday attacks? Never been able to see this explained on the internet no matter how I google search.

The value of a currency is the value of goods or currency that are demanded for the currency minus the transaction costs of that currency. These transaction costs tend to be so small that they may as well be ignored for established currencies.

Take for instance, paper money. Anyone can actually design and print paper money. Ignoring instances where people attempt to copy money, unique paper currencies not issued by a government are valueless for one reason: people are less likely to accept them, and it is more difficult to transmit them across vast geographic distances (no banks, no cheque clearinghouse). Both increase transaction costs, if one accepts the paper money, in order to purchase intermediate goods or pay for labor, one can either pay for it in paper money (which wouldn't be accepted), or exchange it for government money (which would be accepted).

You might note that there is a tautology there, value is linked to what you can exchange a currency for minus the transaction costs. If you can't exchange a currency for anything, then the transaction costs are high, and those high transaction costs will discourage people from accepting it because the currency has low value. The reverse will also be true. This is what gives the American dollar it's high value, that as well as the ability to pay taxes with it.

Now lets compare ACoin to BCoin. ACoin is accepted at as many places as American Express. BCoin is a new currency. ACoin can be exchanged for hard currency. You have to exchange BCoin for ACoin to get to government money. Which would you use?

Will hire to create, develop, and maintain altcoin based on the current Bitcoin version. Please PM me a timeline and a quote.
I will pay for the creation of the coin, and for each new version thereafter (only to keep pace with the current Bitcoin protocol's features or any future feature requests by me).

One block every 20 minutes. Difficulty retarget every 500 blocks. Maximum block size is 500 kilobytes.

Block reward will be ten coins per block for the first 1000 blocks. After that block reward will be re-targeted every 500 blocks. The equation for the block reward will be the (difficulty/1.01316^{blocknumber/500})^.334 Each coin is divisible to the thousandth place.

The minimum transaction fee will be .5 coins.

Block header changes/additions: transactionfee_per_kb_vote (4 bytes, does nothing for now). The nonce is changed to a 64-bit number.
Goes without saying that the magic value needs to be changed. I will name the coin later. I can make any necessary icons myself.

Obviously will be open source, but you do not have to manage the open source project itself, only various coding requests by me.

How will version .9 do away with hardcoded transaction fees?

What if Bitcoin mining outpaces mining profits? What if there was overinvestment in mining?

Without nodes providing bandwidth and a modicum of CPU power, the Bitcoin network would be nothing.

Should nodes receive a fraction of the transaction fee?

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

It's currently at ~$6. It's too high. Can it be reduced to .001 Bitcoins?

It isn't people who buy to sell it in the future. That's speculation. The early adopters of a currency are those who accept it for the goods and services they sell. How would one reward the true early adopters?

How do you do that?

Bitcoin lacks a Central Bank. This is good and bad. A central bank benefits those with political connections. But Bitcoin lacks price stability, this generates menu costs, and incentivizes speculation. I propose the creation of a monetary authority for Bitcoin that sets block reward to a new mathematical formula.

The velocity of the Bitcoins that are in circulation likely approaches 100,000x per year as compared to 1x - 4x for the USD. This in itself is not bad. But given that only 10% to 20% of Bitcoins are circulating, this means that the price of Bitcoin is decided largely through speculation. In fact the price of a Bitcoin is irrelevant to those who use Bitcoins as a currency because it appears the majority of coins being used are immediately being sold and repurchased in the exchanges for the sole purpose of buying goods.

Unless Bitcoins can be used to purchase intermediate goods and have a closed economic ecosystem, Bitcoin will be too vulnerable to speculation and would not be a viable currency. But the development of a closed economic ecosystem is stymied by the uncertainty of Bitcoin prices and speculation.

Fortunately the infrastructure for transacting Bitcoin has long been established, with many major exchanges. Nearly all major exchanges announce recent prices. At the point when a block is generated, the miner will also add the exchange price of bitcoin between various other currencies and crypto-currencies to the blockchain. The exchanges that are kept track of could be hard coded into Bitcoin or the miner could choose, how this works is not something I'm personally focused on.

With every new block, the miner will compare the cumulative percentage change in the exchange price of Bitcoin over the previous 960 blocks. The standard deviation of the percentage change in exchange rates will be calculated. Outliers will be excluded, this is so that in case  x-currency suffers from hyperinflation, the x-currency will be ignored. It is extremely unlikely for all the world’s currencies to be suffering from hyperinflation caused by monetary expansion as opposed to a supply shock.

Every 960 blocks the block reward will be reevaluated. For every 5% increase in the geometric mean of Bitcoin exchange rates in relation to the world’s currencies would increase the block reward by 3%. A 5% decrease in the geometric mean of Bitcoin exchange rates will decrease the block reward by 3%. Changes in the exchange rates of less than 5% will not alter the block reward.

The minimum block reward will be one Bitcoin.

I have an altcoin request. No transaction fees, logarithmic increase in coins outputted. For every 10x increase in hashing power, the number of coins produced will double. For every successful block discovered, 1 coin will be rewarded.

The smallest denomination of coins will be in tenths. 40 second transaction times. SHA-256 encryption.
The aim is to prevent a currency that is founded solely upon speculation and excessively rewards early adopters. Furthermore, without transaction fees, this will prevent a future where only large businesses with giant ASIC farms would mine coins (like a big bank). It will also be relatively immune to attacks or incidents where a tonne of hash power is dumped onto the mining network, and suddenly withdrawn, slowing mining to a halt.

It will be named ACoin.