Bitcoins/Litecoins/Virtual Currencies

  • Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!



    Go here and give us your nominations!
    Who's been the biggest Asshat in the last year? Give us your worst ones!
Ravishing

Ravishing

Uninspiring Title
<Bronze Donator>
8,456
3,577
LachiusTZ said:
I thought the difficulty was set on a curve and can't be altered
Click to expand...
Difficulty fluctuates, the system adjusts automatically to keep the discovery rate at about 10min per block.
When the bitcoin halving occurred, the difficulty got easier because a lot of miners quit. less miners = took longer to crack a block.
Now difficulty increases as more miners get back into it.

Quick google result: difficulty

More about this chart
Explanation
The difficulty is a measure of how difficult it is to mine a Bitcoin block, or in more technical terms, to find a hash below a given target. A high difficulty means that it will take more computing power to mine the same number of blocks, making the network more secure against attacks. The difficulty adjustment is directly related to the total estimated mining power estimated in the Total Hash Rate (TH/s) chart.
Notes
The difficulty is adjusted every 2016 blocks (every 2 weeks approximately) so that the average time between each block remains 10 minutes.
Methodology
The difficulty comes directly from the confirmed blocks data in the Bitcoin network.
 
  • 2Like
Reactions: 1 users
Flobee

Flobee

Vyemm Raider
2,709
3,116
LachiusTZ said:
How does crypto hold value under the advent of quantum computing?

Is solving hashes not trivial and essentially exactly what they are best at?
Click to expand...
As I understand it they have hashing algorithms that they can switch to that they expect will be quantum resistant. It is something that they're already planning for. That being said, I don't understand cryptography well enough to confirm, but every cryptographer I've seen answer this has said the same things.

EDIT: Quick google brings this: Quantum computing and Bitcoin - Bitcoin Wiki

Bitcoin already has some built-in quantum resistance. If you only use Bitcoin addresses one time, which has always been the recommended practice, then your ECDSA public key is only ever revealed at the one time that you spend bitcoins sent to each address. A quantum computer would need to be able to break your key in the short time between when your transaction is first sent and when it gets into a block. It will likely be decades after a quantum computer first breaks a Bitcoin key before quantum computers become this fast.

All of the commonly-used public-key algorithms are broken by QC. This includes RSA, DSA, DH, and all forms of elliptic-curve cryptography. Public-key crypto that is secure against QC does exist, however. Currently, Bitcoin experts tend to favor a cryptosystem based on Lamport signatures. Lamport signatures are very fast to compute, but they have two major downsides:

  • The signature would be quite large, at least several kB (40-170 times larger than now). This would be very bad for Bitcoin's overall scalability, since bandwidth is one of the main limiting factors to Bitcoin's scaling. Advances in scalability such as Segregated Witness (the signature is part of the witness) and Lightning will be helpful.
  • At the time that you create each keypair, you would need to set some finite maximum number of times that you can sign with this key. Signing more than this number of times would be insecure. Increasing the signing limit increases the size of each signature even more. Since you are only really supposed to use addresses once, this may not be a huge problem for Bitcoin.
There is also some ongoing academic research on creating quantum-safe public-key algorithms with many of the same properties as today's public-key algorithms, but this is very experimental. It is not known whether it will end up being possible.

A new public-key algorithm can be added to Bitcoin as a softfork. From the end-user perspective, this would appear as the creation of a new address type, and everyone would need to send their bitcoins to this new address type to achieve quantum security.
Click to expand...
 
Flobee

Flobee

Vyemm Raider
2,709
3,116
Flobee said:
October 13 2020

BitcoinTreasuries.com

Track Bitcoin Treasuries of companies, miners and countries at BitcoinTreasuries.com.
bitcointreasuries.org

$6.4 Billion or around 2.8% of the total BTC supply held by public companies as of right now.
Click to expand...
$9.8 Billion or around 3.74% of the total BTC supply held by public companies as of right now.
 
LachiusTZ

LachiusTZ

Rogue Deathwalker Box
<Silver Donator>
14,472
27,162
I don't understand how anyone could switch the hashing algos...

I thought it was completely independent?

Who can alter the algos? How?
 
Flobee

Flobee

Vyemm Raider
2,709
3,116
LachiusTZ said:
I don't understand how anyone could switch the hashing algos...

I thought it was completely independent?

Who can alter the algos? How?
Click to expand...
Changes to Bitcoin can be done with consensus. If 51% of nodes agree on a decision then that decision can be implemented. This is also how forks occur. BCH and BSV are two forks from Bitcoin where a less than 51% share of the community wanted to change Bitcoin and forked the code to implement that change. Bitcoin is just code. Consensus just means that 51% implement the code change.
 
LachiusTZ

LachiusTZ

Rogue Deathwalker Box
<Silver Donator>
14,472
27,162
Flobee said:
Changes to Bitcoin can be done with consensus. If 51% of nodes agree on a decision then that decision can be implemented. This is also how forks occur. BCH and BSV are two forks from Bitcoin where a less than 51% share of the community wanted to change Bitcoin and forked the code to implement that change. Bitcoin is just code. Consensus just means that 51% implement the code change.
Click to expand...

That sounds horrifying
 
Flobee

Flobee

Vyemm Raider
2,709
3,116
LachiusTZ said:
That sounds horrifying
Click to expand...
That's why it will likely never change. If it does change it has to be for a very good reason. Nodes exist all over the world, how the hell are you going to get people internationally to agree on something unless its important? Something like quantum computing breaking the current algorithm. I see this as a positive thing. Hard money shouldn't change much. Also, this is better than a handful of dudes in a smoky room deciding how monetary policy works I have to imagine.
 
Ravishing

Ravishing

Uninspiring Title
<Bronze Donator>
8,456
3,577
LachiusTZ said:
That sounds horrifying
Click to expand...

Its only horrifying if 51% of the mining is done by a single entity or alliance of entities, as then they can control it, but it is also why they say the harder the hash rate the more secure, because it becomes much more difficult for a group of actors to take control.

At Bitcoins maturity, it is near impossible for anyone to take control without oodles of cash, and even then, the hash rate gets harder and harder as they bring mining systems online.

But the fact it CAN be adjusted is also comforting since getting 51% or greater to agree likely means it's something really important that should be changed.
 
  • 1Solidarity
Reactions: 1 user
LachiusTZ

LachiusTZ

Rogue Deathwalker Box
<Silver Donator>
14,472
27,162
I like the idea of the curve being unchangeable and predetermined.

It gives certainty.

This gives effectively mob rule.

Ethereum the same way?
 
maskedmelon

maskedmelon

Orator of Superfluous Nothings
1,893
2,951
Anyone know when Binance US will become less gay or like if there is another exchange that US residents can access that supports more ERC20 tokens?
 
Flobee

Flobee

Vyemm Raider
2,709
3,116
maskedmelon said:
Anyone know when Binance US will become less gay or like if there is another exchange that US residents can access that supports more ERC20 tokens?
Click to expand...
Binance is, IMO, not very trustworthy. They're run by some Chinese folks, they've been run out of a number of countries and they've been slow to accept US regulations. I expect that they may eventually have the hammer fall on them like other unregulated exchanges have, but they've been moving towards regulation so we'll see.

RE: ERC20 tokens if you really want to dive into the alt-coin forest you need to get Metamask and go to Uniswap Interface this is a DEX (Decentralized Exchange) and has every ERC20 you could ever want. There is something of a learning curve in how to use Metamask and interact with the smart contracts on Uniswap, but that is the cost of doing business at this point.

There is no centralized exchange that hosts a large amount of ERC20 tokens and there likely never will be. They move too fast. Stick with Gemini, Kraken, Coinbase IMO and move your ETH into Metamask to go buy alts. Keep in mind that every trade on Uniswap is a taxable event in the US. You may be able to ignore this, but the regulators are coming into this space pretty hard this year, so don't count on it.

EDIT: Keep an eye on CoinGecko: Cryptocurrency Prices & Market Capitalization for gas price (ETH Gas : 21 gwei - right now) as when this is high your coin exchanges could be pretty pricey. I've made trades when it was 180+ and its cost me upwards of $18+ to make a trade. Under most circumstances you'll still be spending less than you would on a centralized exchange for trading though.

EDIT2: I would suggest using a separate browser than your main browser for Metamask (I use Brave) as other addons in your browser may compromise the security of Metamask. Be cautious holding significant funds here in general as its not as secure as a cold wallet, or even an exchange holding your crypto.
 
Last edited:
  • 1Like
Reactions: 1 user
maskedmelon

maskedmelon

Orator of Superfluous Nothings
1,893
2,951
Flobee said:
Binance is, IMO, not very trustworthy. They're run by some Chinese folks, they've been run out of a number of countries and they've been slow to accept US regulations. I expect that they may eventually have the hammer fall on them like other unregulated exchanges have, but they've been moving towards regulation so we'll see.

RE: ERC20 tokens if you really want to dive into the alt-coin forest you need to get Metamask and go to Uniswap Interface this is a DEX (Decentralized Exchange) and has every ERC20 you could ever want. There is something of a learning curve in how to use Metamask and interact with the smart contracts on Uniswap, but that is the cost of doing business at this point.

There is no centralized exchange that hosts a large amount of ERC20 tokens and there likely never will be. They move too fast. Stick with Gemini, Kraken, Coinbase IMO and move your ETH into Metamask to go buy alts. Keep in mind that every trade on Uniswap is a taxable event in the US. You may be able to ignore this, but the regulators are coming into this space pretty hard this year, so don't count on it.

EDIT: Keep an eye on CoinGecko: Cryptocurrency Prices & Market Capitalization for gas price (ETH Gas : 21 gwei - right now) as when this is high your coin exchanges could be pretty pricey. I've made trades when it was 180+ and its cost me upwards of $18+ to make a trade. Under most circumstances you'll still be spending less than you would on a centralized exchange for trading though.

EDIT2: I would suggest using a separate browser than your main browser for Metamask (I use Brave) as other addons in your browser may compromise the security of Metamask. Be cautious holding significant funds here in general as its not as secure as a cold wallet, or even an exchange holding your crypto.
Click to expand...

Awesome. Thanks a ton. So, another couple quick questions. Is Uniswap geared toward super small transactions or does it depend on the coin? I am seeing that the larger the transaction, the worse the rate is, which seems super odd to me. Also, do you know of a way to verify token authenticity? I am seeing warnings that some of the coins could be forgeries and took a look at the contracts, but I don’t see how to know. Is there a way to know without buying them? Is there a way to know once I do buy them? Thanks again!
 
Flobee

Flobee

Vyemm Raider
2,709
3,116
maskedmelon said:
Awesome. Thanks a ton. So, another couple quick questions. Is Uniswap geared toward super small transactions or does it depend on the coin? I am seeing that the larger the transaction, the worse the rate is, which seems super odd to me. Also, do you know of a way to verify token authenticity? I am seeing warnings that some of the coins could be forgeries and took a look at the contracts, but I don’t see how to know. Is there a way to know without buying them? Is there a way to know once I do buy them? Thanks again!
Click to expand...
So the rates will depend on volume generally. Uniswap is a peer-to-peer protocol where individual users provide the liquidity for the market. You could add, say ETH and DAI to the pool and receive part (.03% i think) of each transaction on that pool in proportion to how much you pooled in that pair compared to the total. Said another way, the rate is going to depend on how much liquidity exists for the pool. The smaller the volume on that token, the larger the fee will be for larger transactions as your trade will affect the price more.

In regards to token authenticity you can verify that via CoinGecko: Cryptocurrency Prices & Market Capitalization. For example lets say we want to buy Chainlink. You can copy the contract from below
1603651718139.png


and paste it into uniswap
1603651770399.png


That will verify that you're getting the correct token. You can also get this contract from etherscan.io but I find it simpler to just use coingecko if they have it.
 
  • 1Like
Reactions: 1 user
maskedmelon

maskedmelon

Orator of Superfluous Nothings
1,893
2,951
Flobee said:
So the rates will depend on volume generally. Uniswap is a peer-to-peer protocol where individual users provide the liquidity for the market. You could add, say ETH and DAI to the pool and receive part (.03% i think) of each transaction on that pool in proportion to how much you pooled in that pair compared to the total. Said another way, the rate is going to depend on how much liquidity exists for the pool. The smaller the volume on that token, the larger the fee will be for larger transactions as your trade will affect the price more.

In regards to token authenticity you can verify that via CoinGecko: Cryptocurrency Prices & Market Capitalization. For example lets say we want to buy Chainlink. You can copy the contract from below
View attachment 312340

and paste it into uniswap
View attachment 312341

That will verify that you're getting the correct token. You can also get this contract from etherscan.io but I find it simpler to just use coingecko if they have it.
Click to expand...

Okay cool, thanks. So when I go to Coingecko, it shows a string of all numbers and lowercase letters, but the etherscan.io from uniswap has some uppercase letters in it. They are the same letters, but some are upper case. Does that mean that is fraudulent?
 
Flobee

Flobee

Vyemm Raider
2,709
3,116
maskedmelon said:
Okay cool, thanks. So when I go to Coingecko, it shows a string of all numbers and lowercase letters, but the etherscan.io from uniswap has some uppercase letters in it. They are the same letters, but some are upper case. Does that mean that is fraudulent?
Click to expand...
I honestly don't know. The method I showed here will work to the best of my knowledge.
 
  • 1Like
Reactions: 1 user
Flobee

Flobee

Vyemm Raider
2,709
3,116
Interview with Trump's Comptroller of Currency Brian Brooks talking crypto. This is a little dry but grabbed a couple interesting bits in spoiler.

Brian Brooks | OCC

www.occ.gov www.occ.gov



"(crypto) is fundamental for American strategic power in the world of financial services."


"I'm not a cheerleader for this stuff (crypto), some of this poses real risks to the system, but I do like clarity. Once the market's have clarity they can work their magic."


Many more crypto banks are coming. Specifically national bank charters (as opposed to current state charters, see Wyoming)


Re: how to taking entity based enforcement (OCC goes after bank for breaking lending law) into Decentralized Finance (DEFI) where no entity exists for lending regulation violations

"I don't think the bank regulatory system is ready for DEFI and I don't have a magic answer to the problem, but I know what the right question is. How do you take entity based regulations and apply them to a system without entities?"


Re: CBDCs

"There are a lot of things people might mean by CBDCs but I think what they reall mean is a dollar that trades on the blockchain. If that is the case then this already exists. What has been missing is some kind of regulatory framework around such tokens that will give people comfort that if they take a dollar from (one institution) to another that it will be safe and actually worth a dollar (redeemable)"

"Government is terrible at building stuff" !!!

"Tell us the rules and let the market build what they want"

^^^^^ This is absolutely best case scenario for the US. The alternative is likely an eventual world centralized currency controlled by the IMF. IMO that leads to socialism world wide. Bad juju.


Re: Privacy in blockchain transactions

"Financial privacy in the US looks a lot different here compared to other parts of the world... If you live in Cuba you probably care a lot more of a financial privacy than someone that lives in the US... Here, where we are literally a target of terrorism every day, it feels a bit different. As a society we've made the judgement that someone using our financial system for (terrorism) is sufficiently tangible at we'd rather protect against that and give up some privacy."

^^^^^ Do not like this take whatsoever. I take his point, but don't think its a good enough argument to justify big brother getting to watch everything.

"In order to do this stimulus we have printed a lot of money. The more money you sloshing around the system, the less valuable each unit is... We could be in a very different monetary policy here soon. Modern Monetary Theory (MMT) will have consequences. That is the core thesis of Bitcoin, it cannot be debased. In a certain future world we could have more volatility in the fiat (USD) world than in Bitcoin... This would drive up Bitcoin prices."

"We live in a world where finance is centralized... tolls are collected for (Every type of transaction)... the whole point of centralization is that the centralized entity is a toll collector... that means poor people that can't afford the toll can't pass through and those that can have cream skimmed off the top... the point of technology is to disrupt all of this... the ultimate inclusionary benefit of decentralization, which is what crypto promises, is that we take things that cost money and we make them free."

^^^^^ Pretty fantastic points. We'll be well served to keep people like this in charge of regulation as this industry develops. The precedents that they set will be incredibly important.
 
You must log in or register to reply here.