What is the reason for using PoW in bitcoin?

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Why is it not designed in a way to use consensus algorithms what ripple uses?

A consensus algorithm requires that you can trust contributing nodes. Otherwise, you're open to a Sybil attack, where an attacker creates many dummy nodes. Ripple was built on the idea that you can establish trust in some entities, trust that they will not collude to defraud you.

Proof of work, as Bitcoin uses, has some advantages over this: proof of work does not require trust of any kind, and it doesn't require that you know anybody's true identities. Instead, you trust the proof that someone put a lot of work (time/money) behind establishing a block. Since Bitcoin aims to be a completely trustless, decentralized network, that allows some anonymity, it makes sense to use proof of work in it.

Of course, proof of work also has some disadvantages: a slow block time (say, a minute or more, to keep the orphan rate low) is necessary, which slows confirmations. It can be overtaken by...

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The src/main.cpp has RegisterNodeSignals and UnregisterNodeSignals to register the functions as boost signals as below:

void RegisterNodeSignals(CNodeSignals& nodeSignals) { nodeSignals.GetHeight.connect(&GetHeight); nodeSignals.ProcessMessages.connect(&ProcessMessages); nodeSignals.SendMessages.connect(&SendMessages); nodeSignals.InitializeNode.connect(&InitializeNode); nodeSignals.FinalizeNode.connect(&FinalizeNode); }

Let us pick InitializeNode as an example. The actual invocation happens in src/net.cpp which invokes the function defined in src/main.cpp:

GetNodeSignals().InitializeNode(GetId(), this);

I have the following question:

Why cannot we simply call this function? Why should we complicate with boost library and signals? Has it got to do with performance of threads? If yes, then why only the 5 functions in...
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I'm curious if there have been any technical evaluations of the vulnerabilities of cryptocurrencies that utilize more than one proof of work algorithm - for instance, myriadcoin or huntercoin.

Myriadcoin uses five different PoW algorithms, with different algorithms targeted towards different hardware, so that people are able to mine with ASICs, GPUs, and CPUs. The idea is that this will make it more difficult to centralize mining and harder gain control of 51% of the hashing power, while also making mining more accessible to as many people as possible.

I'm wondering if there are any potentially unintended consequences to this that maybe some folks have already...

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Find answers to recurring questions and myths about Bitcoin.

Table of contents

General

What is Bitcoin?

Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

Bitcoin is the first implementation of a concept called "cryptocurrency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010...

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@HostFat : A valid and helpful suggestion, but I'm not keen to go along with that. Here's why:
Avoidance will not the objective anymore, once I put out this fork.
The big miners have avoided sending a positive signal for BIP109 for far too long.
Notable exceptions are KNC and pool miners that took the opportunity to vote, through e.g. Slush.

If the big miners wish to continue mining on SHA256, they will either put out their own software or choose among what the community offers. In my case, there will be a SHA256 version of the fork, so if they choose, they CAN continue to put their equipment to good use.
When KNC announced bankruptcy, I already lost much hope for a SHA256 fork. It's only because the initial commitment of my fork was non-POW, that I am still going to put it out there for the market to decide.

I am NOT willing to give the big miners an opportunity to further dictate minimalist on-chain scaling terms through a mechanism which could easily be...
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Bitcoin is probably the best selling commodity in the Indian market right now. The demand for Bitcoin has soared to record highs in the last couple of days and Bitcoin currently trades at a 35% premium in India in relation to its price in the rest of the world. 1BTC trades for about $985 in India whereas 1BTC trades around $741 in the rest of the world.

Interestingly, the increase in Bitcoin adoption in India is causing cryptocurrency startups to take bolder steps to push their Bitcoin products and services in the country. This piece seeks to explore some of the latest developments in the Indian Bitcoin startup scene.

Unocoin releases Bitcoin mobile wallet for iOS and Android in India

Fresh news out of India’s crytocurrency scene shows that Unocoin has developed and launched a mobile application for its users. Unocoin is one of the leading Bitcoin exchanges in India – the startup provides a platform for buying and selling Bitcoin and it facilitate Bitcoin...

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What is Bitcoin?

One of the biggest revolutions of 21st century is bitcoin. Many people and businesses are embracing bitcoin economy. Today, there is opportunity to earn free bitcoins and use them to shop online. But, what is bitcoin?
Bitcoin, also known as a crypto-currency, is a decentralized payment system that allows people to send currency to each other online without the need for a trusted third party such as a bank being involved in the whole process. The transactions are usually cheap and mostly free. This explains why it has quickly become a popular currency online. So, what are the advantages or good reasons to earn free bitcoins?
One good reason to participate in free bitcoin earning is that it is still relatively new. If you join the bitcoin economy now that it is still at infancy, you will have the opportunity to be one of the leading bitcoin earners. If you have a business, you can get publicity for it if you participate in free bitcoin earnings....

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What is Bitcoin?

Bitcoin is a payment system introduced as open-source software in 2009 by developer Satoshi Nakamoto. The payments in the system are recorded in a public ledger using its own unit of account, which is also called bitcoin. Payments work peer-to-peer without a central repository or single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency. Although its status as a currency is disputed, media reports often refer to bitcoin as a cryptocurrency or digital currency.

Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. Called mining, individuals or companies engage in this activity in exchange for transaction fees and newly created bitcoins. Besides mining, bitcoins can be obtained in exchange for fiat money, products, and...

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Table of contents

What is Bitcoin mining?

Mining is the process of spending computing power to process transactions, secure the network, and keeps everyone in the system synchronized together. It can be perceived like the Bitcoin data center except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network.

This process is referred to as "mining" as an analogy to gold mining because it is also a temporary mechanism used to issue new bitcoins. Unlike gold mining, however, Bitcoin mining provides a reward in exchange for useful services required to operate a secure payment network. Mining will still be required after the last bitcoin is issued.

How does Bitcoin mining work?

Anybody can become a Bitcoin miner by running Bitcoin mining software and Bitcoin mining modules with specialized Bitcoin mining hardware. Mining software listens for transaction broadcasts...

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Bitcoin mining pools are a way for Bitcoin miners to pool their resources together and share their hashing power while splitting the reward equally according to the amount of shares they contributed to solving a block.

A "share" is awarded to members of the Bitcoin mining pool who present a valid proof of work that their Bitcoin miner solved. Bitcoin mining in pools began when the difficulty for mining increased to the point where it could take years for slower miners to generate a block.

The solution to this problem was for miners to pool their resources so they could generate blocks quicker and therefore receive a portion of the Bitcoin block reward on a consistent basis, rather than randomly once every few years.

Network Consensus

If you solo-mine, meaning you do not mine with a Bitcoin mining pool, then you will need to ensure that you are in consensus with the Bitcoin network. The best way is to use the official BitCore client.

If you...

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Table of Contents

It is unusual to begin a technical article with a disclaimer of responsibility but I believe it is necessary because as part of this work I am going to explain not only how it is possible to create a robot to analyze the bitcoin's incoming/outgoing traffic but also, how to check a vulnerability in the transactions' signatures that could potentially result in the ability to calculate the private key used in those signatures, what means that could be used to steal bitcoins. I will also write about why I believe robots like this one can provide a useful and invaluable service to the Bitcoin ecosystem and our society.

Introduction

If you have a bitcoin node running on a server, transactions are forwarded to your node and so, it is possible to perform a variety of very interesting analysis of the TCP traffic.

In this article I am going to show how you can intercept the bitcoin transactions using a simple IP sniffer....

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