How Is A Block Hash Created?
A Bitcoin hash is created by running the SHA-256 algorithm on six pieces of data. 3. The Merkle Root of all the transactions selected to be in that block. 1. The Bitcoin version number is simply a n umber to track software and protocol upgrades . 2. The previous block hash is the hash of the parent block in the blockchain . i.e. block 23s hash if this is block 24. 3. The Merkle Root or essentially a binary hashing of all the transactions in the block . 4. The timestamp is the time that hashing took place. 5. The difficulty target is the Bitcoin Network targeted number of zeroes. 6. The Nonce is a 32Bit number that the miners vary from 0 to try and find the hash solution. As the Bitcoin mining network has advanced from Mega hashes to Giga Hashes to Peta hashes the nonce, or the number that the miner varies can be run through in less than a second, which has 4 billion attempts has become easily exceeded resulting in miners having to use an extra nonce factor. They got around this by adding data into the coinbase transaction (generation transaction) which then means, after recalculating, the normal nonce numbers can be run through again, and if run through in a second before the timestamp changes, the Merkle root is recalculated and run through again. Continue reading >>
Hashflare - Cloud Mining
Jpmorgan: Bitcoin Miners Are In A 'hash Rate Arms Race'
A vertical stack of three evenly spaced horizontal lines. * Copyright 2018 Business Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Bitcoin mining is becoming more expensive, according to JPMorgan. That's because miners are "currently in a hash rate arms race." Bitcoin miners are in an arms race that is driving the cost of minting new bitcoin to all-time highs. That's according to a big report on cryptocurrency out Friday by the financial giant JPMorgan. Miners are the folks who unleash new bitcoin into the universe by running computationally intensive algorithms on systems called rigs. The miners pumping out the most computing power or "hash rate," referring to how many cryptographic calculations the machines can do each second have the best chance of earning a new bitcoin. As such, miners are building more and more rigs to one-up their competition. "The industry is currently in a hash rate arms race, as the current bitcoin price is incentivizing the addition of more and more mining capacity," the report said. That doesn't mean more bitcoins are being created. The cryptocurrency's network is designed to increase the difficulty of successfully mining a coin as the total hash power increases to maintain a more or less steady rate of bitcoin creation. More hash power means higher energy costs. As such, the cost to mine one bitcoin has increased dramatically. "If this growth in hash rate continues (as it likely will if margins stay positive) without an offsetting increase in energy efficiency of miners, average costs globally will continue to rise," the bank found. Already, the bank estimates the price of mining one bitcoin has jumped tenfold over the past year. The bank estimates that the price to mine a single bitcoin Continue reading >>
Bitcoin Hash Functions Explained - Coindesk
Anyone with an interest in bitcoin will have heard the phrase 'cryptographic hash function' at some time or other. But what exactly does it mean, and how is it connected to cryptocurrency? Hash functions are an essential part of, not only of the bitcoin protocol, but of information security as a whole. In the following article we'll take a look at some simple examples of how they work, with a simple demonstration, too. In the abstract, a hash function is a mathematical processthat takes input data of any size, performs an operation on it, and returns output data of a fixed size. In a more concrete example, this can be used to take a sequence of letters of any length as input what we call a string and return a sequence of letters of a fixed length. Whether the input string is a single letter, a word, a sentence, or an entire novel, the output called the digest will always be the same length. Acommon use of this kind of hash function is to store passwords. When you create a user account with any web service which requires a password, the password isrun through a hash function, and the hash digest of the message is stored. When you type in your password to log in, the same hash function is run on the word you've entered, and the server checks whether the result matches the stored digest. This means that if a hacker is able to access the database containing the stored hashes, they will not be able to immediately compromise all user accounts because there is no easy way to find the password which producedany given hash. You can experiment with hash values using Python, a programming language installed on Mac and Linux operating systems by default. (This tutorial will assume you're using some version of either OS X or Linux, as using Python on Windows is more complicated .) Continue reading >>
Vocabulary - Bitcoin
Bitcoin provides a new approach to payments and, as such, there are some new words that might become a part of your vocabulary. Don't worry, even the humble television created new words! Address Bit Bitcoin Block Block Chain BTC Confirmation Cryptography Double Spend Hash Rate Mining P2P Private Key Signature Wallet A Bitcoin address is similar to a physical address or an email. It is the only information you need to provide for someone to pay you with Bitcoin. An important difference, however, is that each address should only be used for a single transaction. Bit is a common unit used to designate a sub-unit of a bitcoin - 1,000,000 bits is equal to 1 bitcoin (BTC or B). This unit is usually more convenient for pricing tips, goods and services. Bitcoin - with capitalization, is used when describing the concept of Bitcoin, or the entire network itself. e.g. "I was learning about the Bitcoin protocol today." bitcoin - without capitalization, is used to describe bitcoins as a unit of account. e.g. "I sent ten bitcoins today."; it is also often abbreviated BTC or XBT. A block is a record in the block chain that contains and confirms many waiting transactions. Roughly every 10 minutes, on average, a new block including transactions is appended to the block chain through mining . The block chain is a public record of Bitcoin transactions in chronological order. The block chain is shared between all Bitcoin users. It is used to verify the permanence of Bitcoin transactions and to prevent double spending . BTC is a common unit used to designate one bitcoin (B). Confirmation means that a transaction has been processed by the network and is highly unlikely to be reversed. Transactions receive a confirmation when they are included in a block and for each subsequent block. Even a Continue reading >>
What Is Hashing? Under The Hood Of Blockchain
What Is Hashing? Under The Hood Of Blockchain Angel Investors, Startups & Blockchain developers... It is important to know how blockchain Hashing works. In order to do that, however, we need to first understand one of the core principles that go into blockchain creation. Blockchain technology is one of the most innovative and era-defining discoveries of the past century. Seeing the influence it has had over the last few years and the impact that it will have in the future, it surely isnt an exaggeration to say that. In order to understand how various cryptocurrencies like Ethereum and Bitcoin function. In simple terms, hashing means taking an input string of any length and giving out an output of a fixed length. In the context of cryptocurrencies like Bitcoin, the transactions are taken as an input and run through a hashing algorithm ( Bitcoin uses SHA-256 ) which gives an output of a fixed length. Lets see how the hashing process works. We are going put in certain inputs. For this exercise, we are going to use the SHA-256 (Secure Hashing Algorithm 256). As you can see, in the case of SHA-256 , no matter how big or small your input is, the output will always have a fixed 256-bits length. This becomes critical when you are dealing with a huge amount of data and transactions. So basically, instead of remembering the input data which could be huge, you can just remember the hash and keep track. Before we go any further we need to first see the various properties of hashing functions and how they get implemented in the blockchain. A cryptographic hash function is a special class of hash functions which has various properties making it ideal for cryptography. There are certain properties that a cryptographic hash function needs to have in order to be considered secure. Lets Continue reading >>
Bitcoin Hashrate: An Anomaly, Or A Permanent Drop?
Bitcoin Hashrate: An Anomaly, or a Permanent Drop? The mining of BTC is shown to have fallen by 50% all of a sudden, but is it an error? On Wednesday, Bitcoins hash rate was shown to have fallen by half its usual levels, or around 10,995,773 TH/s. Usually, BTC is mined at more than 24 million TH/s. The anomaly is not shown by all blockchain explorers, but is most prominent on the Bitinfo charts . So far, the mining of Bitcoin has grown almost exponentially, as new hardware comes on board in 2018. But since the expensive ASIC machines are centralized, the loss of such significant hashing power may speak of the withdrawal of a large mining entity. Ummmm.... Both of these stats cannot be true. pic.twitter.com/mSkK7ATak7 ryce Weiner (@BryceWeiner) 11 2018 . The Bitcoin network shows just around 600 pending transactions, a negligible backlog after months of congestion. But a recent error on CoinDance shows a mistaken block height from a couple of days ago, with no updating. The BTC market price has also been depressed, sinking toward $6,800 in the past days. If the drop in mining turns out to be permanent, and not just a technical anomaly, this may draw the interest of investors. Also, the market dominance of Bitcoin is sinking again, below 44%, as altcoin get back on their feet while the leading coin depreciates. In the past months, mining has become more centralized, due to the advent of ASIC machines. A similar fate happened to Monero , which saw its mining drop by 80%, revealing how much of the mining was done by ASIC, and not by secretly injected CoinHive miners. In recent months, the influence of Bitmain increased. The producer of the Antminer machines usually delays deliveries, and keeps many machines for its own mining operations. Thus, some Bitcoin supporters belie Continue reading >>
Bitcoin: $64m In Cryptocurrency Stolen In 'sophisticated' Hack, Exchange Says
Bitcoin: $64m in cryptocurrency stolen in 'sophisticated' hack, exchange says Mining marketplace NiceHash suspends operations while it co-operates with authorities over professional attack, urging users to change passwords NiceHash said approximately 4,700 bitcoin were stolen.Photograph: Dado Ruvic/Reuters Bitcoin: $64m in cryptocurrency stolen in 'sophisticated' hack, exchange says Mining marketplace NiceHash suspends operations while it co-operates with authorities over professional attack, urging users to change passwords Last modified on Monday 11 December 2017 05.29EST Nearly $64m in bitcoin has been stolen by hackers who broke into Slovenian-based bitcoin mining marketplace NiceHash. The marketplace suspended operations on Thursday while it investigated the breach, saying it was working with law enforcement as a matter of urgency while urging users to change their passwords. The hack was a highly professional attack with sophisticated social engineering that resulted in approximately 4,700 bitcoin being stolen, worth about $63.92m at current prices, said NiceHash head of marketing Andrej P kraba. What is bitcoin and is it a bad investment? Bitcoin is the first, and the biggest, "cryptocurrency" a decentralised tradable digital asset. Whether it's a bad investment is the big question . Bitcoin can only be used as a medium of exchange and in practice has been far more important for the dark economy than it has for most legitimate uses. The lack of any central authority makes bitcoin remarkably resilient to censorship, corruption or regulation. That means it has attracted a range of backers, from libertarian monetarists who enjoy the idea of a currency with no inflation and no central bank, to drug dealers who like the fact that it's hard (but not impossible) to tra Continue reading >>
Bitcoin Mining In 2017 Profitable Or Not?
Bitcoin Mining in 2017 Profitable or Not? Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are: It depends on how much youre willing to spend, the answer would be as simple as that. Seeing that Bitcoin Mining profitability relies on many different factors, each person asking himself this will get a slightly different answer. Mining profitability calculators were innovated so as to find out Bitcoin mining profitability for different factors. Different parameters that these calculators take into account are electricity cost, the hardware cost and other variables and it will generate an approximate of your projected profit. Lets make sure you are familiar with the different variables first, before I show you a short example of how this is calculated: Hash Rate A Hash is the mathematical problem the miners computer needs to solve. The Hash Rate is the rate at which these problems are being solved. The more miners that join the Bitcoin network, the higher the network Hash Rate is. The Hash Rate can also refer to your miners performance. Today Bitcoin miners (those super powerful computers talked about in the video) come with different Hash Rates. Miners performance is measured in MH/s (Mega hash per second), GH/s (Giga hash per second), TH/s (Terra hash per second) and even PH/s (Peta hash per second). Bitcoins per Block Each time a mathematical problem is solved, a constant amount of Bitcoins are created. The number of Bitcoins generated per block starts at 50 and is halved every 210,000 blocks (about four years). The current number of Bitcoins awarded per block is 25. However soon enough the block halving will occur and the reward will be downgraded to only 12.5 Bitcoins. Bitcoin Difficulty Since the Bitcoin network is de Continue reading >>
Target Hash Definition | Investopedia
Cryptocurrencies rely on the use of blockchains which contain the transaction histories, and are hashed or encoded into a series of numbers and letters. Hashing involves taking a string of data of any length and running it through an algorithm to produce an output with a fixed length. The output will always be the same length, regardless of how big or small the input is. The use of hashing means that anyone dealing with a blockchain has to remember the hash rather than the input itself. Each blockwill contain the hash of the previous blockheader. Decoding and encoding the blockchain is referred to as mining . Mining involves the use of computers to run hashing algorithms to process the most recent block, with the information needed in mining found in the block's header. The cryptocurrency network sets a target value for this hash the target hash - and miners try to determine what this value is by testing out all possible values. The block header contains the block version number, a timestamp, the hash used in the previous block, the hash of the Merkle Root, the nonce , and the target hash. The block is generated by taking the hash of the block contents, adding a random string of numbers (the nonce), and hashing the block again. If the hash meets the requirement of the target, then the block is added to the blockchain. Cycling through solutions in order to guess the nonce is referred to as proof of work , and the miner who is able to find the value is awarded the block and paid in cryptocurrency. The target hash for Bitcoin is a 256-bit number, and can be found in the blocks header. Mining a block requires the miner to produce a value (a nonce) that, after being hashed, is less than or equal to one used in the most recent block accepted by the Bitcoin network. This numb Continue reading >>
Definitions | Bitcoin Simplified.
Address A Bitcoin address is a unique string of 27-34 alphanumeric characters. An address can be created freely with the use of a wallet and always starts with a 1 or a 3. Alternate Currencies There are many different alternative currency that have sprung up based off of the idea and/or basic code of Bitcoin. A few of the more notable ones are litecoin, namecoin, PPCoin, and Ripple. To learn more about these, please visit our alternate currencies page. ASIC Application-specific Integrated Circuit, an ASIC is the current top of the line technology used in Bitcoin mining. It is able to generate orders of magnitude more hashes per watt of power than the next best technology. For greater detail, please see the hardware page. Block A block is a unit of the code the comprises the bockchain. It is the record of transactions that have occurred since the last block was created and a confirmation to previous transactions. Each block links to the block before it, thus creating a full chain back to the original or genesis block. Blockchain the public record of all bitcoin transactions. The blockchain may be viewed by anyone and can be used to determine how many bitcoins were attached to any one address at a given time. One place to be able to easily view this information is blockchain.info Cold Storage This is the process of moving your bitcoins to an offline wallet. The benefit of this is that no one can hack into your computer and steal your private keys if your computer is not connected to a network. Bitcoins will need to be brought back out of cold storage to be spent or transferred again. Difficulty this is the measure of how hard it is to generate a new block in the blockchain. The difficulty is designed to adjust every 2,016 blocks (roughly 2 weeks) to balance out the rate Continue reading >>
Hash - The Puzzle Of Bitcoin | Vpnmentor
In the previous post we have explained the ideas behind the Bitcoin system, however, one issue remained unexplained: What is this bloody hard puzzle that the Bitcoin miners constantly try to solve? Recall that in the Bitcoin system the miners are in constant competition: Whoever solves the puzzle first will earn the honor of adding a new block to the block-chain and make some money as well. Hence, the miners try feverishly to be the first to solve the puzzle. In the following section we are going to address the following questions: How is it integrated in the Bitcoin system? Dont be scared of the word cryptography, in our context it simply means that the hash puzzle is related to the world of cryptography, i.e. building unbreakable systems. Maybe the best real world analogy to a hash puzzle is a fingerprint. Imagine that you are given a fingerprint sample and you are asked to discover the height, weight and overall look of the person to whom this fingerprint belongs. What would you do? To make it a bit harder, assume that there is no correlation between fingerprints and other human features (like hair color) so the only way to test if this fingerprint came from your best friend is to take his fingerprint and compare it with the other one. Your best choice, then, would be taking fingerprints from every person on Earth and then comparing it to the fingerprint in question, until you find a match and stop. In case you are unlucky, the right person would be the last one that you checked, which means that youll keep looking for him for the next 13,555 years, assuming you check one person per minute (and the Earths population is about 7.125 billion people). If you are lucky, though, you are expected to look for that person for only half of that time, hooray! Bad news ah? Lets Continue reading >>
Seven Things Bitcoin Users Should Know About Hash Functions
Seven Things Bitcoin Users Should Know about Hash Functions Hash functions show up everywhere in Bitcoin. Although you can study Bitcoin without knowing much about hash functions, youll struggle at every step. This article explains the problems that hash functions solve and the most important ways in which Bitcoin uses them. No previous experience with programming or cryptography is needed. Hash functions solve the problem of uniquely and permanently naming digital documents. Why does this matter? Because the users of any distributed system can only publish, review, and compile documents given a universally-agreed system of names. Consider a distributed system like the Internet. I can use it to access any document, whether it be a cat video or the latest Wikileaks disclosure. Theres just one catch: I need to know the documents name. On the internet, names come in the form of URLs, the text that appears in your browsers address bar. The host name part of the URL (e.g., bitzuma.com) is generally administered by a centralized authority. URLs arent permanent. For example, I can change the path to any document under bitzuma.com. The first problem means that document creators depend, at least partially, on the permission of a centralized authority to generate names. The second problem means that those using a document can never be sure that its name will remain constant over time. The Bitcoin network manages two kinds of documents that require permanent, unique names issued without a centralized authority: transactions and blocks. For example, to verify a payment Ive been given, I need to know its name. To know when my payment was confirmed, I need to refer to its containing block by name. More than this, transactions and blocks also refer to each other. Consider: a transact Continue reading >>
What Does Bitcoin Hash Rate Mean? - Quora
TL;DR The hash rate measures how powerful a Bitcoin miner's machine is. Specifically, it measures the number of times a hash function can be computed per second. The miner's expected profit is directly proportional to the hash rate. First, a hash function takes an input of any given length and produces an output of a specified length. In the case of Bitcoin, the hash function SHA256 is used. Hash functions are deterministic, that is, the same input will always produce the same output. But they are designed to be unpredictable, in the sense that if you want to find an input that hashes to a specified output, the best possible way is to try many, many random inputs until one of them works. If any more efficient method is found, the hash function is considered broken, and must be replaced. To mine Bitcoins, miners must find an input that includes a list of all of the most recent transactions that need to be verified, and whose hash is smaller than some specified value. (This value is adjusted periodically to change the difficulty.) Once a miner finds such a value, he broadcasts it. The set of transactions that he included are now verified, and that set becomes the next block in the Bitcoin block chain. The miner then receives his reward for contributing his computational power to operate the Bitcoin protocol. Since the only way to find such a value and earn the reward is by brute force search, faster and faster hardware has been developed to compute the SHA256 hash function quickly. The hash rate is the number of times this function can be computed per second. Some machines can now compute trillions of these hashes every second. Continue reading >>
Which Block Has The Lowest Hash?
I don't think there is a site that will show you this information, but it is fairly trivial to find out. Here's an old Bitcointalk thread that discusses this: Here's a python script that will calculate it for you. You will need a bitcoind for it to connect to: from bitcoinrpc.authproxy import AuthServiceProxy, JSONRPCExceptionimport binasciiimport structdef uint256_to_str(u): rs = b"" for i in range(8): rs += struct.pack(">= 32 return binascii.hexlify(rs)def uint256_from_str(s): s = binascii.unhexlify(s) r = 0 t = struct.unpack("