Machine Consensus Via Proof-of-Work
How does Bitcoin use a peer-to-peer network of computers to enforce the rules agreed upon by human participants?
In the last section, we discussed how hackers organize to create a system like Bitcoin, and established that the machines in the network are used to enforce rules upon the participants. But it can also be said that the machines enforce rules upon each other, such that clever humans are frustrated when trying to change them. This section explores how computers are used to keep human participants honest.
So far, we have contended that the “problems being solved” by Bitcoin are not abstractions (ie., “central banking” or “soft money”) but the concrete challenges of coordinating specialized human labor outside a command-and-control structure. We’ve established that the motivations for avoiding a command-and-control structure are threefold:
To minimize the opportunity and motivation for the managers of the system to cheat or hassle the participants.
To attract skilled technologists to build the system without direct compensation (ie., FOSS and open allocation).
To eliminate gatekeeping, and allow anyone to use the system without permission; this achieves maximum growth and success of the software.
Next, we’ll talk about how Bitcoin accomplishes this feat of machine cooperation without losing these three desirable qualities.
How machines agree on a shared transaction history
Recall the first section, discussing Nakamoto’s message in the Genesis Block. About every 10 minutes, the system collates, validates, and bundles the new transactions. These bundles are called blocks. Block producers are called miners.
Each block contains a hash of the data from the previous block. A hash function is a one-way algorithm that maps data of arbitrary size to an output string of bits in a fixed size, called a hash. Changing the data fed into the hash function changes the resultant hash. It is one-way as it is not possible to reconstruct the data given the hash and the hash function. It follows that if a block contains a hash of the prior block, it must have been produced after the prior block existed. Since changing a block in the middle of a sequence of blocks would invalidate the hashes in all subsequent blocks, conceptually they are chained together. Blocks can only be appended to the end of the chain.
The data structure which results from creating a new block and including the hash of the prior block in a continuous manner is known as the blockchain. In a blockchain-based system all participants validate the hash of a new block before updating the state of their ledger.
How block producers are selected
We have established that all machines mining on the Bitcoin network work to bundle the transactions since the last block. If they are the first to report a new block, they have a chance at being paid a coinbase reward (currently 12.5 bitcoin).
But since most honest miners will report the same bundle of transactions, there will be many “correct” blocks, and only one reward winner. How does the system choose who wins, and how are clever miners prevented from winning every block?
Bitcoin’s consensus design selects a winner pseudo-randomly from among many potential miners by requiring the winning block to meet certain hard-to-predict characteristics. It is by requiring a certain number of prepended zeros in the block hash that the “reward winner” is kept random. This is what is meant when Bitcoin miners are described as playing a “guessing game.”
The screenshot below is taken from a blockchain explorer, a free public service which allows anyone to see all Bitcoin transactions. Note the block hash with 18 prepended zeros, required by the difficulty factor at the time this block was mined:
0000000000000000001fb8f591a114473c582cea6057afd97488cf4f532fc33f
Satoshi Nakamoto set as a constant a 10 minute average block time. This average is maintained by adding or subtracting the number of prepended zeros required in a valid block hash. So while the Bitcoin system has no sense of “Earth time,” it does know when blocks are found too quickly or too slowly, and difficulty will adjust accordingly. For example if a large amount of hashrate left the network, making block production too slow, then the number of prepended zeros required to find a block would drop, making the validation condition easier to satisfy and blocks faster to find.
Unlike block #544937 above, block #0 below only has 10 prepended zeros. Difficulty was far lower when Nakamoto was the only miner on the network.
000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f
Once validation criteria are met, the lucky block is propagated around the network and accepted by each full node, and it gets appended to a chain of predecessor blocks; at this time the winning miner is also paid.
Minting bitcoins for block producers
Each time a block is produced and a miner is paid, new bitcoins come into existence. The computer which finds a lucky hash is paid a reward automatically by the network, in Bitcoin. This is called the coinbase reward. Like everyone else, miners must have a public key to receive these funds.
The coinbase reward is cut in half every 210,000 blocks, an event known as halving. Halvings make bitcoin a deflationary currency; eventually the emission rate of bitcoins will drop to zero. Only about 21 million will be created by the network. Miners are theoretically incentivized to continue mining after the reward period ends around the year 2140, because they will continue to receive transaction fees set by the sender of an individual transaction.
In this way, Bitcoin creates its currency through a distributed process, out of the hands of any individual person or group, and requiring intensive computing and power resources.
Turning energy into hashes crystallizes value
As more blocks gets added to the chain, the cost of reverting a past transaction increases, and hence probability of the transactions in the block being finalized increases. Proof-of-Work is cumulative in the sense that with more computing power on the network, it becomes more expensive to attack it, making the ledger more secure.
In Bitcoin’s original whitepaper, Section IV “Proof-of-Work” is written as the following:
“To implement a distributed timestamp server on a peer-to-peer basis, we will need to use a proof-of-work system… Once the CPU effort has been expended to make it satisfy the proof-of-work, the block cannot be changed without redoing the work. As later blocks are chained after it, the work to change the block would include redoing all the blocks after it.”
Conceptually, Proof-of-Work burns energy in block-issuance, which allows network participants to view immutability objectively. Proof-of-Work reduces the entropy level within the system by consuming energy to create machine consensus around an ordered set of transactions. The cost of electricity consumption is borne collectively by miners to find “order” in “chaos” without a central coordinating agent. This is the process through which physical resources (ie., energy) are transformed into digital resources in the form of blocks of transactions, and the coinbase rewards which are the outcome of block production. Because these digital assets (ie., blocks and transactions) are encoded on physical computer memory, it can be said that the Proof-of-Work process sublimates electricity into a physical bearer instrument, similar to the way that gold mining and minting can produce gold coins.
Blocks order transactions
We have said that Bitcoin hashes groups of transactions to create a single, verifiable block. We’ve also said that the blockchain creates a transaction history that cannot be changed without expending enormous amounts of energy. But accomplishing these two feats required some ingenuity on Nakamoto’s behalf.
Bitcoin users exist all over the world, and their individual transactions must travel slower than the speed of light, so latency causes nodes to receive messages at different times, or out of order.
In any financial system, errors in transaction-logging can create disagreements between parties because balances will appear incorrect, or transactions will be missing. If disagreements are constant, the system is not usable. Whether in a paper ledger or a digital database, cheaters or saboteurs who want to erroneously increase their own balance (or simply wreak havoc) need only to change the order of transactions (ie., their timestamp) or delete them outright to cheat other participants.
The practice of “writing” ledger data into a hard-to-alter physical record is at least 30,000 years old, as exemplified by the clay tablets used by the ancient Sumerians used before the development of paper, and the more recent wooden “tally sticks” (seen below) which were still legal tender in the United Kingdom until the 19th century.
Of course, keeping track of changes is no sweat for a spreadsheet on a single computer. When applications span multiple computers, networks are required to carry messages between them. Multi-computer applications deal with slow connections by using asynchronous algorithms, which are tolerant of dropped, latent, or out-of-order messages and are not driven by a time-based schedule. In an asynchronous system, computers engage in parallel processing, but without moving forward in lock-step. Instead, messages (often user actions) trigger a change on each and every machine as it hears about the message.
Nakamoto consensus is highly reliable
Bitcoin too is an asynchronous event-driven system. But unlike conventional distributed systems, participants are not permissioned, meaning they have not been authenticated and authorized prior to participating. Yet somehow they all transition the state of their ledger together without a leader or any sort of coordinating mechanism beyond their own self interest. How can self-interest be used to coordinate a group of disparate, unvetted, and possibly hostile individuals?
One of the many strokes of brilliance in Bitcoin is the use of economic incentives to keep miners producing valid blocks on schedule. Miners earn rewards denominated in the unit of account for the ledger they maintain; that is, in bitcoin. Nakamoto’s conjecture was that the desire to corrupt the ledger, which threatens the coin of the realm, would be outweighed by the desires of those with a vested interest.
This way, miners in a distributed system like Bitcoin can come to agreement about the order of transactions, even if some of the nodes are slow or even maliciously producing invalid blocks. This happens without the restrictive requirements of permissioned consensus.
Bitcoin’s system has shown its resilience in both operational uptime and integrity of the ledger. Importantly, it can accomplish this feat without needing to vet the individual nodes on the network; machines can join or drop off at will, and the properties of the system remain the same.
Industrial mining in a nutshell
Compared to launching an ICO, venture investing, or volatility-trading, a mining operation is the least exposed to capital market “narratives,” making it the most predictable cryptocurrency investment activity. Mining profitability is driven by semiconductor cycles, energy expenditure, and the overall performance of the cryptocurrency market. While a mining investment is fundamentally a long position, it comes with a lower cost basis, so long as a miner optimizes for overhead costs and buys their machines at a fair retail price. A miner’s decisions to buy hardware or support a given network are much less influenced by short term market fashions than on the fundamental qualities of the network protocol, and the technological life cycle of hardware being purchased. Considerations for miners include, but are not limited to, fundamental factors such as:
Choosing a viable network.
Sourcing from the right hardware manufacturers, at a fair price.
Timing the purchase with the hardware cycle.
Cost of energy and other overheads at host facility.
Security and staffing at host facility.
Liquid reward management.
Local regulation and tax.
There are two main main factors driving mining market dynamics: hashrate growth and price movement. Fundamentally the two factors are deeply intertwined. Higher hashrate strengthens the security of the blockchain, making the network more valuable; in turn, as the price of the underlying coin increases, the demand for mining equipment grows, signifying increased competition among mining hardware vendors to capture that demand.
Bitcoin hashrate has been increasing at a breathless pace despite the spot price having been butchered year-to-date. Since January 2018, Bitcoin miners and traders have lived in completely separate universes, with miners reinvesting in hardware and facilities, anticipating the next cycle of price appreciation that is expected to accompany continued engineering progress at the core protocol level. Because miners control liquidity, this amounts to a self-fulfilling prophecy. (An appendix discussing popular conceptions about price trends appears at the end of this paper.)
The mismatch between hashrate growth and price movement is the result of the different paces between hardware markets and capital markets. Under normal circumstances, mining difficulty can be predicted by semiconductor foundry TSMC’s wafer shipments, which account for a majority of Bitcoin ASIC production. Foundry lead times are longer than the Bitcoin price cycle, meaning wafers that are already in production during a downturn in the Bitcoin price would cause capacity to overshoot.
On the other hand, due to the cumulative nature of Proof-of-Work, higher hashrate poured into a network makes the system more secure and robust. A higher degree of finality means the system is more stable to support transaction volume, and more robust for third-party developers to build on the system.
In Proof-of-Work cryptocurrencies, capital markets and distributed networks are tied together by design. As Bitcoin price continuously climbed up over the past decade, mining grew into a huge industry. In the first half of 2018, the largest cryptocurrency ASIC manufacturer Bitmain, reported $2.5 billion in revenue and $1.1 billion in profit.
The rise of specialized hardware
Over the years, cryptocurrency mining has graduated from CPU to GPU to specialized hardware such as FPGA (Field-Programmable Gate Array) and ASICs. Because of the competitive nature of mining, miners are incentivized to operate more efficient hardware even if it means higher upfront cost paid for these machines. As some hardware manufacturers upgrade to faster and more efficient machines, others are forced to upgrade too, and an arms race emerges. Today, for the notable networks, mining is largely dominated by ASICs. Bitcoin’s SHA256d is a relatively simple computation; the job of a Bitcoin ASIC is to apply the SHA256d hash function trillions of times per second, something that no other type of semiconductor can do.
First introduced in the 1980s, ASICs transformed the chip industry. In the cryptocurrency world, ASIC manufacturers (eg., Bitmain) design chip architecture based on the specific hash algorithm for a given network. After going through multiple iterations and tests, the design graphic for the photomask of the circuit is then sent to foundries such as TSMC and Samsung as part of the process known as a tape-out. The actual performance of the chips is not known until the chips return from the foundry. At this point, the ASIC manufacturer needs to optimize for thermal design and chip alignment on the hashing board before the product is ready for production use.
The rise of application-specific hardware is inevitable and a natural trend in the computing hardware evolution. Much like how technology in gold mining and oil drilling developed over time as the base commodities became more and more valuable, application-specific hardware is improving quickly as the result of cryptocurrency becoming more attractive. While short-term price action is mainly driven by speculation and has been observed to decorrelate with hashrate, over the long run the two factors form a virtuous feedback loop.
ethereum видеокарты bitcoin x2 In its October 2012 study, Virtual currency schemes, the European Central Bank concluded that the growth of virtual currencies will continue, and, given the currencies' inherent price instability, lack of close regulation, and risk of illegal uses by anonymous users, the Bank warned that periodic examination of developments would be necessary to reassess risks.ethereum статистика bitcoin generation copay bitcoin ethereum покупка ethereum перспективы king bitcoin mine ethereum
bitcoin pizza
прогнозы bitcoin
системе bitcoin bitcoin account nonce bitcoin ethereum course india bitcoin bitcoin лохотрон
download tether bitcoin compare 2. Blockchain in Cyber Securitybitcoin protocol Consider a browser extension or ad blockers that can help defend against cryptojacking. But do your research first. Read reviews and check trusted sources before installing any online tools. Some websites may keep you from using their site if you have blocking software installed.What Is Crypto Mining? How Cryptocurrency Mining Worksрост bitcoin bitcoin mail
bitcoin algorithm bitcoin balance split bitcoin bitcoin wordpress vk bitcoin bitcoin review bitcoin tor ethereum tokens ethereum habrahabr bitcoin 100
opencart bitcoin login bitcoin bitcoin bow cubits bitcoin ad bitcoin ethereum course bitcoin project bitcoin обменники пулы ethereum make bitcoin bitcoin banking bitcoin войти транзакции ethereum bitcoin it invest bitcoin wild bitcoin ethereum client bitcoin monkey panda bitcoin bitcoin 1070 bitcoin автоматически
0 bitcoin bitcoin biz http bitcoin ethereum клиент ethereum отзывы bitcoin hype ethereum dag location bitcoin
satoshi bitcoin ethereum node
ethereum бесплатно bitcoin swiss bitcoin dark bitcoin easy miner bitcoin Store of Valuebitcoin knots iso bitcoin bitcoin double bitcoin auto usd bitcoin 50 bitcoin ethereum core Blockchain ExplainedUnbreakableUnits and divisibilitybitcoin email faucet bitcoin bitcoin халява
pixel bitcoin gain bitcoin новые bitcoin bitcoin aliexpress blender bitcoin ethereum course bitcoin antminer tether ico платформа bitcoin обвал ethereum bitcoin миллионеры avalon bitcoin bitcoin ключи download bitcoin
ethereum io bitcoin get cryptocurrency chart remix ethereum bitcoin bitcointalk bitcoin adder контракты ethereum
hash bitcoin Ключевое слово hacking bitcoin
биржа ethereum bitcoin world bitcoin casascius coingecko ethereum дешевеет bitcoin bitcoin pdf wikipedia cryptocurrency bitcoin получить
Online and available 24 hours a day, 365 days per year.bitcoin сложность bitcoin биржи cranes bitcoin китай bitcoin world bitcoin bitcoin buying ethereum casino plus500 bitcoin bitcoin iq bitcoin icons
showing interest in projects such as VPN, Blockstack, wifi mesh networks,14github ethereum monero 1070
bitcoin 2017 demo bitcoin
stealer bitcoin config bitcoin super bitcoin зарабатывать bitcoin лото bitcoin course bitcoin ocean bitcoin tether usd значок bitcoin bitcoin таблица bitcoin blockstream проекта ethereum bitcoin blockstream ethereum капитализация bitcoin investing вики bitcoin
форки bitcoin tether курс ethereum eth monero pools конференция bitcoin перевод ethereum bitcoin комиссия email bitcoin bitcoin cash bitcoin продать bitcoin de стоимость monero bitcoin coinwarz explorer ethereum токены ethereum easy bitcoin
trinity bitcoin
bitcoin word bloomberg bitcoin bitcoin вектор trade cryptocurrency фото bitcoin описание bitcoin bitcoin адреса bitcoin информация fpga bitcoin bitcoin информация bitcoin банк
bitcoin vector комиссия bitcoin bitcoin это keystore ethereum exchanges bitcoin ethereum crane secp256k1 bitcoin краны monero wired tether bitcoin перевод
reward bitcoin теханализ bitcoin
bitcoin зебра monero ico machines bitcoin minergate bitcoin код bitcoin aml bitcoin claymore monero криптовалюту monero tabtrader bitcoin bitcoin автоматически registration bitcoin bitcoin список bitcoin миллионеры bitcoin настройка
ethereum майнить roboforex bitcoin tether gps аналоги bitcoin cryptocurrency law ethereum кошелек casper ethereum ethereum валюта bitcoin авито trade cryptocurrency bitcoin карта bitcoin today bitcoin windows
bitcoin motherboard
games bitcoin rate bitcoin бонусы bitcoin takara bitcoin collector bitcoin bitcoin example lootool bitcoin bitcoin cnbc ethereum web3 bitcoin цена bitcoin poker ethereum php bitcoin магазин ethereum info ethereum бутерин криптовалюту monero unconfirmed monero 22 bitcoin статистика ethereum bitcoin flapper bitcoin center hashrate bitcoin adbc bitcoin
bitcoin сделки bitcoin прогноз 99 bitcoin ethereum 1070 ethereum pool supernova ethereum frog bitcoin bitcoin reward bitcoin python ethereum курс
обмен monero bitcoin lucky bitcoin 30 автомат bitcoin coinder bitcoin bitcoin banks bitcoin usa cryptocurrency calculator bitcoin rt cryptocurrency faucet erc20 ethereum курс bitcoin 2016 bitcoin mempool bitcoin bitcoin сегодня bitcoin pattern обмен tether ethereum asics bitcoin antminer ethereum blockchain x2 bitcoin bitcoin 9000 bitcoin analytics bitcoin доходность форумы bitcoin лохотрон bitcoin rocket bitcoin l bitcoin криптовалюта tether
wordpress bitcoin bitcoin icon эмиссия ethereum bitcoin cran What Is Short-term Investing?Stored Bitcoins:bitcoin galaxy
bitcoin daemon bitcoin прогноз 4 bitcoin tether clockworkmod
bitcoin значок ethereum контракты bitcoin 2010 lamborghini bitcoin генераторы bitcoin bitcoin save bitcoin nachrichten
tether верификация создатель bitcoin
currency bitcoin minergate ethereum ninjatrader bitcoin get bitcoin bitcoin обозначение ethereum доллар продам ethereum bitcoin github rinkeby ethereum bitcoin казино
moneybox bitcoin daemon bitcoin форк bitcoin live bitcoin android tether bitcoin обменник bitcoin блог казино bitcoin
bitcoin yandex
best cryptocurrency mine monero san bitcoin bitcoin презентация bitcoin indonesia monero xmr
bitcoin обменник lealana bitcoin tether обмен bitcoin майнить перевод tether bitcoin com bitcoin прогнозы bitcoin development bitcoin instant bitcoin joker ethereum decred go bitcoin takara bitcoin debian bitcoin bitcoin fund adbc bitcoin bitcoin token bitcoin solo bitcoin lottery ethereum torrent delphi bitcoin bitcoin список mist ethereum bitcoin рынок новости ethereum 5Anonymous tradingрулетка bitcoin статистика ethereum bitcoin car bitcoin neteller exchange bitcoin There is still plenty of room for industrial companies to be blockchain pioneers. While it’s true that the sector trails only financial services as a perceived leader in the technology, the gap between the two is large: 46% of respondents in our survey said finance firms are out in front, compared with 12% for industrial manufacturing. It’s possible to avoid the common pitfalls that sabotage promising blockchain projects with intelligent planning, strong collaboration and a clear strategic vision.Ten questions every board should ask about cryptocurrenciesbitcoin зарегистрироваться
bitcoin fpga mini bitcoin okpay bitcoin стоимость bitcoin bitcoin legal bitcoin видео forum ethereum ethereum краны bitcoin maps reward bitcoin dash cryptocurrency ethereum miner ethereum io исходники bitcoin cryptocurrency news byzantium ethereum bitcoin автосборщик
ethereum пул ads bitcoin safe bitcoin prune bitcoin генераторы bitcoin bitcoin suisse часы bitcoin monero address bitcoin torrent bitcoin talk bitcoin создатель moneybox bitcoin prune bitcoin bitcoin monkey monero rub Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflationsteam bitcoin иконка bitcoin xbt bitcoin bitcoin future avto bitcoin ethereum erc20 bitcoin price monero 1060 enterprise ethereum bitcoin протокол wirex bitcoin ethereum gas conference bitcoin my ethereum
bitcoin mmgp node bitcoin ethereum сайт pokerstars bitcoin clame bitcoin avalon bitcoin адрес ethereum конференция bitcoin minergate bitcoin ethereum stratum bitcoin cc polkadot faucet cryptocurrency bitcoin protocol cryptocurrency calculator адреса bitcoin monero client cryptocurrency analytics half bitcoin panda bitcoin tether limited bitcoin world pps bitcoin
обмен monero tether gps хешрейт ethereum bitcoin visa
bitcoin save bitcoin cost monero windows ethereum price monero ann bitcoin london checker bitcoin bitcoin футболка сколько bitcoin bitcoin captcha Statebitcoin tm ethereum txid bitcoin land Bitcoin mining used to be able to be performed by CPUs (central processing units) like those found in your computer system at home. However, as more units began to mine the network, the difficulty of the hashes they were trying to guess increased. This made people turn to higher-powered processors such as GPUs (graphical processing units). These GPUs are commonly found in high-end gaming PCs.Discretionary/nondiscretionary monetary policyкупить monero bitcoin мониторинг
china cryptocurrency monero кран value bitcoin bitcoin spinner bitcoin currency ethereum investing mining ethereum tera bitcoin bitcoin free проекты bitcoin top bitcoin local bitcoin bitcoin wikileaks the ethereum bitcoin pps create bitcoin bitcoin зарабатывать ads bitcoin bitcoin casino bitcoin froggy ethereum project bitcoin обмен bitcoin forbes bitcoin synchronization bitcoin crypto ethereum получить stock bitcoin exmo bitcoin bitcoin casino технология bitcoin bitcoin coingecko auto bitcoin bitcoin hosting bitcoin local сайте bitcoin monero hashrate история ethereum air bitcoin bitcoin график bitcoin 2x bcc bitcoin takara bitcoin tether верификация покер bitcoin monero обменять bitcoin форум bitcoin lurk car bitcoin bitcoin сети полевые bitcoin bitcoin matrix
bitcoin currency monero биржи decred cryptocurrency half bitcoin
avatrade bitcoin polkadot stingray
monero rur bitcoin machines polkadot ico bitcoin 2010 fields bitcoin bitcoin валюты ethereum алгоритм ethereum форум ethereum clix отзывы ethereum bitcoin poloniex ledger bitcoin
ocean bitcoin bitcoin биржи bitcoin pizza форк ethereum ethereum покупка The root hash of the treeA Guide to Becoming a Blockchain DeveloperDOWNLOAD NOWBlockchain Career Guidedatadir bitcoin bitcoin видеокарты bitcoin lucky bitcoin services bitcoin help статистика bitcoin ccminer monero ethereum forum транзакции ethereum trade cryptocurrency обмен monero bitcoin server работа bitcoin
wikileaks bitcoin ethereum erc20 bitcoin онлайн monero difficulty cryptocurrency gold кошелька ethereum tether apk
bitcoin халява abi ethereum курс bitcoin credit bitcoin cryptocurrency magazine bitcoin cranes bitcoin рейтинг трейдинг bitcoin zebra bitcoin bitcoin кошельки bitcoin multiplier
greenaddress bitcoin
bitcoin cny collector bitcoin bitcoin virus
to bitcoin
bitcoin conveyor ethereum пул ads bitcoin
Image by Sabrina Jiang © Investopedia 2020bitcoin portable reindex bitcoin python bitcoin транзакции bitcoin ethereum install пицца bitcoin bitcoin lucky icon bitcoin monero cryptonote пулы ethereum bitcoin space ethereum биржа tether обменник bank bitcoin start bitcoin ethereum телеграмм bitcoin cc bitcoin биржа bitcoin half mini bitcoin
зарабатывать ethereum ultimate bitcoin ethereum crane monero gpu луна bitcoin chaindata ethereum bitcoin click dark bitcoin pools bitcoin bitcoin converter
bitcoin hunter prune bitcoin bitcoin cli фьючерсы bitcoin cryptocurrency mining chaindata ethereum
tether приложение ethereum microsoft
code bitcoin
avatrade bitcoin
bitcoin отзывы
ethereum виталий bitcoin ukraine
магазин bitcoin reddit cryptocurrency
blockstream bitcoin ставки bitcoin tp tether bitcoin capitalization monero обмен ethereum прибыльность bitcoin блокчейн
First, Bitcoin is a fantastic insurance policy against a number of systemicOngoing debates around bitcoin’s technology have been concerned with this central problem of scaling and increasing the speed of the transaction verification process. Developers and cryptocurrency miners have come up with two major solutions to this problem. The first involves making the amount of data that needs to be verified in each block smaller, thus creating transactions that are faster and cheaper, while the second requires making the blocks of data bigger, so that more information can be processed at one time. Bitcoin Cash (BCH) developed out of these solutions. Below, we'll take a closer look at how bitcoin and BCH differ from one another.cryptocurrency law car bitcoin bitcoin block bitcoin de bitcoin сети short bitcoin dark bitcoin обменять ethereum bitcoin алгоритм bitcoin кредит tether верификация bitcoin api
bitcoin block rx580 monero film bitcoin ethereum platform обновление ethereum bitcoin community bcc bitcoin bitcoin exchanges
instant bitcoin bitcoin venezuela bitcoin moneypolo loans bitcoin
block bitcoin bitcoin капитализация халява bitcoin asrock bitcoin
перевод tether cfd bitcoin price bitcoin bitcoin land bitcoin хайпы ethereum github bitcoin bbc monero news by bitcoin
bitcoin adress краны monero
bitcoin payza ethereum platform bitcoin png bitcoin carding bitcoin регистрации bitcoin price eos cryptocurrency bitcoin trust кран bitcoin bitcoin vps bag bitcoin wikileaks bitcoin bitcoin мастернода кликер bitcoin bitcoin xt rus bitcoin fast bitcoin bitcoin airbit bitcoin валюты bitcoin hosting 600 bitcoin forum cryptocurrency bitcoin poloniex ecdsa bitcoin bitcoin eth ethereum metropolis bitcoin автоматически decred ethereum nonce bitcoin casascius bitcoin bitcoin халява ethereum contracts ethereum transactions bitcoin crush
half bitcoin prune bitcoin avatrade bitcoin forecast bitcoin ann monero
bitcoin 0 deep bitcoin bitcoin attack сатоши bitcoin registration bitcoin рост bitcoin mail bitcoin ethereum torrent bitcoin vk bitcoin халява ethereum падение blocks bitcoin bitcoin kraken cryptocurrency calculator bitcoin allstars сети ethereum truffle ethereum ssl bitcoin doubler bitcoin bitcoin 0 стоимость ethereum программа tether bitcoin проверка картинка bitcoin bitcoin wmx bitcoin стоимость калькулятор ethereum bitcoin proxy краны monero форекс bitcoin bitcoin forbes ethereum акции сбербанк bitcoin difficulty bitcoin кошелек ethereum iphone tether bitcoin компания книга bitcoin bitcoin ads биржа ethereum
korbit bitcoin avatrade bitcoin
ethereum платформа bitcoin card store bitcoin bitcoin freebie bitcoin usa ethereum addresses
field bitcoin bitcoin видеокарты китай bitcoin
bitcoin all кошельки bitcoin bitcoin safe 10000 bitcoin bitcoin kurs field bitcoin bitcoin окупаемость bitcoin wallpaper bitcoin minergate
car bitcoin
kurs bitcoin bitcoin добыть майнинга bitcoin bitcoin мастернода bitcoin автосерфинг ethereum ротаторы bounty bitcoin bitcoin shops прогнозы ethereum This year, Facebook was forced to apologize for selling its users’ personal data.An important scalability feature of Bitcoin is that the block is stored in a multi-level data structure. The 'hash' of a block is actually only the hash of the block header, a roughly 200-byte piece of data that contains the timestamp, nonce, previous block hash and the root hash of a data structure called the Merkle tree storing all transactions in the block. A Merkle tree is a type of binary tree, composed of a set of nodes with a large number of leaf nodes at the bottom of the tree containing the underlying data, a set of intermediate nodes where each node is the hash of its two children, and finally a single root node, also formed from the hash of its two children, representing the 'top' of the tree. The purpose of the Merkle tree is to allow the data in a block to be delivered piecemeal: a node can download only the header of a block from one source, the small part of the tree relevant to them from another source, and still be assured that all of the data is correct. The reason why this works is that hashes propagate upward: if a malicious user attempts to swap in a fake transaction into the bottom of a Merkle tree, this change will cause a change in the node above, and then a change in the node above that, finally changing the root of the tree and therefore the hash of the block, causing the protocol to register it as a completely different block (almost certainly with an invalid proof of work).bitcoin wmz ethereum игра wikipedia cryptocurrency bitcoin xpub bitcoin матрица bitcoin withdrawal bitcoin hype
bitcoin завести bitcoin кран сервисы bitcoin кошельки ethereum Ultimately, the governance of the protocol does not occur via a well-defined, top-down fashion. Rather, it inverts traditional models of governance via enforcement from the bottom up.bitcoin conf matteo monero lealana bitcoin кликер bitcoin список bitcoin bitcoin click bitcoin биткоин wisdom bitcoin amazon bitcoin ethereum coin видео bitcoin продать ethereum
Ключевое слово life bitcoin скачать bitcoin
why cryptocurrency importprivkey bitcoin новости monero ethereum news As I said earlier, electricity costs for mining are high. The miners are rewarded with Bitcoin, so they are still making a profit. However, the electricity used by miners is very bad for the environment (now you know some downsides of the question about how does Bitcoin work).bitcoin buying
ставки bitcoin cryptocurrency nem moto bitcoin why cryptocurrency ethereum exchange minergate bitcoin icon bitcoin 4pda bitcoin спекуляция bitcoin bitcoin instagram youtube bitcoin проверка bitcoin bitcoin 4000 bitcoin armory bitcoin nvidia dwarfpool monero ethereum programming polkadot блог bitcoin brokers reddit ethereum air bitcoin
1 ethereum bitcoin перспектива bitcoin daily программа bitcoin bitcoin fun mine monero by bitcoin ethereum хардфорк bitcoin start bitcoin elena bitcoin goldmine ethereum телеграмм платформу ethereum cryptocurrency trade bitcoin charts bitcoin explorer bitcoin gambling ethereum скачать bitcoin elena bitcoin 100 курс ethereum okpay bitcoin майнинга bitcoin ethereum forks сложность ethereum difficulty ethereum bitcoin транзакции capitalization bitcoin майнить bitcoin bitcoin script прогнозы bitcoin bitcoin changer monero price покер bitcoin bitcoin kurs mine monero bitcoin игры mini bitcoin ethereum форум bitcoin зарегистрироваться bitcoin майнеры dance bitcoin bitcoin gambling oil bitcoin ethereum бесплатно bitcoin bat forecast bitcoin konverter bitcoin wallet tether monero калькулятор bitcoin script spots cryptocurrency bitcoin store polkadot store bitcoin get
майнер ethereum supernova ethereum nicehash ethereum ethereum получить bitcoin форум bitcoin aliens миксер bitcoin reklama bitcoin crococoin bitcoin покупка bitcoin captcha bitcoin сборщик bitcoin difficulty ethereum bitcoin проверка microsoft ethereum майн bitcoin Every single piece of data stored on the blockchain network is verified and encrypted using a cryptographic algorithmпулы ethereum bitcoin foto It is also important to note that Satoshi Nakamoto, creator of bitcoin, has never spent a bitcoin (other than giving them away when they were worthless) which we can verify by checking the blockchain.фото bitcoin
ethereum blockchain обвал ethereum bitcoin комментарии форк bitcoin bitcoin instagram monero форум
bitcoin protocol
удвоитель bitcoin machines bitcoin bitcoin joker bitcoin реклама майн ethereum r bitcoin bitcoin вконтакте bitcoin оборот зарегистрировать bitcoin bitcoin scrypt bitcoin mempool bitcoin лохотрон wikileaks bitcoin atm bitcoin cryptocurrency dash bitcoin информация claymore monero bitcoin widget etoro bitcoin bitcoin yandex технология bitcoin ethereum cryptocurrency
ethereum контракты bitcoin аналоги monero pools bitcoin word
reddit cryptocurrency monero кошелек cold bitcoin bitcoin бонусы mercado bitcoin bitcoin database bitcoin окупаемость монета ethereum market bitcoin bitcoin покупка bitcoin сервисы ethereum studio ethereum online форк bitcoin 777 bitcoin check bitcoin стоимость monero
japan bitcoin bitcoin poloniex bitcoin stock app bitcoin In August 2020, MicroStrategy invested $250 million in bitcoin as a treasury reserve asset. In October 2020, Square, Inc. put approximately 1% of their total assets ($50 million) in bitcoin. In November 2020, PayPal announced that all users in the US could buy, hold, or sell bitcoin using PayPal. On 30 November 2020, bitcoin hit a new all-time high of $19,860 topping the previous high from December 2017. Alexander Vinnik, founder of BTC-e, was convicted and sentenced to 5 years in prison for money laundering in France while refusing to testify during his trial. In December 2020 Massachusetts Mutual Life Insurance Company announced it has purchased $100 million in bitcoin, or roughly 0.04% of its general investment account.poloniex monero bitcoin config cryptocurrency tech дешевеет bitcoin курс tether bitcoin 20 sha256 bitcoin bitcoin qazanmaq приложение bitcoin (Only the first two steps require human action. The rest is done by the Bitcoin client software.)вход bitcoin payoneer bitcoin top bitcoin биткоин bitcoin bitcoin прогноз перевести bitcoin
bitcoin qt monero hardware
ethereum клиент bitcoin миллионеры bitcoin blocks купить tether best bitcoin теханализ bitcoin bitcoin kran доходность ethereum ethereum токены bitcoin компьютер вклады bitcoin aml bitcoin ethereum gold bitcoin список кости bitcoin bitcoin blockchain rigname ethereum bitcoin рублей Hardware wallets are the best balance between very high security and ease of use. These are little devices that are designed from the root to be a wallet and nothing else. No software can be installed on them, making them very secure against computer vulnerabilities and online thieves. Because they can allow backup, you can recover your funds if you lose the device.bitcoin pos bitcoin pdf bitcoin презентация hd7850 monero
mining monero bitcoin api майнер bitcoin котировка bitcoin bestexchange bitcoin algorithm bitcoin bitcoin casino bitcoin расчет bitcoin atm topfan bitcoin перспективы ethereum bitcoin forecast видеокарты bitcoin bitcoin golden спекуляция bitcoin bitcoin birds cryptocurrency nem bitcoin block трейдинг bitcoin ethereum contract maps bitcoin time bitcoin асик ethereum bitcoin рулетка bitcoin хардфорк
пример bitcoin cryptocurrency mining mine monero double bitcoin bitcoin cz криптовалюта monero ethereum script bitcoin 10000 4pda tether
ethereum pow проекта ethereum money bitcoin ccminer monero
рынок bitcoin blacktrail bitcoin car bitcoin etoro bitcoin bitcoin пул abc bitcoin перспектива bitcoin bitcoin center bitcoin sberbank bitcoin аккаунт 999 bitcoin ethereum перевод total cryptocurrency uk bitcoin bitcoin mmgp
bitcoin rotator bitcoin statistics ethereum ферма bitcoin дешевеет
bitcoin pools
bitcoin auto платформ ethereum bitcoin roll майнить bitcoin monero free book bitcoin скачать tether bitcoin donate bitcoin сатоши график bitcoin покупка ethereum bitcoin nyse bitcoin лого