Bitcoin mining difficulty slides for the second time since ...

Mining for Profitability - Horizen (formerly ZenCash) Thanks Early GPU Miners

Mining for Profitability - Horizen (formerly ZenCash) Thanks Early GPU Miners
Thank you for inviting Horizen to the GPU mining AMA!
ZEN had a great run of GPU mining that lasted well over a year, and brought lots of value to the early Zclassic miners. It is mined using Equihash protocol, and there have been ASIC miners available for the algorithm since about June of 2018. GPU mining is not really profitable for Horizen at this point in time.
We’ve got a lot of miners in the Horizen community, and many GPU miners also buy ASIC miners. Happy to talk about algorithm changes, security, and any other aspect of mining in the questions below. There are also links to the Horizen website, blog post, etc. below.
So, if I’m not here to ask you to mine, hold, and love ZEN, what can I offer? Notes on some of the lessons I’ve learned about maximizing mining profitability. An update on Horizen - there is life after moving on from GPU mining. As well as answering your questions during the next 7 days.

Mining for Profitability - Horizen (formerly ZenCash) Thanks Early GPU Miners

Author: Rolf Versluis - co-founder of Horizen

In GPU mining, just like in many of the activities involved with Bitcoin and cryptocurrencies, there is both a cycle and a progression. The Bitcoin price cycle is fairly steady, and by creating a personal handbook of actions to take during the cycle, GPU miners can maximize their profitability.
Maximizing profitability isn't the only aspect of GPU mining that is important, of course, but it is helpful to be able to invest in new hardware, and be able to have enough time to spend on building and maintaining the GPU miners. If it was a constant process that also involved losing money, then it wouldn't be as much fun.

Technology Progression

For a given mining algorithm, there is definitely a technology progression. We can look back on the technology that was used to mine Bitcoin and see how it first started off as Central Processing Unit (CPU) mining, then it moved to Graphical Processing Unit (GPU) mining, then Field Programmable Gate Array (FPGA), and then Application Specific Integrated Circuit (ASIC).
Throughout this evolution we have witnessed a variety of unsavory business practices that unfortunately still happen on occasion, like ASIC Miner manufacturers taking pre-orders 6 months in advance, GPU manufacturers creating commercial cards for large farms that are difficult for retail customers to secure and ASIC Miner manufacturers mining on gear for months before making it available for sale.
When a new crypto-currency is created, in many cases a new mining algorithm is created also. This is important, because if an existing algorithm was used, the coin would be open to a 51% attack from day one, and may not even be able to build a valid blockchain.
Because there's such a focus on profitable software, developers for GPU mining applications are usually able to write a mining application fairly rapidly, then iterate it to the limit of current GPU technology. If it looks like a promising new cryptocurrency, FPGA stream developers and ASIC Hardware Developers start working on their designs at the same time.
The people who create the hashing algorithms run by the miners are usually not very familiar with the design capabilities of Hardware manufacturers. Building application-specific semiconductors is an industry that's almost 60 years old now, and FPGA’s have been around for almost 35 years. This is an industry that has very experienced engineers using advanced design and modeling tools.
Promising cryptocurrencies are usually ones that are deploying new technology, or going after a big market, and who have at least a team of talented software developers. In the best case, the project has a full-stack business team involving development, project management, systems administration, marketing, sales, and leadership. This is the type of project that attracts early investment from the market, which will drive the price of the coin up significantly in the first year.
For any cryptocurrency that's a worthwhile investment of time, money, and electricity for the hashing, there will be a ASIC miners developed for it. Instead of fighting this technology progression, GPU miners may be better off recognizing it as inevitable, and taking advantage of the cryptocurrency cycle to maximize GPU mining profitability instead.

Cryptocurrency Price Cycle

For quality crypto projects, in addition to the one-way technology progression of CPU -> GPU -> FPGA -> ASIC, there is an upward price progression. More importantly, there is a cryptocurrency price cycle that oscillates around an overall upgrade price progression. Plotted against time, a cycle with an upward progressions looks like a sine wave with an ever increasing average value, which is what we see so far with the Bitcoin price.

Cryptocurrency price cycle and progression for miners
This means mining promising new cryptocurrencies with GPU miners, holding them as the price rises, and being ready to sell a significant portion in the first year. Just about every cryptocurrency is going to have a sharp price rise at some point, whether through institutional investor interest or by being the target of a pump-and-dump operation. It’s especially likely in the first year, while the supply is low and there is not much trading volume or liquidity on exchanges.
Miners need to operate in the world of government money, as well as cryptocurrency. The people who run mining businesses at some point have to start selling their mining proceeds to pay the bills, and to buy new equipment as the existing equipment becomes obsolete. Working to maximize profitability means more than just mining new cryptocurrencies, it also means learning when to sell and how to manage money.

Managing Cash for Miners

The worst thing that can happen to a business is to run out of cash. When that happens, the business usually shuts down and goes into bankruptcy. Sometimes an investor comes in and picks up the pieces, but at the point the former owners become employees.
There are two sides to managing cash - one is earning it, the other is spending it, and the cryptocurrency price cycle can tell the GPU miner when it is the best time to do certain things. A market top and bottom is easy to recognize in hindsight, and harder to see when in the middle of it. Even if a miner is able to recognize the tops and bottoms, it is difficult to act when there is so much hype and positivity at the top of the cycle, and so much gloom and doom at the bottom.
A decent rule of thumb for the last few cycles appears to be that at the top and bottom of the cycle BTC is 10x as expensive compared to USD as the last cycle. Newer crypto projects tend to have bigger price swings than Bitcoin, and during the rising of the pricing cycle there is the possibility that an altcoin will have a rise to 100x its starting price.
Taking profits from selling altcoins during the rise is important, but so is maintaining a reserve. In order to catch a 100x move, it may be worth the risk to put some of the altcoin on an exchange and set a very high limit order. For the larger cryptocurrencies like Bitcoin it is important to set trailing sell stops on the way up, and to not buy back in for at least a month if a sell stop gets triggered. Being able to read price charts, see support and resistance areas for price, and knowing how to set sell orders are an important part of mining profitability.

Actions to Take During the Cycle

As the cycle starts to rise from the bottom, this is a good time to buy mining hardware - it will be inexpensive. Also to mine and buy altcoins, which are usually the first to see a price rise, and will have larger price increases than Bitcoin.
On the rise of the cycle, this is a good time to see which altcoins are doing well from a project fundamentals standpoint, and which ones look like they are undergoing accumulation from investors.
Halfway through the rise of the cycle is the time to start selling altcoins for the larger project cryptos like Bitcoin. Miners will miss some of the profit at the top of the cycle, but will not run out of cash by doing this. This is also the time to stop buying mining hardware. Don’t worry, you’ll be able to pick up that same hardware used for a fraction of the price at the next bottom.
As the price nears the top of the cycle, sell enough Bitcoin and other cryptocurrencies to meet the following projected costs:
  • Mining electricity costs for the next 12 months
  • Planned investment into new miners for the next cycle
  • Additional funds needed for things like supporting a family or buying a Lambo
  • Taxes on all the capital gains from the sale of cryptocurrencies
It may be worth selling 70-90% of crypto holdings, maintaining a reserve in case there is second upward move caused by government bankruptcies. But selling a large part of the crypto is helpful to maintaining profitability and having enough cash reserves to make it through the bottom part of the next cycle.
As the cycle has peaked and starts to decline, this is a good time to start investing in mining facilities and other infrastructure, brush up on trading skills, count your winnings, and take some vacation.
At the bottom of the cycle, it is time to start buying both used and new mining equipment. The bottom can be hard to recognize.
If you can continue to mine all the way through bottom part of the cryptocurrency pricing cycle, paying with the funds sold near the top, you will have a profitable and enjoyable cryptocurrency mining business. Any cryptocurrency you are able to hold onto will benefit from the price progression in the next higher cycle phase.

An Update on Horizen - formerly ZenCash

The team at Horizen recognizes the important part that GPU miners played in the early success of Zclassic and ZenCash, and there is always a welcoming attitude to any of ZEN miners, past and present. About 1 year after ZenCash launched, ASIC miners became available for the Equihash algorithm. Looking at a chart of mining difficulty over time shows when it was time for GPU miners to move to mining other cryptocurrencies.

Horizen Historical Block Difficulty Graph
Looking at the hashrate chart, it is straightforward to see that ASIC miners were deployed starting June 2018. It appears that there was a jump in mining hashrate in October of 2017. This may have been larger GPU farms switching over to mine Horizen, FPGA’s on the network, or early version of Equihash ASIC miners that were kept private.
The team understands the importance of the cryptocurrency price cycle as it affects the funds from the Horizen treasury and the investments that can be made. 20% of each block mined is sent to the Horizen non-profit foundation for use to improve the project. Just like miners have to manage money, the team has to decide whether to spend funds when the price is high or convert it to another form in preparation for the bottom part of the cycle.
During the rise and upper part of the last price cycle Horizen was working hard to maximize the value of the project through many different ways, including spending on research and development, project management, marketing, business development with exchanges and merchants, and working to create adoption in all the countries of the world.
During the lower half of the cycle Horizen has reduced the team to the essentials, and worked to build a base of users, relationships with investors, exchanges, and merchants, and continue to develop the higher priority software projects. Lower priority software development, going to trade shows, and paying for business partnerships like exchanges and applications have all been completely stopped.
Miners are still a very important part of the Horizen ecosystem, earning 60% of the block reward. 20% goes to node operators, with 20% to the foundation. In the summer of 2018 the consensus algorithm was modified slightly to make it much more difficult for any group of miners to perform a 51% attack on Horizen. This has so far proven effective.
The team is strong, we provide monthly updates on a YouTube live stream on the first Wednesday of each month where all questions asked during the stream are addressed, and our marketing team works to develop awareness of Horizen worldwide. New wallet software was released recently, and it is the foundation application for people to use and manage their ZEN going forward.
Horizen is a Proof of Work cryptocurrency, and there is no plan to change that by the current development team. If there is a security or centralization concern, there may be change to the algorithm, but that appears unlikely at this time, as the hidden chain mining penalty looks like it is effective in stopping 51% attacks.
During 2019 and 2020 the Horizen team plans to release many new software updates:
  • Sidechains modification to main software
  • Sidechain Software Development Kit
  • Governance and Treasury application running on a sidechain
  • Node tracking and payments running on a sidechain
  • Conversion from blockchain to a Proof of Work BlockDAG using Equihash mining algorithm
After these updates are working well, the team will work to transition Horizen over to a governance model where major decisions and the allocation of treasury funds are done through a form of democratic voting. At this point all the software developed by Horizen is expected to be open source.
When the governance is transitioned, the project should be as decentralized as possible. The goal of decentralization is to enable resilience and preventing the capture of the project by regulators, government, criminal organizations, large corporations, or a small group of individuals.
Everyone involved with Horizen can be proud of what we have accomplished together so far. Miners who were there for the early mining and growth of the project played a large part in securing the network, evangelizing to new community members, and helping to create liquidity on new exchanges. Miners are still a very important part of the project and community. Together we can look forward to achieving many new goals in the future.

Here are some links to find out more about Horizen.
Horizen Website –
Horizen Blog –
Horizen Reddit -
Horizen Discord –
Horizen Github –
Horizen Forum –
Horizen Twitter –
Horizen Telegram –
Horizen on Bitcointalk –
Horizen YouTube Channel –
Buy or Sell Horizen
Horizen on CoinMarketCap –

About the Author:

Rolf Versluis is Co-Founder and Executive Advisor of the privacy oriented cryptocurrency Horizen. He also operates multiple private cryptocurrency mining facilities with hundreds of operational systems, and has a blog and YouTube channel on crypto mining called Block Operations.
Rolf applies his engineering background as well as management and leadership experience from running a 60 person IT company in Atlanta and as a US Navy nuclear submarine officer operating out of Hawaii to help grow and improve the businesses in which he is involved.
Thank you again for the Ask Me Anything - please do. I'll be checking the post and answering questions actively from 28 Feb to 6 Mar 2019 - Rolf
submitted by Blockops to gpumining [link] [comments]

Debunked: "Bitcoin needs to become a store of value before it can be used as a medium of exchange."

Savings and consumption go hand in hand. One is quite useless without the other and if you try to base your money solely on store of value or rapid deflation — basically for sake of seeing a number on a screen appreciate — then you are running a pump scheme desperately looking for others to provide you with the real justification for the exceedingly higher price and you are just as much against sound money as anyone instead preferring to see it depreciate.
This is the case even if you think that you will necessarily have the use value in commerce of that same number created increase in relation to other goods or necessarily keep the same price tag on the global market later when you finally decide to reconfigure it's attributes. The market will not treat your coin the same way once you give it an actual use case besides speculation and there can be no guarantees as to its price once you stop those actions that made it rise in price so far.

Central planning or manipulation of the price system through the introduction of artificial shortages do not make sound money, no matter your intentions or the direction price takes in order to compensate for your shenanigans.

Bubbles form in environments where for one reason or another demand becomes artificially great in relation to supply considering somethings non-speculative use case. What is done to the price of an asset by systematically forcing rapid deflation is the private equivalent of what the central banks of the world do to all other assets when they are devaluing their locally prescribed fiat currency. It may sound better for savers, but is just as unsustainable and in fact erodes the point of regularly increasing ones savings in the first place.
Without having a monopoly, trade in the actual underlying asset thus historically tends to be replaced with much more risky promissary notes used off the record (off chain) and diminish overall in favor off any and all comparable alternatives that provide better liquidity. Trade in the underlying asset may never stop entirely, but it's connection to the rest of the productive economy has significantly worsened and made it's use increasingly unproductive except where absolutely needed.
To quote Objectivist philosopher Ayn Rand, a big proponent of money as a store of value,
Money is a tool of exchange; it represents wealth only so long as it can be traded for material goods and services. Wealth does not grow in nature; it has to be produced by men. . .
. . When people refuse to consider the source of wealth, what they refuse to recognize is the fact that wealth is the product of man’s intellect, of his creative ability, fully as much as is art, science, philosophy or any other human value.
Source: The Objectivist Forum
So you think that money is the root of all evil? . . . Have you ever asked what is the root of money? Money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce. Is this what you consider evil?
Source: For the New Intellectual
As per Satoshis design — now arguably better implemented in the form of Bitcoin Cash — bitcoins were always a store of value, because they represented the fungible results of hours of precious computing power that had been consciously expended in order to create them.
They clearly had value to the creator and they also clearly were fungible enough to be divisible into very small pieces and easily passed on to another wallet held by Satoshi himself or by one of his earliest friends to join him in running the network.
The Bitcoin design had been created as the productive response to issues of the past that all stemmed from the problem of having to trust in the reliability of a third party as mediator in any money transactions. It mitigated abusive banking policies and it used competitive market principles rather than a mint or other overseer to keep the network available to any user and drive down the cost of each transaction to the point where it could be free or mostly go completely unnoticed, which would make it usable as cash payment in e-commerce or in person.
There were no "moochers", no arbitrary price manipulation, no central entity that could not be replaced and no price tags preventing small and casual cash-like transactions of any kind.
Any high but limited amount of inflation pressure at the time would have been mitigated by Satoshis own valuation of the importance of these attributes even before he had anyone to trade his coins with and also later when he potentially had, which is exactly how the so called "subjective theory of value" describes prices on a free market.
Economist Ludvig Von Mises, representing the Austrian School of economics and arguably the foremost influence on Rand in this area of thought, had the following to say about money in this regard
In the case of money, subjective use-value and subjective exchange-value coincide.
He also explicitly reminds us that,
Both are derived from objective exchange-value, for money has no utility other than that arising from the possibility of obtaining other economic goods in exchange for it.
Source: The Theory of Money and Credit
But as both Mises and here below Rand are quick to point out, since this means that money is not merely meant to be passed around carelessly (at any rate, slow or fast, cheaply or expensively), the most important function of money is retaining value until it is time to do so, including of course the very moment of the exchange itself. When exactly that time is, can not be allowed to be decided by another human being or by a government-like entity that might be tempted for reasons of controlling such behavior to introduce a tax or a special fee of some kind. Money — the default method of exchange within a network of people, or a community — must still be liquid enough to allow it to be spent cheaply and easily at all times.
Money is the tool of men who have reached a high level of productivity and a long-range control over their lives. Money is not merely a tool of exchange: much more importantly, it is a tool of saving, which permits delayed consumption and buys time for future production. To fulfill this requirement, money has to be some material commodity which is imperishable, rare, homogeneous, easily stored, not subject to wide fluctuations of value, and always in demand among those you trade with.
This leads you to the decision to use gold as money. Gold money is a tangible value in itself and a token of wealth actually produced. When you accept a gold coin in payment for your goods, you actually deliver the goods to the buyer; the transaction is as safe as simple barter. When you store your savings in the form of gold coins, they represent the goods which you have actually produced and which have gone to buy time for other producers, who will keep the productive process going, so that you’ll be able to trade your coins for goods any time you wish.
Source: Philosophy: Who Needs It
Bitcoin fits perfectly into the formula so far described and we may conclude that when it comes to its basic function as money, there is not much more to say in terms of Bitcoin qua the design described in the final edition of Satoshis paper; Bitcoin: A Peer-to-Peer Electronic Cash System.

But the story did not end there (a brief but still long overview of the breakdown of the Bitcoin community around Bitcoin Core)

As Bitcoin was already making mainstream appearances time and time again (which it had already started to do while Satoshi was still openly in the community and working on the project), it turned out that many of the remaining developers, as well as those that would arrive later, would completely reject Satoshis views and the design he had proposed. While they likely still keep convincing themselves that they are developing Bitcoin and that their actions have been in the best interest of the project as they see it, they had and still have radically different priorities and the community that formed around them naively competed to rationalize the basis for these priorities among each other and to any newcomers. This resulted in what must carefully be described as a "cult like" atmosphere and lead to a number of debilitating changes in the networks protocol.
Everything started to change. New ideas that went completely against the Bitcoin design started to be made part of the general concerns and everything from scaling, network topology, acceptable fee levels and even transaction speed and reliability were made to perform worse than they used to because of the deep ideological differences that allowed this. The economic understanding of the gradually reduced block rewards for the miners was only one of the many casualties within the community.
According to design, as the tokens of CPU cycles started to spread across the world, the inflation would start to taper off and ultimately at some point in the still distant future ensure that no actively inflating parties were allowed on the network anymore; Thereby safeguarding the limit of 21 million coins and that any price being gradually established during the time of initial distribution would meet up with objective exchange value as per the users in the community and from there remain relatively stable. Then, the plan always was, fees and interest in running the network itself would be the remaining incentive already built into the system to keep it going.
However soon, long before the final stage of the coin distribution which even today still has a really long way to go, developers working on the official reference software implementation that had been named "Bitcoin Core" no longer all expected that this would happen. In fact, not everyone agreed that the system should perform as "cash" at all, but instead perhaps as a "digital gold" or "store of value" that could then still be traded easily, only through other presumably still decentralized means.
That's how it was decided and eventually why increasing the amount of transactions on the network through a simple and safe change of a single parameter was not only considered a potentially unsustainable path to continue down in the long run, but also actually not as high a priority as other factors much less relevant to the systems function as "cash".
Instead of upgrading per the only plan consisted with the original design and as suggested by Satoshi, his successor Gavin Andresen and countless others that eventually would become isolated and for various reasons themselves decide to or be forced to have their role in Bitcoin development further reduced, the block space available for such transactions was kept so low that it eventually got full. This in turn triggered an event in the self-stabilizing transaction fee parameter, the price of which would normally trend as low as it could over time by virtue of being priced in the designs own deflationary native currency and nodes choosing to keep their fees low for sake of internal competition. Now the market in fees traded steadily higher, spiking several times, and with the introduction of features that would let the users more easily increase their fees to have higher chance of being one of the lucky to transact on time, got more and more extreme. At one point it had Greg Maxwell — prominent developer of technologies that would eventually enable "solutions" to this problem, such as the Lightning Network to be deployed as a side chain to what at least ought to be the main chain — supposedly celebrating the event, which he and other developers had already made known was the intent all along.
Personally, I’m pulling out the champaign that market behaviour is indeed producing activity levels that can pay for security without inflation, and also producing fee paying backlogs needed to stabilize consensus progress as the subsidy declines
This in turn, not only priced out all casual and cash type transactions, but also generated a lock-in effect as users could no longer sell what supposedly was still "currency" without loosing a significant portion of their balance or perhaps do anything at all, until the price of the "coins" had trended high enough to compensate for any fees. The now known risks and fees, had spread throughout the system in various ways. For example had fees to and from exchanges increased and the newly developer introduced RBF function also pushed (the one that would allow a user to increase fees, and that was wrongly argued on various occasions to have been part of the original design) made users have to wait for hours or days before their transactions were considered safe. In other words, the system was no longer the one described in the paper and behaved at best more like a typical bank.
But while Bitcoin use for casual and outward facing commerce transactions stagnated, this didn't stop the price rallies that were increasingly driven on by this fee based lack of "liquidity" for recent buyers waiting to sell and fears of missing out on a good investment. It can also be speculated, that not only the lock in-effect for traders looking to ride the price but the high fees on users themselves contributing to a rapid concentration in wealth amongst miners and exchanges, thereby replacing the deflation already brought on by increased difficulty and reduced block rewards with a state of hyperdeflation.
While this may sound good for every bag holder on the onset, it was not so good for the small users looking to spend their coins. Their money store of value had now become more like a time locked interest paying account with a really large withdraw fee.
For those users that did not have much or enough money to even pay the fee in the first place, a single necessary transaction could trigger an event to them comparable to what happened in Cyprus during the height of the financial crisis, as the government had a large portion of savings confiscated as an "emergency tax" directly out of ordinary people's savings accounts. In fact it might be far worse for them than what happened back then, as the sum needed to be paid in fees could be a far greater percentage of their savings and constitute a small fortune depending on where in the world the user had earned and were planning to spend it.
It also did not help at all in the long run that the bull market may draw in more speculating "adopters", since this deflationary mode is only a temporary benefit to traders and doesn't itself necessarily bring any reliable value or relatively stable price at higher levels at all. It can just as well collapse again at any moment and lead to countless losses or by worsening simply rob users of their money by not making it usable on the network anymore.
Instead of viewing this economic policy as merely "testing" the system or "preparing it" for a future without block rewards, you would do better to compare it to "pumping" pretty much any currency, stock or commodity, as the goal even when assuming "good faith" is to centrally plan a restriction on blockspace to below market demand and "happily accept" the result that it manipulates the internal price per byte that is sent upwards. This in combination with already existing speculative interest from the public also almost inevitably leads to significant price moves and in turn even more of the public buying into the bull run before the developers themselves have actually provided anything that should logically attract such increased investment or use interest in the first place.
After the initial pumps it may also be anticipated that corrections in the form of bear markets will tend to set in, as the nodes mempools (the recorded transactions now having to wait in a long que to be timestamped) eventually clears are expected to clear. Because this marks the eventual return to normal fee levels and thus also a temporary stop to increasing deflation. The perceived inflation in turn created by increased liquidity in the underlying asset (on chain) may then set in fast or slow in the markets as some users are finally able to sell for a more reliable asset.
(As soon as speculators have become accustomed to the new prices in the underlying asset itself, its related IOUs and fees relating to both, markets will have stabilized enough that bullish speculation either alone or with the help of the very same processes can start over, yet again and with renewed enthusiasm.)
In the end, the market response will be what the market response will be and you have no control over it. Now that there is Bitcoin Cash, the same is true for it. No guarantees exist or can be made that either of the two chains will remain the more successful one as compared to the other, but the market will be the ultimate arbitrator in the long run.
TLDR: Savings and consumption go hand in hand. Bitcoins were a store of value ever since inception, even when only Satoshi were mining them. All market prices must emerge and be entertained in the market place without top down manipulation through the introduction of artificial scarcity. Pumping prices or letting the various parts of the design malfunction/be fundamentally changed to go against the rest is not sustainable and will only break the incentives model. In the long run the market is the ultimate arbitrator in all matters of money prices.
submitted by fruitsofknowledge to btc [link] [comments]

Proposal: MaxBlockSize = 3x avg. of last 2016 blocks. This is a max of ~1.2MB blocks today.

Priorities with this approach:
  1. Avoids transaction congestion: Ensuring users, apps, and businesses have a good experience transacting in Bitcoin with normal/minimal fees, with plenty of space available in blocks no matter how slowly or quickly Bitcoin transaction volume grows.
  2. Preventing attacks & avoiding excess. keeping the max size as low as possible while ensuring #1 remains true.
  3. Protocol rules do not force users off Bitcoin’s chain, the onus is on off-chain alternatives to be so darn attractive they draw users off Bitcoin’s chain naturally, and freely.
  4. Block size becomes a function of actual, demonstrated network utilization (past block size), not a fixed constant (20mb), or a rule to be voted upon (BIP 100). Just like the amount of hash power on the network is unpredictable, and an algorithm was chosen to determine difficulty, so the actual transaction utilization of the network is unpredictable, so we can't now, or ever, come up with a good constant for a max block size, nor a good rule for how frequently to raise it.
Why 3x? A simple analysis of today’s situation: Block size avg today ~0.4MB, so the network would calculate today’s max as ~1.2MB.
Why 2016 blocks? SOME timeframe is needed to determine average. 2016 is borrowed from the difficulty adjustment (~ 2 weeks). Its a suggestion.
Why not 2x? Because 0.8MB, using today’s situation as an example, may not be enough, especially in those situations where big gaps in block finds happen due to miner luck. We’d want the unconfirmed transactions in the queue to clear when these big gaps happen. We’re seeing miners use all 1mb today on occasion, and allowing 1.2mb in today’s world would ensure users aren’t given undue wait times for a confirmation in those bad luck scenarios.
Why not 4x? Why go excessive? (also attack prevention, see below) If the network really has that much demand, it won’t come all at once and be sustained, and the size will adjust up slowly as enough blocks actually fill.
Why not BIP 100? It’s been pointed out, and I tend to agree, that it gives miners all the say in block size, by giving the voting power on block size to the most hash power and not tying it to the demonstrated needs of the network.
Why not Gavin and Mike's approach? 20mb is very excessive at today's levels and may become too small at some point in the future. Rather then have an excess now and another change in the future, why not take care of it permanently, and conservatively at the same time?
What about keeping it possible for everyday people to run nodes on slower internet connections and older machines? This is a catch 22: If the block size is kept small artificially, that implies a capacity limitation and congestion (rising fees and/or longer confirmation times). THIS implies our ‘everyday people’ will have a strained experience with Bitcoin because it doesn’t work well or cheaply enough for them, so after being annoyed and frustrated with Bitcoin and stop using it, why would they care to run a node? Also, the chain may not get SO big because we have smart people working on alternative off-chain solutions: see below.
Attack scenario: This would require a persistent filling of the blocks for days with real transactions with adequate fees to slow confirmations for legitimate users and bring up the block size (remember avg. of last 2016 blocks). This would get expensive very quickly since legitimate fees are needed. The same concept applies here as with transaction fees as a spam control. The attacker would have to be very rich, and even if they were, their attack would be short lived and the max block size would re-adjust down shortly after.
What about off-chain solutions (e.g. lightning)? Let’s Do it! These need to take off. SO many benefits. When they're ready, Users will gravitate naturally off Bitcoin’s chain, choosing a more convenient option and the path of least resistance. The max block size will remain hovering just above the actual network demand.
Of course more analysis can, and should be done. This is an initial proposal.
submitted by SubmitAnIdea to Bitcoin [link] [comments]

The cURES Project

Cryptocurrencies or Crypto has been the most recent news in tech and finance. They can often be find been mentioned on the news, while binging on Netflix and maybe from a skeptical friend telling you about bitcoin’s price exceeding $6,800.
I really only discovered this odd, new money in the spring of 2017, and immediately was flabbergasted by dozens of technical terms.
I’ve since return to the conclusion that there area unit reasons whereas crypto has not swollen, There area unit many misunderstood terms wont to describe cryptocurrencies and blockchain. Also there are very few user-friendly apps and websites that allow people to purchase cryptocurrency.
If additional folks understood the advantages of a cryptocurrency, I’m assured they'd wish to participate. If there were more really sexy websites and apps for crypto, I’m sure more people would want to buy them.
Conversely, “Crypto Currencies” area unit systems similar to Bitcoin in terms of public access, and therefore the proficiency to send, receive and trade the tokens. “Crypto Currencies” ought to return to a accord among untrusted parties.
“Crypto Currencies”, by their stripe, are public for anyone to join and participate. They take issue considerably in terms of details, like the harmony protocol employed by the network to agree on the list of valid dealings, the way transaction, and account information is stockpiled, the specific algorithms used for mincing, the type of public-private key cryptography, the real-world solicitations and use cases and the type of community.
A learner WHO isn't a “Crypto Investor” or that has no data within the “Crypto Currencies Souk” can want some rules to twig, otherwise, he/she will innocently and ignorantly invest wrongly and will end up losing.
That is the reason I've been working tenaciously endeavoring to give this inventive endeavor to my comparable crypto colleagues
The vision of managing this modification is to empower all stakeholders through the utilization of innovative technology like blockchain and good contracts. We see this leading to additional choices and choices; transcending borders through medical business, nurturing a transparent and trusted review system, allowing better and more informed decisions. In order to facilitate this, we've developed half dozen main pillars to our sturdy business strategy. More about them you can learn on website
The presence of the Cures dynamic framework went with it some significant game plans by methods for the Cures Token:
Esteem LADED MEDICAL CARE Quality human organizations in different nations, particularly those in the improvement orchestrate require some hypothesis, exertion, and cash. Being a decentralized structure, CURES Token permits the rising above of these occurrences accordingly guaranteeing quality, and rising above idea offered to make life logically reliable and obliging.
The Cures token makes reliable accessibility to helpful organizations, examining the traditional structures shows that is simply prepared to manage different inefficient perspectives like association, the nonattendance of validity, lacking restorative assurance among others. Basically, the Cures Token is a general endeavor which intends to dispose of parts of the therapeutic organization that stimulates long holding up times and risks of contracting maladies.
It is never again news that security issues are a steady test in the in general therapeutic administrations organizations framework. Dependably the difficulty related to social assurance mutilation among others attracts gigantic hardships. By using the instrumentality of the blockchain and clearly the splendid contract, CURES Token keep up records in a logically reliable, clear and result-organized way. You and I think about the ampleness of the square, when the information is recorded in, it is irreversible.
The framework in like manner energizes fundamental and reliable overall portion. What we are progressively adjusted with in the remedial organization is that the traditional installments are dealt with through untouchables and obviously consequences of such trade spectator higher trade costs and conceded procedure. Additionally, there are huge conceivable outcomes related to changes in the change standard. Fixes Token mitigates a relative danger of the sketchy swapping scale and trade are dealt with in concurrent time with close nothing proportion of the expense.
Information recording inside a packed biological system in the social protection organizations framework is trying especially challenges that have to do with the deficient information stream that implies insignificant delays. This is the spot the Cures dynamic framework brings its offer to uncovered as the Cures Token breakers adroit contract that guarantees clearness and straightforwardness in the trade methodology.
Features of The CURES
Attempt the highlights on:
- App Store for Health applications (HAPP Store)
- Electronic Health Records
- Health confirmation stage
- Marketplace and trust audit stage
- Trading stage
- Charitable trust support
Specialized Info
Our token is pronouncing the required capacities and occasions to fulfill the ERC20 guidelines. The token is written in Solidity, which is at present the best creating language on the Ethereum arrange. The code is conveyed on the Ethereum arrange and will be made open, which will convey more straightforwardness to our task.
Fixes expects to be ahead of the pack by associating every single restorative administration by our stages that structure a domain that can work progressively dependent on Smart Contracts. As the quantity of offers in greatest utility and request which will guarantee that the token cost increments.
Fixes Token is structured as s a superior framework that will do immensely essential work on the Ethereum Blockchain. Since a large portion of the substantial not delicate work will be finished by our servers, we hope to deal with incredibly high volumes of exchanges.
The CURES Roadmap

Q1 2018 > CURES thought was conceived > Research in the Healthcare issues > Research in the Blockchain

Q2 2018 > Deep research for issue arrangements > Mark venture objectives and examine the market > Search for engineers

Q3 2018 > Launch CURES Website alpha > Search for Partners and Advisors

Q4 2018 > Launch CURES Website full form > Whitepaper discharge > Launch HAPP store alpha rendition with our very own in-house created HAPPs > Launch private token deal > Launch token pre-deal
ICO Details
Pre-Sale: 2018-12-01 – 2019-01-31
Token Sale: 2019-02-01 – 2019-03-31
Token: CURES
Price: 1 CURES = 0.001 ETH
Blockchain Platform: Ethereum
Accepting: ETH, Fiat
Soft Cap: 2,000 ETH
Hard Cap: 175,000 ETH
Country: Bulgaria
For more information:
White Paper:
BountyOx Username: cryptounique
submitted by 1loveone to ICOAnalysis [link] [comments]

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Bitcoin Transactions Explained

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