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Bitcoin Transaction Latency

Weaknesses - Bitcoin Wiki

Weaknesses - Bitcoin Wiki

The wallet is stored unencrypted, by default, and thus becomes a valuable target for theft. Recent releases of the Bitcoin client now supports encryption to protect the wallet data, though the user must opt-in. New wallets vulnerable with old passwords via backups An old copy of a wallet with its old password is often easily retrievable via an existing backup facility (particularly Apple Time-Machine): draining that old wallet, with its old password, drains the current wallet with the current password -- this is contrary to most non-technical users expectation of what 'change the password on your wallet' should mean following password compromise. An initial solution is to mandate (either in code or as expressed policy) that changing a wallet's password causes (or asks the user to cause) the creation of a new wallet with new addresses, and the sending of existing sums to them. Backed-up copies of the original wallet with the original password would then be empty, should they be compromised. On the downside, the password-changing process would potentially take much longer, cost a transaction fee or more, and - intially at least - the new wallet is no longer backed up. On the upside, non-technical users won't find their wallets drained from security compromises they believed they had closed, nor be required to locate existing backups of a wallet in order to destroy them. Tracing a coin's history can be used to connect identities to addresses. More info . An attacker can attempt to fill the network with clients controlled by him, you would then be very likely to connect only to attacker nodes. Although Bitcoin never uses a count of nodes for anything completely isolating a node from the honest network can be helpful in the execution of other attacks. This state can be expl Continue reading >>

What Problems Does Lqn Solve?

What Problems Does Lqn Solve?

What Problems does the Liquidity.Network solve? The Liquidity.Network addresses, (i) solves problems of existing payment channel network proposals and adresses (ii) scaling and privacy problems of existing blockchains. Problems and solutions to existing off-chain payment proposals First, payment channels require collateral to be locked up for every channel. This locks up a substantial amount of funds that cannot be used with other nodes in the network. Routing payments certainly alleviates this issue, but still limits the available funds to a particular set of routes. The Liquidity.Network allows any member of a payment hub, to pay any other member of a payment hub with the allocated funds. Second, existing payment channels do not allow to be re-filled off-chain. The Liquidity.Network team has proposed REVIVE , a novel protocol that allows to refund payment channels off-chain therefore further increasing the Liqudity.Network's scalability. We have already implemented REVIVE and it is a central contribution to the Liqudity.Network. REVIVE allows to rebalance payment channels off-chain, avoiding the degradation of payment channels without costly on-chain transactions. Third, routing complexity is one of the biggest hurdles of current off-chain scaling solutions such as Lightning and Raiden. Due to it's hub network structure, the Liquidity.Network requires significantly less routing, while still benefitting of a decentralized nature. Multiple Liquidity.Network hubs can be interconnected with efficient routes for decentralization and redundancy purposes. The Liquidity.Network operates with simple routing designs, avoiding the complexities faced by Lightning and Raiden. Microtransactions are typically transactions that are valued below 10 USD, while Small Value Transfers ar Continue reading >>

State Of The Bitcoin Network

State Of The Bitcoin Network

Distribution of 5743 full nodes obtained from bitnodes.21.co/ (Jan 9th, 2017) The Bitcoin network is similar to a living organism. It continuously undergoes rapid changes in terms of distribution, size, and quality of its components. Its evolution impacts the security and the performance of the whole system. The current measurement infrastructure is built on 17 nodes We have been observing the ongoing evolution of the Bitcoin network with a measurement tool that actively collects data from the actual network.Our measurement tool consists of long-running processes executing on a globally distributed infrastructure that spans 5 continents.We have been continuously collecting data regarding the provisioned bandwidth of peers, peer-to-peer latency, and protocol-level network traffic for Bitcoin nodes connected over IPv4, IPv6, and Tor nodes. We have been using this tool to populate the data for the Miniature World system, whose goal is to replicate the entire Bitcoin network at 1:1 scalein the basement of our department in order to evaluate protocols. In this post, we want to highlight some of the interesting discoveries from our last batch of measurements in the process of characterizing the Bitcoin network. Provisioned bandwidth is estimated using the maximum epoch bandwidth Provisioned bandwidth is a lower bound on the estimated transmission bandwidth of a Bitcoin node. It typically corresponds to the limits imposed by its last-mile connection to the Internet. Provisioned bandwidth forms the bottleneck for a bitcoin peer to receive/transmit blocks, transactions, and corresponding metadata. Higher provisioned bandwidth lets miners propagate/collect blocks to/from the network faster. Our tool measures provisioned bandwidth by requesting a large number of blocks from each Continue reading >>

How Long Does It Take For A Bitcoin Transaction To Be Confirmed?

How Long Does It Take For A Bitcoin Transaction To Be Confirmed?

How long does it take for a Bitcoin transaction to be confirmed? Stanford researcher Dr. Joseph Bonneau explains the distinction between confirmed and unconfirmed Bitcoin transactions. [For the latest on policy and regulation relating to cryptocurrencies like Bitcoin, see what we're doing to protect your right to innovate with cryptocurrencies .) Frequently in popular descriptions of Bitcoin and in the user interfaces of wallet software, a distinction is made between confirmed and unconfirmed transactions. What is the difference? At a high level, a transaction is only confirmed when it is permanently included in the Bitcoin blockchain. The blockchain is a ledger of all transactions in the history of Bitcoin. It is append-only, meaning new data can be added to the end of the ledger, but data can never be removed once included. This ledger is necessary to prevent double-spending, which is a key technical challenge in designing any cryptocurrency. Recall that if Alice owns some quantity of bitcoins, this really means she knows one or more cryptographic keys which have been designated as the controller of those coins in a transaction on the ledger which transferred the coins to Alice. In order to transfer the coins to another entity, Alice will use these keys to produce a digital signature on the statement I would like to redeem (spend) this transaction and send the value to X, Y, Z where X, Y, and Z will be new cryptographic addresses representing keys known by other individuals (or perhaps Alice herself). Now, suppose Alice signs a statement on her own computer saying she wants to transfer some coins to Bob but never sends the statement to Bob. In this case, clearly the coins have not been transferred. This is roughly like a tree falling in the forest with nobody around Continue reading >>

Dan Larimer Reportedly Working On Sub-second Latency In Eos

Dan Larimer Reportedly Working On Sub-second Latency In Eos

Anyone who has spent the last few years following the cryptocurrency space has likely run across the name of Dan Larimer. His involvement in Bitcoin dates back to some of the earliest forum posts by Satoshi Nakamoto. Now, Dan Larimer is looking to push the boundaries of the blockchain itself. While cryptocurrencies have obviously gained a lot of traction in 2017, we have already seen the potential for transaction times to outpace the capacity of the individual blockchains in which the transactions exist. Essentially, independent blockchains result in creating this scarcity, as they are all significantly limited by their bandwidth, hardware and overall designs. As we have seen over the past year, both Bitcoin and Ethereum have hit their transaction limits at times of peak network activity, putting significant strain on the ability of users to access their tokens. This resulted in delays, higher fees and a significant backlog of transactions. Larimer has long advocated using his self-developed DPoS (Delegated Proof of Stake) as a solution to this problem. This technology has come under some criticism in the past, however, as many have argued that by relying on only 20-100 validators, the system can be unduly centralized. This point has been argued by Larimer on many occasions, who has responded that in fact, DPoS is the most decentralized, by choosing not to focus on wealth as a selection criteria, something often used in other blockchains. At present, Dan is dedicating his efforts to the as-yet-unlaunched EOS platform, which aims to serve as a platform for truly next-generation decentralized applications. Many of the features being developed for EOS can already be seen in their infancy in his previous two projects. With Bitshares (2014) and Steem (2016), Dan has long si Continue reading >>

One Bitcoin Transaction Now Uses As Much Energy As Your House In A Week

One Bitcoin Transaction Now Uses As Much Energy As Your House In A Week

from the magic-and-energy-intensive-internet-money dept. Long-time Slashdot reader SlaveToTheGrind quotes Motherboard:Bitcoin's incredible price run to break over $7,000 this year has sent its overall electricity consumption soaring, as people worldwide bring more energy-hungry computers online to mine the digital currency . An index from cryptocurrency analyst Alex de Vries, aka Digiconomist, estimates that with prices the way they are now, it would be profitable for Bitcoin miners to burn through over 24 terawatt-hours of electricity annually as they compete to solve increasingly difficult cryptographic puzzles to "mine" more Bitcoins. That's about as much as Nigeria, a country of 186 million people, uses in a year. This averages out to a shocking 215 kilowatt-hours (KWh) of juice used by miners for each Bitcoin transaction (there are currently about 300,000 transactions per day). Since the average American household consumes 901 KWh per month, each Bitcoin transfer represents enough energy to run a comfortable house, and everything in it, for nearly a week. Continue reading >>

Bitcoin Relay Network

Bitcoin Relay Network

This information is out-of-date, please see the new FIBRE-based relay network page , instead. The Bitcoin Relay Network is a high-speed block-relay system primarily for miners. It relays blocks around the globe (see map below) in low multiples of global latency (usually 100-300ms, see the stats page ). It is in use in one way or another by the majority of major miners. Please check your client version - anything other than "the blocksize" or "sponsor printer" is broken and will not successfully send or receive blocks! The relay network is donation-supported. It is currently being migrated to an entirely new infrastructure which will cost approximately 50 USD per month. If you find it useful, please consider donating to 1NRuqMJAzUGwvFigukLa3UZqcJXix1dETM. The Bitcoin Relay Network is a system of peering between nodes inthe network by creating a system of high-speed relay nodes for minersand merchants/exchanges. This system a) acts as a fallback in thecase that the public Bitcoin network encounters issues and b) decreasesblock propagation times between miners.It is NOT designed to in any way replace or decrease the need for thepublic Bitcoin P2P network. It is NOT any kind of attempt atcentralization, and I still encourage interested parties to establishtheir own private peering agreements with large miners as needed.The Bitcoin Relay Network consists of a few nodes scattered aroundthe globe, all of which peer with each other. In order to participateyou should simply run the local client (it will automatically select the serverclosest to you).The current relay nodes can be found at (note that several nodes have several cnames, also see map below)Note that two nodes (Singapore and Siberia) are relay-only and are not available to end-users.public.us-west.relay.mattcorallo. Continue reading >>

Dummies Guide To Bitcoin Energy Use

Dummies Guide To Bitcoin Energy Use

For past couple of months, there has been an increased focus on bitcoin energy usage. Recent examples are Vice article and IEEE . This post attempts to explain bitcoins energy usage. It also tries to add some perspective on the energy problem. Warning: This article gets a bit technical. It is digital money is simplest explanation for bitcoin. Digital currencies have an inherent problem. Lets take an example. A digital currency called MyDitigalCoin: If I need more MyDigitalCoin I can create a copy. Tada! I have 2 coins now. It is calleddouble spending. The solution is to record ownership information. Ownership and amount can be verified using this record. You can now reject every copy coin. This record is called a ledger. Banks use ledgers to store your ownership and spending. Banks secure and maintain the private ledgers. Government authorities act as monitoring authority for the banks. A cryptocurrencys ledger is open to everyone. Anyone can check and edit the ledger. Hence the name public ledger. Editing the ledger requires a trusted party. The identity verification of the trusted party should be fast. We discussed proof of work earlier on this blog here . Proof of Work asks a miner to generate a token (nonce). The nonce verification happens in less than a second. After verification, the miner can edit the ledger and earn reward coins. On the internet there is always a delay between action and reaction. This time delay is called latency . In Bitcoin, it is the time difference between block creation(action) and acceptance by all peers(reaction). This process of a block being accepted by other peers is known as block propagation. Because of this delay there are always multiple versions of a blockchain. Wikipedia entry on blockchain has a diagram: Green box is our genes Continue reading >>

Bitcoins Big Problem: Transaction Delays Renew Blockchain Debate

Bitcoins Big Problem: Transaction Delays Renew Blockchain Debate

Bitcoins Big Problem: Transaction Delays Renew Blockchain Debate The continued delay in processing bitcoin transactions coupled with the increased cost has led to record levels of complaints. Photo: Reuters/Benoit Tessier Bitcoin is facing a major problem as the time it takes transactions to be processedhas increaseddramatically leading businesses to stop accepting the cryptocurrency and others to issue warnings that the problems could be terminal. The problem is not something that has come out of the blue with those within the bitcoin community as well as researchers pointing to this looming issue for some time. The problem relates to how transactions are processed on the blockchain, the decentralized, distributed ledger technology that underpins bitcoin. The average time it takes for a bitcoin transaction to be verified is now 43 minutes , and some transactions remain unverified forever. Some of the problem stems from the fact that anyone can add a fee to every bitcoin transaction, which bumps that transaction up in the queue, meaning that those who didnt pay such a fee or didnt pay a sufficiently big fee may be waiting hours and sometimes even days for a transaction to complete. This is how it works. When someone uses bitcoin to pay for an item in a shop, that transaction needs to be verified on the blockchain. This is done by what are known as miners, individuals or groups who use massive computing power to solve increasingly complex mathematical equations to mine new bitcoins, which come in blocks and are mined about every 10 minutes. These blocks are used to record all transactions made on the bitcoin network, and have a maximum size of 1 megabyte (MB), meaning they can record just seven transactions per second at most. To put this in context, Visa says its payme Continue reading >>

Average Confirmation Times : Bitcoin

Average Confirmation Times : Bitcoin

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person accepting bitcoins on behalf of the charity is trustworthy. News articles that do not contain the word "Bitcoin" are usually off-topic. This subreddit is not about general financial news. Submissions that are mostly about some other cryptocurrency belong elsewhere. For example, /r/CryptoCurrency is a good place to discuss all cryptocurrencies. Promotion of client software which attempts to alter the Bitcoin protocol without overwhelming consensus is not permitted. Trades should usually not be advertised here. For example, submissions like "Buying 100 BTC" or "Selling my computer for bitcoins" do not belong here. /r/Bitcoin is primarily for news and discussion. Please avoid repetition /r/bitcoin is a subreddit devoted to new information and discussion about Bitcoin and its ecosystem. New merchants are welcome to announce their services for Bitcoin, but after those have been announced they are no longer news and should not be re-posted. Aside from new merchant announcements, those interested in advertising to our audience should consider Reddit's self-serve advertising system . Do not post your Bitcoin address unless someone explicitly asks you to. Be aware that Twitter, etc. is full of impersonation. Continue reading >>

7 Myths About The Bitcoin Blockchain

7 Myths About The Bitcoin Blockchain

There's some confusion around what the Bitcoin blockchain can and can't do. Gartner analysts list 7 common myths about the technology. Byron Connolly (CIO) 15 April, 2016 16:08 Everyones talking about the Bitcoin blockchain a global, distributed ledger of transactions for the Bitcoin digital currency allowing for peer-to-peer payments over the Internet. According to a Gartner definition, the Bitcoin blockchain is an authoritative record of Bitcoin transactions, and is not stored in, or controlled by, a central server. Instead, transaction data is replaced as a whole across a peer-to-peer network of thousands of coins. The Bitcoin blockchain is being applied across many industries in areas such as the Internet of Things, digital rights management, and global payments. But among all the global noise, there is some confusion around what it can and cant do. In a report published this month, Gartner analysts Ray Valdes, David Furlonger, and Fabio Chesini shared seven common myths about the Bitcoin blockchain. Myth 1: The blockchain is a magical database in the cloud The blockchain is not a general purpose database but rather it is conceptually a flat file a linear list of simple transaction records, the analysts said in the report. This list is append only so entries are never deleted, but instead, the file (currently about 50 gigabytes), grows indefinitely and must be replicated in every node in the peer-to-peer network (thereby introducing scalability and latency issues). Myth 2: The integrity of the ledger is defined by the majority of nodes in the peer-to-peer network The reality is that its integrity is defined by the majority of hashpower (the computational resources used in data mining) not the number of distinct nodes in the network, the analysts said. This means th Continue reading >>

Fibre Fast Internet Bitcoin Relay Engine

Fibre Fast Internet Bitcoin Relay Engine

The Fast Internet Bitcoin Relay Engine (FIBRE) is a protocol and implementation designed to relay blocks within a network of nodes with almost no delay beyond the speed of light through fiber. Its design is based on several years' experience operating and studying the Bitcoin Relay Network and functions incredibly well even when faced with suboptimal internet conditions. FIBRE is designed to be easy to operate for anyone already running a network of Bitcoin Core instances, instantly providing high-speed transfer of blocks. This way, it will significantly decentralize the availability of high-speed relay networks, making it easy for any individual or group to set one up. FIBRE improves on the design of the Bitcoin Relay Network primarily in two ways: it eliminates latency spikes by sending extra data to compensate for packet loss and is based on the compression provided by the Compact Block work in Bitcoin Core . FIBRE is easy to operate for anyone already running a network of Bitcoin Core instances, instantly providing high-speed transfer of blocks. Because TCP is designed to provide reliable transmission at reasonable bandwidth across medium-large amounts of data, it is incredibly bad at low-latency relay of small amounts of data. It is generally tuned to send packets (each just under 1500 bytes) once and to only discover that some packets were lost after getting a response from the other side. Only then will the sender retransmit the lost packets, allowing the receiver to (potentially) reconstruct the original transmission. I have seen packet loss over long-haul links on the internet average 1%, though if you purchase bandwidth directly from global carriers, you can expect < 0.1%. At 1%, the probability of transmitting a full, uncompressed, block without needing to w Continue reading >>

Why Blockchains Fork: A Tale Of Two Cryptocurrencies

Why Blockchains Fork: A Tale Of Two Cryptocurrencies

Why Blockchains Fork: A Tale of Two Cryptocurrencies Bitcoin and Ethereum have both seen high-profile forks in the past year, spawning separate coins with different rules. The splits come down to diverging ideologies and the laws of network consensus. PCMag reviews products independently , but we may earn affiliate commissions from buying links on this page. Terms of use . On August 1st, a new cryptocurrency called Bitcoin Cash appeared online. For the first time in Bitcoin's eight-year history, the original blockchain network underwent what's called a "hard fork." A small faction of Bitcoin (BTC) miners split off onto their own blockchain network, spawning Bitcoin Cash (BCH). Why the split? The technical answer lies in the long-standing Bitcoin community debate over block capacity, the nuances of which we'll get into shortly. More broadly, the Bitcoin fork speaks to a fundamental ideological rift over what's more important: preserving the decentralized nature and independent control of the Bitcoin network, or accelerating transaction speeds to make the cryptocurrency more viable for mainstream e-commerce and payments. Bitcoin's split is the second high-profile cryptocurrency fork in the past year, after a smart contract vulnerability and subsequent hack led to a split on the Ethereum blockchain in 2016. The result: Ether (ETH) and Ethereum Classic (ETC). Bitcoin and Ethereum's forks came about for entirely different reasons, yet the parallels between the splits can explain a lot about the complicated nature of reaching a consensus on major decisions within a blockchain network. When an impasse is reached, a fork may follow. Collectively, all four Bitcoin and Ethereum coins still sit near or at the top of the constantly fluctuating cryptocurrency market capitalization Continue reading >>

Bitcoin Transactions Confirmation Delays

Bitcoin Transactions Confirmation Delays

As delayed confirmations coincide with rising Bitcoin price, some say they are related. Were you one of those who experienced problems with getting confirmations on your Bitcoin transactions? Well, it was a general issue, at least recently when Blockchain had almost 50,000 unconfirmed transactions and the number is receding. The rush of complaints about transaction confirmations taking longer than usual comes at a time when the price of Bitcoin is edging closer to the $ 700 mark. As at the time of this publication, the price of the top digital currency stands at $ 687 and thats about a 5 percent increase since the beginning of the week from $ 656 on Sunday Oct. 23. When these two coincide, there are bound to be speculations that they are, in a way, related. The rising price has been described as a micro bubble caused by short supply on exchanges. There are also suggestions that the surge in price could be because of the upcoming elections in the United States. Others say it is as a result of mere FUD being spread in the market. On another note, there were those who said hodling has been profitable for them even though no one can say if the practice would pay off in the long term. These conjecture were built on earlier claims pointing at the weakening yuan, the recent disruption in the operations of PayPal due to an attack by hackers and the supposed initiation and the ongoing negotiation between Bitfinex and the hacker who stole about $ 65 mln worth of Bitcoin from its vault. Though there hasnt been any official confirmation of a direct correlation between unconfirmed transactions and the current Bitcoin traffic, there are suggestions that low transaction fees could be a key factor causing the delay. This has been compounded by the fact that more people are upping thei Continue reading >>

Pr: Whats Killing Cryptocurrency At The Point-of-sale And How Graft Can Prevent It

Pr: Whats Killing Cryptocurrency At The Point-of-sale And How Graft Can Prevent It

PR: Whats Killing Cryptocurrency at the Point-Of-Sale and How Graft Can Prevent It This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release. Credit cards have been a staple payment method for the last 20 or so years. From their humble beginning as a Diners card in the 1950s to the modern days smart-chip enabled version, they have come a long way and provide great and measurable benefits to their users. Credit cards are pocket-sized, easily portable, and have no intrinsic value in themselves. In addition, true credit cards buy you time to pay your bill, typically with a modest fee attached. With all the benefits, credit/debit cards also have significant weaknesses, like complicated and high fees for merchants and tough qualification and use requirements for consumers, not to mention all the consumer fees and sky-high rates on unpaid balances. Whats more, the issuing bank can pull the customers credit at any time, leaving the consumer financially stranded. Cryptocurrencies, on the other hand, have been gaining a lot of momentum over the past few years due to their properties of being global and not under the control of any government or institution. They introduce a real and viable alternative payment method and are likely to gain significant share in the payment methods mix in the near future. To accept cryptocurrency today, a merchant would have to do it out-of-band, taking the payment wallet-to-wallet, circumventing the POS (point of sale) systems they already have in place, paying unpredictable fees for the transactions, al Continue reading >>

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