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Cryptocurrency news

General issue

What is bitcoin?

Bitcoin (BTC) is the monetary unit of the Bitcoin system. The abbreviation BTC is used to indicate the price or quantity (for example: 100 BTC). Bitcoin is immaterial. This is just a number linked to a bitcoin address. For more information, see the article ” what is bitcoin?”

How do I get bitcoins?

There are many ways to purchase bitcoins:

Accept bitcoins as payment for goods or services.
There are several exchanges where you can exchange them for traditional currencies.
Find a merchant and exchange it for cash.
Create a new block (currently gives 12.5 bitcoins).
Participate in the joint creation of the block.
For more information, see the article ” How to get BTC?”
Can I buy bitcoins via Paypal?

Although you can find someone who wants to sell you bitcoin via Paypal, most major exchanges and exchanges do not allow you to top up your account via Paypal. Because it is not uncommon for someone to pay for the purchase of bitcoins via Paypal, get their bitcoins, and then fraudulently complain to Paypal that they did not receive their goods. In such cases, Paypal is very often on the side of the fraudster, and therefore the exchange does not allow this method of adding funds to the account.

Where can I find a forum for users of the bitcoin system?

Russian-language support can be found on the forum https://forum.bits.media
The largest multilingual forum is https://bitcointalk.org/

How are new bitcoins created?

New coins are generated by the network node each time it finds a solution to a mathematical problem (i.e. creates a new block) that is difficult to perform and can demonstrate proof of its work. The reward for solving the block is automatically regulated so that in the first 4 years of the existence of the bitcoin network, 10 500,000 BTC will be created. The amount is halved every 4 years, i.e. 5,250,000 for the next 4 years, 2,625,000 for the next four years, and so on. Thus, the total number of coins will be 21,000,000 BTC.
Blocks should be created on average every 10 minutes. As the number of people trying to create these blocks changes, the difficulty of creating new coins will change to maintain this value. The complexity changes every 2016 blocks. The probability that someone will create a block is based on the ratio of the speed of the system used to the total calculation speed of all other systems that generate blocks in the network.

How many bitcoins are there now?

The number of blocks multiplied by the number of coins in the block is equal to the sum of existing coins. The number of coins in a block is 50 BTC for the first 210,000 blocks, 25 BTC for the next 210,000 blocks, then 12.5 BTC, and so on. The reward for a found block drops 2 times every 210,000 blocks. If you do not trust sites that display the current number of issued bitcoins, you can calculate it yourself, knowing the number of blocks and the algorithm for reducing the issue.

How many parts is bitcoin divided into?

Technically, bitcoin can be divided up to 8 decimal places using existing data structures, so 0.00000001 BTC is the smallest amount at the moment. Ideas about securing even smaller parts of bitcoin may be relevant in the future, if the need arises.

What do I call bitcoin shares?

At the moment, there is a lot of discussion about the names of bitcoin shares. Main candidates:

1 BTC = 1 bitcoin
0.01 BTC = 1 cBTC = 1 cent-bitcoin (also known as bitcent)
0.001 BTC = 1 mBTC = 1 Milli-bitcoin (also called Mbit (pronounced “embit”) or millibit)
0.000 001 BTC = 1 µBTC = 1 micro-bitcoin (also called yubit or MicRoBiT)
The abbreviations described above are the accepted abbreviations in the SI system for thousandths, millionths, and billionths. There are many arguments against the special case of 0.01 BTC, since it is unlikely to represent anything significant while the bitcoin economy is in the growth stage (and it is not, of course, equal to 0.01 dollars or euros). Also, do not call 0.01 BTC a cent, penny or kopeck. This is the world currency. The only exception is “Satoshi”, the smallest part of bitcoin at the moment.
0.000 000 01 BTC = 1 Satoshi
in honor of Satoshi Nakamoto-the pseudonym of the inventor of bitcoin.
How will the block reward decrease when it reaches very small values?

The reward after 0.00000001 BTC will be equal to 0. No more coins will be created. The calculation is performed as a bitwise shift to the right of an integer 64-bit number, which means that it is divided by 2 and rounded down. The integer is equal to the value in BTC * 100,000,000. This is how the BTC is stored on your account in the bitcoin client. Keep in mind that using the existing rules, it will take about 100 years before there are problems in dividing bitcoin into parts.

How long will it take to create all the coins?

The last block that will create coins will be block number 6,929,999. It will be created around 2140. Then the total number of coins in circulation will be equal to 20 999 999.9769 BTC. Even if the separation accuracy is increased from the current 8 decimal places, the total amount of BTC in circulation will always be just below 21 million (provided that everything else remains unchanged). For example, at 16 decimal places, the total number of coins will be equal to 20,999,999. 99,9999999496 BTC.

If no more coins are produced, will new blocks be created?

Of course! Even before the end of creating coins, the use of transfer fees will become the main income when creating a block. When the creation of coins is over, there will be a need to maintain the ability to use bitcoin, and then the full reward for creating a block will be transfer fees. Therefore, even after block 6 929 999, new blocks will be created for making transfers.

But if no more coins are created, what happens if bitcoins are lost? Would that be a problem?

According to the law of supply and demand, the fewer bitcoins available, the higher the demand for the remaining ones, which will therefore have a higher value. So if bitcoins are lost, then the remaining bitcoins will increase in price to compensate for the loss, i.e. the number of bitcoins needed to buy something decreases. This is a deflationary economic model. As the average transaction size decreases, transfers are likely to operate with Milli-or micro-bitcoins. The bitcoin Protocol uses a base block of one hundred million bits (“Satoshi”), but unused bits are also available in the Protocol. In the future, they can be used to indicate even smaller parts.

What happens if someone generates a new block chain or another digital currency makes Bitcoin a thing of the past?

Why is my bitcoin address constantly changing?

Each time a transfer is received at the address specified in the “Your address” section, the client changes it to a new address. Therefore, the client recommends that you use a new address for each transfer in order to increase anonymity. All your old addresses can still be used: you can see them in Settings -> Your receiving addresses.

What is the Commission for a transfer?

Some transfers may require a transfer fee for faster confirmation. The transfer fee is processed and received by the block Creator. The latest version of the client evaluates the need for a Commission and its size.
The Commission is added to the payment amount. For example, if you send 1,234 BTC and the client requires a Commission of 0.0005 BTC, then 1,2345 BTC will be debited from your balance to make the transfer, and the recipient will receive 1,234 BTC.
Since the Commission is related to the amount of data that makes up the transfers, and not to the amount of bitcoins sent, the Commission may seem very low (0.0005 BTC for transferring 1000 BTC) and very high (0.005 BTC for transferring 0.02 BTC, or about 25%). If you receive small amounts (for example, small payments from co-mining), the Commission when sending will be higher.

Is it possible to extend the Protocol to include both the payment amount and the message?

At the moment, the ability to transmit external data in transactions already exists (via complex scripting mechanisms). However:

For each kilobyte, an amount of 0.01 BTC will be charged (as it is now arranged with normal transactions).
ECDSA (the public key algorithm that uses Bitcoin) does not support encryption, so you will not be able to encrypt this message.
This feature is unlikely to be used in Bitcoin itself. The block chain was not intended for this purpose.
If you send BTC to a non-existent address, will they be sent? Is there a check for the existence of an address?

They will be sent, but there is no verification. The recipient will be the lucky owner of the key to this address in the indefinite future.

What address do my payments come from? Can I influence this?

In the official client at the moment (Bitcoin 0.9), there is no option to choose the sending address. The address is selected from the oldest transactions. Since this can potentially reduce the level of anonymity, there is a solution in the form of a patch to the official client and even patched binary files, see the developer page

Where is the wallet physically located (wallet.dat file)?

The wallet. dat file can be located in different places depending on the operating system. In Windows, this is %APPDATA%\Bitcoin, if more expanded, then:

Windows XP-disk:/Documents and Settings/user_name/Application Data/Bitcoin
Windows Vista, 7, sever 2008-disk:/Users/user_name/AppData/Roaming/Bitcoin
On Linux, you can find it at~/. bitcoin/, and on Mac OSX, at /Users/user_name/Application Support/Bitcoin/
What happens if someone sends me money and I’m not online?

Any transfer to the “correct” address must be successful. To receive money in the Bitcoin network, you do not need to be connected to the network. As soon as you connect (or create an address), the money sent to it will be available to you.

Network
Do I need to configure a firewall for the bitcoin client to work?

The client usually connects to other nodes on the 8333 TCP port. You need to allow outgoing TCP connections to port 8333 if you want your bitcoin client to connect to more nodes. The client will also try to connect to the IRC (TCP port 6667) to connect to other nodes.
If you want to restrict your firewall rules to multiple providers and/or don’t want to allow IRC connections, you can find stable nodes in the backup node list. If your provider blocks the shared IRC ports, note that lfnet also listens on port 7777. Connecting to this alternate port currently requires either recompiling the client, or changing the routing rules. For example, on Linux, you can bypass port 6667 blocking like this:
echo 173.246.103.92 irc.lfnet.org >> /etc/hosts
iptables -t nat -A OUTPUT -p tcp –dest 173.246.103.92 –dport 6667 -j DNAT –to-destination :7777 -m
comment –comment “bitcoind irc connection”

How does the mechanism for searching for other clients work?

The client finds other clients primarily using dns seed and by connecting to the IRC server (channel # bitcoin on irc.lfnet.org). If the connection to the IRC server cannot be established (for example, when connecting via TOR), the built-in list of nodes will be used to request the addresses of other nodes.

Why am I having trouble downloading the blocks?

Add bitcoin.add the file to the list of allowed files in your antivirus. The launch of bitcoin can also help.exe with the key-rescan , it will recheck all the chains.

Can I download blocks from a third-party server instead of myself?

You can find an archive with blocks on third-party servers, but it is not recommended for paranoids or just those who have enough time.

How long does the Bitcoin client sync after the first installation? What is he doing at this time?

Official client with bitcoin.org during synchronization, it downloads the entire block chain and checks for itself that all the rules of the bitcoin system have been correctly observed. This check requires a lot of hard disk access, so the total sync time depends on the disk speed and to a lesser extent on the processor speed. This can take from a couple of hours on a fast SSD drive to several days on slow hard drives. So when you leave your computer to sync blocks, make sure that your computer’s power-saving settings don’t disable its hard drive. Until the client downloads all the latest blocks, your last payments will not be seen by the client and displayed in the wallet.

If you don’t want to wait for blocks to load at all, you can install another lightweight client, such as Multibit or Electrum. Although these clients are theoretically worse in terms of security.

If each transfer goes through the entire network, then the bitcoin network can become very large?

The bitcoin Protocol allows writing lightweight client programs that can use the bitcoin network without downloading the entire transfer history. Since traffic is constantly increasing, such clients will be developed. Nodes in a network with a complete history may become a separate service at some point. With some software changes, full-fledged bitcoin network nodes can easily keep up with VISA and MasterCard, using fairly modest hardware (a couple of modern servers). It is worth noting that the MasterCard network is designed in the same way as the bitcoin network – as a peer-to-peer broadcast network.

What types of transactions are there in the Bitcoin network?

There are three types of transactions:

Coin-generating, so-called coinbase transaction
Redistributing coins between key holders, such a transaction contains “inputs” and “outputs”.
Text message

For more information, see the article ” Bitcoin Transactions”
Why do I only have 8 connections?

See the item Do I need to configure a firewall for the bitcoin client to work?

Mining
What is mining?

Mining or mining is the process of spending computing power in order to find blocks and thus create new bitcoins. The essence of mining is to search for such a number that the hash amount from it meets the requirements of the current complexity for “sealing the block”, while the finder of this number is paid a certain amount, at the moment it is 12, 5 BTC. For more information about mining, see the mining FAQ.

Why was the “Generate coins”option removed from the client?

In the early days of bitcoin, it was very easy to find new blocks using a normal processor. With the increase in the number of miners, the complexity of creation has increased so much that the time for finding a block by the processor has increased to several years. The only cost-effective way to mine is to use modern high-performance graphics cards, FPGA or ASIC miners with special software and / or join a pool of shared mining. Since CPU mining became essentially useless, the option was removed from the client’s GUI.

Is mining used for any useful calculations?

The calculations performed during mining are internal to the bitcoin network and are not related to any other distributed computing projects. They serve to ensure the security of the bitcoin network, which in itself is useful.

Isn’t that a waste of energy?

The energy spent on creating a free monetary system is hardly a waste. In addition, the services required to operate widespread monetary systems, such as banks and credit card companies, also consume energy, perhaps even more than bitcoin.

Why don’t we use calculations that would be useful for other purposes as well?

To ensure the security of the bitcoin network, calculations must have some very specific features that are incompatible with calculations for other purposes.

How does proof of correct operation help the security of the bitcoin network?

To give a General idea of the mining process, imagine the following:
Payload =
Random number = 1
Hash = SHA2( SHA2 (Payload + Random number) )
The work performed by the miner consists of iterating through random numbers until the hash function is equal to a value that has the rare property of being less than a certain target value. (In other words: the hash “starts with a certain number of zeros”.) As you can see, the mining process itself does not calculate anything special. It just tries to find a random number that-combined with the payload – produces a hash with special properties.
The advantage of using this mechanism is that it is very easy to check the result: given the payload and a specific random number, only one hashing function call is needed to make sure that the hash has the required properties. Since there is no other known way to find a hash other than a simple iteration, this can be used as a “proof of proper operation”, in which someone has invested a huge amount of computing power to find the correct random number for a given payload.
This feature is used in the bitcoin network to provide various aspects. An attacker who wants to inject a malicious payload into the network will need to make the necessary proof of work before it is accepted. And as long as honest miners have the main part of computing power in their hands, they will always be able to get ahead of the attacker.

What happens if two nodes generate a block at the same time?

This rarely happens, and the block will be accepted if the next block is found first.
That is, two nodes send their “winning” blocks simultaneously. Some nodes are the first to learn about the block from the first node (“block A”), others-about the block from the second (“block B”). Each part of the network will continue hashing from this block, trying to generate the next block. If the machine that generates the next block (“block B”) uses block B, then block B will be considered the “winner”, and the nodes that use block A will move to block B. (of course, this may upset the one who generated block a, because block B is the winner). he hoped that he would get coins for this, but his block as a result of the “victory” of block B became incorrect) .

How much can I earn?

Calculate on the calculator. If you don’t know the speed of the device, look at this table.

Technical problem
When trying to launch Bitcoin, the error loading blkindex.dat comes out, how to fight?

This can happen if Bitcoin is shut down incorrectly. Do not forget to make backup copies of the wallet.dat file, as it may well be damaged if the application is terminated in an emergency.

Try the following steps: