Bitcoin vs. Litecoin: What's the Difference?

[ANN][ANDROID MINING][AIRDROP] NewEnglandcoin: Scrypt RandomSpike

New England
New England 6 States Songs: https://www.reddit.com/newengland/comments/er8wxd/new_england_6_states_songs/
NewEnglandcoin
Symbol: NENG
NewEnglandcoin is a clone of Bitcoin using scrypt as a proof-of-work algorithm with enhanced features to protect against 51% attack and decentralize on mining to allow diversified mining rigs across CPUs, GPUs, ASICs and Android phones.
Mining Algorithm: Scrypt with RandomSpike. RandomSpike is 3rd generation of Dynamic Difficulty (DynDiff) algorithm on top of scrypt.
1 minute block targets base difficulty reset: every 1440 blocks subsidy halves in 2.1m blocks (~ 2 to 4 years) 84,000,000,000 total maximum NENG 20000 NENG per block Pre-mine: 1% - reserved for dev fund ICO: None RPCPort: 6376 Port: 6377
NewEnglandcoin has dogecoin like supply at 84 billion maximum NENG. This huge supply insures that NENG is suitable for retail transactions and daily use. The inflation schedule of NengEnglandcoin is actually identical to that of Litecoin. Bitcoin and Litecoin are already proven to be great long term store of value. The Litecoin-like NENG inflation schedule will make NewEnglandcoin ideal for long term investment appreciation as the supply is limited and capped at a fixed number
Bitcoin Fork - Suitable for Home Hobbyists
NewEnglandcoin core wallet continues to maintain version tag of "Satoshi v0.8.7.5" because NewEnglandcoin is very much an exact clone of bitcoin plus some mining feature changes with DynDiff algorithm. NewEnglandcoin is very suitable as lite version of bitcoin for educational purpose on desktop mining, full node running and bitcoin programming using bitcoin-json APIs.
The NewEnglandcoin (NENG) mining algorithm original upgrade ideas were mainly designed for decentralization of mining rigs on scrypt, which is same algo as litecoin/dogecoin. The way it is going now is that NENG is very suitable for bitcoin/litecoin/dogecoin hobbyists who can not , will not spend huge money to run noisy ASIC/GPU mining equipments, but still want to mine NENG at home with quiet simple CPU/GPU or with a cheap ASIC like FutureBit Moonlander 2 USB or Apollo pod on solo mining setup to obtain very decent profitable results. NENG allows bitcoin litecoin hobbyists to experience full node running, solo mining, CPU/GPU/ASIC for a fun experience at home at cheap cost without breaking bank on equipment or electricity.
MIT Free Course - 23 lectures about Bitcoin, Blockchain and Finance (Fall,2018)
https://www.youtube.com/playlist?list=PLUl4u3cNGP63UUkfL0onkxF6MYgVa04Fn
CPU Minable Coin Because of dynamic difficulty algorithm on top of scrypt, NewEnglandcoin is CPU Minable. Users can easily set up full node for mining at Home PC or Mac using our dedicated cheetah software.
Research on the first forked 50 blocks on v1.2.0 core confirmed that ASIC/GPU miners mined 66% of 50 blocks, CPU miners mined the remaining 34%.
NENG v1.4.0 release enabled CPU mining inside android phones.
Youtube Video Tutorial
How to CPU Mine NewEnglandcoin (NENG) in Windows 10 Part 1 https://www.youtube.com/watch?v=sdOoPvAjzlE How to CPU Mine NewEnglandcoin (NENG) in Windows 10 Part 2 https://www.youtube.com/watch?v=nHnRJvJRzZg
How to CPU Mine NewEnglandcoin (NENG) in macOS https://www.youtube.com/watch?v=Zj7NLMeNSOQ
Decentralization and Community Driven NewEnglandcoin is a decentralized coin just like bitcoin. There is no boss on NewEnglandcoin. Nobody nor the dev owns NENG.
We know a coin is worth nothing if there is no backing from community. Therefore, we as dev do not intend to make decision on this coin solely by ourselves. It is our expectation that NewEnglandcoin community will make majority of decisions on direction of this coin from now on. We as dev merely view our-self as coin creater and technical support of this coin while providing NENG a permanent home at ShorelineCrypto Exchange.
Twitter Airdrop
Follow NENG twitter and receive 100,000 NENG on Twitter Airdrop to up to 1000 winners
Graphic Redesign Bounty
Top one award: 90.9 million NENG Top 10 Winners: 500,000 NENG / person Event Timing: March 25, 2019 - Present Event Address: NewEnglandcoin DISCORD at: https://discord.gg/UPeBwgs
Please complete above Twitter Bounty requirement first. Then follow Below Steps to qualify for the Bounty: (1) Required: submit your own designed NENG logo picture in gif, png jpg or any other common graphic file format into DISCORD "bounty-submission" board (2) Optional: submit a second graphic for logo or any other marketing purposes into "bounty-submission" board. (3) Complete below form.
Please limit your submission to no more than two total. Delete any wrongly submitted or undesired graphics in the board. Contact DISCORD u/honglu69#5911 or u/krypton#6139 if you have any issues.
Twitter Airdrop/Graphic Redesign bounty sign up: https://goo.gl/forms/L0vcwmVi8c76cR7m1
Milestones
Roadmap
NENG v1.4.0 Android Mining, randomSpike Evaluation https://github.com/ShorelineCrypto/NewEnglandCoin/releases/download/NENG_2020_Q3_report/NENG_2020_Q3_report.pdf
RandomSpike - NENG core v1.3.0 Hardfork Upgrade Proposal https://github.com/ShorelineCrypto/NewEnglandCoin/releases/download/2020Q1_Report/Scrypt_RandomSpike_NENGv1.3.0_Hardfork_Proposal.pdf
NENG Security, Decentralization & Valuation
https://github.com/ShorelineCrypto/NewEnglandCoin/releases/download/2019Q2_report/NENG_Security_Decentralization_Value.pdf
Whitepaper v1.0 https://github.com/ShorelineCrypto/NewEnglandCoin/releases/download/whitepaper_v1.0/NENG_WhitePaper.pdf
DISCORD https://discord.gg/UPeBwgs
Explorer
http://www.findblocks.com/exploreNENG http://86.100.49.209/exploreNENG http://nengexplorer.mooo.com:3001/
Step by step guide on how to setup an explorer: https://github.com/ShorelineCrypto/nengexplorer
Github https://github.com/ShorelineCrypto/NewEnglandCoin
Wallet
Android with UserLand App (arm64/armhf), Chromebook (x64/arm64/armhf): https://github.com/ShorelineCrypto/NewEnglandCoin/releases/tag/v1.4.0.5
Linux Wallet (Ubuntu/Linux Mint, Debian/MX Linux, Arch/Manjaro, Fedora, openSUSE): https://github.com/ShorelineCrypto/NewEnglandCoin/releases/tag/v1.4.0.3
MacOS Wallet (10.11 El Capitan or higher): https://github.com/ShorelineCrypto/NewEnglandCoin/releases/tag/v1.4.0.2
Android with GNUroot on 32 bits old Phones (alpha release) wallet: https://github.com/ShorelineCrypto/NewEnglandCoin/releases/tag/v1.4.0
Windows wallet: https://github.com/ShorelineCrypto/NewEnglandCoin/releases/tag/v1.3.0.1
addnode ip address for the wallet to sync faster, frequently updated conf file: https://github.com/ShorelineCrypto/cheetah_cpumineblob/mastenewenglandcoin.conf-example
How to Sync Full Node Desktop Wallet https://www.reddit.com/NewEnglandCoin/comments/er6f0q/how_to_sync_full_node_desktop_wallet/
TWITTER https://twitter.com/newenglandcoin
REDDIT https://www.reddit.com/NewEnglandCoin/
Cheetah CPU Miner Software https://github.com/ShorelineCrypto/cheetah_cpuminer
Solo Mining with GPU or ASIC https://bitcointalk.org/index.php?topic=5027091.msg52187727#msg52187727
How to Run Two Full Node in Same Desktop PC https://bitcointalk.org/index.php?topic=5027091.msg53581449#msg53581449
ASIC/GPU Mining Pools Warning to Big ASIC Miners Due to DynDiff Algo on top of Scrypt, solo mining is recommended for ASIC/GPU miners. Further more, even for mining pools, small mining pool will generate better performance than big NENG mining pool because of new algo v1.2.x post hard fork.
The set up configuration of NENG for scrypt pool mining is same as a typical normal scrypt coin. In other word, DynDiff on Scrypt algo is backward compatible with Scrypt algo. Because ASIC/GPU miners rely on CPU miners for smooth blockchain movement, checkout bottom of "Latest News" section for A WARNING to All ASIC miners before you decide to dump big ASIC hash rate into NENG mining.
(1) Original DynDiff Warning: https://bitcointalk.org/index.php?topic=5027091.msg48324708#msg48324708 (2) New Warning on RandomSpike Spike difficulty (244k) introduced in RandomSpike served as roadblocks to instant mining and provide security against 51% attack risk. However, this spike difficulty like a roadblock that makes big ASIC mining less profitable. In case of spike block to be mined, the spike difficulty immediately serve as base difficulty, which will block GPU/ASIC miners effectively and leave CPU cheetah solo miners dominating mining almost 100% until next base difficulty reset.
FindBlocks http://findblocks.com/
CRpool http://crpool.xyz/
Cminors' Pool http://newenglandcoin.cminors-pool.com/
SPOOL https://spools.online/
Exchange
📷
https://shorelinecrypto.com/
Features: anonymous sign up and trading. No restriction or limit on deposit or withdraw.
The trading pairs available: NewEnglandcoin (NENG) / Dogecoin (DOGE)
Trading commission: A round trip trading will incur 0.10% trading fees in average. Fees are paid only on buyer side. buy fee: 0.2% / sell fee: 0% Deposit fees: free for all coins Withdraw fees: ZERO per withdraw. Mining fees are appointed by each coin blockchain. To cover the blockchain mining fees, there is minimum balance per coin per account: * Dogecoin 2 DOGE * NewEnglandcoin 1 NENG
Latest News Aug 30, 2020 - NENG v1.4.0.5 Released for Android/Chromebook Upgrade with armhf, better hardware support https://bitcointalk.org/index.php?topic=5027091.msg55098029#msg55098029
Aug 11, 2020 - NENG v1.4.0.4 Released for Android arm64 Upgrade / Chromebook Support https://bitcointalk.org/index.php?topic=5027091.msg54977437#msg54977437
Jul 30, 2020 - NENG v1.4.0.3 Released for Linux Wallet Upgrade with 8 Distros https://bitcointalk.org/index.php?topic=5027091.msg54898540#msg54898540
Jul 21, 2020 - NENG v1.4.0.2 Released for MacOS Upgrade with Catalina https://bitcointalk.org/index.php?topic=5027091.msg54839522#msg54839522
Jul 19, 2020 - NENG v1.4.0.1 Released for MacOS Wallet Upgrade https://bitcointalk.org/index.php?topic=5027091.msg54830333#msg54830333
Jul 15, 2020 - NENG v1.4.0 Released for Android Mining, Ubuntu 20.04 support https://bitcointalk.org/index.php?topic=5027091.msg54803639#msg54803639
Jul 11, 2020 - NENG v1.4.0 Android Mining, randomSpike Evaluation https://bitcointalk.org/index.php?topic=5027091.msg54777222#msg54777222
Jun 27, 2020 - Pre-Announce: NENG v1.4.0 Proposal for Mobile Miner Upgrade, Android Mining Start in July 2020 https://bitcointalk.org/index.php?topic=5027091.msg54694233#msg54694233
Jun 19, 2020 - Best Practice for Futurebit Moonlander2 USB ASIC on solo mining mode https://bitcointalk.org/index.php?topic=5027091.msg54645726#msg54645726
Mar 15, 2020 - Scrypt RandomSpike - NENG v1.3.0.1 Released for better wallet syncing https://bitcointalk.org/index.php?topic=5027091.msg54030923#msg54030923
Feb 23, 2020 - Scrypt RandomSpike - NENG Core v1.3.0 Relased, Hardfork on Mar 1 https://bitcointalk.org/index.php?topic=5027091.msg53900926#msg53900926
Feb 1, 2020 - Scrypt RandomSpike Proposal Published- NENG 1.3.0 Hardfork https://bitcointalk.org/index.php?topic=5027091.msg53735458#msg53735458
Jan 15, 2020 - NewEnglandcoin Dev Team Expanded with New Kickoff https://bitcointalk.org/index.php?topic=5027091.msg53617358#msg53617358
Jan 12, 2020 - Explanation of Base Diff Reset and Effect of Supply https://www.reddit.com/NewEnglandCoin/comments/envmo1/explanation_of_base_diff_reset_and_effect_of/
Dec 19, 2019 - Shoreline_tradingbot version 1.0 is released https://bitcointalk.org/index.php?topic=5121953.msg53391184#msg53391184
Sept 1, 2019 - NewEnglandcoin (NENG) is Selected as Shoreline Tradingbot First Supported Coin https://bitcointalk.org/index.php?topic=5027091.msg52331201#msg52331201
Aug 15, 2019 - Mining Update on Effect of Base Difficulty Reset, GPU vs ASIC https://bitcointalk.org/index.php?topic=5027091.msg52169572#msg52169572
Jul 7, 2019 - CPU Mining on macOS Mojave is supported under latest Cheetah_Cpuminer Release https://bitcointalk.org/index.php?topic=5027091.msg51745839#msg51745839
Jun 1, 2019 - NENG Fiat project is stopped by Square, Inc https://bitcointalk.org/index.php?topic=5027091.msg51312291#msg51312291
Apr 21, 2019 - NENG Fiat Project is Launched by ShorelineCrypto https://bitcointalk.org/index.php?topic=5027091.msg50714764#msg50714764
Apr 7, 2019 - Announcement of Fiat Project for all U.S. Residents & Mobile Miner Project Initiation https://bitcointalk.org/index.php?topic=5027091.msg50506585#msg50506585
Apr 1, 2019 - Disclosure on Large Buying on NENG at ShorelineCrypto Exchange https://bitcointalk.org/index.php?topic=5027091.msg50417196#msg50417196
Mar 27, 2019 - Disclosure on Large Buying on NENG at ShorelineCrypto Exchange https://bitcointalk.org/index.php?topic=5027091.msg50332097#msg50332097
Mar 17, 2019 - Disclosure on Large Buying on NENG at ShorelineCrypto Exchange https://bitcointalk.org/index.php?topic=5027091.msg50208194#msg50208194
Feb 26, 2019 - Community Project - NewEnglandcoin Graphic Redesign Bounty Initiated https://bitcointalk.org/index.php?topic=5027091.msg49931305#msg49931305
Feb 22, 2019 - Dev Policy on Checkpoints on NewEnglandcoin https://bitcointalk.org/index.php?topic=5027091.msg49875242#msg49875242
Feb 20, 2019 - NewEnglandCoin v1.2.1 Released to Secure the Hard Kork https://bitcointalk.org/index.php?topic=5027091.msg49831059#msg49831059
Feb 11, 2019 - NewEnglandCoin v1.2.0 Released, Anti-51% Attack, Anti-instant Mining after Hard Fork https://bitcointalk.org/index.php?topic=5027091.msg49685389#msg49685389
Jan 13, 2019 - Cheetah_CpuMiner added support for CPU Mining on Mac https://bitcointalk.org/index.php?topic=5027091.msg49218760#msg49218760
Jan 12, 2019 - NENG Core v1.1.2 Released to support MacOS OSX Wallet https://bitcointalk.org/index.php?topic=5027091.msg49202088#msg49202088
Jan 2, 2019 - Cheetah_Cpuminer v1.1.0 is released for both Linux and Windows https://bitcointalk.org/index.php?topic=5027091.msg49004345#msg49004345
Dec 31, 2018 - Technical Whitepaper is Released https://bitcointalk.org/index.php?topic=5027091.msg48990334#msg48990334
Dec 28, 2018 - Cheetah_Cpuminer v1.0.0 is released for Linux https://bitcointalk.org/index.php?topic=5027091.msg48935135#msg48935135
Update on Dec 14, 2018 - NENG Blockchain Stuck Issue https://bitcointalk.org/index.php?topic=5027091.msg48668375#msg48668375
Nov 27, 2018 - Exclusive for PC CPU Miners - How to Steal a Block from ASIC Miners https://bitcointalk.org/index.php?topic=5027091.msg48258465#msg48258465
Nov 28, 2018 - How to CPU Mine a NENG block with window/linux PC https://bitcointalk.org/index.php?topic=5027091.msg48298311#msg48298311
Nov 29, 2018 - A Warning to ASIC Miners https://bitcointalk.org/index.php?topic=5027091.msg48324708#msg48324708
Disclosure: Dev Team Came from ShorelineCrypto, a US based Informatics Service Business offering Fee for service for Coin Creation, Coin Exchange Listing, Blockchain Consulting, etc.
submitted by honglu69 to NewEnglandCoin [link] [comments]

How do I mine Dogecoin?

How do I mine Dogecoin?
Let’s take a lucky guess that you’re here today because you’ve heard a lot about cryptocurrencies and you want to get involved, right? If you’re a community person, Dogecoin mining might be the perfect start for you!
Bitcoin was the first in 2009, and now there are hundreds of cryptocurrencies. These new coins (that operate on their own native blockchain) are called altcoins or alternative coins. One popular altcoin is Dogecoin. It can be bought, sold and traded, just like Bitcoin. It can also be mined!
So, what is Dogecoin mining?
You’ll know what hardware and what software you need to get started. You’ll also know whether or not Dogecoin mining is for you!
So, where would you like to start? The beginning? Great choice. Let’s have a quick look at how Dogecoin got started.
A (Very) Short History of Dogecoin
In 2013, an Australian named Jackson Palmer and an American named Billy Markus became friends. They became friends because they both liked cryptocurrencies. However, they also thought the whole thing was getting too serious so they decided to create their own.
Palmer and Markus wanted their coin to be more fun and more friendly than other crypto coins. They wanted people who wouldn’t normally care about crypto to get involved.
They decided to use a popular meme as their mascot — a Shiba Inu dog.

https://preview.redd.it/rymnyyz1iil31.png?width=303&format=png&auto=webp&s=f138e3fe56eef9c6b0e7f49b84fefc41fb83e5aa
Dogecoin was launched on December 6th, 2013. Since then it has become popular because it’s playful and good-natured. Just like its mascot!
Dogecoin has become well-known for its use in charitable acts and online tipping. In 2014, $50,000 worth of Dogecoin was donated to the Jamaican Bobsled Team so they could go to the Olympics. Dogecoin has also been used to build wells in Kenya. Isn’t that awesome!
Users of social platforms – like Reddit – can use Dogecoin to tip or reward each other for posting good content.
Dogecoin has the 27th largest market cap of any cryptocurrency.
Note: A market cap (or market capitalization) is the total value of all coins on the market.
So, Dogecoin is a popular altcoin, known for being fun, friendly and kind. It’s a coin with a dog on it! You love it already, don’t you?
Next, I want to talk about how mining works…
What is Mining?
To understand mining, you first need to understand how cryptocurrencies work. Cryptocurrencies are peer-to-peer digital currencies. This means that they allow money to be transferred from one person to another without using a bank.
Every cryptocurrency transaction is recorded on a huge digital database called a blockchain. The database is stored across thousands of computers called nodes. Nodes put together groups of new transactions and add them to the blockchain. These groups are called blocks.
Each block of transactions has to be checked by all the nodes on the network before being added to the blockchain. If nodes didn’t check transactions, people could pretend that they have more money than they really do (I know I would!).
Confirming transactions (mining) requires a lot of computer power and electricity so it’s quite expensive.
Blockchains don’t have paid employees like banks, so they offer a reward to users who confirm transactions. The reward for confirming new transactions is new cryptocurrency. The process of being rewarded with new currency for confirming transactions is what we call “mining”!

https://preview.redd.it/rcut2jx3iil31.png?width=598&format=png&auto=webp&s=8d78d41c764f4fe4e6386da4f40a66556a873b87
It is called mining because it’s a bit like digging for gold or diamonds. Instead of digging with a shovel for gold, you’re digging with your computer for crypto coins!
Each cryptocurrency has its own blockchain. Different ways of mining new currency are used by different coins where different rewards are offered.
So, how do you mine Dogecoin? What’s special about Dogecoin mining? Let’s see…
What is Dogecoin Mining?
Dogecoin mining is the process of being rewarded with new Dogecoin for checking transactions on the Dogecoin blockchain. Simple, right? Well no, it’s not quite that simple, nothing ever is!
Mining Dogecoin is like a lottery. To play the lottery you have to do some work. Well, actually your computer (or node) has to do some work! This work involves the confirming and checking of transactions which I talked about in the last section.
Lots of computers work on the same block of transactions at the same time but the only one can win the reward of new coins. The one that earns the new coins is the node that adds the new block of transactions to the old block of transactions. This is completed using complex mathematical equations.
The node that solves the mathematical problem first wins! It can then attach the newly confirmed block of transactions to the rest of the blockchain.
Most cryptocurrency mining happens this way. However, Dogecoin mining differs from other coins in several important areas. These areas are;
  • Algorithm: Each cryptocurrency has a set of rules for mining new currency. These rules are called a mining or hashing algorithm.
  • Block Time: This is the average length of time it takes for a new block of transactions to be checked and added to the blockchain.
  • Difficulty: This is a number that represents how hard it is to mine each new block of currency. You can use the difficulty number to work out how likely you are to win the mining lottery. Mining difficulty can go up or down depending on how many miners there are. The difficulty is also adjusted by the coin’s protocol to make sure that the block time stays the same.
  • Reward: This is the amount of new currency that is awarded to the miner of each new block.
Now, let’s compare how DogeCoin mining works compared to Litecoin and Bitcoin…
Mining Comparison
Bitcoin uses SHA-256 to guide the mining of new currency and the other two use Scrypt. This is an important difference because Scrypt mining needs a lot less power and is a lot quicker than SHA-256. This makes mining easier for miners with less powerful computers. Fans of Litecoin and Dogecoin think that they are fairer than Bitcoin because more people can mine them.
Note: In 2014, Litecoin and Dogecoin merged mining. This means they made it possible to mine both coins in the same process. Dogecoin mining is now linked with Litecoin mining. It’s like two different football teams playing home games in the same stadium!
Mining Dogecoin is a lot faster than mining Litecoin or Bitcoin. The block reward is much higher too!
Don’t get too excited though (sorry!). Dogecoin is still worth a lot less than Bitcoin and Litecoin. A reward of ten thousand Dogecoin is worth less than thirty US Dollars. A reward of 12.5 Bitcoin is currently worth 86,391.63 US Dollars!
However, it’s not as bad as it sounds. Dogecoin mining difficulty is more than one million times less than Bitcoin mining difficulty. This means you are much more likely to win the block reward when you mine Dogecoin.
Now I’ve told you about what Dogecoin mining is and how it works, would you like to give it a try?
Let’s see what you need to do to become a Dogecoin miner…
How to Mine Dogecoin
There are two ways to mine Dogecoin, solo (by yourself) or in a Dogecoin mining pool.
Note: A Dogecoin pool is a group of users who share their computing power to increase the odds of winning the race to confirm transactions. When one of the nodes in a pool confirms a transaction, it divides the reward between the users of the pool equally.
Dogecoin Mining: Solo vs Pool
When you mine as a part of a Dogecoin pool, you have to pay fees. Also, when the pool mines a block you will only receive a small portion of the total reward. However, pools mine blocks much more often than solo miners. So, your chance of earning a reward (even though it is shared) is increased. This can provide you with a steady new supply of Dogecoin.
If you choose to mine solo then you risk waiting a long time to confirm a transaction because there is a lot of competition. It could be weeks or even months before you mine your first block! However, when you do win, the whole reward will be yours. You won’t have to share it or pay any fees.
As a beginner, I would recommend joining a Dogecoin pool. This way you won’t have to wait as long to mine your first block of new currency. You’ll also feel like you’re part of the community and that’s what Dogecoin is all about!
What You Need To Start Mining Dogecoin
Before you start Dogecoin mining, you’ll need a few basics. They are;
  • A PC with either Windows, OS X or Linux operating system.
  • An internet connection
  • A Shiba Inu puppy (just kidding!)
You’ll also need somewhere to keep the Dogecoin you mine. Go to Dogecoin’s homepage and download a wallet.
Note: A wallet is like an email account. It has a public address for sending/receiving Dogecoin and a private key to access them. Your private keys are like your email’s password. Private keys are very important and need to be kept completely secure.
There are two different types; a light wallet and a full wallet. To mine Dogecoin, you’ll need the full wallet. It’s called Dogecoin Core.
Now that you’ve got a wallet, you need some software and hardware.
Dogecoin Mining Hardware
You can mine Dogecoin with;
  • Your PC’s CPU: The CPU in your PC is probably powerful enough to mine Dogecoin. However, it is not recommended. Mining can cause less powerful computers to overheat which causes damage.
  • A GPU: GPUs (or graphics cards) are used to improve computer graphics but they can also be used to mine Dogecoin. There are plenty of GPUs to choose from but here are a few to get you started;SAPPHIRE Pulse Radeon RX 580 ($426.98)Nvidia GeForce GTX ($579.99)ASUS RX Vega 64 ($944.90)
  • A Scrypt ASIC Miner: This is a piece of hardware designed to do one job only. Scrypt ASIC miners are programmed to mine scrypt based currencies like Litecoin and Dogecoin. ASIC miners are very powerful. They are also very expensive, very loud and can get very hot! Here’s a few for you to check out;Innosilicon A2 Terminator ($760)Bitmain Antminer L3 ($1,649)BW L21 Scrypt Miner ($7,700)
Dogecoin Mining Software
Whether you’re mining with an ASIC, a GPU or a CPU, you’ll need some software to go with it. You should try to use the software that works best with the hardware you’re using. Here’s a short list of the best free software for each choice of mining hardware;
  • CPU: If you just want to give mining a quick try, using your computer’s CPU will work fine. The only software I would recommend for mining using a CPU only is CPU miner which you can download for free here.
  • GPU: If you mine with a GPU there are more software options. Here are a few to check out;CudaMiner– Works best with Nvidia products.CGminer– Works with most GPU hardware.EasyMiner– User-friendly, so it’s good for beginners.
  • Scrypt ASIC miner:MultiMiner– Great for mining scrypt based currencies like Litecoin and Dogecoin. It can also be used to mine SHA-256 currencies like Bitcoin.CGminer and EasyMiner can also be used with ASIC miners.
Recommendations
You’re a beginner, so keep it simple! When you first start mining Dogecoin I would recommend using a GPU like the Radeon RX 580 with EasyMiner software. Then I would recommend joining a Dogecoin mining pool. The best pools to join are multi-currency pools like Multipool or AikaPool.
If you want to mine Dogecoin but don’t want to invest in all the tech, there is one other option…
Dogecoin Cloud Mining
Cloud mining is mining without mining! Put simply, you rent computer power from a huge data center for a monthly or yearly fee. The Dogecoin is mined at the center and then your share is sent to you.
All you need to cloud mine Dogecoin is a Dogecoin wallet. Then choose a cloud mining pool to join. Eobot, Nice Hash and Genesis Mining all offer Scrypt-based cloud mining for a monthly fee.
There are pros and cons to Dogecoin cloud mining;
The Pros
  • It’s cheaper than setting up your own mining operation. There’s also no hot, noisy hardware lying around the house!
  • As a beginner, there isn’t a lot of technical stuff to think about.
  • You get a steady supply of new currency every month.
The Cons
  • Cloud mining pools don’t share much information about themselves and how they work. It can be hard to work out if a cloud mining contract is a good value for money.
  • You are only renting computer power. If the price of Dogecoin goes down, you will still have to pay the same amount for something that is worthless.
  • Dogecoin pools have fixed contracts. The world of crypto can change very quickly. You could be stuck with an unprofitable contract for two years!
  • It’s no fun letting someone else do the mining for you!
Now you know about all the different ways to mine Dogecoin we can ask the big question, can you make tons of money mining Dogecoin?
So, Is Dogecoin Mining Profitable?
The short answer is, not really. Dogecoin mining is not going to make you a crypto billionaire overnight. One Dogecoin is worth 0.002777 US Dollars. If you choose to mine Dogecoin solo, it will be difficult to make a profit. You will probably spend more money on electricity and hardware than you will make from Dogecoin mining. Even if you choose a Dogecoin pool or a cloud pool your profits will be small.
However, if you think I am telling you to not mine Dogecoin, then you’re WRONG! Of course, I think you should mine Dogecoin!
But why? Seriously…
Well, you should mine Dogecoin because it’s fun and you want to be a part of the Dogecoin family. Cryptocurrency is going to change the world and you want to be part of that change, right? Mining Dogecoin is a great way to get involved.
Dogecoin is the coin that puts a smile on people’s faces. By mining Dogecoin you’ll be supporting all the good work its community does. You’ll learn about mining from the friendliest gang in crypto. And who knows? In a few years, the Dogecoin you mine now could be worth thousands or even millions! In 2010, Bitcoin was worthless. Think about that!
Only you can choose whether to mine Dogecoin or not. You now know everything you need to know to make your choice. The future is here. So, what are you going to do?
submitted by alifkhalil469 to BtcNewz [link] [comments]

Why Verge Needs DigiShield NOW! And Why DigiByte Is SAFE!

Hello everyone, I’m back! Someone asked a question recently on what exactly happened to XVG – Verge and if this could be a problem for DGB – DigiByte - Here: DigiByte vs Verge It was a great question and there have been people stating that this cannot be a problem for us because of DigiShield etc… with not much explanation after that.
I was curious and did a bit more investigating to figure out what happened and why exactly it is that we are safe. So take a read.

Some Information on Verge

Verge was founded in 2014 with code based on DogeCoin, it was initially named DogeCoinDark, it later was renamed Verge XVG in 2016. Verge has 5 mining algorithms as does DigiByte. Those being:
However, unlike DigiByte those algorithms do not run side by side. On Verge one block can only be mined by a single algorithm at any time. This means that each algorithm takes turns mining the chain.
Prior to the latest fork there was not a single line of code that forced any algo rotation. They all run in parallel but of course in the end only one block can be accepted at given height which is obvious. After the fork algo rotation is forced so only 6 blocks with the same algo out of any 10 blocks can be accepted. - srgn_

Mining Verge and The Exploit

What happened then was not a 51% attack per say, but the attacker did end up mining 99% of all new blocks so in fact he did have power of over 51% of the chain. The way that Verge is mined allowed for a timestamp exploit. Every block that is mined is dependent on the previous blocks for determining the algorithm to be used (this is part of the exploit). Also, their mining difficulty is adjusted every block (which last 30 seconds also part of the exploit). Algorithms are not picked but in fact as stated previously compete with one another. As for difficulty:
Difficulty is calculated by a version of DGW which is based on timestamps of last 12 blocks mined by the same algo. - srgn_
This kind of bug is very serious and at the foundation of Verge’s codebase. In fact, in order to fix it a fork is needed, either hard fork or soft fork!
What happened was that the hacker managed to change the time stamps on his blocks. He introduced a pair of false blocks. One which showed that the scrypt mining algorithm had been previously used, about 26 mins before, and then a second block which was mined with scrypt. The chain is set up so that it goes through the 5 different algorithms. So, the first false block shows the chain that the scrypt algorithm had been used in the recent past. This tricks it into thinking that the next algorithm to be used is scrypt. In this way, he was essentially able to mine 99% of all blocks.
Pairs of blocks are used to lower the difficulty but they need to be mined in certain order so they can pass the check of median timestamp of last 11 blocks which is performed in CBlock::AcceptBlock(). There is no tricking anything into thinking that the next algo should be x because there is no algo picking. They all just run and mine blocks constantly. There is only lowering the difficulty, passing the checks so the chain is valid and accepting this chain over chains mined by other algos. - segn_
Here is a snippet of code for what the time stamps on the blocks would look like:
SetBestChain: new best=00000000049c2d3329a3 height=2009406 trust=2009407 date=04/04/18 13:50:09 ProcessBlock: ACCEPTED (scrypt) SetBestChain: new best=000000000a307b54dfcf height=2009407 trust=2009408 date=04/04/18 12:16:51 ProcessBlock: ACCEPTED (scrypt) SetBestChain: new best=00000000196f03f5727e height=2009408 trust=2009409 date=04/04/18 13:50:10 ProcessBlock: ACCEPTED (scrypt) SetBestChain: new best=0000000010b42973b6ec height=2009409 trust=2009410 date=04/04/18 12:16:52 ProcessBlock: ACCEPTED (scrypt) SetBestChain: new best=000000000e0655294c73 height=2009410 trust=2009411 date=04/04/18 12:16:53 ProcessBlock: ACCEPTED (scrypt) 
Here’s the first falsified block that was introduced into the XVG chain – Verge-Blockchain.info
As you can see there is the first fake block with a time stamp of 13:50:09 for example and the next is set to 12:15:51, the following two blocks are also a fraudulent pair and note that the next block is set to 12:16:52. So essentially, he was able to mine whole blocks - 1 second per block!

The “Fix”

This exploit was brought to public attention by ocminer on the bitcointalk forums. It seems the person was a mining pool administrator and noticed the problem after miners on the pool started to complain about a potential bug.
What happened next was that Verge developers pushed out a “fix” but in fact did not really fix the issue. What they did was simply diminish the time frame in which the blocks can be mined. The attack still was exploitable and the attacker even went on to try it again!
“The background is that the "fix" promoted by the devs simply won't fix the problem. It will just make the timeframe smaller in which the blocks can be mined / spoofed and the attack will still work, just be a bit slower.” - ocminer
Ocminer then cited DigiShield as a real fix to the issue! Stating that the fix should also stipulate that a single algo can only be used X amount of times and not be dependent on when the algo was last used. He even said that DigiByte and Myriad had the same problems and we fixed them! He cited this github repo for DigiByte:

DigiShield

It seems that the reason that this exploit was so lucrative was because the difficulty adjustment parameters were not enough to reduce the rewards the attacker recieved. Had the rewards per block adjusted at reasonable rate like we do in DGB then at least the rewards would have dropped significantly per block.
The attacker was able to make off with around 60 million Verge which equals about 3.6 million dollars per today’s prices.
The exploit used by the attacker depended on the fact that time stamps could be falsified firstly and secondly that the difficulty retargeting parameters were inadequate.
Let’s cover how DigiShield works more in detail. One of the DigiByte devs gave us this post about 4 years ago now, and the topic deserves revisiting and updates! I had a hard time finding good new resources and information on the details of DigiShield so I hope you’ll appreciate this review! This is everything I found for now that I could understand hopefully I get more information later and I’ll update this post.
Let’s go over some stuff on difficulty first then I’ll try giving you a way to visualise the way these systems work.
First you have to understand that mining difficulty changes over time; it has to! Look at Bitcoin’s difficulty for example – Bitcoin difficulty over the past five months. As I covered in another post (An Introduction to DigiByte Difficulty in Bitcoin is readjusted every 2016 blocks which each last about 10 mins each. This can play out over a span of 2 weeks, and that’s why you see Bitcoin’s difficulty graph as a step graph. In general, the hash power in the network increases over time as more people want to mine Bitcoin and thus the difficulty must also increase so that rewards are proportional.
The problem with non-dynamic difficulty adjustment is that it allows for pools of miners and or single entities to come into smaller coins and mine them continuously, they essentially get “free” or easily mined coins as the difficulty has not had time to adjust. This is not really a problem for Bitcoin or other large coins as they always have a lot of miners running on their chains but for smaller coins and a few years ago in crypto basically any coin other than Bitcoin was vulnerable. Once the miners had gotten their “free coins” they could then dump the chain and go mine something else – because the difficulty had adjusted. Often chains were left frozen or with very high fees and slow processing times as there was not enough hash power to mine the transactions.
This was a big problem in the beginning with DigiByte and almost even killed DogeCoin. This is where our brilliant developers came in and created DigiShield (first known as MultiShield).
These three articles are where most of my information came from for DigiShield I had to reread a the first one a few times to understand so please correct me if I make any mistakes! They are in order from most recent to oldest and also in order of relevance.
DigiShield is a system whereby the difficulty for mining DigiByte is adjusted dynamically. Every single block each at 15 seconds has difficulty adjusted for the available hashing power. This means that difficulty in DigiByte is as close as we can get to real time! There are other methods for adjusting difficulty, the first being the Bitcoin/Litecoin method (a moving average calculated every X number of blocks) then the Kimoto Gravity Well is another. The reason that DigiShield is so great is because the parameters are just right for the difficulty to be able to rise and fall in proportion to the amount of hash power available.
Note that Verge used a difficulty adjustment protocol more similar to that of DigiByte than Bitcoin. Difficulty was adjusted every block at 30 seconds. So why was Verge vulnerable to this attack? As I stated before Verge had a bug that allowed for firstly the manipulation of time stamps, and secondly did not adjust difficulty ideally.
You have to try to imagine that difficulty adjustment chases hashing power. This is because the hashing power on a chain can be seen as the “input” and the difficulty adjustment as the corresponding output. The adjustment or output created is thus dependent on the amount of hashing power input.
DigiShield was designed so that increases in mining difficulty are slightly harder to result than decreases in mining difficulty. This asymmetrical approach allows for mining to be more stable on DigiByte than other coins who use a symmetrical approach. It is a very delicate balancing act which requires the right approach or else the system breaks! Either the chain may freeze if hash power increases and then dumps or mining rewards are too high because the difficulty is not set high enough!
If you’ve ever taken any physics courses maybe one way you can understand DigiShield is if I were to define it as a dynamic asymmetrical oscillation dampener. What does this mean? Let’s cover it in simple terms, it’s difficult to understand and for me it was easier to visualise. Imagine something like this, click on it it’s a video: Caravan Weight Distribution – made easy. This is not a perfect analogy to what DigiShield does but I’ll explain my idea.
The input (hashing power) and the output (difficulty adjustment) both result in oscillations of the mining reward. These two variables are what controls mining rewards! So that caravan shaking violently back and forth imagine those are mining rewards, the weights are the parameters used for difficulty adjustment and the man’s hand pushing on the system is the hashing power. Mining rewards move back and forth (up and down) depending on the weight distribution (difficulty adjustment parameters) and the strength of the push (the amount of hashing power input to the system).
Here is a quote from the dev’s article.
“The secret to DigiShield is an asymmetrical approach to difficulty re-targeting. With DigiShield, the difficulty is allowed to decrease in larger movements than it is allowed to increase from block to block. This keeps a blockchain from getting "stuck" i.e., not finding the next block for several hours following a major drop in the net hash of coin. It is all a balancing act. You need to allow the difficulty to increase enough between blocks to catch up to a sudden spike in net hash, but not enough to accidentally send the difficulty sky high when two miners get lucky and find blocks back to back.”
AND to top it all off the solution to Verge’s time stamp manipulation bug is RIGHT HERE in DigiShield again! This was patched and in Digishield v3 problems #7
Here’s a direct quote:
“Most DigiShield v3 implementations do not get data from the most recent blocks, but begin the averaging at the MTP, which is typically 6 blocks in the past. This is ostensibly done to prevent timestamp manipulation of the difficulty.”
Moreover, DigiShield does not allow for one algorithm to mine more than 5 blocks in a row. If the next block comes in on the same algorithm then it would be blocked and would be handed off to the next algorithm.
DigiShield is a beautiful delicate yet robust system designed to prevent abuse and allow stability in mining! Many coins have adopted out technology!

Verge Needs DigiShield NOW!

The attacker has been identified as IDCToken on the bitcointalk forums. He posted recently that there are two more exploits still available in Verge which would allow for similar attacks! He said this:
“Can confirm it is still exploitable, will not abuse it futher myself but fix this problem immediately I'll give Verge some hours to solve this otherwise I'll make this public and another unpatchable problem.” - IDCToken
DigiShield could have stopped the time stamp manipulation exploit, and stopped the attacker from getting unjust rewards! Maybe a look at Verge’s difficulty chart might give a good idea of what 1 single person was able to do to a coin worth about 1 billion dollars.
Here’s DigiByte’s difficulty steady, even and fair:
Maybe our developers could help Verge somehow – but for a fee? Or it might be a good way to get our name out there, and show people why DigiByte and DigiShield are so important!

SOURCES

Edit - Made a few mistakes in understanding how Verge is mined I've updated the post and left the mistakes visible. Nothing else is changed and my point still stands Verge could stand to gain something from adopting DigiShield!
Hi,
I hope you’ve enjoyed my article! I tried to learn as much as I could on DigiShield because I thought it was an interesting question and to help put together our DGB paper! hopefully I made no mistakes and if I did please let me know.
-Dereck de Mézquita
I'm a student typing this stuff on my free time, help me pay for school? Thank you!
D64fAFQvJMhrBUNYpqUKQjqKrMLu76j24g
https://digiexplorer.info/address/D64fAFQvJMhrBUNYpqUKQjqKrMLu76j24g
submitted by xeno_biologist to Digibyte [link] [comments]

Blockchain Dictionary for Newbies

Blockchain Glossary: From A-Z
51% Attack
When more than half of the computing power of a cryptocurrency network is controlled by a single entity or group, this entity or group may issue conflicting transactions to harm the network, should they have the malicious intent to do so.
Address
Cryptocurrency addresses are used to send or receive transactions on the network. An address usually presents itself as a string of alphanumeric characters.
ASIC
Short form for ‘Application Specific Integrated Circuit’. Often compared to GPUs, ASICs are specially made for mining and may offer significant power savings.
Bitcoin
Bitcoin is the first decentralised, open source cryptocurrency that runs on a global peer to peer network, without the need for middlemen and a centralised issuer.
Block
Blocks are packages of data that carry permanently recorded data on the blockchain network.
Blockchain
A blockchain is a shared ledger where transactions are permanently recorded by appending blocks. The blockchain serves as a historical record of all transactions that ever occurred, from the genesis block to the latest block, hence the name blockchain.
Block Explorer
Block explorer is an online tool to view all transactions, past and current, on the blockchain. They provide useful information such as network hash rate and transaction growth.
Block Height
The number of blocks connected on the blockchain.
Block Reward
A form of incentive for the miner who successfully calculated the hash in a block during mining. Verification of transactions on the blockchain generates new coins in the process, and the miner is rewarded a portion of those.
Central Ledger
A ledger maintained by a central agency.
Confirmation
The successful act of hashing a transaction and adding it to the blockchain.
Consensus
Consensus is achieved when all participants of the network agree on the validity of the transactions, ensuring that the ledgers are exact copies of each other.
Cryptocurrency
Also known as tokens, cryptocurrencies are representations of digital assets.
Cryptographic Hash Function
Cryptographic hashes produce a fixed-size and unique hash value from variable-size transaction input. The SHA-256 computational algorithm is an example of a cryptographic hash.
Dapp
A decentralised application (Dapp) is an application that is open source, operates autonomously, has its data stored on a blockchain, incentivised in the form of cryptographic tokens and operates on a protocol that shows proof of value.
DAO
Decentralised Autonomous Organizations can be thought of as corporations that run without any human intervention and surrender all forms of control to an incorruptible set of business rules.
Distributed Ledger
Distributed ledgers are ledgers in which data is stored across a network of decentralized nodes. A distributed ledger does not have to have its own currency and may be permissioned and private.
Distributed Network
A type of network where processing power and data are spread over the nodes rather than having a centralised data centre.
Difficulty
This refers to how easily a data block of transaction information can be mined successfully.
Digital Signature
A digital code generated by public key encryption that is attached to an electronically transmitted document to verify its contents and the sender’s identity.
Double Spending
Double spending occurs when a sum of money is spent more than once.
Ethereum
Ethereum is a blockchain-based decentralised platform for apps that run smart contracts, and is aimed at solving issues associated with censorship, fraud and third party interference.
EVM
The Ethereum Virtual Machine (EVM) is a Turing complete virtual machine that allows anyone to execute arbitrary EVM Byte Code. Every Ethereum node runs on the EVM to maintain consensus across the blockchain.
Fork
Forks create an alternate version of the blockchain, leaving two blockchains to run simultaneously on different parts of the network.
Genesis Block
The first or first few blocks of a blockchain.
Hard Fork
A type of fork that renders previously invalid transactions valid, and vice versa. This type of fork requires all nodes and users to upgrade to the latest version of the protocol software.
Hash
The act of performing a hash function on the output data. This is used for confirming coin transactions.
Hash Rate
Measurement of performance for the mining rig is expressed in hashes per second.
Hybrid PoS/PoW
A hybrid PoS/PoW allows for both Proof of Stake and Proof of Work as consensus distribution algorithms on the network. In this method, a balance between miners and voters (holders) may be achieved, creating a system of community-based governance by both insiders (holders) and outsiders (miners).
Mining
Mining is the act of validating blockchain transactions. The necessity of validation warrants an incentive for the miners, usually in the form of coins. In this cryptocurrency boom, mining can be a lucrative business when done properly. By choosing the most efficient and suitable hardware and mining target, mining can produce a stable form of passive income.
Multi-Signature
Multi-signature addresses provide an added layer of security by requiring more than one key to authorize a transaction.
Node
A copy of the ledger operated by a participant of the blockchain network.
Oracles
Oracles work as a bridge between the real world and the blockchain by providing data to the smart contracts.
Peer to Peer
Peer to Peer (P2P) refers to the decentralized interactions between two parties or more in a highly-interconnected network. Participants of a P2P network deal directly with each other through a single mediation point.
Public Address
A public address is the cryptographic hash of a public key. They act as email addresses that can be published anywhere, unlike private keys.
Private Key
A private key is a string of data that allows you to access the tokens in a specific wallet. They act as passwords that are kept hidden from anyone but the owner of the address.
Proof of Stake
A consensus distribution algorithm that rewards earnings based on the number of coins you own or hold. The more you invest in the coin, the more you gain by mining with this protocol.
Proof of Work
A consensus distribution algorithm that requires an active role in mining data blocks, often consuming resources, such as electricity. The more ‘work’ you do or the more computational power you provide, the more coins you are rewarded with.
Scrypt
Scrypt is a type of cryptographic algorithm and is used by Litecoin. Compared to SHA256, this is quicker as it does not use up as much processing time.
SHA-256
SHA-256 is a cryptographic algorithm used by cryptocurrencies such as Bitcoin. However, it uses a lot of computing power and processing time, forcing miners to form mining pools to capture gains.
Smart Contracts
Smart contracts encode business rules in a programmable language onto the blockchain and are enforced by the participants of the network.
Soft Fork
A soft fork differs from a hard fork in that only previously valid transactions are made invalid. Since old nodes recognize the new blocks as valid, a soft fork is essentially backward-compatible. This type of fork requires most miners upgrading in order to enforce, while a hard fork requires all nodes to agree on the new version.
Solidity
Solidity is Ethereum’s programming language for developing smart contracts.
Testnet
A test blockchain used by developers to prevent expending assets on the main chain.
Transaction Block
A collection of transactions gathered into a block that can then be hashed and added to the blockchain.
Transaction Fee
All cryptocurrency transactions involve a small transaction fee. These transaction fees add up to account for the block reward that a miner receives when he successfully processes a block.
Turing Complete
Turing complete refers to the ability of a machine to perform calculations that any other programmable computer is capable of. An example of this is the Ethereum Virtual Machine (EVM).
Wallet
A file that houses private keys. It usually contains a software client which allows access to view and create transactions on a specific blockchain that the wallet is designed for.
submitted by Tokenberry to NewbieZone [link] [comments]

A Guide to What the Heck is Going On

Although be it that I don't have a complete mastery of the concept either, I will do my best to use my limited knowledge to explain what exactly the heck is going on with this mystical "Litecoin Mining" and the disappearance of AMD GPUs worldwide.
What exactly is Litecoin mining?
Litecoin mining, or cryptocurrency mining in general, is the use of processors to hash out a value and submit this work in something called "Proof of Work" that is mutually recognized. To put this in an analogy, think of a 3rd grade math classroom. The teacher writes a math problem on the board, say "2+3", and she tells the class to find the answer. Quickly, each student begins to work out the problem, and when a student thinks they've found the answer, they raise their hand and respond, "The answer is 5!". The teacher will then tell the student whether they are right or wrong, and the rest of the class will listen and understand that the one student got the answer right. Then they clap for him, recognizing his achievement and work needed to arrive to the answer. Now, in terms of mining, this difficulty is scaled to immense amounts, but the basic principle is the same. You, the miner, are the student trying to find the answer. The Litecoin master algorithm is the confirming teacher. And the rest of the miners are the other students in the classroom, recognizing your work. Litecoin itself is a derivative of Bitcoin, which is basically another cryptocurrency.
Sources: Litecoin Website and Bitcoin (something like Litecoin)
So what is so important about this answer?
In reality, nothing. It just solves a math problem. But that's all the reason. When the Litecoin algorithm sees you've found the right answer and everybody agrees you found it (so no cheating!), then it will give you a "block reward". Like the teacher handing you a piece of candy for getting the right answer. This block reward contains an amount of Litecoins.
What is a "Litecoin"?
A Litecoin is a medal or proof of work done, and it is given through the reward system aforementioned. Litecoins are just numerical values stored inside of the "blockchain", which you can think of as the classroom. All of the players of this litecoin mining are located within this classroom, located within the blockchain. When everyone recognizes your work, you are given litecoins, which can only be accessed within wallets. You may think of litecoins as a currency, like pennies or nickels. They are something that we give value, yet do not have inherent value themselves. A paper bill is just paper unless we give it value.
So what is a wallet?
Wallets are where litecoins are stored, using a private key and a public key. This private key is a hash of base 58 that is completely randomized, such that only knowing both the private and public keys allows access to this wallet. The public key is shared with others who want to send you litecoins, while you keep the private key to yourself, which allows you to spend those litecoins.
Now, the ultimate question: Why are they taking our graphics cards?!
Ah yes. Now to talk about AMD GPUs. Litecoins use the scrypt algorithm, a memory and computation intensive algorithm that requires many cores and lots of fast RAM. Graphics cards fit both of these profiles perfectly. A graphics card has hundreds or thousands of computation cores, as well as lightning fast GDDR5 memory. As such, graphics cards are snatched up by miners wanting to create money out of thin air, which is basically what they're doing.
But why AMD? Why not NVIDIA?
AMD graphics cards are more efficient at moving bits than NVIDIA graphics cards, further explained here. All you really have to know if that the AMD architecture is much more efficient for cryptocurrency mining.
But why NOW? Bitcoin/Litecoin has been around for awhile. Why are miners stealing our graphics cards NOW?
Well, to put it bluntly, it's because people want to get rich. Recently, as further adoption by companies and the media coverage of cryptocurrencies, Litecoin price has skyrocketed. I'm talking magnitudes of 100 fold. Due to this rapid increase in value, miners have been rushing for more graphics card to make more money. If you take a look at this source, you can see that cryptocurrency mining profitability is insanely high compared to Bitcoin, which is Litecoin's main competitor. Look at the right column in the table that says "Profit Ratio vs. BTC". See the numbers in the 3000% range. Yeah, that's a lot of profitability that can be taken advantage of.
Will we ever get our beloved 7950s back here in /buildapc? Q_Q
Maybe. Delving deeper into what is litecoin, I'll now explain difficulty. As you find more of these answers, with more students working to find the answer to a math problem, the teacher must create more and more difficult math problems for the students to solve, else these little 3rd graders will solve them faster than the teacher has enough candy for. In litecoin mining, this equates to difficulty level. As the difficulty increase, litecoins are harder to hash out, and the rewards diminish. As more students/miners join the blockchain, mining will start to get less and less profitable. HOWEVER. If the price of litecoin skyrockets again, mining will be able to sustain profitability, and we may be out of AMD graphics card for a LONG, LONG TIME. Not to mention, once litecoin becomes unprofitable, if it indeed does, miners will move to other derivatives of cryptocurrencies, restarting the cycle and continuing to snatch up graphics cards. It is unlikely that this trend continues, but if it does, NVIDIA may be the only option for new gamers.
Give me a TL;DR summary!
I'll try my best. Poor people are sitting in a basement making money of out thin air using our graphics cards. They are making $12 a day per graphics card by basically only paying for electricity. This trend will continue for quite some time, meaning no more AMD graphics cards for a while. If you're a gamer, look towards NVIDIA, or be prepared to throw down a lot of cash.
I obviously did not cover EVERYTHING in this post, but the main principles are there. If you want to delve deeper into this, I'd suggest doing your research and looking on the Bitcoin Forum.
EDIT: Please check out /litecoin and /litecoinmining as well. Lots of good information.
submitted by TheKeeperOfPie to buildapc [link] [comments]

Bitcoin vs Litecoin. Learn the differences.

Bitcoin vs Litecoin. Learn the differences.

Writing this predominantly for crypto-newbies. Newbies need to know the difference between bitcoin and litecoin and sometimes we forget how confusing this space can be for new individuals.
Litecoin isn’t that much different from Bitcoin. Matter of fact litecoin is often referred to as the silver to bitcoins gold. Litecoin was created in October, 2011 by Charlie Lee who at the time was working for Google. Charlie has stated that his vision for Litecoin is to be complementary to Bitcoin.

What are the differences?

At a fundamental level, the main difference between bitcoin and litecoin is the mining algorithm used to achieve consensus. Bitcoin uses SHA-256. Litecoin uses Scrypt. SHA-256 being the more complex of the two, however, SHA-256 is susceptible to ASICs (Application-Specific Integrated Circuits) and Scrypt (initially) was able to mitigate the effects of ASICs. An ASIC is hardware designed specifically to mine bitcoin. A miner who has access to ASICs has a competitive advantage over those who do not. For some time, scrypt wasn’t susceptible to ASICs which meant more individuals could participate in the mining processes of Litecoin (as opposed to pool mining or owning a large amount of ASICs) however, this has all changed as there are now ASICs available to mine scrypt currencies.

Differences Continued

Another technical difference between bitcoin and litecoin is the max supply of coins that can be mined. Bitcoin has a max supply of 21 million compared to litecoin’s 84 million. The means litecoin should always be cheaper than bitcoin (this is where the silver to bitcoin’s gold comes from).

Block time

Block time is another technical difference between bitcoin and litecoin. Block time is the average amount of time it takes for block to be mined. Bitcoin has a block time of ~10min compared to litecoin’s ~2.5min. This means litecoin transactions on average will be faster than bitcoin.
So that’s the main differences between litecoin and bitcoin. As you can see, not to much different although the faster transaction times via litecoin is definitely a bonus.
What do you guys think?

Related Links

submitted by MrCryptoDude to litecoin [link] [comments]

[Serious, long] My thoughts on what next for Dogecoin

There’s been a lot of discussion in recent days about the decreasing price of Dogecoin, as well as the risk of a 51% attack from Wafflepool or similar. I wanted to do a wrap-up of the discussions happening amongst the developers of the last few weeks, partly to illustrate that we are looking at options, but mostly to talk about what is happening. Please note that this is all rapidly changing. Dogecoin is actually moving at breakneck speed for a project of its size, especially as we still have a relatively limited core team. This is part of why we don’t write posts very often, as they become out of date so quickly as new arguments and facts are presented.
Lets talk about 51% attacks first. The theory is that if anyone has over 51% of the total hashing power of the network, they can form a blockchain of their own which is considered “more valid” than the blockchain most users are on. This is because cryptocurrency blockchains are secured through proof of work, and therefore more work on a chain makes it, in essence, more valid. This risks an attacker spending coins on one chain, then releasing their own private, longer, blockchain. That latter blockchain replaces the original blockchain, and the coins they spent on the original blockchain are effectively returned to them as if the transactions never happened.
It’s important to understand this because I hear suggestions that Wafflepool shouldn’t accept over 51% of the network hashrate, and unfortunately all this would do is hide the risk. Having one pool own over 51% of the network hashrate is not a problem if it’s actually being used to mine, but instead if it’s used to create a personal blockchain. The other issue raised is one of price; we’ve been steadily dropping since around early February. The core of my answers here is that you need to consider demand vs supply. What happened back in February was that we saw a surge in demand beyond sustainable levels, likely in a form of tulip mania. As supply continued (mining), and demand dropped-off, our price has dropped. This has been worsened by a succession of bad news affecting Bitcoin (MtGox and other exchanges struggling, uncertainty of China and Russia, etc.), which both directly brings down our price, as well as undermining confidence in the entire cryptocurrency ecosystem. It has been suggested (and I can believe this, but have not done my own analysis) that as multipools continue to dominate Dogecoin mining, and they tend to sell coins directly, that they are further reducing the price. Specifically, given that while there is demand for further coins from miners, as they have already expended resources on mining hardware they cannot then purchase the cheap coins the mining pools are producing.
Lastly, there’s the question of ASICs; these are specialised mining devices which are significantly faster than CPU/GPU mining hardware, and typically cheaper to run due to reduced power and space requirements. Their introduction into mining at the moment leaves vastly disproportionate mining power in the hands of a few (there’s one individual with a hashrate of around 20GH/s, for example), and in time is likely to make mining on commodity hardware infeasible.
We’ve had a lot of suggestions for what to do; change proof of work algorithm, add multiple proof of work algorithms, move to proof of stake, merge-mine with Litecoin, have DigiShield merge-mine with us. We’ve considered everything, and then some; I’m not sure how much discussion has happened in total, but I’ve spent over a dozen hours looking at these issues on IRC. In virtually all cases, the majority of people with the skills to implement these changes have rejected them as too high risk and/or having other significant drawbacks. In summary:
The best suggestion we have so far is to out-do the multipools directly, by working on open source multipool software which is more DOGE-friendly. As I understand it two key approaches are being considered for improving DOGE-friendliness; either by directly exchanging other coins to DOGE, or through improved trading algorithms which result in less sharp shocks to the price. For very large mining farms such as SFire’s, it’s hoped this will cause them to separate from the mining pools (which they pay fees to) and go solo. This reduces fees for the miner, as well as reducing the ability for DDoS attacks to be targeted at them, and for us it reduces risk of a 51% attack, improves confidence in the coin security, and enables us to better mitigate impact of people mining huge quantities to sell.
Meanwhile, the main focus is on making Dogecoin (and cryptocurrencies in general) a viable way of moving value around. The 1.7 client (beta release is imminent, and in fact if you’re comfortable compiling it yourself, the code is available from https://github.com/dogecoin/dogecoin/tree/v1.7.0-Beta-1 ) is a major re-write of Dogecoin Core to base it on the Bitcoin Core 0.9 client (with Scrypt added in, of course). This gives us significant performance improvements, as well as a better underlying architecture. To repeat; this will not be a required update, although it will be strongly encouraged as it’s a huge leap forward technologically. One of the features which is currently not working in 1.7, but will be for release, is the Bitcoin payment protocol, which massively improves the payment request/receiving process for merchants. Fundamentally 1.7 is intended to prove we have the technical skills to maintain a stable, useful coin, and help drive/support adoption.
Once 1.7 is done, my immediate priority is technical documentation; we have a security specialist currently working on a guide to cryptocurrency security (setup, risks, best practices, etc.), to help give merchants and exchanges an in-depth understanding of how to securely use cryptocurrency. I’ll be addressing the need for formal standards in Dogecoin, and preparing RFCs for the “dogecoin:” URI and relay network protocol for submission to the IETF (and IANA for the URI).
Lastly; there was a post recently about the need for multi-signature addresses; I’d like to add my own “hell yes!” to that, although obviously I have to prioritise. If anyone else can look at these, that would be fantastic.
For anyone wanting a more permanent link, there's a copy of this on my blog ( http://jrn.me.uk/wp/what-next-for-dogecoin-mid-april-2014/ ), however posting as full text here as probably easier for most people, and I'm not sure my server would survive a reddit hug!
Edit: It's been pointed out that there's no verification of the problems with Blackcoin, and the source alleging problems has a serious credibility issue. Have removed the reference now.
submitted by rnicoll to dogecoin [link] [comments]

Fast 'n Free Forever: an inflationary vision for a Proof of Stake New York Coin

No crypto, or any other currency for that matter, is all things to all people, and trying to be perfect in every regard is a recipe for failure at a coin's primary purpose. Bitcoin suffers from centralization issues related to mining yet it persists and has proven to be a great store of value, Ethereum engaged in a central-bankesque bailout after the DAO, yet it remains an exciting smart contract platform. What is NYC? What is our core functionality? What is it that's worth embracing a flaw over?
New York Coin, fast 'n free: best medium of transaction
(Note: NYC apparently has some fees built in for data heavy transactions, though most transactions are free. I'm in favor of eliminating all of them for the clarity of having a fully free network. There are other ways to deal with spam, and clear branding is priceless. In any case, even now nearly all normal transactions are free and that's one of the core functionalities I think we need to promote)
New York Coin is a coin for commerce, from the local commerce designed to start in New York through ATMs and local business to international commerce in remittances, to the sort of fee avoidance+bitcoin backbone imagined at this link, it's all about commerce. In particular if we aim to team up with Bitcoin via lightning, and be the yin to its yang, the fast free cash layer, or medium of transaction to bitcion's store of value, or as another poster put it, the checking account to bitcion's savings account, we would do well to embrace inflation as a means of paying for this fast and free network, because nothing is really free, but depending on your use case, there are better ways to pay for things.
But don't we HAVE to fix New York Coin's supply issues? Everyone else has finite supply. Inflation is not okay for crypto.
If we fix a hard maximum, we should have a reason for doing it, something that helps us reach our ultimate goal. Fixing supply, and effectively making New York Coin deflationary like other coins might help it become a better store of value, but if that's what we are, what's the point of ATMs and local business support? Bitcoin has been dropped by both Steam and Microsoft recently because of it's exploding costs and congestion, both of which are complicated by how effective it is as a store of value. As bitcoin gets more expensive, it's transactions do as well. As it gets more secured, the cost of securing it goes up. Deflation was a pretty unique attribute of bitcoin when it arrived, and has been a big part of its success, so people labeled it good, but it's not universally good, it's good for something specific. For those that need to compete with the 800lb gorilla that is Bitcoin, they probably need to replicate that. But for a coin like NYC that would do well to be a partner to bitcoin, we don't need to copy that part any more than we'd want to copy 10 minute confirmations.
Ultimately, if we're going to stay fast 'n free, we need a way to reward those securing the network. Once new coins run out when the hard cap gets closer, transactions fees are the only way to do that in a deflationary environment. But if we toss deflation, and embrace inflation, we can keep paying miners, keep the network secure and retain our most valuable asset. Fast 'n free branding is easy to understand, easy to distinguish from every other crypto, and comparing it to an alternative, say, "fast and cheap", well honestly, 'cheap' sounds subpar and inferior. Fast 'n free branding is invaluable for us in a crowded crypto space.
We can't just have infinite supply, can we?
It would be wise to place a curve in place. If we succeed at getting NYC adopted, each will be worth more, the cost of incentivizing miners in NYC will go down. If we don't succeed, nothing matters, so we might as well plan for success and taper off the rewards. I think it would be grand to tie rewards inversely to transaction volume or weight, the idea being that as NYC is used more, it will almost certainly have more value and fewer rewards will be necessary to incentivize people to secure the network.
You might be wondering what the impact on price is. What we should be thinking about though is market cap, and there are other ways to reward our hodlers besides increase in value per NYC. Whether value of NYC increases per coin or by staying stable as more coins come into existence is basically the same thing, especially if we can offer a form of interest to our hodlers rather than miner rewards. Increase in quantity of coins vs increase in value of coins. Additionally, we should consider a less expensive means of securing the network, so we don't have to overdo inflation to cover wasteful electricity and capital expenditures. Both rewarding NYC hodlers and lowering our costs can be achieved by moving from Proof of Work in the Scrypt algorithm to Proof of Stake.
Proof of Stake as a less costly way to mine and a way to reward hodlers beyond value increase
New York Coin is under the radar right now, so mining is fine, but we're near the bottom of our algorithm in security and are susceptible to 51% attack as soon as we start to make an impression on the market. Bitconnect Coin was very scammy, but was nearly second place on the scrypt algorithm and was attacked about a month ago and driven involuntarily into proof of stake before their other issues dissolved them. We should plot a move to proof of stake BEFORE we get attacked, because right now, we're vulnerable, and there's no speed at which we could secure ourselves through scrypt mining that would take away that threat. One litecoin pool getting hacked and used to attack us could wreck confidence in NYC before we even get off the ground.
As a bonus to moving to proof of stake, it could be carried out on any PC, not specialized asics or even hard to find GPUs, so any user could participate. I don't see why a staking wallet couldn't be done for mobile as well, allowing every NYC fan to participate, and every staker helps prevent attacks with very little capital or electrical costs. This would allow our loyal hodlers/investors to benefit from interest and replace some of the value appreciation per coin that comes with store of value coins with quantity as staking rewards, and their costs to run a staking wallet could be almost zero as it can run in the background at almost no power.
But we want NYC to gain value, why limit that through inflation?
We want NYC to be worth more than 100ths of a penny, definitely, and that's very doable. But at a certain point, endless value increase undermines NYC's value as a medium of transaction. People don't want to calculate thousands of satoshis or milliNYC or say "point zero zero zero blah" anything. It's just uncomfortable. They're used to dealing with two decimal places, and perhaps the biggest failing of crypto is trying to force non-nerds to acclimate to 8 decimal points. If they're there but ignorable, it's not a big deal. But if most transact-able values are behind the decimal (tens, hundreds, even thousands of dollars, as with bitcoin), that's a HUGE problem for getting ordinary shoppers to adopt it for daily transactions. Bitcoin hit this uncomfortable region in 2017, and litecoin may well follow soon. NYC community should get comfortable with large supply because that best serves our function as a medium of transaction.
There will be people coming in and demanding a coin burn b/c NYC's problems are all about supply, but we should keep our eye on the prize and pursue a supply policy that serves our core long term interests, not a quick pumpndump story.
If possible, we might do well to reclaim NYC from long abandoned addresses and rather than burning them, recirculate them to stakers as rewards instead of creating new coins. This would helps us limit just how inflationary we get, but the goal should be to be conservative about inflation, not to avoid it or to deflate and try and take a shortcut to greater per coin valuation.
I disagree, but I'm not sure how hard to fight this, I don't want to make a fuss
I wanted to make a strong case for the argument precisely because I know it will meet resistance. My goal is not to quash anyone's argument or steamroll anyone, I just want a fair hearing. Your impassioned arguments against even limited inflation are welcome here, particular substantial arguments. What's the real benefit of copying deflationary coin supply? Do you really not believe that if NYC was successful and coin values rose as high as bitcoins are now, that it wouldn't suppress consumer adoption over discomfort about how much value is on the change side of the decimal place?
In any case, I have zero power here, the community reigns instead, and that's part of what I like about NYC. So I present a little alternative vision for the community to consider. No decision needs to be made, but I welcome a good discussion. I think the argument for a hard cap on supply right now is just because that's what other coins do. If we don't embrace inflation as I suggest, at a minimum, I'd love for this thread to contribute a better reason and help us focus on how a deflationary model would actually help us accomplish our goal to be a coin in daily use by ordinary, non-techie consumers. Let's have a policy on monetary supply that we've thought out.
TL;DR: That's a lot to read. Do you ever write anything that isn't a giant wall of text?
No, sorry. ¯_(ツ)_/¯
submitted by nodecache to NewYorkCoin [link] [comments]

Of Wolves and Weasels - Day 187 - Guest Post: Confessions of a Bitcoiner

Hey all! GoodShibe... on Summer Vacation!
Please enjoy this post by Guest Writer Justlite and tip them well ;D)
Note: To tip them directly:
+dogetipbot @Justlite xxx doge verify
I've been part of this Dogecoin community since early January and I have to say the people here constantly amaze me. For me Dogecoin and this community is the future of cryptocurrency and I'm speaking as a long time Bitcoiner. Over a month ago I explained in a previous post why I believe Dogecoin price will rise again and correctly predicted Bitcoin to rise substantially shortly after my post against in the face of several counter arguments late last year. My thoughts have not changed on Dogecoin but I feel it's worth giving my experience on cryptocurrencies as a Bitcoiner in the early days of 2010-13 and how that compares with Dogecoin.
I bought Bitcoin and Litecoin in the early days and I can tell you the Bitcoin community back then was hopeful, cheerful and very welcoming...forgive us right now we are at the fighting stage with the established status quo wants to knock Bitcoin down.
In the early days we were only known for CPU/GPU mining discussions and tipping one another after each comment. In fact Bitcoin was only ever used to tip and trade but not to buy anything since we didn't have anything available for Bitcoin. We were very brave I mean wiring money to a company in Japan and getting these online things called Bitcoin which doesn't buy anything?!
Back then Bitcoin fans were seen as weird and Bitcoin as a complete joke we were idealist and we still are. Many of the people that fought us then were actually the libertarian precious metals community and because gold and silver were tangible and has been money for 5000 years Bitcoin wasn't and was barely a year old. It's hard to argue with them, after all some guy that called himself Satoshi Nakamoto, the Japanese equivalent of Jack Smith, created it but left after a year and no one saw how he looks like.
We could understand their concerns, a lot of early Bitcoiners like me also have gold and silver in the belief it will protect our wealth from the next financial collapse. But Bitcoin was created for this purpose too, no more will the 1% have economic power over the 99%, "1 CPU - 1 vote" said Satoshi in his white paper. We are also in the digital era and with all the success the internet is nowadays there still was no internet currency without the excessive charges of credit card companies.
Bitcoin changed all that it wasn't just an internet currency it was hoping to be money on every platform in every country, person to person, in at least 10 minutes between any country in any amount for free! Fast forward to present day and we are starting to see that.
Of course we have had many setbacks on the way, such as exchanges being hacked, wallets stolen. We weren't so security conscious back then and we learned the hard way.
Then we grew in price and popularity and quite recently the government fought us when our dark market Silk Road was shut down by the Feds. We have had 4 price bubbles a lot of sleepless nights I've personally ploughed in tens of thousands of dollars lost a lot of Bitcoins on the way (and also lost 15000 Litecoins) and forced to read articles with declarations of "Bitcoin is dead" after each major price drop.
Sound familiar?
"History doesn't repeat it self but it does rhyme" Mark Twain
That's all part of the growing pains of a disruptive idea.
Dogecoin, by comparison, has a whole economy after just 7 months of inception! It's remarkable as I am also a big Litecoin fan and even that community isn't as productive as this. People talk about Dogecoin's PR as it being behind its popularity but I honestly believe there is no intentional PR, I mean where is the PR team?
I believe it was a combination of a friendly meme encouraging positive kind people, a internet currency that's easily explainable to anyone, a very mineable coin using your PC/laptop so everyone can get involved in and great online platform such as Reddit to connect like minded users together and everything just snowballed from there.
Now Dogecoin is one of the most productive coins out there with several client and core devs, hundreds of retailers, apps, doge specific websites, blogs and charity fundraisers. That's why I believe Dogecoin is undervalued right now.
This doesn't mean you should put your life savings into Dogecoin or other cryptocurrencies as they are still a risk and early stage technology. Just buy with what you can afford to lose!
So where is Dogecoin heading? - The analysis
As long as we still use doge for goods and services and keep the positivity going then I can only see the price of doge going higher and reaching all time highs without the need for manipulation. Over what time frame?
Like Bitcoin it won't be overnight and granted there's no supply limit so it will never reach tens or hundreds of dollars but we don't need it to. I honestly want Dogecoin to be a currency and I personally like having whole doges. Ideally I would hope that 1 or even 10 doge will buy 1 loaf of bread or 1 litre of milk at my local grocery store some day.
Supply vs Demand
As I mentioned before the supply coming to the exchanges from multipools has been immense - it is thought about 160 million doge a day is being mined and sold on exchanges just from miners. This not only exerts a lot of selling pressure but it also encourages weak hands to sell forcing the price down further it's a downward spiral which we have been seeing.
Any other coin would have collapsed long ago but doge is no ordinary coin. After the next two halvings in October time it will be down to 40 million a day and low enough to allow for natural demand to outpace the supply causing the price to increase steadily which will give momentum and may then lead to a new all time high and the second bubble.
Network Hashrate
I'm of the belief that ASICs are a necessary evolution in cryptocurrencies by making a coin secure which will attract investment/adoption and environmentally friendly. With scrypt ASICs large and small coming online the network hashrate has more than doubled in the last 2 months from 40 GH/s to 90 GH/s and while we tend to see a jump in hashrate just before a halvening I attribute this rise to small miners also buying ASICs and a lack of more profitable altcoins. Again that's great for the stability of our coin and this will provide further confidence that Dogecoin is a good crypto to buy/adopt/invest.
Deflationary Inflation
Sounds confusing so let me explain unlike Bitcoin where there will only be 21 million coins mined, Dogecoin will reach 100 billion coins mined after block 600k and then see 5.25 billion coins mined each year forever which works out as 5.25% inflation in the first year and then 4.99% in the second year and so on.
While this may seem a lot I have come to the conclusion that it may be a blessing for Dogecoin as it is thought that 5 billion coins per year would be lost permanently anyway so this will 5.25billion coins would replace the lost coins. The extra 5.25 billion coins per year would be enough to incentivise miners to continue mining doge (which would hopefully be at a high enough price after the 600k block reward) and securing our network.
Because Bitcoin has a cap it is seen as a store of value like gold whereas Dogecoin has a infinite supply but at a predictably low yearly increase in fact from 2015 to 2020 Dogecoin will have less yearly inflation than Bitcoin. This can actually encourage people to treat Dogecoin as a true currency to buy everyday items with than as a store of value. I believe that is what Satoshi envisioned Bitcoin to be.
What are the whales doing?
The top 20 dogecoin addresses which account for 40% of all mined Dogecoin out there haven't sold any of their DOGEs.
The whales with large wallets have not sold their DOGE over the course of the last 4 months but the smaller wallets have! Why? The whales are happy to see their DOGE go to zero if they thought it was dying or they have been there and done that and know that perhaps Dogecoin is heading up? I can tell you I have no intention of selling my DOGEs as I believe interesting times are ahead.
The Bitcoin Effect
Bitcoin has paved the way for a crypto to go from $0.0001 to $1000+ and brought technological development, liberty and a sense of community all in a 5 year timespan.
While only $0.00023 Dogecoin has got an ecosystem, a following, funded several charity efforts and a burgeoning economy after only 7 months thanks in part to the network effect of Bitcoin and the rest down to you.
All I can say to you all is well done to all of you for being such a positive and productive community. Keep using Dogecoin and check the links at the side bar such as dogedoor.net and suchlist.com so that you can spend, buy, tip and mine doge and spread the word.
Now let's go to the moon!
TL;DR - Bitcoin had it's ups and downs and not short of haters over the years. Dogecoin is following the same path but in a shorter time frame. After the next 2 halvings Dogecoin price should be rising and adoption will speed up again which will make it a true currency so keep buying using and tipping doge wherever you can.
It's 8:09AM EST and we've found 87.24% of our initial 100 Billion DOGEs -- only 12.76% remains until our period of Hyper-inflation ends! Our Global Hashrate is up from ~76 to ~92 Gigahashes per second and our Difficulty is up from ~1196 to ~1351.
I Hope you enjoyed today's Guest Post by Justlite!
Note: To tip them directly:
+dogetipbot @Justlite xxx doge verify
GoodShibe
submitted by GoodShibe to dogecoin [link] [comments]

Fast 'n Free Forever: an inflationary vision for a Proof of Stake New York Coin

No crypto, or any other currency for that matter, is all things to all people, and trying to be perfect in every regard is a recipe for failure at a coin's primary purpose. Bitcoin suffers from centralization issues related to mining yet it persists and has proven to be a great store of value, Ethereum engaged in a central-bankesque bailout after the DAO, yet it remains an exciting smart contract platform. What is NYC? What is our core functionality? What is it that's worth embracing a flaw over?
New York Coin, fast 'n free: best medium of transaction
(Note: NYC apparently has some fees built in for data heavy transactions, though most transactions are free. I'm in favor of eliminating all of them for the clarity of having a fully free network. There are other ways to deal with spam, and clear branding is priceless. In any case, even now nearly all normal transactions are free and that's one of the core functionalities I think we need to promote). Further explained here: https://www.reddit.com/nycoincommunity/comments/81q9bf/free_forever_the_myth_of_the_no_fee_newyorkcoin/
New York Coin is a coin for commerce, from the local commerce designed to start in New York through ATMs and local business to international commerce in remittances, to the sort of fee avoidance+bitcoin backbone imagined at this link, it's all about commerce. In particular if we aim to team up with Bitcoin via lightning, and be the yin to its yang, the fast free cash layer, or medium of transaction to bitcion's store of value, or as another poster put it, the checking account to bitcion's savings account, we would do well to embrace inflation as a means of paying for this fast and free network, because nothing is really free, but depending on your use case, there are better ways to pay for things.
But don't we HAVE to fix New York Coin's supply issues? Everyone else has finite supply. Inflation is not okay for crypto.
If we fix a hard maximum, we should have a reason for doing it, something that helps us reach our ultimate goal. Fixing supply, and effectively making New York Coin deflationary like other coins might help it become a better store of value, but if that's what we are, what's the point of ATMs and local business support? Bitcoin has been dropped by both Steam and Microsoft recently because of it's exploding costs and congestion, both of which are complicated by how effective it is as a store of value. As bitcoin gets more expensive, it's transactions do as well. As it gets more secured, the cost of securing it goes up. Deflation was a pretty unique attribute of bitcoin when it arrived, and has been a big part of its success, so people labeled it good, but it's not universally good, it's good for something specific. For those that need to compete with the 800lb gorilla that is Bitcoin, they probably need to replicate that. But for a coin like NYC that would do well to be a partner to bitcoin, we don't need to copy that part any more than we'd want to copy 10 minute confirmations.
Ultimately, if we're going to stay fast 'n free, we need a way to reward those securing the network. Once new coins run out when the hard cap gets closer, transactions fees are the only way to do that in a deflationary environment. But if we toss deflation, and embrace inflation, we can keep paying miners, keep the network secure and retain our most valuable asset. Fast 'n free branding is easy to understand, easy to distinguish from every other crypto, and comparing it to an alternative, say, "fast and cheap", well honestly, 'cheap' sounds subpar and inferior. Fast 'n free branding is invaluable for us in a crowded crypto space.
We can't just have infinite supply, can we?
It would be wise to place a curve in place. If we succeed at getting NYC adopted, each will be worth more, the cost of incentivizing miners in NYC will go down. If we don't succeed, nothing matters, so we might as well plan for success and taper off the rewards. I think it would be grand to tie rewards inversely to transaction volume or weight, the idea being that as NYC is used more, it will almost certainly have more value and fewer rewards will be necessary to incentivize people to secure the network.
You might be wondering what the impact on price is. What we should be thinking about though is market cap, and there are other ways to reward our hodlers besides increase in value per NYC. Whether value of NYC increases per coin or by staying stable as more coins come into existence is basically the same thing, especially if we can offer a form of interest to our hodlers rather than miner rewards. Increase in quantity of coins vs increase in value of coins. Additionally, we should consider a less expensive means of securing the network, so we don't have to overdo inflation to cover wasteful electricity and capital expenditures. Both rewarding NYC hodlers and lowering our costs can be achieved by moving from Proof of Work in the Scrypt algorithm to Proof of Stake.
Proof of Stake as a less costly way to mine and a way to reward hodlers beyond value increase
New York Coin is under the radar right now, so mining is fine, but we're near the bottom of our algorithm in security and are susceptible to 51% attack as soon as we start to make an impression on the market. Bitconnect Coin was very scammy, but was nearly second place on the scrypt algorithm and was attacked about a month ago and driven involuntarily into proof of stake before their other issues dissolved them. We should plot a move to proof of stake BEFORE we get attacked, because right now, we're vulnerable, and there's no speed at which we could secure ourselves through scrypt mining that would take away that threat. One litecoin pool getting hacked and used to attack us could wreck confidence in NYC before we even get off the ground.
As a bonus to moving to proof of stake, it could be carried out on any PC, not specialized asics or even hard to find GPUs, so any user could participate. I don't see why a staking wallet couldn't be done for mobile as well, allowing every NYC fan to participate, and every staker helps prevent attacks with very little capital or electrical costs. This would allow our loyal hodlers/investors to benefit from interest and replace some of the value appreciation per coin that comes with store of value coins with quantity as staking rewards, and their costs to run a staking wallet could be almost zero as it can run in the background at almost no power.
But we want NYC to gain value, why limit that through inflation?
We want NYC to be worth more than 100ths of a penny, definitely, and that's very doable. But at a certain point, endless value increase undermines NYC's value as a medium of transaction. People don't want to calculate thousands of satoshis or milliNYC or say "point zero zero zero blah" anything. It's just uncomfortable. They're used to dealing with two decimal places, and perhaps the biggest failing of crypto is trying to force non-nerds to acclimate to 8 decimal points. If they're there but ignorable, it's not a big deal. But if most transact-able values are behind the decimal (tens, hundreds, even thousands of dollars, as with bitcoin), that's a HUGE problem for getting ordinary shoppers to adopt it for daily transactions. Bitcoin hit this uncomfortable region in 2017, and litecoin may well follow soon. NYC community should get comfortable with large supply because that best serves our function as a medium of transaction.
There will be people coming in and demanding a coin burn b/c NYC's problems are all about supply, but we should keep our eye on the prize and pursue a supply policy that serves our core long term interests, not a quick pumpndump story.
If possible, we might do well to reclaim NYC from long abandoned addresses and rather than burning them, recirculate them to stakers as rewards instead of creating new coins. This would helps us limit just how inflationary we get, but the goal should be to be conservative about inflation, not to avoid it or to deflate and try and take a shortcut to greater per coin valuation.
I disagree, but I'm not sure how hard to fight this, I don't want to make a fuss
I wanted to make a strong case for the argument precisely because I know it will meet resistance. My goal is not to quash anyone's argument or steamroll anyone, I just want a fair hearing. Your impassioned arguments against even limited inflation are welcome here, particular substantial arguments. What's the real benefit of copying deflationary coin supply? Do you really not believe that if NYC was successful and coin values rose as high as bitcoins are now, that it wouldn't suppress consumer adoption over discomfort about how much value is on the change side of the decimal place?
In any case, I have zero power here, the community reigns instead, and that's part of what I like about NYC. So I present a little alternative vision for the community to consider. No decision needs to be made, but I welcome a good discussion. I think the argument for a hard cap on supply right now is just because that's what other coins do. If we don't embrace inflation as I suggest, at a minimum, I'd love for this thread to contribute a better reason and help us focus on how a deflationary model would actually help us accomplish our goal to be a coin in daily use by ordinary, non-techie consumers. Let's have a policy on monetary supply that we've thought out.
TL;DR: That's a lot to read. Do you ever write anything that isn't a giant wall of text?
No, sorry. ¯_(ツ)_/¯
submitted by nodecache to nycoincommunity [link] [comments]

Uh, I’m Marketing Specialist (Guerrilla)

Uh, I’m Marketing Specialist (Guerrilla)
I’m so glad you brought this up! It’s the one thing that LTC lacks in and it’s ironic because LTC is the only coin deserving of a full-time marketing team. I think people are starting to finally realize that it’s all about the marketing, word of mouth and branding in crypto. To put this into perspective as a self-funded/semi-retired internet entrepreneur, I’ll tell you exactly what caused my successes and failures. Initially (when I was young), I would launch a service or product in which I used 90% of the budget for development and 10% left over for marketing resulting in failure. At this point if I ever launch a new product or service online 70%+ of the entire budget would be allocated towards the marketing, so I can’t stress the importance of this. 1 million CNY ($150k) applied to a dev team is absolutely incredible, but LTC desperately needs a monthly marketing budget as well. It would be fantastic if these Scrypt mining manufactures or farms could consider that expense the cost of doing business. $5k a month starting budget could really do wonders for creating awareness.
You can see here that we desperately need to address this issue: (sleeping giant) https://www.google.com/trends/explore?q=litecoin
There’s really no need for a DM regarding the marketing unless someone is brought on to manage a campaign, but I would like to give feedback publicly on what I’ve seen so far (since I’m all about community/transparency and appreciate feedback). I can be very direct and hurt people’s feelings, but the only thing that matters is the success of LTC for the sake of humanity (financial freedom from total economic enslavement), so here are my thoughts below.
1.) Current Slogan. I’d like to first go over the silver analogy since Xinxi mentioned it earlier in a reddit post. Right off the bat there are pros and cons that I see with this association.
Pros: During a BTC pump breaking ATH’s it is very beneficial being known as the Silver to Bitcoin’s gold as we’ve already seen demonstrated with the pump in late 2013. People feel that they missed the BTC boat and turn to an alternative that is underpriced and somewhat similar to BTC. Bitcoin paves the infrastructure path while Litecoin trails behind receiving all the benefits, such as the hardware wallet support. It positions Litecoin as a “non-threating” alternative to Bitcoin and acts as a logical trading pair. If you like BTC, then theoretically you should like LTC as well. The Bitcoin association to a digital gold is very powerful because many cultures still understand it as a monetary metal throughout history. I remember in 2011 the BTC community was really pushing that deep psychological comparison. In 2013, Bitcoin hit parity with gold reaching $1,200 and LTC at $48 which is also very similar to what we saw with physical silver. That was not by accident, but now that BTC has hit that objective I don’t hear thought leaders comparing it too gold much anymore and they claim one Bitcoin will be worth 1 million dollars feeding into that gold fever hype. The other issue with changing silver analogy is that Coblee literally designed LTC to be the silver to Bitcoin’s gold and produced 4x more inflation. LTC is also deflationary similar to gold, silver and Bitcoin so logically I guess it only makes sense. PM comparison takes a very complicated concept and helps simplify it for your average man on the street.
Cons: What I don’t like about the silver association. So I believe most here will agree that Gold feels like it’s more important/sought after than Silver. Considering historically kings have access to gold and commoners have access to the silver. I do believe it’s hard for people to chant and cheer, “We’re #2, We’re #2, We’re #2!!!”. Do you see what I mean here? It’s hard to get Excited about that for people and the same goes with hoarding LTC vs BTC. It also creates a dependency on Bitcoin for eternity and keeps LTC under the thumb of the BTC overlords (I know some of them and they hate LTC). The association should be more like Pepsi and Coke or Ying to Yang and one could technically still operate without the other. If LTC dies (I doubt this), then people will forget about the silver association and just continue chanting for Bitcoin #1/Gold2.0/21 Million/I’m Rich Bitches. If BTC dies or is bottlenecked to death it would be nice for LTC to still exist in the minds of the crypto community and that dependence is also dangerous for LTC (as we keep seeing Bitcoins lack of scaling). You’ll notice every time BTC bottlenecks transactions that the price rally gets cut short again which affects the potential LTC rally. This is also a big part of why hedging out of BTC into alts such as LTC is important, but many think why would I hold LTC when I can just hold BTC so they invest in something totally different like ETH as a hedge. The other issue is the ratio and stability of LTC when the ratio both snaps back (short-term) and is suppressed (long-term), so it doesn’t make for the most stable currency when this occurs (although a 40x gain in value again would be nice). Many precious metal bugs will state that the physical gold/silver ratio should be around 1:16 ounces and technically if BTC/LTC had identical network-effect the value ratio would be closer to 1:4. Right now, we’re nearing 1:200 which is absurd. Not only that, this association is not so accurate because the gold and silver volume/ratio of atoms on this earth is unknown. While the tokens to exist currently and in the future are precisely known with BTC/LTC (1:4) which means LTC is actually even more undervalued than physical silver to physical gold. It would be nice to talk about LTC without ever having to mention BTC and I do feel it’s a setback, but at this point maybe necessary especially considering this next BTC pump.
2.) Slogan Suggestion. As you can see I am really on the fence about the silver analogy, so maybe we can just leave it as an unspoken association as we seen Bitcoiners mentioning gold analogy less and less. The funny thing is Coblee and Xinxi totally changed the game with LTC while nobody noticed. It’s so different that I almost think this one change alone has put the silver branding into question. By adding CT transactions and Segwit it provides enough differentiation from BTC to make it a more worthwhile hedge for wealth storage (This is important and helps maintain a higher per coin price). For those that want to save their earnings in a more private blockchain they now have a reason to transfer some BTC over to LTC or bypass it as a means of storage and we already know it’s much better for transfer. Coblee states fungiblity reasons, but I already know people will be taking a second look at LTC after this is implemented because I personally don’t like when people can see all my transactions at a particular address, so having both a fully public and private blockchain is a must. Not only that he knows about the censoring of coins for associations with the dark web even if you weren’t directly involved and that hurts fungibility, so once again the right decisions are being made.
With that said, I would personally prefer LTC being considered the “The Swiss Bank of Money”. Money and Currency are actually two VERY different things by the way while gold/silver being money and currency being a derivative of that money. Obama was recently at South by Southwest and gave a speech mentioning crypto directly. It would be hilarious if we embraced his terminology of crypto. https://www.youtube.com/watch?v=YsDijAoxG9g
“It’s like having a Swiss Bank Account in Your Pocket.”
Another interesting point is the ironclad privacy that Swiss Banks were known for has been completely undermined by the US probing and global FATCA compliance for all other banks globally. There is no safe haven anymore and in a subtle way this almost alludes to LTC being the last bastion of financial freedom. Picture this, but instead LTC: http://i.imgur.com/yrQYmxO.jpg (The financial system is being completely turned upside down with some countries going to negative interest rates… AKA you pay them for holding your money, so that picture is very accurate.)
3.) Litecoin Constitution or Oath. I will eventually get to the marketing aspect, but this all ties into everything, such as word of mouth. Every great company has a motto, a country a constitution or religions with commandments. It is important because it condenses down why we are here, our beliefs, what we are fighting for, our principles and what is out of scope of the vision or deemed acceptable. We’ve seen glimpses of this from Coblee like when he mentioned after an altcoin forked due to a theft that LTC will never hardfork due to a theft (So, let’s outline it for everyone). This is so important that I could even see a URL being dedicated to it so the world is clear as too what LTC is and stands for.
An example of what this would look like: Litecoin Beliefs/Oath: - LItecoin will strive to be as transparent as possible in all aspects of development, marketing, future updates. - Litecoin will strive to remain as decentralized as possible while maintaining a pristine blockchain. All aspects of management for social media and other platforms will also remain decentralized. - Litecoin will never reverse or roll back the blockchain or fork due to a theft or unauthorized transaction. - Litecoin will strive to operate the most financially fair network of wealth storage and transfer as possible. - Litecoin will always strive to bring modern financial access from the richest to the poorest and most remote people on earth. - ETC ETC.
Something like this needs to be in place in the event Charlie goes MIA or anyone else in management so we have our guide stone in place. A wealthy individual looking to speculate in LTC and store his wealth there would feel much more comfortable if he knew what LTC stands for. The examples I gave above are how I perceive LTC but writing it in stone would make everything clear for everyone.
4.) Enthusiastic Keynote Speaker. While I love Charlie to death and he’s fighting the good fight it would be nice to see someone like an Andreas equivalent for LTC (English/Chinese speaker would be incredible). When I hear Andreas speak about BTC I literally get goosebumps and my faith/passion is restored in crypto because sometimes we get beat down when our family and friends can’t see the “lite”. While I believe Charlie should never stop spreading awareness at as many events as possible he doesn’t come off as being very confident and a bit shy (which is fine). What I would like to see is high energy, passion, excitement and a confidence in LTC that is unshakeable. Assume the sale man! Charlie observed BTC operating in the wild, made a few tweaks and somehow made a better version of it capable of more yet incredibly stable/functional (without the suspect Satoshi early miner stash). However, I do understand it being difficult to hype LTC when there is not much to talk about since BTC hit all the talking points and LTC was no different other than 4x. For the future we really need to stress the scalability and fungibility improvements.
5.) Thinking out of the box. Xinxi’s paper wallet suggestion if done on a grand scale could be quite massive for adoption despite how primitive it sounds. This is the type of thinking we need to bring LTC functionality/awareness to the masses. Get creative/think outside the box and reach out to the appropriate companies/visionaries or start a business (we need more entrepreneurs and now is the time to get involved and solidify your spot in the industry).
Some examples: a. In previous posts we discussed the paper wallets for LTC. If I were to walk up to any person on the street and explain to them that I had one LTC paper wallet in my hand worth $4 and I would be willing to sell it to them for $5 and explained it was rare and similar to Bitcoin (second largest), in addition hit $48 in the past and could happen again and BTC is currently at $780.. I guarantee I could sell them on the spot. That could literally be turned in a business model and scaled as one idea that seems silly, but with awesome potential.
b. Tonight I watched the unveiling of the new Tesla solar home roof in addition to the PowerWall 2 unit. Seen here: https://www.youtube.com/watch?v=dRqSkR4ENAg Who’s to say we couldn’t contact Tesla and integrate a Scrypt Asic chip into their future PowerWall 3 unit and offset homeowner’s extra battery power into the form of crypto. I mine BTC, LTC, DASH, ETH/ETC and LTC is by far the most profitable to mine, so maybe this actually could be viable. It’s out of the box and worth looking into from a technical standpoint. Coblee literally lives down the street and could meet with them.
c. Another idea could be a sidechain mobile mining concept. I’ve thrown that idea around with the LTC devs, just to see what their thoughts were. It would have to be structured in a very particular way to work, but I believe there could be some merit there as well to draw in new users. I would really love some feature to be offered through this additional hash/computational power via a sidechain and potentially something like a Dash masternode for the monthly yield since for some the simple buy and HODL method doesn’t work for them. LTC is supposed to be “money”, so monthly yield is inappropriate similar to how gold doesn’t produce monthly yield by its very nature.
5.) More Accessible Scrypt Miners. It looks like Alcheminer is gone and Titans are no longer obtainable leaving really only Innosilicons terminators older ones and the newer ones coming. It would be nice if we had more affordable smaller miners for your average joe. GPU dominates the word of mouth aspect because of accessibility. Any gamer can get involved, he gets a few coins and then tells his friends being that there is also financial incentive for him to spread awareness. It would be great if we could see more scrypt manufactures producing something to fill this niche.
6.) Localbitcoins.com equivalent. I don’t want to offend anyone again, but the litecoinlocal.net website really does need work. Aesthetically it doesn’t look as visually appealing as LBC and also does not function as well. The .net extension is also not so favorable, so maybe they could acquire a .com equivalent and 301 it. In addition, I see little to no available trades which also does not bode well on the psyche of potential LTC investors. LBC is really a major backbone to Bitcoin adoption considering its functionality for the community and allows people to buy BTC in a more anonymous fashion. Plus, the owner of LBC makes great profit so there is much incentive for running a high caliber local exchange.
7.) Marketing. There really is no marketing for LTC and I’ve never seen any marketing efforts on behalf of the LTC association other than maybe some sponsored ads on reddit (which is fine). This really does need to change because when we saw Dogecoin doing the Nascar stuff or Jamaican bob sled team, I was thinking my god why can’t we get a budget going to spread awareness. While I believed even at the time that their particular choices were foolish I was impressed that they were actually trying to bring about public awareness for Doge. We can maintain interactions on all the social profiles we want in the world, but we really need to be paying for ad placement on networks such as YouTube, Facebook, Reddit, Twitter, etc etc. A/B split testing with a test budget would be wise and gauge interaction via a landing page.
Side note: It’s funny one of my first projects when I was a kid was a penny stock newsletter site accessible via monthly subscription. We ran ads that were very professional and reasonable such as “Join our newsletter and receive monthly returns up to 20%-30%”. At the time that was very reasonable and realistic based on our track record/advice. The only problem was the ads performed horribly, but then eventually we said screw it and ran ridiculous ads like, “GAINZ of 30000X, GET RICH, GET BITCHES, LIVE ON BEACH IN PARADISE”…. And it worked almost too well. This tells me humans react off greed and dreams of grandeur. I see these claims with altcoins that get pumped which claims of “next Bitcoin” or will “overthrow Bitcoin”. I think that’ more sensational for most people and fills their dreams of becoming rich overnight. There’s those types of people and then there are the more ideological type like we see in the BTC community such as miners that will continue to mine at a loss because they believe so strongly in BTC or the HODLRS that won’t sell even when BTC loses half its value in 48 hours and people are shitting their pants. It would be nice if we could appeal to all demographics.
I keep hearing about the LTC Association meetings. Why don’t we publicly post the meeting day/time do it via Google Hangouts so we can all listen in on the conversation. We really need to build a sense of community and that’s lacking as well. Outreach programs could also be a very inexpensive form of marketing. Such as contacting Twitch.tv for potential integration of LTC. If the fundamentals were explained I’m sure there would be successes in furthering adoption of the technology.
If the Litcointalk.org website is not going to get fixed can we at least 301 it to the litecointalk.io address for now? Seeing "Hacked" at the top of the site doesn't instill confidence again... Not so great for branding... lol
… to be continued.
I’m starting to ramble. It’s 3am here and I’m half asleep. I’ll continue writing more on potential marketing efforts/ideas I’ve had (tomorrow).
In the meantime, I’ve love to hear feedback on things I’ve shared so far.
submitted by dballing1 to litecoin [link] [comments]

A long term outlook at the Dogecoin economy and currency (intro & pt 1 - mining power and a 51% attack) [meta]

Dogecoin is awesome. Dogecoin is too the moon!
But like any moon mission, it's worth asking the question what can go wrong on the way there. What stakeholders exist in the Dogecoin economy, what outcomes are possible in Dogecoin's journey, and how those outcomes could affect the behavior of the stakeholders.
This post is designed to encourage you to ask questions about every aspect of how Dogecoin functions. I do not intend this as investment advice in any sense of the word and have worked hard to avoid any discussion about what will happen to the price of dogecoin in the future.
In this post I will outline the stakeholders, outline the factors that affect the currency, and address the question of how Hashrate is related to miners decisions, and how it protects Dogecoin from a 51% attack
A few of the key facts I'll discuss:
Disclosure: I own a small amount of Dogecoin and Bitcoin (less than $100 in total at current market value) It's purely for entertainment and research purposes.
At the moment, I see the following people in the Dogecoin community:
  1. Long term investors (individuals holding Dogecoin either as a store of value or an investment opportunity)
  2. Short term investors (individuals holding Dogecoin as an investment opportunity)
  3. Professional Dogecoin miners (individuals choosing to mine Dogecoin rather than other Scrypt based coins, motivated by income)
  4. Community Dogecoin miners (individuals choosing to mine Dogecoin because they like Dogecoin, not motivated by income)
  5. Dogecoin buyers and sellers (individuals using dogecoin as a short term medium of exchange)
  6. Dogecoin community members (individuals holding Dogecoin for fun and/or using it for non-monetary compensation {irrelevant of market value}
  7. Dogecoin developers (Individuals who will decide what changes are made to the Dogecoin protocol {some of which may affect market behavior})
It's important to note that individuals in the community can be in more than one category (someone who holds dogecoin for short term investment can also buy and sell dogecoin on the market)
Variables which can affect the above stakeholders:
A. The average (and future) mining reward from a block of Dogecoin per kilohash hour. (How much can I make mining Dogecoin, what will Dogecoin inflation look like)
B. The total mining power (in GH) focused on Dogecoin vs other Scrypt coins (the more distributed miners, the safer the blockchain)
C. The price of Dogecoin/Market Cap (to determine if Dogecoin is worth mining)
D. The market perception about the future price of Dogecoin (to determine if Dogecoin is worth holding/spending and worth mining) {this is harder to quantify}
E. The Transaction volume of Dogecoin (to determine the community interest in the currency)
F. The reliability of Fiat to Dogecoin exchanges and Crypto to Dogecoin Exchanges (to facilitate an efficient/accurate market price for Dogecoin)
G. The speed of Dogecoin conversion into fiat (for instant transactions by merchants)
H. The development pipeline for new Dogecoin compatible mining hardware (how far off are ASICs for Scrypt)
As I see it, there's one major outcome that affects the entire community equally.
A 51% attack on Dogecoin would be of massive adverse value to everyone (except the individuals perpetrating the attack). If Dogecoin's blockchain was corrupted, It would cease to function as a useful medium of exchange and as a store of value. Miners would leave because the value would plummet from it not being trusted. Short term investors would dump their holdings as they started to lose value. Long term investors would do the same.
The currency would die.
How does one prevent a 51% attack? Have a large total mining hashrate in the hands of a diverse number of miners. If the cost of running a 51% attack is so high it's not worth the money, it won't happen.
This leads to a fundamental question: what keeps people mining Dogecoin?
Dogecoin miners are separated into two groups (as mentioned above), Professional miners who will go where they can make the most money, and amateur miners who will mine Dogecoin because they like the currency.
From a community health perspective, the professional miners are the main concern (with a few caveats). If professional miners leave, that affects trust in Dogecoin.
So what keeps them mining for us? There are two major Scrypt based cryptos out right now, Litecoin and Dogecoin, and the community, as of this writing, is essentially split 50/50 is split 55/45 in favor of Dogecoin.
What this reflects is that miners expect to make more money mining Dogecoin than litecoin. Since an efficient market exists for trading Litecoin into Bitcoin and Dogecoin into Bitcoin, it seems to this author that value should be assessed in terms of current actual value (that miners choose what coin to mine based on how much they can sell it for today)
Since two large scale profitable currencies exist (LTE and DOGE) miners are going to choose the more profitable up until the point where the two converge. This depends on three variables:
Difficulty, total hash rate, and average reward.
As of Jan 23, DOGE is a little over twice as profitable as LTC.
This is what has prompted the major switch of the past few days.
I need help modeling is how much total value comes from LTC and how much from DOGE (essentially, if I owned the entire mining pool and split my work equally, how much could I make from each currency?)
At some point, enough miners will leave LTC that it's difficulty will drop. Assuming LTC retains its value (in fiat), falling difficulty will make it more profitable. Eventually, its profitability will once again match that of Dogecoin, and miners will stop leaving LTC for DOGE.
The problem is that as miners leave, it is possible that the currency value will drop as well.
On Jan 20, LTC had a 115GH rate, Doge had 57GH. Doge was trading at .00003 LTC. On Jan 23, Doge had 95, LTC had 75, and Doge more than doubled in price to .0000675. (Litecoin has also dropped about $1 (~5%) in value in USD over the same period.)
This is likely why even though Dogecoin has more miners than LTC, Litecoin is still less profitable for Miners (at this precise moment). Dogecoin has increased in currency value more than it has decreased in mining value.
Thus, the fundamental question is what kind of change is required in the price of DOGE/LTC and what hashing ratio will LTC and DOGE settle on based on their current price. It's important to remember that LTC has not dropped in value significantly, Doge has simply rose dramatically.
Fundamentally, as long as LTC has some value, it will have some percentage of Scrypt hashing power devoted to it. The same is true for Doge. So as long as people still want both currencies to some degree, mining power will be split. *Depending on that split, Dogecoin will be safe if it has enough mining power to prevent a malicious third party, and if that mining power remains in the hands of a diverse group of DOGE mining pools. *
My next post will address the different needs of the Long term investor, the short term investor, and the casual owner. (Some want a long term stable currency, some want a dramatic increase in price (even if it hurts the currency long term)
Please feel free to leave comments about anything you disagree with, any changes I should make, any thoughts about other factors that could affect the health of the currency, any other subjects you'd like to see explored. Thanks!
submitted by harddata to dogecoin [link] [comments]

TIL: CryptoNote vs CryptoNight

Intro TIL
 
Since im utterly bored and at the same time always fascinated to learn about cryptocurrency, I will post sometimes a TIL (Today I Learned) in this subreddit to enlighten some people and also learn some stuff myself. If this isnt liked by the community or mods, just tell me to stop;)
Else I want to keep the subreddit alive by posting.
 
CryptoNote vs CryptoNight
 
CryptoNote is the name of the cryptocurrency technology (application layer) that Monero (and Aeon, and various others) is based on. CryptoNight is the name of the hash function that is used in the CryptoNote Proof-of-Work algorithm. CryptoNight-Lite is a modification of CryptoNight that uses half as much memory and fewer hash rounds, used in Aeon.
 
https://cryptonote.org/
 
So basically CryptoNight is the algorithm for Monero and CryptoNight-Lite is the algorithm for AEON.
Different coins use different algorithms, here some examples: SHA256 (bitcoin), Scrypt (litecoin), Ethhash/Dagger-hashimoto (ethereum)
 
Rough and simple summary:
 
EDIT: Changed ethereum algo according to YellowOnion's comment
submitted by thehihoguy to Aeon [link] [comments]

Thinking in Systems: A Cryptocurrency Primer

I recently wrote a text post Success to the Successful (or: why the moon is not far enough). In that post I explained Success to the Successful, an example of what is know as a system archetype, a recurring pattern that systems often take on.
I first came across the idea of system archetypes in the book Thinking in Systems: A Primer by Donella Meadows. I would like to use one chapter of this book to analyse cryptocurrencies, as it provides a convenient basis for comparison. I will focus on Dash and Bitcoin because I think this is the illuminating pair to compare, but I will mention others as they become relevant.
Donella Meadows describes a system as a set of things—people, cells, molecules, or whatever—interconnected in such a way that they produce their own behavior over time (p2), and as an interconnected set of elements that is coherently organized in a way that achieves something (p11).
Chapter 6 of this book is titled Leverage Points—Places to Intervene in a System. I will work through them in turn, briefly explain each, and use them to analyse cryptocurrencies. With any luck, this will also show ways to synthesise a cryptocurrency, ie consciously choose properties that meet intended goals. The leverage points are presented in reverse order, that is to say, point 12 is the weakest intervention point, and point 1 is the strongest.
12. Numbers—Constants and parameters such as subsidies, taxes standards
The essence of this point is that changing the tax rate from 18% to 25% or 13% makes no significant change to the was a system works. Donella Meadows says that numbers are dead last on the list of powerful interventions – diddling with the details, rearranging the deck chairs on the Titanic.
This means that it is of no real importance that Bitcoin has a 10 minute average block time, whereas Dash and Litecoin have an average of 2.5 minutes, or that Bitcoin uses SHA256 whereas Litecoin uses scrypt. It also means that the debate between (what is now) Bitcoin Core, XT, and Classic, over whether to have 1, 8, or 2MB blocks, the debate which has stalled Bitcoin development for longer than I can now remember, is over the least important part of the system. Meadows might have also called the block size limit debate in Bitcoin re-arranging deck chairs on the Titanic.
11. Buffers—The size of stabilizing stocks relative to their flows
In a bathtub, the tub is a buffer (or stock), whereas the tap and sinkhole are flows.
Dash has an interesting type of financial stock with its masternode collateral. A large amount of DASH is held by long-term holders to enable the decentralised masternode network, and acts as a sort of saving account for operators. But Meadows says this is a low-leverage point – whether collateral is specifically 1000 DASH, 100 DASH or 10 DASH is probably not significant.
10. Stock-and-Flow Structures—Physical systems and their nodes of intersection
This covers things like plumbing systems and road layouts. What is connected to what can significantly change how a system behaves, as a broken water pipe or a poorly-placed road quickly shows.
Cryptocurrencies don't have many significant physical stock and flow structures. The main one that springs to mind is the location of Bitcoin miners near hydroelectric power stations and other renewable power sources. Proof-of-stake mining removes that physical structure, but I won't consider that further as most top cryptocurrencies are proof-of-stake.
There is another type of structure, which is informational. This actually comes under the higher-leverage point 6. Information Flows, however I will describe them here, as they are revenant to points in between.
Dash has two very powerful structures that Bitcoin lacks.
First, Dash has proof-of-stake voting. Dash is able to collect the opinions of masternode operators (ie large stakeholders), and broadcast them in a verifiable way to the entire network. Bitcoin has no comparable system. It is like large BTC holders are each locked in their own room with only shouting loudly as a means of communication, while large DASH holders have internet connections and videoconferencing.
Second, Dash voting forms part of its treasury system, and controls a flow of money to development projects, which covers all activities that Dash needs. It can increase or decrease these flows at will. Bitcoin development is funded out of deep pockets, and is not necessarily driven by what holders want (as the previous structure is missing). In my mind I see this as a kind of hybrid structure: while technically it is informational (cryptocurrency money is pure information), it behaves in many ways like a flow of gold coins.
9. Delays—The lengths of time relative to the rates of system changes
Delays are the time it takes for one part of a system to react to another. They are the source of oscillations. Business suffers natural booms and busts because (for one reason), the time it takes to build up a business, means that by the time it is fully operational, the market may be oversaturated, and some will be forced to close down. Delays that are too short cause overcompensation, common on car dealer forecourts that routinely over- or under-order new stock. On a shorter scale, this is the source of flash-crashes in the stock market. Long delays make long-term planning impossible, for example building the correct number of power plants.
Mining hardware is extremely sensitive to delay – planning R&D and installation of mining hardware is fraught with uncertainty due to the long time scales involved.
Dash has enormously reduced one kind of delay: consensus formation. Thanks to the structure explained above, it is possible within hours or days to establish consensus of opinion among masternode operators, holding some together some 60% of the currency. For example the 2MB-blocksize proposal was resolved in a few hours. What Donella Meadows describes as diddling with the details was resolved as quickly as such a triviality should be.
8. Balancing Feedback Loops—The strengths of the feedbacks relative to the impacts they are trying to correct
A balancing loop is a structure that tries to correct a system that strays from its goal. For example: a thermostat keeping a room at a comfortable temperature; democratic voting keeping a political party from runaway despotism. Balancing loops are important because reinforcing loops are very powerful, and can throw a system out of control, like a steam engine running faster and faster until it explodes.
Thanks to its treasury system, Dash has a unique balancing feedback loop: the masternode network can cut funding to any project at will. That means that if – say – the Dash Core team adopted the same 1MB block size policy as Bitcoin Core, in defiance of the previous vote, the masternode network can bring the system back into control by cutting funding to Dash Core. This would not be the end of the matter (another Core team would be required to replace them), but it would start to resolve the problem with a much lower delay.
7. Reinforcing Feedback Loops—The strength of the gain of driving loops
This was the topic of the earlier post Success to the Successful (or: why the moon is not far enough), so I would suggest reading that for more detail, as I believe it is a distinguishing feature of Dash among top cryptocurrencies today.
To summarise, Dash has a loop where wise masternode voting funds successful projects, which increase the utility of Dash, which increases the price of DASH, which increases the value of the monthly development budget, which increases Dash's capacity to fund successful projects. Bitcoin does not have this loop: a rising price of BTC does not enable Bitcoin to develop itself more successfully, because development is not paid for with BTC, and it does in any case not have the structure to direct funds based on past success. Dash is inherently more able to develop itself than Bitcoin; it is already developing faster, and its development is accelerating thanks to this loop.
6. Information Flows—The structure of who does and does not have access to information
This is covered under 10. Stock-and-Flow Structures to make the flow of this post easier to read. But note that Meadows considered Information Flows as higher-leverage points, higher even than Balancing Feedback Loops and Reinforcing Feedback Loops.
5. Rules—Incentives, punishments, constraints
This covers everything from the physical laws of nature, through codes of laws enforced by courts, to the rules of trivial board games or casual agreements between friends.
Cryptocurrencies have some very hard rules. For example, to spend any BTC or DASH etc, you must be able to sign a valid transaction transferring the money from you to someone else. No amount of begging or pleading will sway the laws of cryptography, any more than begging or pleading can change the force of gravity.
The rules of the cryptocurrency block reward determine the incentives of participants in a cryptocurrency.
Bitcoin allocates 100% of the block reward to the miner of that block: there is a very strong incentive to mine Bitcoin blocks. However, there is no corresponding incentive for running a Bitcoin node. By splitting the block reward 45% to miners and 45% to masternode operators, Dash has ~4500 masternodes to Bitcoin's ~5500 nodes, despite the currency having a market cap somewhere around 1% of Bitcoin's. Also, Bitcoin has a balancing loop, whereby the more popular Bitcoin becomes, the higher the cost of running a node becomes, and so the lower the net incentive. Only companies and individuals who need to verify every transaction will run a Bitcoin node; with Dash, people will also run nodes because they are paid to do so.
One area where Dash is perhaps lacking in this section is punishments. Dash has an incentive that people are paid to do projects to develop Dash, and funding can be withdrawn if they fail to deliver, but they are not punished if they deceive or defraud. As Donella Meadows put 5. Rules quite high up the list, this suggests that adding punishments to negligently managed or fraudulent development projects might be a high-leverage intervention.
Meadows says that power over rules is real power. Who gets to decide the rules of a blockchain, decides the fate of a cryptocurrency. Who in Bitcoin, and who in Dash, decides whether blocks will be only 1MB in size, or whether they can be larger? In Dash, this is transparent, bearing in mind the complexities we considered earlier. In Bitcoin, it is considerably less so.
4. Self-organisation—The power to add, change, or evolve system structure
This covers evolution, the adaptation of an immune system, ants building a hive, DNA building an ant, members of a society agreeing on its laws.
This point is key why capitalism is superior to communism at generating economic development: the minds of everyone working as an entrepreneur, able to startup up and shut down businesses as they sense real demand, will always outpace the abilities of a central planner with limited information and limited capacity to process it. Simply, it creates a bigger, more adaptable brain out society, a more powerful mind to design and provide infrastructure, goods and services.
Dash has a layer of self-organisation at a higher level than businesses running on the blockchain. The treasury system works like a circulatory system, providing money to its DAO employees like nutrition to vital functions. This enables Dash to create development teams, marketing teams, market research teams, R&D teams, forum moderation teams and so on. The treasury lets Dash participants self-organise into a nervous system, and function as a viable, self-sustaining organisation.
3. Goals—The purpose or function of a system
The goal of a system is what it tries to achieve. The goal of a thermostat is the temperature it wants to maintain the room at. The goal of a political party is to get elected. The goal of a football team is to win the game.
What is the goal of Bitcoin? The Bitcoin whitepaper defines it as a peer-to-peer electronic cash system. What is the goal of Monero? The Monero website defines it as is a secure, private, untraceable currency. Dash? Well, Dash is digital cash – citation needed :)
Note that the block size debate in Bitcoin is really a debate over its goal – is it peer-to-peer cash, or is it a digital settlement layer for a Lightning Network? Dash has a consensus structure to confirm its goal, it has information and money flows to decide and fund its path to its goal, it has balancing loops to keep it in check. Dash has a clear goal; the goal of Bitcoin right now looks simply undefined. It's not clear who is in a position to define it. But Donella Meadows puts Goals way up the list of leverage points at number 3, so this matters enormously.
2. Paradigms—The mind-set out of which the system–its goals, structures, rules, delays, parameters–arises
At this point we may be stepping out of the sphere of any one individual cryptocurrency. What do we want as money? Do we want debt-money created by private institutions? Do we want hard money like gold? Do we want to return to peer-to-peer credit? Do we want centrally-planned money, or market-driven money?
I won't attempt to answer any questions here.
1. Transcending Paradigms
This is the idea to stay unattached, to realise that no one paradigm is true. Maybe the head of a central bank will come to understand the advantages of cryptocurrency systems; maybe a die-hard libertarian will appreciate the positive role regulation and government intervention can have in financial systems. Meadows describes this as to let go into not-knowing. For me it is to accept that everyone has their own mindset and the goals that this entails, and they come to this mindset through experiences no less real or valid than one's own.
At this point we have completely escaped the petty squabbling of 1MB vs 2MB blocks, and opened a discussion on what paradigm of money will best suit the needs of the modern world. That is a debate I think not even Donella Meadows would find easy to resolve.

I hope this analysis proves useful to someone. If it has peeked anyone's interested, I wholeheartedly recommend reading the whole of Thinking in Systems, which is both short and accessible to anyone with an inquisitive mind.
(Apologies for any errors, I've typed this quickly in a few spare hours)
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