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JamesYellen

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Posts posted by JamesYellen

  1. Cryptocurrency is an encrypted decentralized digital currency transferred between peers and confirmed in a public ledger via a process known as mining.

     

    Below, we take a simplified look at how cryptocurrencies like bitcoin work. First, let’s review the basics and essentials of cryptocurrency, and then we will do an overview of the other properties that have made cryptocurrency what it is today.

     

    [video=youtube]

     

    The Cryptocurrency Basics

     

    In order to understand how cryptocurrency works, you’ll need to understand a few basic concepts. Specifically:

     

    Public Ledgers: All confirmed transactions from the start of a cryptocurrency’s creation are stored in a public ledger. The identities of the coin owners are encrypted, and the system uses other cryptographic techniques to ensure the legitimacy of record keeping. The ledger ensures that corresponding “digital wallets” can calculate an accurate spendable balance. Also, new transactions can be checked to ensure that each transaction uses only coins currently owned by the spender. Bitcoin calls this public ledger a “transaction block chain“.

     

    Transactions: A transfer of funds between two digital wallets is called a transaction. That transaction gets submitted to a public ledger and awaits confirmation. When a transaction is made, wallets use an encrypted electronic signature (an encrypted piece of data called a cryptographic signature) to provide a mathematical proof that the transaction is coming from the owner of the wallet. The confirmation process takes a bit of time (ten minutes for bitcoin) while “miners” mine (ie. confirm transactions and add them to the public ledger).

     

    Mining: In simple terms, mining is the process of confirming transactions and adding them to a public ledger. In order to add a transaction to the ledger, the “miner” must solve an increasingly-complex computational problem (sort of like a mathematical puzzle). Mining is open source, so anyone can confirm the transaction. The first “miner” to solve the puzzle adds a “block” of transactions to the ledger. The way in which transactions, blocks, and the public blockchain ledger work together ensures that no one individual can easily add or change a block at will. Once a block is added to the ledger, all correlating transactions are permanent and a small transaction fee is added to the miner’s wallet (along with newly created coins). The mining process is what gives value to the coins and is known as a proof-of-work system.

     

    [video=youtube]

     

    The Anatomy of Cryptocurrency

     

     

    Although there can be exceptions to the rule, there are a number of factors (beyond the basics above) that make cryptocurrency so different from the financial systems of the past:

     

    Adaptive Scaling: Adaptive scaling essentially means that cryptocurrencies are built with a number of measures to ensure that they will work well in both large or small scales.

     

    Adaptive Scaling Example: Bitcoin is programmed to allow for one transaction block to be mined every ten minutes. The algorithm adjusts after every 2016 blocks (theoretically, that’s every two weeks) to get easier or harder based on how long it actually took for those 2016 blocks to be mined. So if it only took 13 days for the network to mine 2016 blocks, that means it’s too easy to mine, so the difficulty increases. However, if it takes 15 days for the network to mine 2016 blocks, that shows that it’s too hard to mind, so the difficulty decreases.

     

    A number of other measures are included in digital coins to allow for adaptive scaling including limiting the supply overtime (to create scarcity) and reducing the reward for mining as more total coins are mined.

     

    Cryptographic: Cryptocurrency uses a system of cryptography (AKA encryption) to control the creation of coins and to verify transactions.

     

    Decentralized: Most currencies in circulation are controlled by a centralized government, and thus their creation can be regulated by a third party. Cryptocurrency’s creation and transactions are open source, controlled by code, and rely on “peer-to-peer” networks. There is no single entity that can affect the currency.

     

    Digital: Traditional currency is defined by a physical object (USD representing gold for example), but cryptocurrency is all digital. Digital coins are stored in digital wallets and transferred digitally to other peoples’ digital wallets. No physical object ever exists.

     

    [video=youtube]

     

    Open Source: Cryptocurrencies are typically open source. That means that developers can create APIs without paying a fee and anyone can use or join the network.

     

    Proof-of-work: Most cryptocurrencies use a proof-of-work system. A proof-of-work scheme uses a hard-to-compute but easy-to-verify computational puzzle to limit exploitation of cryptocurrency mining. Essentially, it’s like a really hard to solve “catpcha” that requires lots of computing power.

     

    Pseudonymity: Owners of cryptocurrency keep their digital coins in an encrypted digital wallet. A coin-holder’s identification is stored in an encrypted address that they have control over – it is not attached to a person’s identity. The connection between you and your coins is pseudonymous rather than anonymous as ledgers are open to the public (and thus, the ledgers could be used to glean information about groups of individuals in the network).

     

    Value: For something to be an effective currency, it has to have value. The US dollar used to represent actual gold. The gold was scarce and required work to mine and refine, so the scarcity and work gave the gold value. This, in turn, gave the US dollar value.

     

    Cryptocurrency works with a similar concept. In cryptocurrency, “coins” (which are nothing more than publicly agreed on records of ownership) are generated or produced by “miners”. These miners are people who run programs on specialized hardware made specifically to solve proof-of-work puzzles. The work behind mining coins gives them value, while scarcity of coins and demand thereof causes their value to fluctuate. The idea of work giving value to currency is called a “proof-of-work” system. The other method for validating coins is called proof-of-stake. Value is also created when transactions are added to public ledgers as creating a verified “transaction block” takes work as well.

     

    [video=youtube]

     

    All of this is from google, I copied it.

  2. Jaxx mobile app on Android gets stuck on launch screen.

     

    Just double check, it takes around 49 seconds to load up. That might appear as if it's stuck, but in actual fact it's merely connecting to all the nodes on the backend. 

     

    They should look at it or at least give some indication on the loading screen.

  3. Thanks for your informative review Ranger. I'm drawn towards Jaxx but I would like to nibble into Ripple and I see it doesn't have that. I see you have tried the Blockchain.info wallet, where can I find a list of its altcoins? Also how do you rate Electrum (offline wallet) in this equation?

     

    For ripple you will need to follow this guide that ranger made, I can't seem to find a reliable ripple wallet other than the one that comes with that platform they used in the tutorial.

     

    https://platinumwealth.co.za/forum/showthread.php?tid=365

  4. @leetpro do you only use nicehash or does your rigs run proprietary software as well like eOS0 etc?

     

    I've heard you guys run a little more rigs than the average guy, what do you use to monitor each one or do you have a screen connected to each?

  5. Mmm, this is interesting and would be nice to get involved. However signed up on Nicehash and ran into a brick wall. :-O. Anyone have a guide on what/how to buy or select the correct thing for those people like me that dont understand all the big words? :-)

     

    Getting started is easy, making it work consistently takes time. There is a lot of small things that is different on each computer.

     

    To get started download the miner -> https://www.nicehash.com/index.jsp?p=nhmintro

     

    Then extract that file to your desktop.

     

    Then click on the nicehash exe inside and let the program run, follow the steps and then enter your bitcoin address. After that you are mining.

     

    marketplace.jpg

  6. Did any of you ran into this issue yet?

     

    After about 10 hours I get this:

    No connection could be made because the target machine actively refused it 127.0.0.1:4006

     

    Here is my log output:

    [2017-05-12 11:22:11] [iNFO] [NICEHASH] SMA get
    [2017-05-12 11:22:43] [iNFO] [NICEHASH] Balance get
    [2017-05-12 11:23:52] [iNFO] [MiningSession] Current Global profit: 18.25122547 USD/Day
    [2017-05-12 11:23:52] [iNFO] [MiningSession] Current Global profit: IS PROFITABLE MinProfit mine always regardless of profit
    [2017-05-12 11:23:52] [iNFO] [MiningSession] PrevStateProfit 0.0101735947275296, CurrentProfit 0.0101735947275296
    [2017-05-12 11:23:52] [iNFO] [MiningSession] Will not switch profit diff is 0, current threshold 0.05
    [2017-05-12 11:24:11] [iNFO] [NICEHASH] SMA get
    [2017-05-12 11:25:16] [iNFO] [excavator-MINER_ID(7)-DEVICE_IDs(0,1,2,3,4,5)] [pid(5996)|bin(bin\excavator\excavator.exe)] Miner_Exited Will restart in 5000 ms
    [2017-05-12 11:25:18] [iNFO] [excavator-MINER_ID(7)-DEVICE_IDs(0,1,2,3,4,5)] [pid(5996)|bin(bin\excavator\excavator.exe)] Restarting miner..
    [2017-05-12 11:25:18] [iNFO] [excavator-MINER_ID(7)-DEVICE_IDs(0,1,2,3,4,5)] [pid(5996)|bin(bin\excavator\excavator.exe)] Shutting down miner
    [2017-05-12 11:25:18] [iNFO] [excavator-MINER_ID(7)-DEVICE_IDs(0,1,2,3,4,5)] Starting miner [pid(8684)|bin(bin\excavator\excavator.exe)]  -cd 0 0 1 1 2 2 3 3 4 4 5 5   -a equihash -p 4006 -s equihash.eu.nicehash.com:3357 -u mybicoinaddresstookitouthere.SCearth:x
    [2017-05-12 11:25:18] [iNFO] [excavator-MINER_ID(7)-DEVICE_IDs(0,1,2,3,4,5)] [pid(8684)|bin(bin\excavator\excavator.exe)] Starting cooldown checker
    [2017-05-12 11:25:20] [iNFO] [excavator-MINER_ID(7)-DEVICE_IDs(0,1,2,3,4,5)] [pid(8684)|bin(bin\excavator\excavator.exe)] Miner_Exited Will restart in 5000 ms
    [2017-05-12 11:25:23] [iNFO] [excavator-MINER_ID(7)-DEVICE_IDs(0,1,2,3,4,5)] [pid(8684)|bin(bin\excavator\excavator.exe)] Restarting miner..

  7. This is a great post thanks.

    Did I read correctly you will be running close to 100 rigs? That is a serious investment. So for mining it is go big or go home!

     

    I can comment on the second bit of your post. The profitability aspect.

     

    You can make money with just one rig as well. Each rig must pay for itself. So if you buy one rig, depending on graphics cards will cost you between R29K and R59k. Assuming you go Radeon 470/580s (the more affordable cards) the 29K - 39K rig, you should still net at least 2K in profit after costs and paying off the rig (Assuming you leverage the bank.).

     

    The rig should pay itself within 7 months so after that clean profit and if you keep the bulk in the crypto currency you will net that growth as well.

  8. For these who are not aware, what Ranger is referring to is Microsoft's new venture called Blockchain as a Service (BaaS). While Microsoft's BaaS is designed to work with a range of protocols, it has shown a preference for the ethereum blockchain. They are collaborating with JP Morgan Chase and Intel to bring the Ethereum platform into American homes by enabling their subscription services to be bought via the Ethereum smart contracts using Ether.

     

    It is therefore possible to believe that they will put further development and resources into creating Ethereum specific exchanges and wallets with ease of use in mind.

  9. The Electrum Client (Downloadable at https://www.dash.org/downloads/) focuses on speed, with low resource usage and simplifying Dash usage. Startup times are instant because it operates in conjunction with high-performance servers that handle the most complicated parts of the Dash system.

     

    The Electrum is a lightweight Wallet, you do NOT need to download or Sync the Blockchain (so the Wallet is lighter and faster)

     

    But it is missing Dash "Features" as

    • PrivacyProtect
    • InstantX
    • Mastered Connection
    • Voting
    • but it is much easier, faster and lighter to handle.

    How to install

    Mac Installation:

    PC Installation:

    Download and run the one labelled “Windows Installer”.

     

    Linux Installation:

    Using the Terminal application, run the following commands:

    $sudo apt-get install python-qt4 python-pip python-slowaes
    $sudo pip install https://www.dash.org/binaries/Electrum-DASH-2.4.1_Linux_x86_64-Installer.bin
    $electrum

     

    1. Download Electrum-DASH-2.4.1_Linux_x86_64-Installer.bin from here https://www.dash.org/downloads/ 
    2. Open terminal, CD to location of file download.
    3. 'LS' command, make sure Electrum-DASH-2.4.1_Linux_x86_64-Installer.bin is listed.
    4. chmod +x Electrum-DASH-2.4.1_Linux_x86_64-Installer.bin
    5. paste the following code into terminal ./Electrum-DASH-2.4.1_Linux_x86_64-Installer.bin

    These commands will change when a new version of electrum is released because the file name will also be changed. 

     

    So I wouldn't go pasting this anywhere, if you do remove the 2.4.1_linux_x86 and note that the exact name needs to be used.

     

    Since Ubuntu 14.04 they made it possible to install Electrum through the Software Center. Click the briefcase icon to the left of the Ubuntu desktop. Then enter “electrum” into the search box of the Software Center window.

  10. Sorry for being a bit blonde but, where does Pay Fast fit in ?

     

    This girls has Bitcoins and wants 2 shop  ;-)

     

    Pay Fast is a South African Payment Gateway - They enable merchants like Takealot to accept Mastercard/VISA as well as Bitcoin, so technically you should be able to buy with bitcoin from any store that uses PayFast.

     

    Assuming this is up to date: https://www.payfast.co.za/online-merchants-who-use-payfast/

  11. [video=youtube]

     

    Quants - The Alchemists of Wall Street

     

    Quants are the math wizards and computer programmers in the engine room of our global financial system who designed the financial products that almost crashed Wall street. The credit crunch has shown how the global financial system has become increasingly dependent on mathematical models trying to quantify human (economic) behaviour. Now the quants are at the heart of yet another technological revolution in finance: trading at the speed of light. 

     

    What are the risks of treating the economy and its markets as a complex machine? Will we be able to keep control of this model-based financial system, or have we created a monster? A story about greed, fear and randomness from the insides of Wall Street.

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