Bitcoins First Block Was Mined 9 Years Ago Today, The Reward Was 50btc
Bitcoins first block was mined 9 years ago today, the reward was 50BTC It has been a wild run, but today marks precisely nine years since the cryptocurrency train took off: January 3, 2009 was the day when the Bitcoin blockchain network had its very first block mined the primordial block #0 . The first-ever transaction was timestamped at 6:15PM (server time) and yielded a mining reward of 50BTC, which is worth approximately $739,312 at the time of writing. It took another six days until the second block (#1) was mined on January 9, 2009. Since then, the Bitcoin blockchain has mined well over half a million blocks. At the time of writing, #502349 is the last mined block. Given how much the required electricity consumption for Bitcoin mining has jumped over the years , it is no surprise that in comparison to #0 the mining reward for a single block has dropped to 12.5BTC these days. Still, this is worth a hell of a lot more today than 50BTC were back when it all started. Back on October 31 last year, the cryptocurrency community similarly celebrated nine years since the ever-mysterious Satoshi Nakamoto released the quintessential crypto piece a conceptual paper titled Bitcoin: A Peer-to-Peer Electronic Cash System. Since the birth of Bitcoin back in 2009, the cryptocurrency market has experienced tremendous growth, boasting more than 1,000 different digital currencies and a total market cap of $695 billion. Bitcoin continues to be the leading cryptocurrency, with a staggering market share of $250 billion. Continue reading >>
What Are Bitcoin Blocks And Bitcoin Confirmations ?
What are Bitcoin Blocks and Bitcoin Confirmations ? Last updated on March 18th, 2015 at 10:43 am Lets say I send you 1 Bitcoin. After a few minutes you see that this transaction has received one confirmation. What does this actually mean? The block chain is built out of blocks. Each new block is a set of new unique Bitcoin transactions that were recently made.So when I broadcasted to the network that I want to send you 1 Bitcoin the transaction went into an unconfirmed transactions pool. Miners entered the unconfirmed transactions pool, took this transaction and others like it, verified they were valid (meaning I actually have the 1 Bitcoin to spend), and grouped them into a block.The new block is set at the top of the blockchain and is considered confirmed. Now miners can move on to build the next block on top of that one. Each time a new block is built it means that the older blocks got confirmed again (since they are checked also in the process). The more confirmations you get, the harder it will be for someone to manipulate the system and remove the block containing this transaction from the wall (or blockchain) since its buried under the other blocks that were confirmed. It is recommended to wait for at least 6 confirmations in order to be 99.9% sure that your transaction wont get canceled this takes roughly 1 hour to achieve. If youre dealing with smaller amounts of money youre probably OK with waiting for just 1 confirmation. Reversing a transaction takes planning, time and effort and a lot of computing power. Most people probably wont go through all of that trouble for a small amount of money. Continue reading >>
Blockchain: What Is In A Block?
In my previous article, I tried to described the concept of a blockchain with code. This time, I'll try to describe the structure of a single block. I will use the Bitcoin blockchain to explain blocks, but keep in mind that the concepts will remain more or less the same. It could be useful to read my last article to understand a few things first. A block is a container data structure. In the Bitcoin world, a block contains more than 500 transactions on average. The average size of a block seems to be 1MB ( source ). In Bitcoin Cash ( a hard fork from the Bitcoin blockchain ), the size of a block can go up to 8MB. This enables more transactions to be processed per second. Anyway, a block is composed of a header and a long list of transactions. Let's start with the header. The header contains metadata about a block. There are three different sets of metadata: The previous block hash. Remember that in a blockchain, every block is inherits from the previous block because we use the previous block's hash to create the new block's hash. For every block N, we feed it the hash of the block N-1. Mining competition. For a block to be part of the blockchain, it needs to be given a valid hash. This contains the timestamp, the nonce and the difficulty. Mining is another crucial part of the blockchain technology, but it is outside the scope of this article. The third part is a merkle tree root. This is a data structure to summarize the transactions in the block. And we will leave it at that for now. More on this later. To identify a block, you have a cryptographic hash, a digital signature if you will. This is created by hashing the block header twice with the SHA256 algorithm. For example, this is a block . I will refer to this block as an example for this article. The block header Continue reading >>
What Is The Block Size Limit
If you've been in crypto for a while, you've heard of the block size and the everlasting debate that surrounds it. This debate has plagued the community for years and it has pretty much torn it apart into two groups: Those in favor of a blocksize increase and those against it. But maybe you haven't been around long enough to know what the block size and the block size limit mean and why it's so heavily debated in the crypto sphere. The block size issue is much more than just a curiosity or technicality and it could indeed define the future of Bitcoin as a mainstream currency. So, what is the block size and why does it matter? Why are there groups that defend the block size limit while others push for an immediate increase? As you most likely know, Bitcoin is a blockchain-based cryptocurrency. All the transactions that take place within the network are recorded on this blockchain, a public ledger that can be seen by anyone but changed by no one. This ledger is made up of blocks that fit together cryptographically (hence the name, blockchain). When a user makes a transaction, said transaction is included in the block that is being mined at the time, and will later be confirmed by the blocks that follow it. The more blocks there are on top of your transaction, the safer it is to assume it is immutable. Transactions, at its most basic level, are made up of data which is usually composed of the information regarding the transaction itself. This data, like any other, takes up space on the block it is included. Currently, each block on the Bitcoin blockchain is able to contain 1mb of data, meaning that the block size of bitcoin is 1 megabyte. This means that there is a limit to how many transactions can fit in Bitcoin's blocks, according to the data contained in said transact Continue reading >>
Blockchain - Wikipedia
For other uses, see Block chain (disambiguation) . Blockchain formation. The main chain (black) consists of the longest series of blocks from the genesis block (green) to the current block. Orphan blocks (purple) exist outside of the main chain. A blockchain    originally block chain   is a continuously growing list of records , called blocks, which are linked and secured using cryptography .   Each block typically contains a hash pointer as a link to a previous block,  a timestamp and transaction data.  By design, blockchains are inherently resistant to modification of the data. Harvard Business Review defines it as "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way."  For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. Blockchains are secure by design and are an example of a distributed computing system with high Byzantine fault tolerance . Decentralized consensus has therefore been achieved with a blockchain.  This makes blockchains potentially suitable for the recording of events, medical records,   and other records management activities, such as identity management ,    transaction processing , documenting provenance , or food traceability .  The first blockchain was conceptualised in 2008 by an anonymous person or group known as Satoshi Nakamoto and implemented in 2009 as a core component of bitcoin where it serves as the public ledger for all transactions. Continue reading >>
What Is The Bitcoin Block Size Debate And Why Does It Matter?
What is the Bitcoin Block Size Debate and Why Does it Matter? Bitcoin is divided. Some are calling it the currencys "constitutional crisis", a debate that has split itscommunity right down the middle. The crux of the issue comes down to a single technical detail: the size of bitcoins blocks. The question of scale in bitcoin is not a new one. But as transaction volumes are expected to increase in the years ahead, questionsabout the cryptocurrencys future composition must, in the eyes of those who favor change, be answered sooner rather than later: who does it serve? How should it look? What makes it unique? As the block size debate rages on, here's a primer on its broad strokesand why it matters. Blocks arebatches of transactions which are confirmed and subsequently shared on bitcoins public ledger, the blockchain. In the early days of the currency, these blocks could carry up to 36MB of transaction data apiece.However, in 2010, this was reduced to 1MB to reduce the threat of spam and potential denial-of-service attacks on the network. This limit remainsin place today, however as transactions increase bitcoin's blocks are filling up edging further towards this 1MB line. Data released by TradeBlock in June revealed the average block size had increased from around 125KB to 425KB since 2013, while the daily volume of bitcoin transactions had increased 2.5 times. The amount of data in each block is increasing. Source: TradeBlock In turn, some blocks are already hitting this maximum. At the time of TradeBlocks research, this was happening on average more than four times a day. "Meaning at least some otherwise-acceptable transactions are seeing delayed confirmations due to capacity issues on the network 3% of the time since the beginning of the year," it said. And while the 1 Continue reading >>
Block - Bitcoin Wiki
Transaction data is permanently recorded in files called blocks. They can be thought of as the individual pages of a city recorder's recordbook (where changes to title to real estate are recorded) or a stock transaction ledger. Blocks are organized into a linear sequence over time (also known as the block chain ). New transactions are constantly being processes by miners into new blocks which are added to the end of the chain and can never be changed or removed once accepted by the network (although some software will remove orphaned blocks). number of bytes following up to end of block Each block contains, among other things, a record of some or all recent transactions , and a reference to the block that came immediately before it. It also contains an answer to a difficult-to-solve mathematical puzzle - the answer to which is unique to each block. New blocks cannot be submitted to the network without the correct answer - the process of " mining " is essentially the process of competing to be the next to find the answer that "solves" the current block. The mathematical problem in each block is extremely difficult to solve, but once a valid solution is found, it is very easy for the rest of the network to confirm that the solution is correct. There are multiple valid solutions for any given block - only one of the solutions needs to be found for the block to be solved. Because there is a reward of brand new bitcoins for solving each block, every block also contains a record of which Bitcoin addresses or scripts are entitled to receive the reward. This record is known as a generation transaction, or a coinbase transaction, and is always the first transaction appearing in every block. The number of Bitcoins generated per block starts at 50 and is halved every 210,000 bloc Continue reading >>
Satoshis Best Kept Secret: Why Is There A 1 Mb Limit To Bitcoin Block Size
Satoshis Best Kept Secret: Why is There a 1 MB Limit to Bitcoin Block Size Bitcoins scaling crisis was one of several things Satoshi and earlier Bitcoiners never anticipated. Heres how that 1 MB blocksize limit got put there. Anybody familiar with Bitcoin is aware of the vexing problem caused by the 1 MB blocksize limit and the controversy that arose over how to scale the network. Its probably worthwhile to look back on how that limit came to exist, in hopes that future crises can be averted by a solid understanding of the past . In 2010, when the blocksize limit was introduced, Bitcoin was radically different than today. Theymos, administrator of both the Bitcointalk forum and /r/bitcoin subreddit, said, among other things : "No one anticipated pool mining, so we considered all miners to be full nodes and almost all full nodes to be miners. I didn't anticipate ASICs, which cause too much mining centralization. SPV is weaker than I thought. In reality, without the vast majority of the economy running full nodes, miners have every incentive to collude to break the network's rules in their favor. The fee market doesn't actually work as I described and as Satoshi intended for economic reasons that take a few paragraphs to explain." It seems that late in 2010, Satoshi realized there had to be a maximum block size, otherwise some miners might produce bigger blocks than other miners were willing to accept, and the chain could split. Therefore, Satoshi inserted a 1 MB limit into the code. Yes, Satoshi kept this change a secret until the patch was deployed, and apparently asked those who discovered the code on their own to keep quiet . He likely kept things quiet to minimize the chances that an attacker would figure out how to use an unlimited blocksize to DOS the network. Sat Continue reading >>
The Mystery Behind Blocktime
Identity Evangelist, Author, Blogger, Developer, Blockchain Enthusiast, Senior Director of Security Architecture at WSO2, Apache WS Committer, Axis PMC Member Block time defines the time it takes to mine a block. Both in bitcoin blockchain and ethereum blockchain, there is an expected block time, and an average block time. In bitcoin, the expected block time is 10 minutes, while in ethereum it is between 10 to 19 seconds. Both bitcoin and ethereum, at the time of this writing use a proof of work based distributed consensus algorithm (ethereum is planned to move to a proof of stake based algorithm with its serenity release). The expected block time is set at a constant value to make sure, miners cannot impact the security of the network by adding more computational power. The average block time of the network is evaluated after n number of blocks, and if it is great than the expected block time, then the difficulty level of the proof of work algorithm will be reduced, and if it is less than the expected block time then the difficulty level will be increased. Thats the core design principle behind block time, but you will see as we proceed, how bitcoin and ethereum differentiate themselves from each other. The level of difficulty varies with the time, as per the following formula. It tries to evaluate the speed of the mining network and find out how much it deviates from the expected level. The expectation is to mine a block in 10 minutes. For example, if the average speed of mining the last 2016 blocks is 8 minutes then the new difficulty factor will be greater than one, so the current difficulty level will be increased. In case the average is above 10 minutes, then the factor will be less than 1 and the difficulty level will be decreased for the next 2016 blocks. The d Continue reading >>
What Is Block Size Limit With Regard To Bitcoin And Blockchain?
Block size limit refers to a simple constant - what is the max size of a block? A block is simply a container of transactions, and on average one block is generated every 10 mins, although this is a random process that can vary by quite a bit. As things currently stand, this constant is set to 1024KB (1MB), which means that any block proposed that exceeds this value should be ignored and discarded. This effectively puts a cap on the amount of transactions in each block, and thus a cap on the amount of transactions per unit of time the system can handle. Note that both the size of a transaction is not uniform (depends on its complexity), as well as the time for each block, which is only uniform on average, so one cannot exactly say how many transactions the system can handle at any given time. However, these values are stable enough to provide a rough estimation. The big problem lies with scaling the system. If Bitcoin becomes more wide-spread then we can expect more transactions. Since blocks cannot be larger than the block-size limit, it means that a queue will be created, and in the worse-case scenario this queue will forever increase. As this is unacceptable, different solutions are being offered and implemented. The direct approach of changing the limit in code has been all but neglected at this point for various of reasons. Other in-direct solutions include segregated witness, which has made a significant step forward just recently , or off-chain solutions that will provide a faster layer for most transactions, only requiring the use of the blockchain for settlement. There are pros and cons for each approach and proposal, but the entire debate has become a symbol (or scapegoat?) for the debate around how Bitcoin (and other decentralized technologies) should be gov Continue reading >>
What Is A Block/blockchain Explorer?
By: Sudhir Khatwani In: Cryptocurrency Last Updated: A blockchain explorer is a browser for the blockchain, similar to how we have browsers like Mozilla or Google Chrome for internet web pages. All Bitcoin and altcoin users rely heavily on blockchain explorers to track their transactions. But very few users really appreciate the full potential of these explorers. These browsers provide much more valuable information than just tracking of transactions. Note: I will be using the terms blockchain explorer and block explorer interchangeably. They mean the same thing. A block explorer allows you to explore the whole entire blockchain of the platform you are using. But it needs to be noted that you cant use a block explorer for a blockchain it wasnt meant for. For example, you cant track Litecoin transactions with a Bitcoin block explorer. Youll need a Litecoin block explorer for that (like this one . For the sake of explaining things, I will be talking about Bitcoin block explorers, but each blockchain interfaces and functions in the same way with its respective explorer. 1. Blocks Feed Block explorers allow you to explore recently mined blocks on the Bitcoin blockchain. Typically all Bitcoin block explorers provide a live feed of all the blocks that are being added to the blockchain in real time. 2. Transaction Feed Block explorers allow you to explore any transaction in any block that has already been mined and is currently attached to the Bitcoin blockchain. 3. Transaction History Of A Given Address Using a Bitcoin block explorer, you can check the history of any public Bitcoin address and audit how many transactions it has received, its balance, etc. 4. Receiving Address & Change Address Using a Bitcoin block explorer, you can see the Bitcoin receiving address and the B Continue reading >>
The Reason Why Bitcoin Miners Dedicate Time To Mining Empty Blocks
The Reason Why Bitcoin Miners Dedicate Time to Mining Empty Blocks Bitcoin mining is an intriguing subject that can sometimes be overwhelming to understand at first without some research. One particular subject concerning the topic of mining is empty blocks, and people often wonder why mining pools mine them. Also read: Class Action Lawsuit Filed Against Cryptocurrency Exchange Kraken Mining pools are groups of bitcoin miners that work together to find and verify blocks roughly every ten minutes. Most of the time blocks are filled with transactions that are waiting to be confirmed as soon as the miner finds a specific block. Miners are rewarded 12.5 BTC and all the fees associated with the particular block they find. In the early days, blocks were not that full because bitcoin wasnt as popular as it is today. Latelyblocks have been full, often to the maximum size of 1 MB. Blocks filled with transactions are not the only blocks mined on the network as empty blocks are mined as well. Empty blocks actually do have a transaction in them called the coinbase which is included first in every block. The main reason why pools mine empty blocks is because they are performing operations non-stop. Now the biggest qualm people have with miners who dedicate energy to mining an empty block is due to the recent throughput congestion these days. Bitcoin mining is a non-stop race to find blocks. When miners win a race by finding a block they have also prepped up for the next race and begin competing almost instantly again. However, when a pool solves a block, it has to download it and perform a few functions in order for it to verify the contained transactions. At the same time, the pool is also receiving the next broadcasted header (80 bytes of data tethered to a block), and the pool b Continue reading >>
What Is Blockchain? Here's Everything You Need To Know | Digital Trends
What is a blockchain? Heres everything you need to know Without blockchain, bitcoin couldn't exist. Here's how it works Posted on April 16, 2018 - 3:00AM 4.16.18 - 3:00AM Blockchain technology is commonly associated with Bitcoin and other cryptocurrencies, but thats only the tip of the iceberg. Some people think blockchain could end up transforming a number of important industries, from health care to politics. This article is part of our series Blockchain beyond Bitcoin . Bitcoin is the beginning, but its far from the end. To help you wrap your head around why, were taking a deep dive into the world of blockchain. In this series, well go beyond cryptocurrency and hone in on blockchain applications that could reshape medical records, voting machines, video games, and more. Whether youre simply looking to invest in Bitcoin , trade some Ethereum , or are just intrigued about what the heck blockchain actually is, youve come to the right place. While blockchain technology isnt simple when you dig into the nitty-gritty, the basic idea isnt too hard to follow. Its effectively a database thats validated by a wider community, rather than a central authority. Its a collection of records that a crowd oversees and maintains, rather than relying on a single entity, like a bank or government, which most likely hosts data on a particular server.Of course, a physical database kept on paper could never be managed by tens of thousands of peers. Thats where computers, and the internet, come in. Each block represents a number of transactional records, and the chain componentlinks them all together with a hash function . As records are created, they are confirmed by a distributed network of computers and paired up with the previous entry in the chain, thereby creating a chain of blocks, o Continue reading >>
Bitcoin's First Block Was Mined 9 Years Ago Today, The Reward Was 50btc
It has been a wild run, but today marks precisely nine years since the cryptocurrency train took off: January 3, 2009 was the day when the Bitcoin blockchain network had its very first block mined the primordial block #0 . The first-ever transaction was timestamped at 6:15PM (server time) and yielded a mining reward of 50BTC, which is worth approximately $739,312 at the time of writing. It took another six days until the second block (#1) was mined on January 9, 2009. Since then, the Bitcoin blockchain has mined well over half a million blocks. At the time of writing, #502349 is the last mined block. Given how much the required electricity consumption for Bitcoin mining has jumped over the years , it is no surprise that in comparison to #0 the mining reward for a single block has dropped to 12.5BTC these days. Still, this is worth a hell of a lot more today than 50BTC were back when it all started. Back on October 31 last year, the cryptocurrency community similarly celebrated nine years since the ever-mysterious Satoshi Nakamoto released the quintessential crypto piece a conceptual paper titled Bitcoin: A Peer-to-Peer Electronic Cash System. Since the birth of Bitcoin back in 2009, the cryptocurrency market has experienced tremendous growth, boasting more than 1,000 different digital currencies and a total market cap of $695 billion. Bitcoin continues to be the leading cryptocurrency, with a staggering market share of $250 billion. Continue reading >>
Whats The Process Of Creating A Block On The Blockchain
Whats the process of Creating a Block on the BlockChain have been mining on pools and blindly going a long for the ride of Can somebody walk through the process in simple terms of the steps involved in creating a block on the blockchain ? What determines what transactions get included on the block we are mining ? When miners try to compute a block, they pick all transactions that they want to be added in the block, plus one coinbase (generation) transaction to their address. They may include any transaction they want to form a tree of transactions later hashed into the merkle root and referenced into the block's header. It is to note that for a block to be accepted by the network it needs to contain only valid transactions: inputs that are not yet spent, inputs that have the valid ammount, signature that verifies ok and etc... After having a valid merkle root they build the block's header: Hash of the previous block, thus making a chain of block (32 bytes) Merkle root, the tree of transactions' reference (32 bytes) Timestamp, number of seconds since 1970-01-01 00:00 (4 bytes) Bits, a representation of the networks current difficulty (4 bytes) See more here to learn more on how to build the header. Then this where your miner enters the game. It starts with the nonce at 0, hash (sha-256 2x) the block's header and then check if the hash in under the current target (if you are on a pool the share target). If not it increments the nonce and hash again. If the hash is under the current target YOU FOUND A BLOCK, you then transfer your block's header and the associated transactions' tree and the network accepts it. Because you had a coinbase transaction in your block paying to your bitcoin address those bitcoin then becomes yours. It is to says that finding a block is rare so Continue reading >>