The concept on public and private keys sounded very tricky but very well presented.
I am already figuring out how my private key could be as I tend to lose my passwords quite often.
Wondering how blocks are allocated to different miners to solve/verify before being added to the blockchain for it to be fairly distributed, do those with more money, more resources or mining equipment have advantages over the âpoorâ? what kind of algorithm is utilised for example round-robin, first-in-last-out, queue etc. How do you compete to solve the riddle every 10 minutes?
These days, Bitcoin miners use specialized hardware called application-specific integrated circuits, or ASICs, designed just for mining. These devices can cost around $500 up to over $15,000. There are even mining pools run by third parties where groups of machines work to solve the same problem, then split the profit if they manage to mine a new block. All of this means that a single miner has little chance to successfully mine a block. Even with an ASIC, the advent of mining pools makes it difficult for one miner working on their own to find a new block. and those without specialized hardware, their chances are even lower.
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Thank you for taking the time out to share. This is what I thought but happy for your clarification. The other thing which Iâm sure many people have asked before is âwhat happens when all 21 million bitcoins have been allocated?â Sure the scarcity makes it attractive and lucrative but will it not create the same problem in the future with power being held by those with the most amount of bitcoin? If a BTC reached say a million dollar for 1 coin poor people will not be able to afford it even the fractals. Also, BTC advocates take pleasure in the demise of fiat currency but if you donât have fiat currency in the first place to start with how can you amass or acquire crypto to begin with?
The Coin Bureau channel on YouTube has an interesting video about what happens after the 21,000,000 bitcoin have been mined. People do not need fiat currency to make, send and receive crypto. People can mine their own crypto, or get crypto in exchange for products or services, or as gifts (from others who have already mined crypto), with or without fiat currency. If someone has mined the crypto, it can then be transferred to a wallet, using a digital connection. Fiat money has its uses, Iâm not saying that it is bad, but crypto doesnât need fiat money. Of course, in the real world, most of us would have a huge challenge with getting the proper items for making and sending crypto (the devices, internet connections, electricity, etc.) without fiat money to pay for them!
I really enjoyed this lecture about public key cryptography! This includes the information that wallet addresses are additional numbers, and are different than the public keys, for BTC wallets. I remember using a Ledger hard wallet, together with the software for the device, and I got different receiving address for the different BTC transactions. It seems that these different receiving addresses were perhaps different wallet addresses, provided by the Ledger system. Maybe Iâm not correct about this, but anyway, the general information about public key cryptography is interesting!
Yep, and these ârootâ keys are known as x/y/z pubs (public keys) with the corresponding x/y/z privs (private keys)
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In the video âPublic and Private Key Cryptographyâ, it is said that private keys are generated randomly, and there isnât any kind of check on the network to see if such a wallet already exists when a new one joins. This is not a problem because the number of permutations is so great it is for all intents and purposes impossible for identical keys to be created.
However I understand that many (all?) private keys are based on seed phrases. If a large proportion of seed phrases are based on real English words that meet certain criteria, arranged in a limited number of slots (usually 8-20, if I recall correctly), the chances of a new private key matching an existing one ought to be much greater than just a completely random string of characters, with 40+ slots, right?
The english language wordlist for the BIP39 standard is 2048 words, if the phrase contains 12 random words, the number of possible combination is 2048^12 = 2^132. It is a very huge number and if the phrase contains 24 random number, the number of possible combination is 2048^124(very very huge number). The chances to guess the phrase is almost zero. Here is Ivan video he explains it very well. https://www.youtube.com/watch?v=It6igBdMY-I
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did you learn all this within the academy, I just started and it is pretty impressive how you explain everything?
Yes, most of it I have learned from the academy and beside that I read some useful articles about blockchain and bitcoin , and that diagram is form an article.
Just wondering, but what would happen to the blockchain if a miner tried playing against the rules despite the incentives? Wouldnât it ruin the blockchain? so shouldnât there be another mechanism that prevents this kind of fraud?
edit: i found the answer for it
the miner could make fraud, itâs true but this doesnât mean the rest will approve; theyâre going to report it as an invalid transaction and wonât accept it.
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Hello all. I actually have a basic question regarding digital signatures in Bitcoin. What is the formula for the actual signing of the transaction? I know you take the transaction contents and the private key and âsignâ the transaction, but, what actually happens in the âsigningâ process? I assume it appends the contents to the private key, then hashes an output that is the digital signature. Is that correct?
Here is an interesting article it will answer your question. https://learnmeabitcoin.com/beginners/digital_signatures
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This website of Greg Walker is awesome.
Did you watched his YouTube videos?
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Yep, I have watched some of his videos.
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If i make i a letter with the txid i quess (or what would be the information in the letter) that at any given moment the miner can input the transaction, there is the possibility that i send all my bitcoin away before the miner can mined or âexecutedâ my letter.
Now the miner cant charge my bitcoin because my amount is 0.
If i deposit then again bitcoin to my adress is then the miner able to make this txid or letter (what ever it is) into the blockchain or would be the letter way diffrent because the data in the blockchain would give me a diffrent letter to make
Transaction cannot be reversed, but if your transaction is not confirmed yet, you can broadcast a transaction with the same inputs as the previous one to the entire network for a second time but with a higher fee to your own address, thereby canceling the previous expenditure and creating a new one.
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Question regarding nodes: What is the purpose of a node that does not mine?
The purpose of nodes is to preserve the integrity of the blockchain for a particular cryptocurrency. An entire blockchain history can be preserved even if there is just one node running it, anywhere in the world. This makes cryptocurrencies that run on blockchains extremely resilient to things like hacks, power failures, or systemic crashes.
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