At which point do blocks get validated in the mining process?


A is protected by adding coinbase transaction with himself's bitcoin address.


The body of the block contains the transactions. These are hashed only indirectly through the Merkle root. Because transactions aren't hashed directly, hashing a block with 1 transaction takes exactly the same amount of effort as hashing a block with 10,000 transactions.

The compact format of target is a special kind of floating-point encoding using 3 bytes mantissa, the leading byte as exponent (where only the 5 lowest bits are used) and its base is 256. Most of these fields will be the same for all users. There might be some minor variation in the timestamps. The nonce will usually be different, but it increases in a strictly linear way. "Nonce" starts at 0 and is incremented for each hash. Whenever Nonce overflows (which it does frequently), the extraNonce portion of the generation transaction is incremented, which changes the...

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Recently over dinner, I was asked to explain bitcoin mining, and I struggled as it is entangled with a number of other concepts. Here’s my attempt at breaking it down into bite-sized pieces.

What is bitcoin mining?

Mining is the process of writing pages (blocks) of bitcoin transactions into the bitcoin ledger, called ‘The Bitcoin Blockchain’, and getting rewarded with newly created bitcoins.

To understand this in more detail, the rest of the post describes:

How do bitcoin transactions work? Why is mining needed in bitcoin? Why do miners mine? What is this ‘computationally expensive’ guessing game? Why pay rewards in BTC instead of USD? Who mines? What can and can’t miscreants do?

If you are new to bitcoin, it might be worth having a quick read of “A gentle introduction to bitcoin”.

How do bitcoin transactions work?

The process is:

Make a payment (a bitcoin transaction) Wait for it to be mined in a block (average 10 mins) Wait for more...
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After spending most of last night and today reading up on BitCoin, I still have a few questions. Please also correct me where I state something incorrectly. Pointing me in the direction of good further reading on the subject is just as much appreciated as an answer.

As best I understand the BitCoin mining process:

BitCoin miners work with the existing accepted block chain to create a new block hash. The new block itself contains recent transactions (since the last validated block?), a random number, and the previous (most recently validated) block's hash. The new block is hashed until a hash is found that meets the current difficulty standards. The new block is then published - presumably with its hash and the key required to validate it - in hope that it will be generally validated and yield a BitCoin minting (currently 50 BTC).

Question 1:
If Alice has just created a successful hash and publishes her new block to the network just moments after Bob has...

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The blockchain is the new hot technology. If you haven’t heard about it, you probably know Bitcoin. Well, the blockchain is the underlying technology that powers Bitcoin. Experts say the blockchain will cause a revolution similar to what Internet provoked. But what is it really, and how can it be used to build apps today? This post is the first in a series of three, explaining the blockchain phenomenon to web developers. We’ll discuss the theory, show actual code, and share our learnings, based on a real world project.

To begin, let’s try to understand what blockchains really are.

What Is A Blockchain, Take One

Although the blockchain was created to support Bitcoin, the blockchain concept can be defined regardless of the Bitcoin ecosystem. The literature usually defines a blockchain as follows:

A blockchain is a ledger of facts, replicated across several computers assembled in a peer-to-peer network. Facts can be anything from monetary transactions to...

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BUIP033: Parallel Validation
Proposer: Peter Tschipper
Submitted on: 10/22/2016


Essentially Parallel Validation is a simple concept. Rather than validating each block within the main processing thread, we instead create a separate thread to do the block validation. If more than one block arrives to be processed then we create yet another thread. There are currently up to 4 parallel block processing threads available making a big block DDOS attack impossible. Furthermore, if any attacker were somehow able to jam all 4 processing threads and another block arrived, then the processing for the largest block would be interrupted allowing the smaller block to proceed, unless the larger block or blocks have most proof of work. So only the most proof of work and smallest blocks will be allowed to finish in such
as case.

If there are multiple blocks processing at the same time, when one of the blocks wins the race to complete, then the other threads of...

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Blocks on the Bitcoin blockchain have a maximum size of 1 MB. Proof of work difficulty is calibrated so 1 block is created every 10 minutes. It is generally accepted a miner would want to maximise the number of transactions it includes in a block as it collects the transaction fees. Logically, with the growing popularity of Bitcoin, the average block size is getting closer to its limit.

In this environment, it is surprising to see a number of empty blocks being mined. An empty block is not entirely empty, it has 1 transaction : the coinbase transaction which allocates the mining reward to the miner (12.5 bitcoins at the time of writing). It is important to know, that empty blocks are not easier, cheaper or quicker to mine than full blocks. The ratio of empty blocks varies considerably from one mining pool to the other. For instance, Bitfury, BitClub Network and Kano CKPool do not mine empty blocks.

Why are there empty blocks?

When a mining pool...

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Today someone showed up on IRC suggesting a scheme for to improve the

ability of miners to mine without validation while including transactions

by shipping around an approximate sketch of the txins that were used by a


I pointed out that what sounded like the exact same scheme had been
previously proposed by Anthony Towns over a year ago, that it turned out
that it didn't need any consensus changes, but also wasn't very attractive
because the actual transmission of the block (at least with FBRP or Fibre)
didn't really take any longer... And, of course, mining without validating
does a real number on SPV security assumptions.

But then realized the the conversation between Anthony and I was offlist.
So-- for posterity...

I think the most interesting thing about this thread is that it gives a
concrete proof that a restriction on collecting transaction fees does not

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Imagine a scientist reading about an experimental result and then repeating the experiment for herself. Doing so allows her to trust the result without having to trust the original scientists.

Bitcoin Core checks each block of transactions it receives to ensure that everything in that block is fully valid—allowing it to trust the block without trusting the miner who created it.

This prevents miners from tricking Bitcoin Core users into accepting blocks that violate the 21 million bitcoin limit or which break other important rules.

Users of other wallets don’t get this level of security, so miners can trick them into accepting fabricated transactions or hijacked block chains.

Why take that risk if you don’t have to? Bitcoin Core provides the best possible security against dishonest miners along with additional security against other easier attacks (see below for details).

How Validation Protects Your Bitcoins

and put your...

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The latest versions of our wallet now use a dynamic fee structure (which you can read about here) to determine appropriate fees for your transactions, so some of the information in this post no longer applies.

If you have a pending transaction that is taking an abnormally long time to confirm, it may be due to network congestion. To find out more about how network congestion can affect your transaction, check out this article in our Support Center.

This is a Blockchain Quick Bit, where we cover the basics of a topic, or product, to help you understand it better. This Quick Bit is intended to help you learn about bitcoin transaction fees. Bitcoin transaction fees are one of the many benefits for consumers and merchants to utilize bitcoin, and is an attractive aspect of the digital currency. Currently bitcoin transaction fees can average to around .04 cents USD (or 0.0001 BTC) per transaction.

Bitcoin transactions are in place as an incentive to miners when...

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Alternative Blockchains
Consensus Alternatives to Proof-of-Work Mining

Alternative blockchains (sepearate from the bitcoin blockchain) are often labeled Consensus Protocols or Consensus Platforms. While none have yet to achieve the same scale as the Bitcoin blockchain, they do offer other benefits, such as increased speed, larger data capacities, different consensus methods or more advanced functionality. The end results remain the same - Secure and Efficient Distributed Trust. Each alternative has a varying degree of speed, cost, scalability, privacy, and network security, among other things.

Blockchain Alternatives

Several of the better known bitcoin blockchain alternatives are listed below:

Ethereum allows a network of peers to administer their own ‘smart contracts’ – short computer programmes that execute their instructions once certain criteria have been met.

Ripple’s distributed ledger are validated by consensus...

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Blocks on the Bitcoin blockchain have a maximum size of 1 MB. Proof of work difficulty is calibrated so 1 block is created every 10 minutes. It is generally accepted a miner would want to maximise the number of transactions it includes in a block as it collects the transaction fees. Logically, with the growing popularity of Bitcoin, the average block size is getting closer to its limit.

In this environment, it is surprising to see a number of empty blocks being mined. An empty block is not entirely empty, it has 1 transaction : the coinbase transaction which allocates the mining reward to the miner (12.5 bitcoins at the time of writing). It is important to know, that empty blocks are not easier, cheaper or quicker to mine than full blocks. The ratio of empty blocks varies considerably from one mining pool to the other. For instance, Bitfury, BitClub Network and Kano CKPool do not mine empty blocks.

Why are there empty...

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Just a few years ago no one had ever even heard of it. Now, Bitcoin is quite frequently close to being the news of the day in the business section of every news portal. Usually due to its high price fluctuations and the stories of people it has made into millionaires (or broke, after a bubble burst).

But for an average Joe, it’s still a complete unknown.What is Bitcoin mining and what does “Bitcoin mining” stand for? Mining Bitcoins is a process which validates transactions in the Bitcoin network with the use of hardware connected to it. To measure the speed of the mining operation the network uses hashes per second.

To be more specific, the process itself is done by running SHA256 double round hash verification process but that probably doesn’t tell you much if you are a beginner.Because this “validation” process requires a lot of energy users are compensated in Bitcoin by the network, which comes from two sources.

Some are newly created Bitcoins, which just...

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All started in 2009 when the mysterious pseudonym Satoshi Nakamoto published and started Bitcoin. It was identified as the first ever decentralised currency enabling users to perform peer to peer money transactions without a central authority. Bitcoin was the first application to implement the Blockchain technology while it’s inventor was still not identified.

As of today, there are over 800 cryptocurrencies relying on the Blockchain. Some just want to improve Bitcoin on a technical base, others extended or re-invented aspects of the Blockchain. They pushed other components, mechanisms and algorithms into place to solve problems of Bitcoin or answer their custom requirements.
Quite a lot of them do not want to be plain digital money. They are powering and financing digital products like for example decentralised cloud storage or a global supercomputer with it.

A lot of products and companies start using the Blockchain for other business cases...

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Have you ever wondered why there is no airship roots to Australia from America through Pacific? Well, google it! If you found out the reason then try to comprehend that how people have mechanized to follow the rules and regulations 3rd parties have put in forward without considering the smart way of doing things. May be for our own good. Bit harsh naah! Anyway this post is to eleborate concepts behind Bitcoin in a nutshell which is another endeavor to overcome intermediaries. Lets have a quick introduction to this before get into the programming stuffs.

Bitcoin: Bitcoin is a form of digital currency which was found out recently as a medium for exchange over the air. This is mostly used in transaction processing and validation on peer-to-peer network exploiting cryptographic operations with the specifications and software of open source community. Bitcoin’s total base money supply is valued at $125 million currently. Bitcoin is simply an “SHA-256” hash in hexadecimal format...

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One of the biggest problems I ran into when I was looking to start mining Bitcoin for investment and profit was most of the sites were written for the advanced user. I am not a professional coder, I have no experience with Ubuntu, Linux and minimal experience with Mac. So, this is for the individual or group that wants to get started the easy way.

1. Get a Bitcoin mining rig

Bitcoin mining is a very competitive niche to get into. As more and more miners come on board with the latest mining hardware the difficulty to mine increases each day. Before even starting out with Bitcoin mining you need to do your due diligence. This means you need to find out if Bitcoin mining is even profitable for you.

The best way to do this is through the use of a Bitcoin mining calculator. Just enter the data of the Bitcoin miner you are planning on buying and see how long it will take you to break even or make a profit. However, I can tell you from the get go that if you don’t...

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Is blockchain poised to be “the next big thing” in education?

This has become a question I hear with increasing frequency about a technology that, up until quite recently, was primarily associated with the cryptocurrency Bitcoin. The subtext to the question, I suppose: do educators need to pay attention to the blockchain? What, if anything, should they know about it?

Admittedly, I haven’t bothered to learn much about blockchain or Bitcoin either, despite the last few years of zealous headlines in various tech publications. I haven’t included either in any of the “Top Ed-Tech Trends” series I’ve written. And frankly, I’m still not convinced there’s a “there” there. But with the news this year that Sony plans to launch a testing platform powered by blockchain, with some current and former Mozilla employees exploring the blockchain and badges, and with a big promotional splash at SXSWedu about blockchain’s potential to help us rethinking learning (as...

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The world has gone digital, from the development of smart homes to the development of innovations that promote seamless transactions. Every industry is feeling the impact of technology now more than ever. In every part of the world, the technologically driven goals remain the same: the maximization of profit and the promotion of sustainable development in all spheres of life. It is this yearning to make life as easy as possible that brought about the birth of cryptocurrency.

Ethereum seeks to make these aspirations come true. The platform boasts of several applications that help users carry out everyday tasks in a simple fashion.

Mining is a computationally intensive work that requires a lot of processing power and time. Mining is the act of participating in a given peer distributed cryptocurrency network in consensus. The miner is subsequently rewarded for providing solutions to challenging math problems. It is done by putting the computer's hardware to use with...

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Data Mining Edit

Data Mining is the process of analyzing data from different perspectives to discover relationships among separate data items. Data mining software is one of several different ways to analyze data and can be used for several different reasons. It can be used to cut costs, increase revenue or for both. [1] The object of data mining is finding unkown data characteristics, relationships, and dependencies that were not know before hand. Traditional data analysis tools were designed so that when an end user discovers a problem, they are responsible for action to be taken in solving the problem. If the end user decides not to take action or does not discover one, then no action is taken. Data mining does just the opposite of a traditional data analysis tool. Data mining is proactive in taking action in looking for any kind of issues such as, anomalies and possible relationships. This information helps a user to gain an advantage with this knowledge that is given...

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Announced today are some really cool new Power BI features:

Power BI Premium

Previously available were two tiers, Power BI Free and Power BI Pro ($10/user/month). The problem with Power BI Pro is that for large organizations, this can add up. In addition, their performance needs might not be met. Power BI Premium, which is an add-on to Power BI Pro, addresses the concern about cost and scale.

For costs, it allows an unlimited number of users since it is priced by aggregate capacity (see Power BI Premium calculator). Users who need to create content in Power BI will still require a $10/month Power BI Pro seat, but there is no per-seat charge for consumption.

For scale, it runs on dedicated hardware giving capacity exclusively allocated to an organization for increased performance (no noisy neighbors). Organizations can choose to apply their dedicated capacity broadly, or allocate it to assigned workspaces based on the number of users, workload needs or...

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