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    Home Unlabelled Bitcoin I burned my old life and started over from scratch in order to regain my privacy. This is the brain dump of everything I learned along the way.

    Bitcoin I burned my old life and started over from scratch in order to regain my privacy. This is the brain dump of everything I learned along the way.

    October 12, 2018

    Bitcoin I burned my old life and started over from scratch in order to regain my privacy. This is the brain dump of everything I learned along the way.

    I burned my old life and started over from scratch in order to regain my privacy. This is the brain dump of everything I learned along the way.

    Posted: 29 Sep 2018 08:10 AM PDT

    Daily Discussion, October 12, 2018

    Posted: 12 Oct 2018 02:00 AM PDT

    Please utilize this sticky thread for all general Bitcoin discussions! If you see posts on the front page or /r/Bitcoin/new which are better suited for this daily discussion thread, please help out by directing the OP to this thread instead. Thank you!

    Daily threads are fast paced! If you don't get an answer to your question, you can try phrasing it differently or commenting again tomorrow.

    We have a couple chat rooms now. Come say hello.

    Please check the previous discussion thread for unanswered questions.

    submitted by /u/rBitcoinMod
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    What about your 401k though? Is it up 0.23% or 0.28%?

    Posted: 11 Oct 2018 04:32 PM PDT

    ⚡Lightning Network at the Senate - Counterargument to Roubini's speech that Bitcoin can never scale to serve the planet

    Posted: 12 Oct 2018 02:51 AM PDT

    An easter egg in the Bitcoin genesis block code

    Posted: 12 Oct 2018 12:04 AM PDT

    I'm surprised no one has ever found this before.

    ​

    If we look at the original code for bitcoin on sourceforge, we can see this comment on line 1616:

     // txNew.vin[0].scriptSig = 486604799 4 0x736B6E616220726F662074756F6C69616220646E6F63657320666F206B6E697262206E6F20726F6C6C65636E61684320393030322F6E614A2F33302073656D695420656854

    This is basically the signature that is meant to link it to the previous block. Since this is the genesis block, there is no previous block to be linked to, the content can be anything.

    ​

    Now, lets take that hash and run it through a simple HEX to TEXT converter:

    0x736B6E616220726F662074756F6C69616220646E6F63657320666F206B6E697262206E6F20726F6C6C65636E61684320393030322F6E614A2F33302073656D695420656854

    sknab rof tuoliab dnoces fo knirb no rollecnahC 9002/naJ/30 semiT ehT

    ​

    Interesting, no?

    ​

    Everyone knows about the encoded message "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks" but it's also hidden the the tx hash, but mirrored.

    ​

    submitted by /u/lewtr
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    Congratulations US senators for understanding crypto better than this guy

    Posted: 11 Oct 2018 09:55 AM PDT

    Happy Friday all you high rollers =)

    Posted: 12 Oct 2018 03:30 AM PDT

    Liquid Network - the world’s first production Bitcoin sidechain has officially gone live

    Posted: 12 Oct 2018 01:06 AM PDT

    I just had fun drawing a few lines in photoshop

    Posted: 12 Oct 2018 03:01 AM PDT

    Roubini

    Posted: 11 Oct 2018 11:22 AM PDT

    1.65 Million people are attending over 5,000 Bitcoin meetups around the world. Organic interest/curiosity is real!

    Posted: 11 Oct 2018 02:21 PM PDT

    Study Reveals Bitcoin Is Surprisingly Stable Financially

    Posted: 11 Oct 2018 08:31 PM PDT

    Venezuelans Play RuneScape To Make Small Profit In Bitcoin

    Posted: 12 Oct 2018 03:31 AM PDT

    ELI5/15/25/FAQ for Statechains: Off-chain Transfer of UTXO Ownership

    Posted: 11 Oct 2018 10:22 PM PDT

    ​

    Move bitcoin UTXOs entirely off-chain. Enables instant off-chain creation of Lightning channels, with the ability to easily add or remove funds, and more.

    Links: presentation | transcript | slides | paper

    Follow @SomsenRuben on Twitter

    ​

    ELI5

    Statechains let you spend bitcoins without using the bitcoin blockchain ("off-chain"). Spending the bitcoins requires the help of a third party. If they don't help, you can also do it without their help on the bitcoin blockchain. A little bit of trust is required.

    ​

    ELI15

    You lock up bitcoins on-chain with a third party -- the Statechain entity. In order to transfer the bitcoins, you sign a message telling the entity that you want to move the coins to a new owner. You simultaneously pass on your transitory key to that new owner, meaning both of you have equal control over the coins. The entity ensures that only the wishes of the last owner get fulfilled. If they misbehave, it is easily detectable.

    ​

    ELI25

    Bob (B) locks up coins with Statechain entity A, but instead of using his key B, he creates and uses a transitory key X (this private key will be exposed to future owners). An off-chain timelock transaction will be created back to B, ensuring the coins return to Bob in case of a dispute. If Bob wants to send his coins to Carol, he does three things:

    • He signs a message stating he wants to transfer the coins to Carol (signed by B and C)
    • Together with the entity, he signs a bitcoin timelock transaction for Carol (signed by A and X)
    • These signatures are swapped atomically using Adaptor Signatures (preventing problems with aborting the protocol)

    We use Eltoo to ensure the new timelock transaction takes precedence over the old one(s). Multiple UTXOs can be swapped simultaneously as well. For more details, check out the presentation and paper.

    ​

    FAQ

    ​

    Q1: If I have 1 BTC locked up on a Statechain, can I send less than that amount?

    A1: You can think of Statechains as the equivalent of real-life coins. In order to send less, you will first have to trade your 1 BTC for smaller amounts. E.g. You can swap your 1 BTC coin for two 0.5 BTC coins. You can do this trade with anyone who is online and willing. Alternatively, you can create a Lightning channel on top of a Statechain.

    ​

    Q2: How does Lightning function on top of Statechains?

    A2: It ends up working quite elegantly. If Bob wants to send coins to Carol, he can create a channel instead. From the perspective of the Statechain, this means both Bob and Carol must agree before the coins can move, and they can proceed to build their Lightning channel on top of it. Because channel creation happens off-chain, you gain some tremendous benefits. It becomes very easy to recreate the channel, and add or remove funds.

    ​

    Q3: Aren't Statechains less secure than Lightning?

    A3: Yes, you're making a trade-off. The Statechain entity should be a federation of multiple entities, similar to Liquid. This means a majority needs to become dishonest before you can lose money. They also require the cooperation of a prior owner (someone that knows the transitory key) before they can steal anything. Theoretically we can add an extra layer of security by using Hardware Security Modules (HSM) to transfer the transitory key, but this technology is not mature enough.

    ​

    Q4: Why not just use federated sidechains instead?

    A4: The transitory key adds additional security. If the federation goes rogue, they will only be able to obtain a small subset of all transitory keys. As soon as they steal any coins, people without compromised transitory keys can safely withdraw on-chain. This is because you can always redeem your coins on the bitcoin blockchain without specifically asking the federation for permission. From a legal perspective, the entity cannot be seen as a money transmitter, because they lack direct access to the transitory keys (similar to greenaddress), so the barrier to operating a Statechain is much lower.

    ​

    Q5: How does this compare to Lightning channel factories?

    A5: Lightning channel factories require less security trade-offs, but you can only change channels with the people inside your factory, and it requires all of them to be online. Anthony Towns and Olaoluwa Osuntokun ( u/roasbeef ) pointed out that factories can be useful on top of Statechains, because it lowers the required number of on-chain UTXOs per user, and you can add/remove users from the factory off-chain.

    ​

    Q6: What are my options if I want to exit a Statechain?

    A6: Everyone has a valid on-chain transaction that they can use at any time to redeem their bitcoins, but it is more efficient to close the channel cooperatively. Assuming graftroot gets adopted, this would be the ideal way to exit the system, because it allows the owner to decide what the redemption transaction will look like, and it even gives them the ability to withdraw coins from different bitcoin hard forks (if any occurred during the time the coins were in the Statechain). This solves the problem of uncertainty over which coins will be honored in case of a hard fork (ETF, exchanges, etc).

    ​

    If you have any other questions, please post them below and I'll do my best to answer them.

    ​

    submitted by /u/RubenSomsen
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    How is Bitmex the biggest exchange... total joke. I hope their competitors crush them.

    Posted: 11 Oct 2018 04:42 PM PDT

    Bitcoin was a tool that was born of the economic crisis some 10 years ago, does that mean another big recession or banking collapse could catapult it forward?

    Posted: 11 Oct 2018 10:16 AM PDT

    We are three months away from Bitcoins 10 year anniversary.

    Posted: 11 Oct 2018 03:42 AM PDT

    Art imitates life(my thoughts on how what we are witnessing is truly epic)

    Posted: 11 Oct 2018 08:59 PM PDT

    I wrote this as a reply to someone who asked me what the fed is dealing with right now. I am sharing it because it made me realize how truly worthy of a movie this all is. One day we might watch said movie and think back to how crazy of a time this is economically:

    "The fed is trying to reverse the course it has been on for the past ten years. They are trying to get rates to the "normal" range after being so low for so long. The problem is that it affects the price of bonds in a way that the 2 year bond becomes more expensive than the ten year bond. This is called a "yield curve inversion". Every time this has happened a recession has come within 6-12 months of that. Also, rising bond rates entices investors to become interested in bonds again because they are a safe way to make money (for obvious reasons). This obviously pulls money from the stock market because people are trying to diversify their portfolios and find ways to make money. If you Google the Dow Jones average the past couple of days you will see there is a major correction going on. Also, trump knows this is what's happening and has publicly made statements about how he thinks the fed is being too aggressive with the rate hikes. It's dangerous to invert the yield curve right now because rates are still historically low. This is dangerous because the fed typically lowers rates during recessions to take pressure off the economy to help turn it around. If they don't have the tools they need to fight off a recession we might have to go back into another round of quantitative easing and might even face negative interest rates and another "great recession" or worse. Imagine a bank account that takes money out of your account because you park it there? Bonds won't yield anything and stocks/house prices will shoot through the roof again because that's the only place investors will be able to make/protect their money. The only place besides bitcoin, of course. The government won't be able to touch that and bakkt will allow pretty much anyone an onramp. Also, trade wars are adding to the pressure of all of this. It's some pretty fucked up stuff. So if the stock market goes through more of these corrections or even encounters a crash, the publics sentiment of what bitcoin is will be visible by seeing how the price holds up. If the price remains relatively stable... Then WOW. Buy some more because we will have something outside of government control that people truly believe in. This really is like the season finale to the bitcoin saga. Real life really does write the best stories sometimes. The timing of all this couldn't have been any more epic. Unbelievable."

    submitted by /u/eleven8ster
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    Inflated Fiat Money headed for massive Depreciation

    Posted: 11 Oct 2018 05:53 PM PDT

    My First Meme, I think it encapsulates my feelings towards bitcoin nicely

    Posted: 11 Oct 2018 02:47 PM PDT

    Zimbabwe spirals into economic chaos as fears of another round of hyperinflation begin to spark - another fiat currency fails!

    Posted: 11 Oct 2018 07:34 AM PDT

    Bitcoin is all grown up!

    Posted: 11 Oct 2018 11:16 AM PDT

    So a bunch of physicist set out to analyse Bitcoin using the same methods that were used to evaluate if the new EU emerging markets in the post socialist era were stable and mature or likely to collapse. Some highlights from the article:

    • An analysis was carried out for changes of the Bitcoin price in the period from 2012 to April 2018, posted in one-minute sequences. Rates of return were first in line. There is good quantitative evidence that in a mature market and in sufficiently short time scales their probability distributions are subject to inverse cubic law. [...] "Later on, the rates of return fluctuated according to the inverse cubic law".

    • "In the case of Bitcoin, we detected multifractality in the functions of fluctuations in rates of return, particularly evident in the last six months of the examined period. This was of the same type as for regular, mature markets, such as the stock, dollar, oil or bond markets."

    • It turns out that for the Bitcoin market, the Hurst exponent approaches 0.5, which is characteristic of markets with a high reputation.

    • The most important statistical parameters of the Bitcoin market indicate very clearly that for many months now it has met all the important criteria of financial maturity.

    Wonder what Roubini, Schiller, Krugman and the other veryverysaltyTM bunch of nocoiners will say about this.

     

    Full text: https://phys.org/news/2018-10-bitcoin-dollar.html

    Edit: Technical paper: https://arxiv.org/abs/1804.05916

    submitted by /u/DesignerAccount
    [link] [comments]

    Houston - we have a problem.

    Posted: 11 Oct 2018 09:04 PM PDT

    A bitcoin miner has been sent to prison for stealing electricity from trains

    Posted: 11 Oct 2018 09:58 PM PDT

    We finally got our RaspiBlitz case to a level we love! Time for load testing to check thermals, final mods are almost done!

    Posted: 11 Oct 2018 12:29 PM PDT

    Bitcoin got mentioned in Netflix Show "Big Mouth" (S2E5 @ 6:30)

    Posted: 11 Oct 2018 01:56 PM PDT

    There was an attempt

    Posted: 11 Oct 2018 08:31 AM PDT
    Read more
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