What is Hash Rate? 3 Things to Know (2020 Updated)

Gominer Cloud Mining, Scam and Legitimacy Review

Gominer Cloud Mining, Scam and Legitimacy Review
There are lot of scam in the bitcoin community. Everyone wants to earn bitcoin since its price has once again surge up. No one wants to be left behind before its price reach its all-time high. Bitcoin had already prove itself as a digital currency that will stay for a very long time even when its price drop during the 1st quarter of the year.
One of the easiest way to earn bitcoin is by hiring a cloud mining service. Instead of building your own mining rigs that are too hot and noisy, it’s better to let someone do it for you who is well experienced in the field. The big problem is how to choose which cloud mining company to invest with. This post hope to teach even if it is a few how to identify a scam cloud mining. By reading this post, investors will learn a few techniques on how to identify a fake cloud mining company.
Will take one cloud mining company as an example to be analyze whether if it is a scam or not. The name of the company is Gominer. Let’s first dig a little further about their company for us to have an adequate idea about them so we can use it in analyzing their company’s legitimacy. According to their website, the company is based in Canada and has been operating since 2017. Their reason for operating in Canada as stated was because of the cheap electricity cost and the weather is appropriate because of it cold climate.
Plausible because the logical thing before building a mining farm is to consider the electricity cost which is the main resource in mining and it will require a very large cooling system. If they already have an optimal weather, it can reduce their operating and equipment cost by a huge margin. The only questionable part here is if they have been operating for quite some time, why didn’t they focus on marketing for visibility of their company. Let’s see if we can also answer that as we scrutinize their company.
The two process of analyzing a fake cloud mining company is through Internal and External review. Internal review will focus on the company itself and the external review is from the reviews of other people outside of their website.

INTERNAL REVIEW

In the internal review, the very first thing for any investors to do is to analyze the website. The thing to look on the website are the following:

  • Domain Info
Under the domain info, the important thing to look at is the age of the website and the country. Investors can check this info by using a service from whois.domain. Here is an example of the data from Gominer:

Domain Profile gominer.co
Registrant Org Gominer Tech
Registrant Country CA
Dates 545 days old
Created on 2018-02-01
Expires on 2020-02-01
Updated on 2019-02-08

The country should be cross check with the country of their declaration from their website and the age as highlighted here should at least be over a few months to a year. The logic here is that a scam company will buy a new domain and launch it only after a few weeks of development. Since they don’t have a product or service, all they need to create is a website that can only take a few weeks at most. A website with age is under the impression that is was develop under the pretense that their product and services takes time before it can be introduce to the public. Cloud mining warehouse alone takes a few months before it can be deployed. Our example company was created last 2018, and the country code CA is from Canada which is the same as their declaration in their About Us page making it a positive review on their domain info.

  • Website Template
The thing to look up here is the design and the info. A fake cloud mining website will look very amateurish with little to no details about their company. They will surely have problems giving info about their product or service that they don’t have that’s why they will omit this things on their website. A legit cloud mining website on the other hand will at least have their own developer or have a professional do it for them. Basically, a legit company will have sufficient budget for this kind of things and the information on their website should be flooded with a lots of info on what they are giving to the people. They are confident about the things they do have so sharing this kind of info on their website is a piece of cake for them. The basic info that is mostly likely impossible to produce by fake cloud mining company are these three:
  • Roadmap
Fake cloud mining company will simply copy and paste a roadmap from other companies. The trick here is to google search if the content on the cloud mining website is a duplicate from other company website. If the direction and the content of the roadmap are too good to be true or seems impossible to attain, then you should consider the legitimacy of that company.

Gominer Roadmap
As seen from the roadmap of Gominer, the thing they listed here are basic information of what their company has gone through since they started on 2017. Nothing promising is stated which can be translated as good and bad. Good since they don’t promise anything bogus and bad since they don’t really have a declaration for their company’s growth. The roadmap should at least answer on how they will achieved their company’s mission.
  • Video
Since scam companies doesn’t have anything real to show. It’s nearly impossible for them to produce a company video with content about their company. A company video is important since it’s a material only legit company can produce.

Gominer seems positive on this one since they have a company video as seen here. Their entire website was summarize on their video, making it simpler for lazy investor to understand what their company is about
  • Product Info
Another info that a scam cloud mining company can’t produce on their own is the product itself. They won’t bother spend a fortune on something they don’t have since they are not a real company. Product info should at least have an image or better a video to show to the investors that it is real. A video of the product makes the company solid on many levels.

GMXR-1c
The product info can be found on the product page of Gominer website. The image and video itself if we are to review it makes their declaration very real and solid.

EXTERNAL REVIEW

External review will cover mostly other people’s assessment and their impression of the company. If the company is legit, their company should at least be present on other websites, blogs and most importantly, an ICO listing. Being listed is no easy task especially if the company is a fake company. ICO listing for one is very strict in terms requirements. They have their own algorithm to rate the company’s legitimacy.

Gominer can be found on a number of ICO Listing with good ratings. This establish a solid foundation for the them as a verified company base on the reviews of popular ICO listing that do benchmark for present and upcoming companies.

  • Social Media
Next thing we can check is their social media. Checking the social media of the cloud mining company is also one of the way to see if they really are active. A real company will post a lot about their activities for promotion. Zero activity or zero visibility means they are not active and is just fishing for investor to scam. A legit company in this generation will at least have an account on this two social media.
The thing to check here is the frequency of their post. They should at least have an active team for social media if they are a large company. Checking their social media, their facebook at least have an hourly average of post.
submitted by emilliabarrera1 to cloudmineruser [link] [comments]

The Nexus FAQ - part 1

Full formatted version: https://docs.google.com/document/d/16KKjVjQH0ypLe00aoTJ_hZyce7RAtjC5XHom104yn6M/
 

Nexus 101:

  1. What is Nexus?
  2. What benefits does Nexus bring to the blockchain space?
  3. How does Nexus secure the network and reach consensus?
  4. What is quantum resistance and how does Nexus implement this?
  5. What is Nexus’ Unified Time protocol?
  6. Why does Nexus need its own satellite network?
 

The Nexus Currency:

  1. How can I get Nexus?
  2. How much does a transaction cost?
  3. How fast does Nexus transfer?
  4. Did Nexus hold an ICO? How is Nexus funded?
  5. Is there a cap on the number of Nexus in existence?
  6. What is the difference between the Oracle wallet and the LLD wallet?
  7. How do I change from Oracle to the LLD wallet?
  8. How do I install the Nexus Wallet?
 

Types of Mining or Minting:

  1. Can I mine Nexus?
  2. How do I mine Nexus?
  3. How do I stake Nexus?
  4. I am staking with my Nexus balance. What are trust weight, block weight and stake weight?
 

Nexus 101:

1. What is Nexus (NXS)?
Nexus is a digital currency, distributed framework, and peer-to-peer network. Nexus further improves upon the blockchain protocol by focusing on the following core technological principles:
Nexus will combine our in-development quantum-resistant 3D blockchain software with cutting edge communication satellites to deliver a free, distributed, financial and data solution. Through our planned satellite and ground-based mesh networks, Nexus will provide uncensored internet access whilst bringing the benefits of distributed database systems to the world.
For a short video introduction to Nexus Earth, please visit this link
 
2. What benefits does Nexus bring to the blockchain space?
As Nexus has been developed, an incredible amount of time has been put into identifying and solving several key limitations:
Nexus is also developing a framework called the Lower Level Library. This LLL will incorporate the following improvements:
For information about more additions to the Lower Level Library, please visit here
 
3. How does Nexus secure the network and reach consensus?
Nexus is unique amongst blockchain technology in that Nexus uses 3 channels to secure the network against attack. Whereas Bitcoin uses only Proof-of-Work to secure the network, Nexus combines a prime number channel, a hashing channel and a Proof-of-Stake channel. Where Bitcoin has a difficulty adjustment interval measured in weeks, Nexus can respond to increased hashrate in the space of 1 block and each channel scales independently of the other two channels. This stabilizes the block times at ~50 seconds and ensures no single channel can monopolize block production. This means that a 51% attack is much more difficult to launch because an attacker would need to control all 3 channels.
Every 60 minutes, the Nexus protocol automatically creates a checkpoint. This prevents blocks from being created or modified dated prior to this checkpoint, thus protecting the chain from malicious attempts to introduce an alternate blockchain.
 
4. What is quantum resistance and how does Nexus implement it?
To understand what quantum resistance is and why it is important, you need to understand how quantum computing works and why it’s a threat to blockchain technology. Classical computing uses an array of transistors. These transistors form the heart of your computer (the CPU). Each transistor is capable of being either on or off, and these states are used to represent the numerical values 1 and 0.
Binary digits’ (bits) number of states depends on the number of transistors available, according to the formula 2n, where n is the number of transistors. Classical computers can only be in one of these states at any one time, so the speed of your computer is limited to how fast it can change states.
Quantum computers utilize quantum bits, “qubits,” which are represented by the quantum state of electrons or photons. These particles are placed into a state called superposition, which allows the qubit to assume a value of 1 or 0 simultaneously.
Superposition permits a quantum computer to process a higher number of data possibilities than a classical computer. Qubits can also become entangled. Entanglement makes a qubit dependant on the state of another, enabling quantum computing to calculate complex problems, extremely quickly.
One such problem is the Discrete Logarithm Problem which elliptic curve cryptography relies on for security. Quantum computers can use Shor’s algorithm to reverse a key in polynomial time (which is really really really fast). This means that public keys become vulnerable to quantum attack, since quantum computers are capable of being billions of times faster at certain calculations. One way to increase quantum resistance is to require more qubits (and more time) by using larger private keys:
Bitcoin Private Key (256 bit) 5Kb8kLf9zgWQnogidDA76MzPL6TsZZY36hWXMssSzNydYXYB9KF
Nexus Private Key (571 bit) 6Wuiv513R18o5cRpwNSCfT7xs9tniHHN5Lb3AMs58vkVxsQdL4atHTF Vt5TNT9himnCMmnbjbCPxgxhSTDE5iAzCZ3LhJFm7L9rCFroYoqz
Bitcoin addresses are created by hashing the public key, so it is not possible to decrypt the public key from the address; however, once you send funds from that address, the public key is published on the blockchain rendering that address vulnerable to attack. This means that your money has higher chances of being stolen.
Nexus eliminates these vulnerabilities through an innovation called signature chains. Signature chains will enable access to an account using a username, password and PIN. When you create a transaction on the network, you claim ownership of your signature chain by revealing the public key of the NextHash (the hash of your public key) and producing a signature from the one time use private key. Your wallet then creates a new private/public keypair, generates a new NextHash, including the corresponding contract. This contract can be a receive address, a debit, a vote, or any other type of rule that is written in the contract code.
This keeps the public key obscured until the next transaction, and by divorcing the address from the public key, it is unnecessary to change addresses in order to change public keys. Changing your password or PIN code becomes a case of proving ownership of your signature chain and broadcasting a new transaction with a new NextHash for your new password and/or PIN. This provides the ability to login to your account via the signature chain, which becomes your personal chain within the 3D chain, enabling the network to prove and disprove trust, and improving ease of use without sacrificing security.
The next challenge with quantum computers is that Grover’s algorithm reduces the security of one-way hash function by a factor of two. Because of this, Nexus incorporates two new hash functions, Skein and Keccak, which were designed in 2008 as part of a contest to create a new SHA3 standard. Keccak narrowly defeated Skein to win the contest, so to maximize their potential Nexus combines these algorithms. Skein and Keccak utilize permutation to rotate and mix the information in the hash.
To maintain a respective 256/512 bit quantum resistance, Nexus uses up to 1024 bits in its proof-of-work, and 512 bits for transactions.
 
5. What is the Unified Time protocol?
All blockchains use time-stamping mechanisms, so it is important that all nodes operate using the same clock. Bitcoin allows for up to 2 hours’ discrepancy between nodes, which provides a window of opportunity for the blockchain to be manipulated by time-related attack vectors. Nexus eliminates this vulnerability by implementing a time synchronization protocol termed Unified Time. Unified Time also enhances transaction processing and will form an integral part of the 3D chain scaling solution.
The Unified Time protocol facilitates a peer-to-peer timing system that keeps all clocks on the network synchronized to within a second. This is seeded by selected nodes with timestamps derived from the UNIX standard; that is, the number of seconds since January 1st, 1970 00:00 UTC. Every minute, the seed nodes report their current time, and a moving average is used to calculate the base time. Any node which sends back a timestamp outside a given tolerance is rejected.
It is important to note that the Nexus network is fully synchronized even if an individual wallet displays something different from the local time.
 
6. Why does Nexus need its own satellite network?
One of the key limitations of a purely electronic monetary system is that it requires a connection to the rest of the network to verify transactions. Existing network infrastructure only services a fraction of the world’s population.
Nexus, in conjunction with Vector Space Systems, is designing communication satellites, or cubesats, to be launched into Low Earth Orbit in 2019. Primarily, the cubesat mesh network will exist to give Nexus worldwide coverage, but Nexus will also utilize its orbital and ground mesh networks to provide free and uncensored internet access to the world.
 

The Nexus Currency (NXS):

1. How can I get Nexus?
There are two ways you can obtain Nexus. You can either buy Nexus from an exchange, or you can run a miner and be rewarded for finding a block. If you wish to mine Nexus, please follow our guide found below.
Currently, Nexus is available on the following exchanges:
Nexus is actively reaching out to other exchanges to continue to be listed on cutting edge new financial technologies..
 
2. How much does a transaction cost?
Under Nexus, the fee structure for making a transaction depends on the size of your transaction. A default fee of 0.01 NXS will cover most transactions, and users have the option to pay higher fees to ensure their transactions are processed quickly.
When the 3D chain is complete and the initial 10-year distribution period finishes, Nexus will absorb these fees through inflation, enabling free transactions.
 
3. How fast does Nexus transfer?
Nexus reaches consensus approximately every ~ 50 seconds. This is an average time, and will in some circumstances be faster or slower. NXS currency which you receive is available for use after just 6 confirmations. A confirmation is proof from a node that the transaction has been included in a block. The number of confirmations in this transaction is the number that states how many blocks it has been since the transaction is included. The more confirmations a transaction has, the more secure its placement in the blockchain is.
 
4. Did Nexus hold an ICO? How is Nexus funded?
The Nexus Embassy, a 501(C)(3) not-for-profit corporation, develops and maintains the Nexus blockchain software. When Nexus began under the name Coinshield, the early blocks were mined using the Developer and Exchange (Ambassador) addresses, which provides funding for the Nexus Embassy.
The Developer Fund fuels ongoing development and is sourced by a 1.5% commission per block mined, which will slowly increase to 2.5% after 10 years. This brings all the benefits of development funding without the associated risks.
The Ambassador (renamed from Exchange) keys are funded by a 20% commission per block reward. These keys are mainly used to pay for marketing, and producing and launching the Nexus satellites.
When Nexus introduces developer and ambassador contracts, they will be approved, denied, or removed by six voting groups namely: currency, developer, ambassador, prime, hash, and trust.
Please Note: The Nexus Embassy reserves the sole right to trade, sell and or use these funds as required; however, Nexus will endeavor to minimize the impact that the use of these funds has upon the NXS market value.
 
5. Is there a cap on the number of NXS in existence?
After an initial 10-year distribution period ending on September 23rd, 2024, there will be a total of 78 million NXS. Over this period, the reward gradient for mining Nexus follows a decaying logarithmic curve instead of the reward halving inherent in Bitcoin. This avoids creating a situation where older mining equipment is suddenly unprofitable, encouraging miners to continue upgrading their equipment over time and at the same time reducing major market shocks on block halving events.
When the distribution period ends, the currency supply will inflate annually by a maximum of 3% via staking and by 1% via the prime and hashing channels. This inflation is completely unlike traditional inflation, which degrades the value of existing coins. Instead, the cost of providing security to the blockchain is paid by inflation, eliminating transaction fees.
Colin Cantrell - Nexus Inflation Explained
 
6. What is the difference between the LLD wallet and the Oracle wallet?
Due to the scales of efficiency needed by blockchain, Nexus has developed a custom-built database called the Lower Level Database. Since the development of the LLD wallet 0.2.3.1, which is a precursor to the Tritium updates, you should begin using the LLD wallet to take advantage of the faster load times and improved efficiency.
The Oracle wallet is a legacy wallet which is no longer maintained or updated. It utilized the Berkeley DB, which is not designed to meet the needs of a blockchain. Eventually, users will need to migrate to the LLD wallet. Fortunately, the wallet.dat is interchangeable between wallets, so there is no risk of losing access to your NXS.
 
7. How do I change from Oracle to the LLD wallet?
Step 1 - Backup your wallet.dat file. You can do this from within the Oracle wallet Menu, Backup Wallet.
Step 2 - Uninstall the Oracle wallet. Close the wallet and navigate to the wallet data directory. On Windows, this is the Nexus folder located at %APPDATA%\Nexus. On macOS, this is the Nexus folder located at ~/Library/Application Support/Nexus. Move all of the contents to a temporary folder as a backup.
Step 3 - Copy your backup of wallet.dat into the Nexus folder located as per Step 2.
Step 4 - Install the Nexus LLD wallet. Please follow the steps as outlined in the next section. Once your wallet is fully synced, your new wallet will have access to all your addresses.
 
8. How do I install the Nexus Wallet?
You can install your Nexus wallet by following these steps:
Step 1 - Download your wallet from www.nexusearth.com. Click the Downloads menu at the top and select the appropriate wallet for your operating system.
Step 2 - Unzip the wallet program to a folder. Before running the wallet program, please consider space limitations and load times. On the Windows OS, the wallet saves all data to the %APPDATA%\Nexus folder, including the blockchain, which is currently ~3GB.
On macOS, data is saved to the ~/Library/Application Support/Nexus folder. You can create a symbolic link, which will allow you to install this information in another location.
Using Windows, follow these steps:
On macOS, follow these steps:
Step 3 (optional) - Before running the wallet, we recommend downloading the blockchain database manually. Nexus Earth maintains a copy of the blockchain data which can save hours from the wallet synchronization process. Please go to www.nexusearth.com and click the Downloads menu.
Step 4 (optional) - Extract the database file. This is commonly found in the .zip or .rar format, so you may need a program like 7zip to extract the contents. Please extract it to the relevant directory, as outlined in step 2.
Step 5 - You can now start your wallet. After it loads, it should be able to complete synchronization in a short time. This may still take a couple of hours. Once it has completed synchronizing, a green check mark icon will appear in the lower right corner of the wallet.
Step 6 - Encrypt your wallet. This can be done within the wallet, under the Settings menu. Encrypting your wallet will lock it, requiring a password in order to send transactions.
Step 7 - Backup your wallet.dat file. This can be done from the File menu inside the wallet. This file contains the keys to the addresses in your wallet. You may wish to keep a secure copy of your password somewhere, too, in case you forget it or someone else (your spouse, for example) ever needs it.
You should back up your wallet.dat file again any time you create – or a Genesis transaction creates (see “staking” below) – a new address.
 

Types of Mining or Minting:

1.Can I mine Nexus?
Yes, there are 2 channels that you can use to mine Nexus, and 1 channel of minting:
Prime Mining Channel
This mining channel looks for a special prime cluster of a set length. This type of calculation is resistant to ASIC mining, allowing for greater decentralization. This is most often performed using the CPU.
Hashing Channel
This channel utilizes the more traditional method of hashing. This process adds a random nonce, hashes the data, and compares the resultant hash against a predetermined format set by the difficulty. This is most often performed using a GPU.
Proof of Stake (nPoS)
Staking is a form of mining NXS. With this process, you can receive NXS rewards from the network for continuously operating your node (wallet). It is recommended that you only stake with a minimum balance of 1000 NXS. It’s not impossible to stake with less, but it becomes harder to maintain trust. Losing trust resets the interest rate back to 0.5% per annum.
 
2. How do I mine Nexus?
As outlined above, there are two types of mining and 1 proof of stake. Each type of mining uses a different component of your computer to find blocks, the CPU or the GPU. Nexus supports CPU and GPU mining on Windows only. There are also third-party macOS builds available.
Please follow the instructions below for the relevant type of miner.
 
Prime Mining:
Almost every CPU is capable of mining blocks on this channel. The most effective method of mining is to join a mining pool and receive a share of the rewards based on the contribution you make. To create your own mining facility, you need the CPU mining software, and a NXS address. This address cannot be on an exchange. You create an address when you install your Nexus wallet. You can find the related steps under How Do I Install the Nexus Wallet?
Please download the relevant miner from http://nexusearth.com/mining.html. Please note that there are two different miner builds available: the prime solo miner and the prime pool miner. This guide will walk you through installing the pool miner only.
Step 1 - Extract the archive file to a folder.
Step 2 - Open the miner.conf file. You can use the default host and port, but these may be changed to a pool of your choice. You will need to change the value of nxs_address to the address found in your wallet. Sieve_threads is the number of CPU threads you want to use to find primes. Ptest_threads is the number of CPU threads you want to test the primes found by the sieve. As a general rule, the number of threads used for the sieve should be 75% of the threads used for testing.
It is also recommended to add the following line to the options found in the .conf file:
"experimental" : "true"
This option enables the miner to use an improved sieve algorithm which will enable your miner to find primes at a faster rate.
Step 3 - Run the nexus_cpuminer.exe file. For a description of the information shown in this application, please read this guide.
 
Hashing:
The GPU is a dedicated processing unit housed on-board your graphics card. The GPU is able to perform certain tasks extremely well, unlike your CPU, which is designed for parallel processing. Nexus supports both AMD and Nvidia GPU mining, and works best on the newer models. Officially, Nexus does not support GPU pool mining, but there are 3rd party miners with this capability.
The latest software for the Nvidia miner can be found here. The latest software for the AMD miner can be found here. The AMD miner is a third party miner. Information and advice about using the AMD miner can be found on our Slack channel. This guide will walk you through the Nvidia miner.
Step 1 - Close your wallet. Navigate to %appdata%\Nexus (~/Library/Application Support/Nexus on macOS) and open the nexus.conf file. Depending on your wallet, you may or may not have this file. If not, please create a new txt file and save it as nexus.conf
You will need to add the following lines before restarting your wallet:
Step 2 - Extract the files into a new folder.
Step 3 - Run the nexus.bat file. This will run the miner and deposit any rewards for mining a block into the account on your wallet.
For more information on either Prime Mining or Hashing, please join our Slack and visit the #mining channel. Additional information can be found here.
 
3. How do I stake Nexus?
Once you have your wallet installed, fully synchronized and encrypted, you can begin staking by:
After you begin staking, you will receive a Genesis transaction as your first staking reward. This establishes a Trust key in your wallet and stakes your wallet balance on that key. From that point, you will periodically receive additional Trust transactions as further staking rewards for as long as your Trust key remains active.
IMPORTANT - After you receive a Genesis transaction, backup your wallet.dat file immediately. You can select the Backup Wallet option from the File menu, or manually copy the file directly. If you do not do this, then your Nexus balance will be staked on the Trust key that you do not have backed up, and you risk loss if you were to suffer a hard drive failure or other similar problem. In the future, signature chains will make this precaution unnecessary.
 
4. I am staking with my Nexus balance. What are interest rate, trust weight, block weight, and stake weight?
These items affect the size and frequency of staking rewards after you receive your initial Genesis transaction. When staking is active, the wallet displays a clock icon in the bottom right corner. If you hover your mouse pointer over the icon, a tooltip-style display will open up, showing their current values.
Please remember to backup your wallet.dat file (see question 3 above) after you receive a Genesis transaction.
Interest Rate - The minting rate at which you will receive staking rewards, displayed as an annual percentage of your NXS balance. It starts at 0.5%, increasing to 3% after 12 months. The rate increase is not linear but slows over time. It takes several weeks to reach 1% and around 3 months to reach 2%.
With this rate, you can calculate the average amount of NXS you can expect to receive each day for staking.
Trust Weight - An indication of how much the network trusts your node. It starts at 5% and increases much more quickly than the minting (interest) rate, reaching 100% after one month. Your level of trust increases your stake weight (below), thus increasing your chances of receiving staking transactions. It becomes easier to maintain trust as this value increases.
Block Weight - Upon receipt of a Genesis transaction, this value will begin increasing slowly, reaching 100% after 24 hours. Every time you receive a staking transaction, the block weight resets. If your block weight reaches 100%, then your Trust key expires and everything resets (0.5% interest rate, 5% trust weight, waiting for a new Genesis transaction).
This 24-hour requirement will be replaced by a gradual decay in the Tritium release. As long as you receive a transaction before it decays completely, you will hold onto your key. This change addresses the potential of losing your trust key after months of staking simply because of one unlucky day receiving trust transactions.
Stake Weight - The higher your stake weight, the greater your chance of receiving a transaction. The exact value is a derived by a formula using your trust weight and block weight, which roughly equals the average of the two. Thus, each time you receive a transaction, your stake weight will reset to approximately half of your current level of trust.
submitted by scottsimon36 to nexusearth [link] [comments]

PoW with Stake in Karbo

The major concern for small PoW based cryptocurrencies recently has become the availability of sheer amount of hashrate that is not their native but is available for rent. This results in a series of attacks on coins utilizing rented hashrate. There is even the website crypto51.app which collects the theoretical cost of a 51% attack on various networks. The security of PoW is based on the assumption that it is unfeasible to achieve the prevail in a hash rate for a single entity and even if such entity will possess that hashrate it will be economically motivated not to attack network due to its investments in mining infrastructure, which is no longer true.
Scott Roberts (aka Zawy) describes PoW as “one of the weak forms of PoS” [1] stating that “The only thing protecting PoW is the stake of the equipment infrastructure... All the small coins switching to PoW algorithms that can't be easily rented is an attempt to make miners hold an equipment stake." [1] “This shows that work in PoW is not equal to security, and secure part of PoW is PoS. If BTC hashrate were rentable (no mining stakeholders) BTC double spends would be easy enough to make it worthless”. [1] He continues, “In Monero's case, PoW change was not to reduce NiceHash renting (the reason small coins change PoW) but to reduce the effects of ASICs that were in a few hands. So the key idea in both renting and concentrated ASIC problems, is that PoW works by having distributed equipment owners (stakes). It has nothing to do with work (waste). Value is created by work (waste) in BTC, which can be done in PoS. But securing established value is accomplished by risk of value, not waste. When buying equipment, you are locking up a stake just like PoS systems require. In all reasonable ways, PoW is just a weak and inefficient PoS in disguise”. [1]
From the other hand, in the article “Work is Timeless, Stake is Not” Hugo Nguyen describes the key weakness of PoS and comes to the opposite conclusion. He cites Paul Sztorc as “correctly concluded that PoS is an obfuscated form of PoW” [2] and states that “Proof-of-Stake is a misnomer. The correct, fully descriptive name for Proof-of-Stake should be Proof-of-Temporary-Stake (PoTS). This name is more accurate because it captures the time element, or lack thereof, of PoS.” [2] “The ongoing energy expenditure in PoW contributes to network security in 2 ways:” “Units of work expended in the past accumulate in the ledger. Units of work expended in the future accumulate in the current mining hardware.” [2] He calls this “sort of time-based accumulation phenomenon” as stock & flow. “Bitcoin is essentially protected by high stock-to-flow ratios in 2 areas: the ledger, and the mining hardware”. [2] “In contrast, PoS has no equivalent of this. Past stakes … do not accumulate in the ledger, as stake is released after some arbitrary bonding period. Long-range attack is the manifestation of this weakness: it works because of PoS’s inability to secure the past. Long range attack is at the heart of the problems with PoS, because it shows that in the long run PoS fails to guarantee the integrity of the ledger — the most important asset of all this innovation." [2] “Future stakes ... also do not accumulate in the validators in the present time, as again the act of staking only has meaning within the short window that it occurs — what happens in the future does not count today. Current-private-keys-theft is the manifestation of this weakness: it works because of PoS’s inability to secure the future. Keys theft sidesteps altogether the financial cost supposedly required to acquire controlling stake — whereas in PoW there’s no sidestepping the fact that an attacker needs to overcome the mining hardware and ongoing energy costs to pull off and sustain a majority attack.” [2] “In summary: the further one moves away from the present time in PoS, the faster stake loses its meaning, until stake becomes meaningless. Work is robust against the ravages of time. Stake is not. The fact that the cost of PoW mining is irretrievably sunk and accumulates both in the ledger and the mining hardware, is an important feature, not a bug. PoS research is often based on the fundamental misconception that this is a bug and a source of inefficiency”. [2]
Thus we identified a problem in current state of PoW — the lack of security ensured by stake in equipment. The brilliant solution to the equipment stake deprivation in PoW is proposed by Qi Zhou — to combine PoW and PoS in “Proof of Staked Work ” (PoSW) — a simple hybrid PoW/PoS. “The basic idea is that, if a miner wants to contribute its all hash power to the network (suppose p percent of all hash power of the network), the miner must stake the number of tokens that is proportional to p.” [3] So we came to obvious, naive and simple solving: add to PoW, what has become missing — a stake.
We propose similar yet different approach without multiplying work by stake as we have concerns that this might be an attack vector and could cause frequent reorganisations and higher orphan rate. Besides, the algorithm can estimate hash power of the whole network via difficulty whereas it is hard to estimate hashrate of individual miner to adjust his stake requirements. So we set the same minimum required stake for all miners based on difficulty.
In order to mine a block the miner must stake the number of coins that is not less than the current minimum amount which is determined by the difficulty. The preliminary proposal is that the minimum stake in atomic units should be equal to the next difficulty multiplied by factor m. This factor should be defined economically from the current network state and conditions. For start let m = 100000.
A miner forms the coinbase transaction as follows: he sends to himself the amount not less than the required minimum and adds fees and block reward. This is enough to prove and verify his collateral stake in a simple way.
There is mined money unlock window n, a rule which locks all outputs in coinbase transaction for n blocks. This means that coins from coinbase transaction can be spent only after n blocks. Therefore, to be able to mine blocks successively, miner will have to possess much more money than minimum stake amount for one block,— he will need a stake for each block until his stake for a first mined block is unlocked. This will substantially and even exponentially increase the cost of 51% attack, the cost of being large miner or running a mining pool since the miner or the owner of the pool will have to acquire sufficient stake.
Coin transferred in a coinbase transaction proves possession without revealing sender and recipient. This keeps the stake and reward wallets separate. There will be the possibility to lend stake by preparing a template stake transaction in which lender sends coins to himself, reward to miner, and part of the reward to himself as a commission for lending, and issues this raw transaction to the miner. The miner can check if he received sufficient reward and use the transaction in the block template.
Instead of daemon the coinbase transaction with stake should be created in wallet on request from the daemon or mining software. Staking wallet should be running in RPC mode and listen to the special corresponding command.
Check for inputs/outputs should be revised to take into account new coinbase transaction type.
This approach evokes concerns of amplifying the centralization of mining in the hands of those who possesses enough stake for large hash rate eliminating small miners and pools.
References:
[1] https://twitter.com/zawy3/status/1082199522812612608
[2] https://medium.com/@hugonguyen/work-is-timeless-stake-is-not-554c4450ce18
[3] https://medium.com/quarkchain-official/proof-of-staked-work-ef36f9499279
submitted by hyarmaite to krb [link] [comments]

I created an easier way for non-programmers to access their favorite Bitcoin and cryptocurrency services within Google Sheets.

TL;DR: I created an easier way for non-programmers to access their favorite Bitcoin and cryptocurrency services within Google Sheets. You can find it here:
https://chrome.google.com/webstore/detail/spreadstreet/fghpmppcbabgnpekploacbjijhppnkpp?authuser=0
Hey all,
I know some of the members in the group prefer to use spreadsheets (including myself) so I created a Google Sheets add-in that pulls in certain API endpoints from popular Ethereum and cryptocurrency services. I never had the time to develop software engineering skills, but the tool allows regular joes like myself to harness the power of APIs.
Requirements:
  1. Google Sheets
  2. Spreadstreet add-in (can download from within sheet)
Services and endpoints included:
Bitcoin Charts
Bitfinex
Bittrex
Blockchain
Stock Twits
GDAX
Cryptonator
Cryptocompare
CoinMarketCap
Hoping this is something that is useful to the group, and I am more than happy to help peeps setup the sheet so they can use it. Just send me a message on here or to my inbox.
Full disclosure
I have set the add-in to be a 14-day free trial, and $15 a month after. I am currently exploring ways to make the service free, such as:
  1. Sponsored connections: Free connections that anybody can use where the service pays me to host them on the add-in
  2. Community submitted connectors
  3. Rate-limited free level (currently do not have development talent to implement this)
I am in no way affiliated with any of the services listed, except for the actual add-in itself. I just happen to find the services very valuable.
Helpful template to get you started
I created a sheet that has some initial instructions, as well as a setup for Bitfinex. It brings in candles data, and recent tweets related to the symbol of your choosing. You can find that sheet here (File -> Make a copy):
https://docs.google.com/spreadsheets/d/1P5WkVIk-e8jhVMS7TaptSKI83c1Ut5crLM1r8CUFUXc/edit?usp=sharing
A note on security:
Our industry is rife with corruption. I know the hesitation involved with installing something that is script-based, like a Google Sheets add-in. I am here to help ease those fears with a couple of facts:
  1. This is a U.S. based company, and I am a one-man show (for now)
  2. My business location, phone number, and e-mail are all public knowledge as required by the laws of the United States
  3. I am here to provide a valuable service, and something that I hope becomes a treasured tool within the space
  4. The app is on the Google store, and they do a full review of all applications before allowing them to be pushed to the store. While not perfect, you can be reasonably assured they catch most malicious programs
  5. If you are still hesitant, there are a couple of ways to test it without installing on your main computer, such as testing it in a virtual environment first.
  6. Currently the add-on has no authenticated endpoints. Before I implement these, I will put our code under a strict third-party security review that will be posted for everyone to see. I will not release that version until we are certain security is top notch
Additional Resources
Original Medium Post: https://medium.com/spreadstreet/an-easy-way-to-connect-digital-currency-services-to-google-sheets-21f18301f881
Help documents: https://spreadstreet.io/docs/
Using the built-in "SS" function: https://www.youtube.com/watch?v=gMqqEQ9ArDc
Cheers, John
submitted by 1kexperimentdotcom to ethtrader [link] [comments]

{MESSAGE TESTING v2!} Komodo Platform: Redefining The Architecture Of Blockchain Platforms

OK so here's the second version of our marketing copy for people looking to get started with blockchain tech (entrepreneurs, enterprise leaders, fintech businesses, etc).
We took a bunch of the great feedback we got form the community into consideration and this is what we came up with. We think it's a stronger narrative and explains Komodo's tech offerings much clearer than the previous version. This (hopefully) does a better job of contrasting the infrastructure of Komodo with the single-blockchain infrastructure of all the other projects that call themselves platforms.
As always, we'd love some comments, feedback, suggestions, and criticisms from the community. Feel free to tell us what we're not doing well! There's always room for improvement so we value criticism that points out our weak spots.
Thanks in advance for all the help!
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Traditionally, the word “platform” refers to a collection of technologies that serve as a foundation on which other applications, processes, and technologies can be developed. However, in the blockchain industry, the word “platform” has come to mean something different. It’s often used to describe the technology architectures of early trailblazers like Ethereum.
The first blockchain platforms brought significant innovations to the blockchain industry. In particular, these early platforms allowed developers with no prior knowledge of blockchain to develop decentralized applications (dApps) on a pre-existing blockchain infrastructure.
This lowered the barrier to entry and played a critical role in attracting developers to the emerging blockchain technology market. The ability to create tokens, launch an ICO, and support smart contracts was the primary focus of many of these first-generation blockchain platforms. Indeed, this focus helped fuel a large influx of new ICOs and dApp projects.
However, the first-generation platforms are essentially single blockchains with the option to build decentralized applications on top. This shared-blockchain infrastructure model is inseparable from the platform, since they are one and the same. Thus, as the first-gen platforms experienced rapid success, two fundamental challenges were exposed in the underlying blockchain architecture: scalability and interoperability.
To mitigate these two issues, first-generation platforms have begun introducing off-chain scaling solutions that can be tacked onto their existing blockchain infrastructure. At the same time, a number of new platform projects are entering the market with either scalability or interoperability as their primary value proposition.
Today, projects built on the first-generation platforms are still at the mercy of shared blockchain infrastructure. The nature of this shared-infrastructure model imposes limitations on the projects built upon it, such as congestion and a lack of control over crucial decisions about the functioning of the platform. Worse still, vendor lock-in prevents these projects from migrating to an ecosystem that allows autonomy and independence.
Since its earliest days, Komodo Platform has taken a different route. Komodo has always understood the necessity of an independent blockchain infrastructure model.
This revisionist approach occurred to jl777, Komodo’s Lead Developer, at the beginning of 2016 after the platform he was developing on implemented major adjustments to the codebase without consulting any of the projects it hosted. The changes broke the backend tech of jl777’s project, SuperNET, and required hundreds of hour of work to repair the damage.
This event made the limitations of the shared infrastructure model perfectly clear. In response, jl777 issued the following statement:
Declaration of IndependenceWe the asset holders hereby declare our independence from any single blockchain.An open and jointly developed specification on cross chain atomic asset transfers will be developed. Any current or future blockchain is invited to join. Each blockchain will need to not only promise protections for asset holder interests, they need to live up to them. Otherwise, all the assets will simply move to blockchains that do.….This is an interop standards effort and it needs to be blockchain agnostic and asset centric.James ‘jl777’ Lee
February 21, 2016
As this declaration makes clear, Komodo was founded on the principles of independence, autonomy, and collaboration. In accordance with these values, Komodo sought to create a fully-decentralized and open-source blockchain ecosystem. The objective was to design an independent blockchain architecture that would allow all blockchain projects to avoid the shortcomings of the original, single-blockchain model.
This new architecture of Komodo Platform was specifically designed to be highly secure, independently scalable, and fully interoperable. With a multi-chain architecture, atomic-swap technology, cross-chain verifications and smart contract support, Komodo Platform is redefining what it means to be a blockchain platform.
THE THREE LAYERS OF KOMODO PLATFORM’S INFRASTRUCTURE ARCHITECTURE
1) Komodo Network/Intelligence Layer
The first layer of Komodo’s new blockchain platform architecture focuses on three properties.
i. Security
Komodo’s security mechanism, delayed Proof of Work (dPoW), protects every chain in the ecosystem with the hash rate of the Bitcoin network.
The process works as follows: Every ten minutes, a snapshot is taken of all the chains in the Komodo ecosystem. This records the balance of every single address. Then, this snapshot is written into a block on the Bitcoin blockchain.
In essence, dPoW functions as a form of 2FA for blockchain projects. A potential attacker would need to take down both the BTC and KMD networks at the same time before they could alter, disrupt, or destroy any chain on Komodo Platform.
ii. Scalability
Komodo provides every project on the platform with a completely independent blockchain. There is no shared infrastructure so the activity on one chain cannot and will not affect the performance of any other chain in the ecosystem. In the vast majority of cases, one independent assetchain is sufficient.
However, in some rare cases, one blockchain may not provide adequate performance. This isn’t a concern, as Komodo allows each project to scale on-demand by adding more chains to their infrastructure. Komodo’s tech enables multiple blockchains to work in unison and behave as a single chain so you can scale-out whenever necessary.
Since each project receives its own infrastructure, transactions are processed in isolation on each chain simultaneously. As a result, Komodo Platform is able to process more than 20K transactions per second (tps). This technology is still in development but, soon, every project within the ecosystem will have the ability to process 1 million tps.
iii. Interoperability
The first step to blockchain interoperability is atomic swap technology. Atomic swaps are peer-to-peer exchanges of cryptocurrency that allow users to retain control of their private keys throughout the entire trading process. Komodo is the world leader in atomic swap technology and supports 95% of all cryptocurrencies in existence.
The next big step in blockchain interoperability is cross-chain fungibility. With a combination of Merkle proofs and a unique burn protocol that holds coin supply constant, Komodo’s tech permits cross-chain transfers of value that require neither trades nor swaps. There is complete interoperability among all the chains that exist on Komodo Platform.
As Komodo continues to prepare and develop for the future, these interoperability features will be extended to any blockchain in existence, whether or not it was launched on Komodo Platform. This new blockchain bridging technology is still in development but, once released, will truly revolutionize the entire blockchain industry.
2) Blockchain Infrastructure Layer
The second layer of Komodo’s architecture represents the “building blocks” that serve as the backend infrastructure.
The KMD main chain serves as a master template from which every other blockchain in our ecosystem is generated. Independent blockchains on Komodo Platform are called assetchains, and each one is a runtime fork of the KMD chain.
All updates to the KMD blockchain get pushed to all the assetchains in the ecosystem. This future-proofs every project and allows you to build on Komodo with peace of mind.
Assetchains on Komodo Platform are also equipped with a number of modular features that allow you to customize the chain to fit your needs. From permissioned and permissionless privacy options to the ability to set custom mining rewards, Komodo Platform provides flexibility to meet individual needs.
3) Application/Logic Layer
The third and final layer of Komodo Platform’s architecture is Smart Contract support. This is the final layer, as designing the first two infrastructure layers in the optimal way was priority number one.
While smart contract support is still in the testing phase, the results are promising. The technology, called CryptoConditions, is run natively, so it’s a quick and efficient mechanism for executing smart contracts. It’s also UTXO-based so it is extremely secure.
Komodo’s smart contract support is available to any assetchain built within the ecosystem. One token of one assetchain can be broken down into as many as 100 million colored coins, which could then serve as proxy tokens to support the execution of smart contracts.
Komodo’s smart contracts are also language agnostic and highly customizable, so developers with a wide variety of expertise can create smart contracts to serve many different purposes.
Further into the future, Komodo will provide native ERC20 smart contract support. ERC20 support will also be language agnostic so it will accept many programming languages, rather than just Solidity. This upgrade is still in the planning phase and has not yet entered development but it is a major objective on Komodo’s tech roadmap.
submitted by Daniel-C-Pigeon to komodoplatform [link] [comments]

Mining health and safety update - December 2017 Thunderbit Bitcoin HYIP BTC Investments 2017 HYIp How Much Can You Make Mining Bitcoin With 6X 1080 Ti ... What Do YOU Need to MINE ONE BITCOIN In 2020?! - YouTube Training Heavy Equipment Operators - YouTube

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Mining health and safety update - December 2017

Some Helpful Links: • Buy Parts for a Mining Rig: http://amzn.to/2jSSsCz • Download NiceHash Miner: https://www.nicehash.com/?p=nhmintro • Choose a Wallet: h... This video focuses on both the hazards of and how to safely work around powered mobile equipment in the workplace on both industrial and commercial work site... Mining Bitcoin is as easy as installing the mining software on the PC you already own and clicking start. Anyone can do this and see the money start rolling ... WorkBC has developed a Heavy Equipment Operator training course with the Southern Interior Construction Association to provide skills training opportunities ... ThunderBit uses the latest and greatest in Bitcoin mining equipments and trades on the most stable markets which minimizes the risk of financial loss and guarantees a stable income! thunderbit ...

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