Bitcoin without mining - what needs to be implemented

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Mining is not essential for coin creation. New coin introduction can be tied to new block creation, or be time based. Even if you don't use proof of work, you will still have blocks (even if you don't call them that way anymore; they may be called "database updates"). More interesting however, if you don't use proof of work, you don't even need your own currency (but you still could).

Validation is done by full nodes (the "auditors"). Miners also validate, but it is not their primary function. They do so because otherwise their blocks - which indirectly provides their income - could unknowingly be invalid, and not be accepted by the rest of the ecosystem.

Mining has one and only one purpose: providing a decentralized, permissionless mechanism for determining which version of history to accept, in case there are multiple valid competing versions. These competing versions are inevitable when there is not a single party coordinating their creation. This is because...

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I don't know anything about Multichain so I'm not sure if this is the answer you're looking for, but here's one answer that might help you.

The interesting thing about proof-of-work (Nakamoto) blockchains is that they enable a constantly-changing set of unknown nodes on the internet to achieve consensus under certain assumptions about the adversary (i.e., the good guys are more "powerful" than the bad guys).

Before Bitcoin, no one knew how to do this (AFAIK) and all consensus algorithms required that the participants were known and that 2/3 of them were honest. Typically, an admission control process was used to decide who could participate and who couldn't. This was, for the most part, a human process.

Now, blockchains solve this very hard problem of permissionless consensus: How can you agree on a log of operations among N participants as they leave and join the system, without an admission control process? The answer: Use a little bit of economics to...

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Both Bitcoin and Ripple are systems made of many components. One such component is a method to synchronize transactions and secure against double-spending; Bitcoin uses mining based on proof of work for that, while Ripple uses a consensus mechanism. Another component is the initial issuing of coins - Bitcoin uses mining for that as well, while Ripple uses central issuing. Of course, the key component of Ripple, which Bitcoin lacks, is a credit network with pathfinding.

You could build a system which is like Bitcoin in every way except that it uses consensus for synchronization rather than mining. It is likely that the total energy spent on generating new coins will be lower than the total energy spent on synchronizing transactions; so replacing that part with a mechanism that requires less energy is welcome. However, the consensus mechanism is not as proven as the mining mechanism, and is less decentralized thus less consistent with Bitcoin's overall...

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While the actual process of Bitcoin mining is handled by the Bitcoin mining hardware itself, special Bitcoin mining software is needed to connect your Bitcoin miners to the blockchain and your Bitcoin mining pool as well, if you are part of a Bitcoin mining pool.

The software delivers the work to the miners and receives the completed work from the miners and relays that information back to the blockchain and your mining pool. The best Bitcoin mining software can run on almost any operating system, such as OSX, Windows, Linux, and has even been ported to work on a Raspberry Pi with some modifications for drivers depending on your mining setup.

Not only does the Bitcoin mining software relay the input and output of your Bitcoin miners to the blockchain, but it also monitors them and displays general statistics such as the temperature, hashrate, fan speed, and average speed of the Bitcoin miner.

There are a few different types of Bitcoin mining software...

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You will learn

(1)

how bitcoin mining works,

(2)

how to start mining bitcoins,

(3)

what the best bitcoin mining software is,

(4)

what the

best bitcoin mining hardware

is,

(5)

where to find the best bitcoin mining pools and

(6)

how to optimize your bitcoin earnings.

Bitcoin mining is difficult to do profitably but if you try then this Bitcoin miner is probably a good shot.

How Bitcoin Mining Works

Before you start mining Bitcoin, it's useful to understand what Bitcoin mining really means. Bitcoin mining is legal and is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is measured in hashes per second.

The Bitcoin network compensates Bitcoin miners for their effort by releasing bitcoin to those who contribute the needed...

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There are people who prefer not to earn Bitcoins through mining. One such reason is because in order for Bitcoin miners to be profitable with recent technology, a lot of electricity is required to power the systems. As such, it is not profitable for everyone to earn using this way of earning. How do you earn Bitcoin then without mining? Here is a list of some websites that you can visit:

Paid-To-Click Websites

Websites such as BTCClicks payout for every advertisement that you visit on their sponsor websites. You will be required to view the ads for a certain amount of time, and you will be dispensed Bitcoins as a reward. This is one of the most common ways to earn without having to mine them yourself.

Bitcoins as Accepting a Means of Payments

Another easy method is to charge a service and decide that you will accept Bitcoins as a payment system. Any product online or offline can be legally traded , so this alternative will allow you to save...

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The block chain is simply a directed graph of records where the links are hashed, so if you have a particular head of that data structure all reachable entries from that head are included in that hash. So you can establish a sequence of time.

The crucial part is that the network needs to reach consensus about the current head of the chain and how to decide what the next entry shall be.

So at any given point you can trust the entire past history as long as you can establish that a particular block ought to be the current head.

What the blockchain brings to the table is an incentivized proof-of-X scheme that drives the consensus forward in to the future while making forging even a single new block expensive and forging an entire history prohibitively expensive.

Adding a proof-of-X scheme is fairly easy. But incentivizing people to invest considerable resources into that scheme so that a takeover becomes too expensive to perform is not as easy.

One...

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Tuur Demeester is an independent investor, newsletter writer and editor in chief at Adamant Research. Launched in 2015, Adamant Research provides a monthly newsletter service. The inaugural report, ‘How to Position for the Rally in Bitcoin’ can be found here.

2015 was another rollercoaster year for bitcoin: incredible amounts of infrastructure development, lots of talk about ‘the blockchain’ and the fierce scalability debate, all against the backdrop of a crash to $150, which was followed by a high of $500 (so far).

Let's reflect back on the ups and downs of bitcoin's financial history, and then we can look forward to the ride to come.

Here's my condensed take on the financial history of bitcoin:

2009-2010: Conceptualization

This is the pre-history of bitcoin-the-currency, as there’s hardly even a price for the tokens generated by the bitcoin software.

A lot of technical and economic discussions take place, and core developers...

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Bitcoin is in for the long haul, even if the cryptocurrency craze has settled down in recent months. And if you’re still wondering, “what’s this bitcoin mining thing actually about? Can I really make money out of it?” then take this to heart: Yes, bitcoin mining is a tech activity that can help you earn some extra cash on the side — as long as you’re ready for the challenge. Fortunately, we have just the guide to help you get started.

Related: Mining for bitcoins just got a lot harder

Understand the amount of effort involved

Mining for bitcoins is not a casual undertaking. The idea seems simple enough, but the practice of bitcoin mining takes a lot of work. You need to invest a significant amount of money when first starting up, be willing to upgrade your equipment regularly, and constantly monitor the conditions of the bitcoin market — and that’s just the beginning. To earn any appreciable money while mining bitcoins, you have to work at it. Additionally,...

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Bitcoin

Ultimate guide to Bitcoin

Bitcoin Trading – The Ultimate Guide

Written by: David Waring

Detailed explanation of bitcoin and how it is traded

5 / 5 stars

At the time when this guide was written, January 2014, the price of one bitcoin stood at $913, down slightly after reaching an all-time high of over $1,200 earlier in December. The new cryptocurrency came a long way from trading below $4 just two years ago. Major online and offline retailers are starting to add the new currency as a payment method. But what exactly is bitcoin?

According to a recent Bloomberg poll, only 42 percent of Americans correctly identified bitcoin as a virtual currency. Six percent thought it was an iPhone app.

Bitcoin is a peer-to-peer digital currency launched in 2009 by ‘’Satoshi Nakamoto’’. Satoshi worked on the project alone for 2 years before releasing the code to the public. He disappeared shortly after creating the...

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Although most bitcoin users rely on freely-available web and mobile wallets, recent security scares clearly illustrate the need for safer alternatives. Here, we take a closer look at one device designed to address the problem.

The Trezor hardware wallet is targeted at bitcoiners who wish to maintain a substantial stash of coins, but do not want to rely on third-party bitcoin storage services or impractical forms of cold storage.

Developed by Czech startup SatoshiLabs, the $99 device is essentially a USB dongle designed to add an extra authentication layer to all outbound bitcoin transactions.

By virtue of its design, Trezor can be used to sign transactions on 'unsafe' computers and is impervious to keyloggers and many other vectors of attack, so even if your host PC is compromised, the attacker has no way of getting your private key.

That's also where the device gets its name, as 'trezor' translates into 'vault' in most Slavic languages, including Czech....

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There is no information on the BitClub Network website indicating who owns or runs the company.

The BitClub Network website domain (“bitclubnetwork.com”) was registered on the 22nd of July 2014, however the domain registration is set to private.

The BitClub Network website itself is being hosted out of the Netherlands, without more information however it’s not clear whether this is also where the owner(s) of the company are based out of.

As always, if a MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

The BitClub Network Product Line

BitClub Network has no retailable products or services.

Affiliates market membership to the company itself ($99) and then invest and encourage others to invest in three “mining pools”.

The BitClub Network Compensation Plan

The BitClub Network compensation plan revolves around affiliates investing in three...

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