Questions tagged [decentralization]
systems, such as Bitcoin, that lack any single central authority to validate their operations and which have to use other means to determine the validity of operations.
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Can the two biggest bitcoin mining pools lock out all others?
I just noticed that the two biggest bitcoin mining pools already have more than 52.5% of the hashing power (as of 11/12/23 Foundry USA had 27,7% and AntPool 24.88%) and am wondering about the ...
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Is it possible to mine bitcoin in a trustless way with a Pool?
Some context
As far as I understand there are two ways in which an individual (or a company) can mine Bitcoin:
Solo: if one has enough hashrate to secure a block often enough to pay for the ...
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What's causing the number of utxos to increase so quickly?
I was using gettxoutsetinfo a couple weeks ago (maybe a bit longer, can't remember) and the total number of txouts was something like 115 million. Now it's sitting at around 124 million.
What's up ...
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Permission-less Side-Chain Concepts?
Pretty much every major side-chain concept seems to imply a permission governed finality system which is not ideal long-term for lots of hopefully obvious reasons.
Is there any good explanation as for ...
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Total Decentralization
I am fairly new to Bitcoin and do not know the ins and out of using the Electrum wallet(i was recommended this wallet by bitcoin.org). I see on the internet that there are several methods by which I ...
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Bitcoin Mining Pools Centralization
I read a couple of articles and watched some YouTube videos, but couldn't find a super convincing argument for why centralized mining pools are not a huge issue. I get that from a Game Theory ...
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How does stratum v2 work?
I want to know how much independence miners have when they join a pool. Do the individual miners create the block headers and choose which transactions to include in their block or is the block just ...
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Mining with multiple pools
Miners pool their hashpower together to reduce payout variance. The larger the pool, the lower the variance, which unfortunately incentivizes centralization. Today, over 50% of the total hashrate is ...
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Could centralisation of miners lead to censorship?
Censorship meaning: Only government approved addresses are allowed to have their transactions added to the blockchain.
Scenario: Miners are centralised within a geographic boundary with significantly ...
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How would faster blocks cause mining centralization?
I've heard that faster blocks would cause mining to become more centralized. How do these things fit together?
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Understanding Bitcoin Validator Node Decentralization
I am hoping to better understand the difference between miner nodes and validator nodes and the decentralization risks (if any) posed by one party controlling X% of all validator nodes.
I have been ...
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Can bitcoin protocol be changed to add economic incentives to validating nodes?
We all want more decentralized bitcoin network and more people to run nodes. However, as we know that things are driven more by market economics rather than philanthropic or feel good factors. Similar ...
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What's the relationship between Bittorrent and Bitcoin?
I know both implementations make use of decentralization, but is Bitcoin using any technology that was developed by Bittorrent?
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What makes the bitcoin network decentralized? is it the nodes or the miners or both?
I wonder what makes the bitcoin network decentralized?
Do nodes participate in making the network decentralized? or is it just the miners and all about the hash power to take over the network aka 51%&...
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How can 51% of nodes validate blocks while some are inactive?
Suppose a node doesn't have an internet connection. Since it would not receive the broadcast of other nodes, does the blockchain then propagate without the validation of that node? (That is, is it
51% ...
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Suppose crypto is adopted globally, and 100 years pass. Where would 100 years worth of global transactions/smart contracts be stored? [closed]
To my novice understanding the blockchain is stored on all participating computers in the network. Is this to say each computer has the entire chain downloaded onto the hard drive? Or do we merely ...
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How exactly does bitcoin code change happen in a decentralized system [duplicate]
I have long been under the assumption that bitcoin was just a "protocol" or a "contract“. Different nodes run their own implementation, on different hardwares. Some are efficient, some ...
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Can satoshi nakamoto change bitcoin
If I understand correctly, Satoshi Nakamoto (or any cryptocurrency creator) can change things in Bitcoin, like supply limit, halving, etc.
My question is: How is Bitcoin decentralized if Satoshi ...
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How does the blockchain resolve arbitration issues?
I understand that a bitcoin wallet is nothing but a transaction record performed on the block chain.
How are transaction details updated in the decentralised block chain?
In a centralised system a ...
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Why does every "defi" thing only support garbagecoins and never Bitcoin?
I swear, I seriously feel like I've already gone insane and I can't even trust my senses at this point. I've been chewing through website after website listed as "defi", repeatedly finding ...
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Why does "Hodl Hodl" not seem to... support Bitcoin? [closed]
After listening to this podcast, I got extremely excited for Hodl Hodl: https://www.youtube.com/watch?v=hJe7LIZ6cdI
But then I went to their site and see this: https://lend.hodlhodl.com/offers/lend
...
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Assuming a decentralized exchange like this, wouldn't this basic logic guarantee profits every single day?
Let's say that Bisq releases their API (which seems imminent) tomorrow. Now, we can automate talking to Bisq to trade between Bitcoin and whatevercoin.
If I do the following:
Manually put 0.01 BTC ...
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Does Sovryn really not allow you to use it if you use Bitcoin Core?
https://live.sovryn.app/
This is apparently what Sovryn consists of. Not a downloadable application, but a website. It's very confusing, and so is its FAQ.
When I click the "Engage Wallet" ...
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How exactly does "Lend at Hodl Hod" work?
I've read though this carefully: https://lend.hodlhodl.com/faq/basics
It is extremely confusing.
It seems as if, to borrow 1000 USDT or whatever, I have to first register an account (e-mail address on ...
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Is there such a thing as a decentralized stock market desktop application, in concept similar to Bisq?
Please note that I've already visited thousands upon thousands of slick websites with fuzzy claims about being "the future of money" and I consider them all to be vaporware at best, and ...
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How can I earn an income from my bitcoins without revealing my identity or relinquishing control of my bitcoins? [duplicate]
I have some Bitcoin. I don't want to part with them, but I need an income.
I'm trying to have it so that, somehow, my Bitcoins generate a small sum monthly in fiat, to my bank account.
While going ...
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What stops an attacker from crippling the Bitcoin network?
An individual (or government) who wants to bring down the Bitcoin network could conceivably broadcast a ton of junk/illegitimate transactions to the network thereby consuming the bandwidth and ...
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Why is Bitcoin not moving to an ASIC-resistant Proof of Work algorithm?
Bitcoin uses a Proof of Work algorithm that makes it the perfect victim of ASIC mining. As a result, hash power is not very decentralized (more than 50% of Bitcoin's hash power is concentrated in ...
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Does spy mining negate the harm caused by big blocks on decentralization?
In the question Do larger blocks make it harder for smaller miners to compete? Why? there are some reasons given for why larger blocks hurt smaller pools. Is this still the case with spy mining?
Spy ...
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Is there any way to trade without photo id before Bisq introduces its API?
I know that the Bisq developers are "working on it", but v1.5 was just released today and still not a sign of it. I'm growing ever more impatient.
While I like Bisq, and understand that it ...
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Bitcoin users limit
How bitcoin handle users limit if only 4000 transactions in every 10 minutes ? Let's say I transfer 2 bitcoin to Anuj account then how much time maximum it will take to reflect in Anuj's account and ...
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Is there actually such a thing as "blockchains" being used right now for actual things? [closed]
In the last few years, I've heard "blockchain" and "blockchain 2.0" and many other such buzzwords repeated so many times that I'm beginning to wonder if I've missed out on ...
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Can you have a cryptocurrency with a single source of truth?
Can you have a cryptocurrency that's based on TRUST? (how dare I use this dirty word haha)
Everyone who participates in the system agrees to trust this 1 party only, because they find them trustworthy....
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Automated decentralized exchange between bitcoin and similar currency? [closed]
I want to create a cryptocurrency that's backed by bitcoin, that's running on it's own different blockchain and consensus algorithm.
Is it possible have a decentralized exchange between bitcoin and ...
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Can one consider that the interest of other actors/stakeholders would change something about the concept of "blockchain"?
I am new to the Bitcoin world and am trying to get an overview within a research project. I see that Bitcoin was born out of a certain motivation to decentralize money and that decentralization, open ...
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How do miners communicate in Bitcoin/ Decentralized Network?
1.)If there is no central authority maintaining database how miners differentiate among other miners.
2.)Do they have there own database which have details(Mac/IP address) of neighbouring miners .
3....
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Why is it important for individuals to be able to run their own nodes?
I understand that the more people that can run their own node supports decentralization, but if miners are sufficiently decentralized what is the threat of users not being able to run their own nodes?
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Why is there no decentralized Bitcoin trading API?
Since nobody has answered me the last 30 times when I asked for decentralized Bitcoin trading APIs, I can pretty safely conclude that it just doesn't exist. So that's why I now ask why this is.
Don't ...
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What are the chances bitcoin big mining pools to unite and do 51% attack?
Looking at this bitcoin hash rate distribution chart (https://www.blockchain.com/en/pools), it only takes 3-4 mining pools to unite and do a 51% attack.
With this possibility, how can people still ...
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Is proof-of-work required in Bitcoin?
It seems that the rationale behind the proof-of-work requirement in Bitcoin is that it creates trust in a decentralized trustless network by:
helping to reach consensus on which version of the ...
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Looking for whitepapers on pool-resistence mining
I have seen several cryptocurrencies list the feature of decentralization of mining through ASIC-resistance and pool-resistance. However, I have not yet found any whitepapers which explain how the ...
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Can someone please explain how Lightning paths are working and what effect large centralized hubs have?
Can someone please explain how Lightning paths are working and what effect large centralized hubs have?
Dear community,
I have read some stuff about lightning and i am really interested to ...
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Proof for "Is an immutable, decentralized blockchain possible without economical incentives?"
Bitcoin is immutable because of economical incentives. Those who are able to 51% the network can't do it, because it'll result in the value of the currency to drop tremendously, which causes waste of ...
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Is there any benefits to a distributed computing architecture outside of cryptocurrencies?
I was recently talking to a German start-up that was in an accelerator programme. They are building a product which is a distributed database that they are proposing will have efficiency benefits over ...
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Removing "hub-and-spoke" property of Lightning Network?
Lightning Network is based on this idea: "Near-zero fee transactions with hub-and-spoke micropayments" (Link to the article) proposed by Peter Todd.
An article entitled: "Mathematical Proof That the ...
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How does Bitcoin use its communication protocol and its database model?
In terms of Bitcoin's communication protocol, how does Bitcoin allow nodes to communicate between each other?
Is Bitcoin's communication protocol the same as IPFS(InterPlanetary File System) and if ...
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Implementing an "ad-hoc-like network of payment channels" on top of Bitcoin network?
If we define an ad-hoc network as follows:
"An ad hoc network is a network that is composed of individual devices
communicating with each other directly." [1]
ad-hoc networks do not rely on ...
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Is routing approach of Bitcoin Lighning Network "decentralized" and "trust-less"?
From the Bitcoin Lightning Network:
it is possible to find a path across the network similar to routing
packets on the internet.
Is routing approach of Bitcoin Lighning Network performed in a "...
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Why can't an ISP ban access to a blockchain network? [duplicate]
I read that blockchain sits on top of the internet and is decentralised. We still have to access the blockchain network via an ISP. Without ISP, we can't access the internet so why can't an ISP block ...
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Is there a decentralized zk-SNARK (zero-knowledge Succinct Non-Interactive ARgument of Knowledge)?
Normally, in zk-SNARK, we need to generate two public keys: one for prover and one for verifier. However, the input parameter of this generator algorithm must be secret, meaning that it must be hidden ...
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