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Letter to BBC about energy consumption in BITCOIN vs BURSTCOIN
Dear amazing journalists and people working at BBC, I've just stumbled across your article about Iran seizing bitcoin mining farms due to massive spikes in energy consumption (https://www.bbc.com/news/technology-48799155) and I couldn't help but write this e-mail to draw your attention to a revolutionary crypto currency called BURSTCOIN (www.burst-coin.org) - the only green currency out there. Blockchain technology and various crypto currencies - the main one being bitcoin at the moment - are all over the news and one cannot argue that these digital assets contain huge potential in the near term future. With Bitcoin being the most famous and surging numbers of new investors, it is worth it to look at the amount of energy necessary to maintain the network and mine new coins (https://www.economist.com/the-economist-explains/2018/07/09/why-bitcoin-uses-so-much-energy). It is truly a growing global problem and will become worse each year due to the nature of the algorithm that's running bitcoin. Here's where BURSTCOIN becomes important: While one BITCOIN transaction consumes 1000kW/h, BURSTCOIN only uses0.0024kW/hper transaction - an obviously tremendous difference, that being just one of them. As a regular viewereader of BBC News I would love to see an article talking about the energy consumption of cryptocurrencies such as bitcoin and providing your viewers and readers with a green alternative such as BURSTCOIN - especially in times where the effects of climate change can be felt all over the globe. If you got interested in learning more about BURST and publishing an article about the above mentioned topic, please visit www.burst-coin.org for further details on the technology or contact_______________________ to find out more. Thank you and keep up the great work, it's needed more than ever! Kind Regards from Austria, -A citizen who is enthusiastic about the future and a true believer that good things happen-
QuarkChain Testnet 1.0 was built based on standardized blockchain system requirements, which included network, wallet, browser, and virtual machine functionalities. Other than the fact that the token was a test currency, the environment was completely compatible with the main network. By enhancing the communication efficiency and security of the network, Testnet 2.0 further improves the openness of the network. In addition, Testnet 2.0 will allow community members (other than citizens or residents of the United States) to contribute directly to the network, i.e. running a full node and mining, and receive testnet tokens as rewards. QuarkChain Testnet 2.0 will support multiple mining algorithms, including two typical algorithms: Ethash and Double SHA256, as well as QuarkChain’s unique algorithm called Qkchash – a customized ASIC-resistant, CPU mining algorithm, exclusively developed by QuarkChain. Mining is available both on the root chain and on shards due to QuarkChain’s two-layered blockchain structure. Miners can flexibly choose to mine on the root chain with higher computing power requirements or on shards based on their own computing power levels. Our Goal By allowing community members to participate in mining on Testnet 2.0, our goal is to enhance QuarkChain’s community consensus, encourage community members to participate in testing and building the QuarkChain network, and gain first-hand experience of QuarkChain’s high flexibility and usability. During this time, we hope that the community can develop a better understanding about our mining algorithms, sharding technologies, and governance structures, etc. Furthermore, this will be a more thorough challenge to QuarkChain’s design before the launch of mainnet! Thus, we sincerely invite you to join the Testnet 2.0 mining event and build QuarkChain’s infrastructure together! Today, we’re pleased to announce that we are officially providing the CPU mining demo to the public (other than citizens and residents of the United States)! Everyone can participate in our mining event, and earn tQKC, which can be exchanged to real rewards by non-U.S. persons after the launch of our mainnet. Also, we expect to upgrade our testnet over time, and expect to allow GPU mining for Ethash, and ASIC mining for Double SHA256 in the future. In addition, in the near future, a mining pool that is compatible with all mining algorithms of QuarkChain is also expected to be supported. We hope all the community members can join in with us, and work together to complete this milestone! 2 Introduction to Mining Algorithms 2.1 What is mining？ Mining is the process of generating the new blocks, in which the records of current transactions are added to the record of past transactions. Miners use software that contribute their mining power to participate in the maintenance of a blockchain. In return, they obtain a certain amount of QKC per block, which is called coinbase reward. Like many other blockchain technologies, QuarkChain adopts the most widely used Proof of Work (PoW) consensus algorithm to secure the network. A cryptographically-secure PoW is a costly and time-consuming process which is difficult to solve due to computation-intensity or memory intensity but easy for others to verify. For a block to be valid it must satisfy certain requirements and hash to a value less than the current target threshold. Reverting a block requires recreating all successor blocks and redoing the work they contain, which is costly. By running a cluster, everyone can become a miner and participate in the mining process. The mining rewards are proportional to the number of blocks mined by each individual. 2.2 Introduction to QuarkChain Algorithms and Mining setup According to QuarkChain’s two-layered blockchain structure and Boson consensus, different shards can apply different consensus and mining algorithms. As part of the Boson consensus, each shard can adjust the difficulty dynamically to increase or decrease the hash power of each shard chain. In order to fully test QuarkChain testnet 2.0, we adopt three different types of mining algorithms” Ethash, Double SHA256, and Qkchash, which is ASIC resistant and exclusively developed by QuarkChain founder Qi Zhou. These first two hash algorithms correspond to the mining algorithms dominantly conducted on the graphics processing unit (GPU) and application-specific integrated circuits (ASIC), respectively. I. Ethash Ethash is the PoW mining algorithm for Ethereum. It is the latest version of earlier Dagger-Hashimoto. Ethash is memory intensive, which makes it require large amounts of memory space in the process of mining. The efficiency of mining is basically independent of the CPU, but directly related to memory size and bandwidth. Therefore, by design, building Ethash ASIC is relatively difficult. Currently, the Ethash mining is dominantly conducted on the GPU machines. Read more about Ethash: https://github.com/ethereum/wiki/wiki/Ethash II. Double SHA256 Double SHA256 is the PoW mining algorithms for Bitcoin. It is computational intensive hash algorithm, which uses two SHA256 iterations for the block header. If the hash result is less than the specific target, the mining is successful. ASIC machine has been developed by Bitmain to find more hashes with less electrical power usage. Read more about Double SHA256: https://en.bitcoin.it/wiki/Block_hashing_algorithm III. Qkchash Originally, Bitcoin mining was conducted on the CPU of individual computers, with more cores and greater speed resulting in more profitability. After that, the mining process became dominated by GPU machines, then field-programmable gate arrays (FPGA) and finally ASIC, in a race to achieve more hash rates with less electrical power usage. Due to this arms race, it has become increasingly harder for prospective new miners to join. This raises centralization concerns because the manufacturers of the high-performance ASIC are concentrated in a small few. To solve this, after extensive research and development, QuarkChain founder Dr. Qi Zhou has developed mining algorithm — Qkchash, that is expected to be ASIC-resistant. The idea is motivated by the famous date structure orders-statistic tree. Based on this data structure, Qkchash requires to perform multiple search, insert, and delete operations in the tree, which tries to break the ASIC pipeline and makes the code execution path to be data-dependent and unpredictable besides random memory-access patterns. Thus, the mining efficiency is closely related to the CPU, which ensures the security of Boston consensus and encourges the mining decentralization. Please refer to Dr. Qi’s paper for more details: https://medium.com/quarkchain-official/order-statistics-based-hash-algorithm-e40f108563c4 2.3 Testnet 2.0 mining configuration Numbers of Shards: 8 Cluster: According to the real-time online mining node The corresponding mining algorithm is Read more about Ethash with Guardian: https://github.com/QuarkChain/pyquarkchain/wiki/Ethash-with-Guardian) We will provide cluster software and the demo implementation of CPU mining to the public. Miners are able to arbitrarily select one shard or multiple shards to mine according to the mining difficulty and rewards of different shards. GPU / ASIC mining is allowed if the public manages to get it working with the current testnet. With the upgrade of our testnet, we will further provide the corresponding GPU / ASIC software. QuarkChain’s two-layered blockchain structure, new P2P mode, and Boson consensus algorithm are expected tobe fully tested and verified in the QuarkChain testnet 2.0. 3 Mining Guidance In order to encourage all community members to participate in QuarkChain Testnet 2.0 mining event, we have prepared three mining guidances for community members of different backgrounds. Today we are releasing the Docker Mining Tutorial first. This tutorial provides a command line configuration guide for developers and a docker image for multiple platforms, including a concise introduction of nodes and mining settings. Follow the instructions here: Quick Start with QuarkChain Mining. Next we will continue to release: A tutorial for community members who don’t have programming background. In this tutorial, we will teach how to create private QuarkChain nodes using AWS, and how to mine QKC step by step. This tutorial is expected to be released in the next few days. Programs and APIs integrated with GPU / ASIC mining. This is expected to allow existing miners to switch to QKC mining more seamlessly. Frequently Asked Questions: 1. Can I use my laptop or personal computer to mine? Yes, we will provide cluster software and the demo implementation of CPU mining to the public. Miners will be able to arbitrarily select one shard or multiple shards to mine according to the work difficulty and rewards of different shards. 2. What is the minimum requirements for my laptop or personal computer to mine? Please prepare a Linux or MacOs machine with public IP address or port forwarding set up. 3. Can I mine with my GPU or an ASIC machine? For now, we will only be providing the demo implementation of CPU mining as our first step. Interested miners/developers can rewrite the corresponding GPU / ASIC mining program, according to the JSON RPC API we provided. With the upgrade of our testnet, we expect to provide the corresponding GPU / ASIC interface at a later date. 4. What is the difference among the different mining algorithms? Which one should I choose? Double SHA256 is a computational intensive algorithm, but Ethash and Qkchash are memory intensive algorithms, which have certain requirements on the computer’s memory. Since currently we only support CPU mining, the mining efficiency entirely depends on the cores and speed of CPU. 5. For testnet mining, what else should I know? First, the mining process will occupy a computer’s memory. Thus, it is recommended to use an idle computer for mining. In Testnet 2.0 settings, the target block time of root chain is 60 seconds, and the target block time of shard chain is 10 seconds. The mining is a completely random process, which will take some time and consume a certain amount of electricity. 6. What are the risks of testnet mining? Currently our testnet is still under the development stage and may not be 100% stable. Thus, there would be some risks for QuarkChain main chain forks in testnet, software upgrades and system reboots. These may cause your tQKC or block record to be lost despite our best efforts to ensure the stability and security of the testnet. For more technical questions, welcome to join our developer community on Discard: https://discord.me/quarkchain. 4 Reward Mechanism Testnet 2.0 and all rewards described herein, including mining, are not being offered and will not be available to any citizens or residents of the United States and certain other jurisdictions. All rewards will only be payable following the mainnet launch of QuarkChain. In order to claim or receive any of the following rewards after mainnet launch, you will be required to provide certain identifying documentation and information about yourself. Failure to provide such information or demonstrate compliance with the restrictions herein may result in forfeiture of all rewards, prohibition from participating in future QuarkChain programs, and other sanctions. NO U.S. PERSONS MAY PARTICIPATE IN TESTNET 2.0 AND QUARKCHAIN WILL STRICTLY ENFORCE THIS VIA OUR KYC PROCEDURES. IF YOU ARE A CITIZEN OR RESIDENT OF THE UNITED STATES, DO NOT PARTICIPATE IN TESTNET 2.0. YOU WILL NOT RECEIVE ANY REWARDS FOR YOUR PARTICIPATION. 4.1 Mining Rewards
Prize Pool A total of 5 million QKC prize pool have been reserved to motivate all miners to participate in the testnet 2.0 mining event. According to the different mining algorithms, the prize pool is allocated as follows:
Total Prize Pool: 5,000,000 QKC Prize Pool for Ethash Algorithm: 2,000,000 QKC Prize Pool for Double SHA256 Algorithm: 1,000,000 QKC Prize Pool for Qkchash Algorithm: 2,000,000 QKC The number of QKC each miner is eligible to receive upon mainnet launch will be calculated on a pro rata basis for each mining algorithm set forth above, based on the ratio of sharded block mined by each miner to the total number of sharded block mined by all miners employing such mining algorithm in Testnet 2.0.
Early-bird Rewards To encourage more people to participate early, we will provide early bird rewards. Miners who participate in the first month (December 2018, PST) will enjoy double points. This additional point reward will be ended on December 31, 2018, 11:59pm (PST).
4.2 Bonus for Bug Submission: If you find any bugs for QuarkChain testnet, please feel free to create an issue on our Github page: https://github.com/QuarkChain/pyquarkchain/issues, or send us an email to [email protected]. We may provide related rewards based on the importance and difficulty of the bugs. 4.3 Reward Rules: QuarkChain reserves the right to review the qualifications of the participants in this event. If any cheating behaviors were to be found, the participant will be immediately disqualified from any rewards. QuarkChain further reserves the right to update the rules of the event, to stop the event/network, or to restart the event/network in its sole discretion, including the right to interpret any rules, terms or conditions. For the latest information, please visit our official website or follow us on Telegram/Twitter. About QuarkChain QuarkChain is a flexible, scalable, and user-oriented blockchain infrastructure by applying blockchain sharding technology. It is one of the first public chains that successfully implemented state sharding technology for blockchain in the world. QuarkChain aims to deliver 100,000+ on-chain TPS. Currently, 14,000+ peak TPS has already been achieved by an early stage testnet. QuarkChain already has over 50 partners in its ecosystem. With flexibility, scalability, and usability, QuarkChain is enabling EVERYONE to enjoy blockchain technology at ANYTIME and ANYWHERE. Testnet 2.0 and all rewards described herein are not being and will not be offered in the United States or to any U.S. persons (as defined in Regulation S promulgated under the U.S. Securities Act of 1933, as amended) or any citizens or residents of countries subject to sanctions including the Balkans, Belarus, Burma, Cote D’Ivoire, Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, Zimbabwe, Central African Republic, Crimea, Lebanon, Libya, Somalia, South Suda, Venezuela and Yemen. QuarkChain reserves the right to terminate, suspend or prohibit participation of any user in Testnet 2.0 at any time. In order to claim or receive any rewards, including mining rewards, you will be required to provide certain identifying documentation and information. Failure to provide such information or demonstrate compliance with the restrictions herein may result in termination of your participation, forfeiture of all rewards, prohibition from participating in future QuarkChain programs, and other actions. This announcement is provided for informational purposes only and does not guarantee anyone a right to participate in or receive any rewards in connection with Testnet 2.0. Note: The use of Testnet 2.0 is subject to our terms and conditions available at: https://quarkchain.io/testnet-2-0-terms-and-conditions/ more about qurakchain: Website: https://quarkchain.io/cn/ Facebook: https://www.facebook.com/quarkchainofficial/ Twitter: https://twitter.com/Quark_Chain Telegram: https://t.me/quarkchainio
How Privacy Coins Work Bitcoin transactions are semi-anonymous: every transaction on the blockchain is broadcast publicly and visible for all eternity, but the owner of each wallet is unknown. Tying addresses to real-world identities is now relatively easy for the powers-that-be, because everyone has to cash out somewhere, and that usually involves linking bitcoin addresses to bank accounts. Privacy Tech Algorithms The three most common privacy algorithms are zk-Snarks, Coinjoin, and RingCT. The latter method is used in monero; Coinjoin features in dash and is also being trialed with bitcoin; and zk-Snarks are used by most of the Z coins including Zcash. Here’s how they work: RingCT: Monero’s ring signatures allow the sender to hide their transaction among other outputs. In addition, RingCT makes it possible to hide the amount being sent. Coupled with a stealth receiving address, this makes for an extremely discreet way of sending funds. Transparency is optional with monero, which uses an “opaque” blockchain. Coinjoin: Developed by Gregory Maxwell, Coinjoin deploys a ‘safety in numbers’ approach. When two senders despatch a transaction of an identical amount, this is converted into a joint payment. When this occurs, correlating the transaction inputs and outputs is virtually impossible. There are many variants of Coinjoin including Private Send, which is used by dash, and Coin Shuffle; Cash Shuffle is the version currently being tested with bitcoin cash. zk-Snarks: Zero-Knowledge Succinct Non-Interactive Argument of Knowledge is a technology that allows miners to verify transactions without knowing who sent or received the coins. Using a cryptographic hash, each party can prove that a certain statement is true without revealing the precise details of who sent what and where. Although most commonly associated with the Zerocoin family, zk-Snarks are also being tested with ethereum. The Main Privacy Players Zcash: Born out of the Zerocoin protocol, Zcash is basically bitcoin with the option of privacy. There’s a fixed supply of 21 million coins and despite using a public blockchain, Zcash allows for the sender, recipient, and amount being sent all to be concealed. Researchers have published evidence that suggests some Zcash transactions can be de-anonymized, though for everyday usage, Zcash should still provide enough privacy for most people. Monero: Like Zcash, monero has emerged as a viable cryptocurrency in its own right, even for individuals who aren’t interested in privacy. Its privacy tech is highly regarded and numerous deep web marketplaces accept monero. Monero usage surged in the wake of the Alphabay shutdown, after it emerged that feds were unable to determine how much XMR the site’s alleged kingpin, Alexandre Cazes, held. Dash: By market cap, dash is the biggest coin on this list. It’s not an outright privacy coin however, but does have Private Send for users who’d prefer to keep their business to themselves. Transactions are confirmed by 200 TerraHash of X11 ASIC computing power and over 4,500 servers hosted around the world. Zcoin: The other Z worth mentioning, Zcoin enables users to “mint” a coin on a public ledger so as to transform it into a private coin. This process can be repeated multiple times, allowing a coin to be sent publicly or privately as desired. Pivx: An open source project, Pivx is another community-oriented privacy coin. It uses a mixing mechanism that’s based on Coinjoin, but which operates in a decentralized manner, aided by a network of masternodes. PIVX is the first proof of stake cryptocurrency to be based on the version 0.10 or higher Bitcoin codebase, and the PoS structure utilised does away with coin age, meaning in order to get the most out of your staking you must keep your wallet open at all times, resulting in more constantly available nodes, strengthening the network. Verge: XVG is another anonymous cryptocurrency that was designed for privacy-friendly networks such as Tor and I2P. The general consensus is that verge isn’t as private as some of its competitors, so don’t trust it with your life. On the plus side, it boasts fast and low-cost transactions. Spectrecoin Native Tor Integration preserves network privacy and protects users against surveillance, by keeping traffic within the Tor network at all times. OBFS4 Bridge Support facilitates undetected use in countries that block Tor, such as China & Iran. Spectrecoin is the only privacy coin to offer this feature Deep Onion Deep Onion is a hybrid cryptocurrency that uses proof of stake (PoS) and the X13 proof of work (PoW) algorithm. It is natively integrated with the TOR network and ALL connections are made over the TOR network. Deep Onion is 90% premined, but 70% will be air-dropped to community, 20% will be used for bounties, rewards and other promotions, and about 10% will be reserved for the development team. The development team from Deep Onion focuses on creating a secure and anonymous transaction network as much possible. To achieve that they are utilizing the Tor network to connect up to. As a result your IP address is not registered anywhere when using Deep Onion. Instead of this an anonymous Tor network ID is created for you. What sets DeepOnion apart from other privacy Cryptos are its ability to adapt to market changes and constantly updating the platform. In this regard we have new features that will be realised soon in the form of DeepSend, these features will offer more anonymity and privacy operation over the TOR network which will make DeepOnion one of the most secure Private Crypto currencies in this age. However, a particular Crypto currency provides an answer to the subject of Safety and Privacy. DeepOnion is an anonymous cryptocurrency which focuses on the privacy of its users. The DeepOnion developers utilize the Tor network to enable them to meet their key objective which is security. One of the qualities of this coin that makes it attractive to users is the fact that while using it, the user’s IP address is not registered on any platform. Instead of having your IP address registered, one gets an anonymous ID created for them in the Tor network. The Tor network offers multiple levels of privacy to ensure that your location, online activities, and identity are kept entirely confidential. Tor is tightly integrated into the DeepOnion wallet, and it conceals a users identity and their online activity from any third parties by separating your identification and routing online traffic by the implementation of onion routing, which encrypts and then randomly bounces communications through a network of relays around the world. Concealing your IP address is beneficial in that you can make transactions anonymously and no transaction can be traced back to you. Well, while some may fear that this is a loophole allowing for illegal transactions, it provides security for individuals making large transfers. Additionally, the coin boasts prompt transactions, with a faster speed than Bitcoin. The DeepOnion coin is still relatively young, yet it has managed to establish a very supportive community. Like bitcoin, DeepOnion runs on a peer-to-peer network, but its use of Tor network comes in as an added advantage. When using DeepOnion, one can be sure that their internet service provider or even the government is not monitoring them. It is freedom and privacy all in one package.
In the recent Bytom Global Dev Competition, some stablecoin projects have been seen. It is no surprise as stablecoin has been really a buzzword in the recent crypto market, and these projects are mulling over stablecoins based on Bytom Blockchain. Stablecoins have been embroiled in controversies and they have been dissected and studied by some of the smartest minds in the cryptospace. This article is going to do a deep dive on the buzzword stablecoin and visons about its design on Bytom. What is Stablecoin? The creation and development of stablecoins have a complicated history. We think it’s not necessary to present all of them, but it will be more interesting to introduce the concept with a short story.
A primary school student named Leek would get some pocket money from his dad every day, while his dad did not allow him to use the money to play online games in internet cafés. Leek then came up with the idea that to use cigarettes as payment for internet access fees since the internet café owner likes smoking, and the owner agreed.The owner of the internet café later opened a cigarette store after realizing that lots of pupils used cigarette as their internet access fees, and announced only cigarettes bought from this store were accepted by his internet café.The business went quite well and seeing this, many cigarette shops were opened to sell cigarette to pupils. Though they tried hard to tout their products, they were not welcomed as they were not accepted by the internet café.Things began to change when Leek’s father found out all this. He reported the shop and asked local authority to strengthen regulations on it. To respond to that, the cigarette shop owner tried his best to win regulatory support and figured out an “acceptance dealer system” which allowed a few pupils to buy cigarettes in bulk and resell it to others. The internet café also opened a special transaction counter for the convenience of selling and buying among those pupils and charged some commission fee for it.
The story stops here and let’s change the roles in it. In the cryptospace, Leek is those crypto investors, Leek’s father is the government, the internet café is those crypto exchanges like BitFinex and Gateio, the cigarette store is the issuer of stablecoin like Tether, and then cigarette is the stablecoin such as USDT or GUSD. Now we may have a basic understanding about the necessity and importance of stablecoins. The value of the stablecoin at the current stage is mainly to act as a means of payment other than legal tender, to enable the transaction of cryptocurrency in situations where fiat money is not allowed. Created out of the market demand and regulations, stablecoins in itself can become a tool to accumulate wealth, and their issuers and crypto exchanges are going to benefit the most. In this aspect, government shall regulate the crypto market starting from the regulation on stablecoins. Some expressed their concerns that dollar-backed stablecoins may have great impact on the international monetary and financial system; while in my view it is a gross exaggeration. Data shows that, USDT, which accounts for 87.33 percent of the stablecoin market share, currently has a market value of only $2.8 billion, with 24-hour trading volume at $3.3 billion (according to data collected from CoinMarketCap.com on Sep.26, 2018). For another, the international monetary and financial system is quite huge, compared to the $83.6 trillion in national money supply (according to HowMuch.net), the impact of the USDT on the monetary system is almost negligible. So at present, the impact of stablecoins is mainly confined to the cryptocurrency market. Visions about Stablecoin Following are some thoughts about stablecoin. First, a country can issue a stablecoin as a regulatory tool and see it as an exploration of digital currency; or explore the possibility of crypto-collateralized stablecoins.
A majority of the current stablecoins were issued by private individuals, but it is not ruled out that there will be stablecoins issued by a state in the future. If a stablecoin pegged to a certain legal tender (such as U.S. dollar and Chinese Yuan) is issued directly by a state, it would be truly stable. This kind of stablecoin is born with natural stability and the main concern about it is whether it will be accepted and massively adopted from the commercial aspect. Imagine if a country uses a stablecoin as a regulatory means with KYC (Know Your Customer) and AML (Anti-Money Laundering) regimes, it will be a gateway for the entire crypto market and the crypto market will be more controllable. The country will be able to know how new money flows into the crypto market. At the same time, the relationship between stablecoins and the existing fiat money can be eased. In this context, if a state-issued stablecoin is only to meet the demand of the crypto market, it will have no conflict with the existing monetary system. 2.BTC-collateralized stablecoin Most current stablecoins are pegged to physical assets such as U.S. dollar. In the future, there may be currencies anchoring cryptos or tokens like bitcoin – some countries may issue fiat money backed by bitcoin. It’s a counterintuitive prediction because intuition tells us that bitcoin is a volatile asset. But I think it is exactly a trend in the future, a significant step for the crypto world to influence the atomic world. Actually it’s not absolutely impossible. For one reason, more and more people want to fight against inflation via cryptocurrencies, especially those in Iran, Turkey, Venezuela, Argentina and Zimbabwe, suffering from economic and currency crises; for another, the fluctuation of bitcoin price has been seen the decrease at an annual rate of 25% since 2010. Bitcoin price volatility has been decreasing year by year (according to highchars.com) It is expectable that bitcoin would be a stable cryptocurrency in the far future. But why not directly use bitcoin as a payment means? As some users may still tend to use their own fiat money, and problems like congestion may emerge large on the bitcoin network along with the large volume transactions in the future. While the maturity of sidechain technologies could make stablecoin more advantageous. Therefore, there may come up a BTC-backed stablecoin. How to Create a Good Stablecoin? First of all, we need to get straight the function of a stablecoin. At present, stablecoins are a patch affiliated to traditional currencies to address specific problems in a certain sector. Precisely we should call stablecoin “pegged coin”, as the value of astablecoin is not that stable but fluctuates with the price of the peg. Stablecoin have to accomplish two “leaps” to achieve the practical goal as a popular stablecoin. The first leap is to technically achieve anchoring to real-world assets, by building reserve mechanism, algorithm regulation and interest rate adjustment. There have been many articles about the stablecoin mechanism. I will not go into details here, but recommend A History of Stablecoins to you. In summary, it mainly focuses on “decentralization”, “usability”, “stability”. Centralized stablecoins like USDT are easy to use and stable, but lack in decentralization. Decentralized stablecoins, such as BitUSD (a crypto-collateralized stablecoin), are featured by a high degree of decentralization, but its stability is greatly affected by fluctuations of the collateral. The second leap is to commercially achieve mass adoption. Only when a stablecoin is widely adopted, could it have values. Currently stablecoins faces the influence from government policies, acceptance of exchanges, the prosperity of C2C (customer-to-customer transaction) market and other commercial factors. Stablecoins Based on Bytom Bytom is a public blockchain dedicated to asset blockchainization, and stablecoins are in fact a part of the blockchainization of “currency” asset. Stablecoins based on Bytom will have three advantages:
Based on the BUTXO model (Bytom Unspent Transaction Output) and sidechain
Based on the system of asset blockchainization
Based on the national cryptographic standards
Based on the BUTXO model (Bytom Unspent Transaction Output) and sidechain. The UTXO (Unspent Transaction Output) model is the underlying data structure of bitcoin blockchain, featured by safety, stability and extensibility. However, the current stablecoins market is overwhelmed with tokens based on the account model of Ethereum, lacking stablecoins based on UTXO architecture. In my view, the model architecture based on UTXO is the future trend, because the tokens with asset attributes, especially stablecoins, require the most secure data storage structure. The decade bitcoin being around is a decade of tremendous stability and security, and a stablecoin based on the UTXO model will also have this trait. Bytom’s extended UTXO architecture can unify all kinds of stablecoins into a blockchain. As you can imagine, stablecoins backed by U.S. dollar, Japanese yen, Hong Kong dollar and euro can all be on a public chain.
Based on the system of assetblockchainization. Asset blockchainization is a systematic job as we elaborated in the serial articles.
Six major systems of asset blockchainization Taking the onchain identity system for example, there must be an identity system behind stablecoins. Imagine we have a Chinese yuan-pegged stablecoin, when we obtain all accounts related to CNY, we need to go through the procedures of KYC (Know Your Customer) and AML (Anti-Money Laundering). However, the account system on blockchain is mostly based on public key or private key, so it needs to build a layer of account system on the top layer to match that of the real world. By building tools such as distributed identity and blockchain contract, Bytom builds an identity system on the blockchain to provide underlying support for the stablecoin. This is also something that most underlying public chains cannot make or have not focused on.
Based on the “national cryptographic standard”. In the narrow sense, the national cryptographic standard refers to “the public-key cryptography algorithm 2 based on M2 elliptic curve and SM3 cryptography hashing algorithm 3”, two pieces of standards deemed as domestic cryptography algorithm by the State Bureau of Cryptography Administration. It will enable Bytom to be friendly to domestic standards in terms of security. Broadly defined, the national cryptographic standard means that Bytom is a public chain protocol with Chinese elements. In the exploration for the development of state-issued digital currency and the creation of a stablecoin, we need to take Chinese elements into consideration. After all, codes have no national boundary, but the currency has its nationality.
Translated from “基于比原谈稳定币“ by Ma Qianli, vice president of 8btc News, responsible for the scenario realization of asset migrating onto Bytom Blockchain. Having competitive capability in IPO, M&A and asset securitization with many successful cases, Qianli was the director of investment banking arm in Codi Capital, and securities affairs representative of vöhringer after graduating from Shanghai University of Finance and Economics.
Iran does not have the highest degree of adoption of cryptocurrencies in the world, but admittedly, there is a bustling community of enthusiasts. For that reason, the best Bitcoin exchange for Iranians is P2P platforms like Localbitcoins. That is, if they don’t mind the risk of entrusting the purchase to another person. One of the disadvantages of Bitcoin that its proponents often gloss over is the fact that its mining algorithm has little real-world value. The underlying issue is this: in order to add a new block to the Bitcoin blockchain, a Bitcoin miner must include a “proof of work”, a number which has a property that is hard to find numbers that ... This algorithm incorporates the SHA-256 algorithm, but its calculations are much more serialised than those of SHA-256 in bitcoin. Scrypt favours large amounts of high-speed RAM, rather than raw ... Bitcoin took about a year and a half to write and a year or so to test before it was released to the world in 2009. Every Bitcoin naysayer has been proven wrong in the past four years. Keep naysaying. Additionally, mining a single Bitcoin consumes the same amount of electricity as consumed by 24 buildings in the country’s capital, Tehran, in 12 months. Use electricity but don’t import crypto mining equipment. Contrastingly, Iran is yet to approve the importation of cryptocurrency mining equipment.
Iran: Authorities seize 1,000 Bitcoin-mining machines in Yazd
Iran's first automated Bitcoin teller machine (BTM), exchanging Bitcoin to Rial with the capability of dollar based calculation, was unveiled in the 12th International Exhibition of Exchange, Bank ... DISCLAIMER: Leverage trading Bitcoin is VERY risky, and 70-80% of all traders lose money. Make sure that you understand these risks if you are a beginner. I only recommend crypto trading to ... The Bitcoin-mining machines, which are banned in Iran, have been blamed for a seven percent spike in the country’s electricity consumption rate during the month of June. 👉 Subscribe so you don't miss the next one: http://bit.ly/2QKVDdV Stories: Topic 1: DeFi The Hack: https://decrypt.co/43036/kucoin-hack-closer-to-200-million... BITCOIN BOUNCES BACK!! 🛑 IRAN SITUATION / Programmer explains - Duration: 50:08. Ivan on Tech 20,395 views. 50:08. What is Bitcoin? Bitcoin Explained Simply for Dummies - Duration: 12:49.