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 ...


17

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 ...


16

No, you can't prevent fractional reserve banking technically. For example, IOUs can circulate just like Bitcoins and there's no technical means to stop it. Essentially, anything worth X Bitcoins (once risk and the like are factored in) can act just like X Bitcoins, even if it's not X Bitcoins. And since it's not Bitcoins, nothing Bitcoins can do can stop it. ...


13

There are a number of other cryptocoins in use alongside Bitcoin, the most notable are: Testnet Bitcoins (used only for testing Bitcoin applications, but they are an important mention) - they work exactly the same as Bitcoins. Namecoins - coinage used as a distributed naiming system blockchain. Their most notable feature is that they can be merged mined ...


12

The bitcoin concept has no method to limit anything to a single entity. I am one person yet on bitcon network I have multiple addresses, I have multiple wallets which contain multiple addresses, I make up multiple nodes, I have multiple rigs with multiple GPU each, I use multiple IP addresses. Everything about the bitcon network was designed to allow such ...


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

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

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 ...


8

The alternative currency Geist Geld is experimental and is trying to approach a maximum block rate (that's currently achievable), and has apparently settled upon a target block rate of 1 block per 15 seconds. However, the block rate doesn't necessarily make a substantial difference to how you would use a currency as you could still consider a small ...


8

At least one group has at least claimed to develop a voting system based on Bitcoin. http://www.newscientist.com/article/mg21328476.500-bitcoin-online-currency-gets-new-job-in-web-security.html According to the article: The pair have used their method, known as CommitCoin, to close a loophole in a voting system they helped develop. In the Scantegrity ...


8

BTC-E currently offers trading pairs of BTC/USD, BTC/RUB, SC/BTC, SC/USD, GG/BTC, TBX/BTC, FBX/BTC, LTC/BTC, LTC/USD, RUC/BTC, RUC/USD, RUC/RUB, NMC/BTC and RUB/USD


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

What you're talking about is actually two separate concepts. A "Bitcoin Address" is not a keypair, it does not have public and private components. The Address is derived from the public portion of the key pair and is almost always expressed as a Base58 string. Firstbits is merely a way to look up addresses. When you enter someone's "firstbits" address at ...


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

The "author" (if you can call a blatant 1:1 copy of Bitcoin authoring) has not backed up those claims. The website provides no further explanation and a lot of vague nonsensical "answers" A crude but human translated English version of Russian homepage is here: https://bitcointalk.org/index.php?topic=48582.msg586451#msg586451 What is the specifics of ...


6

I don't know anything about this in particular, but there is nothing new about centralized cryptocurrency. Satoshi in his paper references the state of the art at the time, which is digital signature based tokens which have to be verified by a mint for authenticity. They can use Chaumian blinding for anonymity, as in Digicash - OpenTransactions also ...


6

Reading the whitepaper, it lists its features as: Being decentralised Disclosing of all information on balances and allowin everyone to check for fraud Decentralised money creating with difficulty adjustment, but apparently it can be done "without requiring massive amounts of CPU speed" (although some parts of the whitepaper appear to contradict this) Each ...


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 ...


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