Give me your best answer as to why network statistics (hashrate, difficulty, block size/time) is important to bitcoins long/short term value?
I'm sick and tired of seeing posts about "bitcoin is going to be $XXXXXX". Lets talk about bitcoins health rather than wealth. I learn a lot from meaningful and resourceful posts but it is unfortionate that those posts have become rare. Please and thank you!
https://github.com/gridcoin-community/Gridcoin-Research/releases/tag/22.214.171.124 Finally! After over ten months of development and testing, "Fern" has arrived! This is a whopper. 240 pull requests merged. Essentially a complete rewrite that was started with the scraper (the "neural net" rewrite) in "Denise" has now been completed. Practically the ENTIRE Gridcoin specific codebase resting on top of the vanilla Bitcoin/Peercoin/Blackcoin vanilla PoS code has been rewritten. This removes the team requirement at last (see below), although there are many other important improvements besides that. Fern was a monumental undertaking. We had to encode all of the old rules active for the v10 block protocol in new code and ensure that the new code was 100% compatible. This had to be done in such a way as to clear out all of the old spaghetti and ring-fence it with tightly controlled class implementations. We then wrote an entirely new, simplified ruleset for research rewards and reengineered contracts (which includes beacon management, polls, and voting) using properly classed code. The fundamentals of Gridcoin with this release are now on a very sound and maintainable footing, and the developers believe the codebase as updated here will serve as the fundamental basis for Gridcoin's future roadmap. We have been testing this for MONTHS on testnet in various stages. The v10 (legacy) compatibility code has been running on testnet continuously as it was developed to ensure compatibility with existing nodes. During the last few months, we have done two private testnet forks and then the full public testnet testing for v11 code (the new protocol which is what Fern implements). The developers have also been running non-staking "sentinel" nodes on mainnet with this code to verify that the consensus rules are problem-free for the legacy compatibility code on the broader mainnet. We believe this amount of testing is going to result in a smooth rollout. Given the amount of changes in Fern, I am presenting TWO changelogs below. One is high level, which summarizes the most significant changes in the protocol. The second changelog is the detailed one in the usual format, and gives you an inkling of the size of this release.
Note that the protocol changes will not become active until we cross the hard-fork transition height to v11, which has been set at 2053000. Given current average block spacing, this should happen around October 4, about one month from now. Note that to get all of the beacons in the network on the new protocol, we are requiring ALL beacons to be validated. A two week (14 day) grace period is provided by the code, starting at the time of the transition height, for people currently holding a beacon to validate the beacon and prevent it from expiring. That means that EVERY CRUNCHER must advertise and validate their beacon AFTER the v11 transition (around Oct 4th) and BEFORE October 18th (or more precisely, 14 days from the actual date of the v11 transition). If you do not advertise and validate your beacon by this time, your beacon will expire and you will stop earning research rewards until you advertise and validate a new beacon. This process has been made much easier by a brand new beacon "wizard" that helps manage beacon advertisements and renewals. Once a beacon has been validated and is a v11 protocol beacon, the normal 180 day expiration rules apply. Note, however, that the 180 day expiration on research rewards has been removed with the Fern update. This means that while your beacon might expire after 180 days, your earned research rewards will be retained and can be claimed by advertising a beacon with the same CPID and going through the validation process again. In other words, you do not lose any earned research rewards if you do not stake a block within 180 days and keep your beacon up-to-date. The transition height is also when the team requirement will be relaxed for the network.
Besides the beacon wizard, there are a number of improvements to the GUI, including new UI transaction types (and icons) for staking the superblock, sidestake sends, beacon advertisement, voting, poll creation, and transactions with a message. The main screen has been revamped with a better summary section, and better status icons. Several changes under the hood have improved GUI performance. And finally, the diagnostics have been revamped.
The wallet sync speed has been DRASTICALLY improved. A decent machine with a good network connection should be able to sync the entire mainnet blockchain in less than 4 hours. A fast machine with a really fast network connection and a good SSD can do it in about 2.5 hours. One of our goals was to reduce or eliminate the reliance on snapshots for mainnet, and I think we have accomplished that goal with the new sync speed. We have also streamlined the in-memory structures for the blockchain which shaves some memory use. There are so many goodies here it is hard to summarize them all. I would like to thank all of the contributors to this release, but especially thank @cyrossignol, whose incredible contributions formed the backbone of this release. I would also like to pay special thanks to @barton2526, @caraka, and @Quezacoatl1, who tirelessly helped during the testing and polishing phase on testnet with testing and repeated builds for all architectures. The developers are proud to present this release to the community and we believe this represents the starting point for a true renaissance for Gridcoin!
Most significantly, nodes calculate research rewards directly from the magnitudes in EACH superblock between stakes instead of using a two- or three- point average based on a CPID's current magnitude and the magnitude for the CPID when it last staked. For those long-timers in the community, this has been referred to as "Superblock Windows," and was first done in proof-of-concept form by @denravonska.
Network magnitude unit pinned to a static value of 0.25
Max research reward allowed per block raised to 16384 GRC (from 12750 GRC)
New CPIDs begin accruing research rewards from the first superblock that contains the CPID instead of from the time of the beacon advertisement
500 GRC research reward limit for a CPID's first stake
6-month expiration for unclaimed rewards
10-block spacing requirement between research reward claims
Rolling 5-day payment-per-day limit
Legacy tolerances for floating-point error and time drift
The need to include a valid copy of a CPID's magnitude in a claim
10-block emission adjustment interval for the magnitude unit
One-time beacon activation requires that participants temporarily change their usernames to a verification code at one whitelisted BOINC project
Verification codes of pending beacons expire after 3 days
Self-service beacon removal
Burn fee for beacon advertisement increased from 0.00001 GRC to 0.5 GRC
Rain addresses derived from beacon keys instead of a default wallet address
Beacon expiration determined as of the current block instead of the previous block
The ability for developers to remove beacons
The ability to sign research reward claims with non-current but unexpired beacons
As a reminder:
Beacons expire after 6 months pass (180 days)
Beacons can be renewed after 5 months pass (150 days)
Renewed beacons must be signed with the same key as the original beacon
Magnitudes less than 1 include two fractional places
Magnitudes greater than or equal to 1 but less than 10 include one fractional place
A valid superblock must match a scraper convergence
Superblock popularity election mechanics
Yes/no/abstain and single-choice response types (no user-facing support yet)
To create a poll, a maximum of 250 UTXOs for a single address must add up to 100000 GRC. These are selected from the largest downwards.
Burn fee for creating polls scaled by the number of UTXOs claimed
50 GRC for a poll contract
0.001 GRC per claimed UTXO
Burn fee for casting votes scaled by the number of UTXOs claimed
0.01 GRC for a vote contract
0.01 GRC to claim magnitude
0.01 GRC per claimed address
0.001 GRC per claimed UTXO
Maximum length of a poll title: 80 characters
Maximum length of a poll question: 100 characters
Maximum length of a poll discussion website URL: 100 characters
Maximum number of poll choices: 20
Maximum length of a poll choice label: 100 characters
Magnitude, CPID count, and participant count poll weight types
The ability for developers to remove polls and votes
[126.96.36.199] 2020-09-03, mandatory, "Fern"
Backport newer uint256 types from Bitcoin #1570 (@cyrossignol)
Implement project level rain for rainbymagnitude #1580 (@jamescowens)
Upgrade utilities (Update checker and snapshot downloadeapplication) #1576 (@iFoggz)
Provide fees collected in the block by the miner #1601 (@iFoggz)
Add support for generating legacy superblocks from scraper stats #1603 (@cyrossignol)
Port of the Bitcoin Logger to Gridcoin #1600 (@jamescowens)
Implement zapwallettxes #1605 (@jamescowens)
Implements a global event filter to suppress help question mark #1609 (@jamescowens)
Add next target difficulty to RPC output #1615 (@cyrossignol)
Add caching for block hashes to CBlock #1624 (@cyrossignol)
Make toolbars and tray icon red for testnet #1637 (@jamescowens)
Add an rpc call convergencereport #1643 (@jamescowens)
Implement newline filter on config file read in #1645 (@jamescowens)
Implement beacon status icon/button #1646 (@jamescowens)
Add gridcointestnet.png #1649 (@caraka)
Add precision to support magnitudes less than 1 #1651 (@cyrossignol)
Replace research accrual calculations with superblock snapshots #1657 (@cyrossignol)
Publish example gridcoinresearch.conf as a md document to the doc directory #1662 (@jamescowens)
Add options checkbox to disable transaction notifications #1666 (@jamescowens)
Add support for self-service beacon deletion #1695 (@cyrossignol)
Add support for type-specific contract fee amounts #1698 (@cyrossignol)
Add verifiedbeaconreport and pendingbeaconreport #1696 (@jamescowens)
Add preliminary testing option for block v11 height on testnet #1706 (@cyrossignol)
Add verified beacons manifest part to superblock validator #1711 (@cyrossignol)
Implement beacon, vote, and superblock display categories/icons in UI transaction model #1717 (@jamescowens)
Taproot, CoinJoins, and Cross-Input Signature Aggregation
It is a very common misconception that the upcoming Taproot upgrade helps CoinJoin. TLDR: The upcoming Taproot upgrade does not help equal-valued CoinJoin at all, though it potentially increases the privacy of other protocols, such as the Lightning Network, and escrow contract schemes. If you want to learn more, read on!
Let's start with equal-valued CoinJoins, the type JoinMarket and Wasabi use. What happens is that some number of participants agree on some common value all of them use. With JoinMarket the taker defines this value and pays the makers to agree to it, with Wasabi the server defines a value approximately 0.1 BTC. Then, each participant provides inputs that they unilaterally control, totaling equal or greater than the common value. Typically since each input is unilaterally controlled, each input just requires a singlesig. Each participant also provides up to two addresses they control: one of these will be paid with the common value, while the other will be used for any extra value in the inputs they provided (i.e. the change output). The participants then make a single transaction that spends all the provided inputs and pays out to the appropriate outputs. The inputs and outputs are shuffled in some secure manner. Then the unsigned transaction is distributed back to all participants. Finally, each participant checks that the transaction spends the inputs it provided (and more importantly does not spend any other coins it might own that it did not provide for this CoinJoin!) and that the transaction pays out to the appropriate address(es) it controls. Once they have validated the transaction, they ratify it by signing for each of the inputs it provided. Once every participant has provided signatures for all inputs it registered, the transaction is now completely signed and the CoinJoin transaction is now validly confirmable. CoinJoin is a very simple and direct privacy boost, it requires no SCRIPTs, needs only singlesig, etc.
Let's say we have two participants who have agreed on a common amount of 0.1 BTC. One provides a 0.105 coin as input, the other provides a 0.114 coin as input. This results in a CoinJoin with a 0.105 coin and a 0.114 coin as input, and outputs with 0.1, 0.005, 0.014, and 0.1 BTC. Now obviously the 0.005 output came from the 0.105 input, and the 0.014 output came from the 0.114 input. But the two 0.1 BTC outputs cannot be correlated with either input! There is no correlating information, since either output could have come from either input. That is how common CoinJoin implementations like Wasabi and JoinMarket gain privacy.
Unfortunately, large-scale CoinJoins like that made by Wasabi and JoinMarket are very obvious. All you have to do is look for a transactions where, say, more than 3 outputs are the same equal value, and the number of inputs is equal or larger than the number of equal-valued outputs. Thus, it is trivial to identify equal-valued CoinJoins made by Wasabi and JoinMarket. You can even trivially differentiate them: Wasabi equal-valued CoinJoins are going to have a hundred or more inputs, with outputs that are in units of approximately 0.1 BTC, while JoinMarket CoinJoins have equal-valued outputs of less than a dozen (between 4 to 6 usually) and with the common value varying wildly from as low as 0.001 BTC to as high as a dozen BTC or more. This has led to a number of anti-privacy exchanges to refuse to credit custodially-held accounts if the incoming deposit is within a few hops of an equal-valued CoinJoin, usually citing concerns about regulations. Crucially, the exchange continues to hold private keys for those "banned" deposits, and can still spend them, thus this is effectively a theft. If your exchange does this to you, you should report that exchange as stealing money from its customers. Not your keys not your coins. Thus, CoinJoins represent a privacy tradeoff:
It's very hard for everyone else to determine which output belongs to which input.
It's obvious to everyone else that the output was involved in a mixing operation.
Let's now briefly discuss that nice new shiny thing called Taproot. Taproot includes two components:
The use of Schnorr-based signature scheme, with multisignature support. Spending from a Schnorr pubkey is called a "keypath spend".
The ability to secretly commit to a set of scripts, one of which can be revealed later and its inputs provided correctly in order to spend the coin. Spending via a hidden script is called a "scriptpath spend".
This has some nice properties:
Direct multisignature support means all multisignature uses look the same. In current Bitcoin, a 2-of-2 "multisignature" is really a script which demands that two signatures be provided, from 2 different pre-specified public keys. To a cryptographer, the strict definition of multisignature is that this is a single signature that is cooperatively created by multiple parties.
A typical minimal "multisig" setup would be a 2-of-3, because that lets you lose one signing device while still being able to keep access to your money, and still providing an increase in security relative to a singlesig, since a 2-of-3 requires that potential thieves abscond with at least two signing devices. In current Bitcoin, a 2-of-3 is a SCRIPT containing 3 public keys, requiring that two signatures from those three public keys be provided.
But a Lightning Network channel has exactly two participants. Thus, it uses a 2-of-2, and is a SCRIPT containing 2 public keys, requiring that two signatures from those public keys be provided. If you look for 2-of-2 spends on the blockchain after Lightning became cool, the chances are very good that a random 2-of-2 spend is a Lightning Network channel being closed, because there are hardly ever any other uses of 2-of-2.
Just from there, you can easily differentiate the most common HODLer multisig of 2-of-3 (SCRIPT contains 3 pubkeys) from the Lightning channel 2-of-2 (SCRIPT contains 2 pubkeys).
Fortunately, with Taproot, 2-of-3 and 2-of-2 (and any arbitrary k-of-n) can look exactly the same, because Schnorr allows for the cryptographer's strict definition of "multisignature": a single signature cooperatively created by multiple parties.
Complex SCRIPTs, like HTLCs, can be hidden in a Taproot output.
For example, the output can have a keyspend branch that is a n-of-n of all participants, with hidden SCRIPTs that encode the conditions under which the output can be spent
The hidden SCRIPTs ensure that the protocol is followed. If one of the participants drops from the protocol, the rest can reveal the hidden SCRIPTs and follow their conditions.
If everyone follows the protocol correctly, and agrees to the result, they can all cooperatively sign with the keyspend n-of-n. They can just all agree on what the result of the SCRIPTs would be, and sign a transaction that performs that, without revealing any SCRIPTs. Since all of them agreed on the result, nobody should complain (if one of them believes the result is not correct, they can just refuse to sign and force everyone else to publish the SCRIPTs onchain).
If everyone agrees, they get privacy: none of the SCRIPTs they were following ever get published onchain, and it looks like every other multisignature spend.
Taproot DOES NOT HELP CoinJoin
So let's review! CoinJoin:
CoinJoin inputs are singlesig
There are no SCRIPTs involved in CoinJoin.
Improves multisig privacy.
Improves SCRIPT privacy.
There is absolutely no overlap. Taproot helps things that CoinJoin does not use. CoinJoin uses things that Taproot does not improve.
B-but They Said!!
A lot of early reporting on Taproot claimed that Taproot benefits CoinJoin. What they are confusing is that earlier drafts of Taproot included a feature called cross-input signature aggregation. In current Bitcoin, every input, to be spent, has to be signed individually. With cross-input signature aggregation, all inputs that support this feature are signed with a single signature that covers all those inputs. So for example if you would spend two inputs, current Bitcoin requires a signature for each input, but with cross-input signature aggregation you can sign both of them with a single signature. This works even if the inputs have different public keys: two inputs with cross-input signature aggregation effectively define a 2-of-2 public key, and you can only sign for that input if you know the private keys for both inputs, or if you are cooperatively signing with somebody who knows the private key of the other input. This helps CoinJoin costs. Since CoinJoins will have lots of inputs (each participant will provide at least one, and probably will provide more, and larger participant sets are better for more privacy in CoinJoin), if all of them enabled cross-input signature aggregation, such large CoinJoins can have only a single signature. This complicates the signing process for CoinJoins (the signers now have to sign cooperatively) but it can be well worth it for the reduced signature size and onchain cost. But note that the while cross-input signature aggregation improves the cost of CoinJoins, it does not improve the privacy! Equal-valued CoinJoins are still obvious and still readily bannable by privacy-hating exchanges. It does not improve the privacy of CoinJoin. Instead, see https://old.reddit.com/Bitcoin/comments/gqb3udesign_for_a_coinswap_implementation_fo
Why isn't cross-input signature aggregation in?
There's some fairly complex technical reasons why cross-input signature aggregation isn't in right now in the current Taproot proposal. The primary reason was to reduce the technical complexity of Taproot, in the hope that it would be easier to convince users to activate (while support for Taproot is quite high, developers have become wary of being hopeful that new proposals will ever activate, given the previous difficulties with SegWit). The main technical complexity here is that it interacts with future ways to extend Bitcoin. The rest of this writeup assumes you already know about how Bitcoin SCRIPT works. If you don't understand how Bitcoin SCRIPT works at the low-level, then the TLDR is that cross-input signature aggregation complicates how to extend Bitcoin in the future, so it was deferred to let the develoeprs think more about it. (this is how I understand it; perhaps pwuille or ajtowns can give a better summary.) In detail, Taproot also introduces OP_SUCCESS opcodes. If you know about the OP_NOP opcodes already defined in current Bitcoin, well, OP_SUCCESS is basically "OP_NOP done right". Now, OP_NOP is a do-nothing operation. It can be replaced in future versions of Bitcoin by having that operation check some condition, and then fail if the condition is not satisfied. For example, both OP_CHECKLOCKTIMEVERIFY and OP_CHECKSEQUENCEVERIFY were previously OP_NOP opcodes. Older nodes will see an OP_CHECKLOCKTIMEVERIFY and think it does nothing, but newer nodes will check if the nLockTime field has a correct specified value, and fail if the condition is not satisfied. Since most of the nodes on the network are using much newer versions of the node software, older nodes are protected from miners who try to misspend any OP_CHECKLOCKTIMEVERIFY/OP_CHECKSEQUENCEVERIFY, and those older nodes will still remain capable of synching with the rest of the network: a dedication to strict backward-compatibility necessary for a consensus system. Softforks basically mean that a script that passes in the latest version must also be passing in all older versions. A script cannot be passing in newer versions but failing in older versions, because that would kick older nodes off the network (i.e. it would be a hardfork). But OP_NOP is a very restricted way of adding opcodes. Opcodes that replace OP_NOP can only do one thing: check if some condition is true. They can't push new data on the stack, they can't pop items off the stack. For example, suppose instead of OP_CHECKLOCKTIMEVERIFY, we had added a OP_GETBLOCKHEIGHT opcode. This opcode would push the height of the blockchain on the stack. If this command replaced an older OP_NOP opcode, then a script like OP_GETBLOCKHEIGHT 650000 OP_EQUAL might pass in some future Bitcoin version, but older versions would see OP_NOP 650000 OP_EQUAL, which would fail because OP_EQUAL expects two items on the stack. So older versions will fail a SCRIPT that newer versions will pass, which is a hardfork and thus a backwards incompatibility. OP_SUCCESS is different. Instead, old nodes, when parsing the SCRIPT, will see OP_SUCCESS, and, without executing the body, will consider the SCRIPT as passing. So, the OP_GETBLOCKHEIGHT 650000 OP_EQUAL example will now work: a future version of Bitcoin might pass it, and existing nodes that don't understand OP_GETBLOCKHEIGHT will se OP_SUCCESS 650000 OP_EQUAL, and will not execute the SCRIPT at all, instead passing it immediately. So a SCRIPT that might pass in newer versions will pass for older versions, which keeps the back-compatibility consensus that a softfork needs. So how does OP_SUCCESS make things difficult for cross-input signatur aggregation? Well, one of the ways to ask for a signature to be verified is via the opcodes OP_CHECKSIGVERIFY. With cross-input signature aggregation, if a public key indicates it can be used for cross-input signature aggregation, instead of OP_CHECKSIGVERIFY actually requiring the signature on the stack, the stack will contain a dummy 0 value for the signature, and the public key is instead added to a "sum" public key (i.e. an n-of-n that is dynamically extended by one more pubkey for each OP_CHECKSIGVERIFY operation that executes) for the single signature that is verified later by the cross-input signature aggregation validation algorithm00. The important part here is that the OP_CHECKSIGVERIFY has to execute, in order to add its public key to the set of public keys to be checked in the single signature. But remember that an OP_SUCCESS prevents execution! As soon as the SCRIPT is parsed, if any opcode is OP_SUCCESS, that is considered as passing, without actually executing the SCRIPT, because the OP_SUCCESS could mean something completely different in newer versions and current versions should assume nothing about what it means. If the SCRIPT contains some OP_CHECKSIGVERIFY command in addition to an OP_SUCCESS, that command is not executed by current versions, and thus they cannot add any public keys given by OP_CHECKSIGVERIFY. Future versions also have to accept that: if they parsed an OP_SUCCESS command that has a new meaning in the future, and then execute an OP_CHECKSIGVERIFY in that SCRIPT, they cannot add the public key into the same "sum" public key that older nodes use, because older nodes cannot see them. This means that you might need more than one signature in the future, in the presence of an opcode that replaces some OP_SUCCESS. Thus, because of the complexity of making cross-input signature aggregation work compatibly with future extensions to the protocol, cross-input signature aggregation was deferred.
Stakenet (XSN) - A DEX with interchain capabilities (BTC-ETH), Huge Potential [Full Writeup]
Preface Full disclosure here; I am heavily invested in this. I have picked up some real gems from here and was only in the position to buy so much of this because of you guys so I thought it was time to give back. I only invest in Utility Coins. These are coins that actually DO something, and provide new/build upon the crypto infrastructure to work towards the end goal that Bitcoin itself set out to achieve(financial independence from the fiat banking system). This way, I avoid 99% of the scams in crypto that are functionless vapourware, and if you only invest in things that have strong fundamentals in the long term you are much more likely to make money. Introduction
Stakenet is a Lightning Network-ready open-source platform for decentralized applications with its native cryptocurrency – XSN. It is powered by a Proof of Stake blockchain with trustless cold staking and Masternodes. Its use case is to provide a highly secure cross-chain infrastructure for these decentralized applications, where individuals can easily operate with any blockchain simply by using Stakenet and its native currency XSN.
Ok... but what does it actually do and solve? The moonshot here is the DEX (Decentralised Exchange) that they are building. This is a lightning-network DEX with interchain capabilities. That means you could trade BTC directly for ETH; securely, instantly, cheaply and privately. Right now, most crypto is traded to and from Centralised Exchanges like Binance. To buy and sell on these exchanges, you have to send your crypto wallets on that exchange. That means the exchanges have your private keys, and they have control over your funds. When you use a centralised exchange, you are no longer in control of your assets, and depend on the trustworthiness of middlemen. We have in the past of course seen infamous exit scams by centralised exchanges like Mt. Gox. The alternative? Decentralised Exchanges. DEX's have no central authority and most importantly, your private keys(your crypto) never leavesYOUR possession and are never in anyone else's possession. So you can trade peer-to-peer without any of the drawbacks of Centralised Exchanges. The problem is that this technology has not been perfected yet, and the DEX's that we have available to us now are not providing cheap, private, quick trading on a decentralised medium because of their technological inadequacies. Take Uniswap for example. This DEX accounts for over 60% of all DEX volume and facilitates trading of ERC-20 tokens, over the Ethereum blockchain. The problem? Because of the huge amount of transaction that are occurring over the Ethereum network, this has lead to congestion(too many transaction for the network to handle at one time) so the fees have increased dramatically. Another big problem? It's only for Ethereum. You cant for example, Buy LINK with BTC. You must use ETH. The solution? Layer 2 protocols. These are layers built ON TOP of existing blockchains, that are designed to solve the transaction and scaling difficulties that crypto as a whole is facing today(and ultimately stopping mass adoption) The developers at Stakenet have seen the big picture, and have decided to implement the lightning network(a layer 2 protocol) into its DEX from the ground up. This will facilitate the functionalities of a DEX without any of the drawbacks of the CEX's and the DEX's we have today. Heres someone much more qualified than me, Andreas Antonopoulos, to explain this https://streamable.com/kzpimj 'Once we have efficient, well designed DEX's on layer 2, there wont even be any DEX's on layer 1' Progress The Stakenet team were the first to envision this grand solution and have been working on it since its conception in June 2019. They have been making steady progress ever since and right now, the DEX is in an open beta stage where rigorous testing is constant by themselves and the public. For a project of this scale, stress testing is paramount. If the product were to launch with any bugs/errors that would result in the loss of a users funds, this would obviously be very damaging to Stakenet's reputation. So I believe that the developers conservative approach is wise. As of now the only pairs tradeable on the DEX are XSN/BTC and LTC/BTC. The DEX has only just launched as a public beta and is not in its full public release stage yet. As development moves forward more lightning network and atomic swap compatible coins will be added to the DEX, and of course, the team are hard at work on Raiden Integration - this will allow ETH and tokens on the Ethereum blockchain to be traded on the DEX between separate blockchains(instantly, cheaply, privately) This is where Stakenet enters top 50 territory on CMC if successful and is the true value here. Raiden Integration is well underway is being tested in a closed public group on Linux. The full public DEX with Raiden Integration is expected to release by the end of the year. Given the state of development so far and the rate of progress, this seems realistic. Tokenomics 2.6 Metrics overview (from whitepaper)
Ticker: XSN. Currency type: Coin.
Consensus: Minting Proof of Stake, Trustless Proof of Stake.
XSN is slightly inflationary, much like ETH as this is necessary for the economy to be adopted and work in the long term. There is however a deflationary mechanism in place - all trading fees on the DEX get converted to XSN and 10% of these fees are burned. This puts constant buying pressure on XSN and acts as a deflationary mechanism. XSN has inherent value because it makes up the infrastructure that the DEX will run off and as such Masternode operators and Stakers will see the fee's from the DEX. Conclusion We can clearly see that a layer 2 DEX is the future of crypto currency trading. It will facilitate secure, cheap, instant and private trading across all coins with lightning capabilities, thus solving the scaling and transaction issues that are holding back crypto today. I dont need to tell you the implications of this, and what it means for crypto as a whole. If Stakenet can launch a layer 2 DEX with Raiden Integration, It will become the primary DEX in terms of volume. Stakenet DEX will most likely be the first layer 2 DEX(first mover advantage) and its blockchain is the infrastructure that will host this DEX and subsequently receive it's trading fee's. It is not difficult to envision a time in the next year when Stakenet DEX is functional and hosting hundreds of millions of dollars worth of trading every single day. At $30 million market cap, I cant see any other potential investment right now with this much potential upside. This post has merely served as in introduction and a heads up for this project, there is MUCH more to cover like vortex liquidity, masternodes, TOR integration... for now, here is some additional reading. Resources
I built a decentralized legal-binding smart contract system. I need peer reviewers and whitepaper proof readers. Help greatly appreciated!
I posted this on /cryptotechnology . It attracted quite a bit of upvotes but not many potential contributors. Someone mentioned I should try this sub. I read the rules and it seems to fit within them. Hope this kind of post is alright here... EDIT: My mother language is french (I'm from Montreal/Canada). Please excuse any blatant grammatical errors. TLDR: I built a decentralized legal-binding smart contract system. I need peer reviewers and whitepaper proof readers. If you're interested, send me an email to discuss: [email protected] . Thanks in advance! Hi guys, For the last few years, I've been working on a decentralized legal-binding contract system. Basically, I created a PoW blockchain software that can receive a hash as an address, and another hash as a bucket, in each transaction. The address hash is used to tell a specific entity (application/contract/company/person, etc) that uses the blockchain that this transaction might be addressed to them. The bucket hash simply tells the nodes which hashtree of files they need to download in order to execute that contract. The buckets are shared within the network of nodes. Someone could, for example, write a contract with a series of nodes in order to host their data for them. Buckets can hold any kind of data, and can be of any size... including encrypted data. The blockchain's blocks are chained together using a mining system similar to bitcoin (hashcash algorithm). Each block contains transactions. The requested difficulty increases when the amount of transactions in a block increases, linearly. Then, when a block is mined properly, another smaller mining effort is requested to link the block to the network's head block. To replace a block, you need to create another block with more transactions than the amount that were transacted in and after the mined block. I expect current payment processors to begin accepting transactions and mine them for their customers and make money with fees, in parallel. Using such a mechanism, miners will need to have a lot of bandwidth available in order to keep downloading the blocks of other miners, just like the current payment processors. The contracts is code written in our custom programming language. Their code is pushed using a transaction, and hosted in buckets. Like you can see, the contract's data are off-chain, only its bucket hash is on-chain. The contract can be used to listen to events that occurs on the blockchain, in any buckets hosted by nodes or on any website that can be crawled and parsed in the contract. There is also an identity system and a vouching system...which enable the creation of soft-money (promise of future payment in hard money (our cryptocurrency) if a series of events arrive). The contracts can also be compiled to a legal-binding framework and be potentially be used in court. The contracts currently compile to english and french only. I also built a browser that contains a 3D viewport, using OpenGL. The browser contains a domain name system (DNS) in form of contracts. Anyone can buy a new domain by creating a transaction with a bucket that contains code to reserve a specific name. When a user request a domain name, it discovers the bucket that is attached to the domain, download that bucket and executes its scripts... which renders in the 3D viewport. When people interact with an application, the application can create contracts on behalf of the user and send them to the blockchain via a transaction. This enables normal users (non-developers) to interact with others using legal contracts, by using a GUI software. The hard money (cryptocurrency) is all pre-mined and will be sold to entities (people/company) that want to use the network. The hard money can be re-sold using the contract proposition system, for payment in cash or a bank transfer. The fiat funds will go to my company in order to create services that use this specific network of contracts. The goal is to use the funds to make the network grow and increase its demand in hard money. For now, we plan to create: A logistic and transportation company A delivery company A company that buy and sell real estate options A company that manage real estate A software development company A world-wide fiat money transfer company A payment processor company We chose these niche because our team has a lot of experience in these areas: we currently run companies in these fields. These niche also generate a lot of revenue and expenses, making the value of exchanges high. We expect this to drive volume in contracts, soft-money and hard-money exchanges. We also plan to use the funds to create a venture capital fund that invests in startups that wants to create contracts on our network to execute a specific service in a specific niche. I'm about to release the software open source very soon and begin executing our commercial activities on the network. Before launching, I'd like to open a discussion with the community regarding the details of how this software works and how it is explained in the whitepaper. If you'd like to read the whitepaper and open a discussion with me regarding how things work, please send me an email at [email protected] . If you have any comment, please comment below and Ill try to answer every question. Please note that before peer-reviewing the software and the whitepaper, I'd like to keep the specific details of the software private, but can discuss the general details. A release date will be given once my work has been peer reviewed. Thanks all in advance! P.S: This project is not a competition to bitcoin. My goal with this project is to enable companies to write contracts together, easily follow events that are executed in their contracts, understand what to expect from their partnership and what they need to give in order to receive their share of deals... and sell their contracts that they no longer need to other community members. Bitcoin already has a network of people that uses it. It has its own value. In fact, I plan to create contracts on our network to exchange value from our network for bitcoin and vice-versa. Same for any commodity and currency that currently exits in this world.
Hey all, I've been researching coins since 2017 and have gone through 100s of them in the last 3 years. I got introduced to blockchain via Bitcoin of course, analyzed Ethereum thereafter and from that moment I have a keen interest in smart contact platforms. I’m passionate about Ethereum but I find Zilliqa to have a better risk-reward ratio. Especially because Zilliqa has found an elegant balance between being secure, decentralized and scalable in my opinion.
Below I post my analysis of why from all the coins I went through I’m most bullish on Zilliqa (yes I went through Tezos, EOS, NEO, VeChain, Harmony, Algorand, Cardano etc.). Note that this is not investment advice and although it's a thorough analysis there is obviously some bias involved. Looking forward to what you all think!
Fun fact: the name Zilliqa is a play on ‘silica’ silicon dioxide which means “Silicon for the high-throughput consensus computer.”
This post is divided into (i) Technology, (ii) Business & Partnerships, and (iii) Marketing & Community. I’ve tried to make the technology part readable for a broad audience. If you’ve ever tried understanding the inner workings of Bitcoin and Ethereum you should be able to grasp most parts. Otherwise, just skim through and once you are zoning out head to the next part.
Technology and some more:
The technology is one of the main reasons why I’m so bullish on Zilliqa. First thing you see on their website is: “Zilliqa is a high-performance, high-security blockchain platform for enterprises and next-generation applications.” These are some bold statements.
Before we deep dive into the technology let’s take a step back in time first as they have quite the history. The initial research paper from which Zilliqa originated dates back to August 2016: Elastico: A Secure Sharding Protocol For Open Blockchains where Loi Luu (Kyber Network) is one of the co-authors. Other ideas that led to the development of what Zilliqa has become today are: Bitcoin-NG, collective signing CoSi, ByzCoin and Omniledger.
The technical white paper was made public in August 2017 and since then they have achieved everything stated in the white paper and also created their own open source intermediate level smart contract language called Scilla (functional programming language similar to OCaml) too.
Mainnet is live since the end of January 2019 with daily transaction rates growing continuously. About a week ago mainnet reached 5 million transactions, 500.000+ addresses in total along with 2400 nodes keeping the network decentralized and secure. Circulating supply is nearing 11 billion and currently only mining rewards are left. The maximum supply is 21 billion with annual inflation being 7.13% currently and will only decrease with time.
Zilliqa realized early on that the usage of public cryptocurrencies and smart contracts were increasing but decentralized, secure, and scalable alternatives were lacking in the crypto space. They proposed to apply sharding onto a public smart contract blockchain where the transaction rate increases almost linear with the increase in the amount of nodes. More nodes = higher transaction throughput and increased decentralization. Sharding comes in many forms and Zilliqa uses network-, transaction- and computational sharding. Network sharding opens up the possibility of using transaction- and computational sharding on top. Zilliqa does not use state sharding for now. We’ll come back to this later.
Before we continue dissecting how Zilliqa achieves such from a technological standpoint it’s good to keep in mind that a blockchain being decentralised and secure and scalable is still one of the main hurdles in allowing widespread usage of decentralised networks. In my opinion this needs to be solved first before blockchains can get to the point where they can create and add large scale value. So I invite you to read the next section to grasp the underlying fundamentals. Because after all these premises need to be true otherwise there isn’t a fundamental case to be bullish on Zilliqa, right?
Down the rabbit hole
How have they achieved this? Let’s define the basics first: key players on Zilliqa are the users and the miners. A user is anybody who uses the blockchain to transfer funds or run smart contracts. Miners are the (shard) nodes in the network who run the consensus protocol and get rewarded for their service in Zillings (ZIL). The mining network is divided into several smaller networks called shards, which is also referred to as ‘network sharding’. Miners subsequently are randomly assigned to a shard by another set of miners called DS (Directory Service) nodes. The regular shards process transactions and the outputs of these shards are eventually combined by the DS shard as they reach consensus on the final state. More on how these DS shards reach consensus (via pBFT) will be explained later on.
The Zilliqa network produces two types of blocks: DS blocks and Tx blocks. One DS Block consists of 100 Tx Blocks. And as previously mentioned there are two types of nodes concerned with reaching consensus: shard nodes and DS nodes. Becoming a shard node or DS node is being defined by the result of a PoW cycle (Ethash) at the beginning of the DS Block. All candidate mining nodes compete with each other and run the PoW (Proof-of-Work) cycle for 60 seconds and the submissions achieving the highest difficulty will be allowed on the network. And to put it in perspective: the average difficulty for one DS node is ~ 2 Th/s equaling 2.000.000 Mh/s or 55 thousand+ GeForce GTX 1070 / 8 GB GPUs at 35.4 Mh/s. Each DS Block 10 new DS nodes are allowed. And a shard node needs to provide around 8.53 GH/s currently (around 240 GTX 1070s). Dual mining ETH/ETC and ZIL is possible and can be done via mining software such as Phoenix and Claymore. There are pools and if you have large amounts of hashing power (Ethash) available you could mine solo.
The PoW cycle of 60 seconds is a peak performance and acts as an entry ticket to the network. The entry ticket is called a sybil resistance mechanism and makes it incredibly hard for adversaries to spawn lots of identities and manipulate the network with these identities. And after every 100 Tx Blocks which corresponds to roughly 1,5 hour this PoW process repeats. In between these 1,5 hour, no PoW needs to be done meaning Zilliqa’s energy consumption to keep the network secure is low. For more detailed information on how mining works click here. Okay, hats off to you. You have made it this far. Before we go any deeper down the rabbit hole we first must understand why Zilliqa goes through all of the above technicalities and understand a bit more what a blockchain on a more fundamental level is. Because the core of Zilliqa’s consensus protocol relies on the usage of pBFT (practical Byzantine Fault Tolerance) we need to know more about state machines and their function. Navigate to Viewblock, a Zilliqa block explorer, and just come back to this article. We will use this site to navigate through a few concepts.
We have established that Zilliqa is a public and distributed blockchain. Meaning that everyone with an internet connection can send ZILs, trigger smart contracts, etc. and there is no central authority who fully controls the network. Zilliqa and other public and distributed blockchains (like Bitcoin and Ethereum) can also be defined as state machines.
Taking the liberty of paraphrasing examples and definitions given by Samuel Brooks’ medium article, he describes the definition of a blockchain (like Zilliqa) as: “A peer-to-peer, append-only datastore that uses consensus to synchronize cryptographically-secure data”.
Next, he states that: "blockchains are fundamentally systems for managing valid state transitions”. For some more context, I recommend reading the whole medium article to get a better grasp of the definitions and understanding of state machines. Nevertheless, let’s try to simplify and compile it into a single paragraph. Take traffic lights as an example: all its states (red, amber, and green) are predefined, all possible outcomes are known and it doesn’t matter if you encounter the traffic light today or tomorrow. It will still behave the same. Managing the states of a traffic light can be done by triggering a sensor on the road or pushing a button resulting in one traffic lights’ state going from green to red (via amber) and another light from red to green.
With public blockchains like Zilliqa, this isn’t so straightforward and simple. It started with block #1 almost 1,5 years ago and every 45 seconds or so a new block linked to the previous block is being added. Resulting in a chain of blocks with transactions in it that everyone can verify from block #1 to the current #647.000+ block. The state is ever changing and the states it can find itself in are infinite. And while the traffic light might work together in tandem with various other traffic lights, it’s rather insignificant comparing it to a public blockchain. Because Zilliqa consists of 2400 nodes who need to work together to achieve consensus on what the latest valid state is while some of these nodes may have latency or broadcast issues, drop offline or are deliberately trying to attack the network, etc.
Now go back to the Viewblock page take a look at the amount of transaction, addresses, block and DS height and then hit refresh. Obviously as expected you see new incremented values on one or all parameters. And how did the Zilliqa blockchain manage to transition from a previous valid state to the latest valid state? By using pBFT to reach consensus on the latest valid state.
After having obtained the entry ticket, miners execute pBFT to reach consensus on the ever-changing state of the blockchain. pBFT requires a series of network communication between nodes, and as such there is no GPU involved (but CPU). Resulting in the total energy consumed to keep the blockchain secure, decentralized and scalable being low.
pBFT stands for practical Byzantine Fault Tolerance and is an optimization on the Byzantine Fault Tolerant algorithm. To quote Blockonomi: “In the context of distributed systems, Byzantine Fault Tolerance is the ability of a distributed computer network to function as desired and correctly reach a sufficient consensus despite malicious components (nodes) of the system failing or propagating incorrect information to other peers.” Zilliqa is such a distributed computer network and depends on the honesty of the nodes (shard and DS) to reach consensus and to continuously update the state with the latest block. If pBFT is a new term for you I can highly recommend the Blockonomi article.
The idea of pBFT was introduced in 1999 - one of the authors even won a Turing award for it - and it is well researched and applied in various blockchains and distributed systems nowadays. If you want more advanced information than the Blockonomi link provides click here. And if you’re in between Blockonomi and the University of Singapore read the Zilliqa Design Story Part 2 dating from October 2017. Quoting from the Zilliqa tech whitepaper: “pBFT relies upon a correct leader (which is randomly selected) to begin each phase and proceed when the sufficient majority exists. In case the leader is byzantine it can stall the entire consensus protocol. To address this challenge, pBFT offers a view change protocol to replace the byzantine leader with another one.”
pBFT can tolerate ⅓ of the nodes being dishonest (offline counts as Byzantine = dishonest) and the consensus protocol will function without stalling or hiccups. Once there are more than ⅓ of dishonest nodes but no more than ⅔ the network will be stalled and a view change will be triggered to elect a new DS leader. Only when more than ⅔ of the nodes are dishonest (66%) double-spend attacks become possible.
If the network stalls no transactions can be processed and one has to wait until a new honest leader has been elected. When the mainnet was just launched and in its early phases, view changes happened regularly. As of today the last stalling of the network - and view change being triggered - was at the end of October 2019.
Another benefit of using pBFT for consensus besides low energy is the immediate finality it provides. Once your transaction is included in a block and the block is added to the chain it’s done. Lastly, take a look at this article where three types of finality are being defined: probabilistic, absolute and economic finality. Zilliqa falls under the absolute finality (just like Tendermint for example). Although lengthy already we skipped through some of the inner workings from Zilliqa’s consensus: read the Zilliqa Design Story Part 3 and you will be close to having a complete picture on it. Enough about PoW, sybil resistance mechanism, pBFT, etc. Another thing we haven’t looked at yet is the amount of decentralization.
Currently, there are four shards, each one of them consisting of 600 nodes. 1 shard with 600 so-called DS nodes (Directory Service - they need to achieve a higher difficulty than shard nodes) and 1800 shard nodes of which 250 are shard guards (centralized nodes controlled by the team). The amount of shard guards has been steadily declining from 1200 in January 2019 to 250 as of May 2020. On the Viewblock statistics, you can see that many of the nodes are being located in the US but those are only the (CPU parts of the) shard nodes who perform pBFT. There is no data from where the PoW sources are coming. And when the Zilliqa blockchain starts reaching its transaction capacity limit, a network upgrade needs to be executed to lift the current cap of maximum 2400 nodes to allow more nodes and formation of more shards which will allow to network to keep on scaling according to demand. Besides shard nodes there are also seed nodes. The main role of seed nodes is to serve as direct access points (for end-users and clients) to the core Zilliqa network that validates transactions. Seed nodes consolidate transaction requests and forward these to the lookup nodes (another type of nodes) for distribution to the shards in the network. Seed nodes also maintain the entire transaction history and the global state of the blockchain which is needed to provide services such as block explorers. Seed nodes in the Zilliqa network are comparable to Infura on Ethereum.
The seed nodes were first only operated by Zilliqa themselves, exchanges and Viewblock. Operators of seed nodes like exchanges had no incentive to open them for the greater public. They were centralised at first. Decentralisation at the seed nodes level has been steadily rolled out since March 2020 ( Zilliqa Improvement Proposal 3 ). Currently the amount of seed nodes is being increased, they are public-facing and at the same time PoS is applied to incentivize seed node operators and make it possible for ZIL holders to stake and earn passive yields. Important distinction: seed nodes are not involved with consensus! That is still PoW as entry ticket and pBFT for the actual consensus.
5% of the block rewards are being assigned to seed nodes (from the beginning in 2019) and those are being used to pay out ZIL stakers. The 5% block rewards with an annual yield of 10.03% translate to roughly 610 MM ZILs in total that can be staked. Exchanges use the custodial variant of staking and wallets like Moonlet will use the non-custodial version (starting in Q3 2020). Staking is being done by sending ZILs to a smart contract created by Zilliqa and audited by Quantstamp.
With a high amount of DS; shard nodes and seed nodes becoming more decentralized too, Zilliqa qualifies for the label of decentralized in my opinion.
Generalized: programming languages can be divided into being ‘object-oriented’ or ‘functional’. Here is an ELI5 given by software development academy: * “all programs have two basic components, data – what the program knows – and behavior – what the program can do with that data. So object-oriented programming states that combining data and related behaviors in one place, is called “object”, which makes it easier to understand how a particular program works. On the other hand, functional programming argues that data and behavior are different things and should be separated to ensure their clarity.” *
Scilla is on the functional side and shares similarities with OCaml: OCaml is a general-purpose programming language with an emphasis on expressiveness and safety. It has an advanced type system that helps catch your mistakes without getting in your way. It's used in environments where a single mistake can cost millions and speed matters, is supported by an active community, and has a rich set of libraries and development tools. For all its power, OCaml is also pretty simple, which is one reason it's often used as a teaching language.
Scilla is blockchain agnostic, can be implemented onto other blockchains as well, is recognized by academics and won a so-called Distinguished Artifact Award award at the end of last year.
One of the reasons why the Zilliqa team decided to create their own programming language focused on preventing smart contract vulnerabilities is that adding logic on a blockchain, programming, means that you cannot afford to make mistakes. Otherwise, it could cost you. It’s all great and fun blockchains being immutable but updating your code because you found a bug isn’t the same as with a regular web application for example. And with smart contracts, it inherently involves cryptocurrencies in some form thus value.
Another difference with programming languages on a blockchain is gas. Every transaction you do on a smart contract platform like Zilliqa or Ethereum costs gas. With gas you basically pay for computational costs. Sending a ZIL from address A to address B costs 0.001 ZIL currently. Smart contracts are more complex, often involve various functions and require more gas (if gas is a new concept click here ).
So with Scilla, similar to Solidity, you need to make sure that “every function in your smart contract will run as expected without hitting gas limits. An improper resource analysis may lead to situations where funds may get stuck simply because a part of the smart contract code cannot be executed due to gas limits. Such constraints are not present in traditional software systems”.Scilla design story part 1
Some examples of smart contract issues you’d want to avoid are: leaking funds, ‘unexpected changes to critical state variables’ (example: someone other than you setting his or her address as the owner of the smart contract after creation) or simply killing a contract.
Scilla also allows for formal verification. Wikipedia to the rescue: In the context of hardware and software systems, formal verification is the act of proving or disproving the correctness of intended algorithms underlying a system with respect to a certain formal specification or property, using formal methods of mathematics.
Formal verification can be helpful in proving the correctness of systems such as: cryptographic protocols, combinational circuits, digital circuits with internal memory, and software expressed as source code.
“Scilla is being developed hand-in-hand with formalization of its semantics and its embedding into the Coq proof assistant — a state-of-the art tool for mechanized proofs about properties of programs.”
Simply put, with Scilla and accompanying tooling developers can be mathematically sure and proof that the smart contract they’ve written does what he or she intends it to do.
Smart contract on a sharded environment and state sharding
There is one more topic I’d like to touch on: smart contract execution in a sharded environment (and what is the effect of state sharding). This is a complex topic. I’m not able to explain it any easier than what is posted here. But I will try to compress the post into something easy to digest.
Earlier on we have established that Zilliqa can process transactions in parallel due to network sharding. This is where the linear scalability comes from. We can define simple transactions: a transaction from address A to B (Category 1), a transaction where a user interacts with one smart contract (Category 2) and the most complex ones where triggering a transaction results in multiple smart contracts being involved (Category 3). The shards are able to process transactions on their own without interference of the other shards. With Category 1 transactions that is doable, with Category 2 transactions sometimes if that address is in the same shard as the smart contract but with Category 3 you definitely need communication between the shards. Solving that requires to make a set of communication rules the protocol needs to follow in order to process all transactions in a generalised fashion.
There is no strict defined roadmap but here are topics being worked on. And via the Zilliqa website there is also more information on the projects they are working on.
Business & Partnerships
It’s not only technology in which Zilliqa seems to be excelling as their ecosystem has been expanding and starting to grow rapidly. The project is on a mission to provide OpenFinance (OpFi) to the world and Singapore is the right place to be due to its progressive regulations and futuristic thinking. Singapore has taken a proactive approach towards cryptocurrencies by introducing the Payment Services Act 2019 (PS Act). Among other things, the PS Act will regulate intermediaries dealing with certain cryptocurrencies, with a particular focus on consumer protection and anti-money laundering. It will also provide a stable regulatory licensing and operating framework for cryptocurrency entities, effectively covering all crypto businesses and exchanges based in Singapore. According to PWC 82% of the surveyed executives in Singapore reported blockchain initiatives underway and 13% of them have already brought the initiatives live to the market. There is also an increasing list of organizations that are starting to provide digital payment services. Moreover, Singaporean blockchain developers Building Cities Beyond has recently created an innovation $15 million grant to encourage development on its ecosystem. This all suggests that Singapore tries to position itself as (one of) the leading blockchain hubs in the world.
Zilliqa seems to already take advantage of this and recently helped launch Hg Exchange on their platform, together with financial institutions PhillipCapital, PrimePartners and Fundnel. Hg Exchange, which is now approved by the Monetary Authority of Singapore (MAS), uses smart contracts to represent digital assets. Through Hg Exchange financial institutions worldwide can use Zilliqa's safe-by-design smart contracts to enable the trading of private equities. For example, think of companies such as Grab, Airbnb, SpaceX that are not available for public trading right now. Hg Exchange will allow investors to buy shares of private companies & unicorns and capture their value before an IPO. Anquan, the main company behind Zilliqa, has also recently announced that they became a partner and shareholder in TEN31 Bank, which is a fully regulated bank allowing for tokenization of assets and is aiming to bridge the gap between conventional banking and the blockchain world. If STOs, the tokenization of assets, and equity trading will continue to increase, then Zilliqa’s public blockchain would be the ideal candidate due to its strategic positioning, partnerships, regulatory compliance and the technology that is being built on top of it.
What is also very encouraging is their focus on banking the un(der)banked. They are launching a stablecoin basket starting with XSGD. As many of you know, stablecoins are currently mostly used for trading. However, Zilliqa is actively trying to broaden the use case of stablecoins. I recommend everybody to read this text that Amrit Kumar wrote (one of the co-founders). These stablecoins will be integrated in the traditional markets and bridge the gap between the crypto world and the traditional world. This could potentially revolutionize and legitimise the crypto space if retailers and companies will for example start to use stablecoins for payments or remittances, instead of it solely being used for trading.
Zilliqa also released their DeFi strategic roadmap (dating November 2019) which seems to be aligning well with their OpFi strategy. A non-custodial DEX is coming to Zilliqa made by Switcheo which allows cross-chain trading (atomic swaps) between ETH, EOS and ZIL based tokens. They also signed a Memorandum of Understanding for a (soon to be announced) USD stablecoin. And as Zilliqa is all about regulations and being compliant, I’m speculating on it to be a regulated USD stablecoin. Furthermore, XSGD is already created and visible on block explorer and XIDR (Indonesian Stablecoin) is also coming soon via StraitsX. Here also an overview of the Tech Stack for Financial Applications from September 2019. Further quoting Amrit Kumar on this:
There are two basic building blocks in DeFi/OpFi though: 1) stablecoins as you need a non-volatile currency to get access to this market and 2) a dex to be able to trade all these financial assets. The rest are built on top of these blocks.
So far, together with our partners and community, we have worked on developing these building blocks with XSGD as a stablecoin. We are working on bringing a USD-backed stablecoin as well. We will soon have a decentralised exchange developed by Switcheo. And with HGX going live, we are also venturing into the tokenization space. More to come in the future.”
Additionally, they also have this ZILHive initiative that injects capital into projects. There have been already 6 waves of various teams working on infrastructure, innovation and research, and they are not from ASEAN or Singapore only but global: see Grantees breakdown by country. Over 60 project teams from over 20 countries have contributed to Zilliqa's ecosystem. This includes individuals and teams developing wallets, explorers, developer toolkits, smart contract testing frameworks, dapps, etc. As some of you may know, Unstoppable Domains (UD) blew up when they launched on Zilliqa. UD aims to replace cryptocurrency addresses with a human-readable name and allows for uncensorable websites. Zilliqa will probably be the only one able to handle all these transactions onchain due to ability to scale and its resulting low fees which is why the UD team launched this on Zilliqa in the first place. Furthermore, Zilliqa also has a strong emphasis on security, compliance, and privacy, which is why they partnered with companies like Elliptic, ChainSecurity (part of PwC Switzerland), and Incognito. Their sister company Aqilliz (Zilliqa spelled backwards) focuses on revolutionizing the digital advertising space and is doing interesting things like using Zilliqa to track outdoor digital ads with companies like Foodpanda.
Zilliqa is listed on nearly all major exchanges, having several different fiat-gateways and recently have been added to Binance’s margin trading and futures trading with really good volume. They also have a very impressive team with good credentials and experience. They don't just have “tech people”. They have a mix of tech people, business people, marketeers, scientists, and more. Naturally, it's good to have a mix of people with different skill sets if you work in the crypto space.
Marketing & Community
Zilliqa has a very strong community. If you just follow their Twitter their engagement is much higher for a coin that has approximately 80k followers. They also have been ‘coin of the day’ by LunarCrush many times. LunarCrush tracks real-time cryptocurrency value and social data. According to their data, it seems Zilliqa has a more fundamental and deeper understanding of marketing and community engagement than almost all other coins. While almost all coins have been a bit frozen in the last months, Zilliqa seems to be on its own bull run. It was somewhere in the 100s a few months ago and is currently ranked #46 on CoinGecko. Their official Telegram also has over 20k people and is very active, and their community channel which is over 7k now is more active and larger than many other official channels. Their local communities also seem to be growing.
Moreover, their community started ‘Zillacracy’ together with the Zilliqa core team ( see www.zillacracy.com ). It’s a community-run initiative where people from all over the world are now helping with marketing and development on Zilliqa. Since its launch in February 2020 they have been doing a lot and will also run their own non-custodial seed node for staking. This seed node will also allow them to start generating revenue for them to become a self sustaining entity that could potentially scale up to become a decentralized company working in parallel with the Zilliqa core team. Comparing it to all the other smart contract platforms (e.g. Cardano, EOS, Tezos etc.) they don't seem to have started a similar initiative (correct me if I’m wrong though). This suggests in my opinion that these other smart contract platforms do not fully understand how to utilize the ‘power of the community’. This is something you cannot ‘buy with money’ and gives many projects in the space a disadvantage.
Zilliqa also released two social products called SocialPay and Zeeves. SocialPay allows users to earn ZILs while tweeting with a specific hashtag. They have recently used it in partnership with the Singapore Red Cross for a marketing campaign after their initial pilot program. It seems like a very valuable social product with a good use case. I can see a lot of traditional companies entering the space through this product, which they seem to suggest will happen. Tokenizing hashtags with smart contracts to get network effect is a very smart and innovative idea.
Regarding Zeeves, this is a tipping bot for Telegram. They already have 1000s of signups and they plan to keep upgrading it for more and more people to use it (e.g. they recently have added a quiz features). They also use it during AMAs to reward people in real-time. It’s a very smart approach to grow their communities and get familiar with ZIL. I can see this becoming very big on Telegram. This tool suggests, again, that the Zilliqa team has a deeper understanding of what the crypto space and community needs and is good at finding the right innovative tools to grow and scale.
To be honest, I haven’t covered everything (i’m also reaching the character limited haha). So many updates happening lately that it's hard to keep up, such as the International Monetary Fund mentioning Zilliqa in their report, custodial and non-custodial Staking, Binance Margin, Futures, Widget, entering the Indian market, and more. The Head of Marketing Colin Miles has also released this as an overview of what is coming next. And last but not least, Vitalik Buterin has been mentioning Zilliqa lately acknowledging Zilliqa and mentioning that both projects have a lot of room to grow. There is much more info of course and a good part of it has been served to you on a silver platter. I invite you to continue researching by yourself :-) And if you have any comments or questions please post here!
The world of DeFi is exploding but is it all it’s made out to be?
DeFi (decentralised finance) is most certainly the buzz in the crypto world this minute. It’s bringing similar feelings which was the 2017/18 ICO phase, where a mammoth of new projects begun to explode onto the scene, each with their own promise of new innovation and use case. Hindsight has shown us that most of those projects have ultimately failed, or worse, were outright scams that took advantage of not so wise investors looking to make a buck. Obviously, not all projects fit that description, with many teams still around today working on and delivering their individual visions. Crypto is, after all, still a big experiment of new technology.
Enter DeFi: Serum
DeFi has exploded into the limelight over the last few months, with some tokens appreciating hundreds of percent in price. It appears to be the catalyst that has driven a huge market shift in the crypto world, and for those who’ve been around a number of years, this is a welcome change. In this piece, I’m going to examine a particular project called Serum.
Serum is the world’s first completely decentralized derivatives exchange with trustless cross-chain trading brought to you by Project Serum.
The Serum Project is aiming to create both a decentralised exchange and a cross-chain swapping mechanism. In this article, I’m going to focus solely on the cross-chain swapping aspect of Serum. Although the Serum whitepaper is quite short and lacking in detail, it is useful to derive some understanding of how the cross-chain swapping protocol should work. Throughout this review, I will use it to describe how the imagined protocol works.
Let's assume Alice wants to trade some BTC for ETH and Bob wants to trade some ETH for BTC using Serum. These two users are matched and agree on a price using an on-chain order book on the Solana blockchain (whitepaper provides no practical details on how to do this). Once these users are matched, Bob must send the ETH he wants to trade to an Ethereum smart contract, plus some amount of ETH ~200 USD worth (see section 4 below) to the smart contract as collateral. Alice will also need to send some collateral to the smart contract. Once this initial setup process is complete Alice then has to send her BTC to Bob’s BTC address and if Bob receives the BTC from Alice he can then release his ETH from the smart contract sending it to Alice’s ETH address. Upon completion of this both Alice and Bob are refunded their ETH collateral. So what happens if something goes wrong? For example, say Alice never sends BTC to Bob, after some period of time Bob can initiate a dispute. When the dispute begins both Alice and Bob present a portion of the Bitcoin blockchain information to the smart contract (see section 3). The smart contract then decides whether or not Alice did send BTC to Bob. If she hasn’t then the smart contract returns Bob's ETH and collateral to Bob and also takes Alice’s ETH collateral and gives that to Bob. The same occurs in reverse if Alice sends BTC but Bob never approves the transfer of ETH from the smart contract. This scheme seems pretty simple, there’s no oracles and no centralised parties, however, it has a number of disadvantages.
1. User-Provided Collateral Is Bad for User Experience
Each time a user conducts a swap they must reserve some percentage or fixed amount to cover the collateral for the swap. This collateral amount needs to be present to prevent griefing attacks where users initiate swaps with no intention of ever following through and sending funds to the alternate participant. However, this creates a poor user experience as both Alice and Bob need to have at least the value of the dispute fee committed to the contract in collateral before they conduct a swap. This is totally foreign from the normal exchange experience in which you only require a single coin and a single transaction to begin trading. For example, if using Serum to trade Bitcoin you would need to hold Bitcoin and ~200$ of Ethereum and also interact with the Ethereum chain before any swap occurs. This adds unnecessary complexity and confusion, especially for newcomers to the crypto space.
2. ETH Must Always Be on One Side of the Swap
Although the Serum method of cross-chain swapping could occur on any blockchain with smart contracts, the Serum whitepaper makes it clear the Serum arbitration contract is going to be deployed on the Ethereum blockchain. This means one party must always be locking the full value of the trade in ETH using an Ethereum smart contract. This makes it impossible, for example, to do a single step trade between Bitcoin and Monero since the swap would need to be from Bitcoin to ETH first and then from ETH to Monero. This is comparable to other proposed cross-chain swap systems like Thorchain and Blockswap, however since those networks use AMM’s (automated market makers)and decentralized vaults to take custody of funds, the user needs not to interact with the intermediary chain at all. Instead in Serum, the user wanting to swap Bitcoin to Monero will need to do the following steps:
Send Ethereum collateral to the Serum arbitration contract
Send Bitcoin to the user they are swapping with.
Send Ethereum back to Serum arbitration contract
Send Ethereum out of Serum arbitration contract
Receive back Ethereum collateral
It might be possible to remove or simplify step 4, depending on how the smart contract is built, however, this means a swap from BTC to Monero would require 2 Ethereum and 1 Bitcoin transaction in the best-case scenario. Compared with the experience of other cross-chain swapping mechanisms, which only require the user to send a single transaction to swap between two assets, this is very poor user experience.
3. Proving Transactions on Arbitrary Chains to a Smart Contract Is Not Trivial
Perhaps the most central part of the Serum cross-chain swapping mechanism is left completely unexplored in the Serum whitepaper with only a brief explanation given.
“[The] Smart Contract is programmed to parse whether a proposed BTC blockchain is valid; it can then check which of Alice and Bob send the longer valid blockchain, and settle in their favor”
This is not a trivial problem, and it is unclear how this actually works from the explanation given in the Serum whitepaper. What actually needs to be presented to the smart contract to prove a Bitcoin transaction? Typically when talking about SPV the smart contract would need the block headers of all previous blocks and a merkle inclusion proof. This is far too heavy to submit in a dispute. Instead, Serum could use NIPoPoW, however, these proofs only work on chains with fixed difficulty and are still probably prohibitively too large (~100KB) to be submitted as a proof to a contract. Other solutions like Flyclient are more versatile, but proof sizes are much larger and have failed to see much real-world adoption. Without explaining how they actually plan to do this validation of Bitcoin transactions, users are left in the dark about how secure their solution actually is.
4. High Dispute Fees Force Large Collateral on Small Trades
Although disputes should almost never happen because of the incentives and punishments designed into the Serum protocol, the way they are designed has negative impacts on the use of the network. Although the Serum whitepaper does not say how the dispute mechanism works, they do say that it will cost about ~100 USD in GAS to dispute a swap. Note: keep in mind that the Serum paper was published in July 2020 when the gas price was about 50 Gwei, as Ethereum use has picked up over the past month we have seen average GAS prices as high as 250 Gwei, with the average price right now about 120 Gwei. This means that at the height of GAS prices it could have cost a user ~500 USD to dispute a swap. This means for the network to ensure losing cross-chain swaps aren’t made each user must deploy at least $200 in collateral on each side. It may be possible to lower this to collateral if we assume the attacker is not financially motivated, however, there is a lower bound in which ransom attacks become possible on low-value trades. Further and perhaps more damagingly, this means in a trade of any size the user needs to have at least 300 USD in ETH laying around. 100 USD in ETH for the required collateral and 200 USD if they need to challenge the transaction. This further adds to the poor user experience when using Serum for cross-chain swapping.
5. Swaps Are Not Set and Forget
Instead of being able to send a transaction and receive funds on the blockchain you are swapping to, the process is highly interactive. In the case where I am swapping ETH for Bitcoin, the following occurs:
Send a transaction to the Serum arbitration contract with my collateral.
Send a transaction to the Serum arbitration contract with the funds to be traded.
Wait until the Bitcoin transaction sent to my address has an acceptable amount of confirmations (up to 60 mins, depending on network congestion).
If the Bitcoin transaction is never received then I need to wait for a timeout to occur before I can participate in the dispute process.
Send a transaction to the Serum arbitration contract unlocking my funds and sending them to the participant.
And on the Bitcoin side (assuming the seller is ready), the following must take place:
Send my Ethereum collateral to the smart contract.
Send the Bitcoin.
Wait until the Seller has accepted that Bitcoin.
If the Seller never accepts the Bitcoin I sent to him then I need to wait on line for the dispute process.
Wait to receive my ETH + Collateral back.
This presents a strange user experience where the seller or seller’s wallet must be left online during this whole process and be ready to sign a new transaction if they need to dispute transactions or unlock funds from a smart contract. This is different from the typical exchange or swapping scenario in which, once your funds are sent you can be assured you will receive the amount you expected in your swap back to you, without any of your wallets needing to remain online.
6. The Serum Token Seems to Lack a Use Case
The cross-chain swapping protocol Serum describes in its whitepaper could easily be forked and launched on the Ethereum blockchain without having any need for the Serum token. It seems that the Serum token will be used in some capacity when placing orders on the Solana based blockchain, however, the order book could just as easily be placed off with traditional rate-limiting schemes. There is some brief mention of future governance abilities for token holders, however, as a common theme in their whitepaper, details are scarce:
Serum is anticipated to include a limited governance model based on the SRM token. While most of the Serum ecosystem will be immutable, some parameters without large security risks (e.g. future fees) may be modified via a governance vote of SRM tokens.
Until satisfactory answers are given to these questions I would be looking at other projects who are attempting to build platforms for cross-chain swaps. As previously mentioned, Thorchain & Blockswap show some promise in design, whilst there are some others competing in this space too, such as Incognito and RenVM. However, this area is still extremely immature so plenty of testing and time is required before we can call any of these projects a success. If you’ve got any feedback or thoughts about Serum, cross-chain swapping or DeFi in general, please don’t be shy in leaving a comment.
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
Sep 3, 2018 - Genesis block was mined, NewEnglandcoin created
Sep 8, 2018 - github source uploaded, Window wallet development work started
Sep 11,2018 - Window Qt Graphic wallet completed
Sep 12,2018 - NewEnglandcoin Launched in both Bitcointalk forum and Marinecoin forum
Sep 14,2018 - NewEnglandcoin is listed at ShorelineCrypto Exchange
Sep 17,2018 - Block Explorer is up
Nov 23,2018 - New Source/Wallet Release v1.1.1 - Enabled Dynamic Addjustment on Mining Hashing Difficulty
Nov 28,2018 - NewEnglandcoin became CPU minable coin
Nov 30,2018 - First Retail Real Life usage for NewEnglandcoin Announced
Dec 28,2018 - Cheetah_Cpuminer under Linux is released
Dec 31,2018 - NENG Technical Whitepaper is released
Jan 2,2019 - Cheetah_Cpuminer under Windows is released
Jan 12,2019 - NENG v1.1.2 is released to support MacOS GUI CLI Wallet
Jan 13,2019 - Cheetah_CpuMiner under Mac is released
Feb 11,2019 - NewEnglandcoin v1.2.0 Released, Anti-51% Attack, Anti-instant Mining after Hard Fork
Mar 16,2019 - NewEnglandcoin v188.8.131.52 Released - Ubuntu 18.04 Wallet Binary Files
Apr 7, 2019 - NENG Report on Security, Decentralization, Valuation
Apr 21, 2019 - NENG Fiat Project is Launched by ShorelineCrypto
Sep 1, 2019 - Shoreline Tradingbot project is Launched by ShorelineCrypto
Dec 19, 2019 - Shoreline Tradingbot v1.0 is Released by ShorelineCrypto
Jan 30, 2020 - Scrypt RandomSpike - NENG v1.3.0 Hardfork Proposed
Feb 24, 2020 - Scrypt RandomSpike - NENG core v1.3.0 Released
Jun 19, 2020 - Linux scripts for Futurebit Moonlander2 USB ASIC on solo mining Released
Jul 15, 2020 - NENG v1.4.0 Released for Android Mining and Ubuntu 20.04 support
Jul 21, 2020 - NENG v184.108.40.206 Released for MacOS Wallet Upgrade with Catalina
Jul 30, 2020 - NENG v220.127.116.11 Released for Linux Wallet Upgrade with 8 Distros
Aug 11, 2020 - NENG v18.104.22.168 Released for Android arm64 Upgrade, Chromebook Support
Aug 30, 2020 - NENG v22.214.171.124 Released for Android/Chromebook with armhf, better hardware support
2018 Q3 - Birth of NewEnglandcoin, window/linux wallet - Done
2018 Q4 - Decentralization Phase I
Blockchain Upgrade - Dynamic hashing algorithm I - Done
Cheetah Version I- CPU Mining Automation Tool on Linux - Done
2019 Q1 - Decentralization Phase II
Cheetah Version II- CPU Mining Automation Tool on Window/Linux - Done
Blockchain Upgrade Dynamic hashing algorithm II - Done
2019 Q2 - Fiat Phase I
Assessment of Risk of 51% Attack on NENG - done
Launch of Fiat USD/NENG offering for U.S. residents - done
Initiation of Mobile Miner Project - Done
2019 Q3 - Shoreline Tradingbot, Mobile Project
Evaluation and planning of Mobile Miner Project - on Hold
Initiation of Trading Bot Project - Done
2019 Q4 - Shoreline Tradingbot
Shoreline tradingbot Release v1.0 - Done
2020 Q1 - Evaluate NENG core, Mobile Wallet Phase I
NENG core Decentralization Security Evaluation for v1.3.x - Done
Light Mobile Wallet Project Initiation, Evaluation
2020 Q2 - NENG Core, Mobile Wallet Phase II
NENG core Decentralization Security Hardfork on v1.3.x - Scrypt RandomSpike
Light Mobile Wallet Project Design, Coding
2020 Q3 - NENG core, NENG Mobile Wallet Phase II
Review on results of v1.3.x, NENG core Dev Decision on v1.4.x, Hardfork If needed
Light Mobile Wallet Project testing, alpha Release
2020 Q4 - Mobile Wallet Phase III
Light Mobile Wallet Project Beta Release
Light Mobile Wallet Server Deployment Evaluation and Decision
Hello. 🤗 Today we will tell you about the blockchain adoption. 📌 According to analysts, blockchain mainstream adoption will begin with platforms targeting specific use cases or user bases. This is stated in the ConsenSys thematic report "Blockchain Scalability, Interoperability and Resilience," commissioned by the EU. 📌 The authors of the report argue that a private blockchain focused on meeting specific user needs provides "more flexibility" compared to a public blockchain, as private platform developers have more freedom to design increased performance and security. 📌 Thus, the EU is coming to the conclusion that a small number of global networks with block chains will become the "backbone of the value network." However, three key issues remain: 🔻 scalability, that is, the ability to make large volumes of transactions at high speed; 🔻 compatibility - the ability to exchange data between blockchains; 🔻 sustainability - “environmentally responsible” platforms with long term viability. The EU also expects blockchain technology to "become less energy-intensive over time." 📌 According to the analysts, the success of large-scale blockchain projects depends on how well their teams have a clear vision of what they want to achieve, a strong reason to use blockchain instead of traditional technologies, a strong governance structure, and the sharing of efforts and expertise among various stakeholders. 📌 While Europe has provided very much support in the blockchain space, there is still a lot to discover and develop, so discreet regulation that allows experimentation is the best lawmakers can do. ✅ PYRK is a cryptocurrency based on Bitcoin, with additional features imported from both Dash and Digibyte. Our goal is to test the limits of what can be done on the blockchain. Our improvements include multiple algorithm Proof of Work with Multishield difficulty adjustment, Masternodes, Private Send, Community Fund Governance, and Simple Tokens based loosely on the Color Coins protocol. Learn more about the PYRK’s features and advantages: https://www.pyrk.org https://preview.redd.it/icwm9b09kjo51.png?width=1200&format=png&auto=webp&s=0e412764f8490edacaad33d3cea8d04bab509d5c
I built a decentralized legal-binding smart contract system. I need peer reviewers and whitepaper proof readers. Help greatly appreciated!
I originally posted this on /cryptocurrency. I just thought you guys might be able to help as well so I posted it as well. I didn't link to the original post because the bot here keeps deleting my post, even if I use the np link. Hope that's ok... EDIT: My mother language is french (I'm from Montreal/Canada). Please excuse any blatant grammatical errors. TLDR: I built a decentralized legal-binding smart contract system. I need peer reviewers and whitepaper proof readers. If you're interested, send me an email to discuss: [[email protected]](mailto:[email protected]) . Thanks in advance! Hi guys, For the last few years, I've been working on a decentralized legal-binding contract system. Basically, I created a PoW blockchain software that can receive a hash as an address, and another hash as a bucket, in each transaction. The address hash is used to tell a specific entity (application/contract/company/person, etc) that uses the blockchain that this transaction might be addressed to them. The bucket hash simply tells the nodes which hashtree of files they need to download in order to execute that contract. The buckets are shared within the network of nodes. Someone could, for example, write a contract with a series of nodes in order to host their data for them. Buckets can hold any kind of data, and can be of any size... including encrypted data. The blockchain's blocks are chained together using a mining system similar to bitcoin (hashcash algorithm). Each block contains transactions. The requested difficulty increases when the amount of transactions in a block increases, linearly. Then, when a block is mined properly, another smaller mining effort is requested to link the block to the network's head block. To replace a block, you need to create another block with more transactions than the amount that were transacted in and after the mined block. I expect current payment processors to begin accepting transactions and mine them for their customers and make money with fees, in parallel. Using such a mechanism, miners will need to have a lot of bandwidth available in order to keep downloading the blocks of other miners, just like the current payment processors. The contracts is code written in our custom programming language. Their code is pushed using a transaction, and hosted in buckets. Like you can see, the contract's data are off-chain, only its bucket hash is on-chain. The contract can be used to listen to events that occurs on the blockchain, in any buckets hosted by nodes or on any website that can be crawled and parsed in the contract. There is also an identity system and a vouching system...which enable the creation of soft-money (promise of future payment in hard money (our cryptocurrency) if a series of events arrive). The contracts can also be compiled to a legal-binding framework and be potentially be used in court. The contracts currently compile to english and french only. I also built a browser that contains a 3D viewport, using OpenGL. The browser contains a domain name system (DNS) in form of contracts. Anyone can buy a new domain by creating a transaction with a bucket that contains code to reserve a specific name. When a user request a domain name, it discovers the bucket that is attached to the domain, download that bucket and executes its scripts... which renders in the 3D viewport. When people interact with an application, the application can create contracts on behalf of the user and send them to the blockchain via a transaction. This enables normal users (non-developers) to interact with others using legal contracts, by using a GUI software. The hard money (cryptocurrency) is all pre-mined and will be sold to entities (people/company) that want to use the network. The hard money can be re-sold using the contract proposition system, for payment in cash or a bank transfer. The fiat funds will go to my company in order to create services that use this specific network of contracts. The goal is to use the funds to make the network grow and increase its demand in hard money. For now, we plan to create:
A logistic and transportation company
A delivery company
A company that buy and sell real estate options
A company that manage real estate
A software development company
A world-wide fiat money transfer company
A payment processor company
We chose these niche because our team has a lot of experience in these areas: we currently run companies in these fields. These niche also generate a lot of revenue and expenses, making the value of exchanges high. We expect this to drive volume in contracts, soft-money and hard-money. We also plan to use the funds to create a venture capital fund that invests in startups that wants to create contracts on our network to execute a specific service in a specific niche. I'm about to release the software open source very soon and begin executing our commercial activities on the network. Before launching, I'd like to open a discussion with the community regarding the details of how this software works and how it is explained in the whitepaper. If you'd like to read the whitepaper and open a discussion with me regarding how things work, please send me an email at [[email protected]](mailto:[email protected]) . If you have any comment, please comment below and Ill try to answer every question. Please note that before peer-reviewing the software and the whitepaper, I'd like to keep the specific details of the software private, but can discuss the general details. A release date will be given once my work has been peer reviewed. Thanks all in advance! P.S: This project is not a competition to bitcoin. My goal with this project is to enable companies to write contracts together, easily follow events that are executed in their contracts, understand what to expect from their partnership and what they need to give in order to receive their share of deals... and sell their contracts that they no longer need to other community members. Bitcoin already has a network of people that uses it. It has its own value. In fact, I plan to create contracts on our network to exchange value from our network for bitcoin and vice-versa. Same for any commodity and currency that currently exits in this world.
The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May
The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May May 25, 2020 SHARE0 Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%. Meanwhile, Network Demand Score which is a metric incorporating network velocity, transaction value, fees, and miner’s rolling inventory, climbed to 6/6 following the bitcoin halving meaning the network is growing stronger which could also be a sign that “we’re in a longer-term bull market.” Since March 12th, just before the massive sell-off, this score has remained above a 3/6 reflecting growing strength in network activity and instilling confidence in the ongoing uptrend for the bitcoin price. 3 Reasons why fees skyrocketed One component of this indicator, bitcoin on-chain fees has been surging like crazy. Last week, Bitcoin average transaction fee climbed to $7, last seen in February 2018. This has the miner revenues from fees rising to the levels not seen for more than 2 years. But this week, it also dropped 55% to $3.13. The increase in transaction fees, which is increasingly becoming more important for Bitcoin network security, has been because of the unconfirmed transactions piling on in mempool. A decline in hash rate following halving caused fewer blocks to be found and will continue until the next difficulty adjustment has been one of the reasons behind this jump in fees. The other reason is the large fluctuations in bitcoin price which has traders sending coins between exchanges. Ather reason is a “mysterious entity which has been consolidating outputs at the highest fee rates, driving up fees for everyone,” pointed out Serrrgej Kotliar, CEO Bitrefill. Who is this “Crazy1o1”? Over the weekend Kotliar shared how, for the past 14 days, this mysterious entity has consolidated a lower-bound of 720 thousand outputs, 5 MB per day, more than BitMEX. Since May 1st, this entity named “Crazy1o1” has spent around 804k UTXOs and has paid more than 104BTC in mining fees during this time, noted Laurent. “On some days, these fees are equivalent to 10-12% of all the fees received by miners,” he said. Laurent along with others suspect this entity to be the cryptocurrency exchange Coinbase. Earlier this month, it was also found that crypto derivatives exchange BitMEX is making the bitcoin network expensive for everyone and its own users are paying 6.8% of total daily transaction fees. Prepare for the next bull market All of this a “decent fire drill for what might happen if we see another bull market,” said Kotliar. Grubles from Blockstream said, “ON-CHAIN FEES AND BTC PRICE MOVEMENTS CHART. YOU CAN SEE THAT BIG MOVEMENTS RESULT IN PEOPLE RUSHING TO TRANSACT (ALMOST CERTAINLY TO/FROM EXCHANGES), PUSHING FEES UP FOR OTHER NON-TRADER USERS WHO NEED UNCENSORABLE / IRREVERSIBLE TRANSACTIONS.” The fees reached its all-time high at over $55 during the peak of the bull market in December 2017. As such in the next bull market, a 5x growth in on-chain transactions should be expected. But given that batching, one of the many ways the network has been scaled is here, it will prevent the pressure on the network from getting worse than 2017. But exchanges will need to be prepared for this.
Real time and historical statistics on Bitcoin GOLD network difficulty. The BTG difficulty is adjusted periodically as a function of an average block finding time. ... Network difficulty is a key value for every cryptocurrency. Network difficulty is the difficulty of a problem that miners must solve to find a block. Rather it has an inverse relationship where a higher difficulty implies a lower target value. The Bitcoin network has a global block difficulty. Valid blocks must have a hash below this target. Mining pools also have a pool-specific share difficulty setting a lower limit for shares. Also, the smart money moving from weak hands to strong hands as macro trends highlights the value proposition of bitcoin. Also, “the overall network health remains strong” and the Glassnode compass has solidified its position in the green zone. Moreover, the bitcoin whale population is growing, now 1882 entities are holding at least 1000 BTC. Bitcoin`s NVT is calculated by dividing the Network Value (market cap) by the the daily USD volume transmitted through the blockchain. Note that this is the equivalent of the bitcoin token supply divided by the daily BTC value transmitted through the blockchain. Thus it is technically an expression of inverse monetary velocity. This difficulty value updates every 2 weeks to ensure that it takes 10 minutes (on average) to add a new block to the blockchain. Why is the difficulty important? Because it ensures that blocks of transactions are added to the blockchain at regular intervals, even as more miners join the network.
A chart showing bitcoin mining difficulty changes over time Bitcoin is the currency of the future & Genesis Mining is the largest cloud mining company on the market How to buy a pack in onecoin ... NEW CHANNEL: https://www.youtube.com/channel/UCH9HlTrjyLmLRS0iE1P4rrg ----- Rich Dad Poor Dad: https://amzn.to/3cKJ4Ia C... Mining is where someone like you uses special software/hardware to solve math problems in the Bitcoin network. These math problems are part of the proof-of-work system mentionabove and help verify ... Bitcoin is now halving for the third time, on May 11th, 2020. The block reward halving is HUGE for buyers and miners of BTC, find out why! Subscribe to VoskCoin for more Bitcoin videos - http ... After the Bitcoin (BTC) mining difficulty jumped sharply today, mining has become 20% more difficult than right before the third BTC halving in May. However,...