So, I am already aware of a few things with the BitCoin. Block chain seems simple enough. Get paid for finishing "work" got it! Foreign, not a US based situation. OKIE DOKIE!!!
Can someone explain the "work" to me. I have been pondering this for days and it is driving me up the wall. Best I can tell is it is an encryption breaking system that they let out into the wild to see if they could market such technology... I think it has done quite well, given all the secrecy surrounding it. I have heard that it preforms crazy mathematical equations and the only reason that I see it as necessary, actually functional in anyway, is encryption mining. Can someone explain in detail how it is not being used in this way? What maths is it being used to figure out and why is it necessary to get everyone on board with this new system? Given it's ability to conceal data within itself (that would be, as I understand it, the very nature of the beast) keeping a log of everything that passes through it. I hear that it is encrypted itself so I am really just curious. Is BitCoin/block-chain really just a front for encryption mining? Can this new tech be used in a way that is not outwardly apparent? I myself have ran some miners in the past and they do consume loads of power, so they are obviously doing something.
It is fairly simple, but difficult to explain.
The mathematics is not difficult; there's just a lot of it. You can take any binary data and calculate a "hash". If you are not familiar with that operation, look into "hashing data".
Each block in the blockchain is a ledger of transactions and includes the number of the previous block in the chain. Also, it includes a "nonce", which is a number the value of which is unknown.
Each block is hashed using SHA-256, which transcribes data into a unique code of fixed length. The actual "work" is finding the value of the nonce, such that the hash of this block has certain properties.
A typical hash looks like a string of hexidecimals and is always of fixed length. Now, we call a block finished when we find a value of the nonce such that the hash of the block is such that the first N characters of the hash are 0. This is what is called the "difficulty" (so if N = 10, the difficulty is 10) . As the blockchain grows, rewards get lower and the difficulty rises. This guarantees that only a limited amount of BitCoin will ever exist.
You can imagine it is quite simple to find a value for the nonce that makes the hash of the block start with a 0. It becomes more difficult, the more zeros you want to have at the beginning of the hash.
The process is very simple. You can write a BitCoin miner in Python in about 10 lines of code. However, the difficulty is with the speed of the calculations. It takes very long to find the correct value of the nonce for a block, because you have to try all values. On top of that, hashing large amounts of data just takes a lot.
So, now you understand where "megahash per second" comes from. You will probably understand why you can not mine anything anymore with a GPU with less than 6GB of memory. You will probably understand why there are mining pools (people spread their luck by pooling their results together).
That sounds like encryption mining to me. Having the computers of the end user to make all of the possible #hashes and writing them down for later use by an unknown source. I could be wrong. Do we really want the foundation of our money to be "luck" based?
Well, there is a little more to it than that. The important thing is that the ledger is public and the blockchain can only grow through mining. Mining costs time and electrical energy, so there needs to be an incentive. This incentive is being paid out in BitCoin when finding the correct nonce.
The correct solution changes depending on the content of the current block. You can not store hashes for future use. Each value of the nonce has to be added to the current block; then the whole block needs to be hashed to see if we have found the correct nonce.
I would rather have such a system than have hyperinflation and deficit spending to be honest.
BitCoin has already experienced those. STOP TAXING THE FUCKING MONEY and we wont have an issue. So long as the currency can be taxed for it's own existence we will never be rid of this. Not to mention ending fractional reserve lending, dropping the interest rates of everything to a solid, no changing, limit and only taxing NEW products and not a continuation of taxes levied through fees and "privileges". Everything was put on a subscription basis. Hell, you have to subscribe to your bank just to have them offer you the opportunity to hold your money for you. Made sense when it was physical and required safe housing and ACTUAL transport.
Making technology awesome only to nickle and dime every step of the way. Already happening, https://www.youtube.com/watch?v=GLlzAv2GTdc
My 2c on this one.
The massive amount of computation to mine a bitcoin does nothing, except prove that you have indeed mined the bitcoin you claim you have. The mining and ever-increasing-workload-to extract-coins concept was intentional, and designed to mimic the resources committed Vs returns, against actual monetary properties, like gold.
With the amount of gold in the world being finite and essentially unchangable, the first gold collected was trivial in terms of actual effort - shiny rocks picked up by hand on the surface.. And now in the current day where massive investment in mines, digging equipment, ore processing and refinement etc is needed for what was very much easier when the resource was not as scarce on the surface centuries ago. Mirroring the concept of bitcoin mining.
If you can 'fake' bitcoins, the concept then becomes just like a malicious fiat central bank printing up currency apropos nothing, not backed by any value proposition, and devaluing all existing currency in circulation, stealing the value from the people who hold that currency. So thats why the intentional difficulty in crunching out new bitcoins, it avoids the fiat/fraud/theft concept thats essentially the basis of all nations and their currencies.
Its a tragic comedy that the equivalent of gigawatts of powerplant output is being spent on doing essentially nothing at all.
Bureaucracy!!!! "Here, move this document around a bunch to look busy, boss is coming!"
https://www.youtube.com/watch?v=Lx9zgZCMqXE
Look into the lectures of Andreas Antonopolous too.
Best
Well, I am ready for bed now. WOW! I do not know that I have ever been that bored.
I am not sure that this video provided debunks my idea, if anything it adds to it some more crazy conspiracies!!! It is essentially the current Fiat system with some fancy maths to confuse the laymen. Mission accomplished! With each transaction being charged to compute they have found a way to tax the very movement of money. Gold Coin would be easier to deal with and far less expensive overall with reason to charge for movement if required because actual work would be preformed, not just computer maths. I feel it is an overly complicated system by design to funnel a little off the top when no one is looking. Considering the volume of electricity required to make the whole thing work I will lay blame on the Electric companies just fudging a way to get more money. With the uptick of mining and at least one group being able to "Hit the lottery" SIX times in a row... What are the odds? How is it possible, to reoccur once let alone 6 times altogether? Why would someone want to disable the ability to mine that fast, wouldn't the entire system benefit from the speed? So what everyone is mining the same rig, THAR BE BOOTY TE SPOIL! The system seems to be bogged down having to go through so many channels. I get the concept of decentralized so that governments cannot interfere but I am reminded that governments are largely comprised of "people", "people" that tell government what to do. They try to convince us it is the other way around but I have seen the man behind the curtain. Just a bunch more bells and whistles with fancy signs flashing about. All at the expense of the end user that benefits very little from the experience at large.+
With the amount of #hashes going back and forth I cannot see this as anything more than I had alluded to in my post. They are mining for encryption keys and making a log of it to use at a later time. If you can verify the first number/letter/symbol of the encryption you can cut your wait time down immensely by only running #hashes that start with that particular (symbol). It is only a matter of time before they have access to anything and everything "connected". Unless China has some power issues coming along that I am unaware of.+
Thank you!
Yes.
Bingo.
UGH!!! I have to read?!
So far I completely agree, this has me sketched out. HAHA!
It is quite a chunk of information but it is really nice to have it laid out like it is. Pretty easy to digest and LOTS of buzz words bolded to keep me excited. If you can please do a video to counter all the hype. I get it, salty sea wench called my name too. "Too good to be true, you say? I'll buy two!" Now I am interested in not having money at all! Probably because I buy stupid shit.