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Namecoin and the future of self-sovereign digital identity.
Namecoin's motto is "Bitcoin frees money – Namecoin frees DNS, identities, and other technologies." biolizard89 has done fantastic work on the DNS part, but let's focus on the identity use case here. Recent events have convinced me that digital identity on the internet is broken. Consider:
Twitter hack. Twitter's internal admin tool was compromised by hackers to commandeer ~130 top verified users including Biden, Obama, Buffet, Musk, Bezos, Apple, Uber, etc. to tweet out crypto scams on these users accounts.
GPT-3 is ready for release and will allow bad actors to AstroTurf and control the narrative on social networks for monetary and political gain at massive scale. Also take a peek at /SubSimulatorGPT2/ which is solely populated by GPT bots to get a taste.
ARTBreeder can create user profile images that are indistinguishable from real users.
Deepfakes can twist reality and manipulate faces and voices to turn real actors into puppets promoting false narratives.
What was true in 1993 when cartoonist Peter Steiner wrote "On the internet, nobody knows you are a dog" is still true today. The only difference is that identity is increasingly being weaponized using AI/ML so "On the internet, nobody knows you are a bot" would perhaps be more apt. I read the following comment from a user on slashdot yesterday:
For the time being, you can assume that this comment was written by a human being. You can click on my username, look back at my history of posts, and go, "OK, here's a bunch of posts, by a person, going back more than a decade, to the TIME BEFORE BOTS." That is, before the first year of 2020.
Since humans are likely to adopt the majority opinion, bad actors find real value in being able to control the narrative online by surrounding the reader with manufactured opinions by bots that due to advances in ML/AI are quickly becoming indistinguishable from real users. This amounts to a Sybil attack on the minds of digital content consumers and poses major threat to the integrity of our social fabric. Apart from the recent twitter incident used for scamming, nation states have been known to create massive bot armies of fake and hijacked user accounts to try and shift the narratives regarding the Hong Kong independence protests as well as national elections. This will only increase. Currently, our digital identity is fragmented into silo's largely controlled by government institutions and mega corporations (FAANG) based on a "Trust us" model. As recent events have proven, this is a bad model and in dire need of improvement/replacement. IMHO we need to move from "Trust us" to a "Trust but verify" model where the user is in full control of their digital identity. Namecoin can and should play an important role in building this 'web of trust composed of self-sovereign identities" as it is neutral (no owner), permissionless and secure (merge-mined). Daniel already developed a proof of concept with NameID but what can we do to take this further? Personally I'd like to see users create Namecoin identities and link them to their social identities (e.g. Google, Facebook, Twitter, Reddit, etc). Then whenever they create content, they sign it with their private keys. This would allow a reader to verify the content was created by the user. Content verification would have stopped the recent twitter hack, because even if the hackers would have access to internal admin tools they would not have the private keys that the users produce valid content with. "Not your keys, not your content" Content verification is only one part. Ideally a user would like to verify the integrity of the content creator as well. E.g. has this user passed human verification in any of the linked platforms? Does a trusted linked entity vouch for the reputation or integrity of this user (e.g. a government entity, financial entity or non-governmental organization?). This would require those platforms to allow linking of Namecoin ID with their Platform ID and allow lookup and signing of metadata provided by these platforms. (e.g. UserID Y is linked to PlatformID X and completed human verification on date Z, signed Twitter). I image users could install an extension similar to uBlock or Privacy Badger that contains human curated blacklists and heuristics that operate on Namecoin entities to perform these checks and flag or filter content and users that fail integrity checks. This would allow a users to automatically weed out potential bots and trolls but keep full control of this process themselves, avoiding potential censorship if this task would fall on the platform owners themselves (something governments are pushing for). We could take this even further and integrate Namecoin ID's in software and hardware devices as well. This could create chains of trust to verify the entire chain of content creation and manipulation to the final content posted on a social platform. Where every entity signs the resulting content. (E.g. camera -> photoshop -> twitter post) Apart from signing content/messages (PGP style). Namecoin could perhaps also be used for managing identity tokens in a users 'Identity wallet'. Looking into my physical wallet this could include things like credit cards, insurance cards, government issued IDs, membership cards, transportation cards, key cards, etc. This could be done similar to 'colored coins' on Bitcoin. But would have to support some type of smart contract functionality to be useful (e.g. expiring tokens, etc). I'm not a developer nor a technical writer, but I do think we need to think long and hard about how we can solve digital identity in a way that empowers users to trust and verify the content and identities of the peers we interact with online while also respecting privacy and preventing censorship by external parties. Namecoin could be the better path to building this web of trust, but given the current pace of AI/ML and the willingness by bad actors to weaponize it at scale against users interests we might not have much time. (Apologies for the rant!)
Recap of Chromia AMA with the CEO of Chromia, @henrik_hjelte on BithumbGlobal telegram community dated 14.04.2020.
The AMA was moderated by u/Sidonpee. Sidonpee Let’s start with the introduction question: u/henrik_hjelteCan you introduce yourself to the community? What is your background? Henrik Hjelte I’m the CEO of ChromaWay, the company that started the Chromia project. My background is 30+ years as a developer (got payed first when I was 15), then studied Business and other things (politics and philosophy). Worked as Finance and IT consultant. THen wanted to be an entrepreneur. started a “web 2.0” startup about a free-speech internet. Hired our current CTO as a developer. THen joined his colored-coins project, the first token protocol ie the start of blockchain in 2012. Sorry. I’m now 50 years old, the math didn’t add up. That is why I’m the CEO and not CFO. Sidonpee Q1. What is Chromia? Can you tell us the technology behind it and the features that makes it unique? Henrik Hjelte Chromia is a new public blockchain based on the idea of integrating traditional databases, “Relational databases” with blockchain security. In the normal world outside blockchain, there is one technology that is in 100% of all enterprises and powers almost all webpages. It build Facebook, SAP, banks, blogging platforms. It is the relational database, or SQL database. Has been used for 30+ years and is still dominant with 85% market share. Why are people using it (NoSQL has been around for 15+ years)? Because it is the best way of managing data known to mankind. Now what is blockchani? It is a way to manage data that is shared. So if you agree that blockchain is about managing data, a relational database should be an obvious technology. Chromia is a general purpose blockchain with full smart contract capabilities, just that it is a lot easier to code, even complex applications. You code with an easy to learn new programming language that combines the power of SQL and “normal languages” but makes it secure in a blockchain context. Up to 1/10 the code-lines vs other blockchains. Sidonpee Q2. I often see Chromia and ChromaWay being used interchangeably, what is the relationship between the two? Henrik Hjelte The idea for Chromia and parts of the codebase originated from the company ChromaWay. It is actually one of the first blockchain companies, we had a project for tokens before ethereum called the “colored coins” project that led to us starting a company with a name take from the greek word for color. In 2015 we did what is now called stable-coin, EURO payments based on tokens on a public blockchain (tokens on bitcoin). It was for a bank LHV in Estonia. When we need to quickly find information, we could not search the blockchain and instead started to dump everything to a relational database, and then the idea started to grow to build a blockchain around this. So we did a private blockchain, intended for usecases in land-registration, banking and more. And then came up with the idea of doing a public blockchain for it. ChromaWay is the company that ideated Chromia and provided the first open source code for it. The Chromia pre-sale of tokens is now funding the development of Chromia, which is done by ChromaWay. When Chromia is released as a decentralized network, it will not be governed or run by ChromaWay. Of course we know it has to be decentralized, we understand the virtues of decentralization since 2012 when our CTO did the worlds first code for tokens, then started an open-source project which even inspired Vitalik (who soon quit and did his own thing). ChromaWay as a company will take a role as providing optional support and maintenance of Chromia projects (open for competition by other players). Sidonpee Q3. What’s the usefulness of $CHR token in Chromia ecosystem? Henrik Hjelte CHR can be used to pay for running dapps (normally by the developer of the dapp, not users). It can also be used as a mean of exchange between dapps, and to provide collateral/stake for providers (the ones running the blockchain), incentivizing good behaviour. Sidonpee Q4. What are the major milestones Chromia has achieved so far & what are your plans for 2020? Henrik Hjelte We have released Rell, the new programming language that is needed, and supported tooling (online Development Environment, downloadable IDE, documentation). We have release the first testnet in december, and at the same time another company 4irelabs has done the first dapp running on testnet. They could take our old code (done as a private blockchain), learn our new language Rell and port it to Chromia. That project is the Green Assets Wallet, green bond environmental impact reporting, run by a non-profit and with banks and institutions as users. Plans for 2020 is to both release a series of dApps to showcase how fantastic Chromia is, as well as continue to develop the platform. And when it is secure and good enough, we will release mainnet. Dapps are now being made by us as well as others. We do a decentralized social network framework call chromunity, now release to testnet. If is really cool, users can vote over moderators, and in the future users might even govern the complete application, how it can be updated. This is a great showcase for Chromia and why we use the slogan Power to the Public. Games coming are….
Mines of Dalarnia (by Workinman Interactive). An action game in a mine with blockchain rental of plots and stuff.
Krystopia 2, novas journey. A puzzle game done by Antler Interactive.
An indie game (not done by us so I don’t know how much I shoiul;d menton), but: it is a strategy game with FULL-LOGIC ON BLOCKHCHAIN yes ubercool that is why it is in caps
A secret demo-project that we do together with Antler to showcase the technical potential of Chromia platform.
More comin in 2020: Other dapps from other companies, one in impact-tech Games is a great way to show scalability and features BTW. I didn’t mention that Chromia is very scalable (everyone says that). But it is true, and with no tradeoff vs decentralization well, but I can also see enterprise projects going into more of public blockchain direction and hybrid, and there I think Chromia can really shine Sidonpee Q5. Revenue and adoption are the main points of all projects, can you tell us your Business model and how you generate revenue? Henrik Hjelte Chromia itself is a public network with no intrinsic business model, but participants in the network has. For example Providers make money from supplying quality hardware running dapps and the core software, dapp developers have individual business models. I already told about about ChromaWay/Chromia, but ChromaWay the company can provide support/maintenance and various services and add-ons for Chromia. It is very similar to how normal open-source vendors make money. Still up to competition from others, and without control over the Chromia network. We need it to be independent, otherwise it has no value. So it is sound business to have it decentralized as well, who would care otherwise? Sidonpee Q6. Regarding Chromia’s blockchain game (Minesofdalarnia), I’m quite sure that vast majority of game lovers would be anticipating for it release, could you please share with us the likely date it will be released? Henrik Hjelte Yes I can We have made very good progress recently, and I can happily share that MoD is planned to be released now in Q2. Anastasia Meanwhile you can check the Mines of Dalarnia Social Media page for recent updates on the game https://twitter.com/Chromia_Studios . We publish development updates there often. You can also sign-up for early access on https://www.minesofdalarnia.com 😉 Sidonpee Q7. Recently Chromia welcome Malcolm Lerider who was formally a Senior R&D Manager for Neo Blockchain as its new team and family member. When he was with Neo, he worked together with the community and was able to build the project from a top 50-something market cap project to a top 5 market cap project. Should we be expecting a replica of this at Chromia in the nearest future? Henrik Hjelte Yes. we are very excited to have Malcolm on-board, he is very knowledgeable in the area, and his expertise will definitely help with achieving that. Malcolm recently published an article where he introduced himself as a new member of Chromia. You can read it over here, if you haven’t already: https://medium.com/@MalcolmLeridei-am-joining-team-chromia-b25d527b5b6f Sidonpee Q8. Green Asset Wallet is absolutely an amazing starter in the Chromia blockchain! I would like to hear how you guys see the future business development possibilities in the next /6/12 months? Are there specific business areas, geographical locations, which you want to focus on most? Henrik Hjelte Thank you, yes, it is nice to have a project that is enterprise, and green too as the first one. We are working both to reach out but also support inbound requests for projects, I shared some above. Sometimes with business development, ChromaWAy might find a customeprospect but we don’t know where it will end. We think however, and Gartner too, that enterprise blockchain is gradually looking more at public blockchain projects. I think DeFI, tokenization of assets and things like that is interesting. Also, hopefully someone will be inspired by our solution to a free, open, user-governed decentralized social web, what we are now showing with Chromunity. Jack Dorsey, are you listening? We don’t have a particular geographical focus though, and really it is a generic platform use-case agnostic. We use games to show potential and scalability, but who knows maybe other applications will be more. It is not only up to us. Sidonpee Q9. Who are Chromia’s strategic investors and partners? What criteria/ process do you follow in evaluating your partnership deal with them? Henrik Hjelte We have some strategic investors and partners that have helped us during the way, I think maybe I should not mention them here with the risk of forgetting some of them, and I have no time to check if we should mention them, We (and the partner) look at how we can help each other on a case by case basis. There is no simple scorecard that we can follow. We try to avoid vanity partnership deals with no real meaning Sidonpee Q10. Why did Chromia develop a new language called Rell (Relational language) for dapp programming? Is the development of this new language really necessary? If yes, what are some of its unique features that cannot be found in other existing languages/environments? Henrik Hjelte Yes it was necessary. We need the features of relational alegbra. It is is a mathematical basis, very similar to logic, that has only had basically one implementation (SQL). But SQL was not secure enough and lacked features that can be used in a shared context like a blockchain. Everything needs to be secure. Also we wanted to add blockchain features, and make it look more like “normal programming”. Now some of the readers might ask? Can’t you do this on the EVM? No. Ethereum does simply not have anything similar to a relational database, and it would be technically infeasible. Some others may ask? How can you compete with the EVM /pet-project that have soo many developers etc…? My answer is : we are building on top of a virtual machine called Postgresql. Check how much time, optimization and money has been spent on that virtual machine… I think it is 20 years or more of development time, maybe more. Static typing is one feature we add that SQL doesn’t have (you can detect bugs at compile time) Yusuf What have been the major obstacle Chromia has faced in the past years while developing its idea? Whats the benefits for developers at Chromia? Why should we use Chromia instead of your competitors? Henrik Hjelte Obstacle: Technology/software developement is hard sometimes, difficult to predict when things are ready. Major benefits for developers: A LOT EASIER to code COMPLEX applications. I’m serious. If you are frustrated with blockchain development, take a look at the ease of use of Rell/Chromia LA LA DeFi is projected to buzz up in 2020 and is on everybody lips, what ROLES does Chromia play in the innovativeness and future of DeFi and how does it spearhead adoption of DeFi using blockchain solution? Henrik Hjelte Finance would be almost unthinkable without relational databases, the power core banking and more. An exchange is a table of bid and ask, and you match them. This is very easy to do with our tech. Sujit If any Dapp is created on Chromia Blockchain! Then is there any Gas fees charged by Chromia? Whats the concept of fees for Dapps on Chromia Blockchain? Henrik Hjelte No gas per user fee. The application pays for hosting, like a cloud. Normally the developer, unless the developer hands over the governenace of the application to someone else (maybe the users). Sujit If any Dapp is created on Chromia Blockchain! Then are there any Gas fees charged by Chromia? Whats the concept of fees for Dapps on Chromia Blockchain? Henrik Hjelte No gas per user fee. The application pays for hosting, like a cloud. Normally the developer, unless the developer hands over the governenace of the application to someone else (maybe the users). Mayowa Most blockchain projects have donated to COVID-19, but no news from Chromia. How will you contribute to fight COVID-19? Henrik Hjelte I had to answr this: I spent my free weekend time on a covid-19 hackathon the other week to do a solution to share medical equipment across countries. It is on our facebook I think u/anastasiazudina maybe you can share Anastasia We want to do our part for the ongoing covid19 crisis. Therefore, we were participating in the critical initiative HackTheCrisis. During the virtual hackathon, we tried to find good solutions for the new unique challenges that we now as a society are facing. https://www.facebook.com/chromaway/posts/2171037456376083 Mayowa Chromia creates a new lightweight programming language called RELL. How is this different and better for programmers than other popular language like Solidity, C++ and Java? Henrik Hjelte When you think about a large Java project done for say a bank. Ask the developers what OTHER thing they use? DO they ONLY use Java and store files on a server? Or do they also use a database. You will find that in 99.9% of cases they ALSO use a relational database. No one would EVER think about doing a solution to manage data with ONLY Java, C++ or whatever. Alejandro Urich For the development of the Dapps, do you only support Rell? Is it possible to program in another language that works with Chromia? Henrik Hjelte Because we require both relational database properties and more security than SQL, currently Rell is the only choice. It is really easy to learn, and in all cases if we allowed a “normal” language it would miss the feautures of relational databases. zafer metin Mr Henrik What are the advantages of Postchain used for Chromia? How is a consortium provided to database management with distributed control? Anastasia Thank you for your interest in Postchain uses! We have an article written what answers exactly those questions: https://blog.chromia.com/postchain-for-the-public-scaling-relational-blockchain/ Stay At Home As I know providers will be chosen by Chromaway, so how is it decentralized due to choice is totally in Chromaway? Henrik Hjelte Initial providers. We will migrate to a model where ChromaWAy has no more say than anyone else. But we need to bootstrap and start. Better to choose good initial providers. David Prince What is your long-term vision about the industry which Chromia is working at? Are you afraid someday there will be another Project with more innovative technology can replace Chromia? Henrik Hjelte Well. Blockchain is about managing data (in a shared context). I’m repeating myself but the market leading (85%) for 30+ years slution to manage data is a relational database. We are now the only relational database + blockchain. Who knows, maybe some better way to manage data will be invented? But even NoSQL who has been around and bark like a little dog has after a decade or more time only 15% market share. I think our tech will stand the mark of time. Sidonpee The AMA session with the Chronia team has finally come to an end. We’re greatly astonished having a well-articulated AMA session with Chronia’s CEO Henrik Hjelte u/henrik_hjelte and community/social media manager team Anastasia u/anastasiazudina in the community👨💻👌 Also, we are indeed overwhelmed by all our esteemed community members, for your support and enthusiasm for the project. For more information and to be part of the project, you may join the Chronia’s community here via: https://t.me/hellochromia Telegram (https://t.me/hellochromia)Chromia — Official English Group The official Chromia community group by ChromaWay. Where dapps thrive!
Let’s take a lucky guess that you’re here today because you’ve heard a lot about cryptocurrencies and you want to get involved, right? If you’re a community person, Dogecoin mining might be the perfect start for you! Bitcoin was the first in 2009, and now there are hundreds of cryptocurrencies. These new coins (that operate on their own native blockchain) are called altcoins or alternative coins. One popular altcoin is Dogecoin. It can be bought, sold and traded, just like Bitcoin. It can also be mined! So, what is Dogecoin mining? You’ll know what hardware and what software you need to get started. You’ll also know whether or not Dogecoin mining is for you! So, where would you like to start? The beginning? Great choice. Let’s have a quick look at how Dogecoin got started. A (Very) Short History of Dogecoin In 2013, an Australian named Jackson Palmer and an American named Billy Markus became friends. They became friends because they both liked cryptocurrencies. However, they also thought the whole thing was getting too serious so they decided to create their own. Palmer and Markus wanted their coin to be more fun and more friendly than other crypto coins. They wanted people who wouldn’t normally care about crypto to get involved. They decided to use a popular meme as their mascot — a Shiba Inu dog. https://preview.redd.it/rymnyyz1iil31.png?width=303&format=png&auto=webp&s=f138e3fe56eef9c6b0e7f49b84fefc41fb83e5aa Dogecoin was launched on December 6th, 2013. Since then it has become popular because it’s playful and good-natured. Just like its mascot! Dogecoin has become well-known for its use in charitable acts and online tipping. In 2014, $50,000 worth of Dogecoin was donated to the Jamaican Bobsled Team so they could go to the Olympics. Dogecoin has also been used to build wells in Kenya. Isn’t that awesome! Users of social platforms – like Reddit – can use Dogecoin to tip or reward each other for posting good content. Dogecoin has the 27th largest market cap of any cryptocurrency. Note: A market cap (or market capitalization) is the total value of all coins on the market. So, Dogecoin is a popular altcoin, known for being fun, friendly and kind. It’s a coin with a dog on it! You love it already, don’t you? Next, I want to talk about how mining works… What is Mining? To understand mining, you first need to understand how cryptocurrencies work. Cryptocurrencies are peer-to-peer digital currencies. This means that they allow money to be transferred from one person to another without using a bank. Every cryptocurrency transaction is recorded on a huge digital database called a blockchain. The database is stored across thousands of computers called nodes. Nodes put together groups of new transactions and add them to the blockchain. These groups are called blocks. Each block of transactions has to be checked by all the nodes on the network before being added to the blockchain. If nodes didn’t check transactions, people could pretend that they have more money than they really do (I know I would!). Confirming transactions (mining) requires a lot of computer power and electricity so it’s quite expensive. Blockchains don’t have paid employees like banks, so they offer a reward to users who confirm transactions. The reward for confirming new transactions is new cryptocurrency. The process of being rewarded with new currency for confirming transactions is what we call “mining”! https://preview.redd.it/rcut2jx3iil31.png?width=598&format=png&auto=webp&s=8d78d41c764f4fe4e6386da4f40a66556a873b87 It is called mining because it’s a bit like digging for gold or diamonds. Instead of digging with a shovel for gold, you’re digging with your computer for crypto coins! Each cryptocurrency has its own blockchain. Different ways of mining new currency are used by different coins where different rewards are offered. So, how do you mine Dogecoin? What’s special about Dogecoin mining? Let’s see… What is Dogecoin Mining? Dogecoin mining is the process of being rewarded with new Dogecoin for checking transactions on the Dogecoin blockchain. Simple, right? Well no, it’s not quite that simple, nothing ever is! Mining Dogecoin is like a lottery. To play the lottery you have to do some work. Well, actually your computer (or node) has to do some work! This work involves the confirming and checking of transactions which I talked about in the last section. Lots of computers work on the same block of transactions at the same time but the only one can win the reward of new coins. The one that earns the new coins is the node that adds the new block of transactions to the old block of transactions. This is completed using complex mathematical equations. The node that solves the mathematical problem first wins! It can then attach the newly confirmed block of transactions to the rest of the blockchain. Most cryptocurrency mining happens this way. However, Dogecoin mining differs from other coins in several important areas. These areas are;
Algorithm: Each cryptocurrency has a set of rules for mining new currency. These rules are called a mining or hashing algorithm.
Block Time: This is the average length of time it takes for a new block of transactions to be checked and added to the blockchain.
Difficulty: This is a number that represents how hard it is to mine each new block of currency. You can use the difficulty number to work out how likely you are to win the mining lottery. Mining difficulty can go up or down depending on how many miners there are. The difficulty is also adjusted by the coin’s protocol to make sure that the block time stays the same.
Reward: This is the amount of new currency that is awarded to the miner of each new block.
Now, let’s compare how DogeCoin mining works compared to Litecoin and Bitcoin… Mining Comparison Bitcoin uses SHA-256 to guide the mining of new currency and the other two use Scrypt. This is an important difference because Scrypt mining needs a lot less power and is a lot quicker than SHA-256. This makes mining easier for miners with less powerful computers. Fans of Litecoin and Dogecoin think that they are fairer than Bitcoin because more people can mine them. Note: In 2014, Litecoin and Dogecoin merged mining. This means they made it possible to mine both coins in the same process. Dogecoin mining is now linked with Litecoin mining. It’s like two different football teams playing home games in the same stadium! Mining Dogecoin is a lot faster than mining Litecoin or Bitcoin. The block reward is much higher too! Don’t get too excited though (sorry!). Dogecoin is still worth a lot less than Bitcoin and Litecoin. A reward of ten thousand Dogecoin is worth less than thirty US Dollars. A reward of 12.5 Bitcoin is currently worth 86,391.63 US Dollars! However, it’s not as bad as it sounds. Dogecoin mining difficulty is more than one million times less than Bitcoin mining difficulty. This means you are much more likely to win the block reward when you mine Dogecoin. Now I’ve told you about what Dogecoin mining is and how it works, would you like to give it a try? Let’s see what you need to do to become a Dogecoin miner… How to Mine Dogecoin There are two ways to mine Dogecoin, solo (by yourself) or in a Dogecoin mining pool. Note: A Dogecoin pool is a group of users who share their computing power to increase the odds of winning the race to confirm transactions. When one of the nodes in a pool confirms a transaction, it divides the reward between the users of the pool equally. Dogecoin Mining: Solo vs Pool When you mine as a part of a Dogecoin pool, you have to pay fees. Also, when the pool mines a block you will only receive a small portion of the total reward. However, pools mine blocks much more often than solo miners. So, your chance of earning a reward (even though it is shared) is increased. This can provide you with a steady new supply of Dogecoin. If you choose to mine solo then you risk waiting a long time to confirm a transaction because there is a lot of competition. It could be weeks or even months before you mine your first block! However, when you do win, the whole reward will be yours. You won’t have to share it or pay any fees. As a beginner, I would recommend joining a Dogecoin pool. This way you won’t have to wait as long to mine your first block of new currency. You’ll also feel like you’re part of the community and that’s what Dogecoin is all about! What You Need To Start Mining Dogecoin Before you start Dogecoin mining, you’ll need a few basics. They are;
A PC with either Windows, OS X or Linux operating system.
An internet connection
A Shiba Inu puppy (just kidding!)
You’ll also need somewhere to keep the Dogecoin you mine. Go to Dogecoin’s homepage and download a wallet. Note: A wallet is like an email account. It has a public address for sending/receiving Dogecoin and a private key to access them. Your private keys are like your email’s password. Private keys are very important and need to be kept completely secure. There are two different types; a light wallet and a full wallet. To mine Dogecoin, you’ll need the full wallet. It’s called Dogecoin Core. Now that you’ve got a wallet, you need some software and hardware. Dogecoin Mining Hardware You can mine Dogecoin with;
Your PC’s CPU: The CPU in your PC is probably powerful enough to mine Dogecoin. However, it is not recommended. Mining can cause less powerful computers to overheat which causes damage.
A GPU: GPUs (or graphics cards) are used to improve computer graphics but they can also be used to mine Dogecoin. There are plenty of GPUs to choose from but here are a few to get you started;SAPPHIRE Pulse Radeon RX 580 ($426.98)Nvidia GeForce GTX ($579.99)ASUS RX Vega 64 ($944.90)
A Scrypt ASIC Miner: This is a piece of hardware designed to do one job only. Scrypt ASIC miners are programmed to mine scrypt based currencies like Litecoin and Dogecoin. ASIC miners are very powerful. They are also very expensive, very loud and can get very hot! Here’s a few for you to check out;Innosilicon A2 Terminator ($760)Bitmain Antminer L3 ($1,649)BW L21 Scrypt Miner ($7,700)
Dogecoin Mining Software Whether you’re mining with an ASIC, a GPU or a CPU, you’ll need some software to go with it. You should try to use the software that works best with the hardware you’re using. Here’s a short list of the best free software for each choice of mining hardware;
CPU: If you just want to give mining a quick try, using your computer’s CPU will work fine. The only software I would recommend for mining using a CPU only is CPU miner which you can download for free here.
GPU: If you mine with a GPU there are more software options. Here are a few to check out;CudaMiner– Works best with Nvidia products.CGminer– Works with most GPU hardware.EasyMiner– User-friendly, so it’s good for beginners.
Scrypt ASIC miner:MultiMiner– Great for mining scrypt based currencies like Litecoin and Dogecoin. It can also be used to mine SHA-256 currencies like Bitcoin.CGminer and EasyMiner can also be used with ASIC miners.
Recommendations You’re a beginner, so keep it simple! When you first start mining Dogecoin I would recommend using a GPU like the Radeon RX 580 with EasyMiner software. Then I would recommend joining a Dogecoin mining pool. The best pools to join are multi-currency pools like Multipool or AikaPool. If you want to mine Dogecoin but don’t want to invest in all the tech, there is one other option… Dogecoin Cloud Mining Cloud mining is mining without mining! Put simply, you rent computer power from a huge data center for a monthly or yearly fee. The Dogecoin is mined at the center and then your share is sent to you. All you need to cloud mine Dogecoin is a Dogecoin wallet. Then choose a cloud mining pool to join. Eobot, Nice Hash and Genesis Mining all offer Scrypt-based cloud mining for a monthly fee. There are pros and cons to Dogecoin cloud mining; The Pros
It’s cheaper than setting up your own mining operation. There’s also no hot, noisy hardware lying around the house!
As a beginner, there isn’t a lot of technical stuff to think about.
You get a steady supply of new currency every month.
Cloud mining pools don’t share much information about themselves and how they work. It can be hard to work out if a cloud mining contract is a good value for money.
You are only renting computer power. If the price of Dogecoin goes down, you will still have to pay the same amount for something that is worthless.
Dogecoin pools have fixed contracts. The world of crypto can change very quickly. You could be stuck with an unprofitable contract for two years!
It’s no fun letting someone else do the mining for you!
Now you know about all the different ways to mine Dogecoin we can ask the big question, can you make tons of money mining Dogecoin? So, Is Dogecoin Mining Profitable? The short answer is, not really. Dogecoin mining is not going to make you a crypto billionaire overnight. One Dogecoin is worth 0.002777 US Dollars. If you choose to mine Dogecoin solo, it will be difficult to make a profit. You will probably spend more money on electricity and hardware than you will make from Dogecoin mining. Even if you choose a Dogecoin pool or a cloud pool your profits will be small. However, if you think I am telling you to not mine Dogecoin, then you’re WRONG! Of course, I think you should mine Dogecoin! But why? Seriously… Well, you should mine Dogecoin because it’s fun and you want to be a part of the Dogecoin family. Cryptocurrency is going to change the world and you want to be part of that change, right? Mining Dogecoin is a great way to get involved. Dogecoin is the coin that puts a smile on people’s faces. By mining Dogecoin you’ll be supporting all the good work its community does. You’ll learn about mining from the friendliest gang in crypto. And who knows? In a few years, the Dogecoin you mine now could be worth thousands or even millions! In 2010, Bitcoin was worthless. Think about that! Only you can choose whether to mine Dogecoin or not. You now know everything you need to know to make your choice. The future is here. So, what are you going to do?
SegWit would make it HARDER FOR YOU TO PROVE YOU OWN YOUR BITCOINS. SegWit deletes the "chain of (cryptographic) signatures" - like MERS (Mortgage Electronic Registration Systems) deleted the "chain of (legal) title" for Mortgage-Backed Securities (MBS) in the foreclosure fraud / robo-signing fiasco
SegWit is a "clever innovation" brought to you by clueless / corrupt AXA-owned Blockstream devs;
MERS is a "clever innovation" brought to you by reckless / corrupt Wall Street bankers;
SegWit and MERS both work by simply deleting crucial "ownership data" for transactions.
Of course, the "experts" (on Wall Street, and at AXA-owned Blockstream) present MERS and SegWit as "innovations" - as a way to "optimize" and "streamline" vast chains of transactions reflecting ownership and transfer of valuable items (ie, real-estate mortgages, and bitcoins). But, unfortunately, the "brilliant bat-shit insane approach" devised by the "geniuses" behind MERS and SegWit to do this is to simply delete the data which proved ownership and transfer of these items - information which is essential for legal purposes (in the case of mortgages), or security purposes (in the case of bitcoins).
SegWit allows deleting the "chain of (cryptographic) signatures" for bitcoins - ie, SegWit supports deleting the cryptographic data specifying "who transmitted what bitcoins to whom" (as originally specified in Satoshi's whitepaper defining Bitcoin);
MERS (Mortgage Electronic Registration Systems) allowed deleting the "chain of (legal) title" for real-estate mortgages - ie, MERS supported deleting the legal "notes" specifying "who transmitted what mortgages to whom" (as previously tracked by banks / mortgage lenders / originators / notaries / land registries / "cadasters", etc.)
So, the most pernicious aspect of SegWit may be that it encourages deleting all of Bitcoin's cryptographic security data - destroying the "chain of signatures" which (according to the white paper) are what define what a "bitcoin" actually is. Wow, deleting signatures with SegWit sounds bad. Can I avoid SegWit? Yes you can. To guarantee the long-term cryptographic, legal and financial security of your bitcoins:
You should avoid sending / receiving / holding Bitcoins using the dangerous, new "SegWit" addresses. (As far as I understand, "SegWit" bitcoin addresses all start with a "3".)
You should just use safe, "normal" Bitcoin addresses - and avoid using unsafe "SegWit" addresses. (If I understand correctly, all "normal" Bitcoin addresses still start with a "1", while "SegWit" addresses always start with a "3".)
You can also use Bitcoin implementations which encourage using "normal" Bitcoin addresses. (As far as I understand, implementations such as Bitcoin ABC, Bitcoin Unlimited, Bitcoin Classic are being deployed mainly to support "normal", "non-SegWit" Bitcoin addresses - as well as market-based (bigger) blocksizes and (lower) fees.)
You can avoid Bitcoin implementations which require SegWit. (As far as I understand, SegWit2x, UASF/BIP148 are being deployed mainly to support "SegWit" Bitcoin addresses - as well as centrally-planned (smaller) blocksizes and (higher) fees).
MERS = "The dog ate your mortgage's chain of title". SegWit = "The dog ate your bitcoin's chain of signatures."
By deleting / losing the "chain of title" for mortgages stored in the MERS database (in the name of "innovation" and "efficiency" and "optimization" being pushed by "clever" bankers on Wall Street), MERS caused a legal and financial catastrophe for mortgages - by making it impossible to (legally) prove who owns which properties.
By deleting / losing the "chain of signatures" for Bitcoins stored in SegWit addresses (in the name of "innovation" and "efficiency" and "optimization" being pushed by "clever" devs at AXA-owned Blockstream), SegWit could end up causing a financial (and possibly also legal) catastrophe for Bitcoin - by making it impossible (or at least more complicated in many cases) to (cryptographically) prove who owns which bitcoins.
Wall Street-backed MERS = AXA-backed SegWit It is probably no coincidence that:
Clueless, corrupt bankers from Wall Street used MERS to recklessly delete the "chain of (legal) title" for people's mortgages;
And now clueless, corrupt devs from AXA-owned Blockstream want to recklessly use SegWit to delete the "chain of (cryptographic) signatures" for people's bitcoins.
by supporting the most ignorant developers and "leaders" (lying Blockstream CTO Greg Maxwell and CEO Adam Back, drooling authoritarian idiot Luke-Jr, vandal Peter Todd, etc);
by supporting a massive campaign of propaganda, censorship, and lies (on forums like r\bitcoin and sites like bitcointalk.org - both controlled by the corrupt censor u/Theymos) to try to force SegWit on the Bitcoin community.
Do any Core / Blockstream devs and supporters know about MERS - and recognize its dangerous parallels with SegWit? It would be interesting to hear from some of the "prominent" Core / Blockstream devs and supporters listed below to find out if they are aware of the dangerous similarities between SegWit and MERS:
Luke-Jr u/luke-jr - co-founder of and occasional contractor for Blockstream, in charge of Core's "BIP" numbering process, known for his [delusions] and authoritarianism - and for the messy SegWit-as-a-soft-fork kludge - now leading the brainwashed lemmings and sybils of r\bitcoin off the cliff, with his doomed UASF/BIP148;
Core / Blockstream devs might not know about MERS - but AXAdefinitely does While it is likely that most or all Core / Blockstream devs do not know about the MERS fiasco... ...it is 100% certain that people at AXA (the main owners of Blockstream) do know about MERS. This is because the global financial crisis which started in 2008 was caused by:
CDOs - collateralized debt obligations
MBSs - mortgage-backed securities
MERS - the company / database Mortgage Electronic Registration Systems which "lost" (deleted) millions of people's mortgage notes - leading to "clouded titles" which made possible the wave of foreclosure fraud and robo-signing, which eventually cost the "clever" banks tens of billions of dollars in losses.
Loans originated with MERS as the original mortgagee purport to separate the borrower’s promissory note, which is made payable to the originating lender, from the borrower’s conveyance of a mortgage, which purportedly is granted to MERS. If this separation is legally incorrect - as every state supreme court looking at the issue has agreed - then the security agreements do not name an actual mortgagee or beneficiary. The mortgage industry, however, has premised its proxy recording strategy on this separation, despite the U.S. Supreme Court’s holding that “the note and mortgage are inseparable.” [Compare with the language from Satoshi's whitepaper: "We define an electronic coin as a chain of digital signatures."] If today’s courts take the Carpenter decision at its word, then what do we make of a document purporting to create a mortgage entirely independent of an obligation to pay? If the Supreme Court is right that a “mortgage can have no separate existence” from a promissory note, then a security agreement that purports to grant a mortgage independent of the promissory note attempts to convey something that cannot exist. [...] Many courts have held that a document attempting to convey an interest in realty fails to convey that interest if the document does not name an eligible grantee. Courts around the country have long held that “there must be, in every grant, a grantor, a grantee and a thing granted, and a deed wanting in either essential is absolutely void.”
The parallels between MERS and SegWit are obvious and inescapable.
MERS separated (and eventually deleted) the legal information regarding the "conveyance" (transfer) of ownership of "realty" (real estate)
SegWit segregates (and allows eventually deleting) the cryptographic information regarding the sending and receiving of bitcoins.
Note that I am not arguing here that SegWit could be vulnerable to attacks from a strictly legal perspective. (Although that may be possible to.) I am simply arguing that SegWit, because it encourages deleting the (cryptographic) signature data which defines "bitcoins", could eventually be vulnerable to attacks from a cryptographic perspective. But I heard that SegWit is safe and tested! Yeah, we've heard a lot of lies from Blockstream, for years - and meanwhile, they've only succeeded in destroying Bitcoin's market cap, due to unnecessarily high fees and unnecessarily slow transactions. Now, in response to those legal-based criticisms of SegWit in the article from nChain, several so-called "Bitcoin legal experts" have tried to rebut that those arguments from nChain were somehow "flawed". But if you read the rebuttals of these "Bitcoin legal experts", they sound a lot like the clueless "experts" who were cheerleading MERS for its "efficiency" - and who ended up costing tens billions of dollars in losses when the "chain of title" for mortgages held in the MERS database became "clouded" after all the crucial "ownership data" got deleted in the name of "efficiency" and "optimization". In their attempt to rebut the article by nChain, these so-called "Bitcoin legal experts" use soothing language like "optimization" and "pragmatic" to try to lull you into believing that deleting the "chain of (cryptographic) signatures" for your bitcoins will be just as safe as deleting the "chain of (legal) notes" for mortgages: http://www.coindesk.com/bitcoin-legal-experts-nchain-segwit-criticisms-flawed/ The (unsigned!) article on CoinDesk attempting to rebut Nguyen's article on nChain starts by stating:
Nguyen's criticisms fly in the face of what has emerged as broad support for the network optimization, which has been largely embraced by the network's developers, miners and startups as a pragmatic step forward.
Then it goes on to quote "Bitcoin legal experts" who claim that using SegWit to delete Bitcoin's cryptographic signatures will be just fine:
Marco Santori, a fintech lawyer who leads the blockchain tech team at Cooley LLP, for example, took issue with what he argued was the confused framing of the allegation. Santori told CoinDesk:
"It took the concept of what is a legal contract, and took the position that if you have a blockchain signature it has something to do with a legal contract."
Stephen Palley, counsel at Washington, DC, law firm Anderson Kill, remarked similarly that the argument perhaps put too much weight on the idea that the "signatures" involved in executing transactions on the bitcoin blockchain were or should be equivalent to signatures used in digital documents.
"It elides the distinction between signature and witness data and a digital signature, and they're two different things," Palley said.
"There are other ways to cryptographically prove a transaction is correctly signed other than having a full node," said BitGo engineer Jameson Lopp. "The assumption that if a transaction is in the blockchain, it's probably valid, is a fairly good guarantee." Legal experts asserted that, because of this design, it's possible to prove that the transaction occurred between parties, even if those involved did not store signatures. For this reason, Coin Center director Jerry Brito argued that nChain is overstating the issues that would arise from the absence of this data. "If you have one-time proof that you have the bitcoin, if you don't have it and I have it, logically it was signed over to me. As long as somebody in the world keeps the signature data and it's accessible, it's fine," he said.
There are several things you can notice here:
These so-called "Bitcoin legal experts" are downplaying the importance of signatures in Bitcoin - just like the "experts" behind MERS downplayed the importance of "notes" for mortgages.
Satoshi said that a bitcoin is a "chain of digital signatures" - but these "Bitcoin legal experts" are now blithely asserting that we can simply throw the "chain of digital signatures" in the trash - and we can be "fairly" certain that everything will "probably" be ok.
The "MERS = SegWit" argument which I'm making is not based on interpreting Bitcoin signatures in any legal sense (although some arguments could be made along those lines).
Instead, I'm just arguing that any "ownership database" which deletes its "ownership data" (whether it's MERS or SegWit) is doomed to end in disaster - whether that segregated-and-eventually-deleted "ownership data" is based on law (with MERS), or cryptography (with SegWit).
Who's right - Satoshi or the new "Bitcoin experts"? You can make up your own mind. Personally, I will never send / receive / store large sums of money using any "SegWit" bitcoin addresses. This, is not because of any legal considerations - but simply because I want the full security of "the chain of (cryptographic) signatures" - which, according to the whitepaper, is the very definition of what a bitcoin "is". Here are the words of Satoshi, from the whitepaper, regarding the "chain of digital signatures": https://www.bitcoin.com/bitcoin.pdf
We define an electronic coin as a chain of digital signatures. Each owner transfers the coin to the next by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. A payee can verify the signatures to verify the chain of ownership.
Does that "chain of digital signatures" sound like something you'd want to throw in the trash??
The "clever devs" from AXA-owned Blockstream (and a handful of so-called "Bitcoin legal experts) say "Trust us, it is safe to delete the chain of signatures proving ownership and transfer of bitcoins". They're pushing "SegWit" - the most radical change in the history of Bitcoin. As I have repeatedly discussed, SegWit weakens Bitcoin's security model.
The people who support Satoshi's original Bitcoin (and clients which continue to implement it: Bitcoin ABC, Bitcoin Unlimited, Bitcoin, Bitcoin Classic - all supporting "Bitcoin Cash" - ie "Bitcoin" without SegWit) say "Trust no one. You should never delete the chain of signatures proving ownership and transfer of your bitcoins."
We define an electronic coin as a chain of digital signatures.
So, according to Satoshi, a "chain of digital signatures" is the very definition of what a bitcoin is.
Meanwhile according to some ignorant / corrupt devs from AXA-owned Blockstream (and a handful of "Bitcoin legal experts") now suddenly it's "probably" "fairly" safe to just throw Satoshi's "chain of digital signatures" in the trash - all in the name of "innovation" and "efficiency" and "optimization" - because they're so very clever.
Who do you think is right? Finally, here's another blatant lie from SegWit supporters (and small-block supporters) Let's consider this other important quote from Satoshi's whitepaper above:
A payee can verify the signatures to verify the chain of ownership.
Remember, this is what "small blockers" have always been insisting for years. They've constantly been saying that "blocks need to be 1 MB!!1 Waah!1!" - even though several years ago the Cornell study showed that blocks could already be 4 MB, with existing hardware and bandwidth. But small-blockers have always insisted that everyone should store the entire blockchain - so they can verify their own transactions. But hey, wait a minute! Now they turn around and try to get you to use SegWit - which allows deleting the very data which insisted that you should download and save locally to verify your own transactions! So, once again, this exposes the so-called "arguments" of small-blocks supporters as being fake arguments and lies:
On the one hand, they (falsely) claim that small blocks are necessary in order for everyone to be run "full nodes" because (they claim) that's the only way people can personally verify all their own transactions. By the way, there are already several errors here with what they're saying:
Actually "full nodes" is a misnomer (Blockstream propaganda). The correct terminology is "full wallets", because only miners are actually "nodes".
Actually 1 MB "max blocksize" is not necessary for this. The Cornell study showed that we could easily be using 4 MB or 8 MB blocks by now - since, as everyone knows, the average size of most web pages is already over 2 MB, and everyone routinely downloads 2 MB web pages in a matter of seconds, so in 10 minutes you could download - and upload - a lot more than just 2 MB. But whatever.
On the other hand, they support SegWit - and the purpose of SegWit is to allow people to delete the "signature data".
This conflicts with their argument the everyone should personally verify all their own transactions. For example, above, Coin Center director Jerry Brito was saying: "As long as somebody in the world keeps the signature data and it's accessible, it's fine."
So which is it? For years, the "small blockers" told us we needed to all be able to personally verify everything on our own node. And now SegWit supporters are telling us: "Naah - you can just rely on someone else's node."
Plus, while the transactions are still being sent around on the wire, the "signature data" is still there - it's just "segregated" - so you're not getting any savings on bandwidth anyways - you'd only get the savings if you delete the "signature data" from storage.
Storage is cheap and plentiful, it's never been the "bottleneck" in the system. Bandwidth is the main bottleneck - and SegWit doesn't help that at all, because it still transmits all the data.
Conclusion So if you're confused by all the arguments from small-blockers and SegWitters, there's a good reason: their "arguments" are total bullshit and lies. They're attempting to contradict and destroy:
Satoshi's original design of Bitcoin as a "chain of digital signatures":
"We define an electronic coin as a chain of digital signatures. Each owner transfers the coin to the next by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. A payee can verify the signatures to verify the chain of ownership."
Satoshi's plan for scaling Bitcoin by simply increasing the goddamn blocksize:
Satoshi Nakamoto, October 04, 2010, 07:48:40 PM "It can be phased in, like: if (blocknumber > 115000) maxblocksize = largerlimit / It can start being in versions way ahead, so by the time it reaches that block number and goes into effect, the older versions that don't have it are already obsolete."
The the notorious mortgage database MERS, pushed by clueless and corrupt Wall Street bankers, deleted the "chain of (legal) title" which had been essential to show who conveyed what mortgages to whom - leading to "clouded titles", foreclosure fraud, and robo-signing.
The notorious SegWit soft fork / kludge, pushed by clueless and corrupt AXA-owned Blockstream devs, allows deleting the "chain of (cryptographic) signatures" which is essential to show who sent how many bitcoins to whom - which could lead to a catastrophe for people who foolishly use SegWit addresses (which can be avoided: unsafe "SegWit" bitcoin addresses start with a "3" - while safe, "normal" Bitcoin addresses start with a "1").
Stay safe and protect your bitcoin investment: Avoid SegWit transactions.
[See the comments from me directly below for links to several articles on MERS, foreclosure fraud, robo-signing, "clouded title", etc.]
ECOCRYPTO ECOCRYPTO FOR GREEN CRYPTOCURRENCY MINING FUTURE OF CRYPTOCURRENCY DEPENDS ON ECOLOGICAL MINING "CRYPTOCURRENCY DEPENDS ON ECOLOGICAL MINING" Donate BTC to support awareness enquiry: 1EaSG3WmY5fRXedhy9tbbJK3tGftKp4sAZ Sourcece: https://cryptobriefing.com/green-crypto-mining-38bn-future/ · Home · Analysis · Green Crypto Mining Will Define The Industry’s $38bn Future Chones / Shutterstock & CB ANALYSIS
Green Crypto Mining Will Define The Industry’s $38bn Future
Energy usage will drop by design thanks to these critical industry developments.
📷By Nick Hall On Aug 10, 2018 1,779 1 In March this year, the sky officially fell in for Bitcoin miners. With the slump in prices and the extraordinary energy consumption it takes to mine the coins, Fortune revealed that mining a Bitcoin cost as much as buying one. Green crypto mining wasn’t even on the radar for most people until earlier this year. That was back in March and they were the good times. Morgan Stanley revealed in April that Bitcoin miners would lose money if Bitcoin slipped below $8,600, even with low electricity figures factored in. A recent study by Coinshare showed that the numbers attributed to the Bitcoin mining industry have been grossly exaggerated and the energy consumption is approximately 50% of the claimed 70TWh. But the numbers are still too high in terms of the financial outlay and the environmental impact of mining cryptocurrency. Mining doesn’t begin and end with Bitcoin – and although the consensus is (mostly) set in stone, the way we create the energy needed to extract the next part of the puzzle isn’t. Which is why green crypto mining is the ONLY solution to the diminishing returns issue: more cost, for less reward, will eventually lead to an abandonment of the mine, just as it did for gold miners in California in 1848-49. We’re not looking for one single solution either. We need four separate ones:
A lighter consensus algorithm
Cloud-based cryptocurrency mining.
Renewable, cheaper energy sources to support physical ‘mines’.
Brutal consolidation in the mining industry.
What is cryptocurrency mining?
The Proof-of-Work (PoW) protocol was popularized by shadowy Bitcoin founder Satoshi Nakamoto, building on earlier work by a variety of computer scientists including Hal Finney, and it’s a two-stage process to validate transactions and keep a flow of Bitcoins entering the market. Blocks of data are parsed off and, with Bitcoin, they contain about 1MB. Each block is then locked and coded. Miners then compete to solve the puzzle and provide the 64-digit hexadecimal key code that it then has to match with a corresponding ‘nonce’, numbers used only once, to claim the reward for unlocking the block and mine Bitcoins. There’s a small fee for validating the transactions, but the Bitcoin miners are really like the old gold miners and they’re after the big paydays.
Why is Bitcoin mining expensive?
In the old days, Bitcoin mining was easy. Back in 2009, a standard desktop computer could mine up to 200 Bitcoin a day. But speed is everything and Bitcoin mining turned into an arms race as Bitcoin soared and the well-funded miners went to war. Companies like Bitmain, Bitfury and Vogogo spotted a gap in the market and brought professionalism to the Bitcoin mining industry. The Wild West days fell by the wayside and suddenly a standard computer chip would take 98 years to mine one coin, as the super fast rigs of the new breed simply stomped the casual miner into the dust. The cryptocurrency mining industry even caused the great computer graphics card drought of 2017-2018 as demand for GPUs literally outstripped supply. Used cards were even selling above sticker price and the shelves in-store were stripped bare, but the big guns were already spending tens of millions of dollars to put these home brew operations out of business. These aren’t computers anymore, they are mission control centers and the power it takes to keep them running is a serious issue for the company’s bottom line and the environmental lobby. So the industry is looking for a number of different green crypto mining solutions, that will gel together in some haphazard way to form the future of the cryptocurrency market. The main obstacles are:
1. A greener algorithm
It may be hard to visualize the blockchain itself, but we don’t need to. Technology almost always gets lighter, smaller and slimmer. The same needs to happen to block production. Blockchain is middleware and it needs to be slimmed down, without sacrificing security or functionality. That’s an ongoing evolutionary process, as it was with smartphones, and the blockchain we’re using in 20 years will likely have little in common with today’s code. Proof-of-Stake consensus algorithms have been pitched as one way of reducing crypto’s carbon footprint. Instead of competing for block rewards, producers would take turns, weighted by the size of their stake in the network. Staking is unlikely to catch on in the Bitcoin community, but it has many supporters with Ethereum as well as other cryptocurrencies.. That would make the whole validation process more efficient and cheap.
2. Cloud-based cryptocurrency mining
There are mining firms that are still investing millions of dollars in physical equipment and taking on all the sunk costs, when the Cloud is simply taking over the world of advanced computing. Cloud-based cryptocurrency mining companies are already selling packages to the general public and the Cloud offers increased security, speed and essentially a small slice of the world’s computing power, rather than the machines you buy, install and power up. It also potentially offers AI integration that could leave the traditional cryptocurrency miners hopelessly panning for gold in a dead river. The Cloud has made self-driving cars and robots a reality. It can certainly ramp up the speed of calculations and leave even a multi-million dollar mining rig trailing in its wake. The switch to Cloud-based mining is good news for the environment, too, as the power demands would move to localities with the cheapest energy. Without these wild spikes in energy consumption and without these concentrated mines, the main complaints about the industry will simply cease to be an issue.
3. Renewable, cheap energy for grand-scale mines
Cloud-based cryptocurrency mining looks like the obvious solution, but it’s the final cost that determines the methodology when it comes to crypto mining and there is more than one way to do this. Technically, the likes of Elon Musk could turn the arid sub-Saharan scrubland into the biggest and most prosperous cryptocurrency mine in the world with a vast array of solar panels and Tesla PowerPack batteries to keep it running through the night. Cheap land and free energy means that hardware would be the only major cost to consider in this instance. Alternatively, a State-sponsored mining firm in a smaller nation could easily co-opt hydroelectric or solar providers to work with them to reduce energy costs. Even the ones that use grid power can select the world’s cheapest nations and bulk buy energy in blocks. Potentially, then, we could still have the grand-scale mines that bring economy of scale and environmentally-friendly energy production to the world of cryptocurrency mining.
4. Brutal consolidation
It does not matter how the industry develops, or if Cloud computing or giant mines are the future, the days of the home cryptocurrency miner are numbered. Just like the mom and pop mines of the goldrush days gave way to corporate giants with drilling and excavation machinery that made the old pick and shovel look slightly ridiculous, the same will happen in cryptocurrency mining. Competition will continue to grow, the margins will likely drop even further and the flagrant energy use of today’s cryptocurrency miners simply won’t be an option. Miners that don’t streamline their operations and adopt some form of green crypto mining process will simply run at a loss until they go out of business. Bil Tai is the Chairman of Hul 8, the North American arm of Bitfury Group and one of the biggest suppliers of cryptocurrency mining equipment of the world. Even he expects just 5-10 giant mining companies to survive the impending cull. “It’s totally different this year,” he told Bloomberg. “The bitcoin mining industry was this mysterious, dark, cottage industry. It’s about to grow up and scale institutionally.” There’s a dark side to these tech giants emerging, as they will technically have the power to exert an influence on a coin’s value, not just its creation. That is a problem the industry will have to examine at some point. This simple danger, though, is not enough to turn back the tide of progress. So, we can expect to see a handful of mining companies dominate the industry as they make the best use of the available technology.
Conclusion: Green Crypto Mining Isn’t An Option: It’s The Only Option
One way or another, the environmental issues that dog the cryptocurrency mining industry are set to disappear. It will be the free market that drives down that energy usage, rather than regulations and sanctions. The days of the home crypto miner are simply coming to an end, though, as the industry matures and large companies descend and fight for dominance in what could become a $38 billion a year industry by 2025. That comes with its own set of tradeoffs, especially for philosophical hardliners. Like it or not, a leaner, greener cryptocurrency mining process is just around the corner, and big business is going to create it. ECOCRYPTO FOR GREEN CRYPTOCURRENCY MINING FUTURE OF CRYPTOCURRENCY DEPENDS ON ECOLOGICAL MINING "CRYPTOCURRENCY DEPENDS ON ECOLOGICAL MINING" Donate BTC to support awareness enquiry: 1EaSG3WmY5fRXedhy9tbbJK3tGftKp4sAZ
Focus on the vision for Bitcoin, not just its price.
Preamble The purpose of this post is not to discourage enthusiasm over the recent appreciation of Bitcoin. Everyone here is excited, and rightly so. I’ve put this together because I think people are getting a bit caught up in price mania and losing sight of the bigger picture. The ideas I’ve pulled together here are pretty condensed as it is, so unfortunately I have no TLDR. I don't claim to have a prophecy to share, or concrete answers to questions about where Bitcoin will go in the future -- nobody does. But that doesn't mean there's nothing to talk about. I would suggest reading slowly and giving your imagination time to picture or "render" things. There is no other way to grasp Bitcoin. Final preamble: I know there are people in this sub who are here just for the gains -- they freely admit it, and they laugh at how "true believers" will be left holding the bag when they sell. My hope is that those of you who feel this way will have an open mind. You might see things in a new light, who knows? Here we go… The Medium is the Message In the 1960s, a Canadian professor named Marshall McLuhan became widely known for his thorough analysis of the evolution of communication technologies. His central precept was that communication technologies have dramatic effects on populations regardless of the content they carry at any particular moment. The radio, for example, allowed private microphones to broadcast to widely distributed speakers, which enabled the amplification of private viewpoints on a public scale. This had profound effects on society that played out regardless of what particular messages were carried over particular radio frequencies at particular times. McLuhan’s famous aphorism, “The Medium is the Message,” is a distillation of this precept. In point form: 1) each new communication technology changes the environment into which it is introduced; and 2) the net effect of a technology over time is both far more interesting and harder to discern than the effect of any particular use of that technology or phase of its development. In other words, it is harder to see the forest for the trees, but seeing the forest is everything. So: what effect will Bitcoin have on the world over the long run? What is the meaning of Bitcoin? The Roman Model To understand where we might be going, we have to first understand how we got to where we are. In the West, our societies are founded on the Classical traditions which were seeded in Ancient Greece and “scaled” so to speak in Ancient Rome. McLuhan had a lot to say about this from a technological point of view: The development of writing on lightweight media such as papyrus and parchment enabled the externalization of knowledge. Thus, the oral traditions of Ancient Greece were subsumed and replaced by written traditions which were far less lossy and could be refined over time. Writing on lightweight media also enabled the centralized control of vast resources over large distances, which would have been impossible using engraved stone or oral communication. This was perfected by the Romans and thrown into overdrive by Johannes Gutenberg's invention of the printing press around 1450. In its abstract form, the Roman model takes the form of bureaucracy – hierarchical organization -- and this model has underpinned the structuring of society in the West for the past two thousand years. Look up "org chart" on Google Images if you can't picture one. Our societies are comprised of org charts within org charts within org charts -- try the following searches on Google Images: military org chart, bank org chart, government org chart, university org chart. Everything in our society is centralized, bureaucratized, and nested within the context of the nation state which is run by a central bureaucracy called the government, itself divided into departments within departments, orgs within orgs. This is not to say that humans didn't organize hierarchically before ancient Rome -- of course they did, as do apes, dogs, chickens, etc. However, in a social hierarchy such as a tribe, there is a scale limit (Dunbar's number, 150) because each member must know his place and his role as well as the places and roles of all other members. The hierarchy lives inside its members' minds and looks more like a swarm than an org chart. Bitcoin is, of course, this type of network, where each node has full knowledge of the state of the network and participates in it voluntarily. Bureaucracy, on the other hand, is based on the writing down of roles (job descriptions) and makes people interchangeable. There is no limit to scale as long as you map everything out carefully (management). The lifeblood of bureaucracy is the transmission of written forms of information (paper-pushing) from the center to the periphery along defined, linear routes. Each node receives its orders, performs its specialized role, delegates if the role requires it, and then awaits new orders. Privilege and planning are concentrated near the center -- as is risk. These structures are inherently fragile and collapsible. If you undermine a high-value node as happened in the collapse of Lehman Brothers, the whole edifice collapses. The entire global financial system barely withstood the collapse of a single American bank - it is that fragile. Each nation's banking system is likewise a matrix of bureaucracies operating as a single, hierarchical supply chain whose product (the national currency) flows outward from a central node (the central bank) through successively less privileged nodes (investment and commercial banks) down to the level of branches and ATMs. At each level of the banking system, additional product is created and loaned out (credit/debt) using the productfrom the level above as a stake (fractional reserve lending). The banking systems are insulated from competition by governments through the decree that taxes must be paid in national currencies. And to keep the currencies moving, everyone is raised from birth to want more and then given the appearance of more through the creation of more by fiat, meaning by arbitrary decree, without any necessary connection to the creation of new wealth. This is inflation: the steady creation of new money to repay debt and keep the show going. It is a Ponzi scheme by design, and it relies the continued "buying-in" of young people in order to survive. Each national currency has value and utility only by decree and only within that nation's cell in the global mosaic. To move value from one nation to the next requires snaking it through tenuous international pathways, paying entrenched gatekeepers, and exchanging one national currency for another. You have to be somebody to access the banking system. The more somebody you are, the more access you get. It is principally through control of economic access that strong nations bully weaker ones, rich people bully poorer ones. There is tremendous pent up tension in our world as a result. This is where we are. The Center Cannot Hold McLuhan predicted that the advent of the electronic age and the emergence of global communication networks would lead to the dissolution of these centralized, bureaucratic structures from the bottom up. He died before the spread of the Internet but described the end result with crystal clarity in his writings. His vision of an interconnected world, which he called the "Global Village," is here now. Every person has the ability to broadcast information to others in their networks over the Internet. If a transmission is perceived as having sufficient value, the receiving people pass it on, and so on. Above a certain threshold of significance, transmissions are repeated by all people to all other people: this is virality and there is nothing that institutions can do to harness or stop it. The Arab Spring for example brought down an array of national governments in a span of months. Like a rising tide, global communication networks are bringing about an inevitable dissolution of the Roman model all around us: the music industry was upended by Napster; newspapers are being displaced by twitter and blogs; radio stations are being displaced by podcasts; broadcasters are being displaced by Netflix and YouTube; brick-and-mortar stores are being displaced by Amazon and eBay; AirBnb is gobbling up rental supply; traditional transportation services are being displaced by Uber; and now decentralized currencies are coming after centralized ones. Quoting W.B. Yates: “Things fall apart; the center cannot hold; Mere anarchy is loosed upon the world.” It is important to realize that even though the post-Dot-Com networks like Facebook and eBay were more effective than their institutional predecessors, they are still quite fragile since they are centralized. They can be hacked, compromised, back-doored, subpoenaed, or otherwise shut down. In contrast, a truly decentralized network is perfectly flat and impossible to shut down. The music industry could kill Napster by going after Sean Parker, but it cannot touch BitTorrent. True decentralization, at scale, is one of the principal reasons why Bitcoin is secure: whatever it becomes, it cannot be stopped because there is no center to hold, and nothing to attack. At this point, I think it makes sense to explain how Bitcoin works, and why it has value. If those questions can't be answered clearly, there's no basis for thinking Bitcoin will disrupt traditional banking. I do, however, think there are very good answers to those questions which I'll try to present below. Bitcoin and Blockchain Imagine you live in a pre-historic tribe of ten people. As a group, you need to find a way to keep track of who did what work, and in what quantity. In other words, you need an abstract “work unit” that can be traded for work and held for use in future exchanges. You could use shiny rocks or something else similarly rare, but people would still be able to cheat the system: why do actual work if you can simply go on a hunt in the forest and find new rocks? One solution is to create a ledger or list that keeps track of how many rocks each person has. If the ledger is the authority on who has what, people would not be able to inflate their balances by introducing new rocks or other work units from outside the system. The problem is, everyone has to trust the keeper of the ledger. If only one entity maintains the ledger, they ultimately control how much money everyone has (banks). Decentralization is the solution to this problem. You can write down ten copies of the ledger and distribute a copy to each person in the tribe. At the end of the day, everyone could cross-check the transactions that took place with everyone else and a consensus could be formed about who has what without appealing to a central authority. Eventually, the people might realize that the rocks themselves are unnecessary, and that it is actually the ledger that is important. The rocks, like all currencies, are meant to track work. If a ledger is already doing that, the rocks themselves become extraneous. The actual units of currency are the work units on the ledger. And if everyone agrees to use the same ledger, its work units have value. The blockchain is that ledger and Bitcoin is its work unit. Proof of Work In the illustration above we can see that the utility of a blockchain is that it enables distributed peers to prove to each other that they have done work, and to trade their work units freely without appealing to a trusted intermediary. The obvious next question is: what proof do we have that we can trust the Bitcoin blockchain? Bitcoin mining is based on a Proof of Work consensus mechanism. To put this as simply as I can, each and every mining node on the network is competing against the rest of the network to generate a small piece of data that proves it has performed an enormous number of computer operations using a batch of new, valid transactions as an input. The amount of work that it takes to successfully mine Bitcoin is dictated by how much computer power has voluntarily joined the mining network - and this is adjusted dynamically as miners enter and leave the network. Each operation requires a tiny bit of electricity since a computer must perform it, so as the difficulty of the Proof of Work operation scales, so too does the cost of generating it. As of writing, the Bitcoin network is collectively performing about 8,250,000,000,000,000,000 operations per second, and it takes an average of about ten minutes worth of this grind for a single node on the network to successfully produce an acceptable proof of work and add a block of transactions to the blockchain. The winning node is awarded new Bitcoin by including a transaction in its block that credits its own wallet -- now we understand mining. So you want to be a Bitcoin miner? Let's say you have a powerful gaming computer that can perform about 100,000 Bitcoin computer operations per second (a realistic amount by the way). It would have roughly a 1 in 82.5 quintillion chance of mining a block if you were to enter it into the mining race today. If you had a stack of 1000 of these gaming computers your odds of mining a block would improve to roughly 1 in 82.5 quadrillion. A million of them? 1 in 82.5 billion. Etc. Miners use specialize hardware to perform the computer operations, but the point still stands: it takes a staggering amount of computer power and thus a staggering amount of electricity to "get a word in" on the Bitcoin blockchain. But let's say you get lucky and are able to generate a proof of work. That proof of work will be tied inexorably to whatever batch of transactions you are trying to add to the blockchain since those transactions were part of the input of the computer operation. Your transactions must be valid or else the rest of the network would reject your work. You wouldn’t be able to double-spend, create Bitcoin by fiat, or spend from balances that you don’t have the keys for. The network would reject your block. The larger and more distributed the mining network is, the more cost-prohibitive it is to compromise it. In other words: the more people you have checking the ledger from different nations and backgrounds, the harder it is to override the distributed, international consensus. And that is why the Bitcoin blockchain can be trusted. It is audited by the largest computer network ever assembled and requires that an attacker control at least 51% of the network on a sustained basis. The Open Blockchain As more and more people use a blockchain, its units (e.g. Bitcoin) become more valuable. As the price of the base unit increases, it becomes more profitable to mine them at the prevailing level of difficulty, so more miners join the network. As more miners join the network, the level of difficulty increases and thus the robustness and security of the network increases. As the robustness of the network increases, it becomes more secure against attackers, so more users and investors are drawn to it. And so the price of the base unit increases. Which draws in more miners. Etc. The adoption of a blockchain, like the adoption of any currency, is a virtuous circle -- one that Bitcoin has been nurturing successfully for nine years without any existential catastrophes. Bitcoin's heartbeat, the mining of a new block every ten minutes, has not skipped a single beat in nine years. There has not been a successful double-spend in nine years. There has not been a single accounting error in nine years. No balance has been mysteriously wiped off the blockchain in nine years. This track record has been established despite the fact that the blockchain is not protected by a firewall, or an institution, or shielded in a vault. It is not buried underground, or protected by obfuscation. It is out there in the wild of cyberspace for all to see and attack, secured purely by Proof of Work and sheer scale. Bitcoin itself is valuable because it is the only work unit that can be included in a block of this particular, special blockchain: the open, global, transnational, borderless, censorship-resistant, permissionless, leaderless, most well-known, longest-running, and most-well-capitalized blockchain (credit to andreasma for this and many other insights). Because work units on this blockchain are scarce (per the 21-million cap), having the ability to sign for transfers of Bitcoin on the blockchain is a form of real control over scarce resources. This is the pivotal point: to the degree that people around the world adopt and learn to trust the Bitcoin blockchain, its work units will have value. And it is Bitcoin's openness in particular that makes it the prime candidate for filling this role. Any computer on the planet can join the mining swarm at any time, just as anyone can join the network as a user, at any time, from any location. Even the Bitcoin development community is open-source and open to new developers provided they can prove their merits. This is what is meant by The Open Blockchain: the Bitcoin blockchain is accessible everywhere and is open to anyone. It is welcoming. It enables people from different cells in the global mosaic to transact point-to-point, without snaking value through complicated interbank networks, without paying entrenched gatekeepers and intermediaries, and without having to convert from one currency to the next. If a country experiences a currency crisis, Bitcoin is a very real option because it enables people to transfer value out of hot spots and convert it into other currencies. The international monetary system is no match for this technology. Private blockchains are no match either. Bitcoin’s Monetary Policy Bitcoin is commonly referred to as "digital gold" since it is designed to function like a precious metal. The creation of new units follows something like the extraction curve of a natural resource. The issuance of new coins was steep at first but will taper off over time through successive “halvings” of the reward that miners receive for creating new blocks. Eventually, the issuance of new coins will approach an asymptotic limit of 21 million coins. At each "halving", the rate of inflation is effectively cut in half, though it decreases ever so slightly with each new block. The current rate of inflation is about 4%. At the next halving in 2020, the inflation rate will be about 2%. In 2024, 1%. Etc. The world has never before had access to a truly deflationary asset. Even currencies considered deflationary such as the Japanese Yen are not truly deflationary: the government can print an infinite amount even though deflation in Japan has inertia. Gold is not deflationary: new gold is mined every year. Bitcoin will eventually become truly deflationary, meaning the supply of available Bitcoins will contract year over year consistently. How is this possible, if there is no provision to destroy coins in the protocol? There is guaranteed to be a year sometime in the future where more coins are lost due to people losing their keys than new coins are created. It will happen. As the miner reward decreases, years like this will become more common. In the distant future, decades will go by where every year is deflationary, and eventually it will be practically impossible for the supply of Bitcoin to not decrease in a given year. Here is Bitcoin’s golden proposition: because it the first truly deflationary asset, it does not require interest payments or a never-ending influx of greater fools in order to provide a “yield” over the very long run. In the distant future, Bitcoin will have a low but predictable intrinsic expected return approximating its rate of deflation, as long as it remains secure. When you combine Bitcoin's monetary policy with its robustness through distributed Proof of Work on a planetary scale, you end up with the basis for a global reserve asset more effective than anything else humans have ever had a chance to work with, including gold. Gold is modestly inflationary, it cannot be transmitted over a network, and it must be centrally secured and accounted for. Bitcoin has already obsolesced gold as a reserve technology, let alone Ponzi currencies like the dollar - most just don't know it yet. As people come to really understand Bitcoin’s monetary policy, they will flock to it as a safe haven, especially in troubled economies. If we have another 2008, Bitcoin will be very much in play. Bitcoin as Money People argue that Bitcoin's deflationary policy, high fees, and volatility make it ineffective as a medium of exchange. If you can expect a Bitcoin to be more valuable next year, why spend it this year? If it costs $20 in fees to buy a $3 coffee, who will use or accept it? If its value can double in a day, who will set prices in terms of Bitcoin exclusively? The truth is, Bitcoin is not yet ready for mass adoption as a day to day currency or unit of account. Anyone who tells you otherwise is getting ahead of the technology -- but this is temporary. Just as the early Internet could only handle the transfer of simple text-based content but eventually scaled to allow everyone to stream 4k at the same time, so too Bitcoin will scale. The Lightning Network shows promise in this regard. It will enable and incentivize users to stake their Bitcoin on a second layer where payments are negotiated in a trustless manner between parties, instantly, and merely settled periodically on the blockchain. But even with today’s block congestion and high fees, Bitcoin is already cheaper and more efficient for large transfers of value than the banking system, especially internationally. People transfer hundreds of millions of dollars on the blockchain, securely, today. Regarding volatility, we are still in the very early phases of adoption. Something like 10-20 million people own Bitcoin worldwide. Because the supply of Bitcoin cannot inflate to accommodate increased adoption, prices will continue to escalate in logarithmic fits and starts as adoption ramps up exponentially. Look up "adoption curve" on Google. We are still in the very early phases of the ramp-up, but eventually the curve will taper off and approach something like stability. We do not know how this will play out or how long it will take, and there will be serious volatility along the way; but if Bitcoin scales into a robust transnational currency trading on thousands or tens of thousands of exchanges worldwide, it will likely become more stable than most national currencies if not all. Regarding deflation: over time, we will likely see new innovative uses of Bitcoin as a reserve for credit creation. People are clearly willing to operate in systems that use reserve-based lending, and they can work wonderfully: look at what humans accomplished in the 20th century! It is conceivable that Bitcoin could be used as a reserve for distributed, trustless, bank-like networks that issue their own tokens. We may end up using a modestly-inflationary cryptocurrency for day-to-day transactions and investment. There’s no way to know what people will come up with, but they will come up with things. And that is why Bitcoin must stay laser-focused on its role as the de facto reserve currency in the crypto-economy. A Vision Statement for Bitcoin Tying everything together: over the course of thousands of years, we have built our societies around the use of hierarchical principles of organization. These structures centralize control and privilege, but also risk. They are fragile. Too big to fail. The invention and proliferation of the Internet paved the way for the dissolution of these structures, and over the past twenty years we have seen countless examples of entrenched institutions being wiped out by flatter, more effective networks. Now we are seeing the early evolution of global, distributed, cryptographic value storage and transfer networks which will slowly displace traditional banking systems by offering faster, cheaper, more reliable routes, with better systemic risk profiles, infinitely better security, no access controls, and no entrenched monopolistic privileges over money creation. Bitcoin was the first mover in this space and remains the incumbent. It is a global, secure, consensus-based currency that was bootstrapped from the ground up by ordinary people volunteering to participate in its development, mining, and use. It has grown exponentially in size since its inception, to the point where it is now upheld by the largest dedicated computer network in the world. Because it is secured principally by its unmatched scale, it is therefore the most secure accounting system in the world, which in turn makes the entries in its ledger the most trustworthy on the planet. If you can sign for a Bitcoin in the network’s eyes, you own it -- and nobody can stop you from owning it or signing for it. Bitcoin is here, now. It is in the air all around us, accessible over wifi and cellular networks around the globe -- anywhere the Internet touches. The next time you walk down the street, look at the people around you. As they move through the air, displacing it with their bodies, recognize that they are literally wading through the Bitcoin network -- they just don't know it yet. Suggestions for New People 1) Focus first and foremost on the vision and take an interest in the technology. I have a friend who is talking about putting $20k into Bitcoin, yet only a few nights ago he didn't know that Bitcoin isn't a company, or that a block isn't a single transaction. I have another friend who owns a whole Bitcoin but has never initiated a transaction. A co-worker of mine just bought $100 worth of Bitcoin but doesn't know that a wallet is key management software. 2) Bitcoin is an experiment with no precedent. Nobody knows if it will survive, what it will evolve into, or how it will be used. Even with its long-running track record, nobody can say with prophetic certainty that it won't suffer a catastrophic failure of some kind, so put only as much money into Bitcoin as you can afford to lose. I would offer the following as a good rule of thumb: if you have a negative net worth (meaning your debts exceed your assets) be very cautious with Bitcoin, and at the very least do not increase your debt to buy Bitcoin. If you have a positive net worth, do not go negative to buy Bitcoin. Having said all this, do keep in mind that any currency can suffer a catastrophic failure, including the US Dollar. Remember 2008. Don’t fall for illusions of security. We are all sailing in little boats on a big sea. Diversify. 3) If you believe in Bitcoin, try not to obsess over the value of Bitcoin in fiat terms, as tempting as it is. Try to conceptualize its value on the basis of its potential utility in emerging decentralized networks and look for ways to use it in these new emerging ecosystems. Look up OpenBazaar for example - it could be the new eBay without an eBay acting as an intermediary. I strongly believe that owning Bitcoin is exciting because it sets you up to have a stake in this emerging ecosystem. If your aim is to eventually get your value out of Bitcoin in the form of fiat, you’ll be giving up that stake. If you don't care about having a stake and are here just for the gains, that's perfectly fine too. 4) Learn how to take possession of your private keys. If you don't know what that means or how to do it, learn what it means and how to do it. Until you can say with confidence "I alone own my private keys", you do not actually own Bitcoin and you do not have a stake. Someone else owns it for you. It took me two years of owning Bitcoin before I actually clued in and took control of my own, and that is what forced me to take on the Bitcoin learning curve. The good news is, you can too. (Edit: formatting)
Thoughts on the current state of Bitcoin from someone who participates in much of the ecosystem [and tipping thread ;) ]
Hey guys, So this is something I've been looking at for a while now, and kind of seeing some things die and other things be born. Some things are getting easier, and other things getting more difficult. I want to take this time to outline the last few months and how my sentiment is reflected towards the market. I have to say, the market generally matches how my "emotions" playout towards the ecosystem as a whole. I'll outline just a few short things on both the bearish and the bullish sides of my sentiment, even if things don't effect the overall sentiment much (at least according to most traders and people) I'd like to point them out because I view them as notable. Some of the not so good things that have been happening:
Home Mining/Trading/Altcoins: Not too long ago mining was still fun for the home miner with nothing but a GPU. I'm talking a mere couple months. The altcoin section of bitcointalk is/was by far the most active. People didn't care if the coins were in fact pump and dumps or not, but people would bet on their horses and either flourish (like some of my friends did with Mazacoin) or, if got in at the wrong time, was utterly decimated. Darkcoin was a small revival of that hype, but now the market caps of these altcoins and "pump and dump" coins, have all been figured out by the community, and too many of us have been burned to support any alt coin much anymore. I still hold some, but I often ask myself why I even bother? I left 1 BTC worth of alts in cryptsy months ago, and now its a a mere fraction of that, as you could imagine. This sounds like a good thing, but those same months ago, I had a couple friends mining with GPU's and figuring the whole crypto world out. Now they maybe have $100 worth of bitcoins for shits, but they are most certainly not going to go out and buy any Antminer S3's or other similar relatively cheap miner. Gamer nerds are quite simply, priced out now for the most part.
Gambling World: The gambling world (up until a couple days ago, but I'll get to that later) didn't have much development or innovation, and user growth was probably (after the Just-Dice incident in particular) in a negative spiral. It seems that if you've followed the BTC gambling scene for a while, you've seen sites come and go (much like altcoins), and for those of us that don't check the forums and reddit everyday, a lot of consumers or newbies could have been burned hard by some of this.
"Good news" brings the price down: This seems to be counter-intuitive to most, but to some of us bitcoiners who trade/forecast/follow the markets a little closer, and not only that, are familiar with trading other assets as well, definitely get skid-dish of this apparent ecosystem flourishing without a quickly growing community to back it up. (Sure our reddit subscriber count is going through the roof, but how about our active users? You look at the trading volume, transaction volume, or real user growth etc. it just seems like it isn't growing that fast (But this isn't that bad, and there are things all of us can do to help that, I'll get to that below, DON'T WORRY, this isn't a whiney, complainy bear thread).
Waning enthusiasm for the broader ecosystem: It seems people are almost numb to all the good news, and the bad news just sends us into a panic. Granted, the amount of bad news since Gox/China has been pretty damn minuscule other than bigger ecosystem and development problems. The amount of sites I involve myself in the cryptosphere has been cut into a fifth or less of what I used to do. Think coindesk, The bitcoingroup talks (which seem to have dropped off a bit in popularity, no offense but it was a little corny, but I still liked it <3), I still listen to Lets Talk Bitcoin, but probably not as much as I used to, and I think a lot of the die hard bitcoiners feel similar. I mean, in a given morning it could be: 2-3 altcoin pools/sites/subreddits, cryptsy, coindesk,reddit, bitcointalk forum, ischinaawake.com, btc-e for trollbox hilarity, and many others. Now? Probably this subreddit, and the mining section of bitcointalk. I rarely check the price anymore, maybe once a day, but I'm never hoping for moon, I just want stability while we all work to get out our products and projects and things that we feel could make a difference, not only in the bitcoin world, but the rest of it too. There was an IRC channel where people would talk about cryptostalks and all the next ones and this that and the other, now I wonder if anyone even actually uses that site for anything anymore. Maybe people were scared off by regulation and Fincen? Who knows....
Anyway, in many respects it feels like a lot of the bitcoin ecosystem is dying, and maybe we should all panic, cry, and shit our pants, but a few things haven't been going badly, and in fact, I'm looking optimistic that the next time a surge of new users enters the market for whatever reason, there will be a much more developed and kind ecosystem to take part of. No one is going to be touting the next 5 second confirmation coin, no more of the ubiquitous "investment" opportunities that await the uninitiated. Other than my love for bitcoin in general, this is what makes me not panic sell, and what keeps me optimistic about the bitcoin future:
The Local community has returned to where I live, in a big way: Bitcoin meetups were getting mixed turnouts, so much so that the two organizers just decided to stop having them altogether. I felt slightly guilty of this, because it was a lot of different kinds of folks coming for a lot of different kind of reasons, which is totally fine, but there never was a comfortable intermingling of all involved. Not everyone became friends after, and many of the first timers weren't hellbent on coming to the next one. However, we just had our last bitcoin meetup and there was over FIFTY people there. This was insane. Not only that, a member from the bitcoin foundation, several local startups, and businesses were there giving presentations. I got shithammered drunk and even exchanged a number while I was there. And get this, I was sitting at a table with two girls? And spoiler alert: They weren't the only two girls there. Woah. This is the bitcoin future!
Merchant adoption: is at a rabid dog pace, and Bitpay, Coinbase, and others are doing amazing. Most yC startups could only dream of getting this far. It seems to never end, and although people don't care as much, its still awesome. Like, I felt there was more hype when Jimmy Wales talked about accepting BTC, than when he actually did, granted its a weird not obvious way to donate, BUT, we are almost desensitized to merchant adoption now because its so rampant. Newegg, Dell, 5200 businesses on coinmap (ok, I lied earlier, I still totally check coinmap). But yeah, Merchant acceptance all day long. Oh, and Lyft on Gyft.... mmm life savingly awesome!
Remittances is becoming a reality: All the time we are seeing services targeting Mexico, Argentina, The Philippines and other countries trying to get things done over there just a little cheaper than Western Union. Granted some are a little more built out than others, but 37coins, and other services similar really excite me, and hold a lot of promise for an application bitcoin can really accel at. Everyone remembers Andreas Antonopoulos planting that seed in our heads a while back, and business sees it too. It's happening, but this shit doesn't happen overnight, however, we have our work cut out for us. We still have a "chicken and egg problem" when it comes to user adoption. Thats where we, the bitcoin community, needs to step in.
Some of the Dark parts of the eco-system are alive and well again: OpenBazaar (its coming), SR2, yeah its still a thing... PD3, came out over the weekend, PvPing with faucet money, was a fun time killer just to see how things are going... Nothing I want to focus on too heavily, but we all know Gambling is a great app for bitcoin, and we (the community) pioneered provably fair gambling. The best part is, the people in the space know who is honest and uses it.
Mining isn't yet extinct for the home miner and the hashrate is GROWING: I know I said that it kinda is above, but I am an at home miner with some S3's scattered about. I do fine, and am well on my way to ROI. I watch the hashrate grow everyday, and that tells me that bullish sentiment sure as hell exists on the long term. I mean, if you are willing to invest in specialized hardware to the tune of millions of dollars, you are in it for the long haul. This market is too illiquid to "cash out" of for the bigger players, so we know they are all hodling. A lot of the ASIC manufacturers are hodling as well, including Bitmain. So maybe the price is taking a dive, but the hashrate hasn't seen negative growth in a LONG LONG time Jan '13 it seems.
User Growth IS Happening: 2 million Blockchain wallets anyone? New wallets and services coming out all the time. Kryptokit, Hive, Mycelium trader, etc. etc. Maybe it isn't happening as fast as we would like, but it is happening. But this isn't like pokemon, you can't just see it on the TV and start catching your bitcoin. For the uninitiated, this shit is CONFUSING. We need to help out. And we need to casually give bitcoin, tipping in other sub-reddits as opposed to gold, helping friends get setup. Just YESTERDAY, someone asked me about coinbase and how to buy it, and I set them up with coinbase, told them about 2FA, and gave them the tools they need to fish. The past couple weeks I've actually gotten a couple people into bitcoin, which is the first time in a couple months, so for whatever reason, interest seems to be picking up again, which is cool.
Current Equipment: 1 x Old laptop: 750 GB HD 8 GB RAM i-5 Quad-core GeForce GT 630m GPU 1 x Raspberry Pi ~7 x super old computers with floppy disk drives and that sort of stuff (probably useless) Desired Equipment Absolutely no idea. I really need to research this. I browser /homelab and I'm like 'what's the thingy with tonnes of ports for if they only need 4 of them', so I'm super new at this area. Desired Features (To work towards) Kubernetes Cluster I'm hoping to run a (custom?) Kubernetes cluster at home - for practice and fun. I work as a software engineer and our stuff is all on a Kubernetes cluster, but I mostly do programming, with only small bits of my own DevOps here and there, so I'm pretty rubbish at Kubernetes at the minute. This project should bring me up to speed. AI Experiments I'm super into artificial intelligence / machine learning, and I've dabbled in all sorts of areas (data mining with the Weka API - KNN / J48 (C4.5) | Home grown (variational) autoencoders with Tensorflow and Caffe | Image producing GANs etc.) and I'd like to do more, only with several projects I've had to leave it running for days in a row, or spend money on an AWS instance to get it running there. So ideally I'll use a super basic old laptop / raspberry pi combination to get my homelab started, then branch out and migrate to better hardware once I figure out what to get, and then when I have some good specs behind me I'll be able to run some machine learning projects on it all. Even with limited processing power, training a classifier could be left to do its thing for a week rather than running on my main laptop all night long. Bitcoin Mining? I'm not too fussed about this one, but I was thinking - if I'm going to sort out a homelab, and it'll be doing its thing, I probably won't have all of its capacity maxed out at any one time, so would it be worthwhile finding a way of making it do bitcoin mining with 'spare resources'? No idea how easy / feasible this is, just a thought. Super Awesome Dashboard Stuff I like a good dashboard. Current Status I wiped my old laptop, put Ubunutu server edition on it, got half way through setting it up so I can SSH into it from my main laptop, and then stopped to figure out what a Hypervisor was and whether I need to re-think everything based on that. My Questions
Does anyone here have experience running Kubernetes on a homelab? If so what challenges / useful resources / any info at all can you share?
Do my projects sound feasible / suitable for a homelab?
Any suggestions or improvements on my ideas so far?
Thanks for reading my wall of text! Here's a picture of my dog.
I talked about DOGE and Cryptocurrencies for one of my education courses. WARNING - Wordy!
This one's addressed to any social studies, mathematics, and computer technology people out there, but I'm sure there are a ton of ways to adapt this concept to be relevant in other content areas. I recently became interested in cryptocurrencies. Anyone who even casually browses the internet or who keeps up with current events has likely heard of Bitcoin. Though I do not own any Bitcoins, when I first heard of the idea, I was intrigued. Bitcoin is a digital currency which some say exists as the internet's approximation of gold. Anyone can use their computer's processing power to "mine" Bitcoin, though as time progressed, just like real gold, Bitcoins became more and more difficult to "mine". To "mine" a Bitcoin is to have your computer solve a rather difficult math problem. Over time the math problem becomes increasingly difficult, which allows Bitcoins to become more difficult to acquire over time, increasing their value. When I first heard of Bitcoin, I was skeptical that it could ever become something truly valuable. I thought of it much like the real estate bubble that led to the economic depression of the past several years. I thought, "People say this is worth something, but how can something that cannot be redeemed for something useful carry an intrinsic value?" At one point, when Bitcoins were valued at $200 each, I half jokingly considered investing what little savings I had in the currency because I had seen it reach much higher values, crash, and rebound in the past. I definitely regret my decision not to invest in Bitcoins as they are now valued at over $900 each. The last weeks of December 2013 brought a new cryptocurrency. It is called Dogecoin. Apparently there is an internet meme based on a cute looking dog that some motivated people created a new form of currency themed around. Its unofficial catch phrase goes something like, "Such coin, very currency, wow!" I knew nothing of the "doge" meme, but I was intrigued by a currency that was nearly identical to Bitcoin, yet highly accessible to anyone who wanted some. Because, unlike Bitcoin, the currency was new and still relatively easy to "mine" when I became interested in it, I was able to use the CPU of my personal laptop to produce nearly 1000 DOGE over the course of several weeks. How much is 1000 DOGE worth in USD? About 33 cents (which is far less value than the energy my processor used to produce them). When Bitcoins came into existence they were nearly worthless because nobody accepted them. Now it is possible to not only exchange Dogecoins for valuable Bitcoins, but many Dogecoin supporters have began accepting the currency for goods and services. Learning about Dogecoin has taught me not only about cryptocurrencies but also about regular fiat currencies like the USD. In my opinion, and barring any intervention from governments (like we saw when China more or less banned the use of Bitcoins, and when the US arrested the operator of the Silk Road, a website that took advantage of the anonymity of cryptocurrency transactions to facilitate worldwide trade of illicit products up to and including heroin and murder-for-hire), these types of currencies are here to stay. This is because of the fact that currencies derive their value from the people who adopt them... Despite the fact that Bitcoin has no governing body manipulating interest rates or adjusting for inflation like the Fed does with the USD, it has become clear that there is a strong demand for a decentralized currency that can be transferred quickly and anonymously between any two persons in the world with an internet connection. Though there are countless types of currencies in the world, US Dollars and the Euro are two of the world's favorite ways to express value. In order for people to accept and trade in a given currency, people must not only be able to exchange goods and services for a certain amount of it, but they must also be able to exchange the currency for goods and services themselves with ease. Bitcoin became valuable not only because of its built in rarity, but also the ease of its transmission. Cryptocurrency transactions are generally much faster than standard "ACH" (Automated Clearing House) transactions that banks use to transfer funds from one account to another. Instead of a centralized institution like a bank determining an individual's rights to a certain amount of digital currency, the entire network of computers participating in this great experiment provides validation for whether or not any particular user has any claim to a valuable "solution" to the Bitcoin algorithm and verifies when Bitcoins are transferred from one user to another. Though I do not own any Bitcoins, I could easily convert my Dogecoins to Bitcoins (though I would own a very small fraction of one), and with minimal effort I could convert those Bitcoins to US Dollars. Cryptocurrencies are decentralized, which means that I do not need to go through a bank to transfer my valuable currency to another person. I need only to know that person's "wallet address" and I can send them as many "coins" as I want. Many banks charge a fee when a merchant accepts a transaction via credit or debit card. Many merchants, most notably Overstock.com, are beginning to accept payments in cryptocurrencies like Bitcoin. Accepting cryptocurrencies not only allows transactions to be processed more rapidly, but also payments are received in a currency that has a higher level of liquidity than the USD, as transactions can be processed nearly instantaneously. Bitcoin was introduced in 2009. It took several years for it to reach mainstream status, but in that time, many early adopters became millionaires. The value of Dogecoins is currently quite low, so it is difficult to view it as a serious investment, however one cannot predict the future. To me, Dogecoin is simultaneously a satire and something real. Accepting that a currency that was made up on a whim has real and tangible value really amounts to a huge leap of faith, but taking this leap has been strongly influential on my thoughts about US Dollars and other more widely accepted currencies. The message I got from re-examining money in this way is that currencies are only as valuable as PEOPLE determine them to be based on what they can exchange them for. My interest in Dogecoin led me to join the online community, Reddit, which is the community where the cute picture of a Shiba Inu dog spawned a new form of currency. Complete strangers walked me through the rather complicated process of setting up my computer to "mine" a digital coin that costs more to produce, due to the cost of electricity it takes for my computer to operate, than it is currently worth. Currently, the most active sector of the Dogecoin market is "tipping" members of the community. When someone posts something particularly insightful, useful, funny, or cathartic on Reddit, some Dogecoin enthusiasts "tip" them in Dogecoin. When Bitcoin first came around, Reddit users would often "tip" one another by sending them these coins. Today, a tip of a full Bitcoin would be a truly generous act, as giving someone a BTC would be the equivalent of nearly $1000. Currently, "mining" Bitcoins requires high end computing power, particularly the power possessed by top end graphics cards produced by companies such as NVidia and ATI. Interestingly, as the value of Bitcoins rises, so do the prices of top of the line video cards - an annoyance to gamers who seek the slick, hyper-realistic look that using such hardware provides. Litecoin, like Dogecoin, is basically a copy of Bitcoin's concept with a few tweaks. For example, if savvy miners discovered every Dogecoin possible, there would be over 100 billion in circulation. However, the mathematics that provide rarity to Dogecoin make it so that as more coins enter circulation, new coins become increasingly difficult to acquire. Though, when first conceived, Litecoin was expected to be just another fad with values similar to those currently held by Dogecoin, in the past few years its value has soared to nearly $25 per Litecoin. In fact, many mining "pools", which are groups of people who combine their processing power, have progressed from mining Bitcoins, to mining Litecoins, to finally mining Dogecoins (which are then sold for Bitcoins which can be potentially exchanged for US Dollars). Of course, most of these pools sell their Dogecoins for Bitcoins because they are the most liquid form of digital currency available, I can imagine marketplaces that deal in Dogecoins alone (as we speak, markets that exchange DOGE to USD and vice versa are developing and are having difficulty keeping up with demand) giving this currency, based on a silly picture of a cute dog, tangible value. As far as classroom application, I don't think that it would take a computer genius to design and implement a "Classcoin" that students could "mine" or acquire using different methods, though it would certainly take a person more technologically savvy than myself. Not only could students use processing power to generate new "Classcoins", but they could do things like trade them for extra points toward a test, develop services that other students might be interested in paying for such as tutoring. Also, the teacher can "mine" "Classcoins" and distribute them to students for any number of reasons. Instead of merely a process undertaken by a computer program, the system could be enhances so that students could be rewarded with increasing numbers of "Classcoins" because their classroom performance (grades, behavior, etc.) might directly correlate with the processor speed that their particular "Classcoin" mining program is capable of utilizing. Due to the design of cryptocurrencies in general, students could develop and participate in markets that trade them, develop unique ways and fresh markets for buying and selling these currencies, and use them as a lens to examine the way that fiat currencies like the USD gain, lose, and maintain value. If students mined and traded in a currency that is currenly relatively easy to "mine" with consumer hardware, such as Litecoin (which is considered by many to be the "silver" to Bitcoin's "gold"), proceeds could be easily converted to USD and spent on rewards and supplies to benefit students (at least until school supply companies begin to accept cryptocurrencies - Overstock.com is planning to soon!). Using cryptocurrencies makes it easy for parents and other interested parties to donate funds to schools, classrooms, teachers, and specials programs that directly benefit children without the need to interface with banks, checking accounts, or credit cards. Sorry to post two unnecessarily long posts in a row. My wife and pretty much everybody else I know are pretty sick of hearing me yammer on and on about these things so you all get to hear some of it for once.
Mining Dogecoin is a lot faster than mining Litecoin or Bitcoin. The block reward is much higher too! Don’t get too excited though (sorry!). Dogecoin is still worth a lot less than Bitcoin and Litecoin. A reward of ten thousand Dogecoin is worth less than thirty US Dollars. A reward of 12.5 Bitcoin is currently worth 86,391.63 US Dollars! Unlike Bitcoin’s SHA-256, Scrypt mining does not consume as much computing power. Dogecoin mining is the process that rewards miners for verifying the new transactions that are added to the Dogecoin blockchain. Back in 2014, Dogecoin and Litecoin had merged the mining process, which meant that you could mine both coins simultaneously. Accurate Dogecoin mining calculator trusted by millions of cryptocurrency miners. Updated in 2020, the newest version of the Dogecoin mining calculator makes it simple and easy to quickly calculate mining profitability for your Dogecoin mining hardware. Dogecoin Mining Hardware. The Dogecoin mining industry is less developed than Bitcoin’s. ASICs—powerful computers designed to solve Bitcoin’s proof of work function—are available for Dogecoin but difficult to purchase. Because Dogecoin and Bitcoin use different proof of work functions Bitcoin miners cannot mine Dogecoins. Dogecoin Mining Hardware and Dogecoin Mining Rig Just like every other cryptocurrency, Dogecoin mining hardware and Dogecoin mining rig are also an essential part of the mining procedure. As the productivity will increase according to need an input of the system, choosing the right hardware is necessary at first hand.
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