A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin.

[btcnijuan]

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.

[pugman]

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 . Haven't done that in a while..

your question is just Bitcoin or both Bitcoin and Altcoins?

Read the title of this thread.

[pugman]

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?

[Aveatrex]

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.

[r1s2g3]

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.

[siddartha1492]

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.

[shahzadafzal]

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.

[pugman]

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. 

[r1s2g3]

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. 

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.

[DesertOasis3]

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.

[pugman]

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.

[Crypto_Sassy]

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.

                      

 

[THHC10]

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, 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.

[DesertOasis3]

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.

[pugman]

Newb question: What is a hash? How is it generated?

[vit05]

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
wiki2
99BTC
wikiBtc

[mexite]

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.

[r1s2g3]

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.

[letsfly]

Where are we at bitcoin now ? How many left to mine and how many is in circulation?

[RivAngE]

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.