Can anyone provide a code analysis of the BitCoin client, specifically what it's doing with SHA 256 and nonces?
I'm looking at the GuiMiner code, just trying to find out what exactly we are doing here. Mind you, I am a bit weak in cryptography, but what I am looking for is this: what inputs go into the generating function, and what comes out, and how do we know whether or not it's what we are looking for? I think I've found the function here (line 298, BitcoinMiner.py): noncesLeft = self.hashspace data = np.array(unpack('IIIIIIIIIIIIIIII', work['data'][128:].decode('hex')), dtype=np.uint32) state = np.array(unpack('IIIIIIII', work['midstate'].decode('hex')), dtype=np.uint32) target = np.array(unpack('IIIIIIII', work['target'].decode('hex')), dtype=np.uint32) state2 = partial(state, data, f)
I'll pay 0.5 BTC to the first person who can adequately explain (to my satisfaction i.e. I may ask for more explanation on various points), in 3 different ways, how and why this works. I know how much a pain it is to work through a third-party's code, and like to offer some reward for putting up with what will likely be some of the dumber questions asked in this subreddit in quite some time. Assume that I am interested in writing a client in another language, and barely speak Python (which is part of the problem). And I am primarily interested in the calculations of BitCoins...the front end and communication with the server is secondary (because I need to test whether porting it to another language is worth it). Yes, I've tried Google, but I seem to be getting snippets of how the algorithm works. What are we calculating, how are we calculating it, what do nonces have to do with it, and how do we know it's valid? And yes, while it is possible this post may belong more in BitMarket than Bitcoin because of the reward, I think it's better placed here in BitCoin where people are trying to learn how it all works. Thank You.
[SCAMMER] VadorTheMiner (and my reflections on my own mistakes)
I wanted to have faith in bitmarket, and I know I have myself to blame for not being more cautious, but I've been scammed. VadorTheMiner stole my gift card and then deleted his account. I almost didn't post this because I'm embarrassed, but perhaps some others will learn from it. Here is my original post: http://www.reddit.com/BitMarket/comments/1rxebb/wts_50_itunes_gift_card_for_40_of_bitstamp_rate/ My conversation with VadorTheMiner is here: http://i.imgur.com/3FAxoC1.png I hate that I acted in good faith, really took the time to figure out /bitmarket, but still got screwed (by my own faith in others). VadorTheMinor created an account 4 days ago, made enough posts about being scammed himself to fool me (among other topics), and then asked for me to send the code to my $50 iTunes gift card (which I was selling for $40 of the current bitstamp rate). The 4 day old account should have alerted me, but I wanted to have faith in people; how stupid. I know I should have used a moderator for escrow now. Perhaps that info should be in the sidebar? A low dollar amount escrow service is needed. BTCrow.com seems great, but 0.25 BTC minimum is tough for transactions like these. Thanks for reading. I'm more sad than mad about this, because I love bitcoin and reddit and this is the first time I've felt disappointed in either.
Overview - Table of Contents Introduction to Earning in Bitcoin Work for Bitcoin Sell for Bitcoin Affiliate Programs Gambling Bitcoin Mining Hardware Mining Cloud Mining Introduction to Earning in Bitcoin Bitcoin is the most popular digital currency in the world today. Bitcoin cloud mining is the fastest way to immediately begin earning bitcoins. Bitcoin is built using very complicated cryptographic principles, and supported by countless individuals and companies from all around the world. By early 2016, total Bitcoin market capitalization had crossed USD 7 Billion, making it almost as valuable as the GDP of a small country like Bahamas. All the other digital currencies together do not constitute even 20% of Bitcoin’s market capitalization, underlining the its dominance and importance in the world of digital currencies. With such a huge amount of world’s capital available in the form of Bitcoins, the number and types of opportunities to earn in bitcoins are increasing by the day. In this article we will discuss such opportunities that help us earn bitcoins. We will start with the easiest, or the one that is applicable for the maximum number of people, and then move to the tougher ones. In the end we will cover earning bitcoins by mining. Bitcoin mining is not an easy way to earn bitcoins, but we do have a number of easier ones we will discuss first. So lets start with ‘earning bitcoins by offering your services’ Work for Bitcoin Perhaps the easiest way to earn bitcoins is to work online or in real life for bitcoins. Because of the huge size of the bitcoin eco-system, a number of such opportunities and jobs are available. With Billions of dollars invested in Bitcoin by tens of thousands of people, there is a real market in Bitcoin, where you can find jobs for freelancers, software developers, writers, and others who get paid in bitcoins for their services. Software development, writing, design, making websites or apps, audio transcription, are some of the most active types of jobs. You can easily discover the types of jobs by going over the more popular job boards for bitcoin related work. The following job boards or forums are some of the best places to look for such jobs or gigs. Freelancing XBTfreelancer Cryptogrind Bitlancerr Coinality Bitgigs Jobs4Bitcoins Rein Project Crypto Jobs List Market Places OpenBazaar Purse.io Bitify /bitmarket 21 Market Video Streaming Watchmybit Streamium.io Tasks Bitasker BitforTip WillPayCoin File/Image Sharing Supload.com SatoshiBox JoyStream Advertising CoinAd A-ads Coinzilla.io Also, check BitcoinGames for ideas on earning bitcoin and blockchain game assets. Sell for bitcoin You can also get Bitcoin by selling your old laptops, phones or other items for Bitcoins. Such types of transactions are happening more and more, and a lot of buyers are already buying anything from iPhones to even cars by paying with Bitcoins. For Americans, Craigslist.com is your best bet when you want to find such buyers. You can mention in your ad that you are willing to take payment in Bitcoin. This way if anyone wants to buy the item for you for Bitcoin, they can contact you and make an offer. The same principle applies to other online marketplaces such as gumtree for UK, kijiji for canda etc. Affiliate Programs Affiliate programs allow a promoter of a business or product to earn money or bitcoins by refering new clients to such businesses or products. For example, amazon.com has a popular affiliate program, where you can earn commission ranging from 2% to 20% for refering clients to products listed on amazon.com. Amazon normally pays in dollars, but there are a number of other sites and businesses which pay you in bitcoin for acting as their affiliate. Some of the more popular affiliate programs that pay out in Bitcoin are by the sites: cex.io, coinbase.com, okcoin.com and namecheap.com, among others. You can find a larger list of such affiliate programs on the bitcoin wiki page for Affiliates. Gambling We do not recommend gambling for every player or every user; we find that gambling is only suitable for people who know how to win at it. However, if you are one of such lucky users who have some tricks up their sleeves, and can manage to win at games such as poker, then you will find that earning bitcoins is not that hard. One of the many applications of bitcoin since the very beginning have been in betting games or gambling. Because of the relative anonymity of bitcoin, and the lower fees, it is very suitable for gambling related applications. Indeed, one such game, satoshiDICE, has been running since 2012, and has paid out a huge number of bitcoins in innumerable transactions to its winners. There are many such games, which you can find be googling. If you want to gamble totally anonymously, you can play gambling or betting games that are available only on darknet or .onion sites. Such sites allow you to browse them anonymous by operating on the tor network, which is a secure network that allows users to browse .onion websites without exposing their own IP address. Bitcoin Mining For each block that is added to the Bitcoin Blockchain, a number of bitcoins are rewarded to the creater of that block. This reward is currently, as of June 2016, 25 bitcoins per block, and it halves every four years. The next halving will be in July 2016. Creating or finding the new blocks, and therefore winning the reward of 25 bitcoins for each block you create, is called bitcoin mining. To do bitcoin mining successfully, you need very powerful computers, which compete with other computers to find the next block. The speed or power of computer that do bitcoin mining is calculated in hashes calculated per second. There are two ways to do bitcoin mining: one is to own hardware or computers that do the mining, and second is to hire the hardware from a third party, usually online, and do the mining on the cloud. Let us discuss the advantages and disadvantages of both in next two sections. Hardware Mining When you own the hardware that does the calculations and mining of bitcoins, its called hardware mining. Hardware mining is the more popular or prevalent of the two types of mining we mentioned. One of the biggest factors which comes into play when doing bitcoin mining using your own hardware is the price of electricity. If you pay top price for electricity, then bitcoin mining may not be your cup of tea. Another related factor is infrastructure needed to cool the hardware; since every cpu generates some amount of heat, you may need to cool the hardware in case they become too heated. No wonder that some of the most successful miners work from China, specially Tibet, where they can get cheap electricity, and their cooling costs are low due to high altitude which reduces the ambient temperature for them. For a more in-depth information on how to setup your hardware mining equipment, have a look at the Antminer setup page. Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are: AntMiner S7 AntMiner S7 Bitcoin Miner 4.73 Th/s 0.25 W/Gh 8.8 pounds Yes $479.95 AntMiner S7 Bitcoin Miner 0.1645 AntMiner S9 AntMiner S9 Bitcoin Miner 13.5 Th/s 0.098 W/Gh 8.1 pounds Yes $1,987.95 AntMiner S9 Bitcoin Miner 0.3603 Avalon6 Avalon6 Bitcoin Miner 3.5 Th/s 0.29 W/Gh 9.5 pounds No $499.95 Avalon6 Bitcoin Miner 0.1232 Cloud Mining There are a number of service providers that allow you to rent computational hardware from them, which can then be used to do bitcon mining. Some of these services are designed with bitcoin mining in mind, whereas others such as Amazon AWS are general purpose services that can also be used to do bitcoin mining. Some of the cloud mining services which can be used to do bitcoin mining on the cloud are: Hashflare Review: Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/s. Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available. Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible. Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more. Minergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin. Hashnest Review: Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest's website. At the time of writing one Antminer S7's hash rate can be rented for $1,200. Bitcoin Cloud Mining Review: Currently all Bitcoin Cloud Mining contracts are sold out. NiceHash Review: NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices. Eobot Review: Start cloud mining Bitcoin with as little as $10. Eobot claims customers can break even in 14 months. MineOnCloud Review: MineOnCloud currently has about 35 TH/s of mining equipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s. Written by Bitcoin Mining on May 4, 2016.
Off-chain transactions and miner fees | info at bitmarkets.net | Aug 09 2015
info at bitmarkets.net on Aug 09 2015: Hello all, one argument I often read on this mailing list is that it's essential to reward miners with transaction fees at some point to secure the network. Off-chain transactions, whether it's Lightning or something else, potentially extract fees, which may otherwise be paid to miners, if the transactions were actually on-chain. In this context, wouldn't it be contradictory, maybe even harmful, to aim for an environment, where some/many/most transactions are off-chain? I have not yet seen this conflict addressed in the recent discussions. original: http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2015-August/010070.html
From Conception to Deployment in 10 days; this has to be the record for a Mining Group Buy.
My new year’s resolution was to “go big” with Bitcoin mining. My friend Michael and I had been talking about scaling up big for a long time, and with Bitcoin having set record highs this was the time to move. Day 0: To be able to scale you need a facility that can provide a TON of power. We want to scale. Michael is an electrician at a data center, our kids go to the same school and are best friends. Try to order space in a data center and see how long it takes... Michael was able to move heaven and earth and get us on the schedule for immediate deployment. Day 1: I ordered a few more Antminers on Bitcointalk, they had a New Years deal. We sign the lease with the datacenter. You have to commit for a year. It’s scary to sign a big contract like this. It’s a lot of money and my heart is pounding. My credit card is hurting. Day 2: I start negotiating with the Bitmain Antminer distributor for a bulk purchase. I know him from the Arizona Bitcoin Meetup group (which I organize). Coincidentally we are both “Ninjas” for our user names on bitcointalk. Day 3: It’s difficult to negotiate when Bitmain in China is holding all the cards. Hopefully we hear back soon. We don’t want to pay for unused data center space, so it’s important that we get an order in soon. Day 4: We get a deal worked out with the Bitmain distributor, I send my largest (in terms of USD) Bitcoin payment ever to his wallet. Bitcoin tends to go up in value and now the fear and uncertainty are really setting in. Did I really just spend nearly all the coins I had worked so hard to earn over the past year? Plus the credit card bill, my wife probably won’t like this. I stop sleeping. Day 5: I start ordering all the additional equipment needed for the deployment. More damage on the credit cards for power supplies at Newegg and shelves for the cabinet at Amazon. We launch our group buy...crickets. I am scared again. I talk to my friend Morpheus and he buys the first share. It’s encouraging but I am worried about all the BTC I spent. Day 6: I have my appointment at the data center to get my badge. It’s my first time to visit the facility, I had read their cool sales pitch online; but it’s different to see it in person. It takes a retina scan to get in. Seriously a retina scan. I get a personalized behind the scenes tour from my good friend Michael. It’s very impressive, and not even at 50% capacity. We can literally deploy 10MW worth of gear here. I’m starting to feel the energy, I’m feeding off it and don’t need to eat or sleep anymore. I tweak the terms of the group buy, offering up some of my own preordered hardware and BOOM its selling. Day 7: Our cabinet gets powered up, personally connected by Michael. It’s pretty serious stuff wiring 208V 3-phase, live... the power in the data center never goes down. You want to be in the data center if there is a zombie apocalypse. I go to Fry's to get networking gear and power cables. The PDU (Power Distribution Unit) uses power supply extender cables to connect, to prevent you from plugging in 110V equipment....which means we needed all new cables. We also have our Meetup event today, where I was scheduled to speak. I’m a bit flustered, but I think I explained the fundamentals well to the small crowd in attendance. Of course I pitch the mine to the group as well. Day 8: We take possession of the cabinet and get to work. We install the shelves and networking equipment. It’s a pain in the ass and takes a long time. The miners were supposed to be here, but they are delayed due to shipping issues. The network isn’t working, it’s late, we’re frustrated. Michael bangs on the glass at the NOC and gets us some help. The first LAN port on our firewall appliance stops working. Finally after restarting everything it all comes up. The miner I brought from home starts blinking the happy green led. It’s surreal at this point, and it’s so cold working on the cabinet that my nose is running. We run some Reddit advertising and shares are selling fast. Day 9: It’s Friday, where are my miners? Where are my miners? They aren’t here. I promised the group buy we would start mining by tomorrow and the big order still isn’t here. UPS can suck my BIG FAT CAWK. We deploy the miners I had bought for Christmas, which takes up half the night - the whole cabinet is staged for this group buy and the next with ethernet cables and power supplies. I still need more miners to fulfill the Group buy. I work with the Bitmain distributer to get a few more units so we will have enough to launch. The shares are selling so fast now; Michael and his family come over to celebrate the launch. Forget sleep, I’m living on coffee and Redbull. I start giving away gold to anyone that buys a share - I’ve done Adwords campaigns before and they suck compared to Reddit advertising. Day 10: I quickly hack up a stats page so everyone can see the stats of our mine, while drinking yet more coffee. 4 hours of sleep and I feel rested. We go pick up the last few miners from the Bitmain distributor. I think he is getting about as much sleep as I am. We meet at Starbucks for some much needed caffeine, and then race back to the datacenter to install it. The security guards are getting to know me, I suck at working the retina scanner and doors and they always have to buzz me through. EDIT There are less than 10 shares left to sell in Group buy #1. Tomorrow I am going to rest. The big order of miners will be here Monday, and soon the whole space will be full. Group buy #2 starts next week. We've added another 100 shares to Group buy #1, 2.9TH is running now. More is on the way, enough for a total of 300 shares. This will totally fill our space, so there will be a couple of weeks before we can get our (8 cabinet) cage and start the next group buy. This is just the beginning. We are about to launch a full service Bitcoin hardware colocation business too. I've lost more weight during this effort than dieting intentionally. Most people resolve to lose weight for new years. BONUS. Relevant thread on /bitmarket
[SCAMMER] VadorTheMiner (and my reflections on my own mistakes)
OP: http://www.reddit.com/BitMarket/comments/1s8tn7/scammer_vadortheminer_and_my_reflections_on_my/ I wanted to have faith in bitmarket, and I know I have myself to blame for not being more cautious, but I've been scammed. VadorTheMiner stole my gift card and then deleted his account. I almost didn't post this because I'm embarrassed, but perhaps some others will learn from it. Here is my original post: http://www.reddit.com/BitMarket/comments/1rxebb/wts_50_itunes_gift_card_for_40_of_bitstamp_rate/ My conversation with VadorTheMiner is here: http://i.imgur.com/3FAxoC1.png I hate that I acted in good faith, really took the time to figure out /bitmarket, but still got screwed (by my own faith in others). VadorTheMinor created an account 4 days ago, made enough posts about being scammed himself to fool me (among other topics), and then asked for me to send the code to my $50 iTunes gift card (which I was selling for $40 of the current bitstamp rate). The 4 day old account should have alerted me, but I wanted to have faith in people; how stupid. I know I should have used a moderator for escrow now. Perhaps that info should be in the sidebar? A low dollar amount escrow service is needed. BTCrow.com seems great, but 0.25 BTC minimum is tough for transactions like these. Thanks for reading. I'm more sad than mad about this, because I love bitcoin and reddit and this is the first time I've felt disappointed in either.
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Bitcoin-Mine: Hier werden Millionen verdient Galileo ...
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