Some simple bitcoin economics - ScienceDirect

Survey Responses Are IN!

I want to thank everyone who replied to our survey! Your feedback is extremely valuable!


Here are the results and how they're helping shape our direction.


What goals would you like to see us accomplish? What's most important to you in how this Quadriga situation ends?

This was an open-ended question and the answers varied widely (and there was definitely a lot of responses which mentioned multiple goals). Here's a summary:
The justice theme has been entirely overlooked by what we're doing. Discussing the idea on the Quadriga Uncovered Telegram group, it was determined that there was definite interest in a potential letter-writing initiative. One possibility would be sending letters to the RCMP to request the exhumation.


Is there any part of our initiative which confuses you?

Almost universally, there was no mention of any confusion.
The feedback we did receive:
Please feel free to reach out on Telegram and Reddit if there are any further questions!


Is it more important to you that we focus on (a) helping victims of Quadriga recover, (b) educating more people about Quadriga and other exchange fraud, or (c) preventing future exchange fraud events like Quadriga?

Of the first or only choice picked, 70% chose (a) helping victims of Quadriga recover, while 30% chose (c) preventing future exchange fraud events like Quadriga.
(a) was mentioned in 80% of cases, and top choice in 70%.
(b) was a second choice in 30% of cases and mentioned in 35%.
(c) was mentioned in 65% of responses and top choice in 30%.
The educational portion of our initiative was seen as the lowest value. We are floating the idea of replacing the Education goal with a separate Justice goal, which is composed of letter-writing and other advocacy to help speed up any potential criminal investigations.


What bothers you most about Canadian cryptocurrency exchanges?

The responses varied widely. Here's a selection:
There is clearly a lack of satisfaction.


Should preventing events like Quadriga focus more on regulatory reform (working with regulators) or trying to create change through setting the example on one exchange and go from there (similar to how "Tesla" has electrified vehicles)?

Overall summary:
Pressing forward on both fronts appears to make the most sense.


Would you rather have the recovery run inside of a for-profit exchange (sort of a marketing/promotion idea to push people onto a safer exchange) or as an independent group of affected users pushing for our own interests (working with the safer exchange and other businesses potentially similar to a labour union or political advocacy)?

The end result:
We will be working to run this independently, however working closely with our partner exchange as a joint project (and it is definitely a promotional tool for them).


If given the choice, would you prefer (a) $20 cash each year for 10 years (slower recovery with full choice), or (b) your choice of $200 worth of discounts on products/services that are donated by small businesses which you could use this year (faster recovery with less choices)?

60% indicated a preference for (b), and 40% had the preference for (a). There is clear interest in focusing on both, which will push the fastest and most flexible recovery.


Affected users have a liquidation option which allows non-victims to purchase their tokens on the exchange. How do you feel about charging non-victims a small fee (5 cents per token) that is split between funding the project and a pool for affected user payout?

50% expressed outright support for the idea. Below are more detailed responses and comments:
At the moment this has not yet been agreed upon by the partner exchange.


Have you discussed the project with anyone else who lost funds in Quadriga? What kind of feedback are you hearing?

40% said they've discussed it. 40% have not. 20% didn't answer (or it was hard to understand). Some of the responses:


Many affected users have strong privacy concerns and shame regarding what happened to them, such that they are even hesitant to share basic details. What do you feel is the best way to build trust and openness among the affected user community?

Here are some of the replies:

Notes: Percentages rounded to the nearest 5%.


Thank you very much for everyone who took the time to respond! We will continue to study your answers as we move forward!
submitted by azoundria2 to QuadrigaInitiative [link] [comments]

Are we naive to think the elites were surprised by btc/blockchain? Some interesting points inside.

I'll start with saying the concept of blockchain was created by NSA with a bunch of cryptologists in 1994-1997 so they have known about it for a long time(even created it, actual paper below)
disclaimer: theres just a tiny bit of a conspiracy spin to it
With that as a starting point, it’s now becoming increasingly evident that Bitcoin MAY be a creation of the NSA and was rolled out as a “normalization” experiment to get the public familiar with digital currency. Once this is established, the world’s fiat currencies will be obliterated in an engineered debt collapse (), then replaced with a government approved cryptocurrency with tracking of all transactions and digital wallets by the world’s western governments.
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What evidence supports this notion? First, take a look at this document entitled, “How to make a mint: The cryptography of anonymous electronic cash.” This document, released in 1997 — yes, twenty years ago — detailed the overall structure and function of Bitcoin cryptocurrency.
https://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?article=1389&context=aulr
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[1997]With the onset of the Information Age, our nation is becoming increasingly dependent on network communications. Computer-based technology is impacting significantly our ability to access, store, and distribute information.
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An electronic payment protocol involves a series of transactions, resulting in a payment being made using a token issued by a third party.
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The most common example is the electronic approval process used to complete a credit card transaction; neither payer nor payee issues the token in an electronic payment.
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The electronic payment scenario assumes three kinds of players:
" a payer or consumer ("Alice"),
" a payee, such as a merchant ("Bob"), and
" a financial network with whom both Alice and Bob have accounts(the "Bank")
Why would they want blockchain? Its even mentioned in the paper.
The untraceability property of electronic cash creates problems in detecting money laundering and tax evasion because there is no way to link the payer and payee. To counter this problem, it is possible to design a system that has an option to restore traceability using an escrow mechanism.
Theyre talking about blockchain and tracing money in fucken 1997.
So whilst btc is great and open source but do you think this is going to replace banks? That they didnt see this coming? Blockchain is great for goverment.
Btc is Robin Hood style money and its gonna get smashed.
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"See Tony Eng & Tatsuaki Okamoto, Single-Term Divisib Electronic Coins, 1994 ADvANcES IN CRYPTOLOGY-EUROCRYPT '94, LECTURE NOTES IN COMPUTER SGI. 311, 313."
Three divisible off-line cash schemes have been proposed, but at the cost of longer transaction time and additional storage.
Eng/Okamoto's divisible scheme is based on the "cut and choose"
Okamoto's scheme is much more efficient and is based on Brands' scheme but also will work on Ferguson's scheme.'
Okamoto and Ohta's scheme is the most efficient of the three, but also the most complicated.
It relies on the difficulty of factoring and on the difficulty of computing discrete logarithms.
Eng/Tatsuaki Okamoto and Ohta's scheme
Tatsuaki Okamoto +eng+ohta
Satoshi Nakamoto
Did these 3 create this or?
??
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It is evident that SHA-256, the algorithm Satoshi used to secure Bitcoin, was not available because it came about in 2001. However, SHA-1 would have been available to them, having been published in 1993.
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On top of the fact that the NSA authored a technical paper on cryptocurrency long before the arrival of Bitcoin, the agency is also the creator of the SHA-256 hash upon which every Bitcoin transaction in the world depends. “The integrity of Bitcoin depends on a hash function called SHA-256, which was designed by the NSA and published by the National Institute for Standards and Technology (NIST).”
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“If you assume that the NSA did something to SHA-256, which no outside researcher has detected, what you get is the ability, with credible and detectable action, they would be able to forge transactions. The really scary thing is somebody finds a way to find collisions in SHA-256 really fast without brute-forcing it or using lots of hardware and then they take control of the network.” Cryptography researcher Matthew D. Green of Johns Hopkins University said.
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Chaum developed ecash way back in 1983, long before the large scale propagation of the world wide web. Chaum was a proponent of anonymity in transactions, with the express demand that banks and governments would have no way of knowing who had purchased what.
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Although Bitcoin adds mining and a shared, peer-to-peer blockchain transaction authentication system to this structure, it’s clear that the NSA was researching cryptocurrencies long before everyday users had ever heard of the term.
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‘I wouldn’t be surprised if he is actually an American working for the NSA specializing in cryptography. Then he got sick of the government’s monetary policies and decided to create Bitcoin.’ Vitalik Buterin account then replied: ‘Or the NSA itself decided to create Bitcoin.
Here you see a freedom of information act letter to the NSA asking about their involvement in BTC and they say its classified lol
Why the fuck would that be classified?
We're fucked guys.
submitted by pabbseven to CryptoCurrency [link] [comments]

Which are your Top 5 favourite coins out of the Top 100? An analysis.

I am putting together my investment portfolio for 2018 and made a complete summary of the current Top 100. Interestingly, I noticed that all coins can be categorized into 12 markets. Which markets do you think will play the biggest role in the coming year?
Here is a complete overview of all coins in an excel sheet including name, market, TPS, risk profile, time since launch (negative numbers mean that they are launching that many months in the future) and market cap. You can also sort by all of these fields of course. Coins written in bold are the strongest contenders within their market either due to having the best technology or having a small market cap and still excellent technology and potential. https://docs.google.com/spreadsheets/d/1s8PHcNvvjuy848q18py_CGcu8elRGQAUIf86EYh4QZo/edit#gid=0
The 12 markets are
  1. Currency 13 coins
  2. Platform 25 coins
  3. Ecosystem 9 coins
  4. Privacy 10 coins
  5. Currency Exchange Tool 8 coins
  6. Gaming & Gambling 5 coins
  7. Misc 15 coins
  8. Social Network 4 coins
  9. Fee Token 3 coins
  10. Decentralized Data Storage 4 coins
  11. Cloud Computing 3 coins
  12. Stable Coin 2 coins
Before we look at the individual markets, we need to take a look of the overall market and its biggest issue scalability first:
Cryptocurrencies aim to be a decentralized currency that can be used worldwide. Its goal is to replace dollar, Euro, Yen, all FIAT currencies worldwide. The coin that will achieve that will be worth several trillion dollars.
Bitcoin can only process 7 transactions per second (TPS). In order to replace all FIAT, it would need to perform at at least VISA levels, which usually processes around 3,000 TPS, up to 25,000 TPS during peak times and a maximum of 64,000 TPS. That means that this cryptocurrency would need to be able to perform at least several thousand TPS. However, a ground breaking technology should not look at current technology to set a goal for its use, i.e. estimating the number of emails sent in 1990 based on the number of faxes sent wasn’t a good estimate.
For that reason, 10,000 TPS is the absolute baseline for a cryptocurrency that wants to replace FIAT. This brings me to IOTA, which wants to connect all 80 billion IoT devices that are expected to exist by 2025, which constantly communicate with each other, creating 80 billion or more transactions per second. This is the benchmark that cryptocurrencies should be aiming for. Currently, 8 billion devices are connected to the Internet.
With its Lightning network recently launched, Bitcoin is realistically looking at 50,000 possible soon. Other notable cryptocurrencies besides IOTA and Bitcoin are Nano with 7,000 TPS already tested, Dash with several billion TPS possible with Masternodes, Neo, LISK and RHOC with 100,000 TPS by 2020, Ripple with 50,000 TPS, Ethereum with 10,000 with Sharding.
However, it needs to be said that scalability usually goes at the cost of decentralization and security. So, it needs to be seen, which of these technologies can prove itself resilient and performant.
Without further ado, here are the coins of the first market

Market 1 - Currency:

  1. Bitcoin: 1st generation blockchain with currently bad scalability currently, though the implementation of the Lightning Network looks promising and could alleviate most scalability concerns, scalability and high energy use.
  2. Ripple: Centralized currency that might become very successful due to tight involvement with banks and cross-border payments for financial institutions; banks and companies like Western Union and Moneygram (who they are currently working with) as customers customers. However, it seems they are aiming for more decentralization now.https://ripple.com/dev-blog/decentralization-strategy-update/. Has high TPS due to Proof of Correctness algorithm.
  3. Bitcoin Cash: Bitcoin fork with the difference of having an 8 times bigger block size, making it 8 times more scalable than Bitcoin currently. Further block size increases are planned. Only significant difference is bigger block size while big blocks lead to further problems that don't seem to do well beyond a few thousand TPS. Opponents to a block size argue that increasing the block size limit is unimaginative, offers only temporary relief, and damages decentralization by increasing costs of participation. In order to preserve decentralization, system requirements to participate should be kept low. To understand this, consider an extreme example: very big blocks (1GB+) would require data center level resources to validate the blockchain. This would preclude all but the wealthiest individuals from participating.Community seems more open than Bitcoin's though.
  4. Litecoin : Little brother of Bitcoin. Bitcoin fork with different mining algorithm but not much else.Copies everything that Bitcoin does pretty much. Lack of real innovation.
  5. Dash: Dash (Digital Cash) is a fork of Bitcoin and focuses on user ease. It has very fast transactions within seconds, low fees and uses Proof of Service from Masternodes for consensus. They are currently building a system called Evolution which will allow users to send money using usernames and merchants will find it easy to integrate Dash using the API. You could say Dash is trying to be a PayPal of cryptocurrencies. Currently, cryptocurrencies must choose between decentralization, speed, scalability and can pick only 2. With Masternodes, Dash picked speed and scalability at some cost of decentralization, since with Masternodes the voting power is shifted towards Masternodes, which are run by Dash users who own the most Dash.
  6. IOTA: 3rd generation blockchain called Tangle, which has a high scalability, no fees and instant transactions. IOTA aims to be the connective layer between all 80 billion IOT devices that are expected to be connected to the Internet in 2025, possibly creating 80 billion transactions per second or 800 billion TPS, who knows. However, it needs to be seen if the Tangle can keep up with this scalability and iron out its security issues that have not yet been completely resolved.
  7. Nano: 3rd generation blockchain called Block Lattice with high scalability, no fees and instant transactions. Unlike IOTA, Nano only wants to be a payment processor and nothing else, for now at least. With Nano, every user has their own blockchain and has to perform a small amount of computing for each transaction, which makes Nano perform at 300 TPS with no problems and 7,000 TPS have also been tested successfully. Very promising 3rd gen technology and strong focus on only being the fastest currency without trying to be everything.
  8. Decred: As mining operations have grown, Bitcoin’s decision-making process has become more centralized, with the largest mining companies holding large amounts of power over the Bitcoin improvement process. Decred focuses heavily on decentralization with their PoW Pos hybrid governance system to become what Bitcoin was set out to be. They will soon implement the Lightning Network to scale up. While there do not seem to be more differences to Bitcoin besides the novel hybrid consensus algorithm, which Ethereum, Aeternity and Bitcoin Atom are also implementing, the welcoming and positive Decred community and professoinal team add another level of potential to the coin.
  9. Aeternity: We’ve seen recently, that it’s difficult to scale the execution of smart contracts on the blockchain. Crypto Kitties is a great example. Something as simple as creating and trading unique assets on Ethereum bogged the network down when transaction volume soared. Ethereum and Zilliqa address this problem with Sharding. Aeternity focuses on increasing the scalability of smart contracts and dapps by moving smart contracts off-chain. Instead of running on the blockchain, smart contracts on Aeternity run in private state channels between the parties involved in the contracts. State channels are lines of communication between parties in a smart contract. They don’t touch the blockchain unless they need to for adjudication or transfer of value. Because they’re off-chain, state channel contracts can operate much more efficiently. They don’t need to pay the network for every time they compute and can also operate with greater privacy. An important aspect of smart contract and dapp development is access to outside data sources. This could mean checking the weather in London, score of a football game, or price of gold. Oracles provide access to data hosted outside the blockchain. In many blockchain projects, oracles represent a security risk and potential point of failure, since they tend to be singular, centralized data streams. Aeternity proposes decentralizing oracles with their oracle machine. Doing so would make outside data immutable and unchangeable once it reaches Aeternity’s blockchain. Of course, the data source could still be hacked, so Aeternity implements a prediction market where users can bet on the accuracy and honesty of incoming data from various oracles.It also uses prediction markets for various voting and verification purposes within the platform. Aeternity’s network runs on on a hybrid of proof of work and proof of stake. Founded by a long-time crypto-enthusiast and early colleague of Vitalik Buterin, Yanislav Malahov. Promising concept though not product yet
  10. Bitcoin Atom: Atomic Swaps and hybrid consenus. This looks like the only Bitcoin clone that actually is looking to innovate next to Bitcoin Cash.
  11. Dogecoin: Litecoin fork, fantastic community, though lagging behind a bit in technology.
  12. Bitcoin Gold: A bit better security than bitcoin through ASIC resistant algorithm, but that's it. Not that interesting.
  13. Digibyte: Digibyte's PoS blockchain is spread over a 100,000+ servers, phones, computers, and nodes across the globe, aiming for the ultimate level of decentralization. DigiByte rebalances the load between the five mining algorithms by adjusting the difficulty of each so one algorithm doesn’t become dominant. The algorithm's asymmetric difficulty has gained notoriety and been deployed in many other blockchains.DigiByte’s adoption over the past four years has been slow. It’s still a relatively obscure currency compared its competitors. The DigiByte website offers a lot of great marketing copy and buzzwords. However, there’s not much technical information about what they have planned for the future. You could say Digibyte is like Bitcoin, but with shorter blocktimes and a multi-algorithm. However, that's not really a difference big enough to truly set themselves apart from Bitcoin, since these technologies could be implemented by any blockchain without much difficulty. Their decentralization is probably their strongest asset, however, this also change quickly if the currency takes off and big miners decide to go into Digibyte.
  14. Bitcoin Diamond Asic resistant Bitcoin and Copycat

Market 2 - Platform

Most of the cryptos here have smart contracts and allow dapps (Decentralized apps) to be build on their platform and to use their token as an exchange of value between dapp services.
  1. Ethereum: 2nd generation blockchain that allows the use of smart contracts. Bad scalability currently, though this concern could be alleviated by the soon to be implemented Lightning Network aka Plasma and its Sharding concept.
  2. EOS: Promising technology that wants to be able do everything, from smart contracts like Ethereum, scalability similar to Nano with 1000 tx/second + near instant transactions and zero fees, to also wanting to be a platform for dapps. However, EOS doesn't have a product yet and everything is just promises still. Highly overvalued right now. However, there are lots of red flags, have dumped $500 million Ether over the last 2 months and possibly bought back EOS to increase the size of their ICO, which has been going on for over a year and has raised several billion dollars. All in all, their market cap is way too high for that and not even having a product.
  3. Cardano: Similar to Ethereum/EOS, however, only promises made with no delivery yet, highly overrated right now. Interesting concept though. Market cap way too high for not even having a product. Somewhat promising technology.
  4. VeChain: Singapore-based project that’s building a business enterprise platform and inventory tracking system. Examples are verifying genuine luxury goods and food supply chains. Has one of the strongest communities in the crypto world. Most hyped token of all, with merit though.
  5. Neo: Neo is a platform, similar to Eth, but more extensive, allowing dapps and smart contracts, but with a different smart contract gas system, consensus mechanism (PoS vs. dBfT), governance model, fixed vs unfixed supply, expensive contracts vs nearly free contracts, different ideologies for real world adoption. There are currently only 9 nodes, each of which are being run by a company/entity hand selected by the NEO council (most of which are located in china) and are under contract. This means that although the locations of the nodes may differ, ultimately the neo council can bring them down due to their legal contracts. In fact this has been done in the past when the neo council was moving 50 million neo that had been locked up. Also dbft (or neo's implmentation of it) has failed underload causing network outages during major icos. The first step in decentralization is that the NEO Counsel will select trusted nodes (Universities, business partners, etc.) and slowly become less centralized that way. The final step in decentralization will be allowing NEO holders to vote for new nodes, similar to a DPoS system (ARK/EOS/LISK). NEO has a regulation/government friendly ideology. Finally they are trying to work undewith the Chinese government in regards to regulations. If for some reason they wanted it shut down, they could just shut it down.
  6. Stellar: PoS system, similar goals as Ripple, but more of a platform than only a currency. 80% of Stellar are owned by Stellar.org still, making the currency centralized.
  7. Ethereum classic: Original Ethereum that decided not to fork after a hack. The Ethereum that we know is its fork. Uninteresing, because it has a lot of less resources than Ethereum now and a lot less community support.
  8. Ziliqa: Zilliqa is building a new way of sharding. 2400 tpx already tested, 10,000 tps soon possible by being linearly scalable with the number of nodes. That means, the more nodes, the faster the network gets. They are looking at implementing privacy as well.
  9. QTUM: Enables Smart contracts on the Bitcoin blockchain. Useful.
  10. Icon: Korean ethereum. Decentralized application platform that's building communities in partnership with banks, insurance providers, hospitals, and universities. Focused on ID verification and payments. No big differentiators to the other 20 Ethereums, except that is has a product. That is a plus. Maybe cheap alternative to Ethereum.
  11. LISK: Lisk's difference to other BaaS is that side chains are independent to the main chain and have to have their own nodes. Similar to neo whole allows dapps to deploy their blockchain to. However, Lisk is currently somewhat centralized with a small group of members owning more than 50% of the delegated positions. Lisk plans to change the consensus algorithm for that reason in the near future.
  12. Rchain: Similar to Ethereum with smart contract, though much more scalable at an expected 40,000 TPS and possible 100,000 TPS. Not launched yet. No product launched yet, though promising technology. Not overvalued, probably at the right price right now.
  13. ARDR: Similar to Lisk. Ardor is a public blockchain platform that will allow people to utilize the blockchain technology of Nxt through the use of child chains. A child chain, which is a ‘light’ blockchain that can be customized to a certain extent, is designed to allow easy self-deploy for your own blockchain. Nxt claims that users will "not need to worry" about security, as that part is now handled by the main chain (Ardor). This is the chief innovation of Ardor. Ardor was evolved from NXT by the same company. NEM started as a NXT clone.
  14. Ontology: Similar to Neo. Interesting coin
  15. Bytom: Bytom is an interactive protocol of multiple byte assets. Heterogeneous byte-assets (indigenous digital currency, digital assets) that operate in different forms on the Bytom Blockchain and atomic assets (warrants, securities, dividends, bonds, intelligence information, forecasting information and other information that exist in the physical world) can be registered, exchanged, gambled and engaged in other more complicated and contract-based interoperations via Bytom.
  16. Nxt: Similar to Lisk
  17. Stratis: Different to LISK, Stratis will allow businesses and organizations to create their own blockchain according to their own needs, but secured on the parent Stratis chain. Stratis’s simple interface will allow organizations to quickly and easily deploy and/or test blockchain functionality of the Ethereum, BitShares, BitCoin, Lisk and Stratis environements.
  18. Status: Status provides access to all of Ethereum’s decentralized applications (dapps) through an app on your smartphone. It opens the door to mass adoption of Ethereum dapps by targeting the fastest growing computer segment in the world – smartphone users.16. Ark: Fork of Lisk that focuses on a smaller feature set. Ark wallets can only vote for one delegate at a time which forces delegates to compete against each other and makes cartel formations incredibly hard, if not impossible.
  19. Neblio: Similar to Neo, but 30x smaller market cap.
  20. NEM: Is similar to Neo No marketing team, very high market cap for little clarilty what they do.
  21. Bancor: Bancor is a Decentralized Liquidity Network that allows you to hold any Ethereum token and convert it to any other token in the network, with no counter party, at an automatically calculated price, using a simple web wallet.
  22. Dragonchain: The Purpose of DragonChain is to help companies quickly and easily incorporate blockchain into their business applications. Many companies might be interested in making this transition because of the benefits associated with serving clients over a blockchain – increased efficiency and security for transactions, a reduction of costs from eliminating potential fraud and scams, etc.
  23. Skycoin: Transactions with zero fees that take apparently two seconds, unlimited transaction rate, no need for miners and block rewards, low power usage, all of the usual cryptocurrency technical vulnerabilities fixed, a consensus mechanism superior to anything that exists, resistant to all conceivable threats (government censorship, community infighting, cybenucleaconventional warfare, etc). Skycoin has their own consensus algorithm known as Obelisk written and published academically by an early developer of Ethereum. Obelisk is a non-energy intensive consensus algorithm based on a concept called ‘web of trust dynamics’ which is completely different to PoW, PoS, and their derivatives. Skywire, the flagship application of Skycoin, has the ambitious goal of decentralizing the internet at the hardware level and is about to begin the testnet in April. However, this is just one of the many facets of the Skycoin ecosystem. Skywire will not only provide decentralized bandwidth but also storage and computation, completing the holy trinity of commodities essential for the new internet. Skycion a smear campaign launched against it, though they seem legit and reliable. Thus, they are probably undervalued.

Market 3 - Ecosystem

The 3rd market with 11 coins is comprised of ecosystem coins, which aim to strengthen the ease of use within the crypto space through decentralized exchanges, open standards for apps and more
  1. Nebulas: Similar to how Google indexes webpages Nebulas will index blockchain projects, smart contracts & data using the Nebulas rank algorithm that sifts & sorts the data. Developers rewarded NAS to develop & deploy on NAS chain. Nebulas calls this developer incentive protocol – basically rewards are issued based on how often dapp/contract etc. is used, the more the better the rewards and Proof of devotion. Works like DPoS except the best, most economically incentivised developers (Bookkeeppers) get the forging spots. Ensuring brains stay with the project (Cross between PoI & PoS). 2,400 TPS+, DAG used to solve the inter-transaction dependencies in the PEE (Parallel Execution Environment) feature, first crypto Wallet that supports the Lightening Network.
  2. Waves: Decentralized exchange and crowdfunding platform. Let’s companies and projects to issue and manage their own digital coin tokens to raise money.
  3. Salt: Leveraging blockchain assets to secure cash loands. Plans to offer cash loans in traditional currencies, backed by your cryptocurrency assets. Allows lenders worldwide to skip credit checks for easier access to affordable loans.
  4. CHAINLINK: ChainLink is a decentralized oracle service, the first of its kind. Oracles are defined as an ‘agent’ that finds and verifies real-world occurrences and submits this information to a blockchain to be used in smart contracts.With ChainLink, smart contract users can use the network’s oracles to retrieve data from off-chain application program interfaces (APIs), data pools, and other resources and integrate them into the blockchain and smart contracts. Basically, ChainLink takes information that is external to blockchain applications and puts it on-chain. The difference to Aeternity is that Chainlink deploys the smart contracts on the Ethereum blockchain while Aeternity has its own chain.
  5. WTC: Combines blockchain with IoT to create a management system for supply chains Interesting
  6. Ethos unifyies all cryptos. Ethos is building a multi-cryptocurrency phone wallet. The team is also building an investment diversification tool and a social network
  7. Aion: Aion is the token that pays for services on the Aeternity platform.
  8. USDT: is no cryptocurrency really, but a replacement for dollar for trading After months of asking for proof of dollar backing, still no response from Tether.

Market 4 - Privacy

The 4th market are privacy coins. As you might know, Bitcoin is not anonymous. If the IRS or any other party asks an exchange who is the identity behind a specific Bitcoin address, they know who you are and can track back almost all of the Bitcoin transactions you have ever made and all your account balances. Privacy coins aim to prevent exactly that through address fungability, which changes addresses constantly, IP obfuscation and more. There are 2 types of privacy coins, one with completely privacy and one with optional privacy. Optional Privacy coins like Dash and Nav have the advantage of more user friendliness over completely privacy coins such as Monero and Enigma.
  1. Monero: Currently most popular privacy coin, though with a very high market cap. Since their privacy is all on chain, all prior transactions would be deanonymized if their protocol is ever cracked. This requires a quantum computing attack though. PIVX is better in that regard.
  2. Zcash: A decentralized and open-source cryptocurrency that hide the sender, recipient, and value of transactions. Offers users the option to make transactions public later for auditing. Decent privacy coin, though no default privacy
  3. Verge: Calls itself privacy coin without providing private transactions, multiple problems over the last weeks has a toxic community, and way too much hype for what they have.
  4. Bytecoin: First privacy-focused cryptocurrency with anonymous transactions. Bytecoin’s code was later adapted to create Monero, the more well-known anonymous cryptocurrency. Has several scam accusations, 80% pre-mine, bad devs, bad tech
  5. Bitcoin Private: A merge fork of Bitcoin and Zclassic with Zclassic being a fork of Zcash with the difference of a lack of a founders fee required to mine a valid block. This promotes a fair distribution, preventing centralized coin ownership and control. Bitcoin private offers the optional ability to keep the sender, receiver, and amount private in a given transaction. However, this is already offered by several good privacy coins (Monero, PIVX) and Bitcoin private doesn't offer much more beyond this.
  6. Komodo: The Komodo blockchain platform uses Komodo’s open-source cryptocurrency for doing transparent, anonymous, private, and fungible transactions. They are then made ultra-secure using Bitcoin’s blockchain via a Delayed Proof of Work (dPoW) protocol and decentralized crowdfunding (ICO) platform to remove middlemen from project funding. Offers services for startups to create and manage their own Blockchains.
  7. PIVX: As a fork of Dash, PIVX uses an advanced implementation of the Zerocoin protocol to provide it’s privacy. This is a form of zeroknowledge proofs, which allow users to spend ‘Zerocoins’ that have no link back to them. Unlike Zcash u have denominations in PIVX, so they can’t track users by their payment amount being equal to the amount of ‘minted’ coins, because everyone uses the same denominations. PIVX is also implementing Bulletproofs, just like Monero, and this will take care of arguably the biggest weakness of zeroknowledge protocols: the trusted setup.
  8. Zcoin: PoW cryptocurrency. Private financial transactions, enabled by the Zerocoin Protocol. Zcoin is the first full implementation of the Zerocoin Protocol, which allows users to have complete privacy via Zero-Knowledge cryptographic proofs.
  9. Enigma: Monero is to Bitcoin what enigma is to Ethereum. Enigma is for making the data used in smart contracts private. More of a platform for dapps than a currency like Monero. Very promising.
  10. Navcoin: Like bitcoin but with added privacy and pos and 1,170 tps, but only because of very short 30 second block times. Though, privacy is optional, but aims to be more user friendly than Monero. However, doesn't really decide if it wants to be a privacy coin or not. Same as Zcash.Strong technology, non-shady team.
  11. Tenx: Raised 80 million, offers cryptocurrency-linked credit cards that let you spend virtual money in real life. Developing a series of payment platforms to make spending cryptocurrency easier. However, the question is if full privacy coins will be hindered in growth through government regulations and optional privacy coins will become more successful through ease of use and no regulatory hindrance.

Market 5 - Currency Exchange Tool

Due to the sheer number of different cryptocurrencies, exchanging one currency for the other it still cumbersome. Further, merchants don’t want to deal with overcluttered options of accepting cryptocurrencies. This is where exchange tool like Req come in, which allow easy and simple exchange of currencies.
  1. Cryptonex: Fiat and currency exchange between various blockchain services, similar to REQ.
  2. QASH: Qash is used to fuel its liquid platform which will be an exchange that will distribute their liquidity pool. Its product, the Worldbook is a multi-exchange order book that matches crypto to crypto, and crypto to fiat and the reverse across all currencies. E.g., someone is selling Bitcoin is USD on exchange1 not owned by Quoine and someone is buying Bitcoin in EURO on exchange 2 not owned by Quoine. If the forex conversions and crypto conversions match then the trade will go through and the Worldbook will match it, it'll make the sale and the purchase on either exchange and each user will get what they wanted, which means exchanges with lower liquidity if they join the Worldbook will be able to fill orders and take trade fees they otherwise would miss out on.They turned it on to test it a few months ago for an hour or so and their exchange was the top exchange in the world by 4x volume for the day because all Worldbook trades ran through it. Binance wants BNB to be used on their one exchange. Qash wants their QASH token embedded in all of their partners. More info here https://www.reddit.com/CryptoCurrency/comments/8a8lnwhich_are_your_top_5_favourite_coins_out_of_the/dwyjcbb/?context=3
  3. Kyber: network Exchange between cryptocurrencies, similar to REQ. Features automatic coin conversions for payments. Also offers payment tools for developers and a cryptocurrency wallet.
  4. Achain: Building a boundless blockchain world like Req .
  5. Req: Exchange between cryptocurrencies.
  6. Bitshares: Exchange between cryptocurrencies. Noteworthy are the 1.5 second average block times and throughput potential of 100,000 transactions per second with currently 2,400 TPS having been proven. However, bitshares had several Scam accusations in the past.
  7. Loopring: A protocol that will enable higher liquidity between exchanges and personal wallets.
  8. ZRX: Open standard for dapps. Open, permissionless protocol allowing for ERC20 tokens to be traded on the Ethereum blockchain. In 0x protocol, orders are transported off-chain, massively reducing gas costs and eliminating blockchain bloat. Relayers help broadcast orders and collect a fee each time they facilitate a trade. Anyone can build a relayer.

Market 6 - Gaming

With an industry size of $108B worldwide, Gaming is one of the largest markets in the world. For sure, cryptocurrencies will want to have a share of that pie.
  1. Storm: Mobile game currency on a platform with 9 million players.
  2. Fun: A platform for casino operators to host trustless, provably-fair gambling through the use of smart contracts, as well as creating their own implementation of state channels for scalability.
  3. Electroneum: Mobile game currency They have lots of technical problems, such as several 51% attacks
  4. Wax: Marketplace to trade in-game items

Market 7 - Misc

There are various markets being tapped right now. They are all summed up under misc.
  1. OMG: Omise is designed to enable financial services for people without bank accounts. It works worldwide and with both traditional money and cryptocurrencies.
  2. Power ledger: Australian blockchain-based cryptocurrency and energy trading platform that allows for decentralized selling and buying of renewable energy. Unique market and rather untapped market in the crypto space.
  3. Populous: A platform that connects business owners and invoice buyers without middlemen. Invoice sellers get cash flow to fund their business and invoice buyers earn interest. Similar to OMG, small market.
  4. Monacoin: The first Japanese cryptocurrency. Focused on micro-transactions and based on a popular internet meme of a type-written cat. This makes it similar to Dogecoin. Very niche, tiny market.
  5. Revain: Legitimizing reviews via the blockchain. Interesting concept, though market not as big.
  6. Augur: Platform to forecast and make wagers on the outcome of real-world events (AKA decentralized predictions). Uses predictions for a “wisdom of the crowd” search engine. Not launched yet.
  7. Substratum: Revolutionzing hosting industry via per request billing as a decentralized internet hosting system. Uses a global network of private computers to create the free and open internet of the future. Participants earn cryptocurrency. Interesting concept.
  8. Veritaseum: Is supposed to be a peer to peer gateway, though it looks like very much like a scam.
  9. TRON: Tronix is looking to capitalize on ownership of internet data to content creators. However, they plagiarized their white paper, which is a no go. They apologized, so it needs to be seen how they will conduct themselves in the future. Extremely high market cap for not having a product, nor proof of concept.
  10. Syscoin: A cryptocurrency with a decentralized marketplace that lets people buy and sell products directly without third parties. Trying to remove middlemen like eBay and Amazon.
  11. Hshare: Most likely scam because of no code changes, most likely pump and dump scheme, dead community.
  12. BAT: An Ethereum-based token that can be exchanged between content creators, users, and advertisers. Decentralized ad-network that pays based on engagement and attention.
  13. Dent: Decentralizeed exchange of mobile data, enabling mobile data to be marketed, purchased or distributed, so that users can quickly buy or sell data from any user to another one.
  14. Ncash: End to end encrypted Identification system for retailers to better serve their customers .
  15. Factom Secure record-keeping system that allows companies to store their data directly on the Blockchain. The goal is to make records more transparent and trustworthy .

Market 8 - Social network

Web 2.0 is still going strong and Web 3.0 is not going to ignore it. There are several gaming tokens already out there and a few with decent traction already, such as Steem, which is Reddit with voting through money is a very interesting one.
  1. Mithril: As users create content via social media, they will be rewarded for their contribution, the better the contribution, the more they will earn
  2. Steem: Like Reddit, but voting with money. Already launched product and Alexa rank 1,000 Thumbs up.
  3. Rdd: Reddcoin makes the process of sending and receiving money fun and rewarding for everyone. Reddcoin is dedicated to one thing – tipping on social networks as a way to bring cryptocurrency awareness and experience to the general public.
  4. Kin: Token for the platform Kik. Kik has a massive user base of 400 million people. Replacing paying with FIAT with paying with KIN might get this token to mass adoption very quickly.

Market 9 - Fee token

Popular exchanges realized that they can make a few billion dollars more by launching their own token. Owning these tokens gives you a reduction of trading fees. Very handy and BNB (Binance Coin) has been one of the most resilient tokens, which have withstood most market drops over the last weeks and was among the very few coins that could show growth.
  1. BNB: Fee token for Binance
  2. Gas: Not a Fee token for an exchange, but it is a dividend paid out on Neo and a currency that can be used to purchase services for dapps.
  3. Kucoin: Fee token for Kucoin

Market 10 - Decentralized Data Storage

Currently, data storage happens with large companies or data centers that are prone to failure or losing data. Decentralized data storage makes loss of data almost impossible by distributing your files to numerous clients that hold tiny pieces of your data. Remember Torrents? Torrents use a peer-to-peer network. It is similar to that. Many users maintain copies of the same file, when someone wants a copy of that file, they send a request to the peer-to-peer network., users who have the file, known as seeds, send fragments of the file to the requester., he requester receives many fragments from many different seeds, and the torrent software recompiles these fragments to form the original file.
  1. Gbyte: Byteball data is stored and ordered using directed acyclic graph (DAG) rather than blockchain. This allows all users to secure each other's data by referencing earlier data units created by other users, and also removes scalability limits common for blockchains, such as blocksize issue.
  2. Siacoin: Siacoin is decentralized storage platform. Distributes encrypted files to thousands of private users who get paid for renting out their disk space. Anybody with siacoins can rent storage from hosts on Sia. This is accomplish via "smart" storage contracts stored on the Sia blockchain. The smart contract provides a payment to the host only after the host has kept the file for a given amount of time. If the host loses the file, the host does not get paid.
  3. Maidsafecoin: MaidSafe stands for Massive Array of Internet Disks, Secure Access for Everyone.Instead of working with data centers and servers that are common today and are vulnerable to data theft and monitoring, SAFE’s network uses advanced P2P technology to bring together the spare computing capacity of all SAFE users and create a global network. You can think of SAFE as a crowd-sourced internet. All data and applications reside in this network. It’s an autonomous network that automatically sets prices and distributes data and rents out hard drive disk space with a Blockchain-based storage solutions.When you upload a file to the network, such as a photo, it will be broken into pieces, hashed, and encrypted. The data is then randomly distributed across the network. Redundant copies of the data are created as well so that if someone storing your file turns off their computer, you will still have access to your data. And don’t worry, even with pieces of your data on other people’s computers, they won’t be able to read them. You can earn MadeSafeCoins by participating in storing data pieces from the network on your computer and thus earning a Proof of Resource.
  4. Storj: Storj aims to become a cloud storage platform that can’t be censored or monitored, or have downtime. Your files are encrypted, shredded into little pieces called 'shards', and stored in a decentralized network of computers around the globe. No one but you has a complete copy of your file, not even in an encrypted form.

Market 11 - Cloud computing

Obviously, renting computing power, one of the biggest emerging markets as of recent years, e.g. AWS and Digital Ocean, is also a service, which can be bought and managed via the blockchain.
  1. Golem: Allows easy use of Supercomputer in exchange for tokens. People worldwide can rent out their computers to the network and get paid for that service with Golem tokens.
  2. Elf: Allows easy use of Cloud computing in exchange for tokens.

Market 12 - Stablecoin

Last but not least, there are 2 stablecoins that have established themselves within the market. A stable coin is a coin that wants to be independent of the volatility of the crypto markets. This has worked out pretty well for Maker and DGD, accomplished through a carefully diversified currency fund and backing each token by 1g or real gold respectively. DO NOT CONFUSE DGD AND MAKER with their STABLE COINS DGX and DAI. DGD and MAKER are volatile, because they are the companies of DGX and DAI. DGX and DAI are the stable coins.
  1. DGD: Platform of the Stablecoin DGX. Every DGX coin is backed by 1g of gold and make use proof of asset consensus.
  2. Maker: Platform of the Stablecoin DAI that doesn't vary much in price through widespread and smart diversification of assets.
EDIT: Added a risk factor from 0 to 10. The baseline is 2 for any crypto. Significant scandals, mishaps, shady practices, questionable technology, increase the risk factor. Not having a product yet automatically means a risk factor of 6. Strong adoption and thus strong scrutiny or positive community lower the risk factor.
EDIT2: Added a subjective potential factor from 0 to 10, where its overall potential and a small or big market cap is factored in. Bitcoin with lots of potential only gets a 9, because of its massive market cap, because if Bitcoin goes 10x, smaller coins go 100x, PIVX gets a 10 for being as good as Monero while carrying a 10x smaller market cap, which would make PIVX go 100x if Monero goes 10x.
submitted by galan77 to CryptoCurrency [link] [comments]

A (hopefully mathematically neutral) comparison of Lightning network fees to Bitcoin Cash on-chain fees.

A side note before I begin
For context, earlier today, sherlocoin made a post on this sub asking if Lightning Network transactions are cheaper than on-chain BCH transactions. This user also went on to complain on /bitcoin that his "real" numbers were getting downvoted
I was initially going to respond to his post, but after I typed some of my response, I realized it is relevant to a wider Bitcoin audience and the level of analysis done warranted a new post. This wound up being the longest post I've ever written, so I hope you agree.
I've placed the TL;DR at the top and bottom for the simple reason that you need to prepare your face... because it's about to get hit with a formidable wall of text.
TL;DR: While Lightning node payments themselves cost less than on-chain BCH payments, the associated overhead currently requires a LN channel to produce 16 transactions just to break-even under ideal 1sat/byte circumstances and substantially more as the fee rate goes up.
Further, the Lightning network can provide no guarantee in its current state to maintain/reduce fees to 1sat/byte.

Let's Begin With An Ideal World
Lightning network fees themselves are indeed cheaper than Bitcoin Cash fees, but in order to get to a state where a Lightning network fee can be made, you are required to open a channel, and to get to a state where those funds are spendable, you must close that channel.
On the Bitcoin network, the minimum accepted fee is 1sat/byte so for now, we'll assume that ideal scenario of 1sat/byte. We'll also assume the open and close is sent as a simple native Segwit transaction with a weighted size of 141 bytes. Because we have to both open and close, this 141 byte fee will be incurred twice. The total fee for an ideal open/close transaction is 1.8¢
For comparison, a simple transaction on the BCH network requires 226 bytes one time. The minimum fee accepted next-block is 1sat/byte. At the time of writing an ideal BCH transaction fee costs ~ 0.11¢
This means that under idealized circumstances, you must currently make at least 16 transactions on a LN channel to break-even with fees
Compounding Factors
Our world is not ideal, so below I've listed compounding factors, common arguments, an assessment, and whether the problem is solvable.
Problem 1: Bitcoin and Bitcoin Cash prices are asymmetrical.
Common arguments:
BTC: If Bitcoin Cash had the same price, the fees would be far higher
Yes, this is true. If Bitcoin Cash had the same market price as Bitcoin, our ideal scenario changes substantially. An open and close on Bitcoin still costs 1.8¢ while a simple Bitcoin Cash transaction now costs 1.4¢. The break-even point for a Lightning Channel is now only 2 transactions.
Is this problem solvable?
Absolutely.
Bitcoin Cash has already proposed a reduction in fees to 1sat for every 10 bytes, and that amount can be made lower by later proposals. While there is no substantial pressure to implement this now, if Bitcoin Cash had the same usage as Bitcoin currently does, it is far more likely to be implemented. If implemented at the first proposed reduction rate, under ideal circumstances, a Lightning Channel would need to produce around 13 transactions for the new break even.
But couldn't Bitcoin reduce fees similarly
The answer there is really tricky. If you reduce on-chain fees, you reduce the incentive to use the Lightning Network as the network becomes more hospitable to micropaments. This would likely increase the typical mempool state and decrease the Lightning Channel count some. The upside is that when the mempool saturates with low transaction fees, users are then re-incentivized to use the lightning network after the lowes fees are saturated with transactions. This should, in theory, produce some level of a transaction fee floor which is probably higher on average than 0.1 sat/byte on the BTC network.
Problem 2: This isn't an ideal world, we can't assume 1sat/byte fees
Common arguments:
BCH: If you tried to open a channel at peak fees, you could pay $50 each way
BTC: LN wasn't implemented which is why the fees are low now
Both sides have points here. It's true that if the mempool was in the same state as it was in December of 2017, that a user could have potentially been incentivized to pay an open and close channel fee of up to 1000 sat/byte to be accepted in a reasonable time-frame.
With that being said, two factors have resulted in a reduced mempool size of Bitcoin: Increased Segwit and Lightning Network Usage, and an overall cooling of the market.
I'm not going to speculate as to what percentage of which is due to each factor. Instead, I'm going to simply analyze mempool statistics for the last few months where both factors are present.
Let's get an idea of current typical Bitcoin network usage fees by asking Johoe quick what the mempool looks like.
For the last few months, the bitcoin mempool has followed almost the exact same pattern. Highest usage happens between 10AM and 3PM EST with a peak around noon. Weekly, usage usually peaks on Tuesday or Wednesday with enough activity to fill blocks with at least minimum fee transactions M-F during the noted hours and usually just shy of block-filling capacity on Sat and Sun.
These observations can be additionally evidenced by transaction counts on bitinfocharts. It's also easier to visualize on bitinfocharts over a longer time-frame.
Opening a channel
Under pre-planned circumstances, you can offload channel creation to off-peak hours and maintain a 1sat/byte rate. The primary issue arises in situations where either 1) LN payments are accepted and you had little prior knowledge, or 2) You had a previous LN pathway to a known payment processor and one or more previously known intermediaries are offline or otherwise unresponsive causing the payment to fail.
Your options are:
A) Create a new LN channel on-the-spot where you're likely to incur current peak fee rates of 5-20sat/byte.
B) Create an on-chain payment this time and open a LN channel when fees are more reasonable.
C) Use an alternate currency for the transaction.
There is a fundamental divide among the status of C. Some people view Bitcoin as (primarily) a storage of value, and thus as long as there are some available onramps and offramps, the currency will hold value. There are other people who believe that fungibility is what gives cryptocurrency it's value and that option C would fundamentally undermine the value of the currency.
I don't mean to dismiss either argument, but option C opens a can of worms that alone can fill economic textbooks. For the sake of simplicity, we will throw out option C as a possibility and save that debate for another day. We will simply require that payment is made in crypto.
With option B, you would absolutely need to pay the peak rate (likely higher) for a single transaction as a Point-of-Sale scenario with a full mempool would likely require at least one confirm and both parties would want that as soon as possible after payment. It would not be unlikely to pay 20-40 sat/byte on a single transaction and then pay 1sat/byte for an open and close to enable LN payments later. Even in the low end, the total cost is 20¢ for on-chain + open + close.
With present-day-statistics, your LN would have to do 182 transactions to make up for the one peak on-chain transaction you were forced to do.
With option A, you still require one confirm. Let's also give the additional leeway that in this scenario you have time to sit and wait a couple of blocks for your confirm before you order / pay. You can thus pay peak rates alone and not peak + ensure next block rates. This will most likely be in the 5-20 sat/byte range. With 5sat/byte open and 1sat/byte close, your LN would have to do 50 transactions to break even
In closing, fees are incurred by the funding channel, so there could be scenarios where the receiving party is incentivized to close in order to spend outputs and the software automatically calculates fees based on current rates. If this is the case, the receiving party could incur a higher-than-planned fee to the funding party.
With that being said, any software that allows the funding party to set the fee beforehand would avoid unplanned fees, so we'll assume low fees for closing.
Is this problem solvable?
It depends.
In order to avoid the peak-fee open/close ratio problem, the Bitcoin network either needs to have much higher LN / Segwit utilization, or increase on-chain capacity. If it gets to a point where transactions stack up, users will be required to pay more than 1sat/byte per transaction and should expect as much.
Current Bitcoin network utilization is close enough to 100% to fill blocks during peak times. I also did an export of the data available at Blockchair.com for the last 3000 blocks which is approximately the last 3 weeks of data. According to their block-weight statistics, The average Bitcoin block is 65.95% full. This means that on-chain, Bitcoin can only increase in transaction volume by around 50% and all other scaling must happen via increased Segwit and LN use.
Problem 3: You don't fully control your LN channel states.
Common arguments:
BCH: You can get into a scenario where you don't have output capacity and need to open a new channel.
BCH: A hostile actor can cause you to lose funds during a high-fee situation where a close is forced.
BTC: You can easily re-load your channel by pushing outbound to inbound.
BCH: You can't control whether nodes you connect to are online or offline.
There's a lot to digest here, but LN is essentially a 2-way contract between 2 parties. Not only does the drafting party pay the fees as of right now, but connected 3rd-parties can affect the state of this contract. There are some interesting scenarios that develop because of it and you aren't always in full control of what side.
Lack of outbound capacity
First, it's true that if you run out of outbound capacity, you either need to reload or create a new channel. This could potentially require 0, 1, or 2 additional on-chain transactions.
If a network loop exists between a low-outbound-capacity channel and yourself, you could push transactional capacity through the loop back to the output you wish to spend to. This would require 0 on-chain transactions and would only cost 1 (relatively negligible) LN fee charge. For all intents and purposes... this is actually kind of a cool scenario.
If no network loop exists from you-to-you, things get more complex. I've seen proposals like using Bitrefill to push capacity back to your node. In order to do this, you would have an account with them and they would lend custodial support based on your account. While people opting for trustless money would take issue in 3rd party custodians, I don't think this alone is a horrible solution to the LN outbound capacity problem... Although it depends on the fee that bitrefill charges to maintain an account and account charges could negate the effectiveness of using the LN. Still, we will assume this is a 0 on-chain scenario and would only cost 1 LN fee which remains relatively negligible.
If no network loop exists from you and you don't have a refill service set up, you'll need at least one on-chain payment to another LN entity in exchange for them to push LN capacity to you. Let's assume ideal fee rates. If this is the case, your refill would require an additional 7 transactions for that channel's new break-even. Multiply that by number of sat/byte if you have to pay more.
Opening a new channel is the last possibility and we go back to the dynamics of 13 transactions per LN channel in the ideal scenario.
Hostile actors
There are some potential attack vectors previously proposed. Most of these are theoretical and/or require high fee scenarios to come about. I think that everyone should be wary of them, however I'm going to ignore most of them again for the sake of succinctness.
This is not to be dismissive... it's just because my post length has already bored most casual readers half to death and I don't want to be responsible for finishing the job.
Pushing outbound to inbound
While I've discussed scenarios for this push above, there are some strange scenarios that arise where pushing outbound to inbound is not possible and even some scenarios where a 3rd party drains your outbound capacity before you can spend it.
A while back I did a testnet simulation to prove that this scenario can and will happen it was a post response that happened 2 weeks after the initial post so it flew heavily under the radar, but the proof is there.
The moral of this story is in some scenarios, you can't count on loaded network capacity to be there by the time you want to spend it.
Online vs Offline Nodes
We can't even be sure that a given computer is online to sign a channel open or push capacity until we try. Offline nodes provide a brick-wall in the pathfinding algorithm so an alternate route must be found. If we have enough channel connectivity to be statistically sure we can route around this issue, we're in good shape. If not, we're going to have issues.
Is this problem solvable?
Only if the Lightning network can provide an (effectively) infinite amount of capacity... but...
Problem 4: Lightning Network is not infinite.
Common arguments:
BTC: Lightning network can scale infinitely so there's no problem.
Unfortunately, LN is not infinitely scalable. In fact, finding a pathway from one node to another is roughly the same problem as the traveling salesman problem. Dijkstra's algorithm which is a problem that diverges polynomially. The most efficient proposals have a difficulty bound by O(n^2).
Note - in the above I confused the complexity of the traveling salesman problem with Dijkstra when they do not have the same bound. With that being said, the complexity of the LN will still diverge with size
In lay terms, what that means is every time you double the size of the Lightning Network, finding an indirect LN pathway becomes 4 times as difficult and data intensive. This means that for every doubling, the amount of traffic resulting from a single request also quadruples.
You can potentially temporarily mitigate traffic by bounding the number of hops taken, but that would encourage a greater channel-per-user ratio.
For a famous example... the game "6 degrees of Kevin Bacon" postulates that Kevin Bacon can be connected by co-stars to any movie by 6 degrees of separation. If the game is reduced to "4 degrees of Kevin Bacon," users of this network would still want as many connections to be made, so they'd be incentivized to hire Kevin Bacon to star in everything. You'd start to see ridiculous mash-ups and reboots just to get more connectivity... Just imagine hearing Coming soon - Kevin Bacon and Adam Sandlar star in "Billy Madison 2: Replace the face."
Is this problem solvable?
Signs point to no.
So technically, if the average computational power and network connectivity can handle the problem (the number of Lightning network channels needed to connect the world)2 in a trivial amount of time, Lightning Network is effectively infinite as the upper bound of a non-infinite earth would limit time-frames to those that are computationally feasible.
With that being said, BTC has discussed Lightning dev comments before that estimated a cap of 10,000 - 1,000,000 channels before problems are encountered which is far less than the required "number of channels needed to connect the world" level.
In fact SHA256 is a newer NP-hard problem than the traveling saleseman problem. That means that statistically, and based on the amount of review that has been given to each problem, it is more likely that SHA256 - the algorithm that lends security to all of bitcoin - is cracked before the traveling salesman problem is. Notions that "a dedicated dev team can suddenly solve this problem, while not technically impossible, border on statistically absurd.
Edit - While the case isn't quite as bad as the traveling salesman problem, the problem will still diverge with size and finding a more efficient algorithm is nearly as unlikely.
This upper bound shows that we cannot count on infinite scalability or connectivity for the lightning network. Thus, there will always be on-chain fee pressure and it will rise as the LN reaches it's computational upper-bound.
Because you can't count on channel states, the on-chain fee pressure will cause typical sat/byte fees to raise. The higher this rate, the more transactions you have to make for a Lightning payment open/close operation to pay for itself.
This is, of course unless it is substantially reworked or substituted for a O(log(n))-or-better solution.
Finally, I'd like to add, creating an on-chain transaction is a set non-recursive, non looping function - effectively O(1), sending this transaction over a peer-to-peer network is bounded by O(log(n)) and accepting payment is, again, O(1). This means that (as far as I can tell) on-chain transactions (very likely) scale more effectively than Lightning Network in its current state.
Additional notes:
My computational difficulty assumptions were based on a generalized, but similar problem set for both LN and on-chain instances. I may have overlooked additional steps needed for the specific implementation, and I may have overlooked reasons a problem is a simplified version requiring reduced computational difficulty.
I would appreciate review and comment on my assumptions for computational difficulty and will happily correct said assumptions if reasonable evidence is given that a problem doesn't adhere to listed computational difficulty.
TL;DR: While Lightning node payments themselves cost less than on-chain BCH payments, the associated overhead currently requires a LN channel to produce 16 transactions just to break-even under ideal 1sat/byte circumstances and substantially more as the fee rate goes up.
Further, the Lightning network can provide no guarantee in its current state to maintain/reduce fees to 1sat/byte.
submitted by CaptainPatent to btc [link] [comments]

Which are your top 5 coins out of the top100? An analysis.

I am putting together my investment portfolio for 2018 and made a complete summary of the current Top 100. Interestingly, I noticed that all coins can be categorized into 12 markets. Which markets do you think will play the biggest role in the coming year?
Here is a complete overview of all coins in an excel sheet including name, a full description, market, TPS, risk profile, time since launch (negative numbers mean that they are launching that many months in the future) and market cap. You can also sort by all of these fields of course. Coins written in bold are the strongest contenders within their market either due to having the best technology or having a small market cap and still excellent technology and potential. https://docs.google.com/spreadsheets/d/1s8PHcNvvjuy848q18py_CGcu8elRGQAUIf86EYh4QZo/edit#gid=0
The 12 markets are
  1. Currency 13 coins
  2. Platform 25 coins
  3. Ecosystem 9 coins
  4. Privacy 9 coins
  5. Currency Exchange Tool 8 coins
  6. Gaming & Gambling 4 coins
  7. Misc 15 coins
  8. Social Network 4 coins
  9. Fee Token 3 coins
  10. Decentralized Data Storage 4 coins
  11. Cloud Computing 2 coins
  12. Stable Coin 3 coins
Before we look at the individual markets, we need to take a look of the overall market and its biggest issue, scalability, first:
Cryptocurrencies aim to be a decentralized currency that can be used worldwide. Their goal is to replace dollar, Euro, Yen, all FIAT currencies globally. The coin that will achieve that will be worth several trillion dollars.
Bitcoin can only process 7 transactions per second (TPS) currently. In order to replace all FIAT, it would need to perform at least at VISA levels, which usually processes around 3,000 TPS, up to 25,000 TPS during peak times and a maximum of 64,000 TPS. That means that this cryptocurrency would need to be able to perform at least several thousand TPS. However, a ground breaking technology should not look at current technology to set a goal for its use, i.e. estimating the number of emails sent in 1990 based on the number of faxes sent wasn’t a good estimate.
For that reason, 10,000 TPS is the absolute baseline for a cryptocurrency that wants to replace FIAT. This brings me to IOTA, which wants to connect all 80 billion IoT devices that are expected to exist by 2025, which constantly communicate with each other, possibly creating 80 billion or more transactions per second. This is the benchmark that cryptocurrencies should be aiming for. Currently, 8 billion devices are connected to the Internet.
With its Lightning network recently launched, Bitcoin is realistically looking at 50,000 possible TPS soon. Other notable cryptocurrencies besides IOTA and Bitcoin are Nano with 7,000 TPS already tested, Dash with several billion TPS possible with Masternodes, Neo, LISK and RHOC with 100,000 TPS by 2020, Ripple with 50,000 TPS, Ethereum with 10,000 TPS with Sharding.
However, it needs to be said that scalability usually goes at the cost of decentralization and security. So, it needs to be seen, which of these technologies can prove themselves decentralized while maintaining high TPS.
Without further ado, here are the coins of the first market. Each market is sorted by market cap.

Market 1 - Currency:

  1. Bitcoin: 1st generation blockchain with currently bad scalability, though the implementation of the Lightning Network looks promising and could alleviate most scalability and high energy use concerns.
  2. Ripple: Centralized currency that might become very successful due to tight involvement with banks and cross-border payments for financial institutions; banks and companies like Western Union and Moneygram (who they are currently working with) as customers customers. However, it seems they are aiming for more decentralization now.https://ripple.com/dev-blog/decentralization-strategy-update/. Has high TPS due to Proof of Correctness algorithm.
  3. Bitcoin Cash: Bitcoin fork with the difference of having an 8 times bigger block size, making it 8 times more scalable than Bitcoin currently. Further block size increases are planned. Only significant difference is bigger block size while big blocks lead to further problems that don't seem to do well beyond a few thousand TPS. Opponents to a block size argue that increasing the block size limit is unimaginative, offers only temporary relief, and damages decentralization by increasing costs of participation. In order to preserve decentralization, system requirements to participate should be kept low. To understand this, consider an extreme example: very big blocks (1GB+) would require data center level resources to validate the blockchain. This would preclude all but the wealthiest individuals from participating.Community seems more open than Bitcoin's though.
  4. Litecoin : Little brother of Bitcoin. Bitcoin fork with different mining algorithm but not much else.Copies everything that Bitcoin does pretty much. Lack of real innovation.
  5. Dash: Dash (Digital Cash) is a fork of Bitcoin and focuses on user ease. It has very fast transactions within seconds, low fees and uses Proof of Service from Masternodes for consensus. They are currently building a system called Evolution which will allow users to send money using usernames and merchants will find it easy to integrate Dash using the API. You could say Dash is trying to be a PayPal of cryptocurrencies. Currently, cryptocurrencies must choose between decentralization, speed, scalability and can pick only 2. With Masternodes, Dash picked speed and scalability at some cost of decentralization, since with Masternodes the voting power is shifted towards Masternodes, which are run by Dash users who own the most Dash.
  6. IOTA: 3rd generation blockchain called Tangle, which has a high scalability, no fees and instant transactions. IOTA aims to be the connective layer between all 80 billion IOT devices that are expected to be connected to the Internet in 2025, possibly creating 80 billion transactions per second or 800 billion TPS, who knows. However, it needs to be seen if the Tangle can keep up with this scalability and iron out its security issues that have not yet been completely resolved.
  7. Nano: 3rd generation blockchain called Block Lattice with high scalability, no fees and instant transactions. Unlike IOTA, Nano only wants to be a payment processor and nothing else, for now at least. With Nano, every user has their own blockchain and has to perform a small amount of computing for each transaction, which makes Nano perform at 300 TPS with no problems and 7,000 TPS have also been tested successfully. Very promising 3rd gen technology and strong focus on only being the fastest currency without trying to be everything.
  8. Decred: As mining operations have grown, Bitcoin’s decision-making process has become more centralized, with the largest mining companies holding large amounts of power over the Bitcoin improvement process. Decred focuses heavily on decentralization with their PoW Pos hybrid governance system to become what Bitcoin was set out to be. They will soon implement the Lightning Network to scale up. While there do not seem to be more differences to Bitcoin besides the novel hybrid consensus algorithm, which Ethereum, Aeternity and Bitcoin Atom are also implementing, the welcoming and positive Decred community and professoinal team add another level of potential to the coin.
  9. Bitcoin Atom: Atomic Swaps and hybrid consenus. This looks like the only Bitcoin clone that actually is looking to innovate next to Bitcoin Cash.
  10. Dogecoin: Litecoin fork, fantastic community, though lagging behind a bit in technology.
  11. Bitcoin Gold: A bit better security than bitcoin through ASIC resistant algorithm, but that's it. Not that interesting.
  12. Digibyte: Digibyte's PoS blockchain is spread over a 100,000+ servers, phones, computers, and nodes across the globe, aiming for the ultimate level of decentralization. DigiByte’s adoption over the past four years has been slow. The DigiByte website offers a lot of great marketing copy and buzzwords. However, there’s not much technical information about what they have planned for the future. You could say Digibyte is like Bitcoin, but with shorter blocktimes and a multi-algorithm. However, that's not really a difference big enough to truly set themselves apart from Bitcoin, since these technologies could be implemented by any blockchain without much difficulty. Their decentralization is probably their strongest asset, however, this also change quickly if the currency takes off and big miners decide to go into Digibyte.
  13. Bitcoin Diamond Asic resistant Bitcoin and Copycat

Market 2 - Platform

Most of the cryptos here have smart contracts and allow dapps (Decentralized apps) to be build on their platform and to use their token as an exchange of value between dapp services.
  1. Ethereum: 2nd generation blockchain that allows the use of smart contracts. Bad scalability currently, though this concern could be alleviated by the soon to be implemented Lightning Network aka the Raiden Network, Plasma and its Sharding concept.
  2. EOS: Promising technology that wants to be able do everything, from smart contracts like Ethereum, scalability similar to Nano with 1000 tx/second + near instant transactions and zero fees, to also wanting to be a platform for dapps. However, EOS doesn't have a product yet and everything is just promises still. There are lots of red flags, e.g. having dumped $500 million Ether over the last 2 months and possibly bought back EOS to increase the size of their ICO, which has been going on for over a year and has raised several billion dollars. All in all, their market cap is way too high for that and not even having a product. However, Mainnet release is in 1 month, which could change everything.
  3. Cardano: Similar to Ethereum/EOS, however, only promises made with no delivery yet, highly overrated right now. Interesting concept though. Market cap way too high for not even having a product. Somewhat promising technology.
  4. VeChain: Singapore-based project that’s building a business enterprise platform and inventory tracking system. Examples are verifying genuine luxury goods and food supply chains. Has one of the strongest communities in the crypto world. Most hyped token of all, with merit though.
  5. Neo: Neo is a platform, similar to Eth, but more extensive, allowing dapps and smart contracts, but with a different smart contract gas system, consensus mechanism (PoS vs. dBfT), governance model, fixed vs unfixed supply, expensive contracts vs nearly free contracts, different ideologies for real world adoption. There are currently only 9 nodes, each of which are being run by a company/entity hand selected by the NEO council (most of which are located in china) and are under contract. This means that although the locations of the nodes may differ, ultimately the neo council can bring them down due to their legal contracts. In fact this has been done in the past when the neo council was moving 50 million neo that had been locked up. Also dbft (or neo's implmentation of it) has failed underload causing network outages during major icos. The first step in decentralization is that the NEO Counsel will select trusted nodes (Universities, business partners, etc.) and slowly become less centralized that way. The final step in decentralization will be allowing NEO holders to vote for new nodes, similar to a DPoS system (ARK/EOS/LISK). NEO has a regulation/government friendly ideology. Finally they are trying to work undewith the Chinese government in regards to regulations. If for some reason they wanted it shut down, they could just shut it down.
  6. Stellar:PoS system, similar goals as Ripple, but more of a platform than only a currency. 80% of Stellar are owned by Stellar.org still, making the currency centralized.
  7. Ethereum classic: Original Ethereum that decided not to fork after a hack. The Ethereum that we know is its fork. Uninteresing, because it has a lot of less resources than Ethereum now and a lot less community support.
  8. Ziliqa: Zilliqa is building a new way of sharding. 2400 tpx already tested, 10,000 tps soon possible by being linearly scalable with the number of nodes. That means, the more nodes, the faster the network gets. They are looking at implementing privacy as well.
  9. QTUM: Enables Smart contracts on the Bitcoin blockchain. Useful.
  10. Icon: Korean ethereum. Decentralized application platform that's building communities in partnership with banks, insurance providers, hospitals, and universities. Focused on ID verification and payments.
  11. LISK: Lisk's difference to other BaaS is that side chains are independent to the main chain and have to have their own nodes. Similar to neo whole allows dapps to deploy their blockchain to. Like most cryptocurrencies, Lisk is currently somewhat centralized with a small group of members owning more than 50% of the delegated positions. Lisk plans to change the consensus algorithm for that reason in the near future.
  12. Rchain: Similar to Ethereum with smart contract, though much more scalable at an expected 40,000 TPS and possible 100,000 TPS. Not launched yet. No product launched yet, though promising technology. Not overvalued, probably at the right price right now.
  13. ARDR: Similar to Lisk. Ardor is a public blockchain platform that will allow people to utilize the blockchain technology of Nxt through the use of child chains. A child chain, which is a ‘light’ blockchain that can be customized to a certain extent, is designed to allow easy self-deploy for your own blockchain. Nxt claims that users will "not need to worry" about security, as that part is now handled by the main chain (Ardor). This is the chief innovation of Ardor. Ardor was evolved from NXT by the same company. NEM started as a NXT clone.
  14. Ontology: Similar to Neo. Interesting coin
  15. Bytom: Bytom is an interactive protocol of multiple byte assets. Heterogeneous byte-assets (indigenous digital currency, digital assets) that operate in different forms on the Bytom Blockchain and atomic assets (warrants, securities, dividends, bonds, intelligence information, forecasting information and other information that exist in the physical world) can be registered, exchanged, gambled and engaged in other more complicated and contract-based interoperations via Bytom.
  16. Nxt: Similar to Lisk
  17. Aeternity: We’ve seen recently, that it’s difficult to scale the execution of smart contracts on the blockchain. Crypto Kitties is a great example. Something as simple as creating and trading unique assets on Ethereum bogged the network down when transaction volume soared. Ethereum and Zilliqa address this problem with Sharding. Aeternity focuses on increasing the scalability of smart contracts and dapps by moving smart contracts off-chain. Instead of running on the blockchain, smart contracts on Aeternity run in private state channels between the parties involved in the contracts. State channels are lines of communication between parties in a smart contract. They don’t touch the blockchain unless they need to for adjudication or transfer of value. Because they’re off-chain, state channel contracts can operate much more efficiently. An important aspect of smart contract and dapp development is access to outside data sources. This could mean checking the weather in London, score of a football game, or price of gold. Oracles provide access to data hosted outside the blockchain. In many blockchain projects, oracles represent a security risk and potential point of failure, since they tend to be singular, centralized data streams. Aeternity proposes decentralizing oracles with their oracle machine. Doing so would make outside data immutable and unchangeable once it reaches Aeternity’s blockchain. Aeternity’s network runs on on a hybrid of proof of work and proof of stake. Founded by a long-time crypto-enthusiast and early colleague of Vitalik Buterin, Yanislav Malahov. Promising concept though not product yet
  18. Stratis: Different to LISK, Stratis will allow businesses and organizations to create their own blockchain according to their own needs, but secured on the parent Stratis chain. Stratis’s simple interface will allow organizations to quickly and easily deploy and/or test blockchain functionality of the Ethereum, BitShares, BitCoin, Lisk and Stratis environements.
  19. Status: Status provides access to all of Ethereum’s decentralized applications (dapps) through an app on your smartphone. It opens the door to mass adoption of Ethereum dapps by targeting the fastest growing computer segment in the world – smartphone users.
  20. Ark: Fork of Lisk that focuses on a smaller feature set. Ark wallets can only vote for one delegate at a time which forces delegates to compete against each other and makes cartel formations incredibly hard, if not impossible.
  21. Neblio: Similar to Neo, but at a 30x smaller market cap.
  22. NEM: Is similar to Neo. However, it has no marketing team, very high market cap for little clarilty what they do.
  23. Bancor: Bancor is a Decentralized Liquidity Network that allows you to hold any Ethereum token and convert it to any other token in the network, with no counter party, at an automatically calculated price, using a simple web wallet.
  24. Dragonchain: The Purpose of DragonChain is to help companies quickly and easily incorporate blockchain into their business applications. Many companies might be interested in making this transition because of the benefits associated with serving clients over a blockchain – increased efficiency and security for transactions, a reduction of costs from eliminating potential fraud and scams, etc.
  25. Skycoin: Transactions with zero fees that take apparently two seconds, unlimited transaction rate, no need for miners and block rewards, low power usage, all of the usual cryptocurrency technical vulnerabilities fixed, a consensus mechanism superior to anything that exists, resistant to all conceivable threats (government censorship, community infighting, cybenucleaconventional warfare, etc). Skycoin has their own consensus algorithm known as Obelisk written and published academically by an early developer of Ethereum. Obelisk is a non-energy intensive consensus algorithm based on a concept called ‘web of trust dynamics’ which is completely different to PoW, PoS, and their derivatives. Skywire, the flagship application of Skycoin, has the ambitious goal of decentralizing the internet at the hardware level and is about to begin the testnet in April. However, this is just one of the many facets of the Skycoin ecosystem. Skywire will not only provide decentralized bandwidth but also storage and computation, completing the holy trinity of commodities essential for the new internet. Skycion a smear campaign launched against it, though they seem legit and reliable. Thus, they are probably undervalued.

Market 3 - Ecosystem

The 3rd market with 11 coins is comprised of ecosystem coins, which aim to strengthen the ease of use within the crypto space through decentralized exchanges, open standards for apps and more
  1. Nebulas: Similar to how Google indexes webpages Nebulas will index blockchain projects, smart contracts & data using the Nebulas rank algorithm that sifts & sorts the data. Developers rewarded NAS to develop & deploy on NAS chain. Nebulas calls this developer incentive protocol – basically rewards are issued based on how often dapp/contract etc. is used, the more the better the rewards and Proof of devotion. Works like DPoS except the best, most economically incentivised developers (Bookkeeppers) get the forging spots. Ensuring brains stay with the project (Cross between PoI & PoS). 2,400 TPS+, DAG used to solve the inter-transaction dependencies in the PEE (Parallel Execution Environment) feature, first crypto Wallet that supports the Lightening Network.
  2. Waves: Decentralized exchange and crowdfunding platform. Let’s companies and projects to issue and manage their own digital coin tokens to raise money.
  3. Salt: Leveraging blockchain assets to secure cash loands. Plans to offer cash loans in traditional currencies, backed by your cryptocurrency assets. Allows lenders worldwide to skip credit checks for easier access to affordable loans.
  4. CHAINLINK: ChainLink is a decentralized oracle service, the first of its kind. Oracles are defined as an ‘agent’ that finds and verifies real-world occurrences and submits this information to a blockchain to be used in smart contracts.With ChainLink, smart contract users can use the network’s oracles to retrieve data from off-chain application program interfaces (APIs), data pools, and other resources and integrate them into the blockchain and smart contracts. Basically, ChainLink takes information that is external to blockchain applications and puts it on-chain. The difference to Aeternity is that Chainlink deploys the smart contracts on the Ethereum blockchain while Aeternity has its own chain.
  5. WTC: Combines blockchain with IoT to create a management system for supply chains Interesting
  6. Ethos unifyies all cryptos. Ethos is building a multi-cryptocurrency phone wallet. The team is also building an investment diversification tool and a social network
  7. Komodo: The Komodo blockchain platform uses Komodo’s open-source cryptocurrency for doing transparent, anonymous, private, and fungible transactions. They are then made ultra-secure using Bitcoin’s blockchain via a Delayed Proof of Work (dPoW) protocol and decentralized crowdfunding (ICO) platform to remove middlemen from project funding. Offers services for startups to create and manage their own Blockchains.
  8. Aion: Today, there are hundreds of blockchains. In the coming years, with widespread adoption by mainstream business and government, these will be thousands or millions. Blockchains don’t talk to each other at all right now, they are like the PCs of the 1980s. The Aion network is able to support custom blockchain architectures while still allowing for cross-chain interoperability by enabling users to exchange data between any Aion-compliant blockchains by making use of an interchain framework that allows for messages to be relayed between blockchains in a completely trust-free manner.
  9. Tenx: Raised 80 million, offers cryptocurrency-linked credit cards that let you spend virtual money in real life. Developing a series of payment platforms to make spending cryptocurrency easier.

Market 4 - Privacy

The 4th market are privacy coins. As you might know, Bitcoin is not anonymous. If the IRS or any other party asks an exchange who is the identity behind a specific Bitcoin address, they know who you are and can track back almost all of the Bitcoin transactions you have ever made and all your account balances. Privacy coins aim to prevent exactly that through address fungability, which changes addresses constantly, IP obfuscation and more. There are 2 types of privacy coins, one with completely privacy and one with optional privacy. Optional Privacy coins like Dash and Nav have the advantage of more user friendliness over completely privacy coins such as Monero and Enigma.
  1. Monero: Currently most popular privacy coin, though with a very high market cap. Since their privacy is all on chain, all prior transactions would be deanonymized if their protocol is ever cracked. This requires a quantum computing attack though. PIVX is better in that regard.
  2. Zcash: A decentralized and open-source cryptocurrency that hide the sender, recipient, and value of transactions. Offers users the option to make transactions public later for auditing. Decent privacy coin, though no default privacy
  3. Verge: Calls itself privacy coin without providing private transactions, multiple problems over the last weeks has a toxic community, and way too much hype for what they have.
  4. Bytecoin: First privacy-focused cryptocurrency with anonymous transactions. Bytecoin’s code was later adapted to create Monero, the more well-known anonymous cryptocurrency. Has several scam accusations, 80% pre-mine, bad devs, bad tech
  5. Bitcoin Private: A merge fork of Bitcoin and Zclassic with Zclassic being a fork of Zcash with the difference of a lack of a founders fee required to mine a valid block. This promotes a fair distribution, preventing centralized coin ownership and control. Bitcoin private offers the optional ability to keep the sender, receiver, and amount private in a given transaction. However, this is already offered by several good privacy coins (Monero, PIVX) and Bitcoin private doesn't offer much more beyond this.
  6. PIVX: As a fork of Dash, PIVX uses an advanced implementation of the Zerocoin protocol to provide it’s privacy. This is a form of zeroknowledge proofs, which allow users to spend ‘Zerocoins’ that have no link back to them. Unlike Zcash u have denominations in PIVX, so they can’t track users by their payment amount being equal to the amount of ‘minted’ coins, because everyone uses the same denominations. PIVX is also implementing Bulletproofs, just like Monero, and this will take care of arguably the biggest weakness of zeroknowledge protocols: the trusted setup.
  7. Zcoin: PoW cryptocurrency. Private financial transactions, enabled by the Zerocoin Protocol. Zcoin is the first full implementation of the Zerocoin Protocol, which allows users to have complete privacy via Zero-Knowledge cryptographic proofs.
  8. Enigma: Monero is to Bitcoin what enigma is to Ethereum. Enigma is for making the data used in smart contracts private. More of a platform for dapps than a currency like Monero. Very promising.
  9. Navcoin: Like bitcoin but with added privacy and pos and 1,170 tps, but only because of very short 30 second block times. Though, privacy is optional, but aims to be more user friendly than Monero. However, doesn't really decide if it wants to be a privacy coin or not. Same as Zcash.Strong technology, non-shady team.

Market 5 - Currency Exchange Tool

Due to the sheer number of different cryptocurrencies, exchanging one currency for the other it still cumbersome. Further, merchants don’t want to deal with overcluttered options of accepting cryptocurrencies. This is where exchange tool like Req come in, which allow easy and simple exchange of currencies.
  1. Cryptonex: Fiat and currency exchange between various blockchain services, similar to REQ.
  2. QASH: Qash is used to fuel its liquid platform which will be an exchange that will distribute their liquidity pool. Its product, the Worldbook is a multi-exchange order book that matches crypto to crypto, and crypto to fiat and the reverse across all currencies. E.g., someone is selling Bitcoin is USD on exchange1 not owned by Quoine and someone is buying Bitcoin in EURO on exchange 2 not owned by Quoine. They turned it on to test it a few months ago for an hour or so and their exchange was the top exchange in the world by 4x volume for the day because all Worldbook trades ran through it. Binance wants BNB to be used on their one exchange. Qash wants their QASH token embedded in all of their partners.
  3. Kyber: network Exchange between cryptocurrencies, similar to REQ. Features automatic coin conversions for payments. Also offers payment tools for developers and a cryptocurrency wallet.
  4. Achain: Building a boundless blockchain world like Req .
  5. Centrality: Centrality is a decentralized market place for dapps that are all connected together on a blockchain-powered system. Centrality aims to allow businesses to work together using blockchain technology. With Centrality, startups can collaborate through shared acquisition of customers, data, merchants, and content. That shared acquisition occurs across the Centrality blockchain, which hosts a number of decentralized apps called Scenes. Companies can use CENTRA tokens to purchase Scenes for their app, then leverage the power of the Centrality ecosystem to quickly scale. Some of Centrality's top dapps are, Skoot, a travel experience marketplace that consists of a virtual companion designed for free independent travelers and inbound visitors, Belong, a marketplace and an employee engagement platform that seems at helping business provide rewards for employees, Merge, a smart travel app that acts as a time management system, Ushare, a transports application that works across rental cars, public transport, taxi services, electric bikes and more. All of these dapps are able to communicate with each other and exchange data through Centrality.
  6. Bitshares: Exchange between cryptocurrencies. Noteworthy are the 1.5 second average block times and throughput potential of 100,000 transactions per second with currently 2,400 TPS having been proven. However, Bitshares had several Scam accusations in the past.
  7. Loopring: A protocol that will enable higher liquidity between exchanges and personal wallets by pooling all orders sent to its network and fill these orders through the order books of multiple exchanges. When using Loopring, traders never have to deposit funds into an exchange to begin trading. Even with decentralized exchanges like Ether Delta, IDex, or Bitshares, you’d have to deposit your funds onto the platform, usually via an Ethereum smart contract. But with Loopring, funds always remain in user wallets and are never locked by orders. This gives you complete autonomy over your funds while trading, allowing you to cancel, trim, or increase an order before it is executed.
  8. ZRX: Open standard for dapps. Open, permissionless protocol allowing for ERC20 tokens to be traded on the Ethereum blockchain. In 0x protocol, orders are transported off-chain, massively reducing gas costs and eliminating blockchain bloat. Relayers help broadcast orders and collect a fee each time they facilitate a trade. Anyone can build a relayer.

Market 6 - Gaming

With an industry size of $108B worldwide, Gaming is one of the largest markets in the world. For sure, cryptocurrencies will want to have a share of that pie.
  1. Storm: Mobile game currency on a platform with 9 million players.
  2. Fun: A platform for casino operators to host trustless, provably-fair gambling through the use of smart contracts, as well as creating their own implementation of state channels for scalability.
  3. Electroneum: Mobile game currency They have lots of technical problems, such as several 51% attacks
  4. Wax: Marketplace to trade in-game items

Market 7 - Misc

There are various markets being tapped right now. They are all summed up under misc.
  1. OMG: Omise is designed to enable financial services for people without bank accounts. It works worldwide and with both traditional money and cryptocurrencies.
  2. Power ledger: Australian blockchain-based cryptocurrency and energy trading platform that allows for decentralized selling and buying of renewable energy. Unique market and rather untapped market in the crypto space.
  3. Populous: Populous is a platform that connects business owners and invoice buyers without middlemen. Furthermore, it is a peer-to-peer (P2P) platform that uses blockchain to provide small and medium-sized enterprises (SMEs) a more efficient way to participate in invoice financing. Businesses can sell their outstanding invoices at a discount to quickly free up some cash. Invoice sellers get cash flow to fund their business and invoice buyers earn interest.
  4. Monacoin: The first Japanese cryptocurrency. Focused on micro-transactions and based on a popular internet meme of a type-written cat. This makes it similar to Dogecoin. Very niche, tiny market.
  5. Revain: Legitimizing reviews via the blockchain. Interesting concept, though market not as big.
  6. Augur: Platform to forecast and make wagers on the outcome of real-world events (AKA decentralized predictions). Uses predictions for a “wisdom of the crowd” search engine. Not launched yet.
  7. Substratum: Revolutionzing hosting industry via per request billing as a decentralized internet hosting system. Uses a global network of private computers to create the free and open internet of the future. Participants earn cryptocurrency. Interesting concept.
  8. Veritaseum: Is supposed to be a peer to peer gateway, though it looks like very much like a scam.
  9. TRON: Tronix is looking to capitalize on ownership of internet data to content creators. However, they plagiarized their white paper, which is a no go. They apologized, so it needs to be seen how they will conduct themselves in the future. Extremely high market cap for not having a product, nor proof of concept.
  10. Syscoin: A cryptocurrency with a decentralized marketplace that lets people buy and sell products directly without third parties. Trying to remove middlemen like eBay and Amazon.
  11. Hshare: Most likely scam because of no code changes, most likely pump and dump scheme, dead community.
  12. BAT: An Ethereum-based token that can be exchanged between content creators, users, and advertisers. Decentralized ad-network that pays based on engagement and attention.
  13. Dent: Decentralizeed exchange of mobile data, enabling mobile data to be marketed, purchased or distributed, so that users can quickly buy or sell data from any user to another one.
  14. Ncash: End to end encrypted Identification system for retailers to better serve their customers .
  15. Factom Secure record-keeping system that allows companies to store their data directly on the Blockchain. The goal is to make records more transparent and trustworthy .

Market 8 - Social network

Web 2.0 is still going strong and Web 3.0 is not going to ignore it. There are several gaming tokens already out there and a few with decent traction already, such as Steem, which is Reddit with voting through money is a very interesting one.
  1. Mithril: As users create content via social media, they will be rewarded for their contribution, the better the contribution, the more they will earn
  2. Steem: Like Reddit, but voting with money. Already launched product and Alexa rank 1,000 Thumbs up.
  3. Rdd: Reddcoin makes the process of sending and receiving money fun and rewarding for everyone. Reddcoin is dedicated to one thing – tipping on social networks as a way to bring cryptocurrency awareness and experience to the general public.
  4. Kin: Token for the platform Kik. Kik has a massive user base of 400 million people. Replacing paying with FIAT with paying with KIN might get this token to mass adoption very quickly.

Market 9 - Fee token

Popular exchanges realized that they can make a few billion dollars more by launching their own token. Owning these tokens gives you a reduction of trading fees. Very handy and BNB (Binance Coin) has been one of the most resilient tokens, which have withstood most market drops over the last weeks and was among the very few coins that could show growth.
  1. BNB: Fee token for Binance
  2. Gas: Not a Fee token for an exchange, but it is a dividend paid out on Neo and a currency that can be used to purchase services for dapps.
  3. Kucoin: Fee token for Kucoin

Market 10 - Decentralized Data Storage

Currently, data storage happens with large companies or data centers that are prone to failure or losing data. Decentralized data storage makes loss of data almost impossible by distributing your files to numerous clients that hold tiny pieces of your data. Remember Torrents? Torrents use a peer-to-peer network. It is similar to that. Many users maintain copies of the same file, when someone wants a copy of that file, they send a request to the peer-to-peer network., users who have the file, known as seeds, send fragments of the file to the requester. The requester receives many fragments from many different seeds, and the torrent software recompiles these fragments to form the original file.
  1. Gbyte: Byteball data is stored and ordered using directed acyclic graph (DAG) rather than blockchain. This allows all users to secure each other's data by referencing earlier data units created by other users, and also removes scalability limits common for blockchains, such as blocksize issue.
  2. Siacoin: Siacoin is decentralized storage platform. Distributes encrypted files to thousands of private users who get paid for renting out their disk space. Anybody with siacoins can rent storage from hosts on Sia. This is accomplish via "smart" storage contracts stored on the Sia blockchain. The smart contract provides a payment to the host only after the host has kept the file for a given amount of time. If the host loses the file, the host does not get paid.
  3. Maidsafecoin: MaidSafe stands for Massive Array of Internet Disks, Secure Access for Everyone.Instead of working with data centers and servers that are common today and are vulnerable to data theft and monitoring, You can think of SAFE as a crowd-sourced internet. It’s an autonomous network that automatically sets prices and distributes data and rents out hard drive disk space with a Blockchain-based storage solutions.When you upload a file to the network, such as a photo, it will be broken into pieces, hashed, and encrypted. Then, redundant copies of the data are created as well so that if someone storing your file turns off their computer, you will still have access to your data. And don’t worry, even with pieces of your data on other people’s computers, they won’t be able to read them. You can earn MadeSafeCoins by participating in storing data pieces from the network on your computer and thus earning a Proof of Resource.
  4. Storj: Storj aims to become a cloud storage platform that can’t be censored or monitored, or have downtime. Your files are encrypted, shredded into little pieces called 'shards', and stored in a decentralized network of computers around the globe. No one but you has a complete copy of your file, not even in an encrypted form.

Market 11 - Cloud computing

Obviously, renting computing power, one of the biggest emerging markets as of recent years, e.g. AWS and Digital Ocean, is also a service, which can be bought and managed via the blockchain.
  1. Golem: Allows easy use of Supercomputer in exchange for tokens. People worldwide can rent out their computers to the network and get paid for that service with Golem tokens.
  2. Elf: Allows easy use of Cloud computing in exchange for tokens.

Market 12 - Stablecoin

Last but not least, there are 2 stablecoins that have established themselves within the market. A stable coin is a coin that wants to be independent of the volatility of the crypto markets. This has worked out pretty well for Maker and DGD, accomplished through a carefully diversified currency fund and backing each token by 1g or real gold respectively. DO NOT CONFUSE DGD AND MAKER with their STABLE COINS DGX and DAI. DGD and MAKER are volatile, because they are the companies of DGX and DAI. DGX and DAI are the stable coins.
  1. DGD: Platform of the Stablecoin DGX. Every DGX coin is backed by 1g of gold and make use proof of asset consensus.
  2. Maker: Platform of the Stablecoin DAI that doesn't vary much in price through widespread and smart diversification of assets.
  3. USDT: is no cryptocurrency really, but a replacement for dollar for trading After months of asking for proof of dollar backing, still no response from Tether.
EDIT: Added a risk factor from 0 to 10. Significant scandals, mishaps, shady practices, questionable technology, increase the risk factor. Not having a product yet automatically means a risk factor of 6. Strong adoption and thus strong scrutiny or positive community lower the risk factor.
EDIT2: Added a subjective potential factor from 0 to 10, where its overall potential and a small or big market cap is factored in. Bitcoin with lots of potential only gets a 9, because of its massive market cap, because if Bitcoin goes 10x, smaller coins go 100x.
submitted by galan77 to ethtrader [link] [comments]

Bottos chain CEO Li Xiang: The future of data securitization, everyone is Xiaolai Li

Bottos chain CEO Li Xiang: The future of data securitization, everyone is Xiaolai Li
A few days ago, the IFIC International Financial Technology Innovation Summit, hosted by People’s Daily People’s Digital, Sanya City Bureau of Commerce, FINWEX, and Guoyin Jinkong, was held in Sanya. At the meeting, Bottos Chain CEO Li Xiang made the theme “The Hope of Machine Civilization”. The speech shows the basic positioning of the Bottos chain “the infrastructure that focuses on artificial intelligence, the application platform that serves data, algorithms and computing power”, and outlines the evolutionary framework of machine civilization to replace industrial civilization. During the meeting, Golden Finance interviewed the Bottos chain CEO Li Xiang.


Bottos CEO Li Xiang

Golden Finance: Please introduce the development track of the Bottos chain?

Li Xiang: According to different development periods, we divide the Bottos chain into 1.0, 2.0 and 3.0.
From 2017 to 2019, Bottos Chain 1.0 — positioned as an artificial intelligence infrastructure. Our entire team spent a year and a half developing BottosChain from 0 to 1, and open source at the end of May 2018, and officially handed over the community to decentralization in December of the same year. As a self-originating public chain, the Bottos chain BottosChain has its own independent property rights in many key technologies. At present, we have applied for 3 key technology patents, which are very flexible in the whole architecture design. We reserve the interface for the AI ​​empowering blockchain, and at the same time have great advantages in commercial performance, and do everything possible to lower the threshold. From 2019 to 2021, it will be Bottos Chain 2.0 — positioned in the artificial intelligence industry. Our goal is to help 10,000 smart DApps to land, securing massive amounts of user data assets, and letting data, computing power, algorithms and other production materials Fast exchange, spiraling out higher AI wisdom, allowing the industry to achieve a higher premium. From 2022 to 2025, the Bottos chain 3.0 is positioned as a revolution in the AI ​​back-feeding blockchain. Based on the accumulated industrial data and machine intelligence of the Bottos chain 2.0, the Bottos chain will pass the underlying code to the robot to optimize and rewrite. The ultimate goal of the first public chain of artificial intelligence. I believe that by 2025, humans no longer need to work. The machine is not only fully qualified for labor, but also the underlying code of the blockchain. In the future, the Bottos chain platform will be used to divide the value of machines and people. At that time, human intelligence will be You can explore the stars and explore the bigger unknowns.

Golden Finance: What do you think is the biggest value of the blockchain?

Li Xiang: Rather than saying that the blockchain creates new value, it is better to say that the blockchain will not be released from the statistical stock value. For example, each of us is generating massive amounts of data every day. When these data are securitized by the blockchain, everyone is Xiaolai Li. The digital economics of Bottos chain cognition is the use of blockchain technology to redistribute the productivity of the digital economy through data, algorithms, and computational power. The Bottos chain is positioned to carry the evolution of artificial intelligence using blockchain technology, and we must share Data asset securitization will bring huge value dividends.
In the era of the Internet, data is centralized, and data obtained from users at no cost has created giant companies such as BAT. In the blockchain era, personal data will truly belong to individuals. Due to the popularity of 5G-promoted ubiquitous Internet of Things, the silent data of tera-sensors will be activated to generate new artificial intelligence, between individuals and individuals outside the BAT client. Obtaining the possibility of peer-to-peer direct sharing of data, we do not need to snatch data from Internet packets, but exchange data directly from the bottom of the sensor through the Internet of Everything. The exchange and superposition of data and data has spawned the spiral evolution of algorithms and computational forces, and then returns the generated value to the individuals of the data source. We can see that the platform built by the Bottos chain carries the closed-loop value of data, algorithms and computing power in the machine civilization. Artificial intelligence is one of the few blockchain fields that can construct an all-digital closed loop. Artificial intelligence is also the only way to bypass Taobao WeChat. This is the value chain of the centralized application, which is the original intention of the Bottos chain to locate artificial intelligence. In the field of artificial intelligence, the main source of value of Keda Xunfei and Shangtang Technology is the free data source provided by millions of users. We can imagine that the market value of the two companies will be divided into millions of users, and the per capita capital will be renewed. Assigning the scene, this is the mission of the Bottos chain.

Golden Finance: How do you see the relationship between artificial intelligence and blockchain now?

Li Xiang: Artificial intelligence is productivity, blockchain is production relations, productivity is that I can destroy you, production relationship is that I can’t directly destroy you, but I can offer the best person to destroy. Productivity creates value, and production relations drive productivity, so they are complementary and can be understood as the poles of Tai Chi. So how many blockchains in the future will have a lot of blockchains to help him achieve value, otherwise he can’t live alone because he didn’t make money. Suppose a developer researches an algorithm, including Bitcoin, which is an algorithm that requires a set of value chains to collaborate and a set of cross-organizational value exchange systems to support. Without a value chain and value mitigation, this algorithm cannot be separated. survive. We have restored this form of bitcoin to countless entrepreneurs, technology workers, man-machine warriors, and data providers, so that they can make new money. Intelligent hardware far exceeds the commercial value of traditional hardware. It comes from its semi-soft and semi-hard features. The soft part can not only capture hard information, perform edge calculation, but also self-purify to rewrite the working mode of hardware. We can simply Understood as a line upgrade on Apple phones. But traditional hardware, it is only hard and not soft, his data is wasted, and he can’t self-evolve. So, the combination of soft and hard is a new life state of the new life, which is the basic unit of machine civilization. Everything in the future is soft and hard, it generates data, and the hardware becomes a living body. This kind of living body will evolve from industrial civilization to machine civilization if it evolves from industrial civilization to machine civilization if it evolves into machines that build machines and machines that write programs (we are writing artificial contracts directly with artificial intelligence).

Golden Finance: What difficulties and challenges did Bottos encounter from its inception to the present, and which pits have been crossed?

Li Xiang: From 2017 to 2019, we have experienced some minor storms. In general, it is a challenge all the way, but in the end, it will turn into a growing nectar. The first is the cognitive challenge. We are a revolutionary platform. Therefore, we advocate the spirit of geeks. Only by breaking through the cognition can we change the world. We believe that the artificial intelligence + blockchain can rewrite human civilization. The future is the age of machine civilization. Everyone is worth the money. It can support countless robots. At the same time, everyone is very profitable because he participates in and shares the feast of machine civilization. This is a huge bonus that the Bottos chain hopes to excavate. Secondly, the technical challenge, blockchain + AI is extremely brain-burning, when black technology encounters black technology, if there is no deep understanding of the two industries, there is no great courage and determination, this double track It is very difficult to do it. Finally, there are challenges in the quality of the team. In the process of project development, there will always be a low point. When there are pressures from all sides, there are new people joining the old people on the road, how the core team keeps the initial heart and the front, I think it is the project. The core factor that can ultimately achieve the goal.

Golden Finance: What is the possible type or industry of DAPP in the future Bottos chain?

Li Xiang: Focusing on data and sensor algorithms, there are many application scenarios, such as travel scenarios, smart home scenarios, car networking scenarios, and then there are a large number of scenarios on the mobile side, or reversed according to value, as long as it can correspond to a billion-dollar The centralized enterprise, we all have the possibility to create a mechanism to take back. At present, artificial intelligence has begun to erupt from visual hearing, such as Keda Xunfei and Shangtang Technology, which have begun to gain a lot of application value. The reason is that the standard of the Turing test is to let the machine have the ability to talk with people. This ability comes first from simulating human perception. The meaning of the sensor is to digitally simulate the five senses of people and generate massive data. So now we see that artificial intelligence breaks through from hearing and vision first, because human sensors and radios are the crystallization of human sensors that are close to a hundred years of development, and the sensors of touch, smell and taste need to evolve gradually. . With five senses, we also need to think about thinking. Google’s man-machine war is the application of thinking. With thinking and driving feedback, Google’s Boston Power Robot is the application that drives feedback. Google is a monument to artificial intelligence, its valuation is more than 800 billion US dollars, and countless Keda Xunfei in the world are catching up with speed. It is conceivable that the Bottos chain stands at a dawn moment when a great era is about to open. We not only hope to remind the birth of countless Google, but also hope that these “new Google” will repay the millions of wealth of Xiaolai Li.

If you aren’t already in our group, please join now! https://t.me/bottosofficial
Bottos Website | Twitter |Facebook | Telegram
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DISC may be a better choice if you didn’t seize the opportunity of Bitcoin

DISC may be a better choice if you didn’t seize the opportunity of Bitcoin
https://preview.redd.it/di9avv4gqx441.png?width=1211&format=png&auto=webp&s=eb92d1eaffc52764bfd4bb0f0c55dead94aabf26
At present, the mainstream consensus mechanism of the encryption world is the Proof of Work (POW) used by Bitcoin (BTC) and the Proof of Stake (POS) used by EOS. In addition, there are more than 30 kinds of consensus mechanisms such as Proof of Capacity (POC) in the encryption world. Among them, POC has caused extensive discussion. Together with POC, there is also the cryptocurrency Diskcoin in the POC ecosystem, a core algorithm based on POC, which aims to establish a cryptocurrency of a greener energy-saving mining system.
Before introducing POC and Diskcoin, you need to understand POW and BTC first.

Proof Of Work
Ten years ago, Satoshi Nakamoto took the POW into the BTC mining, which once brought more than 200 billion US dollars in economic value to human society. BTC can sit on the throne of the encrypted world, and POW is indispensable. The BTC changed the traditional business model and the role of “miners” was born.
With the development, the miners gradually increased and the competition more fierce. There are large miners, mining pools, mines and other organizations. Due to the emergence of these organizations, the limitations of BTC have gradually emerged. BTC is proud of its decentralization and is no longer decentralized.
At the same time, POW was gradually occupied by ASIC. More and more mining machine manufacturers began to participate in mining. The reward of mining was slowly monopolized by giants such as mining machine manufacturers and mining pools, and small miners lost the opportunity to compete on the same stage.
BTC has been labeled as a privileged label, and now, without enough assets, it is almost impossible to participate in BTC.

Proof Of Capacity
The original intention of Satoshi Nakamoto to design BTC is that everyone can participate in mining and participate in the casting of “currency”. Therefore, in the early BTC mining, only one ordinary computer was needed for calculation work. Now, if you want to use a computer to mine BTC, it is simply a dream. The mining is mainly based on GPU and ASIC mining machines. This makes the cost of mining and the difficulty of mining greatly increase. Most of the hashrate of the BTC full net has been controlled by a few mining pools.
Power energy is also consumed in large quantities. BTC currently has a total hashrate of 43.42EH/S. It is mainly based on the popular S9 ant mining machine currently on the market. The average S9 hashrate is 13TH/S. The converted BTC full net hashrate is equivalent to 3.34 million S9 mining machines! In use, the power of the S9 is 1500 watts, and the power consumption per day is 36 watts. The power consumption of one S9 per month is 1080 watts. If multiplied by 3.34 million machines, the power consumption of the BTC for one year up to 43.2 billion degrees! The BTC full net has consumed more than 159 countries a year, accounting for 0.2% of global electricity consumption!
Can the BTC face a new solution?
At this point, POC boarded the stage of the encrypted world and launched a competition with POW.

Principle of Proof Of Capacity
Before the mining starts, the POC will calculate in advance and the hash value calculated by shabal256 will be stored in the hardisk. This process is called Plotting.
The POC uses a hash algorithm called shabal256. Compared to the B256 sha256, the shabal256 algorithm requires a longer calculation and workload. The benefit of Shabal256 is that miners do not need to perform hash calculations during mining, so the verification process will be relatively fast, and shabal256 will also prevent cheating.
From this we can know that the energy consumption of POC mining is extremely small. Because the repetitive and large amount of calculations are required compared to the POW, the POC simply scans the stored data.
In order to make everyone understand the POC hard drive mining, I will give you a simple example. POC mining process is similar to the lottery in the hardisk, and the process of mining is that you only need to wait for the lottery to draw the prize, you will scan the lottery in the hardisk to confirm whether it is winning, nothing more.
Someone here may have doubts, will it be faster to use an SSD hard drive? The clear answer is, no. Because the POC only cares the capacity of the hardisk, the larger the capacity is, the more lottery tickets you store on the hardisk, the greater the probability that you win the prize, and this has nothing to do with what kind of hardisk you use, what brand of hardisk.
The POC has changed the traditional mining method, which not only reduces the energy consumption of mining, but also lower the threshold of mining, so that everyone can participate.

Diskcoin
Diskcoin, referred to as DISC. DISC, like Bitcoin, has a total of 21 million. Based on the consensus of hardisk capacity, DISC lowers the participation threshold and allows more participation in the casting of coins, which is more conducive to the realization of decentralization.
DISC uses an upgraded version of the POC algorithm - CPOC Conditioned Proof Of Capacity.
Miners need to Stake Diskcoin to get the most reward. The ratio of Staking is not fixed or gradually reduced. Instead, an algorithmic mechanism called DES (Dynamic Equilibrium Staking) is used to adjust the Staking ratio based on the difficulty of mining. DISC's Staking economy model makes it impossible for miners to sell tokens without restrictions. This initiative is also to maintain the healthy and stable development of the DISC ecosystem.
Supply and demand are very important in economics. Supply and demand are the most direct factors for the decline in commodity prices, and the most effective market feedback. DISC's economic model ensures that the circulation of its currency is stable, keeping it in balance with the number of markets.
CPoC mining combines miners with the entire ecological interests, and replaces the originally consumed power resources with tokens as new production materials, so that the entire ecosystem of DISC continues to expand independently, forming a virtuous cycle system.
submitted by Diskcoin to DiskcoinOrg [link] [comments]

Dissertation article notes

Dissertation – Literature Notes
Matthias Berberich and Malgorzata Steiner, “Blockchain technology and the GDPR - how to reconcile privacy and distributed ledgers?” – Available on HeinOnline Note – that this article is from 2016 and so some of the information may be slightly dated. This article opens with some useful knowledge that will be applicable in my own intro: (own words) Since its conception through the distributed ledger, Bitcoin, blockchain technology has surpassed initial expectations as to the potential of its capabilities and today’s applications are not solely confined to ‘cryptocurrencies’ (e.g. smart contracts). Suggests that blockchain has ‘three constituting elements’: • Append only database (i.e. continually expanding) and ‘persistent’ – meaning that all transactions, once stored on the chain, cannot be removed i.e. it is immutable. • It is a distributed, peer-to-peer ledger. This means that all nodes in the network hold a full copy of the blockchain on their systems and work as verifiers of transaction for the network. This reliance on nodes means that blockchain systems are not centralised by any single entity/ natural person. • Blockchain is, by its very nature, a network of encryption in that for a successful transaction, there must be use of private and public keys. Territorial Scope GDPR applies where a data controlleprocessor has an establishment within the EU, regardless of whether the actual processing takes place within EU or not. It can also apply to the processing of personal data, even where the controlleprocessor is not situated in the EU (Art 3(1) gdpr): • But the data subjects are situated in the EU • Where processing is related to goods or services being offered to EU residents (recital 23 for determining factors) • ‘Or tracking the behaviour of data subjects within the EU’ Notes that the question of ‘who is the data controller’ is something that will arise when considering the territorial scope of the GDPR and whether it catches blockchain systems – is every node a data controller? If not, how is a single node determined controller over the large quantity of other ones. Personal Data ‘Personal data’ defined under Art 4(1) GDPR i.e. info must be of identified/ identifiable (natural) person. The authors submit that in relation to Personal data, Art 4(1) replaces Art 2 of the 1995 Data Protection Directive and as such, they expect much the same issue to arise i.e. what constitutes data as being identifiable or not. Touches on the interpretation of identifiable i.e. ‘means reasonably likely to be used’ (recital 26 GDPR +DPD). Also references the case of Breyer – dynamic IP addresses case. Suggests the predominant factor in deciding whether the GDPR catches blockchain systems is determining if personal data is being used. Highlights that even when data is sufficiently encrypted, it will not disregard the GDPRs scope over blockchain. This is because ‘pseudonymised’ data is still capable of identifying persons when used in conjunction with additional data e.g. exchanges (third parties) require identification of parties so they have access to credit card details and proof of residence. This used in conjunction with encrypted terms would deem that person identifiable. Data Controllers The article suggests that data contollers are essential to the effective distribution of rights and obligations under the GDPR. It is suggested that the controller retains the implementation of several key functions e.g. right to erasure, security breach notifications, system rules and enforcing sanctions. Without a defined controller, these rights would not be able to be enforced. The difficulty with this, in relation to blockchain, is the differing effects of hosting a public or private blockchain. Whilst issues surrounding private blockchains and the GDPR are seemingly solvable (to an extent), the issues surround private blockchain’s compatibility with GDPR seem extensive. It is easier for the controller to be identified in closed networks as these are usually created by private institutions for the internal transfer of assets etc. e.g banks. The article touches on ‘nodes’ as controllers, which it disputes on the basis that no single node can qualify as a controller as effectively, they are interdependent on one another for the whole network to function properly – no single node has effective control of the network. Equally, it submits that the other option, that all nodes are controllers is not the correct interpretation. Problems of identification of nodes arises in both cases, particularly with single nodes as controllers – what happens if the controller cant be identified? Conversely, if all nodes are controllers and even if they could all be identified, how does one enforce it upon hundreds or thousands of users? Privacy by Design Article 25 GDPR sets out the guiding principles for achieving ‘Privacy by Design’. These principles are introduced so as to address privacy concern regarding personal data. Art 25 – requires data controllers to implement effective measures in order to protect these principles (e.g. minimisation, pseudonimisation). The authors seem to think that blockchain systems are unable to comply with the principles stipulated in Art 25. A paradox is evident and requires further interpretation by the EU – on one hand, blockchain features such as ‘never-ending’ storage and a lack of central authority, could go against some of the principles such as data minimisation and accountability. Conversely, these features effectively create the resilient and secure nature of blockchain systems and could be considered to be in line with the Art 25 principles. It is suggested that these problems could be, at least partially, resolved in favour of blockchain compliance with GDPR by the creation of new PbD technology. The article then lists a few ways this could be done: • Eliminating ways of identifying pseudonymised data e.g. by adding ‘noise’ to obfuscate transactions amongst others. • Combining ‘on-chain’ and ‘off-chain’ data solutions i.e. personal data is kept, securely off chain and the purpose of the blockchain is merely to provide the effective link between the transaction and the data kept off chain.
The right to be forgotten:
submitted by Chilkin to u/Chilkin [link] [comments]

Exclusive Interview With Waltonchain CEO Mo Bing, by Golden Finance

Latest interview with Mo Bing, CEO of Waltonchain. Translated by Google.
https://www.jinse.com/news/bitcoin/307047.html

Walton chain CEO Mo Bing: talk about ecology is not for Shantou | Golden Finance exclusive interview
At the beginning of the birth of most public chains, we aimed to catch up with Ethereum. However, after a whole year of development, there are not many online test networks and main networks. Most public chains with weak hematopoietic capacity are being washed away. Among the many public chains, the Walton chain has gone out of a maverick road. In this regard, the explanation given by the Walton chain is, "This is based on the road map created by the 'value Internet of Things'."
Most public chains face the dilemma of being eliminated.
In the past 2018, it was regarded as the "first year of the public chain." In the past year, a large number of public chains claiming to lead the blockchain into the "3.0 era" emerged. At the beginning of their birth, they all had the same goal. Ethereum. Therefore, state channels, side chains, sub-chains, fragmentation technology, IPFS technology, etc. have been developed to solve transaction speed and storage problems. However, after one year, there are not many online test networks and main networks. Most public chains with weak hematopoietic capacity are being washed away.
Among the many public chains, the Walton chain has gone out of a maverick road.

An ecosystem that runs through production, distribution, and consumption.
Unlike most public networks that are busy with the main online line and performance upgrades, the main source of the Walton chain is the ecological map. For this type of play, the Walton chain gives the explanation, "This is based on the road map created by the 'value Internet of Things'."
"We talk about ecology is not for gimmicks. What we have to do is a long and ambitious thing. For an industry example, such as liquor, we want to get through the three links of production, circulation and consumption. These data may come from different industries in the chain. The need for our parent chain to be the bottom layer to achieve the entire process from production to circulation to sales, so the focus of the Walton chain on ecological construction." Walton chain CEO Mo Bing said.
In the ecosystem of Walton chain, the main chain as the underlying cornerstone is the basis for all activities; WTC is the value of the ecosystem, responsible for the whole ecological incentives and value transfer; above the main chain, each sub-chain cross Chain interoperability, processing and carrying data; the combination of software and hardware forms a full-closed system from production to consumption; after the infrastructure is built, it connects the real economy and provides customized solutions.
In Mo Bing's view, the Walton chain is not the same as some of the public chains that pursue performance. This is not the same as the role positioning of the public chain. Performance is an important criterion for most application networks that plan to host DAPP - but blind pursuit of performance clearly does not allow for the final application.
The Walton chain has already identified its own positioning early, through the combination of software and hardware to open up the physical world and chain data, complete the process of confirming the right and anti-counterfeiting. The Walton chain starts with industries that are closely related to people's lives, such as clothing, agriculture, and medicine. It runs through the industry, the middle, and the downstream, and finally forms a complete ecosystem.
The blockchain's non-tamperable nature makes it a natural value attribute. However, Mo Bing believes that many public chain projects are currently doing network, and have not opened up the physical world. Although the Internet giants have arranged in the blockchain, they mostly lay the foundation for the blockchain technology of existing applications, so they are relatively centralized, and it is difficult to guarantee the absolute authenticity of the data.
From its own advantages, Walton Chain uses sensor chips to open the data uplink interface and exchange data on the chain. This process perfectly eliminates human factors and establishes the value Internet of Things that Walton Chain pursues. ".

Technical realization
Usually the blockchain + IoT ecology data is a single ecology, that is, the ecological regions are separated, different fields build their own data ecology around their own data, or build their own blockchain architecture, even the chain is different Structure different technical systems.
Paying attention to the islanding of data, the primary task of the Walton chain is to communicate data. Walton chain uses software and hardware integration, data customization contract model, cross-chain technology and Walton chain WPoC consensus mechanism to achieve data integration, verification and storage of data between different sub-chains. This can achieve the connection of different data sources, and can achieve a wide flow of data.
Firstly, the data feature is used to extract the hash fingerprint or the index to store the Walton chain main chain, so that when searching the data of the Walton chain main chain in the future, the cross-chain indexing mechanism can quickly find the required data, and cross The data of the chain can quickly verify its authenticity; in addition, the cross-chain exchange certificate, based on the account of the atomic exchange of the pass, is used to record each of the Walton chain pass and the sub-chain pass or the pass-through Pen transaction.
Specifically, in the production process, the hash fingerprint is extracted through the underlying data link, and the hash value is extracted out of the sub-chain or the parent chain to reduce the workload. The same is true in the midstream circulation. In the downstream consumption link, the hash value is compared to know whether the data has been replaced or not.
Mo Bing gave an example: "We have combined the RFID chip with the blockchain and independently developed a new data-winding system. Taking liquor production as an example, there are many data that users care about in the production process, such as temperature and humidity, Contaminant content, etc., usually manufacturers use a variety of sensors to monitor production data, our technology can directly upload production data to the blockchain through the data collection unit. When the liquor is bottled, the device can automatically block the blockchain. The relevant production data retained on the data is extracted and stored in the RFID chip. The chip contains a fixed ID. This ID introduces all the hash values ​​of the production link, and is closely associated with the bottle. In the circulation link, each time the RFID chip enters the library, its chain layer and the chip will have data interaction. Finally, in the consumption link, the user can scan the hash fingerprint in the chip through the RFID reader. Look at the entire chain of data on the blockchain. Throughout the production, distribution, and consumption links, we are a small chip.
Therefore, the biggest difference between Walton and other projects is the inclusion of two closed loops of software and hardware. This kind of scheme completely eliminates human interference in the production and circulation, so it can get the most real data and generate value. In the future, we may do accurate big data analysis on this basis. Including consumer behavior analysis, user portraits, etc., to expand our ecological value system. ”
After this, multi-chain communication and data fusion are realized, and the “black box” operation of the traditional communication data acquisition mode is realized. Users or enterprises in the ecosystem do not have to consider whether the IoT device has access to the network or can access it. And what protocol to communicate with, etc., but consider what data is needed, what to do, how to show it to others, and so on.

5G era to win business opportunities
Although in the past year, anti-counterfeiting traceability is very close to the landing scene, over time, the numerous intermediate circulation links have caused this proposition to become somewhat illusory and even once suspected. However, the Walton chain did not give up this scene. Mo Bing said that the price of the goods has become the demand of most people, so to ensure that the products are authentic, can only be solved by traceability.
“Consumers have the right to know which manufacturer to consume and which circulation to go through, so this is definitely not a false proposition. However, the intermediate circulation is indeed a fact, and there is also great difficulty in getting through the circulation. The Star Link is doing the first step to get through the production and consumption links, and not to intervene in the circulation link for the time being. We have the ability to do so, the data of the production link is in the chain, and the user can match the real data recorded in the production link in the consumption link. The goods are transferred in the circulation link, the user will know that the goods are fake because they can not find the real data of the production link, but the user is not aware of which link is being transferred. However, it is enough to ensure that consumers can know to buy. Whether it is real or fake. Therefore, the establishment of anti-counterfeiting traceability in the whole process is a long process. In the future, we will gradually develop the circulation link and gradually move towards the goal of opening the whole process of commodity circulation. “Mo Bing said.
Solved the problem of applicable scenarios, communication progress is also a big business opportunity for the development of Walton chain. On December 6, 2018, the three major operators obtained the nationwide 5G low-frequency band test frequency license, which means that China's 5G is a step closer to formal commercial use. At that time, the upcoming speeches of the 5G era swept over and became the biggest expectation.
In the world of value IoT, the Walton chain acts like a window connecting the physical world and the blockchain world. Then the blockchain + Internet of Things model, which is extremely dependent on the network, may set off a gust of wind in the upcoming 5G era.
After 5G development, the channel width will be greatly expanded, and massive data can be quickly accessed interactively. For the Walton chain, the hash fingerprint shared on the blockchain will greatly speed up the transmission of data and reduce the original consensus time. Moreover, after the bandwidth is increased, the rapid interaction of massive data and the rapid consensus operation of the books due to network limitations will also be realized one by one.
Mo Bing suggested that the enhancement of computing power can increase a lot of collaborative operations, and data commercialization can be well applied. "So 5G develops, for blockchain and Internet of Things, I think the biggest impact lies in the calculation of each sensor. The capability will be greatly enhanced. The communication network will have a wide channel, and the distributed calculation and fast consensus of the blockchain can be realized. Therefore, the direct data-linking mode of sensor data will become more and more popular, and the data transmission in the form of manual intervention will be realized. And data sharing will be less and less." It can be seen that with the development of 5G technology, Walton chain will also usher in a greater development prospect.
submitted by Yayowam to waltonchain [link] [comments]

BITCOIN MINING DIFFICULTY EXPLAINED IN 10 MINUTES! Bitcoin Mining Difficulty DROPS 15.9% - Miners get 18.9% ... What Is Bitcoin? BITCOIN DIFFICULTY ADJUSTMENT  Satoshi Nakamoto's Wallet  Market Analysis and Bitcoin News Is Bitcoin too Complicated?

Even though the bitcoin mining difficulty can fall, it’s unlikely that this will happen more than twice in a year. As a matter of fact, when looking at the most recent chart, it’s not hard to check that the difficulty tends to keep growing with the passage of time. As of now, there were only five adjustments where the mining difficulty has fallen since July 11, 2015. Bitcoin is traded in a number of exchanges, and there is a large and time-varying price dispersion among them. We identify the sources of price dispersion using a standard time-varying vector autoregression model with stochastic volatility, and we find that shocks to transaction fees and bitcoin price growth explain on average 20%, and sometimes more than 60%, of the variation of price dispersion. And with recent all-time highs in hash rate and difficulty level, the Bitcoin mining industry is more competitive than ever. Meanwhile, there are questions about whether efforts toward its ... A Bitcoin full node could be modified to scale to much higher ... bitcoin settling (and zero trust bitcoin escrow transactions) would reduce their risk. This is doubly true because bitcoin could conceivably scale to replace them entirely, even if that wouldn't be the best idea due to the resulting reduction in decentralization. Scalability targets. VISA handles on average around 2,000 ... The level of difficulty when the Bitcoin is mined; By far, the biggest factor affecting how much money a mining farm makes is how much it pays for electricity. Nearly all mining farms are using the same hardware. Since the reward for finding a block is fixed, and the difficulty is adjusted based on total processing power working on finding blocks at any given time, then electricity is the only ...

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BITCOIN MINING DIFFICULTY EXPLAINED IN 10 MINUTES!

Is it realistically possible for #Bitcoin to 100x and replace GOLD? The one key factor most people overlook… Bitcoin comes to Facebook (sort of), Bakkt updates, Jed McCaleb says we are not in a ... Bitcoin has long been criticized for being too difficult for the average person to understand. It's probably true. But does that actually matter? In this video, shot from Jacksonville Florida, I ... For more information: https://www.bitcoinmining.com and https://www.weusecoins.com What is Bitcoin Mining? Have you ever wondered how Bitcoin is generated? T... 01:18 Market Update 02:18 BTC Difficulty and Hash Rate Drop 05:01 Satoshi Nakomoto Won't Sell Bitcoin 07:28 eToro Market Analysis 10:59 Paxful in India 13:36 IOST NFT Collectibles and Mystery Box ... This video is unavailable. Watch Queue Queue. Watch Queue Queue

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