This document summarizes Bitcoin mining. It explains that mining serves two purposes: determining the initial distribution of Bitcoins and synchronizing Bitcoin transactions. Mining involves performing specific calculations to obtain Bitcoins in return. Over time, mining has evolved from using CPUs to specialized mining hardware like FPGAs and ASICs that provide vastly higher hashrates. Miners are often organized into pools to help smooth rewards and reduce variance.
Cryptocurrency is the name given to a system that uses cryptography to allow the secure transfer and exchange of digital tokens in a distributed and decentralized manner. These tokens can be traded at market rates for fiat currencies.
Cryptocurrency is a digital currency in which cryptography techniques are used to regulate the generation of units of currency and verify the transfer of funds.
- Cryptocurrency operates independent of any central authority or individual.
- The supply of money is regulated by software and the agreement of users of the system.
- Trust based on peer to peer consensus.
- Transactions are irreversible.
Overview-
1. What is cryptocurrency?
2. The Difference
The tabular comparison between Fiat or conventional currency and Cryptocurrency on parameters like durability, portability, type, security etc.
3. Why use cryptocurrency?
Fast and cheap.
Easy to use.
Free to transfer and hold.
Decentralized control- users are the only owner of cryptocurrency.
Central government can’t take it away and there are no chargebacks.
Privacy and Security – Anonymous payments
Due to no intermediary (such as Bank or Credit Card Company) users have freedom to transact.
Transparency is maintained through public ledger system.
Reduced Fraud – eliminates cases of credit card frauds.
4. Evolution of cryptocurrency
Evolution of cryptocurrency from 2009 to 2015. Major Cryptocurrencies include are Bitcoin, Namecoin, Litecoin, Peercoin, Monero and Capricoin.
5. Categories of cryptocurrency
Cryptocurrencies are divide into various categories based on what type of algorithm used, type of community, investor involved, according to usage and on speed of transaction.
6. Major Cryptocurrencies
List of major Cryptocurrencies Bitcoin, Litecoin, Ripple, Peercoin, Mastercoin, NXT, Namecoin, Quarkcoin, Worldcoin and Megacoin
7. Bitcoin
First popular Cryptocurrency Bitcoin founded by Satoshi comprehensive details.
8. Technology
Bitcoin utilizes the following technologies which are Distributed ledger technology, Mining, Mining hardware, Mining Software, Blockchain and Bitcoin wallets.
9. Transaction Process
A typical transaction process of a Cryptocurrency namely Bitcoin involving concepts like wallet, block, transaction block-chain and proof-of-work algorithm. It gives step by step procedure on how the transaction is carried out in the case of Bitcoin.
10. Benefits
Fast, Safe and cheap
Ease of use and highly portable
Untraceable (pseudo-anonymous transactions)
Transparent and neutral
Decentralized nature
Active involvement of users
Fewer risks for merchants
Freedom to transact
Low inflation and collapse risk
11. Risks
- Problems in implementation- Hardware restrictions (Computational inefficiency), Instability, Deflation, Lack of Replicability and Growing centrality.
- Risk and failure in policy- Money Laundering, Purchase of illegal goods
- Supporting criminal activity- BTC Theft, Malware, Scams
- Risk for consumers- Fewer Protections, Cost, Lack of awareness and understanding and Still Developing.
This is an academic presentation by Sameer Satyam.
This talk was presented by Miguel Duarte (http://miguelduarte.pt) at Codebits (VII) (http://codebits.eu).
A video of the talk is available here: http://youtu.be/PgETyozr2cM
There original abstract was as follows:
You've probably heard of Bitcoin, right? Bitcoin is original cryptocurrency which exploded in value in the last few months and paved the way for alt-coins such as Litecoin, Quark or Dogecoin. Currently, 1 bitcoin is worth nearly $1000, which left some of the original investors and miners, with thousands upon thousands of bitcoins, quite rich. Recently, even the Dogecoin community helped fund Jamaica's bobsled team to help go to the Sochi Winter Olympics by donating 30 million dogecoins, or roughly $30,000! What the hell is that all about? This talk aims to explain what cryptocurrencies are, how they work, and how they create value.
Here are some of the topics I intend on covering:
-the advantages of cryptocurrencies;
-the basics of the blockchain;
-how new blocks are mined using proof-of-work algorithms;
-how to mine using CPU, GPU or even ASIC miners;
-differences between Bitcoin's algorithm and scrypt-based alt-coins;
-security considerations;
-an overview of how cryptocurrencies are currently being used in society;
-how cryptocurrencies can change the world's economic landscape.
Cryptocurrency is the name given to a system that uses cryptography to allow the secure transfer and exchange of digital tokens in a distributed and decentralized manner. These tokens can be traded at market rates for fiat currencies.
Cryptocurrency is a digital currency in which cryptography techniques are used to regulate the generation of units of currency and verify the transfer of funds.
- Cryptocurrency operates independent of any central authority or individual.
- The supply of money is regulated by software and the agreement of users of the system.
- Trust based on peer to peer consensus.
- Transactions are irreversible.
Overview-
1. What is cryptocurrency?
2. The Difference
The tabular comparison between Fiat or conventional currency and Cryptocurrency on parameters like durability, portability, type, security etc.
3. Why use cryptocurrency?
Fast and cheap.
Easy to use.
Free to transfer and hold.
Decentralized control- users are the only owner of cryptocurrency.
Central government can’t take it away and there are no chargebacks.
Privacy and Security – Anonymous payments
Due to no intermediary (such as Bank or Credit Card Company) users have freedom to transact.
Transparency is maintained through public ledger system.
Reduced Fraud – eliminates cases of credit card frauds.
4. Evolution of cryptocurrency
Evolution of cryptocurrency from 2009 to 2015. Major Cryptocurrencies include are Bitcoin, Namecoin, Litecoin, Peercoin, Monero and Capricoin.
5. Categories of cryptocurrency
Cryptocurrencies are divide into various categories based on what type of algorithm used, type of community, investor involved, according to usage and on speed of transaction.
6. Major Cryptocurrencies
List of major Cryptocurrencies Bitcoin, Litecoin, Ripple, Peercoin, Mastercoin, NXT, Namecoin, Quarkcoin, Worldcoin and Megacoin
7. Bitcoin
First popular Cryptocurrency Bitcoin founded by Satoshi comprehensive details.
8. Technology
Bitcoin utilizes the following technologies which are Distributed ledger technology, Mining, Mining hardware, Mining Software, Blockchain and Bitcoin wallets.
9. Transaction Process
A typical transaction process of a Cryptocurrency namely Bitcoin involving concepts like wallet, block, transaction block-chain and proof-of-work algorithm. It gives step by step procedure on how the transaction is carried out in the case of Bitcoin.
10. Benefits
Fast, Safe and cheap
Ease of use and highly portable
Untraceable (pseudo-anonymous transactions)
Transparent and neutral
Decentralized nature
Active involvement of users
Fewer risks for merchants
Freedom to transact
Low inflation and collapse risk
11. Risks
- Problems in implementation- Hardware restrictions (Computational inefficiency), Instability, Deflation, Lack of Replicability and Growing centrality.
- Risk and failure in policy- Money Laundering, Purchase of illegal goods
- Supporting criminal activity- BTC Theft, Malware, Scams
- Risk for consumers- Fewer Protections, Cost, Lack of awareness and understanding and Still Developing.
This is an academic presentation by Sameer Satyam.
This talk was presented by Miguel Duarte (http://miguelduarte.pt) at Codebits (VII) (http://codebits.eu).
A video of the talk is available here: http://youtu.be/PgETyozr2cM
There original abstract was as follows:
You've probably heard of Bitcoin, right? Bitcoin is original cryptocurrency which exploded in value in the last few months and paved the way for alt-coins such as Litecoin, Quark or Dogecoin. Currently, 1 bitcoin is worth nearly $1000, which left some of the original investors and miners, with thousands upon thousands of bitcoins, quite rich. Recently, even the Dogecoin community helped fund Jamaica's bobsled team to help go to the Sochi Winter Olympics by donating 30 million dogecoins, or roughly $30,000! What the hell is that all about? This talk aims to explain what cryptocurrencies are, how they work, and how they create value.
Here are some of the topics I intend on covering:
-the advantages of cryptocurrencies;
-the basics of the blockchain;
-how new blocks are mined using proof-of-work algorithms;
-how to mine using CPU, GPU or even ASIC miners;
-differences between Bitcoin's algorithm and scrypt-based alt-coins;
-security considerations;
-an overview of how cryptocurrencies are currently being used in society;
-how cryptocurrencies can change the world's economic landscape.
Quick Understanding of Bitcoin/Cryptocurrency.Satish Mudaliar
This slide briefs you about the BItcoin/Cryptocurrency knowledge and facts. This slide is made for diffrent purpose but sharing here to help someone getting a quick knowledge of Bitcoins.
Can Bitcoin be forecasted like any other asset?Patrick Bucquet
Bitcoin raises a lot of interrogations and challenges due to its youth and disruptive technology. This paper starts by giving an overview of bitcoin and blockchain technology. Then, a comparison with other asset classes is presented to identify possible similarities or divergences. The final objective of this document is to propose a pricing model for bitcoin.
For more info check out blockchainhub.net. If you are new to cryptocurrency, you will need to understand some basic facts about storing and securing your money. Coins like Bitcoin are stored in the so-called “wallets”. This tutorial will guide you through the first steps of purchasing cryptocurrency.
CH&Co and COQONUT are proud to publish the first Crypto-Investor Observatory to understand better crypto-investors: how many are they, who are they, why do they invest
This a Joint study by CH&Co, consulting company specialized in Financial Services and COQONUT, the reliable data driven compass for the Crypto-World.
Is cryptocurrency really the future of money? Bitcoin is the first and most famous cryptocurrency that exploded in late 2013 when the price per Bitcoin exceeded $1200. This is an explanation of what cryptocurrency is and how payments are processed
An Introduction to Bitcoin, Blockchain and CryptocurrencyAmarpreet Singh
Heard that bitcoin value doubled again? or new cryptocurrency IPO’s are taking over the stock market! Well, cryptocurrency is just the tip of the iceberg. Blockchain technology is a lot more than just cryptocurrency and can revolutionize almost everything which surrounds us. This presentation will help you grab a quick introduction to Bitcoin, Blockchain and Cryptocurrency
Introduction to blockchain and cryptocurrency technologiesPaweł Wacławczyk
Introduction to cryptography primitives and fundamental data structures. Discuss the process of achieving distributed consensus, proof-of-work and potential attacks on network.
Quick Understanding of Bitcoin/Cryptocurrency.Satish Mudaliar
This slide briefs you about the BItcoin/Cryptocurrency knowledge and facts. This slide is made for diffrent purpose but sharing here to help someone getting a quick knowledge of Bitcoins.
Can Bitcoin be forecasted like any other asset?Patrick Bucquet
Bitcoin raises a lot of interrogations and challenges due to its youth and disruptive technology. This paper starts by giving an overview of bitcoin and blockchain technology. Then, a comparison with other asset classes is presented to identify possible similarities or divergences. The final objective of this document is to propose a pricing model for bitcoin.
For more info check out blockchainhub.net. If you are new to cryptocurrency, you will need to understand some basic facts about storing and securing your money. Coins like Bitcoin are stored in the so-called “wallets”. This tutorial will guide you through the first steps of purchasing cryptocurrency.
CH&Co and COQONUT are proud to publish the first Crypto-Investor Observatory to understand better crypto-investors: how many are they, who are they, why do they invest
This a Joint study by CH&Co, consulting company specialized in Financial Services and COQONUT, the reliable data driven compass for the Crypto-World.
Is cryptocurrency really the future of money? Bitcoin is the first and most famous cryptocurrency that exploded in late 2013 when the price per Bitcoin exceeded $1200. This is an explanation of what cryptocurrency is and how payments are processed
An Introduction to Bitcoin, Blockchain and CryptocurrencyAmarpreet Singh
Heard that bitcoin value doubled again? or new cryptocurrency IPO’s are taking over the stock market! Well, cryptocurrency is just the tip of the iceberg. Blockchain technology is a lot more than just cryptocurrency and can revolutionize almost everything which surrounds us. This presentation will help you grab a quick introduction to Bitcoin, Blockchain and Cryptocurrency
Introduction to blockchain and cryptocurrency technologiesPaweł Wacławczyk
Introduction to cryptography primitives and fundamental data structures. Discuss the process of achieving distributed consensus, proof-of-work and potential attacks on network.
Coinomia Bitcoin and Ethereum Mining Compensation PlanCoinomia
Coinomia Review ---- http://ethclix.com -----How Cryptocurrency Mining Works----- JOIN HERE ----- ------------------ http://bit.ly/coinomia1 -----COINOMIA INTRODUCTION COINOMIA is an application for mining in cryptocurrencies with any of the available gadgets, a user have. Designed to cater both new miners and power users, Coinomia requires no configuration at any device. The power allotment can be managed from anywhere and can be distributed among various cryptocurrencies. They are mining since early 2014, even before Ethereum was live! They have centres across the world and They have invested in latest ASIC chips and mining equipments. There data centres are managed properly, energy efficient and they have ensured the security and maintenance with advance tools and technology. They also provide softwares to users who have an urge to mine at their own! #coinomia #bitcoin #ethereum #cryptocurrency #blockchain #lisk #monero #steemit #zarfund #viralcrypto crypto mining binary comp review, crypto mining binary compensation plan, bitcoin mining binary compensation plan, ethereum mining binary compensation plan, binary compensation plan bitcoin mining, binary compensation plan ethereum mining, bitcoin, ethereum, crypto currency, crypto mining, bitclub, bitclub network, steemit, lisk, monero, maidsafe, safecoin, altcoin, dascoin, onecoin, ankur agarwal, ankur, agarwal, zarfund, viralcrypto, coinomia, coinomia review, coinomia reviews, coinomia compensation plan, coinomia bitcoin, coinomia ethereum, coinomia crypto mining, coinomia crypto currency, coinomia honest reviews, coinomia bitcoin mining, coinomia ethereum mining, bitcoin 2016, bitcoin mining pool,
What is Bitcoin and How is it related to Satoshi Nakamoto White Paper.pdfSuraj Sharma
Well the terms like bitcoin & block chain are being coined and referred to everywhere over the internet or over any investment or financial platform the reason being its increasing popularity and the mammoth returns that people have made by investing in these avenues.
Although the concept of bitcoin is known to many but still there are many that are confronted with this question that what is a bitcoin and how does it work? so, in this blog I have made a sincere effort to explain the same in the easiest of manner for you to understand this concept. So as we move ahead we will dive in this concept of What is Bitcoin? How is it related to White paper of Satoshi Nakamoto? to understand the basics of bitcoins and how would its future be like.
The term crypto currency is being coined everywhere due to its increased popularity worldwide, it is being looked at with great aspiration to park one’s money for a lucrative and manifold return. One can well imagine the return percentage on his/her investment in bitcoins by the fact that 1 bitcoin was worth $0 in 2009 and it now values at $55,353 (at the time of writing this article).
This means you could have been a millionaire or a billionaire if a reasonable investment was made in bitcoins in 2009 and was to be redeemed now.
Cryptocurrency- A Digital asset as a medium of exchange:
Crypto currency is a digital asset that is designed in such a manner that it offers the benefits of a medium of exchange like any other currency, so you can buy any item in exchange of these digital assets that you possess from the seller that accepts these forms of payments.
These digital assets are stored in computerized databases as they do not exist in physical form, using strong cryptography to secure the transaction records.
Decentralized Cryptocurrency Explained in Easy:
Whenever these digital currencies are minted, mined or created by the originator , the process is said to have exercised a centralized control, however when these are further disseminated to larger groups a decentralized control is said to have exercised. Each cryptocurrency functions through a distributed ledger technology that is typically known as block chain technology that serves as a public financial transaction database.
Although there are several other Cryptocurrencies that exist in the digital world and they too have offered good returns over a period of time, but the major issue involved in these digital currencies is that they are not backed by any of the apex bank of any country nor do they are traded in any banking channel.
Usually these digital currencies or cryptocurrencies that are not backed by any government or banking channel have no intrinsic value and nor do they will have in future.
Their values are derived purely on the basis of market forces of demand and supply and are a private fiat money. The market of these digital assets is highly volatile and have no capping on their price increase or decrease.
GET RICHER MINING BITCOIN VAULT - JOIN US- https://bit.ly/btcvminingmarketKennedy Odigie
START MINE BITCOIN VAULT JOIN US NOW = https://bit.ly/btcvminingmarket
MINE BITCOIN VAULT WITH MININGCITY NOW .INVEST INTO BTCV MINING NOW WITH AT LEAST $300 INVESTMENT.THIS IS A GENERATIONAL BUSINESS.
EARN PASSIVE INCOME DAILY , NO NEED TO REFER ANYONE BUT, IF YOU DECIDE TO REFER THEN YOU ARE BUILDING A BIG MARKET . YOU CAN EVEN INVEST INTO THE LIVES OF YOUR FAMILY MEMBERS .IF YOU HAVE THE CASH TO DO THIS . YOU CAN BRING THEM IN LATER .
JOIN US NOW
HOW TO JOIN THIS COMMUNITY OF MINERS
1. Sign up through the Affiliate Link
of the Person that Invited You.
USE THIS LINK =
https://bit.ly/btcvminingmarket
2, Choose from any of ther
BTCV plans available.
3. Begin mining BTCV 10 days after purchase!
About Mining City
Mining City is the marketing arm for
MineBest.
Mining City is a global company which
rents out hash power to mine
cryptocurrencies. Over 300,000
customers have already trusted Mining
City to unite their strength and increase
the chance to strike digital gold!
MineBest provides the mining power –
takes care of the technology and
maintenance – while the Mining City
community reaps the rewards.
Transparency of
Mining City
-------
Our company expedites mining in a B2B
model. The income is split accordingly:
Mining City:
• 35% commissions
• 2% salaries
MineBest Hosting:
• 6% mining farms
• 24% miners purchase and maintenance
• 3% shipping and taxes
• 20% pre-mining
• 10% company profit
About MineBest
--------
1. Mining Expertise
MineBest is a technologically advanced infrastructure company that specializes in cryptographic
computing activities. It is one of the most dynamic growing companies in the Cryptocurrency mining
industry, and has been in the mining and cryptocurrencies fields since its inception in 2017.
2. Stability of Mining Farm
MineBest hosts multiple cryptocurrency mining farms in Kazakhstan at 20 MW, 20 MW and 50 MW all at
full capacity. Also in Kazakhstan, MineBest have a 20 MW and 150 MW facilities under construction, as
well as a 100 MW data center in China under construction (50 MW currently operational) – all expected to
be ready in Q2 of 2020.
Bitcoin – for some people, this may be something making them excited and sleepless while for some others, it may be the first time they have come across such a term.
Blockchain & Cryptocurrencies Intro - July 2017🔗Audrey Chaing
An overview of blockchain, cryptocurrencies, Bitcoin, Ethereum, ICOs. Meant to be introductory level but provide a slightly higher level of detail. Includes some companies to watch in the blockchain space. Prepared before the August 1 fork, which did occur.
Bitcoin price today BTC to USD market cap.pdfFranck La Rocca
As of 4:11 p.m., the price of Bitcoin is $16,171.30, changing -2.19% from the previous day. The market capitalization of the tokens was $310,785,787,847.95 after the recent fluctuations in the price of bitcoin. Bitcoin has had a shift of -65.00% so far this year. According to the CoinDesks Digital Asset Classification Standard, Bitcoin is categorized as a currency (DACS).
There are plenty of bitcoin and blockchain intro decks, so why create another one? Because they are either too technical or too vague on how blockchain actually works! This talk is prepared for audiences who have good educational background and general knowledge about internet. It is used during my trip to Taiwan so some Chinese translations are included. It starts with a basic definition and a functional description of how bitcoin solves the double spending problem, how it was implemented in blockchain, what is mining and why it is critical to the bitcoin ecosystem. Based on these understandings, it goes up a level to talk about how to use cryptocurrencies, the characteristics of a blockchain, and why it has the potential to disrupt financial services and beyond. The talk finishes with an overview of the cryptocurreny market, the rise of Ethereum, and the recent ICO phenomenon. There are several versions of this presentation. This particular version is for financial services professionals so there is more emphasis on blockchain adoption. The CS version covers the math behind mining in more depth, and the general public version provides some cautionary notes regarding speculating on cryptocurrencies. LINE characters are used in illustrations due to their popularity in Taiwan. The American version uses the Simpsons.
This is a made easy e-book on how to understand the basics of cryptos summarized in the most understandable way it can be so that layman and normal people who have no idea on cryptos can decide if they will invest or not.
In this issue of Math in the News we explore Bitcoin. We look at how it's used for making purchases and how it differs from other currencies. This provides an opoortunity to apply the concept of currency exchange.
1. What is mining?
A bird’s eye view of Bitcoin mining
Meni Rosenfeld
1 Written by Meni Rosenfeld 21/1/2013
2. Introduction
Bitcoin mining consists in using computers to perform
specific calculations, and obtaining bitcoins in return
Bitcoin is not about mining!
Bitcoin is a decentralized digital currency
Mining is the means to that end
A Bitcoin user does not need to do mining
This talk will touch on key concepts in mining
2 Written by Meni Rosenfeld 21/1/2013
3. Why does Bitcoin need mining?
Mining is a system that serves two distinct purposes:
Determining the initial distribution of coins
Synchronizing Bitcoin transactions
3 Written by Meni Rosenfeld 21/1/2013
4. Initial distribution of bitcoins
Bitcoins are property; someone needs to own them when
created.
The inventor of Bitcoin? Not fair
Equally to each person? Requires physical authority
By software instances? Can be cloned/gamed
By IP addresses? Centralized and arbitrary
…?
Distribution according to proof of computational work is fair,
measurable, “pure” and has low overhead
Long term, initial distribution doesn’t matter that much
4 Written by Meni Rosenfeld 21/1/2013
5. Synchronizing transactions
Digital currencies have a problem called “double spending”
The owner of a coin can try to use the same coin to pay two people
simultaneously
Centralized solutions are known
The first decentralized solution is the blockchain (mining),
invented in 2008 by “Satoshi Nakamoto”
This talk is not about how mining works to synchronize
transactions
5 Written by Meni Rosenfeld 21/1/2013
6. Mining hardware
Mining involves a specific calculation – SHA-256
Mining performance is measured in MH/s
(Mega hashes per second)
Types of hardware (performance per $1K)
CPU: 10 MH/s
GPU: 1,000 MH/s
FPGA: 2,000 MH/s
ASIC: 40,000 MH/s
6 Written by Meni Rosenfeld 21/1/2013
7. Mining rewards
Miners work & try to find blocks
For each block found they get:
Newly generated coins (currently 25 BTC per block)
New coins gradually enter circulation
New coins per block are reduced by half every 4 years
There will never be more than 21M bitcoins
Transaction fees (currently ~0.3 BTC per block)
Bitcoin users pay them out of existing coins
Help the transaction to execute faster
Will become more significant going forward
7 Written by Meni Rosenfeld 21/1/2013
9. Mining difficulty
“Difficulty” controls the number of hashes required to
find a block
Difficulty is adjusted every 2 weeks to keep the rate of
finding blocks at one per 10 minutes on average
Difficulty increases as more people mine –BTC
generation rate is fixed, distributed in proportion to
mining performance.
9 Written by Meni Rosenfeld 21/1/2013
10. Mining pools
Finding blocks is discrete, random and highly variable
A miner expecting to find 1 block on average per month
(~$360) will actually find 0-3 blocks
Not good for cash flow or mental health
Most miners join a mining pool, mine together and share the
rewards
Mining rewards in a pool are very close to average
Many pools with different size, reward method and other
features. Some good, some not so good
10 Written by Meni Rosenfeld 21/1/2013
11. Mining as an investment
Buying mining hardware is a risky investment
Future BTC price is unknown
Future difficulty is unknown
Might never reach positive ROI
Running a mining operation requires technical expertise
Capital markets help separate the two
11 Written by Meni Rosenfeld 21/1/2013
12. The ASIC arms race
Multiple companies are working on dedicated Bitcoin mining
chips
Butterfly Labs (multiple delays)
bASIC (scrapped due to internal conflicts)
Avalon (shipped yesterday!)
ASICMINER (will mine itself, not sell hardware)
DeepBit
The advent of ASIC chips will be very disruptive
Investing in mining now is even riskier than usual
Seeing this transition unfold will be interesting
12 Written by Meni Rosenfeld 21/1/2013