Ethereum Rig: Build the Ultimate Mining Setup

Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
submitted by flacciduck to CryptoCurrency [link] [comments]

Are multiple mining algorithms possible with Monero? Can RandomX be added to the system instead of replacing what's in place? Not sure what headaches it would bring for the security part of Monero.

Are multiple mining algorithms possible with Monero? Can RandomX be added to the system instead of replacing what's in place? Not sure what headaches it would bring for the security part of Monero.
Is it possible for Monero to have multiple mining algorithms like Digibyte (DGB)? The idea of keeping the large group of GPU miners to help keep the network decentralized and expand with Random X to bring in a large number of CPU miners. Also, if for some reason Random X doesn't workout we still have current algorithm that gets updated every 6 months. DGB borrowed from Huntercoin which mines 2 algorithms and Myriad that has 5 mining algorithms. Could Monero do the same? I believe DGB also adjust algorithms to keep incentives equal.


Digibyte - Reddit
Decentralization
Decentralization is an important concept for the block-chain and cryptocurrencies in general. This allows for a system which cannot be controlled nor manipulated no matter how large the organization in play or their intentions. DigiByte’s chain remains out of the reach of even the most powerful government. This allows for people to transact freely and openly without fear of censorship.Decentralization on the DigiByte block-chain is assured by having an accessible and fair mining protocol in place – this is the multi-algorithm (MultiAlgo) approach. We believe that all should have access to DigiByte whether through purchase or by mining. Therefore, DigiByte is minable not only on dedicated mining hardware such as Antminers, but also through use of conventional graphics cards. The multi-algorithm approach allows for users to mine on a variety of hardware types through use of one of the 5 mining algorithms supported by DigiByte. Those being:
  • Scrypt
  • SHA256
  • Qubit
  • Skein
  • Groestl
Please note that these mining algorithms are modified and updated from time to time to assure complete decentralization and thus ultimate security.The problem with using only one mining algorithm such as Bitcoin or Litecoin do is that this allows for people to continually amass mining hardware and hash power. The more hash power one has, the more one can collect more. This leads to a cycle of centralization and the creation of mining centers. It is known that a massive portion of all hash power in Bitcoin comes from China. This kind of centralization is a natural tendency as it is cheaper for large organisations to set up in countries with inexpensive electricity and other such advantages which may be unavailable to the average miner.DigiByte mitigates this problem with the use of multiple algorithms. It allows for miners with many different kinds of hardware to mine the same coin on an even playing field. Mining difficulty is set relative to the mining algorithm used. This allows for those with dedicated mining rigs to mine alongside those with more modest machines – and all secure the DigiByte chain while maintaining decentralization.


Let's give every nation a chance to mine
submitted by MoneroMondo to Monero [link] [comments]

Electroneum Blockchain Upgrade FAQ

FREQUENTLY ASKED QUESTIONS
ELECTRONEUM’S MODERATED BLOCKCHAIN
Q: What is a Moderated Blockchain?
A: Electroneum’s new Moderated Blockchain (a type of permissioned blockchain that is at the qualitative level of IBM’s Hyperledger or Facebook’s announced Libra open ledger network) that has been uniquely and cleverly developed to provide Electroneum with a minimal but sufficient level of interference. This will allow the highly skilled engineering staff to supervise the distributed ledger which is maintained by a list of trusted validators. And this allows the tech team to detect anomalies or irregularities that could come from hackers attempting to breach our security, and immediately stop them preventing a double-spend or 51% attack. Because Electroneum controls the list of trusted validators, this empowers them to guarantee, and that is similar to IBM’s hyper ledger or that of Facebook’s Libra blockchain.
Q: Why did you move to a Moderated Blockchain?
A: To improve the functionality of Electroneum at the exchanges, allowing them to confirm deposit transactions faster and to protect the network from 51% attacks, and also Electroneum can decide to where the block rewards are rerouted ensuring that they are used to help improve the lives of the poorer in underdeveloped countries.
Q: What is the role of blockchain in a permissioned network?
A: It is essentially an immutable history of financial transactions. Electroneum’s Moderated Blockchain, which is a type of permissioned blockchain, unlike other decentralised cryptocurrency networks, can guarantee a tamper-proof system of transactional records.
Q: What motivation would someone have to trade on a permissioned blockchain when their transaction could get rolled back, or worse still, never get confirmed?
A: With Electroneum’s new Moderated Blockchain reorganisations can still occur but never will an irregular transaction actually be fully confirmed and then overwritten.
Q: Is there any risk of manipulation with a moderated blockchain?
A: There is a risk of manipulation if an authenticator key is leaked. However, the extent would be negligible and therefore not affect users, exchanges or miners. We developed a system to closely monitor the behaviour of both the network and miners to ensure any foul play is immediately crushed.
Q: How is Electroneum’s Moderated Blockchain different to other decentralised blockchains?
A: We have the authority to decide who mines the blocks and therefore, we can increase the likelihood that they are trusted validators.
Q: Why doesn’t Electroneum move to a fully centralised blockchain?
A: Our unique and cleverly created Moderated Blockchain is meant to have minimal interference to remove the risks and add protection whilst remaining decentralised to the point wherein the unlikely event that a meteor was to wipe out all of the Electroneum staff out of the face of the Earth by a meteor, ETN would not cease to exist. This because those nodes currently mining our blockchain or anybody else for that fact could swap out the codes and fork the network to take over control and guarantee the permanence of the cryptocurrency thus shielding our users from losses.
Q: What is Proof of Responsibility or PoR?
A: Proof of Responsibility, or PoR for short, is a new mining paradigm which obligates the miners to two primary responsibilities which are: 1) Maintain the integrity of the payment network, and 2) Spend the block rewards they receive responsibly to help poor people in line with Electroneum’s humanitarian agenda.
Q: How does PoR compare to PoW or Proof of Work?
A: PoR saves a lot of time and energy compared to PoW because instead of working with block validators overtime to prove or not that they’re reliable miners, we save time and potential adverse issues by hand-picking the miners ourselves.
SECURITY AND 51% ATTACKS OR DOUBLE SPENDS
Q: What is a 51% attack?
A: It is when someone takes over 50% control of the hashing power of a cryptocurrency. Hackers usually use this to benefit themselves with double spends, which is a hard loss for the exchanges as well as users in many cases.
Q: What IS an example of a 51% attack?
A: You may know 51% attacks better from both Bitcoin Cash in 2018 and Ethereum Classic in 2019, where hackers acquired more than 50 percent of the hashing power on those networks and getting away with a significant loot.
Q: What is hashing power?
A: This is the rate with which the mining rigs solve mathematical problems.
Q: Why doesn’t Electroneum require large amounts of hashing power anymore?
A: The Electroneum network difficulty automatically adjusts to maintain the target block time of two minutes. Regardless of the magnitude of the hashing power in Electroneum’s network will be kept to a two-minute target block time.
Q: Is Electroneum now insusceptible to a 51% attack?
A: We’re no longer susceptible to a 51% attack – making us one of the most secure blockchains in existence today.
Q: What if someone hack one authenticated miner?
A: In the unlikely event that hackers were to succeed in breaching the security of an authenticated miner, the authentication key of that miner would not be accessible to the hacker in itself because of the unique way our blockchain team has come up to shield it from being discovered. The hacker, therefore, would not be able to affect the network because they would be unable to mine sequential blocks. And because of the uniqueness of the Moderated Blockchain, our moderating network layer would immediately detect the breach and rescind the rights of that miner.
Q: What if two or more hacks?
A: If one hack is highly unlikely due to two security breaches being necessary, two hacks are exponentially harder to achieve. But if it were to happen, the keys they may have stolen limit the hash rate of the miner. This means that if somebody were to take the code and run it on the highest-powered mining machine, it would still produce the same hash rate as it would in the lowest powered mining rig making it impossible for them to control over 50% of the network’s hash rate because of the way our Moderated Blockchain is set up. This also ensures the NGOs can run an Electroneum mining node on hardware with which their tech teams are familiar.
Q: How do you judge how responsible the miners are?
A: We look at how many blocks they are mining compared to how many blocks they are expected to mine going by the hashing power allotted to them.
Q: What happens after a mining node has been shut off?
A: Simply, it stops mining and needs to be restarted and then retype or re-enter the authentication key.
NEW TRUSTED MINERS
Q: Who are the miners?
A: We have chosen vocational NGOs as trusted mining partners who are also trustworthy organisations. We have done due diligence to ensure they are transparent, honest, and aligned with our vision to work within the developing world. We have made sure that they also want to accompany us in our goal to expand our Gig Fair project, which is aimed at helping provide people in the poorest regions of the world with an income opportunity and the opportunity to attain skills and means to generate an income that will empower them to live better. The NGOs that we’ve selected are trusted brands that have proven track records in helping people. Cryptocurrency is at its early stages and is met with skepticism by many people and entities around the world as well as in the developing world. So, our mission is to educate these NGOs about cryptocurrency so that they can, in turn, convey the message of the benefits of crypto, particularly ETN, to people in the developing world and make them feel more confident to use crypto, which ultimately will help spur crypto’s mass adoption.
Q: Why are these NGOs anonymous (initially)?
A: Because they themselves have decided to remain anonymous over concerns of how cryptocurrency could reflect on their organisations.
Q: What do NGOs do for the project?
A: They validate the blocks and rewarded for this and take the proceeds to help people?
Q: Where are the NGO’s and Charities located?
A: For now, locations of the NGOs are being kept undisclosed for security reasons until they themselves decide they if they want to make public that information.
Q: Five million ETN or about $22,500 at the then valuation was paid out daily before. How much is being paid out now?
A: Because the block rewards have been reduced by a whopping 75% creating scarcity which is a good thing to extend longevity, currently just over 1.2 million ETN or about $5,300 is being paid out in block rewards.
Q: Can we see who is mining and how much they are mining?
A: The block rewards will still be visible on the blockchain explorer and those with sufficient technical knowledge will be able to see the different miners signing blocks with different mining keys. But Electroneum is not forcing the NGOs to reveal their identities because they are still going through a learning curve and when they understand crypto and experience the benefits first-hand, they will more than likely reveal themselves.
Q: Where are their mining rigs stored?
A: We have suggested that mining rigs be run in the cloud to ensure uptime; however, ultimately, it is up to the NGOs themselves decide where their equipment is hosted. It is essential to point out that we have reduced energy and hash rates by a millionfold as such a standard rack-mounted server that you would find in any business today is sufficient to run an Electroneum mining node.
Q: Who setup their mining rigs?
A: At this stage, all mining rigs have been set up by the Electroneum team as this is the first foray for NGOs into the cryptocurrency mining space.
Q: Who is managing their mining rigs?
A: The mining rigs are self-sufficient and need very little if any, technical support, however, a moderator layer monitors the new Moderated Blockchain to ensure the mining rigs are online and benefit the network. If we were to detect a mining rig going offline, we would inform the NGO and provide assistance where required.
Q: How will NGOs use their ETN (from mining blocks)?
A: The NGOs, initially, almost certainly convert the ETN to USD or other currencies because they have always used fiat to deliver their donations and assistance because that is what they are used to doing. Once they see the benefits and value of ETN they may start using it on the ground to amongst the people they help. We have deliberately targeted NGOs that are in regions that were we are imminent to enable airtime top-ups directly with ETN from within the Electroneum mobile app.
FUTURE PROGRESS & CORPORATE PARTNERSHIPS
Q: How will this initiative affect corporate partnerships moving forward?
A: Because the network is more secure, Electroneum as a platform will be more attractive as a platform in the eyes of potential partners.
Q: How will it help to grow our on-the-ground initiatives?
A: The NGO’s we’re working with will be in the regions we’re targeting on the ground. So, this will be contributing to the eco-system, the NGO’s will be able to spend their ETN on education through the Gig Economy too.
Q: Can new NGOs apply to mine?
A: I If you know or are an NGO that focuses on vocational training and education, and that it is within the developing world, then we would love to hear from you via our community forum.
Q: How will the 75% reduction in the block reward benefit the community?
A: Reducing the block rewards means ETN ‘s expands the longevity of the coin by making ETN scarcer and thus lengthening the duration of the emission of coins.
submitted by xterest27 to Electroneum [link] [comments]

AN INTRODUCTION TO DIGIBYTE

DigiByte

What are cryptocurrencies?
Cryptocurrencies are peer to peer technology protocols which rely on the block-chain; a system of decentralized record keeping which allows people to exchange unmodifiable and indestructible information “coins,” globally in little to no time with little to no fees – this translates into the exchange of value as these coins cannot be counterfeit nor stolen. This concept was started by Satoshi Nakamoto (allegedly a pseudonym for a single man or organization) whom described and coded Bitcoin in 2009.
What is DigiByte?
DigiByte (DGB) is a cryptocurrency like Bitcoin. It is also a decentralized applications protocol in a similar fashion to Neo or Ethereum.
DigiByte was founded and created by Jared Tate in 2014. DigiByte allows for fast (virtually instant) and low cost (virtually free) transactions. DigiByte is hard capped at 21 billion coins which will ever be mined, over a period of 21 years. DigiByte was never an ICO and was mined/created in the same way that Bitcoin or Litecoin initially were.
DigiByte is the fastest UTXO PoW scalable block-chain in the world. We’ll cover what this really means down below.
DigiByte has put forth and applied solutions to many of the problems that have plagued Bitcoin and cryptocurrencies in general – those being:
We will address these point by point in the subsequent sections.
The DigiByte Protocol
DigiByte maintains these properties through use of various technological innovations which we will briefly address below.
Why so many coins? 21 Billion
When initially conceived Bitcoin was the first of a kind! And came into the hands of a few! The beginnings of a coin such as Bitcoin were difficult, it had to go through a lot of initial growth pains which following coins did not have to face. It is for this reason among others why I believe Bitcoin was capped at 21 million; and why today it has thus secured a place as digital gold.
When Bitcoin was first invented no one knew anything about cryptocurrencies, for the inventor to get them out to the public he would have to give them away. This is how the first Bitcoins were probably passed on, for free! But then as interest grew so did the community. For them to be able to build something and create something which could go on to have actual value, it would have to go through a steady growth phase. Therefore, the control of inflation through mining was extremely important. Also, why the cap for Bitcoin was probably set so low - to allow these coins to amass value without being destroyed by inflation (from mining) in the same way fiat is today! In my mind Satoshi Nakamoto knew what he was doing when setting it at 21 million BTC and must have known and even anticipated others would take his design and build on top of it.
At DigiByte, we are that better design and capped at 21 billion. That's 1000 times larger than the supply of Bitcoin. Why though? Why is the cap on DigiByte so much higher than that of Bitcoin? Because DigiByte was conceived to be used not as a digital gold, nor as any sort of commodity, but as a real currency!
Today on planet Earth, we are approximately 7.6 billion people. If each person should want or need to use and live off Bitcoin; then equally split at best each person could only own 0.00276315789 BTC. The market cap for all the money on the whole planet today is estimated to have recently passed 80 trillion dollars. That means that each whole unit of Bitcoin would be worth approximately $3,809,523.81!
$3,809,523.81
This is of course in an extreme case where everyone used Bitcoin for everything. But even in a more conservative scenario the fact remains that with such a low supply each unit of a Bitcoin would become absurdly expensive if not inaccessible to most. Imagine trying to buy anything under a dollar!
Not only would using Bitcoin as an everyday currency be a logistical nightmare but it would be nigh impossible. For each Satoshi of a Bitcoin would be worth much, much, more than what is realistically manageable.
This is where DigiByte comes in and where it shines. DigiByte aims to be used world-wide as an international currency! Not to be hoarded in the same way Bitcoin is. If we were to do some of the same calculations with DigiByte we'd find that the numbers are a lot more reasonable.
At 7.6 billion people, each person could own 2.76315789474 DGB. Each whole unit of DGB would be worth approximately $3,809.52.
$3,809.52
This is much more manageable and remember in an extreme case where everyone used DigiByte for everything! I don't expect this to happen anytime soon, but with the supply of DigiByte it would allow us to live and transact in a much more realistic and fluid fashion. Without having to divide large numbers on our phone's calculator to understand how much we owe for that cup of coffee! With DigiByte it's simple, coffee cost 1.5 DGB, the cinema 2.8 DGB, a plane ticket 500 DGB!
There is a reason for DigiByte's large supply, and it is a good one!
Decentralisation
Decentralisation is an important concept for the block-chain and cryptocurrencies in general. This allows for a system which cannot be controlled nor manipulated no matter how large the organization in play or their intentions. DigiByte’s chain remains out of the reach of even the most powerful government. This allows for people to transact freely and openly without fear of censorship.
Decentralisation on the DigiByte block-chain is assured by having an accessible and fair mining protocol in place – this is the multi-algorithm (MultiAlgo) approach. We believe that all should have access to DigiByte whether through purchase or by mining. Therefore, DigiByte is minable not only on dedicated mining hardware such as Antminers, but also through use of conventional graphics cards. The multi-algorithm approach allows for users to mine on a variety of hardware types through use of one of the 5 mining algorithms supported by DigiByte. Those being:
Please note that these mining algorithms are modified and updated from time to time to assure complete decentralisation and thus ultimate security.
The problem with using only one mining algorithm such as Bitcoin or Litecoin do is that this allows for people to continually amass mining hardware and hash power. The more hash power one has, the more one can collect more. This leads to a cycle of centralisation and the creation of mining centres. It is known that a massive portion of all hash power in Bitcoin comes from China. This kind of centralisation is a natural tendency as it is cheaper for large organisations to set up in countries with inexpensive electricity and other such advantages which may be unavailable to the average miner.
DigiByte mitigates this problem with the use of multiple algorithms. It allows for miners with many different kinds of hardware to mine the same coin on an even playing field. Mining difficulty is set relative to the mining algorithm used. This allows for those with dedicated mining rigs to mine alongside those with more modest machines – and all secure the DigiByte chain while maintaining decentralisation.
Low Fees
Low fees are maintained in DigiByte thanks to the MultiAlgo approach working in conjunction with MultiShield (originally known as DigiShield). MultiShield calls for block difficulty readjustment between every single block on the chain; currently blocks last 15 seconds. This continuous difficulty readjustment allows us to combat any bad actors which may wish to manipulate the DigiByte chain.
Manipulation may be done by a large pool or a single entity with a great amount of hash power mining blocks on the chain; thus, increasing the difficulty of the chain. In some coins such as Bitcoin or Litecoin difficulty is readjusted every 2016 blocks at approximately 10mins each and 2mins respectively. Meaning that Bitcoin’s difficulty is readjusted about every two weeks. This system can allow for large bad actors to mine a coin and then abandon it, leaving it with a difficulty level far too high for the present hash rate – and so transactions can be frozen, and the chain stopped until there is a difficulty readjustment and or enough hash power to mine the chain. In such a case users may be faced with a choice - pay exorbitant fees or have their transactions frozen. In an extreme case the whole chain could be frozen completely for extended periods of time.
DigiByte does not face this problem as its difficulty is readjusted per block every 15 seconds. This innovation was a technological breakthrough and was adopted by several other coins in the cryptocurrency environment such as Dogecoin, Z-Cash, Ubiq, Monacoin, and Bitcoin Gold.
This difficulty readjustment along with the MultiAlgo approach allows DigiByte to maintain the lowest fees of any UTXO – PoW – chain in the world. Currently fees on the DigiByte block-chain are at about 0.0001 DGB per transaction of 100 000 DGB sent. This depends on the amount sent and currently 100 000 DGB are worth around $2000.00 with the fee being less than 0.000002 cents. It would take 500 000 transactions of 100 000 DGB to equal 1 penny’s worth. This was tested on a Ledger Nano S set to the low fees setting.
Fast transaction times
Fast transactions are ensured by the conjunctive use of the two aforementioned technology protocols. The use of MultiShield and MultiAlgo allows the mining of the DigiByte chain to always be profitable and thus there is always someone mining your transactions. MultiAlgo allows there to a greater amount of hash power spread world-wide, this along with 15 second block times allows for transactions to be near instantaneous. This speed is also ensured by the use DigiSpeed. DigiSpeed is the protocol by which the DigiByte chain will decrease block timing gradually. Initially DigiByte started with 30 second block times in 2014; which today are set at 15 seconds. This decrease will allow for ever faster and ever more transactions per block.
Robust security + The Immutable Ledger
At the core of cryptocurrency security is decentralisation. As stated before decentralisation is ensured on the DigiByte block chain by use of the MultiAlgo approach. Each algorithm in the MultiAlgo approach of DigiByte is only allowed about 20% of all new blocks. This in conjunction with MultiShield allows for DigiByte to be the most secure, most reliable, and fastest UTXO block chain on the planet. This means that DigiByte is a proof of work (PoW) block-chain where all transactional activities are stored on the immutable public ledger world-wide. In DigiByte there is no need for the Lightning protocol (although we have it) nor sidechains to scale, and thus we get to keep PoW’s security.
There are many great debates as to the robustness or cleanliness of PoW. The fact remains that PoW block-chains remain the only systems in human history which have never been hacked and thus their security is maximal.
For an attacker to divert the DigiByte chain they would need to control over 93% of all the hashrate on one algorithm and 51% of the other four. And so DigiByte is immune to the infamous 51% attack to which Bitcoin and Litecoin are vulnerable.
Moreover, the DigiByte block-chain is currently spread over 200 000 plus servers, computers, phones, and other machines world-wide. The fact is that DigiByte is one of the easiest to mine coins there is – this is greatly aided by the recent release of the one click miner. This allows for ever greater decentralisation which in turn assures that there is no single point of failure and the chain is thus virtually un-attackable.
On Chain Scalability
The biggest barrier for block-chains today is scalability. Visa the credit card company can handle around 2000 transactions per second (TPS) today. This allows them to ensure customer security and transactional rates nation-wide. Bitcoin currently sits at around 7 TPS and Litecoin at 28 TPS (56 TPS with SegWit). All the technological innovations I’ve mentioned above come together to allow for DigiByte to be the fastest PoW block-chain in the world and the most scalable.
DigiByte is scalable because of DigiSpeed, the protocol through which block times are decreased and block sizes are increased. It is known that a simple increase in block size can increase the TPS of any block-chain, such is the case with Bitcoin Cash. This is however not scalable. The reason a simple increase in block size is not scalable is because it would eventually lead to some if not a great amount of centralization. This centralization occurs because larger block sizes mean that storage costs and thus hardware cost for miners increases. This increase along with full blocks – meaning many transactions occurring on the chain – will inevitably bar out the average miner after difficulty increases and mining centres consolidate.
Hardware cost, and storage costs decrease over time following Moore’s law and DigiByte adheres to it perfectly. DigiSpeed calls for the increase in block sizes and decrease in block timing every two years by a factor of two. This means that originally DigiByte’s block sizes were 1 MB at 30 seconds each at inception in 2014. In 2016 DigiByte increased block size by two and decreased block timing by the same factor. Perfectly following Moore’s law. Moore’s law dictates that in general hardware increases in power by a factor of two while halving in cost every year.
This would allow for DigiByte to scale at a steady rate and for people to adopt new hardware at an equally steady rate and reasonable expense. Thus so, the average miner can continue to mine DigiByte on his algorithm of choice with entry level hardware.
DigiByte was one of the first block chains to adopt segregated witness (SegWit in 2017) a protocol whereby a part of transactional data is removed and stored elsewhere to decrease transaction data weight and thus increase scalability and speed. This allows us to fit more transactions per block which does not increase in size!
DigiByte currently sits at 560 TPS and could scale to over 280 000 TPS by 2035. This dwarfs any of the TPS capacities; even projected/possible capacities of some coins and even private companies. In essence DigiByte could scale worldwide today and still be reliable and robust. DigiByte could even handle the cumulative transactions of all the top 50 coins in coinmarketcap.com and still run smoothly and below capacity. In fact, to max out DigiByte’s actual maximum capacity (today at 560 TPS) you would have to take all these transactions and multiply them by a factor of 10!
Oher Uses for DigiByte
Note that DigiByte is not only to be used as a currency. Its immense robustness, security and scalability make it ideal for building decentralised applications (DAPPS) which it can host. DigiByte can in fact host DAPPS and even centralised versions which rely on the chain which are known as Digi-Apps. This application layer is also accompanied by a smart contract layer.
Thus, DigiByte could host several Crypto Kitties games and more without freezing out or increasing transaction costs for the end user.
Currently there are various DAPPS being built on the DigiByte block-chain, these are done independently of the DigiByte core team. These companies are simply using the DigiByte block-chain as a utility much in the same way one uses a road to get to work. One such example is Loly – a Tinderesque consensual dating application.
DigiByte also hosts a variety of other platform projects such as the following:
The DigiByte Foundation
As previously mentioned DigiByte was not an ICO. The DigiByte foundation was established in 2017 by founder Jared Tate. Its purpose is as a non-profit organization dedicated to supporting and developing the DigiByte block-chain.
DigiByte is a community effort and a community coin, to be treated as a public resource as water or air. Know that anyone can work on DigiByte, anyone can create, and do as they wish. It is a permissionless system which encourages innovation and creation. If you have an idea and or would like to get help on your project do not hesitate to contact the DigiByte foundation either through the official website and or the telegram developer’s channel.
For this reason, it is ever more important to note that the DigiByte foundation cannot exist without public support. And so, this is the reason I encourage all to donate to the foundation. All funds are used for the maintenance of DigiByte servers, marketing, and DigiByte development.
DigiByte Resources and Websites
DigiByte
Wallets
Explorers
Please refer to the sidebar of this sub-reddit for more resources and information.
Edit - Removed Jaxx wallet.
Edit - A new section was added to the article: Why so many coins? 21 Billion
Edit - Adjusted max capacity of DGB's TPS - Note it's actually larger than I initially calculated.
Edit – Grammar and format readjustment
Hello,
I hope you’ve enjoyed my article, I originally wrote this for the reddit sub-wiki where it generally will most likely, probably not, get a lot of attention. So instead I've decided to make this sort of an introductory post, an open letter, to any newcomers to DGB or for those whom are just curious.
I tried to cover every aspect of DGB, but of course I may have forgotten something! Please leave a comment down below and tell me why you're in DGB? What convinced you? Me it's the decentralised PoW that really convinced me. Plus, just that transaction speed and virtually no fees! Made my mouth water!
-Dereck de Mézquita
I'm a student typing this stuff on my free time, help me pay my debts? Thank you!
D64fAFQvJMhrBUNYpqUKQjqKrMLu76j24g
https://digiexplorer.info/address/D64fAFQvJMhrBUNYpqUKQjqKrMLu76j24g
submitted by xeno_biologist to Digibyte [link] [comments]

Mining Approach Strategy.

Mining activities will be continuously monitored and switched between coins when the difficulty and success rates fluctuate. The ultimate goal will be to maintain maximum efficiency at all times.Mining equipment will be regularly resold and replaced. There will be a split between suppliers of ASIC miners to prevent any kind of centralisation and to increase diversity available for customers to utilise. MinedBlock will evaluate whether mining as part of an existing mining pool or being reliant on our own hash rate output is the most effective to produce crypto assets.
HardwareMinedBlock will utilise a mixture of ASIC units alongside Custom Built GPU Mining Rigs.The initial plan is to split investment between the equipment below:Bitmain Antminer S9 –BTC/BCH (BCHABC)Bitmain Antminer L3++ –LTCBitmain Antminer D3 –DashCustom built 8 GPU rigs –ETH/ETCWe reserve the right to change this initial selection at the point of purchase based on price and depending on the availability of newer and more efficient hardware
LocationElectricity costs and climate are the key considerations for choice of location as well as considering the political attitude of hosting Countries towards crypto mining, the last thing we would want isto build a mining farm somewhere and then it become a restricted activity. The first phase of our Mining Farm build will be using ASIC Bitcoin and Bitcoin Cash mining units as they are built ready to use. These will be hosted from a facility in Iceland where the climate and electricity costs are favourable.Our GPU mining rigs will be built, configured and run from the United Kingdom initially to ensure they are reliable and easy to manage remotely before moving them to a facility in either Iceland, Canada or Sweden.
Adapting to ChangeMining cryptocurrency isn’t as simple as ‘plug and play and walk away’, the team at MinedBlock will constantly be monitoring our mining activities and evaluating where we could switch the miners to an alternative currency to increase profitability. Upcoming updates and forks will also be monitored to ensure we are always ready to adapt.
https://mindblock.io
Bounty0x Username: Osoname
submitted by EbubeS to ico [link] [comments]

MinedBlock - Mining As A Service

MinedBlock - Mining As A Service

https://preview.redd.it/2nz3e8z2xpv21.png?width=306&format=png&auto=webp&s=1d839e275e476dc6cb79b022d04fcb172da952bf
MinedBlock offers the opportunity for investors to purchase our ST20 Security Token which is a digital asset backed by a corresponding Preference Share in MinedBlock Holding Limited (the Special Purpose Vehicle) that enables holders to receive a revenue share produced by our mining farms. Collectively, MBTX token holders will own 95% of the Special Purpose Vehicle and the associated costs and revenue so, therefore, will receive the revenue share each month based on the profit generated. Revenue will be shared respectively and equally between all token holders on a ‘payout per token’ model.
Strategy Mining activities will be continuously monitored and switched between coins when the difficulty and success rates fluctuate. The ultimate goal will be to maintain maximum efficiency at all times. Mining equipment will be regularly resold and replaced. There will be a split between suppliers of ASIC miners to prevent any kind of centralisation and to increase diversity available for customers to utilise. MinedBlock will evaluate whether mining as part of an existing mining pool or being reliant on our own hash rate output is the most effective to produce coins.
Hardware MinedBlock will utilise a mixture of ASIC token units alongside Custom Built GPU Mining Rigs.
Locations Electricity costs and climate are the key considerations for choice of location as well as considering the political attitude of hosting Countries towards crypto mining, the last thing we would want it to build a mining farm somewhere and then it become a restricted activity. The first phase of our Mining Farm build will be using ASIC Bitcoin and Bitcoin Cash mining units as they are built ready to use. These will be hosted from a facility in Iceland where the climate and electricity costs are favourable. Our GPU mining rigs will be built, configured and run from the United Kingdom initially to ensure they are reliable and easy to manage remotely before moving them to a facility in either Iceland, Canada or Sweden.
Adapting to Change Mining cryptocurrency isn’t as simple as ‘plug and play and walk away’, the team at MinedBlock will constantly be monitoring our mining activities and evaluating where we could switch the miners to an alternative currency to increase profitability. Upcoming updates and forks will also be monitored to ensure we are always ready to adapt.
Token info
Ticker: MBTX Type: Utility-token Token price in USD: 1 MBTX = 0.15 USD Accepted currencies: BTC BCH LTC ETH Bonus program: Pre Sale Stage 1: 90% discount Pre Sale Stage 2: 85% discount Token distribution: 91.25% - Pre-Sale 3.75% - Founders 3.37% - Retained 1.25% - Airdrop 0.38% - Airdrop Funds allocation: 80% - Mining Equipment 10% - Datacenter Build 10% - Reserve
MinedBlock ICO Roadmap
Q1 2018 / Project Concept Developed
Q2 2018 / Whitepaper Written Company Name and Branding Defined Q3 2018 / Website and Social Channels Launched / Whitepaper Released / Token Sale Announced / Token Sale Starts / Airdrop and Bounty Schemes Revealed
Q4 2018 / Initial ASIC and GPU Orders Placed / Datacenter Spaces Agreed
Q1 2019 / Mining Farm Builds / Mining Begins / Exchange Listings
Q2 2019 / Token Sale Ends / Final ASIC and GPU Orders Placed
Q3 2019 / Revenue Distribution Begins / Token Buy Back Starts
Q4 2019 and Beyond / Solar Farm Feasibility Study / Hosted Mining Service / TBC

Website: https://www.minedblock.io/
Whitepaper: https://www.minedblock.io/assets/MinedBlockWhitepaper.pdf
Bounty0x ID: ecamli
submitted by ecamli to BountyICO [link] [comments]

The unique Strategy, hardware and location of minedblock

Mining activities will be continuously monitored and switched between coins when the difficulty and success rates fluctuate. The ultimate goal will be to maintain maximum efficiency at all times. Mining equipment will be regularly resold and replaced. There will be a split between suppliers of ASIC miners to prevent any kind of centralisation and to increase diversity available for customers to utilise. MinedBlock will evaluate whether mining as part of an existing mining pool or being reliant on our own hash rate output is the most effective to produce crypto assets. Hardware MinedBlock will utilise a mixture of ASIC units alongside Custom Built GPU Mining Rigs. The initial plan is to split investment between the equipment below: Bitmain Antminer S9 – BTC/BCH (BCHABC) Bitmain Antminer L3++ – LTC Bitmain Antminer D3 – Dash Custom built 8 GPU rigs – ETH/ETC We reserve the right to change this initial selection at the point of purchase based on price and depending on the availability of newer and more efficient hardware Location Electricity costs and climate are the key considerations for choice of location as well as considering the political attitude of hosting Countries towards crypto mining, the last thing we would want is to build a mining farm somewhere and then it become a restricted activity. The first phase of our Mining Farm build will be using ASIC Bitcoin and Bitcoin Cash mining units as they are built ready to use. These will be hosted from a facility in Iceland where the climate and electricity costs are favourable. More details https://www.minedblock.io/ and https://www.minedblock.io/assets/MinedBlockWhitepaper.pdf Bountyox username: abolaji
submitted by Abolaji11 to CryptocurrencyICOs [link] [comments]

MinedBlock--Mining Approach

Strategy

Mining activities will be continuously monitored and switched between coins when the difficulty and success rates fluctuate. The ultimate goal will be to maintain maximum efficiency at all times. Mining equipment will be regularly resold and replaced. There will be a split between suppliers of ASIC miners to prevent any kind of centralisation and to increase diversity available for customers to utilise. MinedBlock will evaluate whether mining as part of an existing mining pool or being reliant on our own hash rate output is the most effective to produce crypto assets.

Hardware

MinedBlock will utilise a mixture of ASIC units alongside Custom Built GPU Mining Rigs.
The initial plan is to split investment between the equipment below:
Bitmain Antminer S9 – BTC/BCH (BCHABC)
Bitmain Antminer L3++ – LTC
Bitmain Antminer D3 – Dash
Custom built 8 GPU rigs – ETH/ETC
We reserve the right to change this initial selection at the point of purchase based on price and depending on the availability of newer and more efficient hardware

Location

Electricity costs and climate are the key considerations for choice of location as well as considering the political attitude of hosting Countries towards crypto mining, the last thing we would want is to build a mining farm somewhere and then it become a restricted activity. The first phase of our Mining Farm build will be using ASIC Bitcoin and Bitcoin Cash mining units as they are built ready to use. These will be hosted from a facility in Iceland where the climate and electricity costs are favourable. Our GPU mining rigs will be built, configured and run from the United Kingdom initially to ensure they are reliable and easy to manage remotely before moving them to a facility in either Iceland, Canada or Sweden.

Adapting to Change

Mining cryptocurrency isn’t as simple as ‘plug and play and walk away’, the team at MinedBlock will constantly be monitoring our mining activities and evaluating where we could switch the miners to an alternative currency to increase profitability. Upcoming updates and forks will also be monitored to ensure we are always ready to adapt.
https://www.minedblock.io/assets/MinedBlockWhitepaper.pdf
https://www.minedblock.io/
bounty0x ID: hllelek33
submitted by umttt1 to Crypto_General [link] [comments]

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
submitted by Swissprivatebanker to Bitcoin [link] [comments]

Grayblock - INT Thearchy Node Candidate

https://grayblock.network
https://medium.com/@Grayblock
https://medium.com/@Graytrain
https://twitter.com/@Grayblock_
Who we are
We are a diverse group with backgrounds in Research and Technology, Engineering, Server Administration and Supply Chain, with a combined 7 years of experience in mining/node building and maintenance to carry us into the next era of blockchain technology. We are a team that shares a passion for blockchain technology and it’s application in the future.
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We see the Internet of Things (IoT) as being the ultimate manifestation of this technology. With IoT growing at an exponential rate through the next decade and beyond, we wish to be an enabler for mass adoption by making this technology easy to understand and by helping those that wish to get involved.
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Why INT
We see INT as the leader in this space by marrying the vision of world-encompassing connectivity with the power of blockchain in a framework that enables the fast-paced and diverse ecosystem of IoT. Their Correct-By-Construction, use case driven approach to building a network to support the intended uses and needs of the future IoT ecosystem sets them apart from the others. We hope to be a part of the revolution by supporting the network, getting involved and working together to make a different world.
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Why we want to be involved
We believe in blockchain technology and it’s impact in our future. We believe IoT to be the ultimate culmination of this, with it becoming integral to the very fabric of our society.
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What therefore lies before us is a revolution by which everything from financial systems to data communication will transition to immutable and trustless blockchains. We want to be a part of the change.
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Bitcoin and blockchain technology, in general, have become more widely known words in the world recently but an understanding of what it is past the get-rich-quick speculative nature of them is lagging behind. We realize that a major hurdle in real adoption is people understanding the technology, making it not a fringe subject but something everyone can understand and be a part of.
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Our plan to support
Community
In addition to supporting the network as a Thearchy node and block producer, we see an equally important responsibility in educating people about INT, IoT and blockchain technology in general, sharing our passion with others.
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We plan to become more active in the space, speaking at community blockchain meet-ups and cryptocurrency conferences both locally and abroad to bring attention to what INT is doing and to build an understanding of the technology they offer. We will also continue to provide easy to understand articles like we currently produce here and herewhile also maintaining the core of what got us here, our love for helping people build mining rigs and set up nodes. We want to get people involved, help them understand the technology and spread the excitement for the future.
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Hardware
Thearchy — Block Producing Node
We do not anticipate heavy use on the network on launch as most users generate private keys and transfer tokens into the network. During this time, we will be running our initial Thearchy block producing node in a cloud-based environment in North America. This gives us the ability to quickly scale and satisfy the immediate demands of the network. As we do additional software and hardware testing and the requirements become better understood, we will move to assembling purpose-built servers for the future co-located data center to support the INT ecosystem.
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Cloud-based environment:
OS: Linux
vCPU: 8
Memory: 32 GB
Blockchain Storage: 640 GB
IPFS Storage: 1 TB
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Again, these specs are just for launch and the initial testing. Once the network has established itself and the true computing needs have been determined, we will build dedicated servers locally to support the network.
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Backup Nodes
To ensure that we are ready for any disruptive incidents, we will maintain a secondary, stand-by Thearchy node mirroring the live one, ready to be launched at a moments notice. At launch, these will be maintained as cloud-based environments matching the above specifications but hosted by different providers to ensure full redundancy in the event of service downtime. Once we move to bare metal servers, we will maintain this redundancy by geographical separation.
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Validator Nodes
We also plan to launch several publicly available, non-block producing validator nodes to help support the network. These will also be cloud-based to have the ability to separate them geographically while still being able to control them. This enables us to serve the network globally.
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Security
Keeping in mind the network securing responsibility these nodes will have, we will employ the highest security standards available on all nodes, block producing and not. .
Using public key authentication along with physical two-factor authentication, access to the servers will be restricted to only those with the private keys, both physically and digitally.
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Developing Tools
In the future, we would like to get involved in the development of the INT ecosystem and build tools to make the interaction with the network easier. These may be snapshot tools to assist in token/ICO distribution, wallets, Dapps or blockchain explorers to add value and give back to those that are working to make a different world.
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We will be releasing a roadmap with a detailed phasing plan as we get a more detailed timeline on INT’s release. Keep an eye on our website for more information on our work with the INT network.
If you would like to support us in supporting the INT network, vote for us! INT1NNTpagq79v9ZHJBSGmSevEtsUXSGnLJvX
submitted by Graytrain to INT_Chain [link] [comments]

Burstcoin Is A Robust And Unique Cryptocurrency: Proof of Capacity (PoC) Ensures Decentralization, Energy Efficiency, And Low Barrier To Entry

http://www.cypherpunklabs.com/burstcoin-is-a-robust-and-unique-cryptocurrency-proof-of-capacity-poc-ensures-decentralization-energy-efficiency-and-low-barrier-to-entry/
Decentralization is perhaps the fundamental reason why Bitcoin has been successful. Since Bitcoin is decentralized, its network cannot be controlled by any government, corporation, or other centralized entity, and this is why Bitcoin still exists to this day rather than being shutdown a long time ago. Bitcoin achieves decentralization through its Proof of Work (PoW) algorithm, where miners around the world cryptographically hash transactions into blocks and receive block rewards for their efforts, and nodes constantly check to ensure that all confirmed transactions are following consensus rules.
The major caveat with PoW is it is energy intensive. This has especially become a problem due to the rapid rise in Bitcoin’s price long term, which has resulted in an arms race of sorts to amass the most hashing power in order to obtain the most mining profits. Indeed, the Bitcoin hash rate has risen orders of magnitude, from MH/s, to GH/s, to TH/s, to PH/s, and now up to its all-time high so far of 84 EH/s. This represents exponentially more computing resources and energy consumption.
This is a problem for two reasons. First off, there is a very high barrier to entry for new users to mine Bitcoin. It requires thousands of dollars of mining equipment to make any worthwhile profit from mining Bitcoin.
Secondly, Bitcoin mining consumes a massive amount of energy worldwide. It is estimated by Digiconomist that Bitcoin mining uses 73.12 TWh of energy annually, equivalent to the electricity consumption of the entire country of Austria, or 0.33% of total global electricity consumption. This releases nearly 35 Megatons of Carbon Dioxide annually, contributing to global warming, aside from other environmental damage caused by burning fossil fuels and manufacturing mining equipment. Digiconomist may be an overestimate of Bitcoin’s environmental impact, but it is somewhere in the ballpark.
Numerous alternative cryptocurrencies have tried to be environmentally friendly via using the Proof of Stake (PoS) algorithm, but this sacrifices decentralization, since all the voting rights end up concentrated into the hands of developers and major bag holders.
This is where Proof of Capacity (PoC), formerly called Proof of Space, comes in. Instead of using specialized Bitcoin mining equipment, PoC simply uses hard drive space to mine cryptocurrency. Burstcoin (BURST) is the #1 PoC cryptocurrency. Bitcoin HD (BHD) is another PoC cryptocurrency, but it has a highly centralized supply with 3.1 million out of 5 million total coins in the hands of the developers, so it is nonsensical to choose BHD considering that BURST has a highly decentralized supply. The problem with a centralized supply is it can cause a coin’s value to collapse long term due to developers dumping on the market.
In order to start mining BURST, a user simply allocates part of their hard drive, and this area of hard drive is plotted. Plotting is a 1-time hashing cycle where the hard drive is filled with cryptographic hashes via the Shabal cryptographic algorithm. The node also has to synchronize with the BURST blockchain before mining. Fortunately, the BURST blockchain is less than 9 GB, versus the Bitcoin blockchain which is nearly 240 GB.
Once plotting and synchronization is complete the user can begin mining. During each mining round the plot file is searched to find the correct cryptographic hash for the block, and when the correct hash is found the user receives a block reward. Essentially, the hashes in the plot file can be thought of as lottery tickets, and the bigger the size of the plot, meaning the more hard drive space dedicated to mining BURST, the more likely it is to find the correct hash.
Like with Bitcoin mining, users can join pools so that even if they have a small amount of hard drive space they can still earn BURST at a steady pace.
Since BURST’s PoC algorithm simply reads a hard drive versus the intense computational work of Bitcoin’s PoW, BURST mining uses a negligible amount of electricity. It is estimated that each BURST transaction consumes 0.0024 KWh of electricity, versus about 1,000 KWh used for each Bitcoin transaction.
Aside from being far more environmentally friendly, electricity costs are negligible for BURST miners, so BURST miners earn nearly 100% profit. This opens the door for users with any level of technology to profitably mine BURST, including personal computers and technically even cell phones. Compare this to Bitcoin where mining with even a powerful personal computer is impossible.
Ultimately, BURST’s energy efficiency makes the barrier to entry very low, a user simply needs to have hard drive space to mine BURST. This results in the BURST network being highly decentralized.
Notably, miners do not have to buy any special equipment to mine BURST, they just use spare hard drive space that was sitting unused, versus Bitcoin mining where specialized hardware that costs thousands of dollars is required. Bitcoin mining rigs often become obsolete with time, and also have no other use besides Bitcoin mining, whereas hard drive space used for BURST mining never becomes obsolete and can easily be freed up and used for storage by deleting the plot file.
In summary, BURST is one of the most unique and fundamentally robust cryptocurrencies due to its PoC algorithm, which ensures decentralization while simultaneously guaranteeing energy efficiency and a low barrier for miner entry.
submitted by turtlecane to burstcoin [link] [comments]

IOTA, and When to Expect the COO to be Removed

Hello All,
This post is meant to address the elephant in the room, and the #1 criticism that IOTA gets which is the existence of the Coordinator node.
The Coordinator or, COO for short, is a special piece of software that is operated by the IOTA Foundation. This software's function is to drop "milestone" transactions onto the Tangle that help in ordering of Transactions.
As this wonderful post on reddit highlights (https://www.reddit.com/Iota/comments/7c3qu8/coordinator_explained/)
When you want to know if a transaction is verified, you find the newest Milestone and you see if it indirectly verifies your transaction (i.e it verifies your transaction, or if verifies a transaction that verifies your transaction, or if it verifies a transaction that verifies a transaction that verifies your transaction, etc). The reason that the Milestones exist is because if you just picked any random transaction, there's the possibility that the node you're connected to is malicious and is trying to trick you into verifying its transactions. The people who operate nodes can't fake the signatures on Milestones, so you know you can trust the Milestones to be legit.
The COO protects the network, that is great right?
No, it is not.
The coordinator represents a centralized entity that draws the ire of the concurrency community in general is the reason behind a lot of FUD.
Here is where things get dicey. If you ask the IOTA Foundation, the last official response I heard was
We are running super computer simulations with the University of St. Peteresburg to determine when that could be a possibility.
This answer didn't satisfy me, so I've spent the last few weeks thinking about the problem and think I can explain the challenges that the IOTA Foundation are up against, what they expect to model with the super computer simulations, and what ultimately what my intuition (backed up by some back of the napkin mathematics) tells me that outcomes will be.
In order to understand the bounds of the problem, we first need to understand what our measuring stick is.
Our measuring stick provides measurements with respect to hashed per second. A hash, is a mathematical operation that blockchain (and DAG) based applications require before accepting your transaction. This is generally thought of as an anti-spam measure used to protect a blockchain network.
IOTA and Bitcoin share some things in common, and one of those things is that they both require Proof of Work in order to interact with the blockchain.
In IOTA, a single hash is completed for each Transaction that you submit. You complete this PoW at the time of submitting your Transaction, and you never revisit it again.
In Bitcoin, hashes are guessed at by millions of computers (miners) competing to be the first person to find solve the correct hash, and ultimately mint a new block.
Because of the competitive nature of the bitcoin mining mechanism, the bitcoin hashrate is a sustained hashrate, while the IOTA hashrate is "bursty" going through peaks and valleys as new transactions are submitted.
Essentially, IOTA performance is a function of the current throughput of the network. While, bitcoin's performance is a delicate balance between all collective miners, the hashing difficulty with the goal of pegging the block time to 10 minutes.
With all that said, I hope it is clear that we can come to the following conclusion.
The amount of CPU time required to compute 1 Bitcoin hash is much much greater then the amount of CPU time required to compute 1 IOTA hash.
T(BtcHash) >> T(IotaHash)
After all, low powered IOT devices are supposed to be able to execute the IOTA hashing function in order to submit their own transactions.
A "hash" has be looked at as an amount of work that needs to be completed. If you are solving a bitcoin hash, it will take a lot more work to solve then an IOTA hash.
When we want to measure IOTA, we usually look at "Transactions Per Second". Since each Transaction requires a single Hash to be completed, we can translate this measurement into "Hashes Per Second" that the entire network supports.
IOTA has seen Transactions Per Second on the order of magnitude of <100. That means, that at current adoption levels the IOTA network is supported and secured by 100 IOTA hashes per second (on a very good day).
Bitcoin hashes are much more difficult to solve. The bitcoin network is secured by 1 Bitcoin hash every 10 minutes (which adjust's it's difficult over time to remain pegged at 10 minutes). (More details on bitcoin mining: https://www.coindesk.com/information/how-bitcoin-mining-works/)
Without the COOs protection, IOTA would be a juicy target destroy. With only 100 IOTA hashes per second securing the network, that means that an individual would only need to maintain a sustained 34 hashes per second in order to completely take over the network.
Personally, my relatively moderate gaming PC takes about 60 seconds to solve IOTA Proof of Work before my transaction will be submitted to the Tangle. This is not a beastly machine, nor does it utilize specialized hardware to solve my Proof of Work. This gaming PC cost about $1000 to build, and provides me .0166 hashes per second.
**Using this figure, we can derive that consumer electronics provide hashing efficiency of roughly $60,000 USD / Hash / Second ($60k per hash per second) on the IOTA network.
Given that the Tx/Second of IOTA is around 100 on a good day, and it requires $60,000 USD to acquire 1Hash/Second of computing power we would need 34 * $60,000 to attack the IOTA network.
The total amount of money required to 34% the IOTA project is $2,040,00
This is a very small number. Not only that, but the hash rate required to conduct such an attack already exists, and it is likely that this attack has already been attempted.
The simple truth is, that due to the economic incentive of mining the hash rate required to attack IOTA is already centralized, and are foaming at the mouth to attack IOTA. This is why the Coordinator exists, and why it will not be going anywhere anytime soon.
The most important thing that needs to occur to remove the COO, is that the native measurement of transactions per second (which ultimately also measures the hashes per second) need to go drastically up in orders of magnitude.
If the IOTA transaction volume were to increase to 1000 transactions per second, then it would require 340 transactions per second from a malicious actor to compromise the network. In order to complete 340 transactions per second, the attacker would need now need the economic power of 340 * $60,000 to 34% attack the IOTA network.
In this hypothetical scenario, the cost of attacking the IOTA network is $20,400,000. This number is still pretty small, but at least you can see the pattern. IOTA will likely need to hit many-thousand transactions per second before it can be considered secure.
What we have to keep in mind here, is that IOTA has an ace up their sleeve, and that Ace is JINN Labs and the ternary processor that they are working on.
Ultimately, JINN is the end-game for the IOTA project that will make the removal of the COO a reality.
In order to understand what JINN is, we need to understand a little bit about computer architecture and the nature of computational instruction in general.
A "processor" is a piece of hardware that performs micro calculations. These micro calculations are usually very simple, such as adding two numbers, subtracting two numbers, incrementing, decrementing, and the like. The operation that is completed (addition, subtraction) is called the opcode while the numbers being operated on are called the operands.
Traditional processors, like the ones you find in my "regular gaming PC" are binary processors where both the opcode and operands are expected to be binary numbers (or a collection of 0s and 1s).
The JINN processor, provides the same functionality, mainly a hardware implementation of micro instructions. However, it expects the opcodes and operands to be ternary numbers (or a collection of 0s, 1s, and 2s).
I won't get into the computational data density of base 2 vs. base 3 processors, nor will get I get into the energy efficiency of those processors. What I will be getting into however, is how certain tasks are simpler to solve in certain number systems.
Depending on what operations are being executed upon the operands, performing the calculation in a different base will actually reduce the amount of steps required, and thus the execution time of the calculation. For an example, see how base 12 has been argued to be superior to base 10 (https://io9.gizmodo.com/5977095/why-we-should-switch-to-a-base-12-counting-system)
I want to be clear here. I am not saying that any 1 number system is superior to any other number system for all types of operations. I am simply saying, that there exist certain types of calculations that are easier to perform in base 2, then they are performed in base 10. Likewise, there are calculations that are vastly simpler in base 3 then they are in base 2.
The IOTA POW, and the algorithms required to solve for it is one of these algorithms. The IOTA PoW was designed to be ternary in nature, and I suggest that this is the reason right here. The data density and electricity savings that JINN provides are great, but the real design decision that has led to base 3 has been that they can now manufacture hardware that is superior at solving their own PoW calculations.
Binary emulation, is when a binary processor is asked to perform ternary operations. A binary processor is completely able to solve ternary hashes, but in order to do so it will need to emulate the ternary micro instructions at a higher level in the application stack from away from the hardware.
If you had access to a base 3 processor, and needed perform a base 3 addition operation you could easily ask your processor to natively perform that calculation.
If all you have access to, is a base 2 processor, you would need to emulate a base 3 number system in software. This would ultimately result in a higher number of instructions passing through your processor, more electricity being utilized, more time to complete.
Finally, let's review these figures.
It costs roughly $60k to acquire 1hash per second in BASE 2 consumer electrictronic. It costs roughly $2M to acquire enough BASE 2 hash rate to 34% the IOTA network.
JINN, will be specifically manufactured hardware that will solve base 3 hashes natively. What this likely means, is that $1 spent on JINN will be much more effective at acquiring base 3 hash rate then $1 spent on base 2 hash rate.
Finally, with bitcoin and traditional block chain applications there lies economic incentive to amass mining hardware.
It first starts out by a miner earning income from his mining rig. He then reinvests those profits on additional hardware to increase his income.
Eventually, this spirals into an arms raise where the players that are left in the game have increasingly available resources up until the point that there are only a handful of players left.
This economic incentive, creates a mass centralization of computing resources capable of being misused in a coordinated effort to attack a cryptocurrency.
IOTA aims to break this economic incentive, and the centralization that is causes. However, over the short term the fact that the centralization of such resources does exist is an existential peril to IOTA, and the COO is an inconvenient truth that we all have to live with.
Due to all the above, I think we can come to the following conclusions:
  1. IOTA will not be able to remove the COO until the transactions per second (and ultimately hashrate) increase by orders of magnitude.
  2. The performance of JINN processors, and their advantage of being able to compute natively on ternary operands and opcodes will be important for the value ratio of $USD / hash rate on the IOTA network
  3. Existing mining hardware is at a fundamental disadvantage to computing base 3 hashes when compared to a JINN processor designed specifically for that function
  4. Attrition of centralized base 2 hash power will occur if the practice of mining can be defeated and the income related to it. Then the incentive of amassing a huge amount of centralized computing power will be reduced.
  5. JINN processors, and their adoption in consume electronics (like cell phones and cars) hold the key in being able to provide enough "bursty" hash rate to defend the network from 34% attacks without the help of the COO.
  6. What are the super computer simulations? I think they are simulating a few things. They are modeling tip selection algorithms to reduce the amount of unverified transactions, however I think they may also be performing some simulations regarding the above calculations. JINN processors have not been released yet, so the performance benchmarks, manufacturing costs, retail costs, and adoption rates are all variables that I cannot account for. The IF probably has much better insight into all of those figures, which will allow them to better understand when the techno-economic environment would be conducive to the disabling of the COO.
  7. The COO will likely be decentralized before it is removed. With all this taken into account, the date that the COO will be removed is years off if I was forced to guess. This means, that decentralizing the COO itself would be a sufficient stop-gap to the centralized COO that we see today.
submitted by localhost87 to Iota [link] [comments]

Ravencoin usage adoption.

I quote an excerpt from the Ravencoin white paper.
''A young child, in a country that permits it, could create a token that represents a lemonade stand business. Suppose she creates 10,000 LEMONADE tokens. These tokens could be used to raise funds for the lemonade stand at AUD$0.01 per LEMONADE token allowing her to raise AUD$100 to build her business. These tokens can be sold and transferred easily by the owners. Suppose the lemonade stand does extraordinarily well because the neighborhood is invested in this entrepreneurial project. Now our fictional eight-year-old wants to reward those who believed in her project. With one command, she can send profits - denominated in any value RVN may have - to LEMONADE token holders. There could even be new holders of LEMONADE tokens that she’s never met. The built-in ease of use should allow anyone, anywhere in the world to do so on a mobile phone, or computer running Windows, Mac, or Linux. ''
Bruce Fenton Tron Black www.ravencoin.org 3rd April 2018
This example sold Ravencoin to me. There are currently three primary ways to get Ravencoin.
  1. Mine it.
Pro's: You are helping to secure the network by futher distributing the hashrate and you get rewarded with RVN for you contribution.
Cons: Accesibility to hardware (GPU's) and the technical knowledge required to mine succesfully, limits this to a growing but niche group consisting mostly of hodlers.
  1. Buying it:
Pro's: You can get lots quickly and at custom prices.
Con's: Buying crypto from an exchange is an intimidating process for the average person. Most people who are willing to go through the trouble to understand the in's, out's, fees and movements of crypto exchange markets are crypto enthusiasts and speculators.
  1. Earning it:
People who are willing to go all in and say we accept Bitcoin are already on top of the exchange trading game and probably have a mining rig or two running in their basement. So you have to already understand and be sold on the future of crypto to go as far as Overstock and announce it's acceptance of alternate forms of revenue.
Pro's: You are spreading awareness.
Con's: Very few people will actually spend their crypto to buy your services and or products.
There is however one more way to get crypto and that is when you get given it.
Giving Crypto as a gift is one of the best ways to introduce people to the technology. When you give tokens and coins away the recipient is obliged to download a wallet and learn about seed phrases and private keys. Suddenly they are aware of the market value of the assets they hold.
Giving RVN away is the best way to spread interest, awareness and ultimately adoption. The question we enthusiasts have to answer in creative ways is how can we give RVN away profitably.
When that question is answered for each of us in our own personal capacities we as a crypto community would have jumped one of the next biggest hurdles.
How to give RVN away profitably?
I have already answered this question for myself.
How would you answer it?
submitted by Kiwarian to Ravencoin [link] [comments]

A 14-year-old's experience with Bitcoin

First-time poster here, don’t bully me, apologies for the potentially atrocious formatting :) TL;DR at the end
So in the wake of Bitcoin’s explosive rise in value and media attention, I’ve been encouraged by others to share my experience over the past few years as a miner. Here's my story (it's kinda long, you've been warned)

Humble Beginnings

It all started almost three years ago in the beginning of 2015 when Bitcoin flew under my radar. Looking into it, I admittedly wasn’t drawn in because of the decentralisation or the anonymous payments, I was hooked on the idea that anyone could get their hands on some just by running a program and leaving it to do its own thing. I know, how shallow of me. But the idea of making even a bit of money without ‘any work’ was convincing enough for 11-year-old me to do more digging into the matter.
To my disappointment, I soon found out that the era of mining Bitcoins with a PC’s CPU or GPU was long obsolete and instead it was all ASICs at that point.
So that summer, for my twelfth birthday, I got a little ASIC machine for €60, an Antminer U3. This little thing took up less space than a graphics card but could mine at 60 GH/s. Because, at the time, I didn’t have a controller device that could be kept up and running all day long so it could run the program that mined Bitcoin using the U3, I went ahead and got a Raspberry Pi. After setting up the Pi and installing all the necessary stuff (took an awfully long time), I connected it to AntPool and plugged the U3 in. Two days past and the mining pool sent the first Bitcoin I ever received to my wallet (I was using Blockchain.info). It was just 30 cents worth of BTC but I felt a bit of a rush because I was earning a bit of money through this completely new thing and the idea of that was thrilling.
Let’s back up for a second. I just used the term ‘earning’ as if I was profiting, and naive me 2 years ago was no different. In reality, I was at first oblivious to the fact that I was most likely LOSING money overall because of how much energy that little sucker was taking in. But, I was comforted thinking that using that machine was just a practical way of learning about this modern currency and that the loss of several cents’ worth of energy was acceptable in the name of education and learning.
Fast forward ten months to the wonderful summer of 2016. I had recently turned 13 and the Antminer U3 had been running on and off throughout. Various pauses and breaks in mining would be observed, as I had to manually get everything up and running after frequent breaks in the Internet connection. You’d expect my newly-turned-teenage brain to lose interest in Bitcoin as it does with many other gimmicks, but – even surprising myself – I miraculously didn’t. Good thing I maintained interest thinking about it now, not so good at the time for my parents. Why do I say this? I felt like it was time to get a little upgrade in my hardware.

Getting an upgrade

Days passed with me comparing every ASIC miner I could at that price point. It was then I set my eyes upon the Antminer S7 (same folks who did my U3, nice). I had put it up against a plethora of other miners and I figured the S7 was my best bet; the thing costs only about 10 times that of my U3 but could run at 4.73 TH/s, almost 80 times as powerful. The only problem being its power consumption was at 1300 watts, which would put a massive dent in the electricity bill and eliminate any profit I would make. Fortunately, I had a secret weapon up my sleeve – or rather my mum did. She had rented out an office outside our apartment where she would keep files and paperwork. The office’s electricity bill was a flat rate as far as I’m aware and it ended up being my saving grace because it virtually got rid of the “oh no I’m actually going to be losing money because of how much electricity I’m eating up” factor, making this whole hardware upgrade viable.
After convincing my parents, they finally agreed to shell out the requested amount, with the initial investment being paid back with time. I went to a local Bitcoin vendor and purchased 1 BTC for about $665 in cash (sigh yes, I know. $665 dollars). Shortly after, I used about 0.9 BTC to purchase the Antminer S7 and a 1600W power supply for a grand total of $600. The products would be made and shipped from China so I was definitely in for a wait.
A month passes and the package arrives at last. I connected all the wires from the power supply into the S7 and – with great anticipation – I plugged it into the wall to start its first ever run. And what do you know? An extremely loud and high-pitched whirring sound blasted out from the fans on both the power supply as well as the S7. After killing the thing, I questioned my choices. I couldn’t dare put that thing anywhere near my mum’s office in the event it drive everyone in the building absolutely nuts. I was at a loss. However, I soon recovered from my temporarily debilitated state and got working on a solution.
The first idea that came to my mind: change the fans. The stocks fans were by Evercool and spun at around 3000 RPM. The power supply used a small, robust fan that looked like a cube that must’ve spun at extremely high speeds judging by how high the sound it produced was. I got my parents to give me some more funding so I could acquire the replacement fans and I did. Bust. After installation and testing, none of the fans would work. I managed to configure the S7 to connect to my Antpool account and the machine would manage mining for several minutes running at peak performance but ultimately be automatically cut off because of how hot the machine was getting (I’m talking about 80 degrees Celsius kinda hot in that thing). The fans got refunded and I was back to the drawing board.
After combing through some forum posts and videos, I came across this video and a forum post in which people have their mining rigs placed inside a ventilated, muffled cabinet. Undertaking a project like this would be time-consuming and risky but I had no better ideas so I decided to go through with the idea anyway.
Firstly, I sought out a cabinet with suitable dimensions. I managed to get just what I needed at a second-hand IKEA shop. Great. Secondly, I went ahead and acquired some sound-absorbing acoustic foam from a local provider. Fantastic. Finally I had to get a ventilation system going within the cabinet, otherwise, all the hot air would roast the machine alive in there in a bloody mess. With the help of my dad, we found a pair cabinet fans on the Internet that were close to silent but could circulate the air well enough.
Eventually, all the materials came and, with the help of my parents, put everything together. The process took quite long time and we had a couple hiccups along the way, but we got it done and it came out pretty nice.
The moment of truth came and, to my relief, it ran so much quieter than without the cabinet. It was nowhere near silent but it reduced the noise a great deal. Soon after, I got the thing into the office and set everything up from there. Unfortunately, I was forced to underclock it because you could still hear the machine’s whining from outside the thin office door. Gunning the hashrate down about 25% to 3.7TH/s, I could lower the fan speed without risking the machine burning up. Sure, I wasn’t getting the full potential of the machine but I didn’t complain because electricity was not an issue there and it was still a whole lot better than my U3. With it up and running, I could leave it there, periodically checking to see if it was mining on Antpool.

The aftermath

In the months that followed, I was getting a solid $2.5 worth of BTC on daily basis. Half a year later, May of 2017, I had accumulated a satisfactory $600. I thought, “At this rate, I’d be able to pay my parents’ investment back in a few months” (the total investment came close to $900). Bitcoin had risen to over $1500 so I was already over the moon at that point because of how well everything was going. Little did I know…
I hit 0.5 BTC midway through September this year. The price of BTC had dropped after a sudden rise to $5000, but I couldn’t have asked for more. Although I possessed only half the amount of BTC I paid for the machine, its value was over twice that of the initial investment. I thought BTC would level off at around $4000 but nope.
In the month of October, the price skyrocketed. Since September, I had only mined 0.017 BTC but the value was already over $3000. It was just a matter of selling it, but I decided to hodl. Good thing I did.
As of November 5, I have approximately 0.52 BTC mined in total from my S7, valued at $4000. If I were to sell it right now, I’d have a profit of over $3100. And as for my miner, it’s churning out 0.0006 BTC daily, sounds like nothing but it’s still the equivalent of $5 today and I couldn’t be happier, at least with the miner and Bitcoin.
You remember that $665 for 1 BTC that I mentioned earlier? In hindsight, it would’ve been such a better idea to just keep that one Bitcoin and not do anything with it until today (in the interest of making much more money), as I’d theoretically have upwards of $7000. The idea of that still haunts me sometimes if I dwell on it too long but knowing that I’m in possession of an already hefty amount, the pain of it had numbed slightly. It’s not all doom and gloom for me from the exponential increase in Bitcoin’s value, however. Those first $0.3 payments from my humble little U3 all those years ago now are now the equivalent of over $6 today!
Bitcoin and everything it encompasses has been and still is a journey of discovery and an adventure. Looking back, starting with a modest €60 Antminer U3 to having a sum of Bitcoin equivalent to two extremely high-end gaming rigs (first thing I could think of as a comparison, sorry) has been something I can’t really describe. Through the course of the past few years, I’ve learned more about technology, I’ve unexpectedly gotten insight into economics and business and – of course – I’ve made a lot of money (if I decide to stop hodling that is).
Also, props to my parents for keeping an open mind throughout, I know some parents would be horrified at their kids being involved in something that has been used in some less-than-savoury ways and it's great knowing mine have been supportive all the way.
TL;DR got into Bitcoin mining 3 years ago at age 11 with an Antminer U3 that ran at 60 GH/s, got an Antminer S7 (4.73TH/s) and built a sound-muffling, ventilated cabinet for it. Am sat here today with $3000 profit if I decide to sell right now.
submitted by xx_riptide_xx to Bitcoin [link] [comments]

Mining Approach Strategy

Mining activities will be continuously monitored and switched between coins when the difficulty and success rates fluctuate. The ultimate goal will be to maintain maximum efficiency at all times.Mining equipment will be regularly resold and replaced. There will be a split between suppliers of ASIC miners to prevent any kind of centralisation and to increase diversity available for customers to utilise. MinedBlock will evaluate whether mining as part of an existing mining pool or being reliant on our own hash rate output is the most effective to produce crypto assets.
HardwareMinedBlock will utilise a mixture of ASIC units alongside Custom Built GPU Mining Rigs.The initial plan is to split investment between the equipment below:Bitmain Antminer S9 –BTC/BCH (BCHABC)Bitmain Antminer L3++ –LTCBitmain Antminer D3 –DashCustom built 8 GPU rigs –ETH/ETCWe reserve the right to change this initial selection at the point of purchase based on price and depending on the availability of newer and more efficient hardware
LocationElectricity costs and climate are the key considerations for choice of location as well as considering the political attitude of hosting Countries towards crypto mining, the last thing we would want isto build a mining farm somewhere and then it become a restricted activity. The first phase of our Mining Farm build will be using ASIC Bitcoin and Bitcoin Cash mining units as they are built ready to use. These will be hosted from a facility in Iceland where the climate and electricity costs are favourable.Our GPU mining rigs will be built, configured and run from the United Kingdom initially to ensure they are reliable and easy to manage remotely before moving them to a facility in either Iceland, Canada or Sweden.
Adapting to ChangeMining cryptocurrency isn’t as simple as ‘plug and play and walk away’, the team at MinedBlock will constantly be monitoring our mining activities and evaluating where we could switch the miners to an alternative currency to increase profitability. Upcoming updates and forks will also be monitored to ensure we are always ready to adapt. https://www.minedblock.io/ Bounty 0x Username: Olowookorun
submitted by lanrecool to ICOAnalysis [link] [comments]

DIY Bitcoin Mining: Software (part 2) - YouTube How to build a Mining Rig - Teil 1 - Die Hardware Deutsch CryptoCurrency Mining Rig Part 2, Hardware Assembly HASHRATE of the 8 x 480 8GB Mining Rig! - YouTube How To Turn Your 10 Year Old Computer Into A Mining Rig ...

Software and Hardware Matter in ETH Mining. There’s a lot more to successful mining than the quality of a GPU. In terms of hardware, we recommend that you consider the following specs for your Ethereum mining rig: At least four GBs of RAM; A riser cable for every card; A case that features top of the line airflow to keep your system from ... Bitcoin Mining Rigs – What is it and what does it entail? A bitcoin mining rig is a computer system used for mining bitcoins. The rig might be a dedicated miner where it was procured, built and operated specifically for mining or it could otherwise be a computer that fills other needs, such as performing as a gaming system and is used to mine only on a part-time basis. Financial philosophy aside, the hardware part of the bitcoin equation is simple. Despite their well-earned reputation for gobbling up GPUs, the rest of a mining rig’s layout is very lean. You ... How to Build Your Own Mining Rig. The best mining rig hardware consists of ASIC chips, however, these are virtually impossible to be built at home. In fact, professional manufacturers are struggling to build them fast enough for their consumers, so that can give you an idea how complex the manufacturing process is. Instead, this guide will help you build a simpler, GPU-based mining rig. Step 1 ... Hardware; Gaming; Cars; Ultimate Bitcoin Mining Rigs. 1:46 pm December 7, 2017 By Julian Horsey. Share. Tweet. Pin. Email. Even though bitcoin has blasted passed a value of $15,000 today up from ...

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DIY Bitcoin Mining: Software (part 2) - YouTube

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