Bitcoin Fee Calculator, Estimation + Chart of Unconfirmed ...

Switched to SegWit wallet. How many sat/byte should I be spending now? Is there a mempool fee calculator for SegWit transactions? /r/Bitcoin

Switched to SegWit wallet. How many sat/byte should I be spending now? Is there a mempool fee calculator for SegWit transactions? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

12-17 23:12 - 'Sorry, but the I used the CORE WALLET for a huge transaction last weekend and selected the HIGHEST, FASTEST automatically calculated fee. Got stuck in the mempool from Saturday midday until Monday morning. Lost sleep two nigh...' by /u/wtfkenneth removed from /r/Bitcoin within 5-15min

'''
Sorry, but the I used the CORE WALLET for a huge transaction last weekend and selected the HIGHEST, FASTEST automatically calculated fee. Got stuck in the mempool from Saturday midday until Monday morning. Lost sleep two nights because the transaction didn't even SHOW UP anywhere. I'm sick of BTC dysfunction.
'''
Context Link
Go1dfish undelete link
unreddit undelete link
Author: wtfkenneth
submitted by removalbot to removalbot [link] [comments]

Is something wrong with Trezor's fee calculation? 'Normal' fee is $5 on trezor! My tx confirmed right away at normal, so is the mempool even backed up that much right now? /r/Bitcoin

Is something wrong with Trezor's fee calculation? 'Normal' fee is $5 on trezor! My tx confirmed right away at normal, so is the mempool even backed up that much right now? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

mempool size based fee calculation in clients? /r/Bitcoin

mempool size based fee calculation in clients? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin Newcomers FAQ - Please read!

Welcome to the /Bitcoin Sticky FAQ

You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.
It all started with the release of the release of Satoshi Nakamoto's whitepaper however that will probably go over the head of most readers so we recommend the following videos for a good starting point for understanding how bitcoin works and a little about its long term potential:
Some other great resources include Lopp.net, the Princeton crypto series and James D'Angelo's Bitcoin 101 Blackboard series.
Some excellent writing on Bitcoin's value proposition and future can be found at the Satoshi Nakamoto Institute.
Some Bitcoin statistics can be found here and here. Developer resources can be found here. Peer-reviewed research papers can be found here.
Potential upcoming protocol improvements and scaling resources here and here.
The number of times Bitcoin was declared dead by the media can be found here (LOL!)

Key properties of Bitcoin

Where can I buy bitcoins?

Bitcoin.org and BuyBitcoinWorldwide.com are helpful sites for beginners. You can buy or sell any amount of bitcoin (even just a few dollars worth) and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also check out the bitcoinity exchange resources for a larger list of options for purchases.
Here is a listing of local ATMs. If you would like your paycheck automatically converted to bitcoin use Bitwage.
Note: Bitcoins are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. Preev is a useful site that that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".

Securing your bitcoins

With bitcoin you can "Be your own bank" and personally secure your bitcoins OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoins for you.
Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!
2FA requires a second confirmation code to access your account making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.
Google Auth Authy OTP Auth
Android Android N/A
iOS iOS iOS

Watch out for scams

As mentioned above, Bitcoin is decentralized, which by definition means there is no official website or Twitter handle or spokesperson or CEO. However, all money attracts thieves. This combination unfortunately results in scammers running official sounding names or pretending to be an authority on YouTube or social media. Many scammers throughout the years have claimed to be the inventor of Bitcoin. Websites like bitcoin(dot)com and the btc subreddit are active scams. Almost all altcoins (shitcoins) are marketed heavily with big promises but are really just designed to separate you from your bitcoin. So be careful: any resource, including all linked in this document, may in the future turn evil. Don't trust, verify. Also as they say in our community "Not your keys, not your coins".

Where can I spend bitcoins?

Check out spendabit or bitcoin directory for millions of merchant options. Also you can spend bitcoin anywhere visa is accepted with bitcoin debit cards such as the CashApp card. Some other useful site are listed below.
Store Product
Gyft Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
Spendabit, Overstock and The Bitcoin Directory Retail shopping with millions of results
ShakePay Generate one time use Visa cards in seconds
NewEgg and Dell For all your electronics needs
Bitwa.la, Coinbills, Piixpay, Bitbill.eu, Bylls, Coins.ph, Bitrefill, LivingRoomofSatoshi, Coinsfer, and more Bill payment
Menufy, Takeaway and Thuisbezorgd NL Takeout delivered to your door
Expedia, Cheapair, Destinia, Abitsky, SkyTours, the Travel category on Gyft and 9flats For when you need to get away
Cryptostorm, Mullvad, and PIA VPN services
Namecheap, Porkbun Domain name registration
Stampnik Discounted USPS Priority, Express, First-Class mail postage
Coinmap and AirBitz are helpful to find local businesses accepting bitcoins. A good resource for UK residents is at wheretospendbitcoins.co.uk.
There are also lots of charities which accept bitcoin donations.

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;
If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read more here. Still have mining questions? The crew at /BitcoinMining would be happy to help you out.
If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node using this setup guide. If you would prefer to keep it simple there are several good options. You can view the global node distribution here.

Earning bitcoins

Just like any other form of money, you can also earn bitcoins by being paid to do a job.
Site Description
WorkingForBitcoins, Bitwage, Cryptogrind, Coinality, Bitgigs, /Jobs4Bitcoins, BitforTip, Rein Project Freelancing
Lolli Earn bitcoin when you shop online!
OpenBazaar, Purse.io, Bitify, /Bitmarket, 21 Market Marketplaces
/GirlsGoneBitcoin NSFW Adult services
A-ads, Coinzilla.io Advertising
You can also earn bitcoins by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins.

Bitcoin-Related Projects

The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.
Project Description
Lightning Network Second layer scaling
Blockstream, Rootstock and Drivechain Sidechains
Hivemind and Augur Prediction markets
Tierion and Factom Records & Titles on the blockchain
BitMarkets, DropZone, Beaver and Open Bazaar Decentralized markets
JoinMarket and Wasabi Wallet CoinJoin implementation
Coinffeine and Bisq Decentralized bitcoin exchanges
Keybase Identity & Reputation management
Abra Global P2P money transmitter network
Bitcore Open source Bitcoin javascript library

Bitcoin Units

One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:
Unit Symbol Value Info
bitcoin BTC 1 bitcoin one bitcoin is equal to 100 million satoshis
millibitcoin mBTC 1,000 per bitcoin used as default unit in recent Electrum wallet releases
bit bit 1,000,000 per bitcoin colloquial "slang" term for microbitcoin (μBTC)
satoshi sat 100,000,000 per bitcoin smallest unit in bitcoin, named after the inventor
For example, assuming an arbitrary exchange rate of $10000 for one Bitcoin, a $10 meal would equal:
For more information check out the Bitcoin units wiki.
Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit.
Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.
Welcome to the Bitcoin community and the new decentralized economy!
submitted by BitcoinFan7 to Bitcoin [link] [comments]

Syscoin Platform’s Great Reddit Scaling Bake-off Proposal

Syscoin Platform’s Great Reddit Scaling Bake-off Proposal

https://preview.redd.it/rqt2dldyg8e51.jpg?width=1044&format=pjpg&auto=webp&s=777ae9d4fbbb54c3540682b72700fc4ba3de0a44
We are excited to participate and present Syscoin Platform's ideal characteristics and capabilities towards a well-rounded Reddit Community Points solution!
Our scaling solution for Reddit Community Points involves 2-way peg interoperability with Ethereum. This will provide a scalable token layer built specifically for speed and high volumes of simple value transfers at a very low cost, while providing sovereign ownership and onchain finality.
Token transfers scale by taking advantage of a globally sorting mempool that provides for probabilistically secure assumptions of “as good as settled”. The opportunity here for token receivers is to have an app-layer interactivity on the speed/security tradeoff (99.9999% assurance within 10 seconds). We call this Z-DAG, and it achieves high-throughput across a mesh network topology presently composed of about 2,000 geographically dispersed full-nodes. Similar to Bitcoin, however, these nodes are incentivized to run full-nodes for the benefit of network security, through a bonded validator scheme. These nodes do not participate in the consensus of transactions or block validation any differently than other nodes and therefore do not degrade the security model of Bitcoin’s validate first then trust, across every node. Each token transfer settles on-chain. The protocol follows Bitcoin core policies so it has adequate code coverage and protocol hardening to be qualified as production quality software. It shares a significant portion of Bitcoin’s own hashpower through merged-mining.
This platform as a whole can serve token microtransactions, larger settlements, and store-of-value in an ideal fashion, providing probabilistic scalability whilst remaining decentralized according to Bitcoin design. It is accessible to ERC-20 via a permissionless and trust-minimized bridge that works in both directions. The bridge and token platform are currently available on the Syscoin mainnet. This has been gaining recent attention for use by loyalty point programs and stablecoins such as Binance USD.

Solutions

Syscoin Foundation identified a few paths for Reddit to leverage this infrastructure, each with trade-offs. The first provides the most cost-savings and scaling benefits at some sacrifice of token autonomy. The second offers more preservation of autonomy with a more narrow scope of cost savings than the first option, but savings even so. The third introduces more complexity than the previous two yet provides the most overall benefits. We consider the third as most viable as it enables Reddit to benefit even while retaining existing smart contract functionality. We will focus on the third option, and include the first two for good measure.
  1. Distribution, burns and user-to-user transfers of Reddit Points are entirely carried out on the Syscoin network. This full-on approach to utilizing the Syscoin network provides the most scalability and transaction cost benefits of these scenarios. The tradeoff here is distribution and subscription handling likely migrating away from smart contracts into the application layer.
  2. The Reddit Community Points ecosystem can continue to use existing smart contracts as they are used today on the Ethereum mainchain. Users migrate a portion of their tokens to Syscoin, the scaling network, to gain much lower fees, scalability, and a proven base layer, without sacrificing sovereign ownership. They would use Syscoin for user-to-user transfers. Tips redeemable in ten seconds or less, a high-throughput relay network, and onchain settlement at a block target of 60 seconds.
  3. Integration between Matic Network and Syscoin Platform - similar to Syscoin’s current integration with Ethereum - will provide Reddit Community Points with EVM scalability (including the Memberships ERC777 operator) on the Matic side, and performant simple value transfers, robust decentralized security, and sovereign store-of-value on the Syscoin side. It’s “the best of both worlds”. The trade-off is more complex interoperability.

Syscoin + Matic Integration

Matic and Blockchain Foundry Inc, the public company formed by the founders of Syscoin, recently entered a partnership for joint research and business development initiatives. This is ideal for all parties as Matic Network and Syscoin Platform provide complementary utility. Syscoin offers characteristics for sovereign ownership and security based on Bitcoin’s time-tested model, and shares a significant portion of Bitcoin’s own hashpower. Syscoin’s focus is on secure and scalable simple value transfers, trust-minimized interoperability, and opt-in regulatory compliance for tokenized assets rather than scalability for smart contract execution. On the other hand, Matic Network can provide scalable EVM for smart contract execution. Reddit Community Points can benefit from both.
Syscoin + Matic integration is actively being explored by both teams, as it is helpful to Reddit, Ethereum, and the industry as a whole.

Proving Performance & Cost Savings

Our POC focuses on 100,000 on-chain settlements of token transfers on the Syscoin Core blockchain. Transfers and burns perform equally with Syscoin. For POCs related to smart contracts (subscriptions, etc), refer to the Matic Network proposal.
On-chain settlement of 100k transactions was accomplished within roughly twelve minutes, well-exceeding Reddit’s expectation of five days. This was performed using six full-nodes operating on compute-optimized AWS c4.2xlarge instances which were geographically distributed (Virginia, London, Sao Paulo Brazil, Oregon, Singapore, Germany). A higher quantity of settlements could be reached within the same time-frame with more broadcasting nodes involved, or using hosts with more resources for faster execution of the process.
Addresses used: 100,014
The demonstration was executed using this tool. The results can be seen in the following blocks:
612722: https://sys1.bcfn.ca/block/6d47796d043bb4c508d29123e6ae81b051f5e0aaef849f253c8f3a6942a022ce
612723: https://sys1.bcfn.ca/block/8e2077f743461b90f80b4bef502f564933a8e04de97972901f3d65cfadcf1faf
612724: https://sys1.bcfn.ca/block/205436d25b1b499fce44c29567c5c807beaca915b83cc9f3c35b0d76dbb11f6e
612725: https://sys1.bcfn.ca/block/776d1b1a0f90f655a6bbdf559ff5072459cbdc5682d7615ff4b78c00babdc237
612726: https://sys1.bcfn.ca/block/de4df0994253742a1ac8ac9eec8d2a8c8b0a6d72c53d6f3caa29bb6c171b0a6b
612727: https://sys1.bcfn.ca/block/e5e167c52a9decb313fbaadf49a5e34cb490f8084f642a850385476d4ef10d70
612728: https://sys1.bcfn.ca/block/ab64d989edc71890e7b5b8491c20e9a27520dc45a5f7c776d3dae79057f59fe7
612729: https://sys1.bcfn.ca/block/5e8b7ecd0e36f99d07e4ea6e135fc952bf7ec30164ab6f4d1e98b0f2d405df6d
612730: https://sys1.bcfn.ca/block/d395df3d31dde60bbb0bece6bd5b358297da878f0beb96be389e5f0e043580a3
It is important to note that this POC is not focused on Z-DAG. The performance of Z-DAG has been benchmarked within realistic network conditions: Whiteblock’s audit is publicly available. Network latency tests showed an average TPS around 15k with burst capacity up to 61k. Zero-latency control group exhibited ~150k TPS. Mainnet testing of the Z-DAG network is achievable and will require further coordination and additional resources.
Even further optimizations are expected in the upcoming Syscoin Core release which will implement a UTXO model for our token layer bringing further efficiency as well as open the door to additional scaling technology currently under research by our team and academic partners. At present our token layer is account-based, similar to Ethereum. Opt-in compliance structures will also be introduced soon which will offer some positive performance characteristics as well. It makes the most sense to implement these optimizations before performing another benchmark for Z-DAG, especially on the mainnet considering the resources required to stress-test this network.

Cost Savings

Total cost for these 100k transactions: $0.63 USD
See the live fee comparison for savings estimation between transactions on Ethereum and Syscoin. Below is a snapshot at time of writing:
ETH price: $318.55 ETH gas price: 55.00 Gwei ($0.37)
Syscoin price: $0.11
Snapshot of live fee comparison chart
Z-DAG provides a more efficient fee-market. A typical Z-DAG transaction costs 0.0000582 SYS. Tokens can be safely redeemed/re-spent within seconds or allowed to settle on-chain beforehand. The costs should remain about this low for microtransactions.
Syscoin will achieve further reduction of fees and even greater scalability with offchain payment channels for assets, with Z-DAG as a resilience fallback. New payment channel technology is one of the topics under research by the Syscoin development team with our academic partners at TU Delft. In line with the calculation in the Lightning Networks white paper, payment channels using assets with Syscoin Core will bring theoretical capacity for each person on Earth (7.8 billion) to have five on-chain transactions per year, per person, without requiring anyone to enter a fee market (aka “wait for a block”). This exceeds the minimum LN expectation of two transactions per person, per year; one to exist on-chain and one to settle aggregated value.

Tools, Infrastructure & Documentation

Syscoin Bridge

Mainnet Demonstration of Syscoin Bridge with the Basic Attention Token ERC-20
A two-way blockchain interoperability system that uses Simple Payment Verification to enable:
  • Any Standard ERC-20 token to be moved from Ethereum to the Syscoin blockchain as a Syscoin Platform Token (SPT), and back to Ethereum
  • Any SPT to be moved from Syscoin to the Ethereum blockchain as an ERC-20 token, and back to Syscoin

Benefits

  • Permissionless
  • No counterparties involved
  • No trading mechanisms involved
  • No third-party liquidity providers required
  • Cross-chain Fractional Supply - 2-way peg - Token supply maintained globally
  • ERC-20s gain vastly improved transactionality with the Syscoin Token Platform, along with the security of bitcoin-core-compliant PoW.
  • SPTs gain access to all the tooling, applications and capabilities of Ethereum for ERC-20, including smart contracts.
https://preview.redd.it/l8t2m8ldh8e51.png?width=1180&format=png&auto=webp&s=b0a955a0181746dc79aff718bd0bf607d3c3aa23
https://preview.redd.it/26htnxzfh8e51.png?width=1180&format=png&auto=webp&s=d0383d3c2ee836c9f60b57eca35542e9545f741d

Source code

https://github.com/syscoin/?q=sysethereum
Main Subprojects

API

Tools to simplify using Syscoin Bridge as a service with dapps and wallets will be released some time after implementation of Syscoin Core 4.2. These will be based upon the same processes which are automated in the current live Sysethereum Dapp that is functioning with the Syscoin mainnet.

Documentation

Syscoin Bridge & How it Works (description and process flow)
Superblock Validation Battles
HOWTO: Provision the Bridge for your ERC-20
HOWTO: Setup an Agent
Developer & User Diligence

Trade-off

The Syscoin Ethereum Bridge is secured by Agent nodes participating in a decentralized and incentivized model that involves roles of Superblock challengers and submitters. This model is open to participation. The benefits here are trust-minimization, permissionless-ness, and potentially less legal/regulatory red-tape than interop mechanisms that involve liquidity providers and/or trading mechanisms.
The trade-off is that due to the decentralized nature there are cross-chain settlement times of one hour to cross from Ethereum to Syscoin, and three hours to cross from Syscoin to Ethereum. We are exploring ways to reduce this time while maintaining decentralization via zkp. Even so, an “instant bridge” experience could be provided by means of a third-party liquidity mechanism. That option exists but is not required for bridge functionality today. Typically bridges are used with batch value, not with high frequencies of smaller values, and generally it is advantageous to keep some value on both chains for maximum availability of utility. Even so, the cross-chain settlement time is good to mention here.

Cost

Ethereum -> Syscoin: Matic or Ethereum transaction fee for bridge contract interaction, negligible Syscoin transaction fee for minting tokens
Syscoin -> Ethereum: Negligible Syscoin transaction fee for burning tokens, 0.01% transaction fee paid to Bridge Agent in the form of the ERC-20, Matic or Ethereum transaction fee for contract interaction.

Z-DAG

Zero-Confirmation Directed Acyclic Graph is an instant settlement protocol that is used as a complementary system to proof-of-work (PoW) in the confirmation of Syscoin service transactions. In essence, a Z-DAG is simply a directed acyclic graph (DAG) where validating nodes verify the sequential ordering of transactions that are received in their memory pools. Z-DAG is used by the validating nodes across the network to ensure that there is absolute consensus on the ordering of transactions and no balances are overflowed (no double-spends).

Benefits

  • Unique fee-market that is more efficient for microtransaction redemption and settlement
  • Uses decentralized means to enable tokens with value transfer scalability that is comparable or exceeds that of credit card networks
  • Provides high throughput and secure fulfillment even if blocks are full
  • Probabilistic and interactive
  • 99.9999% security assurance within 10 seconds
  • Can serve payment channels as a resilience fallback that is faster and lower-cost than falling-back directly to a blockchain
  • Each Z-DAG transaction also settles onchain through Syscoin Core at 60-second block target using SHA-256 Proof of Work consensus
https://preview.redd.it/pgbx84jih8e51.png?width=1614&format=png&auto=webp&s=5f631d42a33dc698365eb8dd184b6d442def6640

Source code

https://github.com/syscoin/syscoin

API

Syscoin-js provides tooling for all Syscoin Core RPCs including interactivity with Z-DAG.

Documentation

Z-DAG White Paper
Useful read: An in-depth Z-DAG discussion between Syscoin Core developer Jag Sidhu and Brave Software Research Engineer Gonçalo Pestana

Trade-off

Z-DAG enables the ideal speed/security tradeoff to be determined per use-case in the application layer. It minimizes the sacrifice required to accept and redeem fast transfers/payments while providing more-than-ample security for microtransactions. This is supported on the premise that a Reddit user receiving points does need security yet generally doesn’t want nor need to wait for the same level of security as a nation-state settling an international trade debt. In any case, each Z-DAG transaction settles onchain at a block target of 60 seconds.

Syscoin Specs

Syscoin 3.0 White Paper
(4.0 white paper is pending. For improved scalability and less blockchain bloat, some features of v3 no longer exist in current v4: Specifically Marketplace Offers, Aliases, Escrow, Certificates, Pruning, Encrypted Messaging)
  • 16MB block bandwidth per minute assuming segwit witness carrying transactions, and transactions ~200 bytes on average
  • SHA256 merge mined with Bitcoin
  • UTXO asset layer, with base Syscoin layer sharing identical security policies as Bitcoin Core
  • Z-DAG on asset layer, bridge to Ethereum on asset layer
  • On-chain scaling with prospect of enabling enterprise grade reliable trustless payment processing with on/offchain hybrid solution
  • Focus only on Simple Value Transfers. MVP of blockchain consensus footprint is balances and ownership of them. Everything else can reduce data availability in exchange for scale (Ethereum 2.0 model). We leave that to other designs, we focus on transfers.
  • Future integrations of MAST/Taproot to get more complex value transfers without trading off trustlessness or decentralization.
  • Zero-knowledge Proofs are a cryptographic new frontier. We are dabbling here to generalize the concept of bridging and also verify the state of a chain efficiently. We also apply it in our Digital Identity projects at Blockchain Foundry (a publicly traded company which develops Syscoin softwares for clients). We are also looking to integrate privacy preserving payment channels for off-chain payments through zkSNARK hub & spoke design which does not suffer from the HTLC attack vectors evident on LN. Much of the issues plaguing Lightning Network can be resolved using a zkSNARK design whilst also providing the ability to do a multi-asset payment channel system. Currently we found a showstopper attack (American Call Option) on LN if we were to use multiple-assets. This would not exist in a system such as this.

Wallets

Web3 and mobile wallets are under active development by Blockchain Foundry Inc as WebAssembly applications and expected for release not long after mainnet deployment of Syscoin Core 4.2. Both of these will be multi-coin wallets that support Syscoin, SPTs, Ethereum, and ERC-20 tokens. The Web3 wallet will provide functionality similar to Metamask.
Syscoin Platform and tokens are already integrated with Blockbook. Custom hardware wallet support currently exists via ElectrumSys. First-class HW wallet integration through apps such as Ledger Live will exist after 4.2.
Current supported wallets
Syscoin Spark Desktop
Syscoin-Qt

Explorers

Mainnet: https://sys1.bcfn.ca (Blockbook)
Testnet: https://explorer-testnet.blockchainfoundry.co

Thank you for close consideration of our proposal. We look forward to feedback, and to working with the Reddit community to implement an ideal solution using Syscoin Platform!

submitted by sidhujag to ethereum [link] [comments]

[PSA] Electrum and Eclair both support Testnet-LN to learn about LN

Update

I rewrote this post to clean it up a bit and add more context.
With the last few drops of Electrum it's been much easier to use LN. I've played around with Electrum-desktop on testnet. Everything worked great, and it is a great way to learn about channel capacity and invoices without having to put real money at risk. Electrum has a "swap" button to adjust capacity but I think it may be broken on testnet presently. There are a few ways to adjust capacity / liquidity that I'll discuss below.

Get Electrum running

  1. Install Electrum 4.0.2 and run it on testnet enabling LN.
  2. Get testnet BTC and send it to Electrum
  3. Open a channel in Electrum with either a known entity, or use their channel suggestion
  4. Wait an hour or so for the channel to open.
  5. Perform a submarine-swap operation to give you a 50/50 capacity
  6. Wait for the swap to complete

Balance capacity

LN channels have a (local) sending capacity and a (remote) receiving capacity. To verify your local/remote capacity click on the channel and view "Details". New channels default to 100%/0% local/remote capacity, meaning you can send, but not receive. There is also some rule that requires you to be below 90% local before you can receive anything. So if you need to receive payments on LN before you spend 10% of your local capacity you will need to find a way to balance local/remote. As mentioned before, the easiest is just to spend (try starblocks), but if you don't have anything to spend on there are some other options

Test Node Visibility

Once you free up some receive capacity, you also need to ensure that your node is reachable. In the default config your node will not be publicly visible. Electrum will handle the last hop for you, but your sender still need to at least be able to route to one of the nodes you have receive capacity on. This may occationally fail causing "Path not found" errots when sending, or when others send to you. In the Electrum preferences there are some options to run local watchtowers and keep the app resident. This will help since your wallet needs to be running for it to receive payments. But even if you enable all options sometimes you will just end up on an isolated node. If this happens, take care to ensure you connect to nodes that are highly connected to others (view 1ml highly connect list).
If you want to test your visibility, just paste an invoice in this thread and hopefully someone can try to send you some tBTC-LN.
submitted by brianddk to Bitcoin [link] [comments]

Beginner guide to Electrum on Testnet-LN allowing you to learn without cost.

Update

I rewrote this post to clean it up a bit and add more context. The original can still be found here
With the last few drops of Electrum it's been much easier to use LN. I've played around with Electrum-desktop on testnet. Everything worked great, and it is a great way to learn about channel capacity and invoices without having to put real money at risk. Electrum has a "swap" button to adjust capacity but I think it may be broken on testnet presently. There are a few ways to adjust capacity / liquidity that I'll discuss below.

Get Electrum running

  1. Install Electrum 4.0.2 and run it on testnet enabling LN.
  2. Get testnet BTC and send it to Electrum
  3. Open a channel in Electrum with either a known entity, or use their channel suggestion
  4. Wait an hour or so for the channel to open.
  5. Perform a submarine-swap operation to give you a 50/50 capacity
  6. Wait for the swap to complete

Balance capacity

LN channels have a (local) sending capacity and a (remote) receiving capacity. To verify your local/remote capacity click on the channel and view "Details". New channels default to 100%/0% local/remote capacity, meaning you can send, but not receive. There is also some rule that requires you to be below 90% local before you can receive anything. So if you need to receive payments on LN before you spend 10% of your local capacity you will need to find a way to balance local/remote. As mentioned before, the easiest is just to spend, but if you don't have anything to spend on there are some other options

Test Node Visibility

Once you free up some receive capacity, you also need to ensure that your node is reachable. In the default config your node will not be publicly visible. Electrum will handle the last hop for you, but your sender still need to at least be able to route to one of the nodes you have receive capacity on. This may occationally fail causing "Path not found" errots when sending, or when others send to you. In the Electrum preferences there are some options to run local watchtowers and keep the app resident. This will help since your wallet needs to be running for it to receive payments. But even if you enable all options sometimes you will just end up on an isolated node. If this happens, take care to ensure you connect to nodes that are highly connected to others.
If you want to test your visibility, just paste an invoice in this thread and hopefully someone can try to send you some tBTC-LN.
submitted by brianddk to brianddk [link] [comments]

Eat here in Pisa, Italy

Eat here in Pisa, Italy submitted by dmbr0 to Bitcoin [link] [comments]

Coordinator fee vs. mining fee

Can someone help me understand the cost of doing a CJ and how that breaks out to mining fee versus coordinator fee?
It says coordinator fee is 0.003% per anon set. Should I be able to calculate the coordinator fee and then the rest of my lost bitcoin is transaction fee?
Who determines the mining fee in a CJ? Sometimes I see fee of 2 sat/byte and sometimes it is 100 sat/byte. Would the coordinator eat this difference or are the users charged the difference? Since the transaction size is very large, I am worried about wasting bitcoin running Wasabi during high fee environments.
It would be nice if there was an option to "bid" to enter a CJ with a mining fee. If you can find 100 users above a certain fee, it will create the CJ with that fee. Like right now I am fine with the CJs hanging in the mempool forever so I would like to do it at 2 sat/byte.
submitted by hanzed0000000x to WasabiWallet [link] [comments]

What does the speed of transaction depend on?

What does the speed of transaction depend on?
Good day, readers! 👋🏻
Today, we are going to share with you some important information on what the speed of transaction depends on.
🔹 Miners take transactions from the mempool, form blocks from them and process them. They receive a reward for processing one block of transactions in the #blockchain.
🔹 The transaction speed depends on the number of coins sent and on the commission that the sender is willing to pay for the quick delivery of his message.
🔹 Some wallets allow customers to increase commission and thereby speed up transactions. Others (such as Coinbase), calculate the commission themselves using mechanisms that they do not want to disclose. As a result, miners receive not only remuneration for the block, but also additional commissions.
🔹 This encourages miners to select transactions with higher fees for volumes or for the speed of sending. Thus, it is the miners who are the key participants in cryptocurrency transactions. It depends on the miners how quickly the recipient receives the coins.
💎 Relictum Pro allows you to confirm transactions within the network of current cryptocurrencies: Bitcoin, Ethereum, Litecoin, Dogecoin, etc. Transaction confirmations happen instantly. Even if Bitcoin has not reached the owner, a user can already immediately dispose of it.
💎 #Relictum Pro transaction speed (the rate of filling the entire network with blocks in each node) takes from 0.5 to 1 second. ⚡️ While the average speed of filing the network (all nodes) with blocks (Bitcoin or Ether) existing for competitors, taking into account the confirmations, takes, on average, from 10 minutes to several weeks.
🥇 For more details, visit our website: https://relictum.pro
📣 Follow our page on social media to stay tuned for more exciting posts!
https://preview.redd.it/8yj8k54u6mw41.png?width=1200&format=png&auto=webp&s=635d99cb608315e1ce3c0f4103860e1640cb60ad
submitted by RelictumPro_official to relictumpro [link] [comments]

Numbers on the screen or how digital payment systems make the market fair?

Numbers on the screen or how digital payment systems make the market fair?

https://preview.redd.it/6m1gp2mvotx41.png?width=1160&format=png&auto=webp&s=a83f0346d8008c17968d6a240cfba8fe3fe4e2aa
Continuing the trend of practicality characteristic of the XXI century, paper money is gradually disappearing from our lives, giving way to more practical digital storage. However, the digitized banking that we now use every day is still far from perfect. For starters, it is completely controlled by third parties. No one owns the numbers they see on the screen — control is entirely owned by third parties, such as banks.
Banks create money out of thin air, and credit is a prime example of this. Money is no longer printed when someone takes out an overdraft or mortgage-it is simply created out of nothing. Moreover, these banks charge disproportionately high fees for the services they provide, and these services are outdated and impractical today.
For example, it is impractical to pay a Commission to spend your money abroad, as it is impractical to wait a few days to verify the transfer of a small amount from You to your relative. All this makes no sense in the interconnected and instantaneous world in which We live today.
Thus, the monetary system has ceased to be practical, it is replaced by a higher form of value storage. In this particular case, it is replaced by a faster and safer system that eliminates expensive operations and gives control to the person.
https://i.redd.it/quc2bgmxotx41.gif
Money that you have in your Bank account can be considered a virtual currency since it does not have a physical form and exists only in the Bank book. If they lose the book, your money will simply disappear. These are just numbers that you see on the screen. The numbers are stored on the hard drives of Bank servers.

https://i.redd.it/4nvhydtzotx41.gif
Do you open a regular app and think you have money? They are just bytes of the computer system. Today’s global payment infrastructure moves money from one payment system to another through a series of internal Deposit transfers between financial institutions. Since these transfers occur in different systems with a low level of coordination, the calculation of funds is slow, often 3–5 days, capturing liquidity.

How do payments work?

When you make a money transfer, for example, from your Bank card to the Bank card of a friend or acquaintance, you see an instant transfer, so to speak, moving numbers from you to the Recipient. For the user, the transfer is carried out instantly, and the exchange of obligations between the participants of the process takes place within 3–7 days, the User does not know about it and hardly ever thinks about it.

https://preview.redd.it/rl4aai81ptx41.png?width=1400&format=png&auto=webp&s=cdfa10f0d68442aac84c14e3bae5a52e92651878
When you make a payment at a supermarket or any other point of sale, at the time of payment, information from the POS-terminal is sent to the acquiring Bank — then the acquiring Bank sends a request that passes through the payment system (Visa or MasterCard) and then transmitted to Your Bank, which confirms the operation. At this point, there is no write-off of funds. The funds are temporarily held, and the actual withdrawal will take place within a few days, the maximum processing time is up to 30 days.
https://i.redd.it/8njxgxq2ptx41.gif

Currency transactions and payments abroad

You may have noticed that after making a transaction in a different currency, such as yen or dirhams, or any other currency that differs from the currency of your account or buying an item abroad, the amount charged may differ from the amount that was reflected immediately after payment.

Why is this happening?

As soon As you have made a transaction with Your Bank card — the local Bank transfers the information to the payment system: Visa or MasterCard — the payment system converts the currency used into the billing currency.
Billing currency — the currency that will be used for payment with the payment system by your Bank that issued the card. For the US, the billing currency is the dollar, in Europe — the Euro.
The billing currency may also differ depending on the issuing Bank — the Bank that issued your debit card. For example, some banks use the billing currency — Euro when making payments with MasterCard cards in the United States, which will lead to additional costs when converting euros into dollars.
If the payment is in other currencies, the payment scheme will become more complicated and, accordingly, its cost will be more expensive. The transfer rate from one settlement currency to another is set by the payment system: Visa and MasterCard.
If the currency of your Bankcard is the same as the currency of the payment system, the payment will take place without additional operations. For example, You have a dollar card, you make a payment in dollars in the United States, and if you make a payment with a dollar card in Europe, your Bank will convert the amount at its exchange rate, which will lead to additional costs. There are exceptions, some European banks can use dollars for settlements, but this is more an exception than a rule.
Also, if, for example, you pay for purchases in China using a Bank card in euros, then double conversion is inevitable.
Thus, payment in dollars is universal all over the world, except for the European Union countries. The dollar is a global currency and is therefore often used for binding in international settlements.
Now we understand that due to differences in the account currency and the differences in the VISA or MasterCard payment system, additional conversions may occur, which will lead to additional bank fees. as a result, the actual payment amount will differ from the amount debited from your card.
In addition to paying for conversion in the payment system and paying for currency conversion in your Bank, some banks charge an additional fee for conducting a cross-border transaction.

Where do we lose money when making debit card payments?


https://i.redd.it/tykhrd56ptx41.gif
  1. Currency conversion by the payment system;
  2. Euro-Dollar, or in the case of processing payment via MasterCard in Turkey, Turkish lira-Euro and additional conversion on the side of the issuing Bank (your Bank) Euro — Dollar.
  3. Currency conversion by an acquiring bank;
  4. The difference between the exchange rate on the purchase date and the write-off date. We purchased at a rate of 0.91 euros per dollar, and the write-off occurred at a rate of 0.94 euros per dollar.
  5. A large number of currency conversions.
  6. The greater the number of them, the more we will lose when buying. For example, when paying in the UAE or China, buying a product for the local currency, we understand that the number of conversions increases several times.
If we touch on the topic of international translations, we will encounter additional nuances:
  • This is the payment processing time. International payments can be processed within 3–5 days, as mentioned above, which in our dynamic time — it interferes with the comfortable use of the system.
  • Restrictions on the amounts;
  • Possible requirements for certain documentation for payment confirmation;
  • Additional fees and commissions, sometimes hidden fees.
It is not always possible to make a transfer quickly and when necessary due to these restrictions. All this confirms the complexity of the operations and additional commissions that the user pays.

Сryptocurrency exchanges

And now back to the numbers on the screen, this topic affects not only banks but also centralized cryptocurrency exchanges:
  • You top up your Deposit on the exchange in cryptocurrency-then you use numbers inside the exchange, and real funds are most often stored on “cold storage” for which administrators or other responsible persons are responsible.
  • Only when you make a withdrawal from the exchange to your wallet-you are sent real funds (tokens or cryptocurrency).
The same applies to centralized applications and online services that deal with cryptocurrencies:
There are many services, both online and apps, that are centralized, regardless of what they will be called: Bitcoin wallet or bitcoin exchange. This means that when you add funds to an account in such a wallet, the funds are stored on the developecompany’s side. In simple words, all your funds are stored in the wallets of the system’s creators.
If you use a centralized app, you have a risk of losing funds. Although the application is called cryptocurrency, it does not affect its main principles — it is decentralization.
In other words, using systems where there is a Central authority, especially in the cryptocurrency market — the risk increases, so we recommend using decentralized systems for storing currency to reduce risks to a minimum.
Decentralization is the process of redistributing, dispersing functions, forces, power, people, or things from a Central location or governing body. Centralization is a condition in which the right to make the most important decisions remains with the highest levels of management.

Peer-to-peer payment systems

The opposite and standard of security and independence are peer-to-peer payment systems. Using the application-level network Protocol, clients running on multiple computers connect to form a peer-to-peer network.

https://preview.redd.it/ojcg4fz7ptx41.png?width=601&format=png&auto=webp&s=6cc81d1617b0cb64a3f5c7cc6d06a78354386f8c
There are no dedicated servers in such a network, and each node is both a client and performs server functions. In contrast to the client-server architecture, this organization allows you to maintain the network operability with any number and any combination of available nodes. All nodes are members of the network.

https://preview.redd.it/npttc3a9ptx41.png?width=1000&format=png&auto=webp&s=0f2dee1e5b19436a847dca96e2b3b7f22b801b57
Tkeycoin is a decentralized peer-to-peer payment system based on p2p principles and the concept of electronic cash. P2P technology is a fairer means of mutual settlements between users and companies around the world. Modern payment systems are imperfect and may depend on the will of high-ranking officials.
The main goal of Tkeycoin is to create universal products that will make financial transactions more accessible, profitable and secure.

https://i.redd.it/gk6j0m9bptx41.gif

What do decentralized systems protect against?

Using decentralized tools, for example, a local Tkeycoin wallet or a Multi-currency blockchain tkeyspace wallet — Your funds belong only to You and only You can use them, which eliminates the risks of third-party bankruptcy, and such a decentralized architecture can also protect against natural disasters. Given that there is no central server that can be damaged in a natural disaster, the system can work even if there are 2 nodes.

https://i.redd.it/sb6i2ladptx41.gif
In addition to force majeure situations, you protect your funds from theft and any sanctions from third parties-in our time, this is very important. The owner of Tkeycoin does not need Bank branches, does not need additional verifications, and does not need permission to use, transfer, or even transport Tkeycoin. You can easily carry $1 million worth of Tkeycoin in your pocket and even in theory not know any troubles.

https://preview.redd.it/uvw9vfyeptx41.png?width=1400&format=png&auto=webp&s=14b89acca3568fdc5eb82d986aaa2710219ced91
Besides, it is extremely convenient and safe to store even multibillion-dollar capital in Tkeycoin. Imagine that you have a lot, a lot of money, and you need a safe place to store it. Where do you apply? Of course, the Swiss Bank, Yes, but it can easily freeze your accounts and you can easily lose your savings. In recent years, many banks are actively fighting against gray non-cash funds (including offshore ones), and every month more and more legal proceedings are organized on this basis.

https://preview.redd.it/vodiuq5gptx41.png?width=1400&format=png&auto=webp&s=31ab44da4431b0159ef1213db7e37c6fd92d5b0a
The fact is that serious money, for the most part, has a gray tinge, and only a tiny fraction of billions and millions are clean for the law. That is why their owners are often called to court, subjected to pressure, forced to leave the country, and so on. If your money is stored in Tkeycoin, you will not be subjected to such pressure and will avoid the lion’s share of troubles that usually accompany accounts with many zeros.
Using peer-to-peer systems — you will not be called by a Bank Manager and require documents or a fraudster who asks for Your card number and SMS for confirmation. This is simply not the case, wallets are encrypted, and using different addresses guarantees privacy.
As for fees for transfers, there are no Visa or Mastercard payment systems, as well as additional fees that we discussed above.

How are payments made in the Tkeycoin peer-to-peer payment system?


https://i.redd.it/9ftct10iptx41.gif
As soon as you sign a transaction, it is sent to the blockchain and the miners are engaged in its confirmation, for which they take a symbolic Commission. Let’s look at an example, the key rate is $1, the transfer fee will be 0.00001970 TKEY or 0.00000174 TKEY.
0.00001970 TKEY=$0.00001970 0.00000174 TKEY=$0.00000174
Accordingly, commissions are almost zero. In Europe, on average, you will pay $15–20 for a small Bank transfer.
For example, now sending 1 million dollars to BTC, You will pay a Commission in the area of ≈3–8 dollars. Just think, 1 million dollars, without restrictions, risks, and sanctions, and most importantly, the transaction will be the available day today, and you paid an average of ≈5 dollars for the transfer.

Transactions in the Tkeycoin blockchain

Now let’s touch on the topic of how a transaction in the blockchain goes. Once you have sent a transaction, it will be available to the Recipient. The transaction takes place instantly and the User sees not” numbers on the screen”, but real funds-cryptocurrency. This is very convenient when you make any transactions and the Recipient needs to make sure that the payment came.
In the full node-there is a choice of confirmation blocks — this is the amount after which you can use the received cryptocurrency. When sending, you can select the number of confirmations:
• 2 blocks≈10 minutes • 4 block≈40 minutes • 6 blocks≈60 minutes • 12 blocks≈120 minutes • 24 blocks≈4 hours • 48 blocks≈8 hours • 144 blocks≈24 hours • 504 blocks≈3 days • 1008 blocks≈7 days
As we can see, you can also set a weekly confirmation if necessary. The minimum recommended number is 3 blocks. by default, the full node (local wallet) has 6 blocks installed. The presence of this number of confirmations ensures that Your block will not be forged and will be accepted by the network.
Each new transaction that receives network approval is sent to mempool, where it waits for miners to confirm it. When a miner takes a transaction to include it in the next block, it automatically receives the first confirmation.

Generating blocks in the TKEY network

A block in the TKEY network is generated within 6–10 minutes. the network automatically corrects the complexity and time of block formation. Thousands of transactions or a single transaction can be placed in a block.

https://i.redd.it/f9d17k8uptx41.gif
Transactions work faster in the TKEYSPACE app because we have already enabled new algorithms and this is now the fastest and most convenient way to exchange various digital currencies.

https://preview.redd.it/nnz5krdvptx41.png?width=1400&format=png&auto=webp&s=fee452ae6389c8f46d97357777193ed2b10bc4bc
Anyway, using the full node is also one of the safest ways to store and send Tkeycoin cryptocurrency, and most importantly, the full node stores a full copy of the entire blockchain, which benefits the network and provides protection from information forgery.
The more popular the project becomes, the more load is placed on the network itself. For example, 10,000 transactions passed in one block that was processed quickly, while the other 10–20 transactions in another block hung for a longer time, so temporary “pits” may appear. To deal with them, we are working on implementing additional chains-separate chains that are created for cross-transactions, which ensures fast payments under heavy load.
For the global system — we get a shipment around the world in 6–10 minutes, in cross-chains in 10 seconds. In comparison with the global payment system, which processes cross — border payments within 3–5 days, this is a huge advantage. If we add liquidity to this, we will get a perfect payment system.
https://preview.redd.it/2d0uu4gxptx41.png?width=1200&format=png&auto=webp&s=ae5f2f0bc8b7c7dedd1814eb32e97092a6330c3a
Also, you should not forget that if you did not sync with the network and sent a transaction, the transaction may hang in its memory pool and you will have to perform several actions to solve this situation. Here we must understand that syncing with the network is an important point because if you have a connection failure in the Internet Bank, the payment will also not be processed. After all, it will not be sent to a specialist for confirmation.
If you are currently experiencing any delays with transactions, this is due to the transition of CPU mining to GPU, as soon as miners switch to new mining methods, the confirmation of blocks will be consistently fast.
In conclusion: blockchain is a new technology and many terms, concepts and how it all works are still difficult for many to understand and this is normal from innovation.
In many countries, the word cryptocurrency and blockchain are synonymous and no one wants to understand the reality, most people believe that if the blockchain, it means it is related to trading on the cryptocurrency exchange. No one thinks about the real usefulness of certain solutions that will become commonplace for Us in the future.
For example, the Internet banking system dates back to the ’80s of the last century, when the Home Banking system was created in the United States. This system allowed depositors to check their accounts by connecting to the Bank’s computer via their phone. In the future, as the Internet and Internet technologies develop, banks are beginning to introduce systems that allow depositors to get information about their accounts via the Internet. For the first time, the service of transferring funds from accounts was introduced in 1994 in the United States by the Stanford Federal Credit Union, and in 1995 the first virtual Bank was created — Security First Network Bank. But, to the disappointment of the founders of the project, it failed because of strong distrust from potential customers, who, at that time, did not trust such an innovation.
Only in 2001, Bank of America became the first among all banks that provide e-banking services, the whole user base for this service exceeded 2 million customers. At that time, this figure was about 20 % of all Bank customers. And in October of the same year, 2001, and the same Bank of America took the bar in 3 million money transfers made using online banking services for a total amount of more than 1 billion US dollars. Currently, in Western Europe and America, more than 50% of the entire adult population uses e-banking services, and this figure reaches 90% among adult Internet users.
Life changes, and in the bustle of everyday work — we do not even notice how quickly all processes change.
We are experiencing a technological revolution that is inevitable.

https://i.redd.it/afcfj3rzptx41.gif
submitted by tkeycoin to Tkeycoin_Official [link] [comments]

How much would a Bitcoin node handling 1GB blocks cost today? I did some back-on-the-envelope calculations.

1GB blocks would be able to confirm more than 5000tx/s. That would be VISA-level scale (which handles, on average, 1736tx/s). We often hear that we shouldn't raise the blocksize because then nodes would become too expensive to run. But how expensive exactly?
We have the following costs to take into account:
For now, I'm going to assume a non-pruned full node (i.e. a node that stores all transactions of the blockchain) for personal use, i.e. for a computer built at home. I'll add in the calculations for a pruned node at the end, which would likely be the prefered option for people who merely want to verify the blockchain for themselves. If you don't care about the assumptions and calculations, you can just jump right to the end of this post. If you spotted any error, please inform me and I'll update my calculation.

Storage

There's, on average, one block every 10 minutes, that is 144 every day and 4320 blocks every thirty days. I was able to find a 3TB HDD for $47,50 on Amazon, that is $0.018/GB. Storing all blocks with all transactions of a month (4320GB) would be $78.96/mo. Prices for storage halved from 2014 to 2017, so we can assume that to half in 2022, thus we can reasonably assume it'd cost around $40/mo. in 2022.
But would such an inexpensive hard disk be able to keep up with writing all the data? I found a comparable cheap HDD which can write 127MB/s sequentially (which would be the writing mode of Bitcoin). That would be enough even for 76GB blocks!
Edit: For the UTXO set, we need very fast storage for both reading and writing. Peter__R, in his comment below, estimates this to be 1TB for 4 billion users (which would make ~46,000tx/s if everyone would make 1tx/day, so id'd require about 10GB blocks). jtoomim seems more pessimistic on that front, he says that much of that has to be in RAM. I'll add the $315 I've calculated below to account for that (which would be rather optimistic, keep in mind).

Bandwidth

Bandwidth is more complicated, because that can't just be shipped around like HDDs. I'll just take prices for my country, Germany, using the provider T-online, because I don't know how it works in the US. You can plug in your own numbers based on the calculations below.
1GB blocks/10 minute mean 1.7MB/s. However, this is an average, and we need some wiggle room for transaction spikes, for example at Christmas or Black Friday. VISA handles 150 million transactions per day, that is 1736tx/s, but can handle up to 24,000tx/s (source). So we should be able to handle 13.8x the average throughput, which would be 1.7MB/s x 13.8 = 23.46M/s, or 187.68Mbit/s. The plan on T-online for 250Mbit/s (translated) would be 54.95€/mo (plus setup minus a discount for the first 6 months which seems to cancel out so we'll ignore it), which would be $61.78/mo. This plan is an actual flatrate, so we don't have to worry about hitting any download limit.
Note, however, that we don't order bandwidth for only our Bitcoin node, but also for personal use. If we only needed 2MB/s for personal use, the plan would be 34.95€, thus our node would actually only cost the difference of 20€ per month, or $22.50/mo. Nielsen's Law of Internet Bandwidth claims that a high-end user's connection speed grows by 50% per year. If we assume this is true for pricing too, the bandwidth cost for ~200Mbit/s/mo. would go down to 12.5% (forgot how exponential growth works) 29.6% of its today's cost by 2022, which decreases our number to $2.81/mo. $6.66/mo.
Edit: jtoomim, markblundeberg and CaptainPatent point out that the node would have a much higher bandwidth for announcing transactions and uploading historical blocks. In theory, it would not be necessary to do any of those things and still be able to verify one's own transactions, by never broadcasting any transactions. That would be quite leechy behaviour, though. If we were to pick a higher data plan to get 1000MBit/s downstream and 500MBit/s upstream, it would cost 119.95€/mo., however this plan isn't widely available yet (both links in German). 500MBit/s of upstream would give us max. 21 connected nodes at transaction spikes, or max. 294 connected nodes at average load. That would cost $39.85 in 2022 (with correct exponential growth).

CPU/Memory

CPU/Memory will be bought once and can then run for tens of years, so we'll count these as setup costs. The specs needed, of course, depend on the optimization of the node software, but we'll assume the current bottlenecks will have been removed once running a node actually becomes demanding hardware-wise.
This paper establishes that a 2.4GHz Intel Westmere (Xeon E5620) CPU can verify 71000 signatures per second... which can be bought for $32.88 a pair on Ebay (note: this CPU is from Q1'10). We'd need to verify 76659tx/s at spikes (taking the 13.8x number), so that pair of CPUs (handle 142,000tx/s) seem to just fit right in (given one signature per tx). We'd also have to account for multiple signatures per transaction and all the other parts of verification of transactions, but it seems like the CPU costs are neglegible anyway if we don't buy the freshest hardware available. ~$100 at current prices seem reasonable. Given Moore's Law, we can assume that prices for CPUs half every two years (transistor count x1.4162), so in three years, the CPU(s) should cost around $35.22 ($100/1.4163).
For memory, we again have to take into account the transaction spikes. If we're very unlucky, and transactions spike and there won't be a block for ~1h, the mempool can become very large. If we take the factor of 13.8x from above, and 1h of unconfirmed transactions (20,000,000tx usually, 276,000,000tx on spikes), we'd need 82.8GB (for 300B per transaction).
I found 32GB of RAM (with ECC) for $106, so three of those give us 96GB of RAM for $318 and plenty remaining space for building hash trees, connection management and the operating system. Buying used hardware doesn't seem to decrease the cost significantly (we actually do need a lot of RAM, compared to CPU power).
Price of RAM seems to decrease by a factor of x100 every 10 years (x1.58510), so we can expect 96GB to cost around $79.89 ($318/1.5853) in 2022.
Of course, CPU and memory need to be compatible, which I haven't taken into account. Chug a mainboard (~$150) and a power supply (~$50) into the mix, and the total would be just over $600 for today's prices. Even if mainboard and power supply prices remain the same, we'd still only have to pay around $315 for the whole setup in 2022.

Electricity

I found the following power consumptions:
So we'd have 129W 147.6W + N*6W. Electricity cost average at 12ct/kWh in the US, in Germany this is higher at 30.22ct/kWh. In the US, it would cost $11.14 $12.75 + N*$0.52 (P*12ct/kWh / 1000 * 24h/day *30days / 100ct/$), in Germany 28.06€ 32.11€ + N*1.30€.
At the end of the first year, it would cost $20.12 $21.73/mo. in the US and 50.52€ 54.57€/mo. in Germany.
At the end of the second year, it would cost $29.11 $30.72/mo. for the US and 72.98€ 77.03€/mo. for Germany. It increases by $8.98/mo. per year in the US and by 22.46€/mo. per year in Germany.
Electricity prices in Germany have increased over time due to increased taxation; in the US the price increase has been below inflation rate the last two decades. As it's difficult to predict price changes here, I'm going to assume prices will remain the same.

Conclusion

In summary, we get:
If we add everything up, for today's prices, we get (E: updated all following numbers, but only changed slightly) $132/mo. (US), $187/mo. (DE) for the second year and $71.92/mo. $78/mo. (US), $115.79/mo. $124/mo. (DE) in 2022.
It definitely is quite a bit of money, but consider what that machine would actually do; it would basically do the equivalent of VISA's payment verification multiple times over, which is an amazing feat. Also, piano lessons cost around $50-$100 each, so if we consider a Bitcoin hobbyist, he would still pay much less for his hobby than a piano player, who'd pay about $400 per month. So it's entirely reasonable to assume that even if we had 1GB blocks, there would still be lots of people running full-nodes just so.
How about pruned nodes? Here, we only have to store the Unspent Transaction Output Set (UTXO set), which currently clocks in at 2.8GB. If blocks get 1000 times bigger, we can assume the UTXO set to become 2.8TB. I'll assume ordinary HDD's aren't goint to cut it for reading/writing the UTXO set at that scale, so we'll take some NVMe SSDs for that, currently priced at $105/TB. Three of them would increase our setup by $315 to $915, but decrease our monthly costs. E: However this UTXO set is also required for the non-pruned node, therefore the setup costs stay at $915. Even in the highest power state, the 3 SSDs will need only 18.6W in total, so we'll get a constant 147.6W for the whole system.
In total, this is:
In total, this is $35.25/mo. in the US and $58.57/mo. in Germany for today's prices, or (E:) $19.41/mo. (US) and (E:) $42.73/mo. (DE) in 2022's prices. Which looks very affordable even for a non-hobbyist.
E: spelling
E²: I've added the 3 NVEe SSDs for the UTXO set, as pointed out by others and fixed an error with exponentials, as I figured out.
submitted by eyeofpython to btc [link] [comments]

/r/Bitcoin FAQ - Newcomers please read

Welcome to the /Bitcoin Sticky FAQ

You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.
The following videos are a good starting point for understanding how bitcoin works and a little about its long term potential:
For some more great introductory videos check out Andreas Antonopoulos's YouTube playlists, he is probably the best bitcoin educator out there today. Also have to give mention to James D'Angelo's Bitcoin 101 Blackboard series. Lots of additional video resources can be found at the videos wiki page or /BitcoinTV.
Key properties of bitcoin
Some excellent writing on Bitcoin's value proposition and future can be found here. Bitcoin statistics can be found here, here and here. Developer resources can be found here and here. Peer-reviewed research papers can be found here. The number of times Bitcoin was declared dead by the media can be found here. Scaling resources here, and of course the whitepaper that started it all.

Where can I buy bitcoins?

BuyBitcoinWorldwide.com and Howtobuybitcoin.io are helpful sites for beginners. You can buy or sell any amount of bitcoin and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also, check out the bitcoinity exchange resources for a larger list of options for purchases.
Bank Transfer Credit / Debit card Cash
Coinbase Coinbase LocalBitcoins
Gemini Bitstamp LibertyX
GDAX Bitit Mycelium LocalTrader
Bitstamp Cex.io BitQuick
Kraken CoinMama WallofCoins
Xapo BitcoinOTC
Cex.io
itBit
Bitit
Bitsquare
Here is a listing of local ATMs. If you would like your paycheck automatically converted to bitcoin use Cashila or Bitwage.
Note: Bitcoins are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. Preev is a useful site that that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".

Securing your bitcoins

With bitcoin you can "Be your own bank" and personally secure your bitcoins OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoins for you.
Android iOs Desktop
Mycelium BreadWallet Electrum
CoPay AirBitz Armory
Another interesting use case for physical storage/transfer is the Opendime. Opendime is a small USB stick that allows you to spend Bitcoin by physically passing it along so it's anonymous and tangible like cash.
Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!
2FA requires a second confirmation code to access your account, usually from a text message or app, making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.
Google Auth Authy
Android Android
iOS iOS

Where can I spend bitcoins?

A more comprehensive list can be found at the Trade FAQ but some more commons ones are below.
Store Product
Gyft Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
Steam, HumbleBundle, Games Planet, itch.io, g2g and kinguin For when you need to get your game on
Microsoft Xbox games, phone apps and software
Spendabit, The Bitcoin Shop, Overstock, DuoSearch, The Bitcoin Directory and BazaarBay Retail shopping with millions of results
ShakePay Generate one time use Visa cards in seconds
NewEgg and Dell For all your electronics needs
Cashila, Bitwa.la, Coinbills, Piixpay, Bitbill.eu, Bylls, Coins.ph, Bitrefill, Pey.de, LivingRoomofSatoshi, Hyphen.to, Coinsfer, GetPaidinBitcoin, Coins.co.th, More #1, #2 Bill payment
Foodler, Menufy, Takeaway, Thuisbezorgd NL, Pizza For Coins Takeout delivered to your door!
Expedia, Cheapair, Lot, Destinia, BTCTrip, Abitsky, SkyTours, Fluege the Travel category on Gyft and 9flats For when you need to get away
BoltVM, BitHost VPS service
Cryptostorm, Mullvad, and PIA VPN services
Namecheap, Porkbun For new domain name registration
Stampnik and GetUSPS Discounted USPS Priority, Express, First-Class mail postage
Reddit Gold Premium membership which can be gifted to others
Coinmap, 99Bitcoins and AirBitz are helpful to find local businesses accepting bitcoins. A good resource for UK residents is at wheretospendbitcoins.co.uk.
There are also lots of charities which accept bitcoin donations, such as Wikipedia, Red Cross, Amnesty International, United Way, ACLU and the EFF. You can find a longer list here.

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;
If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read more here. Still have mining questions? The crew at /BitcoinMining would be happy to help you out.
If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node using this setup guide. Bitseed is an easy option for getting set up. You can view the global node distribution here.

Earning bitcoins

Just like any other form of money, you can also earn bitcoins by being paid to do a job.
Site Description
WorkingForBitcoins, Bitwage, XBTfreelancer, Cryptogrind, Bitlancerr, Coinality, Bitgigs, /Jobs4Bitcoins, Rein Project Freelancing
OpenBazaar, Purse.io, Bitify, /Bitmarket, 21 Market Marketplaces
Watchmybit, Streamium.io, OTika.tv, XOtika.tv NSFW, /GirlsGoneBitcoin NSFW Video Streaming
Bitasker, BitforTip, WillPayCoin Tasks
Supload.com, SatoshiBox, JoyStream, File Army File/Image Sharing
CoinAd, A-ads, Coinzilla.io Advertising
You can also earn bitcoins by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins)

Bitcoin Projects

The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.
Project Description
Lightning Network, Amiko Pay, and Strawpay Payment channels for network scaling
Blockstream and Drivechain Sidechains
21, Inc. Open source library for the machine payable web
ShapeShift.io Trade between bitcoins and altcoins easily
Open Transactions, Counterparty, Omni, Open Assets, Symbiont and Chain Financial asset platforms
Hivemind and Augur Prediction markets
Mirror Smart contracts
Mediachain Decentralized media library
Tierion and Factom Records & Titles on the blockchain
BitMarkets, DropZone, Beaver and Open Bazaar Decentralized markets
Samourai and Dark Wallet - abandoned Privacy-enhancing wallets
JoinMarket CoinJoin implementation (Increase privacy and/or Earn interest on bitcoin holdings)
Coinffeine and Bitsquare Decentralized bitcoin exchanges
Keybase and Bitrated Identity & Reputation management
Bitmesh and Telehash Mesh networking
JoyStream BitTorrent client with paid seeding
MORPHiS Decentralized, encrypted internet
Storj and Sia Decentralized file storage
Streamium and Faradam Pay in real time for on-demand services
Abra Global P2P money transmitter network
bitSIM PIN secure hardware token between SIM & Phone
Identifi Decentralized address book w/ ratings system
Coinometrics Institutional-level Bitcoin Data & Research
Blocktrail and BitGo Multisig bitcoin API
Bitcore Open source Bitcoin javascript library
Insight Open source blockchain API
Leet Kill your friends and take their money ;)

Bitcoin Units

One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:
Unit Symbol Value Info
millibitcoin mBTC 1,000 per bitcoin SI unit for milli i.e. millilitre (mL) or millimetre (mm)
microbitcoin μBTC 1,000,000 per bitcoin SI unit for micro i.e microlitre (μL) or micrometre (μm)
bit bit 1,000,000 per bitcoin Colloquial "slang" term for microbitcoin
satoshi sat 100,000,000 per bitcoin Smallest unit in bitcoin, named after the inventor
For example, assuming an arbitrary exchange rate of $500 for one Bitcoin, a $10 meal would equal:
For more information check out the Bitcoin units wiki.
Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit. A complete list of bitcoin related subreddits can be found here
Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.
Welcome to the Bitcoin community and the new decentralized economy!
submitted by BinaryResult to Bitcoin [link] [comments]

Got this in my inbox a couple of minutes back

A new user sent me this to my inbox, its a description of the events after the fork, with a signed message at the bottom. I've gone through it once but its very late here in my timezone, have to go through it again tomorrow. I'm sure I'm not the the only receipient, but just in case pinging some people here.
https://honest.cash/kiarahpromise/sigop-counting-4528

*** EDIT 2 ***
Before you continue. From the Bitcoin whitepaper:
" The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes."

*** EDIT ***
Ok, I have slept over this.
How big is the chance that these two events, the sigop tx spamming of the network and the intended theft of funds stuck in segwit by an unknown miner, were coordinated and not coincidential? I slept over this message and am wondering if that was one two-phased plan and even this message was planned (probably a bit different but it was adapted afterwards to the new situation, that's why the first half of it is such a mess to read) to spread fear after the two plans got foiled.

The plan consisted of various Acts
Act 1) Distract and spam the network with sigop transactions that exploit a bug to cause distraction and halt all BCH transaction volume. The mempool would become filled with unconfirmed transactions
Act 2) When a patch is deployed, start your mining pool and mine the hell out of it to quickly create a legitimate block. They prepared the theft transactions and would hide them in the (predicted) massive mempool of unconfirmed transactions that would have been accumulated. They would mine a big block, everyone would be so happy that BCH works again, and devs would be busy looking for sigop transactions.
Act 3) Hope that the chain gets locked in via checkpoint so the theft cannot be reverted
Act 4) Leak to the media that plenty of BCH were stolen after the fork and the ABC client is so faulty it caused a halt of the network after the upgrade
Act 5) Make a shitload of money by shorting BCH (there was news about a appearance of a big short position right after the fork)

But the people who planned this attack have underestimated the awareness and speed of the BCH dev team. They were probably sure that Act 1 would take hours or even days so the mempool would be extremely bloated (maybe they speculated that everyone paniced and wanted to get out of BCH) and Act 2 would consequently be successful because no one would spot their theft transactions quick enough.

But they didn't calculate that someone is working together with various BCH pools in precaution to prevent exactly this scenario (segwit theft) and even prepared transactions to move all locked coins back to their owners.

Prohashings orphaned block was likely unpredicted collateral damage as Jonathan suggests below, because they were not involved in the plan of the two pools who prepared to return the segwit coins. I'm guessing that the pools did not expect a miner with an attacking theft block that early and had to decide quickly what to do when they spotted it.

So now that both plans have been foiled, Plan B) is coming into place again. Guerrilla style fear mongering about how BCH is not decentralized. Spread this info secretly in the community with the proof in form of a signed message connected to the transactions. Of course, the attacker worked actually alone, attacked us for our own good, and will do so again, because the evil dictatorship devs have to be eradicated....

As an unwanted side effect of these events the BTC.top and BTC.com "partnership" has been exposed. So what do we do with this new revelation is a question that we probably have to discuss.

They worked together with someone who wanted to return the segwit coins and avoided a theft. They used their combined hashing dominance to avoid a theft. I applaud them for that. From a moral perspective this is defendable and my suspicion that we have more backing for BCH than you can see with your eye by following hash rate charts is now being revealed as true again.

But the dilemma BCH has is revealed again as well. we need more of the SHA-256 hash rate cake because we actually do not want that any entity in this space has more than 50% hash power.

*** EDIT 2 ***
Added Satoshi's quote from the whitepaper.
submitted by grmpfpff to btc [link] [comments]

/r/Bitcoin FAQ - Newcomers please read

Welcome to the /Bitcoin Sticky FAQ

You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.
Some great introductions for new users are My first bitcoin, Bitcoin explained and ELI5 Bitcoin. Also, the following videos are a good starting point for understanding how bitcoin works and a little about its long term potential:
Also have to give mention to Lopp.net, the Princeton crypto series and James D'Angelo's Bitcoin 101 Blackboard series. Some excellent writing on Bitcoin's value proposition and future can be found at the Satoshi Nakamoto Institute. Bitcoin statistics can be found here, here and here. Developer resources can be found here, here and here. Peer-reviewed research papers can be found here. Potential upcoming protocol improvements here. Scaling resources here. The number of times Bitcoin was declared dead by the media can be found here (LOL!), and of course Satoshi Nakamoto's whitepaper that started it all! :)
Key properties of bitcoin

Where can I buy bitcoins?

Bitcoin.org, BuyBitcoinWorldwide.com and Howtobuybitcoin.io are helpful sites for beginners. You can buy or sell any amount of bitcoin and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also, check out the bitcoinity exchange resources for a larger list of options for purchases.
Bank Transfer Credit / Debit card Cash
Gemini Bitstamp LocalBitcoins
Bitstamp Bitit Mycelium LocalTrader
BitFinex Cex.io LibertyX
Cex.io CoinMama WallofCoins
Xapo Spectrocoin BitcoinOTC
Kraken Luno BitQuick
itBit
HitBTC
Bitit
Bisq (decentralized)
Luno
Spectrocoin
Here is a listing of local ATMs. If you would like your paycheck automatically converted to bitcoin use Bitwage.
Note: Bitcoins are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. Preev is a useful site that that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".

Securing your bitcoins

With bitcoin you can "Be your own bank" and personally secure your bitcoins OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoins for you.
Android iOs Desktop
Samouari BreadWallet Electrum
Another interesting use case for physical storage/transfer is the Opendime. Opendime is a small USB stick that allows you to spend Bitcoin by physically passing it along so it's anonymous and tangible like cash.
Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!
2FA requires a second confirmation code to access your account, usually from a text message or app, making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.
Google Auth Authy
Android Android
iOS iOS

Where can I spend bitcoins?

Check out spendabit or bitcoin directory for some good options, some of the more commons ones are listed below.
Store Product
Gyft Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
Steam, HumbleBundle, Games Planet, itch.io, g2g and kinguin For when you need to get your game on
Microsoft Xbox games, phone apps and software
Spendabit, Overstock, The Bitcoin Directory and BazaarBay Retail shopping with millions of results
ShakePay Generate one time use Visa cards in seconds
NewEgg and Dell For all your electronics needs
Bitwa.la, Coinbills, Piixpay, Bitbill.eu, Bylls, Coins.ph, Bitrefill, LivingRoomofSatoshi, Hyphen.to, Coinsfer, More #1, #2 Bill payment
Menufy, Takeaway, Thuisbezorgd NL, Pizza For Coins Takeout delivered to your door!
Expedia, Cheapair, Lot, Destinia, BTCTrip, Abitsky, SkyTours, Fluege the Travel category on Gyft and 9flats For when you need to get away
BitHost VPS service
Cryptostorm, Mullvad, and PIA VPN services
Namecheap, Porkbun For new domain name registration
Stampnik Discounted USPS Priority, Express, First-Class mail postage
Reddit Gold Premium membership which can be gifted to others
Coinmap and AirBitz are helpful to find local businesses accepting bitcoins. A good resource for UK residents is at wheretospendbitcoins.co.uk.
There are also lots of charities which accept bitcoin donations, such as Wikipedia, United Way, ACLU and the EFF. You can find a longer list here.

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;
If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read more here. Still have mining questions? The crew at /BitcoinMining would be happy to help you out.
If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node using this setup guide. Bitseed is an easy option for getting set up. You can view the global node distribution here.

Earning bitcoins

Just like any other form of money, you can also earn bitcoins by being paid to do a job.
Site Description
WorkingForBitcoins, Bitwage, XBTfreelancer, Cryptogrind, Bitlancerr, Coinality, Bitgigs, /Jobs4Bitcoins, Rein Project Freelancing
OpenBazaar, Purse.io, Bitify, /Bitmarket, 21 Market Marketplaces
Streamium.io, XOtika.tv NSFW, /GirlsGoneBitcoin NSFW Video Streaming
Bitasker, BitforTip Tasks
Supload.com, SatoshiBox, JoyStream, File Army File/Image Sharing
CoinAd, A-ads, Coinzilla.io Advertising
You can also earn bitcoins by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins)

Bitcoin Projects

The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.
Project Description
Lightning Network, Amiko Pay, and Strawpay Payment channels for network scaling
Blockstream, Rootstock and Drivechain Sidechains
21, Inc. Open source library for the machine payable web
ShapeShift.io Trade between bitcoins and altcoins easily
Open Transactions, Counterparty, Omni, Open Assets, Symbiont and Chain Financial asset platforms
Hivemind and Augur Prediction markets
Mediachain Decentralized media library
Tierion and Factom Records & Titles on the blockchain
BitMarkets, DropZone, Beaver and Open Bazaar Decentralized markets
Samourai and Dark Wallet - abandoned Privacy-enhancing wallets
JoinMarket CoinJoin implementation (Increase privacy and/or Earn interest on bitcoin holdings)
Coinffeine and Bisq Decentralized bitcoin exchanges
Keybase and Bitrated Identity & Reputation management
Telehash Mesh networking
JoyStream BitTorrent client with paid seeding
MORPHiS Decentralized, encrypted internet
Storj and Sia Decentralized file storage
Streamium Pay in real time for on-demand services
Abra Global P2P money transmitter network
bitSIM PIN secure hardware token between SIM & Phone
Identifi Decentralized address book w/ ratings system
BitGo Multisig bitcoin API
Bitcore Open source Bitcoin javascript library
Insight Open source blockchain API
Leet Kill your friends and take their money ;)

Bitcoin Units

One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:
Unit Symbol Value Info
millibitcoin mBTC 1,000 per bitcoin SI unit for milli i.e. millilitre (mL) or millimetre (mm)
microbitcoin μBTC 1,000,000 per bitcoin SI unit for micro i.e microlitre (μL) or micrometre (μm)
bit bit 1,000,000 per bitcoin Colloquial "slang" term for microbitcoin
satoshi sat 100,000,000 per bitcoin Smallest unit in bitcoin, named after the inventor
For example, assuming an arbitrary exchange rate of $10000 for one Bitcoin, a $10 meal would equal:
For more information check out the Bitcoin units wiki.
Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit. A complete list of bitcoin related subreddits can be found here
Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.
Welcome to the Bitcoin community and the new decentralized economy!
submitted by BinaryResult to Bitcoin [link] [comments]

Xthinner mainnet compression performance stats

I've been collecting some compression efficiency data on BCH mainnet blocks with Xthinner for the last 1.5 days, and thought I would share some results.
Of the last 200 blocks, there were 13 instances in which the recipient was missing one or more transactions and had to fetch with a round trip, for a 6.5% fetch rate.
I calculated the compression efficiency in 3 separate ways:
  1. With all data sent by Xthinner, including the shortID segment, the missing transactions, the coinbase transaction, and the block header;
  2. With the shortIDs, coinbase, and header, but not the missing transactions; and
  3. With only the shortIDs.
The mean compression rates for these 201 blocks were as follows:
99.563% without cb+header+missing 99.385% with cb+header w/o missing 99.209% with everything 
In terms of bits/tx, those numbers are:
14.021 bits/tx without cb+header+missing 19.721 bits/tx w cb+header w/o missing 25.348 bits/tx with everything 
The average block size during this test was 327 tx/block or 131 kB/block. I expect these numbers to tend towards 12 bits/tx asymptotically as block sizes increase.
These numbers were calculated using the sum of the Xthinner message sizes divided by the sum of the block sizes, rather than the mean of the individual blocks' compression rates. This means that my mean compression numbers are weighted by block size.
In comparison, bissias reported yesterday that Graphene got a median compression (with everything) of 98.878% on these dinky mainnet BCH block sizes. Graphene does much better at large block sizes, though, getting up to 99.88% on the biggest blocks, which is about 2x-3x better than the best Xthinner can do.
Except for the missing transactions, there were 0 errors decoding Xthinner messages. Specifically, of the last 201 blocks, there were 0 instances of Xthinner encoding too little information to disambiguate between transactions in the recipient's mempool, and there were 0 instances of checksum errors during decoding. (This is normal and expected for normal operation. In adversarial cases or extreme stress-test scenarios with desynced mempools, these numbers might go up, but if they do they only cause an extra round trip.
The full dataset of 201 blocks (with lame formatting) can be found here.
Astute observers might notice that this performance result is much better than what I first reported, in which around 75% of blocks had "missing" transactions. It turns out that these were actually decoding ambiguities caused by my encoder having an off-by-one error when finding the nearest mempool neighbor. Oopsies. Fixed. I also changed my test setup to have better and more realistic mempool synchrony. These two changes lowered the missing transaction rate to about 6.5% of blocks.
If anyone wants to dig into the code or play around with it, you can find it here. Keep in mind that there may still be remote crash or remote code execution vulnerabilities, so don't run this code on anything you want to not get hacked.
Edit: I think I prefer the alternate formulation for compression ratios in which 0% is the ideal. Using that formula, Xthinner was able to compress the blocks down to an average of
0.437% without cb+header+missing 0.615% with cb+header w/o missing 0.781% with everything 
of their original size, whereas Graphene was able to get to1.122% on the median block, and 0.117% on the best block.
Edit2: If we examine only the 5 blocks with more than 1000 tx in them, we get:
Fetched transactions 0 of 5 times Mean compression: 0.390% without cb+header 0.420% with everything 13.285 bits/tx average 12.330 bits/tx without coinbase+header 
Edit4: It's been almost two weeks, and I now have 197 blocks over 1k tx in the dataset:
Fetched transactions 9 of 107 times 0 ambiguities, 0 checksum errors Mean compression: 99.563% without cb+header+missing 99.518% with cb+header w/o missing 99.500% with everything 14.522 bits/tx average with missing, 14.017 bits/tx average without 12.701 bits/tx without coinbase+header 
submitted by jtoomim to btc [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]

Bitcoin Brief - ETH 2.0, Russia, PlusToken, Visa/Mastercard & Money Printing 2x Mempool Attack or Savior from Bitcoin Cash EDA? How Check Bitcoin transaction Fee  Bitcoin Transaction ... What is Bitcoin MemPool - YouTube Trading Bitcoin - $BTC & $SPX Drop Together Again

HashPower Calculator; Market Cap Calculator; Satoshi Converter; Deals; Search for; Switch skin; Home / Knowledge Base / What is Bitcoin Mempool? Memory pool size, fees, transactions explained . Knowledge Base What is Bitcoin Mempool? Memory pool size, fees, transactions explained. coinguides Follow on Twitter September 4, 2018. 0 1,163 . Facebook Twitter LinkedIn Pinterest Reddit. Bitcoin ... The Bitcoin mempool is the pool of unconfirmed Bitcoin transactions on the Bitcoin network. Once a Bitcoin transaction happens on Bitcoin’s blockchain, it is not immediately added; instead, it goes into this pool of in-motion transactions. Each running full node on the Bitcoin network is connected to this mempool, especially the miners. The miners, working at their respective nodes, collate ... Johoe's Bitcoin Mempool Statistics – – Period: This page displays the number and size of the unconfirmed bitcoin transactions, also known as the transactions in the mempool. It gives a real-time view and shows how the mempool evolves over the time. The transactions are colored by the amount of fee they pay per (virtual) byte. The data is generated from my full node and is updated every ... When a Bitcoin transaction is transmitted to the network, it first gets verified by all of the Bitcoin nodes available (i.e. computers participating in the Bitcoin network).. After it successfully passes verification by a node, it sits inside that node’s “Unconfirmed Transactions” area called the “Mempool” (short for Memory Pool). Bitcoin Fee Estimator / Calculator. BitcoinFees is a simple and very accurate Bitcoin fee estimator. The tool is displaying a chart of current mempool transactions ordered by fee value. This makes it easy to choose the optimal fee for your transaction based on confirmation time. Just pick a time period and use the suggested fee. We are using Bitcoin Core's embedded fee calculator. Different ...

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Bitcoin Brief - ETH 2.0, Russia, PlusToken, Visa/Mastercard & Money Printing

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