Bitcoin Liza is another “pseudocoin” with no perspective. Guide: how to get coins from bitcoin forks
Everything the average Bitcoin mining user needs to know about Bitcoin forks.
To get “free coins” from Bitcoin forks, you need to have Bitcoins on a platform that supports the fork up to the block height where the fork takes place.
After the fork is launched on the blockchain, you should pick up your coins.
The methods of collecting coins may differ depending on which platform the Bitcoins are on. If this is a third party, then it will credit the coins to the account if it supports the fork when the user controls the private keys (for example, in the Bitcoin Store wallet).
The user needs to set up the wallet to receive new coins on their own.
This is the whole point, the details are described below.
Advice. Before starting work, it is better to familiarize yourself with the list of the nearest bitcoin forks, in which it will probably be profitable to hold bitcoins.
How hard forks work (in a nutshell)
When coins are forked (here we mean “hard forks”), a copy of the existing blockchain appears.
This process creates two identical registers (thus, anyone holding coins on the same blockchain will have an identical number of coins on the new default blockchain).
New coin miners can now modify the bitcoin code to create a unique asset. This is the point, but this article is not about the basics of forks.
Step 1. Have Bitcoins on the forked platform before the Snapshot starts
To receive "Free coins" (in other words, to qualify for a fork), you must have bitcoins on the platform that supports the fork before the "snapshot" occurs (see notes below).
The developers of each fork will make a "snapshot" of the asset / blockchain (all wallet balances in the public domain) at a given block height. The developers of a given platform tend to do the same.
Each miner, before the block height reaches the specified parameter, will have an equal number of default forks of coins if they are controlled by private keys. Along with this, if a miner has bitcoins on a platform that supports the fork, they will also be credited anyway (although this process is at the discretion of the platform).
However, having bitcoins on the platform in order for the snapshot to occur is only step 1. The miner will not be able to pick up the coins right away - a new blockchain has to start first (and this process is also at the discretion of the fork developers).
Advice. When “bitcoins for snapshot” appear, you can sell them. Bitcoin and forks after snapshot will no longer be interconnected. After this block, in essence, the blockchain (fork) is split into two completely different chains (for example, when you save a document by pressing the "save as" button, changes in the new document do not affect the old one).
An example of the availability of bitcoins for a snapshot
To get Bitcoin Gold, you need to have bitcoins in a wallet or exchanger that supports the Bitcon Gold fork up to block 491407. When forked, the block height matters (in other words, the block number), the date is just an approximate value.
It is not convincing enough to conduct a transaction just before the block, as the transaction may be recorded on the blockchain before the block!
What platforms support Bitcoin forks
Platforms that support Bitcoin forks include third-party Bitcoin wallets (differing in forks, Coinomi wallets are good enough to serve forks), exchanges such as Binance or HitBTC with good fork handling capabilities (again, they can differ in forks), and wallets allowing you to directly control private keys (for example, the Bitcoin Core wallet)!
Other organizations like Coinbase, Bittrex, TREZOR, etc. (which are third party wallets and exchanges) may or may not support a given fork. Unfortunately, many wallets / exchanges often tell users if they will support the fork only after the fact.
Pay attention to getting bitcoin futures from the fork
Some exchanges offer bitcoin futures in the snapshot block. For example, Binance and HitBTC have done this in the past. Futures can be useful, they allow you to trade coins before they come out!
If the fork is over, then the miner is really lucky. However, if the fork is successful and stable, in the end it can lead to the fact that the miner will have to sell expensive currency for pennies, trying to give it away almost immediately.
However, futures are highly controversial. After exchanging futures, the miner will no longer receive coins. Likewise, purchasing more futures will have more forked coins if they are legal.
Step 2. Waiting
Step 2 is waiting. It is necessary to wait for the chain to reach the end. This process can take weeks or months, depending on the fork.
The only way to avoid this long wait is to use an exchange that offers futures for forked coins (described above).
It should be remembered that when receiving futures and trading them, the miner trades his forked coins. Sometimes, on platforms like Segwit2x, it can be beneficial. Segwit2x forks never ended, so only users who traded futures won (bitcoin holders couldn't do that).
However, if the fork ends successfully, this method can be quite disadvantageous. For example, selling Bitcoin futures for $ 200 in August. This is not the best option, since today the cost of coins at the auction is about $ 3,000.
In any case, in the absence of futures (and perhaps even when they are received), step 2 is waiting. Yes, waiting is important enough to make it a separate step.
Comment. Attempting to skip step 2 entails the risk for the miner to fall prey to malware or scammers. Each fork has a fake wallet and a fake set of instructions designed to trick users. In any case, the purpose of the malicious software / instructions is to trick the miner into transferring their bitcoins into the void. When transferring bitcoins into the void (in other words, online scammers), money is lost. Don't do this, wait for official instructions!
Step 3. Once the chain is over, you can collect your coins
If you control private keys; otherwise, you have to wait longer ...
Controlling private keys
Once the developers announce that the new forked blockchain has ended, coins can be collected. To do this, you will need to set up your wallet for forked coins, as well as important bitcoin keys.
The same public and private keys used for bitcoins apply to the new currency as well. For this reason, it is important to wait until you are confident that the coin is stable. If the blockchain does not have replay protection, this can lead to its loss.
Thus, it is possible to "wait" even if the private keys are in control. Let others play with the glitches of the test layout. After everyone is convinced that replay protection exists and the wallet is stable, you need to set up a new wallet and get coins.
With a wallet that supports forked coins
You need to follow the wallet instructions and configure it for the new forked coin.
With an exchange or managed wallet (for example, Coinbase) that supports forked coins: you should wait for the account to be credited.
This is the simplest solution, but it can be the most stressful as everyone else will be setting up their wallets while the user is thinking, “And I wonder if Coinbase will write a blog post about this?". Anyway…
Step 4. Hodl (differently, waiting)
Now, with new coins available, the user should probably Hold on For Dear Life and wait for the currency to rise in value. Not thinking that forked coins will grow once or twice over the next year means not knowing crypto.
It is better not to trade coins right away, but to wait for an increase in the rate, when they can be strengthened and sold profitably. In any case, this is a challenge.
Historically, holding forked coins is better than trying to sell them immediately at a low price (if there is a huge jump in prices right away, you should certainly take this into account; this means that you do not need to sell bitcoins for $ 200).
The problem of slow transaction processing in the Bitcoin network has stimulated a group of developers to implement in its mechanisms support for the Segwit2X protocol, which increases the block size. The fork was planned to be implemented in the fall, but due to low popularity, then this decision was canceled. Now a group of programmers are planning to implement SegWit2X again, making major modifications to the blockchain system.
The start of the new fork is scheduled for block 501451, which will be mined on December 28th. As with other hard forks (), all Bitcoin wallet owners will automatically receive the same amount to their wallet in Bitcoin SegWit2X. In addition, they plan to redistribute the coins that belong to Satoshi Nakamoto in the BTC system among all network participants. That is, for example, if you have 10 BTC on your account, then in SegWit2X you will receive the same 10 coins, plus 1 more coin from Nakamoto's reserves, and if you have 200 BTC, then the "bonus" will already be 20 coins.
I promise that all BTC holders will receive not only B2X in a 1: 1 ratio, but also a proportional amount of “Satoshi Nakamoto's bitcoins” as a reward for their commitment to progress, - said the creator of the project.
In addition, it is planned to introduce new functions into the system from January 18, 2018. SegWit2X cryptocurrency will use the X11 algorithm for mining (instead of SHA-256). The block size is planned to be increased to 4 MB, while the block time will be reduced from 10 minutes to 2.5. The difficulty of mining will also be reviewed more often, not once in 2016 blocks, but after finding each new one. To protect transactions from repetition, the introduction of a unique address system is envisaged.
The project roadmap contains a number of planned innovations. It mentions offline codes, instant transactions and support for the Lightning network, ZkSnarks technology, smart contracts, and support for anonymous transactions.
The development team of the SegWit2X fork on the project site mentions Jaap Thurlow, Cyrem Getty, Donna Hughes and Robert Schabo. According to the organizers, work on the introduction of a new version of Bitcoin was prompted by problems in the classic BTC blockchain system. Due to the lack of performance, the average commissions are $ 15-20 per transaction, and the transfer confirmation time can be up to two days. This, according to the developers, does not allow Bitcoin to be used as an effective means of payment.
After the release of the SegWit2X hard fork, exchanges such as HitBTC, YObit and Exrates are expected to start working with it. The mining service provider Zumminer is also mentioned among the partners.
At the moment, it is difficult to say what the future holds for the new fork. However, given that now the Bitcoin exchange rate after breaking the $ 20k mark, including due to problems with fast transactions, on the wave of the hype, the new currency has every chance to rise in price.
There are currently two forks planned on the Bitcoin network, and many are wondering how to prepare for them. The first fork - Bitcoin Gold, is scheduled for October 25, the second fork of Segwit2x (BTC1) will occur in mid-November at block 494784.
Two forks
On August 1st of this year, the bitcoin blockchain split. There are currently two Bitcoin forks planned over the next few weeks. This means that if it does happen, then the result may be four blockchains with a common transaction history of the original Bitcoin network created by Satoshi Nakamoto.
The Bitcoin Gold (BTG) project aims to fork in order to create a version of Bitcoin that is not available for ASIC mining. The Bitcoin Gold team believes that ASIC mining is too centralized, so they create their own fork. Thus, BTG developers hope that everyone will mine on video cards and changed the consensus protocol to Equihash. This hard fork is scheduled for October 25, according to the developers, but the network itself will not work until November 1.
The Segwit2x hard fork is a technical compromise arising from the New York Agreement between the vast majority of miners and large companies. Some believe the agreement prompted miners to vote in order to eventually implement the Segregated Witness (Segwit) protocol; however, the agreement included a hard fork that would increase the block size to 2MB after 3 months. This hard fork will happen at block 494784 on or around November 18th.
Before, during and after forks
There are a few things a bitcoin owner should be aware of before, during, and after forks. Before a fork, users should make sure their funds are in the right place at the right time. This means choosing whether to keep the funds on the exchange, as traders do, or to hold the funds in an independent wallet. Most would agree that the best option for complete control over funds is to keep bitcoins in a cold wallet. Before a fork, you should make sure the keys are available for them.
\ nIf the user decides to keep funds in an online wallet or centralized exchange, remember that the provider has full control over them. It is possible that exchanges will suspend deposits and withdrawals and trading during the fork.
\ nThere is a popular belief that bitcoin transactions during a fork are not a good idea. You should wait until the dust has completely settled, and only then start transactions. During a fork, blockchain restructuring, attacks, and transaction confirmation delays are possible.
After the fork, you should learn more about the infrastructure of both forks, and only then use separate networks. You need to learn how to import keys to receive split tokens, wait for new tools from wallet providers and exchanges. For example, many Bitcoin wallet users had to wait for providers to provide full support for the network that was created this summer. Some users will have to wait days or even weeks for ISPs and exchanges to prepare support and network partitioning tools.
Hacks and Protection
Neither Bitcoin Gold nor Segwit2x have added hack protection at this time. Segwit2x originally had such protection built in, but the developers removed it from the protocol. Bitcoin Gold promises tamperproof protection, but no code has been added to the Github repository. Forks still have the option to add an inline version or more powerful defenses before they take effect. During a hack, it is possible that the Output of unspent transactions can be identified by the miners of both networks, making it easier to manipulate. Opinions are divided on the need for such protection.
In addition to this, lightweight wallets, also known as SPVs, operate on a blockchain that contains a longer blockchain. SPVs do not validate the addition of transactions, but rather join the longest chain. SPV wallet users should make sure they are working with the correct fork. Some providers let users decide which blockchain to join, while others make the choice for them. If this does not suit you, then it would be better to transfer bitcoins to an account that allows you to choose, or initially working with the necessary fork.
Electronic Wallets, Exchanges and Full Nodes
It is believed that hard wallets and writing the wallet key on paper are best for storing bitcoins during a hard fork. With paper wallets, the user can spend any time after the fork on both networks. With an e-wallet, you may have to wait for a firmware update. Ledger and Tenzor had to release updated firmware for Bitcoin Cash.
Users can also leave the choice of the chain to themselves by downloading the entire blockchain. Full nodes enforce the rules of the chain to which they are attached, and such wallets will also have keys that will facilitate the receipt of new tokens.
Bitcoin hard forks have become a real trend over the past month. Bitcoin Cash, Bitcoin Gold and Bitcoin Diamond are just the beginning - in December and early January, users will see as many as 5 new forks that promise to modernize the existing Bitcoin network and make it more convenient. What else will delight us or upset the December Bitcoin forks?
Bitcoin hard forks in December: what's new?
Already today, the dates of the new hard forks of bitcoin are tentatively known. Their exit order is as follows:
- 12.12.2017 - Super Bitcoin (block 498888);
- 23.12.2017 - Bitcoin Lightning (block 500,000);
- 25.12.2017 - Bitcoin Silver and Bitcoin God (block 501225);
- 31.12.2017 - Bitcoin Uranium;
- And one more "winter" hard fork will be carried out 2.01.2018 - Bitcoin Cash Plus (block 501407).
"Please forgive me. Bitcoin Platinum is a trash coin. I created this project to earn 5 million won ($ 4,600). "
You did not find another previously planned hard fork in the list Bitcoin Platinum. Its creator, according to Cointelegraph, was a teenager from Korea. The author of the project, called Bitcoin Platinum, admitted on Twitter that this is a fraudulent scheme.
What else is known about these December Bitcoin forks? Unfortunately, it is not easy to give an exhaustive description of all the upcoming forks - there is not enough information about them, but we tried to collect all the available information.
Advantages Bitcoin god the creators see the following:
- large block size;
- POS mining;
- zero knowledge proof;
- smart contract technology.
Bitcoin lightning(or, as it was nicknamed on the Web, Lightning Bitcoin) will use the new DPOS consensus algorithm. This will reduce the time to confirm transactions from 10 minutes (like the original bitcoin) to 10 seconds. There is a clear repetition of the Lightning Network concept, which, in fact, gave rise to the name of the new fork.
Bitcoin Cash Plus will combine the best aspects of the sensational forks of bitcoin cash and bitcoin gold: a larger block size (8 MB) and the use of the Equihash mining algorithm, which will allow mining cryptocurrency on video cards.
How to get December Bitcoin forks?
Of course, the question of the innovativeness of new forks is quite relevant, but users are more interested in where they need to store their original bitcoins so that they can be duplicated on forks, because this is a real way to make money without investment and any effort. I would like to say right away that until the release of new coins, all the information presented relies solely on the statements of the exchanges themselves.
Many exchanges have already approved of Bitcoin lightning... Among the platforms that supported the project, there are such large exchanges as BTCC, QBTC, OKEX, Huobi, BCEX and Bixin. The complete list is presented below.
Most likely, you can get coins from other bitcoin forks on the exchange. Binance... This service is regularly updated and adds outgoing forks to the list of its cryptocurrency assets, so all holders of the original bitcoin on this platform can count on duplication.
In addition, the active adoption of forks demonstrates and YoBit by launching support for Bitcoin Gold within the first two hours after the release. The exchange has already announced that it is ready for implementation Super Bitcoin, therefore, to get new coins, you can safely transfer the main stack to this service. Also, the hard fork Super Bitcoin has already secured the support of such exchanges as OKEX, Huobi, BigONE, Bitfinex, ZB, BTCTRADE, OINUT.
So far, this is all the known information about where and how to get the December bitcoin forks. As new data becomes available, we will update the article.
Siacoin cryptocurrency review
Sia is a decentralized cloud storage platform. By providing storage contracts with peers, Sia enables its users to store data across a wide network of members in a secure, private, secure and resilient manner.
The contracts define the conditions under which the storage provider stores user data and requires the provider to periodically submit proof of storage to reassure the customer that their data is in safe hands. These contracts are stored on the blockchain so that they are publicly validated.
Sia is considered a Bitcoin derivative that includes specialized contractual support. The settlement currency Sia is aptly named Siacoin, and a two-way peg will be implemented in the future for the financial connection of Bitcoin and Siakoin blocks.
Purpose of Sia cryptocurrency
Sia aims to penetrate the cloud storage market. According to the team, this multi-billion dollar endeavor could be facilitated through the use of blockchain technology. Offering a cheap, reliable, and highly redundant cloud storage solution can be a worthy competitor to ransomware storage providers at the individual and enterprise level.
Sia's main goal is to bring storage into the exchange economy. As the old adage goes, "wasted memory is wasted memory," the team believes it is possible to free up unused storage from the world and merge it into a free market. In this configuration, data is distributed over a large network with a large surplus.
This new paradigm for the cloud, where a decentralized network of ad-hoc data centers represents a global storage solution, is extremely promising. Data remains protected thanks to strong cryptography, storage is much more accessible, and any single point of failure is cleaned up through a network of redundant nodes, ensuring uptime for as long as possible. The availability and innovation of Sia's cryptocurrency attracts competition from even the most sophisticated service providers.
Operation mechanics
Sia transactions are somewhat simplified bitcoin transactions. They are canceling scenario fees by choosing a multi-signal M-of-N scheme for all transactions, the motive is to reduce complexity.
Several extensions are attached to the transaction format to enforce storage contracts as described in the Sia whitepaper.
Proof of storage
File storage with Sia involves splitting files into constant-sized segments and then merging them into a Merkle tree. The Merkle tree, along with the file size, is used to validate the vault evidence.
Hosts prove they have a file in their possession by reporting the hashes from the Merkle tree of that file, along with a randomly selected segment of the file itself. The random number generator used to select the segment to send as evidence is seeded by hashing the concatenation of the contract ID and the previous block header.
It is assumed that if the host consistently creates credible evidence, they store the entire file. The math here is simple - a "cheat" node storing only 50 percent of a large file will fail to obtain proof of storage 50 percent of the time, which means that on average there will be 13 proof of storage until you can 99.99 percent of the time. make sure the node is dishonest. The more successful the vaults are, the more confident the node is. Nodes are financially deterred from cheating the system because, as we will learn in the next section, if the contract fails, the node will lose its mine.
Contracts
Contracts are formed between storage providers (aka hosts) and customers. This contract defines the conditions for storing data - in particular, the regularity with which the host must provide confirmation of their further storage of client data.
This evidence must be continually provided prior to the expiration of the contract. Contracts are facilitated using a blockchain similar to Bitcoin but with a few modifications. Hosts are compensated for submitting correct evidence and punished for incorrect or missing evidence.
This evidence is publicly verified and is present on the blockchain, so consensus across the network can automatically enforce these contracts. This is important because it means that clients do not need to verify their own evidence, the network can do it for them.
The contracts are awarded with some initial funding from both the lessee and the lessor.
The money provided by the tenant should subsidize the host to store their files, while the money provided by the host is a deposit that the landlord will have to forfeit if the contract is not completed successfully.
Economy of Shiacoin
The settlement currency of Sia is Siacoin. Siacoin is an inflationary currency where the supply will continue to grow. Sia uses and will continue to use proof of work. Like Bitcoin, newly minted siacoins are awarded exclusively to miners as an incentive to keep the network safe. The target block time is approximately 10 minutes, which is equivalent to Bitcoin. The genesis block reward was 300,000 Siacoin and the network is set up such that this reward decreases until the reward reaches its absolute minimum of 30,000 coins per block.
A coin supply post from the Sia forum explains:
“By March 2021, inflation will be about 3.4 percent. inflation will be around 2.9 percent by March 2026. by March 2036 it will be about 2.2 percent. In the long run, inflation will be around 2 percent for a long time. Thus, in the long term, inflation is likely to be lower than the growth rate of the Sia network, apart from lost coins.
In v1.2.x, Sia implements a Host Proof of Existence mechanism where hosts have to write down certain siacoins to show that they are real and sincere for business to resist hacker attacks. As the Sia network matures, the annual siacoins burned can account for 0.1 to 0.5 percent of the total siacoins available. The burned siacoins will offset inflation in the long run. At some point, this may lead to deflation of siacoins. "
Below are the prices of the coin and the annual inflation rate.
The authors of the Siacoin report warn about its volatility, especially given its early adoption. The volatility of the coin's value can lead to the creation of more expensive storage contracts, with hosts hedging potential losses by increasing their prices in response to price fluctuations.
This unpredictability is expected to be tamed after Siacoin and Bitcoin are connected via two-way peg.
There are two ways someone can contribute to the Sia network and earn coins. The first, and perhaps the most obvious, is their prey. Coin mining protects the network by verifying transactions. The second way is to become a master. By renting out spare storage, you will be subsidized in Shiacoin according to the contracts you enter.
Sia is developed by the non-profit organization Nebulous Incorporated. The company has expressed its intention to make Sia its main source of income, which affects some members of the community. However, the Sia platform is completely open source under the MIT license. The MIT license is known for being particularly lenient when it comes to forking and modifying source code, so perhaps these concerns are unfounded.
Siacoin and Siafunds
An important distinction needs to be made between Siacoin and Siafond. Siacoin refers to the used, earned and mined coin of the Sia platform. On the other hand, Siafond refers to another monument. This coin represents a stake in the Sia platform as a business entity and not the local currency used by the Sia network. Siafunds is how Nebulous Corporation aims to generate income from Sia's success as a platform.
Siafunds are used to generate a profit proportional to the value of Sia as a platform. In particular, this is done by paying a contract creation fee of 4.9 percent. This fee is reallocated to Siafund holders. Siafunds are distributed, with about 88 percent owned by the Nebulous corporation and the remaining 12 percent by early supporters of the project.
Siafunds are transferable assets like Siacoin, but they cannot be used to fund custody contracts or miner's fees.
In a sense, Siafonds encapsulates the amount of Siacoin. When Siafunds are transferred from one address to another, a transaction withdrawal is generated that contains the amount of Siacoins generated from that particular Siafund since its previous movement. Thus, Siafunds can be considered as a right to a certain amount of Siacoin.
Prospects for SC-BTC
The ticker for Siacoin is SC and most of the traded volume comes from Bisq, Bittrex, Cryptopia, HitBTC, Poloniex and Yunbi exchanges. The weekly price movement is shown below for SC-BTC on the Poloniex exchange. As of this writing, SC-BTC is trading very close to important fractal support at 0.00000253, around 0.00000321. The latest fractal resistance lies at 0.00000838 and given the newly formed fractal support, we expect SC-BTC to start trending towards this level.
Conclusion
Sia offers a scalable cloud storage solution that introduces free memory into sharing savings.
By providing its users with the financial benefit of their spare computer memory, Sia offers unprecedented possibilities for future data storage. Blockchain technology has proven to be pervasive in industries where centralized solutions are fading away under their flaws.
Sia has real potential to democratize cloud storage, much like BitTorrent freed up file sharing. Due to its high redundancy, unapproachable confidentiality and financial incentives, Sia introduces a new model for storing information, where the client has complete control over his data.