Longer fake block chain with “valid” transactions

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Some API calls are available with CORS headers if you add a &cors=true paramter to the GET request

Please limit your queries to a maximum of 1 every 10 seconds. All bitcoin values are in Satoshi i.e. divide by 100000000 to get the amount in BTC

Real-Time

getdifficulty - Current difficulty target as a decimal number getblockcount - Current block height in the longest chain latesthash - Hash of the latest block bcperblock - Current block reward in BTC totalbc - Total Bitcoins in circulation (delayed by up to 1 hour]) probability - Probability of finding a valid block each hash attempt hashestowin - Average number of hash attempts needed to solve a block nextretarget - Block height of the next difficulty retarget avgtxsize - Average transaction size for the past 1000 blocks. Change the number of blocks by passing an integer as the...
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Video transcript

What I would like to do is describe an imaginary, or a fictitious, Bitcoin transaction. And then talk about how somebody might try to game or defraud the system. And why that's not only mathematically hard to do, but why there's actually an incentive-- actually an economic incentive in the Bitcoin system for different people to behave honestly. So let's suppose that there is someone out there named Dan, and that Dan wants to order a pizza-- maybe a cheese pizza, from Pete's Pizza Shop. And let's say that Pete's Pizza Shop accepts Bitcoins as payment, and that it costs 1 Bitcoin for a pizza pie. And imagine that Dan receive previously-- let's say he received 5 Bitcoins from his cousin, Carol. So maybe Carol, who I'm going to label by C, gave to Dan 5 Bitcoins, which we can label as a B with a circle around it. And that he wants to use 1 of these 5 Bitcoins to buy a pizza from Pete. And so what Dan's Bitcoin client will do is it will create a transaction...

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2014 is the end of Bitcoin’s sixth year. Analysts at the Coin Cadence Bitcoin Index compiled Bitcoin’s transaction data for the past six years. In 2014 Bitcoin Transaction Volume Doubled; growing 45.5%. Apparently, fake transaction chains could account for up to 50% of this network traffic.

Critical minds in the community are quick to point out the pros and cons of using transaction volume as a metric for growth. Primarily, that a transaction can be «fake» if sending coins back to yourself to no economic end. Effectively, its taking money from your left pocket and putting it in your right. New data going back years reveals Bitcoin has a history of fake transaction chains inflating its velocity.

The transaction velocity of money is a measurement of how frequently a unit of currency is part of any transaction. Fiat transaction fees vary depending on providers. Fees for using cash are low. However, services running on top of the fiat system, like credit cards or...

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Blocks in the main chain (black) are the longest series of blocks that go from the genesis block (green) to the current block. Purple blocks are blocks that are not in the longest chain and therefore not used.

A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency's block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history.

Every block contains a hash of the previous block. This has the effect of creating a chain of blocks from the genesis block to the current block. Each block is guaranteed to come after the previous block chronologically because the previous block's hash would otherwise not be known. Each block is also computationally impractical to modify once it has been in the chain for a while because every block after it would also have to be regenerated. These...

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Block chain is a public database of every Bitcoin transactions that has ever occured in Bitcion network. By utilizing this base every user is able to find out what amount of Bitcoin has ever belonged to some particular address at a certain time period. The block chain is supported by decentralized efforts of many miners.

Principles of building

Every mined block contains hash of the previous one. That way a chain of blocks is created which origins back from the so-called genesis block (the very first block in the Bitcoin system) up until the most recent block found by network. Editing data in a block that's been a part of chain for a long time isn't practical because you'd have to edit the data in all following blocks. Thanks to these properties the double-spending attack (repeated spending of already spent money) is almost impossible to perform in Bitcoin network.

Honest miners are always building their block upon the last mined, referencing to it. The...

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A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency's block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history.

Every block contains a hash of the previous block. This has the effect of creating a chain of blocks from the genesis block to the current block. Each block is guaranteed to come after the previous block chronologically because the previous block's hash would otherwise not be known. Each block is also computationally impractical to modify once it has been in the chain for a while because every block after it would also have to be regenerated. These properties are what make double-spending of bitcoins very difficult. The block chain is the main innovation of Bitcoin.

Honest generators only build onto a block (by referencing it in blocks they create) if it...

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This is part 3 of my series of blog posts on the topic cryptocurrencies. The first, introductory part can be found here. The second part on mining can be found here.

Recap – Bitcoin = direct electronic transactions without intermediary

To recap, I explained the main idea behind the Bitcoin protocol, which allows electronic peer-to-peer transactions without an intermediary. In brief, the process works as follows:

I own a certain amount of Bitcoin. This can be publicly verified, because every Bitcoin transaction since the very first one is entered into a public ledger called the block chain. So I can’t pretend to have more money than I have. I can send a certain amount of Bitcoin to a recipient, and I can’t cheat while doing that, because the transaction is publicly broadcast to all nodes in the network. I could simultaneously send out more Bitcoins than I have, but the network decides through a process that is a bit like voting (and in reality involves solving a...
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(This article was republished on steemit.com on 2016-07-12)

When bitcoin launched, a lot of people thought they finally had decentralised digital cash. We saw people using bitcoins for ideological reasons, but also for the presumed anonymous properties. You didn’t need to provide any identity information to create a wallet or send a transaction. Anonymous magic internet money. Cool, right?

Over the years, it became more clear that bitcoin isn’t anonymous at all. All transactions can be traced on the blockchain. If you transact with a stranger at a bitcoin meetup, he could start guessing your total bitcoin balance in your wallet. When you interact with regulated bitcoin businesses, you are required to provide ID information. And you can be sure that this company will couple your customer data to your blockchain fingerprint. This data can be handed over to law enforcement upon request, and be used to analyse the blockchain and associate more activity with you,...

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