The Book of Bitcoin

Vertcoin Mining AMA

What is Vertcoin?

Vertcoin was created in 2014. It is a direct hedge against long term mining consensus centralization on the Bitcoin mining network. Vertcoin achieves its mining consensus solely through Graphics Cards as they are the most abundant / widely available consensus devices that produce a reasonable amount of hashrate. This is done using a mining algorithm that deliberately geared against devices like ASICs, FPGAs and CPUs (due to botnets) making them extremely inefficient. Consensus distribution over time is the most important aspect of a blockchain and should not be taken lightly. It is critical that you understand what blockchain specifications mean/do to fully understand Vertcoin.

Mining Vertcoin

When users of our network send each other Vertcoin, their transactions are secured by a process called mining. Miners will compose a so-called block out of the pending transactions, and need to perform a large number of computations called hashes in order to produce the Proof-of-Work. With this Proof-of-Work, the block is accepted by the network and the transactions in it become confirmed.
Mining is essentially a race. Whoever finds a valid Proof-of-Work and gets the block propagated over more than half of the Vertcoin network first, wins this race and is allowed to reward themselves with the block reward. The block reward is how new Vertcoin come in circulation. This block reward started at 50 VTC when Vertcoin was launched, and halves every four years. The current block reward is 25 VTC.
Vertcoin's One Click Miner: https://github.com/vertcoin-project/One-Click-Minereleases
Learn more about mining here: https://vertcoin.org/mine/
Specification List:
· Launch date: Jan 11, 2014
· Proof-Of-Work (Consensus Mechanism)
· Total Supply: 84,000,000 Vertcoin
· Preferred Consensus Device: GPU
· Mining Algorithm: Lyra2REv3 (Made by Vertcoin)
· Blocktime: 2.5 minutes
· SegWit: Activated
· Difficulty Adjustment Algorithm: Kimoto Gravity Well (Every Block)
· Block Halving: 4 year interval
· Initial Block Reward: 50 coins
· Current Block Reward: 25 coin
More spec information can be found here: https://vertcoin.org/specs-explained/

Why Does Vertcoin Use GPUs Then?

ASIC’s (Manufactuer Monopoly)
If mining were just a spade sure, use the most powerful equipment which would be an ASIC. The problem is ASICs are not widely available, and just happen to be controlled by a monopoly in China.
So, you want the most widely available tool that produces a fair amount of hashrate, which currently manifests itself as a Graphics Card.
CPUs would be great too but unfortunately there are viruses that take over hundreds of thousands of computers called Botnets (they’re almost as bad as ASICs).

Mining In Pools

Because mining is a race, it’s difficult for an individual miner to acquire enough computational power to win this race solo. Therefore there’s a concept called pool-mining. With pool-mining, miners cooperate in finding the correct Proof-of-Work for the block, and share the block reward based on the work contributed. The amount of work contributed is measured in so-called shares. Finding the Proof-of-Work for a share is much easier than finding it for a block, and when the cooperating miners find the Proof-of-Work for the block, they distribute the reward based on the number of shares each miner found. Vertcoin always recommends using P2Pool to keep mining as decentralized as possible.
How Do I Get Started?
If you want to get started mining, check out the Mine Vertcoin page.

Vertcoin just forked to Lyra2REv3 and we are currently working on Verthash

Verthash is and was under development before we decided to hard fork to Lyra2REv3. While Verthash would’ve resulted in the same effect for ASICs (making them useless for mining Vertcoin), the timeline was incompatible with the desire to get rid of ASICs quickly. Verthash is still under development and tries to address the outsourcability problem.
Verthash is an I/O bound algorithm that uses the blockchain data as input to the hashing algorithm. It therefore requires miners to have all the blockchain data available to them, which is currently about 4 GB of data. By making this mining data mandatory, it will become harder for auto profit switching miners — like the ones that rent out their GPU to Nicehash — because they will need to keep a full node running while mining other algorithms for the moment Verthash becomes more profitable — the data needs to be available immediately since updating it can take a while.
Over the past month, we have successfully developed a first implementation of Verthash in the Vertcoin Core code base. Within the development team we have run a few nodes on Testnet to test the functionality — and everything seems to work properly. The next step is to build out the GPU miners for AMD and Nvidia. This is a NOETA at the moment, since we’re waiting on GPU developers which are in high demand. Once the miners are ready, we’ll be releasing the Vertcoin 0.15 beta that hardforks the testnet together with the miners for the community to have a testrun. Given the structural difference between Lyra2RE and Verthash, we’ll have to run the testnet for a longer period than we did with the Lyra2REv3 hard fork. We’ll have to make sure the system is reliable before hardforking our mainnet. So the timeline will be longer than with the Lyra2REv3 hard fork.
Some people in the community have voiced concerns about the fact that Verthash development is not being done “out in the open”, i.e.: the code commits are not visible on Github. The main two reasons for us to keep our cards to our chest at this stage are: (1) only when the entire system including miners has been coded up can we be sure the system works, we don’t want to release preliminary stuff that doesn’t work or isn’t secure. Also (2) we don’t want to give hardware manufacturers or mining outsourcing platforms a head start on trying to defeat the mechanisms we’ve put in place.

Links and Resources

· Twitter: https://twitter.com/Vertcoin
· Donations: vertcoin.org/donate
· Join our Discord: https://discord.gg/vertcoin
· Reddit: https://www.reddit.com/vertcoin/
· Official Website: https://vertcoin.org/
· Facebook: https://www.facebook.com/vertcoin
· Vertcoin Talk: https://soundcloud.com/vertcoin-talk
· Youtube: https://www.youtube.com/vertcoin
submitted by Canen01 to gpumining [link] [comments]

Frequently Asked Questions

NOTICE

This post is a temporary resting place for FAQs while we wait for the release of VertDocs.

What is Vertcoin?

Vertcoin is a digital peer to peer currency focused on decentralization and ASIC resistance. Vertcoin is aiming to be easily accessible to the everyday user without extensive technical knowledge. Vertcoin has started to lower the barrier of entry with lots of video guides and the development of the One Click Miner (OCM).

Why does ASIC Resistance Matter?

ASICs (Application Specific Integrated Circuits) are dedicated mining devices that can only mine one algorithm. Coins like Bitcoin and Litecoin both made GPU mining obsolete when SHA-256 and Scrypt ASICs were created.
ASIC Resistance and How it Makes Vertcoin Decentralized
Vertcoin believes that ASIC resistance goes hand in hand with decentralization.
ASICs are made by companies like Bitmain and almost all the original sellers of ASICs sell on a preorder basis. When pre ordering an ASIC you are buying from a limited batch that the ASIC company has produced. Often times the batch will not be fully filled and the ASIC company will often have left over ASICs. When the ASIC company has left over ASICs they will put them to work mining. Soon enough the ASIC company will have a very large amount of unsold ASICs that are mining and slowly the ASIC company starts to own a large part of the network’s hashrate. When an ASIC company(s) starts to own a large majority of the hashrate the network can become very centralized after a while.
Having your network consist of a few large companies can be very dangerous as they could eventually get 51% hashing power and 51% attack your network, destabilizing the network. When your network is made out of a lot of smaller miners, like Vertcoin, it is much harder for your network to be 51% attacked, therefore increasing network security. By having centralized hashing power your coin effectively centralizing the network as the centralized hashing power can deny transactions and stop any activity they don’t want.

What Ways is Vertcoin Superior to Litecoin and Bitcoin?

Network Difficulty Adjustments with Kimoto Gravity Well
Vertcoin uses a difficulty adjustment called Kimoto Gravity Well which adjusts the difficulty every block, whereas Bitcoin and Litecoin’s difficulty changes every 2016 blocks. By adjusting the difficulty every block Vertcoin’s block time can stay consistent by adjusting for the fluctuation in network hash rate from hash rate renting and part time miners. If a large miner switches off Bitcoin or Litecoin mining the network could be slowed to a crawl until 2016 blocks are mined and the difficulty can change to adjust for the new network hash rate. We observed this happen to Bitcoin when Bitcoin Cash became more profitable than Bitcoin and Bitcoin’s network hash rate saw a steep fall off, slowing the network to a crawl. If this was to happen with Vertcoin the difficulty would adjust after 1 block was mined, allowing Vertcoin to always be profitable to mine.
Anyone can Meaningfully help Verify Transactions
In Proof-of-Work crypto currencies miners help secure the blockchain and get rewarded with the block reward. In ASIC mineable coins like Bitcoin and Litecoin you can’t meaningfully verify transactions unless you pay 1000-2000$ for a ASIC miner. When you mine with a CPU or GPU in a ASIC mineable coin you make no meaningful impact on the network. It is like trying to break concrete with a shovel while everyone else has a jackhammer.
Simple Upgrades Aren’t Held back by 1-2 Large Miners
In ASIC market people buy ASICs in batches in a preorder. With Bitcoin ASICs there is not enough demand for ASICs so the batch often doesn’t get sold out so now the manufacturer has spare ASICs. Now that the manufacturer has spare ASICs they will often start mining with them and eventually the ASIC company has one of the highest hash rates. If the ASIC company doesn’t want a certain upgrade to go through, for example SegWit, they can vote with their hash rate to hold back the upgrade forever or at least until people who want SegWit get more hash rate.
You Have a Say in Protocol Rules and Consensus
In Bitcoin you are a passive observer because you can only issue transactions and you have no part in the process after that. In Vertcoin you can be apart of the process for deciding the ordering of transactions and deciding what transactions get into blocks.
Block Rewards and Transaction Fees are Distributed Evenly
In Bitcoin and Litecoin the block rewards and transaction fees are often given to the large miners in China due to mining centralization created by ASICs. Vertcoin distributes its mining rewards to people all around the world thanks to the mining decentralization.

When will Atomic Swaps Be Ready?

Atomic Swaps can be done in two flavors: On-chain and Off-chain (via Lightning Network). On-chain swaps were actually done already using Blocknet, you can see it in use on Youtube. We're looking into doing it again using Interledger.
However our main focus is to do off-chain Atomic Swaps using Lightning Network technology. Because it has the same benefits as Lightning transactions: No network fees and instant transactions.
For off-chain swaps we need Lightning Network to be fully operational. It's difficult to give an ETA on that since we aren't the ones developing it. U/gertjaap posted a video on the current state of the Lightning Network for Vertcoin a while ago, which you can see here.
This was actually the "bleeding edge" of Lightning Network at the time. was able to use it on VTC's main net, meaning that our blockchain is ready for the good stuff. As you can see however, it can't yet be considered production ready (most users would want a little better UX than a command line app).
Now off-chain Atomic Swaps is a technique based on the same principles as Lightning Network, but adds an extra complexity for it being across chains. So it's basically the same as a "multi hop" Lightning payment, which is not yet built by any of the implementations. They're still working hard on making the single-hop payments robust. So in order for AS to be possible, LN has to be fully operational.
A timeline cannot be given at this time, because frankly we don't know. The implementation of Lightning Network we feel has the most potential is LIT, because it supports multiple currencies in its protocol (where LND is bitcoin-only at the time and requires significant work to support other currencies, which is an essential part of being able to work across multiple blockchains).
LIT is open source and there's nothing secretive about its progress, you can see the development on Github. We even have our lead dev James Lovejoy (u/jamesl22) close to the action and contributing to it where possible (and our team as well through testing it on the Vertcoin chain).
So we're not developing LN or AS ourselves, we're just ready with our blockchain technology whenever it becomes available.
If we have any real progress that has some substance, you can expect us to let the world know. We're not interested in fluffy marketing - we post something when we achieve real progress. And we are not keeping that secret.

How do I Choose the Right Vertcoin Wallet?

Deciding what Vertcoin wallet you should choose can be a difficult process. You can choose between three different wallets: Core, Electrum and Paper. Once you decide you can use the "How to Setup Your Vertcoin Wallets" video guide to assist you.

Core

The Core wallet is the wallet that most people should use. It will store the entire blockchain (~2GB) on your computer. The Core wallet is the only wallet that fully supports P2Pool mining. You will also have to use the Core wallet if you plan to run a P2Pool node or any Vertcoin related server.

Electrum

The Electrum wallet is a light wallet for Vertcoin. You do not have to download the blockchain on your computer, but you will still have your own private keys on your computer. This is recommended for people who don't need to store Vertcoins for very long and just need a quick but secure place to store them.

Paper

The Paper wallet is as the name implies, a physical paper wallet. When generating a paper wallet you will get a pdf that will need to print out. A paper wallet is normally used for long term storage since it is the safest way to store Vertcoins. A paper wallet can also be called "cold storage." Cold storage references the storage of your coins offline, preventing you from getting hacked over the internet.

Ledger Nano S

The Ledger Nano S is a hardware wallet designed by Ledger. A hardware wallet is similar to a paper wallet since it is normally used for cold storage. The hardware wallet is on par with the security of a paper wallet while being easy to use and setup. Note: You should never mine directly to a Ledger hardware wallet.

How do I start mining Vertcoin?

We have many guides available for you to use depending on your computer specifications.
Nvidia GPUs on Windows
Nvidia GPUs on Linux
AMD GPUs on Windows WARNING: Very unprofitable, AMD optimized miner is coming very soon.

Where can I get the One Click Miner (OCM)

You can get the latest version of the One Click Miner in the Vertcoin Discord. The download is pinned to the top of the #oneclick channel.

What do all the Numbers Mean on P2Pool’s Web Interface

I've seen a lot of confusion from new miners on public p2pool nodes, so here's a primer for the most common static node page style, for first time miners: https://imgur.com/K48GmMw

Active Miners on this Node

Address - This is the list of addresses currently mining on this node. If your address does not show up here, you are not mining on this node.
Hashrate
This is a snapshot of your hashrate as seen by the node. It will fluctuate up to 15% from the hashrate you are seeing on your mining software, but will average out to match the output in your mining software.
Rejected Hashrate
This is the amount of your hashing contribution that is rejected, both in hashrate and as a percentage of your total contribution. Running your own p2pool node minimizes this number. Mining on a node that is geographically close to reduce lag also minimizes this number. Ideally you would like it to be less than 1%, but most people seem happy keeping it under 3%.
Share Difficulty
This speaks for itself, it is the difficulty of the share being currently worked on. Bigger numbers are more difficult.
Time to Share
This is how long you need to mine before you will receive any payouts, or any "predicted payout." The lower your hashrate, the higher your time to share.
Predicted Payout
This is the reward you would receive if a block was found by p2pool right now. If it reads "no shares yet" then you have not yet been mining the requisite amount of time as seen in the previous "time to share" column.

Status

Network Hashrate
This is the total hashrate of all the miners mining vertcoin everywhere, regardless of where or how.
Global Pool Hashrate
This is the total hashrate of all the miners mining vertcoin on this p2pool network, be it the first network or the second network.
Local Pool Hashrate
This is the total hashrate of all the miners mining Vertcoin on this node.
Current Block Value
This is the reward that will be given for mining the current block. The base mining reward is currently 50 VTC per block, so any small decimal over that amount is transaction fees being paid by people using the network.
Network Block Difficulty
This is the difficulty of the block being mined. The higher the number, the higher the difficulty. This number rises as the "Network Hashrate" rises, so that blocks will always be found every 2.5 minutes. Inversely, this number falls when the "Network Hashrate" lowers as well.
Expected Time to Block
This is a guess at how much time will elapse between blocks being found by this p2pool network. This guess is accurate on average, but very inaccurate in the short term. Since you only receive a payout when the network finds a block, you can think of this as "Estimated Time to Payout."

Why is P2Pool Recommended Over Traditional Pools?

Decentralisation

P2Pool is peer to peer allowing a decentralized pool mining system. There are many nodes setup around the world that connect to each other too mine together. Many other coins have 1 very large pool that many miners connect to and sometimes the largest pool can have 51% or more of the network hash rate which makes the network vulnerable to a 51% attack. If P2Pool is the largest network then that prevents the Vertcoin network to be susceptible to a 51% attack as P2Pool is decentralized.

PPLNS Payout System

P2Pool uses a PPLNS (Pay Per Last N Shares) payout system which awards miners more the longer they mine, sort of like a loyalty system. A drawback to this system is that part time miners that aren't 24/7 won't be able to earn that much.

2 Networks

While Network 1 is catered towards 24/7 miners and people who have dedicated mining rigs, Vertcoin has a second P2Pool network where part time miners and miners under 100 MH/s can go to mine.

Mines Directly to Your Wallet

P2Pool mines directly to your wallet and cuts out the middleman. This reduces the likely hood that the pool will run away with your coins.

No Downtime

Since P2Pool is decentralized and has different nodes for you to choose from there will be no downtime because the P2Pool network does not die if one node goes down. You can setup a backup server in your miner so that you will have no downtime when mining.

Anonymity and Security

When using P2Pool you use a wallet address making your real identity anonymous, you are simply known by a random 34 letter string. Along with using a wallet address instead of a username there is no password involved P2Pool preventing the possibility of cracking your pool account (If you were on a traditional pool,) and stealing all your coins.

How do I Find a Nearby P2Pool Node

You can find the public p2pool nodes the the P2Pool Node Scanners. If you want to find a network 1 node go here. If you want to find a network 2 node go here.

How do I setup a P2Pool Node?

Linux P2Pool Setup
Windows P2Pool Setup (Text)
Windows P2Pool Setup (Video) This guide setups a network 2 node. When downloading Python download the 32bit version, not the 64bit. Downloading the 64bit version causes problems with the twisted install.
How do I setup a change my node to network 1 or network 2?
In the P2Pool startup script when you type the --network flag add vertcoin1 for network 1 and vertcoin2 for network 2 right after.

How do I Buy Vertcoin?

You can see a video guide on Youtube, "How to Buy Vertcoin with Fiat Using Bittrex and Coinbase"

How can I get help with "X problem?"

The quickest way for you to get help is for you to join the Vertcoin Discord Group. We almost always have knowledgable Vertans, whether that be developers or experienced Vertans, online to help you with whatever problems you may have.

How can I donate to the Developers?

You can donate to the dev fund at https://vertcoin.org/donate/. You can select what you want your funds to go to by donating to the corresponding address. You can also see how much funding is required and how much we have donated.

Where can I see what exchanges Vertcoin is on?

You can see what exchanges Vertcoin is listed on at CoinMarketCap. You can see what exchanges Vertcoin has applied to be on at this google docs spreadsheet.

Where can I see Vertcoin's Roadmap?

The Vertcoin developers currently have a trello board where you can see the goals and what the status of said goal is. You can also vote on what you want the Vertcoin developers to focus on next.

What is the Status of the AMD Optimized Miner?

The AMD Optimized Miner internal beta is aiming to be ready by the end of September. The AMD Optimized Miner is currently being developed by @turekaj on the Vertcoin Discord. He currently does not have a Reddit account and Discord is the only way you can contact him.

What Does Halving Mean?

Halving means that the block reward for miners will be split in half. Halving happens around every 4 years for Vertcoin or 840,000 blocks. This means around December miners will only receive 25 VTC per block instead of the current 50 VTC per block.
If you would like to add another question to this list please comment it and I will get around to adding it ASAP.
submitted by asianboygames to vertcoin [link] [comments]

A few p2pool payout questions from a mining noob

Just started mining vertcoin (also my first time mining any coin since I got into the bitcoin game too late to mine with a normal computer) and I have a couple of questions about how p2pool works as it is not immediately apparent.
I started off mining with just my single card, getting roughly 51Mh/s. The two days I did it, somehow I was getting 0.17ish VTC per transaction. I forgot if I was on network 1 or 2, or even what node that was. Recently I added a second card and now my hashrate is 114Mh/s on average.
..only problem is now I noticed my payouts (on a couple different network 1 nodes) are around 0.019, or if I'm lucky, 0.03. So here are my questions about this:
1) What exactly determines your payouts? I thought it was share difficulty, but is that personal share difficulty or group share difficulty?
2) Does length of time mining the same node affect the payouts per block?
3) I have roughly the same hashrate as someone else on my node and we both have the same share difficulty, yet their payout is 0.3 while mine is 0.03, why such a large discrepancy? Does this go back to question #2?
4) What exactly is "time to share". I thought that was the time until your first payout, but it seems that a new clock always shows up after you complete one... and node payouts do NOT seem to correlate with this time at all.
5) What makes a good node to mine? Do you want to be among the top hashrate miners? Or is it better to be on a more populated node?
6) Since my hash-rate is pretty borderline network 1 or 2... would it be more beneficial to be on network 2? I know network 2 finds blocks slower, but the payouts are more significant, but I don't know if this will add up to more or less over time based on my hash-rate.
7) (Maybe I'll be able to gather this from the answers to the first 6 questions but...) What if I were to mine alone on my own node? What are the pros/cons of this based on my hash-rate of just over 100 Mh/s
Also thanks in advance for answering my noob questions. I did a fair amount of googling on these and can't quite come up with solid answers. I found a few answers on Ethereum boards, but I'm not sure how similar our mining is to that, so I don't know if those answers can also apply to Vert.
submitted by Robb1324 to vertcoin [link] [comments]

A few thoughts - Sunday, June 15, 2014

Good morning! I'm not writing that much this weekend because, if things go well, our pool will reach feature-completion at the end of the day. I'll announce to see if anyone is interested in joining during a proof-of-interest and testing phase in a few weeks.

Brilliant PR

Petamine recently left GHash.io and moved their miners to P2Pool, which is a brilliant PR move. I need to write down that whenever there is a villian, there is a way to make yourself look like the hero. In this case, they are probably raking in more customers in the past 24 hours than they did in the entire month before that.
What's interesting, however, is that what is happening is simply that people are creating pools on P2Pool. This is a stopgap measure, because the P2Pool difficulty rises along with the bitcoin difficulty. In a year, finding a P2Pool share will be as difficult as finding a bitcoin block is today, so we could end up with a pool dominating the P2Pool network.

GHash.io controversy is blowing over

The GHash.io controversy is blowing over. As you can see, GHash.io's hashrate is declining, and people are changing pools. Note that the pool never conducted any attack and that it is disputable that it even reached 50% at all.
People who were panic selling don't recall that this has happened at least twice before that I can recall, with both the BTC Guild and GHash.io. Unless "it's different this time," the same thing is generally going to happen. And there really isn't anything that was different this time, except that a long squeeze coincided with the controversy.

This was a long squeeze

What happened to the price over the past few days was a long squeeze. I'm not convinced there was anything more complicated to it than that. It's easy to place blame for the price fall on any of the events that happened over the past few days, but those events had only a minor impact.
What I think happened is that, on Tuesday or Wednesday, people in the know found out about this impending sale and started getting out. The price started moving downward for an unexplained reason, and so smart people figured out that there was something they didn't know and sold too. When the sale was announced, a few more people sold, and that triggered margin calls, crashing all the way down until most of the people who were 2.5:1 or greater were wiped out. The GHash.io controvery didn't come to a head until after all the people trading on margin had been destroyed already.
If you agree with me, then a long squeeze is certainly not a reason for panic and worry, because it doesn't affect any of the bitcoin fundamentals.

There are people on the other side of the screen

There are several people who were sending me messages and making posts in various places trying to get my attention yesterday. While I welcome criticism, the discussion at /bitcoinmarkets yesterday was deplorable. There are real people on the other side of the screen. I'd like to see some of those people walk up to me or the other people they were railing against and say the sort of things they were saying to someone's face. If they acted the way they did in a restaurant or a public venue, they would have been thrown out.
I will not respond to people who use profanity and personal attacks against me or others. That is not acceptable behavior, and I will not respect people who have no respect for others. I permanently ignored three people who did engage in such attacks yesterday.
I also need to state that you cannot have a civil discussion unless everyone is correctly representing the viewpoints of the people they are discussing. I clearly said that I do not believe in debt, even for houses, which is probably a controversial opinion itself. People who are stating that I suggested buying on margin are lying. Others are lying that I said that this bubble has somehow aborted or ended. Finally, I made it clear that I spent what was at the time about 2% of my wealth on bitcoins, and that I now have about 6% of net worth as bitcoins (it would be about 12% but the stock market has risen so significantly). People are lying that I have huge amounts of money in bitcoins.
Finally, and this confuses me the most, people are spreading a particularly strange lie that I told them to buy bitcoins when they were worth $680. I made clear many times that I put in a lot of money at the low of $440, I repeatedly said that I had a lot of money in the bank ready to invest at the time, and I have not held any bitcoins I bought since then because I have reached my maximum exposure and do not ever plan to hold any more.
Instead of lying, read what I have to say carefully and don't infer things that are not stated in the posts.

This bubble will continue

The next two weeks are going to be interesting. At some point, the price is going to begin to rise in anticipation of this auction. I like the predictions that the higher prices fetched for the auction bitcoins is going to start what moral_agent would refer to as the last phase of this cycle.
This makes sense in terms of psychology. If a particularly high number comes out of the auction process, and I believe it will for the reasons I stated yesterday, then people will be shocked that Wall Street believes that bitcoins are worth so much. The price will probably rise above what Wall St pays for the bitcoins at auction as people realize that if Wall St is willing to pay 25/50/whatever percent greater than market value, then bitcoins must be worth far more.

Other

submitted by quintin3265 to BitcoinThoughts [link] [comments]

Bi-weekly Digitalcoin News Thread [#2]

Hi Digitalcoin enthusiast, and welcome to the second edition of this bi-weekly news digest!
Some of you doubted that two weeks was long enough for anything of significance to happen in the Digitalcoin world. I hope that this news digest will prove you wrong ;)
In this issue, we're talking about important movements on the exchange front: some have fallen, many are rising. Fortunately, amidst all these changes, the overall availability of Digitalcoin is increasing. A constant and important factor in the downfall of exchanges seems to be security. Are your coins safe? Have you ever considered using a paper wallet?
Other important news that we'll be covering: a new version of the core Digitalcoin software, a major website overhaul, and the introduction of a stable Android wallet.
Happy Friday everyone!
Yours truly,
ThinkThrough (and spell check master FullMetalGurren)

What has happened in the past two weeks?

On the Reddit front
News of the world
New services

Upcoming

Big events in the next few weeks:

Most generous tippers (past 2 weeks)

Username | Tipped (dgc) | Received (dgc) | Net diff. | FullMetalGurren | 35.000000 | 1.000000 | + 34.000000 | happyfocker | 10.000000 | 0.000000 | + 10.000000 | earthmoonsun | 7.000000 | 0.000000 | + 7.000000 | techbytes1 | 3.000000 | 0.000000 | + 3.000000 | 
Source: http://www.reddit.com/dgctipbot/wiki/tips

/digitalcoin stats (past 2 weeks)

Source : http://www.reddit.com/digitalcoin/about/traffic/

Past editions

Did I miss something?

If I missed something, post it in the comments, I'll add it in to the post.
submitted by ThinkThrough to digitalcoin [link] [comments]

Of Wolves and Weasels - Day 263 - Weekly Wrapup #31

Hey all, GoodShibe here!
This was your week in Dogecoin.
This Week's oWaW's
Announcements
Businesses accepting Dogecoin
Top images/memes of the week
Dogecoin in the News
Don't Miss
Did I miss anything? Of course I did! Please let me know in the comments and I'll add it!
It's 8:50AM EST and we've found 93.33% of our first 100 Billion DOGEs - only 6.67% until we've reached our soft cap! Our Global Hashrate is on the rise from ~726 to ~804 Gigahashes per second but our Difficulty is dropping from ~12610 to ~8625.
As always, I appreciate your support!
GoodShibe
submitted by GoodShibe to dogecoin [link] [comments]

MAD Doge - Market Analysis 1/26/2014 (Afternoon Edition) What have we become...What have I become?

Well here we are, growing as a community in various ways. One thing that has popped up a lot previously is the topic of serious business. This has been one thing that we here have not been to fond of. As soon as the price rose to a certain level and people began to get worried that they couldn't buy in.
Personally, I felt the same way, I had sold 1/3 of my DOGE at an incredible price, but now wanted to buy back in. I havent made recent market analyses since I didn't want to skew my opinion that would benefit myself personally. As of now, I have 100k Doge in cryptsy and will just have fun with it.
So let's get back to that fun market analysis we all loved.

Old News:

MarketWatch

Behind stuffs.

Such Suggestions

Don't become obsessed about the value of DOGE, if you made even one dollar, you're ahead. Buy yourself a Coke. (Such Promote)
Keep it Classy, Keep it Shibley, and Shibe on!
submitted by DRKMSTR to MADDOGE [link] [comments]

[Informational] [CC0] Evacuating into the P2Pool

P2Pool

Most mining pools essentially rent hash power from hashers and steal hasher's agency of choice in crafting blocks in the process. This works to reduce the durability of Bitcoin by adding weak central points that can be more easily pushed into participating in network harming acts. Not all pools work this way, getblocktemplate supporting pools such as BitMinter and Eligius allow hashers to sign off on transactions, but this is the exception and not the rule.
The P2Pool project seeks to redress the pool centralization deficiency by allowing miners to mine in a pool of hash power without sacrificing their individual decision making powers. P2Pool was first announced by creator Forrest Voight in June of 2011 and began operating the next month.
P2Pool uses a novel method of mining, called share chain mining. Share chain mining is similar to Blockchain mining, with the exception that share blocks have a lower difficulty that is more accessible to an average miner. A miner is twenty times more likely to get a share block than a Blockchain block. The share chain achieves this by operating on a lower difficulty targeting system than the Blockchain, targeting a thirty second block.
Share chain blocks are still valid Blockchain blocks, except that they have an incorrect difficulty target, the share chain network is more accepting of blocks. Each share would otherwise be a valid Blockchain block, the restriction on difficulty is simply looser. When share chain blocks happen to align in difficulty with the Blockchain difficulty, they are sent to the Blockchain to claim Bitcoin rewards for the pool
Each share chain block contains rewards pointing back at previous share chain block winners. This is so that when a valid Blockchain block is found, the valid block splits its reward out to the less fortunate miners. The winning block does include a half a percent bonus amount to reward the actual miner who mined it. Donations may be made to the P2Pool in a hashing proportional way by giving funds directly to share block winners.
To avoid the share chain getting out of hand due to its increased block frequency, only a few days of share blocks are kept. This works because share blocks lock a timestamp with the Blockchain, preventing a hidden share chain from being constructed by requiring future unknowable Blockchain information.
submitted by pb1x to writingforbitcoin [link] [comments]

Clarification: What is a p2p mining node?

P2Pool is a distributed mining pool. First, consider checking out the P2Pool Wiki for the latest information. I think it would help to briefly explain it in terms of differences between p2pool, traditional pools, and solo mining.
Solo Mining
When you solo mine Myriadcoin, you have control of all aspects of mining. You decide which transactions get included in your block and you decide where the block reward goes (usually you decide to send it to one of your own addresses). However, unless you have a very large mining operation, you'll be highly affected by variance. For example:
At a the current difficulty (sha256)(516419), the average time for a 15 GH/s miner to find a block is just over 2 weeks. And it is not uncommon for you to take 3-4x longer than the average occasionally when you are unlucky. As a result, you can go long stretches without earning anything.
Traditional Pooled Mining
To solve the problem of high variance, the mining pools were created. In a traditional mining pool, many people all agree to combine their mining efforts and split the rewards according to their contributions. A sufficiently large pool may then have enough combined mining power that their average time to find a block may only be a couple hours instead of a couple weeks. As each block is found the block reward is distributed between the pool's miners. Each miner then gets smaller payments more regularly instead of one large 500 myriadcoin payment every few weeks.
In a traditional pool, the pool operator sets up a website that miners connect to to receive mining work at a much lower difficulty so that each miner will find a valid solution every few seconds. These easy solutions, or "shares" are counted and rewards are distributed based on the proportion of shares that each miner found using one of several reward schemes. In the traditional pool, the pool operator is the one who decides what transactions go into each block and how the rewards are distributed. Typically, the pool sends all rewards to itself and then pays miners out of the pool's funds periodically.
P2Pool
P2Pool is sort of a cross between these two worlds. Like solo mining, p2pool miners are creating their own blocks and choosing which transactions go into blocks. Like pooled mining, rewards are shared between everyone who is part of the pool.
With p2pool, each miner runs a p2pool node and these nodes form a peer to peer network amongst themselves similar to how crypto's, itself, does. Participants then connect their mining software to their local p2pool node and is given low difficulty work just as with a traditional pool. As each share is found, it is communicated to other miners on the p2pool p2p network so that all nodes are aware of who is contributing to the collective mining effort and in what capacity.
Each share also includes the reward transaction that will be used in the event that a share ends up being a valid block. That reward transaction includes directly payments to all of the recent contributors to the p2pool network. So as blocks are found, contributors directly receive their payment just as they would have with solo mining.
To ensure that everyone is playing fair, shares are assembled into a share chain in the same way that bitcoin blocks are assembled into a block chain. Each share that someone finds builds on all of the previous shares. All miners that are following the same set of established rules end up creating shares that other miners are willing to include in the share chain. Miners that don't follow the rules end up creating shares that get excluded from the main share chain and so they don't get paid when blocks are found by the other miners. In order to make it practical for nodes to be constantly passing shares around the p2p network, the share difficulty is tuned so that shares are only found 1 every 10 seconds across the entire p2pool network. The result is higher variance than at a traditional pool, but still much less variance than with solo mining.
Summary
In summary, the benefits over a traditional pool include...
submitted by meziti to myriadcoin [link] [comments]

CMV: Bitcoin Won't Remain Decentralized If ASICs Exist

(CMV stands for change my view)
I understand non-p2pool pooled mining is currently a much bigger threat, but I feel like the 2 problems compliment each other.
Bitcoin relies on computational power to achieve decentralization. If any entity achieves over 50% of the network, they have the power to practically destroy the coin through double spending. As low as 30%, they can do severe damage through selfish mining.
Why exactly are ASICs worse for decentralization than GPUs? There's a few reasons:
Entry Costs
To get an ASIC that will actually make the slightest impact on the network or even generate enough BTC that you can even withdraw from a pool/find a share on p2pool in a reasonable amount of time, it will cost you thousands of dollars. The $100 USB miners won't do a darn thing.
GPU coins, on the other hand, can be profitably mined with $100 cards. Additionally, many people already have these, as they're purchased for other uses such as 3d rendering/animation, gaming, or simulation.
Scams:
Most ASIC companies turn out to be scams in some way or another. Butterfly Labs, Hashfast, and so many others have screwed over their customers.
NVIDIA and AMD are reputable companies with decades in the market, that must conform to corporate regulations.
Technology Withholding
Many companies that sell ASICs will not ship them or even sell them until it is more profitable to sell them than mine with them. It's simple economics for them to do so. The only people profiting are the people that make them. That's why KNCminer is making a massive ASIC farm with thousands of devices. To those who will say they profited from buying an ASIC, you got lucky. The company likely sold because the risk in using the devices themselves was too high. For example if there was a crash or rapid increase in difficulty, it would have turned out to be less profitable than selling.
Manufacturers of Video cards, AMD and NVIDIA, have more motives to sell their cards. Not only are they a regulated market, but their devices serve additional purposes. People wish to buy them for gaming, simulation, 3d rendering, etc. Because of this, they will be purchased even when unprofitable, for the sake of gaming or other reasons.
Availability
Because GPUs/CPUs are owned by millions of people, in the event of a pool gaining too much power, people can temporarily mine on their home devices to alleviate the problem. If a device that could actually make a difference costed $10,000, few people would bother to help.
The distant future
Once hobbyists that know they're losing money stop purchasing Bitcoin ASICs, and the market has more liquidity/stability, the designers of them may start hoarding the devices. They could easily create massive farms that control too much power.
Additionally, once block rewards diminish, they could practice illegal monopoly tactics. Include all transactions with super low fees to drive competition bankrupt, then when all competition is gone, raise fees to a ridiculous amount. Because designing an ASIC that would compete with current ones would cost millions of dollars to research, only to be kicked out of the market by monopoly tricks, attempting such a thing would be foolish.
Being an anonymous network, government regulation could not stop mining datacenters from abusing this.
submitted by skilliard4 to Bitcoin [link] [comments]

[Informational] [CC0] Mining By The Numbers

Bitcoin Mining

Every Bitcoin arrives into the world through a process called bitcoin mining. Bitcoin miners mint new Bitcoin on a transaction system called the Blockchain, which is a shared recording of transactions synced via the Bitcoin peer to peer network. In addition to minting coins, miners are also solely responsible for adding and subtracting transactions from the Blockchain shared transaction record, to facilitate normal payments and movements of funds.
In the early days of Bitcoin, every Bitcoin wallet could take part in mining. While coins minted in the early days of the project were valueless, as Bitcoin's popularity grew over time the minted coins would come to represent a highly prized reward. With this growth in reward valuation mining has shifted from the domain of desktop computers to a fierce competition between expensive and hard to obtain specialized single-purpose Bitcoin mining computers.

The Blockchain

To mint coins, miners update a public transaction record, called the Blockchain, or the block chain. The Blockchain transaction system is an open fund transfer system, enabling the miners to introduce new currency for trade, and facilitate the trading of Bitcoin between Bitcoin users. Although anyone may submit a transaction to the miners, only miners may add or remove transactions through a series of updates called blocks. Each block encapsulates a number of transactions, including the miner's reward of newly minted Bitcoin. Each block refers back to the preceding block in a chain configuration, hence the name Blockchain.
There is one block that does not link back to a preceding block, and that is the original block called the genesis block that was first published to the Blockchain in January of 2009 by Satoshi Nakamoto. The coins mined in that block are not spendable. Since Satoshi started the Blockchain, others have come to taken over the mantle of updating the transaction record and helping distribute the supply of Bitcoin to the world. Anyone may participate in building the blockchain, as long as they are able to expend energy in a provable way called proof of work.
Provable energy expenditure ensures that making changes to the transaction record is visibly expensive to accomplish, reducing the risk of alternative transaction records that could be used to mislead and steal by spending the same money in two conflicting transaction records. Making double spending expensive to accomplish and making the benefits of cooperation outweigh the possible returns of malfeasance gives participants in the Blockchain a way to evaluate their risk when receiving funds. Each block confirms that there was a provable amount of energy expended, establishing authority that there is not another series of conflicting transactions in which a visible payment did not happen.

Block Rewards

The supply of Bitcoin is designed to be limited, but distributed over time using a system called the block subsidy. The limited supply of Bitcoin was modeled after gold coins, and miners of Bitcoin can be thought of as the digital equivalent of gold miners.
Miners who mine blocks are allowed to print new coins for themselves with every block, with a time-diminishing reward. At the start of the Blockchain the subsidy amounted to fifty coins per block. The reward amount cuts in half every four years, as measured by every two hundred and ten thousand blocks. By 2035 the amount of new coins introduced per year should be under one percent of the total supply, and by 2140 there should be no more coin subsidy.
Miners may claim another type reward in the block, called transaction fees. These fees are essentially bids by Bitcoin users to have their transactions included in a block. A miner may only include transactions up to a limit, so it is expected that he will choose the set of transactions with the highest fees.
Fees are intended as a permanent reward for miners. Fees work by transactions inputting more funds than they output, which is allowable. Miners who include transactions in their block are allowed to take the excesses from inputs and add those funds to their own special reward transaction which is called the coinbase transaction. As long as a miner does not attempt to claim more Bitcoin in the coinbase transaction than was missing from outputs and is allowed by the block subsidy, he forms a valid block.

Hashing

To produce blocks that update the Blockchain, miners must perform what is called a Hashcash, or a Proof of Work, in what is called hashing. A Hashcash challenge proves that the hasher did something that took significant energy to complete, in a way that is easily verifiable by any observer. In Bitcoin's implementation of Hashcash, this proof of work is to create a signature of their Blockchain update that matches a challenge pattern that is designed to be difficult to match. Bitcoin's signature method uses an algorithm called double SHA256, so the work of hashing is essentially computing large numbers of SHA256 hashes.
Sometimes hashing is described as a difficult math problem, but in actuality the problem is a easily provably energy spending problem. It is designed to prove that the miner spent real world resources to create updates, to give an assurance that there is not another set of updates somewhere else that conflicts. Hashers aren't intelligently solving any problem, they are simply finding the solution to an equation by brute force guessing.
To complete a Hashcash challenge, or win a block, the miner must search for a block with a hash value that matches a challenge pattern called a target. Miners constantly adjust their block, trying many times using random data called a nonce to make their block match the challenge pattern. The system is designed to dynamically adjust the challenge difficulty to achieve a ten minute block discovery time, or one hundred and forty four blocks per day.
Every two weeks, as measured by two thousand and sixteen blocks, the challenge pattern difficulty is adjusted by the network. The adjustment targets a ten minute block discovery time using the previous two weeks' data. The adjustment can go up or down, but due to advances in hashing technology the challenge generally gets harder as time goes by.

The Mining Game

Mining has come a long way from the early beginnings of Bitcoin. It took almost a year after Satoshi Nakamoto published the first block for the difficulty to even adjust to a higher setting due to increased competition. The original configuration of desktop mining computers CPU power to find hashes, with all wallets participating in the mining, could not last in the face of Bitcoin's increasing popularity over time.
GPUs were found to be able to mine so much more efficiently than CPUs that they began to make CPU mining obsolete. As GPU mining rose in popularity, Satoshi asked people to avoid it for as long as possible to keep mining distributed, but eventually the tide of GPU miners overwhelmed any possible CPU competition and the mining option was removed from the Bitcoin desktop client visual interface.
An early innovation in mining was to create a pool of effort, or a mining pool. The first pool was created by the developer Slush, and he offered miners an opportunity to trade their hashing power in exchange for a share in his payouts. By increasing their chances of winning a block through collective effort, miners were able to minimize the undesirable reward variance inherent in the hashing process.
Mining pools took over the entire spectrum of mining, splitting into a few archetypes: farms to pool the mining effort of a company, decentralized pools like P2Pool or Eligius or Bitminer who seek to combine risk minimization with the distribution of individualized miner decision making, and standard pools like Slush's pool which essentially rent hashing power from contributing miners.
For a short time, there were some movements to upgrade from GPUs to an even more efficient form of mining called FPGA mining, but Bitcoin's value grew so quickly that the final configuration of mining was found in dedicated hashing devices called ASICs. ASIC miners, custom built chips that mine so much more efficiently and powerfully than anything else that they make any other option useless, quickly took over the entire hashing competition.
The first ASICs appeared in 2013, but multiple generations over the years have dramatically improved on the technology so that even older model ASICs are hopelessly obsolete. Unfortunately for Bitcoin's decentralization, the high expense of ASIC production has meant that mining manufacturing companies are also given a unique advantage by vertically integrating. Instead of selling their equipment to a distributed set of operators many ASIC manufacturers choose to mine on their own equipment. This means that mining as an individual became extremely difficult as ASICs completed their dominance of Bitcoin mining.
A common Ponzi scheme that pretends to offer a way for ordinary individuals to still take part in mining is called the cloud mining scheme. In this, an up-front deposit is taken to rent mining hardware with, with supposed future payouts from the hardware being given out over time. Instead, the scheme simply takes deposited funds and uses it to pay the payouts. Over time this scheme has fallen in popularity as victims have become burned and knowledge of the scam has spread.
submitted by pb1x to writingforbitcoin [link] [comments]

append share difficulty to username - possible?

I have an extremely weak miner, which -for other reasons- still shall mine, don't ask why :-).
But even after one day, it just doesn't appear on a NOMP pool /workers page - probably because I don't see a '(yay!!!)' in the miner?
With P2Pool there were ways to specify the 'share difficulty' https://en.bitcoin.it/wiki/P2Pool#Useful_features
I used it before. Something like
-u username...vD2rw3sM++0.0001164/0.6 or
-u username...vD2rw3sM+1000 or ... ?
When I try the same with NOMP, I get an 'Stratum authentication failed'
Any hint welcome! Thanks.
submitted by drakoin to NOMP [link] [comments]

Can someone explain what exactly is going on when I set p2pool shared and local share difficulty.

Here in these resources: http://squiggie.com/pools/faq/ https://en.bitcoin.it/wiki/P2Pool
They talk about setting the difficulty of p2pool. In the bitcoin wiki they suggest 1000 for 1GH/s for shared difficulty and 1 for local difficulty. It gets more confusing when the squiggie wiki talks about multiplying, for what it appears to be, some magic number that will give the correct local difficulty. Search else where and I can mange to find another magical number. What is the number they are multiplying by?
A quick play around and I get a number of 0.0001 for local difficulty. The miner sends shares frequently enough so that I feel that it is working. However, I am well aware p2pool is lying to me and probably not accepting those shares at all.
What exactly is shared difficulty and local difficulty values that can be set? Also how does it relate, for example, to a p2pool when it reports the share (not shared) difficulty is 3.29 (215000)? An explanation of what these numbers would be appreciated as well.
Update: an expasion to the example, local rate is 2MH/s, pool rate is 1.37GH/s.
submitted by NebulaFox to dogemining [link] [comments]

Bitcoin Tutorial #40 - P2Pool Cryptocurrency Mining Difficulty Explained - Mining Difficulty And Analysis Vertcoin (VTC) P2Pool setup guide for Windows Blockchain/Bitcoin for beginners 9: Bitcoin difficulty, target, BITS - all you need to know How to choose a Bitcoin mining pool

Proof of Work, “mining,” and P2Pool An overview of itcoin [s consensus model Paul (Pavlos) Georgiou — PGP: A4C02B7A9C233216725FDCFA5816243AF4D1B6BB 1 unless I am not understanding correctly, your miners share difficulty being higher than the pool share difficulty is a good thing. I have been trying to understand this for days and reading a lot of things about pseudo share difficulty and taking hash rate * 0.00000116 and adding hashrate+(hasrate x 0.00000116) - please look this up yourself for exacts. reduce share time, I have seen how a share time of 10 seconds results in a disaster with LEAF when I mined on the pool with 4Mh only. On the other hand, the cpuminer was not affected by the problem. set a high fee on the pool which gets then redistributed to the miners of the pool with the "patron sendmany" feature of p2pool. Bigger miners will ... Miners have to run enough hash power to ensure they have at least one share in the p2pool share chain when the pool finds a block so that they get a portion of the reward. As the pool continues to grow smaller miners are forced out because the time to find a share becomes so great that a run of bad luck could mean not receiving a payout per block found, or in extreme cases per difficulty ... P2Pool uses a novel method of mining, called share chain mining. Share chain mining is similar to Blockchain mining, with the exception that share blocks have a lower difficulty that is more accessible to an average miner. A miner is twenty times more likely to get a share block than a Blockchain block. The share chain achieves this by operating on a lower difficulty targeting system than the ...

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Bitcoin Tutorial #40 - P2Pool

Live Bitcoin Trading With Crypto Trading Robot DeriBot on Deribit DeriBot Alternative channel 932 watching Live now Crypto Mining Difficulty 101 - Everything You Need to Know - Duration: 18:40. In diesem Tutorial geht es um den speziellen P2P-Pool. Früherer Zugang zu Tutorials, Abstimmungen, Live-Events und Downloads https://www.patreon.... As requested an overview of shares, difficulty and luck. Excuse my appearance as I am still under the weather a bit. More detailed vids to the series coming. Plotting Rig Build: ASRock X399 TAICHI ... Full node configuration: server=1 rpcuser=user rpcpassword=YourSuperGreatPasswordNumber_DO_NOT_USE_THIS_OR_YOU_WILL_GET_ROBBED_385593 Download P2Pool: https:... What is Bitcoin Mining Difficulty Bitcoin Mining Guide - Getting started with Bitcoin mining A chart showing bitcoin mining difficulty changes over time Bitcoin is the currency of the future ...

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