You’re reading this because you’ve heard of the honey badger of money – Bitcoin. A digital cryptocurrency. So let’s fast forward into the current events. Around two months ago, mid march, Gavin Andersen (one of the more well known full time bitcoin developers) has stated publicly that he planned to implement a hard fork change in Bitcoin: A block size increase. Currently the maximum size a block can be is approximately 1 MB. The increase proposed is 20 MB. Within the past week (last week of May) Gavin seems to have lost support from the communities consensus as a whole with this figure and has mentioned in passing that he may instead choose to collaborate with Mike Hearn on Bitcoin XT – a fork of Bitcoin designed to handle double spend transactions (by relaying attempts and ‘marking’ transactions with a red highlight) as well as extended analysis ‘specific unspent transaction outputs’ for better verification. While the current version of the software does not show any support for this larger 20MB blocksize, it appears that is the route Gavin intends to take should other core developers choose to not pursue the larger block size, which is acceptable, considering that Luke-Jr, Gmaxwell, and Wumpus are all strongly against the size cap increase. Whether this is because they stand to gain from the success and hard work placed on blockstream or not, time will tell. Also, Today I learned that 50,000 bytes worth of trx data is reserved for ‘high priority trx’ stuff where a fee of .0001 or more is paid. Otherwise, it seems that paying a fee of .00001 per KB to be included in the remaining 700,000 bytes.
Each transaction is approx.
500 250 bytes on average.
And ALSO The reference implementation caps the number of free transactions it will relay to other nodes to (by default) 15 thousand bytes per minute.
Say you’ve got a faucet balance (based on half a KB per avg transaction, you need .00001 per every 3 transactions – using this information, do your best to hold off from withdrawing from a faucet as long as possible or use your BTC within services that are off chain to save money on transaction fees)
Based on my complex calculations 750000/250 = Average of 3000 transactions per block effectively
3000/10 = 300 which divided by 60 = the 5 transactions per second that everyone is complaining about. As things currently seem, we’ve hit an average of 1.5 transactions per second based on 133K transactions being reported on blockchain.info for June 1st 2015 so maybe perhaps there is benefit to Intermediary systems that allow off chain transactions to occur till days end and work w/ consensus of a mutually trusted wallet software (fully equipped with md5 checksum validation so bad actors couldn’t use hacked editions).
In my own opinion options are good, but the network utility will will ultimately prevail and trump any development if such efforts are not utilized by the masses.
21Inc indeed Matched my prior speculations and determined they were creating a service that used both a client and server based content delivery model suggesting they intended to have both a mining device and wallet. With further unveiling, we have determined that they plan to offer a software level form of architecture to allow bitcoin mining on other custom chip fabrication implementations – imagine Intel having a spec guideline to follow and creating their own passive asic technology fully interoperable with 21co’s infrastructure, yes that’s where I believe they are going. The long term play here is to sell users firmware locked hardware upgrades on different mobile and hardware wearables as well as on consumer hardware. If your hardware is generating small amounts of bitcoin, it’s very easy for Qualcomm or Intel to persuade you to convert your coins into an ‘upgrade’
OKcoin may soon go under or at least face a significant image problem based on the dirty laundry aired here. The golden rule of business is: keep personal affairs separate. The past record of individuals should not be used against as a means to escape a business obligation, particularly in the form of a contract. The main question that comes to mind is, : “WHY WOULDN’T YOU BOTHER CAPITALIZING THAT YOU OWN AND OPERATE BITCOIN.COM I would promote that very fact to death and would find 6 to 15 legiatmate companies to pay $1400 a peice for a profile page and banners. They could have written off their own page and monetized the other 11 for a tidy profit with paybacks to Ver – whose vision I would gather had been beyond the minimum obligation of 10K. Also, while I’m not going to say what he would or would not do, I’m certain that had more performance efforts been shown on behalf of OKcoin, that Ver may have in fact been willing to defer payment or reason with them on renegotiated terms. By immediately terminating contracts and citing past criminal behavior as a reason to avoid obligations and deny payment, they no only alienated themselves, but they also brought into question their credibility over the longer term as to whether a 10K per month marketing liability is really an issue. I’m not balking at the 10K fee, it IS EXPENSIVE. I’m balking at the audacity they have to terminate a contract publicly without attempting fair recourse – 1 month of payment is not fair recourse – lining up another caretaker of the domain willing to pay the fee and repaying the entire balance is considered fair in my eyes.
Ross Ulbricht was sentenced to life in prison on 2 consecutive counts for a fabricated murder for hire – notice the the US government has used the tactic of coercion and blackmail to convey that a non-violent drug offender is in fact a violent criminal and that minimum mandatory sentencing is in fact the answer instead of allowing individuals like Ross and Charlie to serve time with community service classes, teaching computer programming language to both senior citizens and the DOJ alike [/sarcasm], but seriously, for a man who made drug accessibility safer for many users, they really threw the book at him – at least Judge Forrest could have pinned specific drug overdoses against him and instead charge him with manslaughter. Also, its clear that the government was directly involved in fabricating the circumstances to force Ross to act the way he did, I believe the legal term is Duress. (I’m no lawyer)
And also, the price has dropped more than two thirds since a year ago, which is okay, considering you’re looking for opportunities to earn BTC instead of simply speculating – while purchasing power is an indicator in terms invested asset commodity utilization, it means nothing compared to the sustained network advantages of existing fiat systems. I’ll report more events as they occur with my own take on things as they progress. Till Next time guys!