Why did bitcoin programmers release mining code?

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Bitcoin is a decentralized digital currency. It is meant to be resistant to corruption and external control. That is the reason it was created.

Bitcoin achieves this only through the approach where consensus of the ledger is achieved by performing work.

Bitcoin is vulnerable -- this consensus mechanism can be blocked by anyone with 51% of the mining network capacity. To prevent anyone from having that ability to block, the mining network needs to be large enough so that there it is vastly economically unfeasible for an attacker to disrupt the network.

So to achieve this requirement of being protected with a ginormous amount of hashing capacity, the mining process is subsidized. This subsidy comes from the issuance of new currency. This subsidy helps to bootstrap the currency by putting it into many hands who might be willing to spend the funds for goods and services which draws merchants and service providers into the bitcoin economy.

So the combined...

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Why does Bitcoin have “Miners?”

Gold has miners because people want gold and it just so happens, unfortunately, that most gold is deep in the earth. Bitcoin has miners because people want bitcoins, but something here seems silly: how did a bunch of bitcoins, the tokens of a man made invention, end up locked up in circumstances demanding mining? What’s the point of that?

Not the Best Name

The truth is, bitcoin “mining” is a misnomer. When gold is mined, nothing is achieved beyond the discovery of new gold. When bitcoins are mined, however, a valuable service is provided to the Bitcoin network: decentralized transaction recordation and validation.

Double Spending

Bitcoin relies on miners to record and validate transactions because of a particular problem inherent in any system of digital currency: double spending. Double spending is the high-tech incarnation of counterfeiting. Say, for example, that a currency user, Alice, has a $5 note and she...

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If “mining” sounds like a process which extracts value from Bitcoin, nothing could be further from the truth!

Miners are the backbone of the Bitcoin network:

Without miners, the network would collapse and lose all value.

The role of miners is to secure the network and to process every Bitcoin transaction.

Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”).

For this service, miners are rewarded with newly-created Bitcoins and transaction fees.

The Blockchain

To understand mining, it’s first necessary to understand the Bitcoin blockchain.

It works like this:

All Bitcoin transactions are recorded in the blockchain, in a linear, time-stamped series of bundled transactions known as blocks.

The blockchain is essentially a public ledger, which is freely shared, continually updated and under no central control.

...
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Segwit2x, a controversial scaling proposal largely backed by the bitcoin network's enterprises and miners, is moving ahead in adherence with its previously announced timeline.

In an email yesterday, Bloq co-founder and Segwit2x lead developer Jeff Garzik confirmed to CoinDesk that new code is set to be released on Friday, following two weeks of alpha release testing. The release is said to address issues and comments on the initial version.

As such, the release is expected to mark a new phase for the proposal, which has been praised by some as a pragmatic solution to the network's perceived capacity issues and derided by others as a deal that misunderstands the nature of bitcoin development and the network's intended design.

Still, it has emerged as unique, given that it was able to bring together perhaps the largest contingent of companies and mining pools ever in support of a scaling proposal. Further, its support by a large majority of miners means, if...

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Where to start?

As Bitcoin is gaining more and more attention in the media, whether positive or negative, plenty of developers and enthusiasts are starting to take a liking to the technology involved. Imagine you are a(n aspiring) coder, and you want to get involved with Bitcoin coding, where do you even start? It is a question on a lot of people’s minds, but there is no single definitive answer. What we can do, is give you some pointers in the right direction.

Javascript

Javascript is the most popular programming language in the world, and Bitcoin is no exception to that fact. Especially when you consider BitPay, the world’s leading Bitcoin payment processor, has developed their own JS library which you can use on the server and client (in the form of Bitcore.io).

Furthermore, aspiring developers can start building their application with a web interface on top of it, and do all of this in one and the same programming language. More importantly,...

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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 out there...

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Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks. With Bitcoin, you can be your own bank.

If you are new to Bitcoin, check out We Use Coins and Bitcoin.org. You can also explore the Bitcoin Wiki:

How to buy bitcoins worldwide
Buying Reddit Gold with bitcoin

Will I earn money by mining bitcoin?

Security guide for beginners - (WIP)

Community guidelines

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person...
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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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See on Github

It was 2013 when I first dove into Bitcoin as a (wannabe) developer and since then I hoarded a remarkable amount of websites, articles, readings, threads, mailing lists. Well, it’s been 2 years and I can still see a clear, major bottleneck: we fall extremely short of developer resources. While it may be a matter of pioneering (is it really? we’re far beyond 2009…), when it comes down to investors, politics and philosophy we all agree that Bitcoin is in the spotlight.

Why is Bitcoin development so elitist? I truly believe this aspect alone defeats the motivations behind Bitcoin and I realized there’s a steep learning curve in front of those willing to step in. Let alone bitcoinj providing very well for Java programmers, the support for other languages sadly looks like Google Code. Even the frameworks for the JavaScript + Node.js platform are mostly a work in progress and those who aren’t often miss out on the networking tier. The renowned...

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There are hundreds of Bitcoin alternatives out there. One term for these is Altcoins, another generic term is cryptocurrency. It’s only worth investing money and time into ones that will stay in existence and grow. Just like with any investment, it’s best to buy at a low price. In some cases that means buying them at a low price on an exchange, and for others it’s mining them with specially designed computing machines.

Running a Bitcoin and Altcoin mining operation, I like to look for Altcoins to mine that are going to go up in value. If I can mine many of them while they are inexpensive and easier to mine, and I keep as many as possible after paying my bills, I’ll end up being very profitable.

Before delving in Altcoins, it’s worth looking at Bitcoin. It has a huge installed base. It will be around for a long time. It is the standard and has so far proven to be solid. It does have a few issues that could lead to problems, but these will get worked out. No one wants...

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Every person wants to earn money online & many people have heard of Bitcoin. Today we are going to learn about bitcoin. What is Bitcoin Mining & How can you earn Bitcoin.

As you know there are many currencies like INR, Dollar, Euro, Yen, etc. which are used to trade or to purchase something. But what if I say you that there is also a currency which you cannot touch or feel but it’s stored electronically on your device like phone or computer. It’s not a coin but it’s just a virtual or digital currency which is stored on your device.

BitCoin is a digital currency, invented by a programmer named Satoshi Nakamoto. Bitcoin was introduced on 31 October 2008 to a cryptography mailing list and released as open source software in 2009. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. This activity is referred to as mining and miners are rewarded with transaction...

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Companion Video:

Bitcoin is just another currency. Bitcoin refers to the entire currency system and BitCOINS are basic units (just like Dollar or Pound)

Like other currencies, you can save/ spend Bitcoins, or exchange with other currencies.

What is Digital currency?

Digital currency can be easily stored and used on a computer.

Dollar can be considered digital currency as such, we can use it to shop online.

However, dollar supply is controlled by a centralized bank.

What is Decentralized?

Gold coins are decentralized, means, there is no central authority controls the supply of gold.

Anyone can dig for gold and distribute gold, but it is not easy to exchange with exact change.

Also not possible to transfer over internet.

Bitcoin is the world’s first currency that is both Digital and Decentralized, somewhat like digital gold.

Bitcoins is a stateless currency, not associated with any nation,...

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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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General Security Notes on Bitcoin Programming

An important disclaimer we need to mention here is that in this appendix, we'll write programs that send and receive only a few pennies. The techniques and example discussed are useful for learning the basic concepts of Bitcoin programming but are in no way appropriate for writing programs that manipulate substantial sums of money. If you plan on writing serious Bitcoin applications, you'll need to do the following:

1. Learn the basic concepts from the sample programs in this chapter.

2. Use this knowledge to study and understand the underlying source code for the Bitcoin libraries used in this chapter.

3. Follow the forums used by the developers and other library users to stay current with any security risks involved when using these libraries.

Most important, be aware that we're using community-maintained source code in our examples; if a clever black hat hacker[1] manages to insert some rogue...

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Crypto-currency has seen a steady rise from being an underground internet movement, to being considered a serious currency. The value of a Bitcoin as it stand is around $600. The flip side of Bitcoin’s value, is that it is not as easy to mine as other crypto currencies, and the market may be moving.

It is the community of programmers and miners that form the backbone of the crypto-currency world. Knowledgeable insiders of the relatively new altcoin, Feathercoin, share their views and ideas on Bitcoin, mining, and the aspirations of the crypto-currency communities.

What is your involvement with crypto-currency?

We mine coins, and are heavily involved with the forum communities. We give a lot of advice on the programming, and the technical aspects of Feathercoin.

What is Feathercoin, and why do you not mine Bitcoin?

Feathercoin is a crypto-currency that is in an earlier stage of development. It is nearly impossible now to mine Bitcoin using a...

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This page is a stub. Help by expanding it.

This article or section contains information that is no longer up-to-date. Please either update the outdated information or remove the outdated information.

This page is an analysis of the costs/benefits of pooled mining.

Some people say that no matter what, over the long run mining solo will provide the same return as mining in a pool. This is not true. Reality is subtly different from this: In reality, while competent solo mining has an equal _average_ return to competent, cheater-less, fee-less pooled mining the distribution of rewards is very different: Solo mining has higher odds of small or no payout at all, but also higher odds of large payout. The bitcoin system is not stationary, so you can't be promised to average out over time, but this doesn't change that your expected return (an average against alternative yous) is the same either way.

However, even though the combination of good and bad luck...

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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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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 on...

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One of the many topics of discussion these days is which Bitcoin client people should use. Whether it is Bitcoin Core or Bitcoin XT, the debate will eventually be settled early next year. However, none of the other viable Bitcoin clients get mentioned in the discussion, even though there are a fair few to choose from. Does Bitcoin need more clients based on different coding languages, or is the situation fine as it is?

Also read: Neither Fiat Currency nor Bitcoin are Free From Volatility

A Plethora of Bitcoin Wallets, or Centralized Options?

Bitcoin Core and Bitcoin XT — although the latter is a matter of debate — are the two most popular Bitcoin software clients for desktop users these days. Many people tend to forget there are a fair few other options as well, although most of these options serve as light clients, which is something a lot of users seem to prefer.

In truth, the two main Bitcoin clients are available for just about any operating...

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When most folks hear the words “digital currency,” they usually think of electronic transfers of physical types of money, such as coins, paper dollars, and bank notes. Value is determined by central banks, who work with account holders and others to facilitate ease of exchange. While it is certainly possible to transfer cash electronically, digital currencies, such as Bitcoin, actually work very differently.

The birth of digital currencies

Digital currencies are used and exchanged within a virtual network. The developers that create the currency and network control the issue of the currency and its value.
One of the first digital currencies was created in 1996 and was called Egold. Subscribers opened an online account and could make transfers to other subscribers in the network for a small fee.

Key benefits of digital currency

Most digital currencies are not backed by any physical assets. They are unregulated by most central banking systems and do...

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A mysterious new technology emerges, seemingly out of nowhere, but actually the result of two decades of intense research and development by nearly anonymous researchers.

Political idealists project visions of liberation and revolution onto it; establishment elites heap contempt and scorn on it.

On the other hand, technologists – nerds – are transfixed by it. They see within it enormous potential and spend their nights and weekends tinkering with it.

Eventually mainstream products, companies and industries emerge to commercialize it; its effects become profound; and later, many people wonder why its powerful promise wasn’t more obvious from the start.

What technology am I talking about? Personal computers in 1975, the Internet in 1993, and – I believe – Bitcoin in 2014.

One can hardly accuse Bitcoin of being an uncovered topic, yet the gulf between what the press and many regular people believe Bitcoin is, and what a growing critical mass of...

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Add to favorites

Our favourite cryptocurrency mining software.

It’s pretty expensive to buy Bitcoin, but it’s hard to deny the cryptocurrency is growing in popularity.

While it’s not exactly the safest investment, with some security fears and lots of price fluctuations, the digital medium of exchange represents a cheap and fast alternative to expensive bank transfers.

So while it’s hard to get your hands on a bitcoin for a decent price, you can look at joining a mining pool instead.

Mining works by solving a series of increasingly difficult maths equations, and each one solved triggers the release of a new block of bitcoins, some of which the miners get as a reward.

However, each time an equation is solved, the next is a little tougher, meaning more processing power is required to solve it.

That means people have created mining pools, where people pit their processing power together to tackle the equations – and split the profits...

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By: Chris Tell at http://capitalistexploits.at/

“Bitcoin is the anti currency”; “Bitcoin, the currency of the future”; the “currency of the resistance”; “Bitcoin is a Fad”; “Bitcoin is a fraud”; “Bitcoin is a currency for drug dealers, kiddy fiddlers and terrorists.”

These are some of the opinions I've heard thrown around when discussing Bitcoin.

I have no particularly original insights into Bitcoin, and I won't pretend to understand the technology behind it. I can barely understand how my coffee machine makes such great coffee. This is the complexity of the world.

Firstly, let me say that we think Bitcoin is "cool". I love disruptive technologies. 5000 years ago shipping changed the world. I discussed this in depth in an article entitled Predicting Prosperity. I alluded to the “Guano age” of the 1800's which was destroyed by the advent of nitrate-based fertilizers.

The Internet, at least the Internet that most of us know has only really...

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