26

Here's the basic idea of blind signing in Chaumian e-cash: Let's suppose that a central issuer (Chaumian e-cash is centralised) has an account in my name with a value of 10 dollars. In order to "withdraw" this money as 1-dollar "bills" I begin by generating ten random serial numbers, each long enough that I can be reasonably sure no one else will generate ...


24

Colored coins are a method to track the origin of bitcoins, so that a certain set of coins can be set aside and conserved, allowing a party to acknowledge them in various ways. Such coins can be used to represent arbitrary digital tokens, such as stocks, bonds, smart property and so on. The colored coins protocol is decentralized just like Bitcoin, but the ...


18

NooShare is an idea for: a decentralised ledger similar to Bitcoin with the novel feature that its proofs of work are iterations of essentially arbitrary Markov-Chain Monte-Carlo (MCMC) chains, the scheduling of which can be purchased using the currency itself. It is a novel economic basis for sharing fallow computational resources. I don't know ...


10

Have you tried understanding why you have that desire? It might help you understand more about what makes you tick. You might like to try mining Litecoins, or even on the Bitcoin Testnet. Or, you could try some Bitcoin mining with the Eligius pool, which from memory will pay out any amount after 2 weeks (whereas most pools have a minimum payout). If you can ...


10

If scripts were Turing-complete, you could construct a fairly short script that took an extremely long time to run (a la the Busy Beaver) or contained an infinite loop. This would tend to result in a denial of service against everyone on the network, when they tried to verify the transaction. And there would be no general way to tell whether a script ...


9

Assume for a second that we found a proof of work algorithm that had all of the good properties of sha256, but was also useful for SETI and maintaining world peace. Now suppose a group of miners collectively have more than 51% of the hashing power. In which of the following scenarios are they more likely to collude to double spend via a 51% attack: A) When ...


9

A Bitcoin or Litecoin address consists of: a prefix byte a 160-bit hash of a public key a 32-bit checksum all base-58 encoded. Bitcoin and Litecoin use different prefix bytes; this is why most Bitcoin addresses start with 1, while most Litecoin addresses start with L. When you use a Bitcoin client to try to send money to an address, it should perform a ...


9

99% of altcoins claim an "innovation" that is broken or unproven. I would say that the first thing to do is look at unique codebases that aren't based on Bitcoin, which basically means (besides Bitcoin) you should look at Ethereum, Ripple, NXT, Monero, BitShares. Then if you're bored, PeerCoin / NuBits and Lisk. Once you are done with those you can look at ...


8

Some discussions around how to make it more useful https://en.bitcoin.it/wiki/Intrinsic_worth_brainstorming https://bitcointalk.org/index.php?topic=11834.0


8

Those running a miner against a pool don't. The pool operator would need both. As stated in the comments below, normal users of the alternate system will not need the bitcoin chain but will need the alternate chain, and normal users of bitcoin will need the bitcoin chain but not the alternate chain. Once the block is mined, nobody cares what other chains ...


8

What you are describing there is a client that is a hybrid of Bitcoin and something else. For instance there is nothing to stop you starting ManishCoin and writing a ManishBitcoinSuperClient. If you can get enough people to believe in ManishCoin then it becomes a useful currency.


8

Nothing stops this at all. You can start your own right now, removing the 21M limit or adopting whatever rules you want, and mine as many coins as you like. Likewise, you can sit down at your printer, and print lots of $100 bills with your own portrait, and invent whatever rules you want as to how they can be spent. The question in both cases is whether ...


8

This is really asking about basic trading economics: if I have some new product X, what price does it have? I can set a price and see if anyone buys it. If not, I might lower the price or auction it to see what someone might pay for it. That is the starting value, but it doesn't really mean much as it hasn't been field-tested (so to speak). If others think ...


8

But then the next problem is transaction order and validity to prevent double spending. I don't understand completely why a timestamp can't just be included for every broadcasted transaction, and the transaction could have the correct, universally agreed upon time, and each ledger gets sorted chronologically. Is this because it requires a centralized system ...


7

Well, Litecoin's main aim is to make mining easier for the common man. The problem with pure SHA-256 mining is that it is not very hard to design hardware that can perform mining at an astonishing speed. We can see this with the currently very much ongoing rise of the ASIC mining industry. Since scrypt is more complex when it comes to hardware - scrypt not ...


7

Proof of burn simply means you have provably destroyed coins. The only way to destroy coins in a proven way is to send them to an address which is improbable to have been generated from a private key, and thus can not be spent. Chancecoin is the first I've seen to use this way to generate their coins. The announcement for Chancecoin can be found here: https:...


7

Contrary to the name the proof of work used in Litecoin is significantly more difficult than SHA256 to verify (it slows sync times noticeably), while simultaneously not achieving it's goals of being only able to be mined on a CPU, or a GPU depending when you read the pitch on their website. It offers very little resistance to being mined on a GPU or ASIC, in ...


7

A very large majority of these altcoins are essentially scams. There is a cottage industry that takes a coin, changes something minor (name, logo), and releases it with great fanfare, enticing people to buy it, allowing the forker to unload their typically worthless coins. As Нонн Болдырев said, there is a small list of worthwhile coins. I'd leave Ripple ...


6

You are quite right that there are some drawbacks to reusing a bitcoin address, while at the same time it can be inconvenient to generate a new address each time. I think you'll find its not possible to make an untraceable payment system where the money supply is limited. If money creation is controlled (as with bitcoin), nodes need a way to trace the ...


6

In addition to Lohoris's answer, the reason that litecoin was created was to be as resistant to custom built hardware just for mining the coins, it uses scrypt as its cryptographic function. Scrypt was specifically designed to make it as expensive as possible to create hardware that is specifically good at doing that hash function. I personally like this ...


6

Litecoin is the 2nd most popular currency in the same family as Bitcoin, and: It is based on the Bitcoin protocol but differs from Bitcoin in that it can be efficiently mined with consumer-grade hardware. Litecoin provides faster transaction confirmations (2.5 minutes on average) and uses a memory-hard, scrypt-based mining proof-of-work algorithm to ...


5

Well, I would run the bitcoind in a VM, and regularly snapshot it. If it fails, rollback the snapshot and reboot. Back online in < 10 min, assuming frequent backups and you start working right away. Not sure if this is the use case you're asking about, but that's what I'd do for max uptime.


5

It's near certain that other Bitcoin-like currencies will continue to be introduced from time to time. Some of them will likely gain some traction. Over time, more and more deficiencies of Bitcoin will become apparent and newly-designed competitors will be able to fix them. While Bitcoin can certainly make some changes, it will always have a trade-off ...


5

You can always try the testnet it is really easy to mine on it since difficulty gets reseted to difficulty one. Just start your bitcoin client with the -testnet parameter (and -gen if you want to CPU mine)


5

The reason many people are trying different types of currencies is that Bitcoin not just a generic coin. It has certain properties built in such as only 21,000,000 ever existing, the 10 minutes taken to confirm a transaction, halving the production rate and importantly the initial distribution been given to miners. Many people like the concept of Bitcoin but ...


5

Even if the dynamics are interpreted in the most basic way, it does not lead to this positive feedback, rather it maintains the status quo. If there are miners with stake of 40%, 30% and 30%, they will get 40%, 30% and 30% of the rewards respectively, so the ratios will remain at 40%, 30%, 30%. For example, if they start with 40, 30, 30 BTC, and 10 new ...


5

According to these lines an accountId seems to be... int(sha256(publicKey(sha256(passphrase)))[7:0], 256) ...which translates to 256^8 accounts or roughly 2 * 10^19, which fits the idea of around 20 arabic numerals. Given there are only 2^64 unique accountId and the birthday paradox, you can check this collision probability table (the 16 bytes/64 bits row)...


5

The shorter the blocktime the more time is lost by the relaying of blocks in relation to the average blocktime. A very short block interval therefore makes SPV mining (i.e. mining empty blocks without transactions) more attractive, and increases the advantage of large pools, because they can start mining on top of their own block the quickest. Additionally, ...


5

If NXT is switching to Ardor, what is the purpose of holding NXT? Nxt isn't switching to Ardor. It will still exist after Ardor launches. The purpose of holding NXT with this in mind is if you need to use the Nxt blockchain, either for personal use or projects, since one will need NXT for the transaction fees, etc. Another reason could be the speculation of ...


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