Cryptocurrency and Hashing Algorithm with the Highest Mining Profitability

Cryptocurrency and Hashing Algorithm with the Highest Mining Profitability

According to the Whattomine.com the highest profits could be acquired from mining the following cryptocurrencies:

  1. Zclassic(ZCL) – with current profitability of 177 percent and a 7-day profitability of 260 percent
  2. Zcash (ZEC) – with current profitability of 179 percent and a 7-day profitability of 131 percent
  3. Nicehash-Equihash – with current profitability of 150 percent and a 7-day profitability of 115 percent

Ethereum and Decred are also profitable cryptocurrencies at the moment. Mining Ethereum could turn out to be very profitable, as its starting to gain momentum and its likely to increase in value during the next couple of months. You can always use Whattomine.com or Coinwarz.com to calculate the profitability of your mining operations.

Keep in mind that there are more than one way to profit from cryptocurrency mining. You can immediately sell the coins you mine and earn some extra cash, or you can keep them in anticipation of the future increase in value. All of the major digital currencies have growth tendencies, in the long run, so keeping the coins could bring high profits at some point.

Before starting your mining operations, always do some research of your own. Some coins might seem like a profitable investment, but if they don’t have a set of useful features and a strong developers’ community that would allow its market cap to grow – it may be better to keep looking.

In order to understand which coins are profitable, you can find website indexes such as CoinChoose that give you a complete breakdown of the each altcoin. On CoinChoose you can see the difficulty, where can you exchange them and what are the chances to profit in Bitcoins by mining each of those altcoins.

Finally, cryptocurrency mining is a bit risky and it often turns out unprofitable for the miners. Be careful and try not to rush into mining a coin just because it’s currently profitable. Do your research, as the cryptocurrency market is volatile and the mining could end up costing you money.

Hope this answer helps.


Learn more about BOScoin here – BOScoin ICO

Sign up for BOScoin updates here – Get BOScoin Updates

The Difference between Ether and Ethereum

The Difference between Ether and Ethereum

You are buying Ether which could be a token, a portion of the token or tokens from the Ethereum blockchain. A blockchain consists of combined blocks of transactions of issued tokens between addresses.

A token in a blockchain is immutable that is, a token cannot be duplicated, replicated or mutated in any form in which case if it is added from an external source, the network shall decline it as it would fail the proof of work test.

Tokens issued from a blockchain are of no value unless they can be spent ( sent to another account ) that is a token within any economy is useful only as it creates progressive value on being circulated within. In this case, Tokens are said to be burnt if they cannot be spent. Burnt tokens, relatively increase the value of tokens that are available for circulation within the network.

Check Proof of burn

Ethereum plans on employing a proof of stake methodology from a proof of work methodology in validating the previous transactions.

Ethereum employs a proof of stake methodology while mining ( arranging transactions into blocks within the blockchain ) which means that, everybody has an integral portion of the tokens issued by the blockchain or rather everyone holding Ethereum has a stake in the Ethereum Economy.

When one is said to have bought Ethereum, they are said to have a stake in the total number of tokens(Ether) issued by the blockchain similar to how one would own 10% of company X if a person owns 10 of 100 being the total stock issued. Ethereum works in a similar manner to prevent a 51% attack since a person trying to execute this manner of an attack would be required to own 51% of the total Ether issued thus granting them the ability to change the immediate previous transaction if they did make it.

Ethereum does not have a capped limit which implies that your stake within the Ethereum economy is decreasing every single day as the blockchain issues more and more Ether to the network.

Ether is also used as gas while executing smart contracts.

To summarize, You are buying Ether, a stake of the total amount of Ethereum issued and ability to execute a smart contract when you buy Ethereum.

Of course, A lot would depend on the amount of Ether you buy as well for there is a mighty huge difference between the amount of Ether to be in one’s possession to execute a 51% attack and the amount of Ether in the form of gas required to execute a contract.

The Ethereum project does a great job of explaining Ethereum as well.

References:

What’s the difference between proof of stake and proof of work?
What is Ether
The Issuance Model in Ethereum – Ethereum Blog
Proof of burn – Bitcoin Wiki
What is the “Gas” in Ethereum?
Gas and transaction costs


Learn more about BOScoin here – BOScoin ICO

Sign up for BOScoin updates here – Get BOScoin Updates

What Happens if Someone with 100,000 Bitcoins Dies?

What Happens if Someone with 100,000 Bitcoins Dies?

Let’s take note of the variables and constants in this scenario.

  • Amount of Bitcoins in Network (Supply) is Constant since the cap is placed at 21 Million Bitcoins.
  • Demand is a variable.
  • Death of the person having been foretold is a constant.

Let’s reconsider the situation. A person owning a set number of bitcoins dies without revealing his private key to anyone. No one would be able to access the funds in his wallet, hence all the bitcoins present in the deceased person’s wallet cannot be used by anyone else.

The value of the bitcoin would certainly be a lot more than it was whenever the person died since the demand is the only variable in this situation and as the demand increases, the value shall definitely increase.

From a Security Standpoint:

The wallet can be accessed with a private key and a public key together which can be obtained through brute force but this process of obtaining the key would take years altogether.

Rest assured, if a person dies without revealing his private key to anyone, it’d take one longer than the person’s lifetime to actually get the private key of the deceased person through brute force.

If ‘A’ intends to spend the bitcoin from ‘B’ ’s wallet, he needs B’s private key to sign the transaction without which he wouldn’t be able to spend any Bitcoin from B’s wallet.

Brute force is the only possible method by which one can actually spend the bitcoins in the wallet by obtaining the private key and it is an extremely long process to be carried out in reality.

Wallets are encrypted with AES 256 CBC encryption which haven’t been cracked to this date.

If one assumes that:

  • Every person on the planet owns 10 computers.
  • There are 7 billion people on the planet
  • Each of these computers can test 1 Billion key combinations per second
  • On average, you can crack the key after testing 50% of the possibilities.

Then the earth’s population can crack one encryption key in 77,000,000,000,000,000,000,000,000 years!

To answer your question, yes all the bitcoin are completely unusable without the private key. The value within the Bitcoin ecosystem, however, remains the same since all the other bitcoins in the network would relatively increase in value at the same time.

One might even consider looking into a scenario of a burnt Bitcoin where Bitcoins are rendered unusable to add value to another Cryptocurrency.

References:

Wallet encryption
Advanced Encryption Standard – Wikipedia
How secure is AES against brute force attacks? | EE Times
Proof of burn – Bitcoin Wiki
How to destroy bitcoins?


Learn more about BOScoin here – BOScoin ICO

Sign up for BOScoin updates here – Get BOScoin Updates

Which is Safer Coinbase or Kraken?

Which is Safer Coinbase or Kraken?

Well, let’s make a comparison:

Coinbase

Over 97 percent of coins are kept in cold storage. The private keys used for authorization of cold storage transactions are held in fragments between offline hard drives and paper, in different locations with backups in case of losing any pieces.

They offer two-factor authentication for logins and withdrawals and allow customization for maximum daily transaction limit. Passwords are hashed and encrypted.

They offer email notifications and use PGP email encryption.

The exchange hasn’t been hacked in the past.

Kraken

In the aftermath of the Mt. Gox collapse, Kraken was the first company to create a cryptographically verified proof of reserves which shows that the exchange holds 100% of customer funds, as it should. They hold the majority of funds offline in a cold storage. Their servers are held in secure facilities with armed guards, retina scanners, and top-notch video surveillance.

The company has two-factor authentication, PGP encryption for email communication and global setting lock, which prevents any account changes in a certain time period.

So far, Kraken hasn’t been hacked, but there were cases where careless users got their accounts hacked due to lack of 2fa security.

Conclusion

These two exchange platforms offer most robust security in the entire Bitcoin exchange market. In terms of security – your funds would be safe on both of them.

However, when we consider all other aspects – Kraken is a better choice than Coinbase. Coinbase is known for violating users’ privacy, tricking their affiliate associates and taking sides in BTC debates (exchanges should remain neutral). There are numerous complaints online about these issues. So I would go with the Kraken.

Learn more about BOScoin here – BOScoin ICO
Sign up for BOScoin updates here – Get BOScoin Updates

How Mining Cryptocurrencies like Bitcoin Work

How Mining Cryptocurrencies like Bitcoin Work

Bitcoin mining is completely legal, but be careful because authorities in many countries are still not familiar with the technology.

How does Mining Work?

People are sending Bitcoins over the network all the time, but unless someone records all these transactions, nobody would be able to keep track of who made which payment. The Bitcoin network resolved this by collecting all of the transactions made during a certain period into a list, called a block. It’s the miners’ job to verify those transactions and write them into a general ledger called Blockchain.

What is Hashing?

Whenever a new block of transactions is made, it is added to the Blockchain, increasing the lengthy list of all the transactions that ever happened on the network.

But a Blockchain has to be trusted, and all this data is held digitally. How can we be certain that the Blockchain wasn’t tampered with? This is where the cryptocurrency miners come in.

When a block of transactions is made, miners take the information in the block, and apply a public mathematical formula to it, turning it into a set of short letters and numbers. That far shorter, seemingly random sequence of letters and figures is known as a hash. The hash is stored together with the block, at the end of the Blockchain at that point in time.

Miners don’t only utilize the transactions in a block to create a hash. Some other pieces of information are used too. One of those pieces is the hash of the last block saved in the Blockchain.

Because the hash of each block is produced with the hash of the block saved before it, it becomes a digital type of a wax seal. It confirms that that block – and every block after it – is legitimate because if anyone tampered with it, everyone in the network would know.

Competing for Rewards

Miners compete with each other using software written especially for block mining. Every time someone successfully creates a hash, they receive a reward of 12.5 bitcoins, the Blockchain is updated, and everyone on the network is informed about it. That’s the incentive to keep the mining going and keep the transactions working.

The catch is that it’s too easy to produce a hash from a pile of data. Computers are great at this. The network has to make it harder to achieve; otherwise, everyone would be hashing hundreds of transaction blocks every second, and all of the Bitcoins would be mined in a couple of minutes. The Bitcoin protocol deliberately makes it harder, by introducing so-called ‘proof of work.’

The protocol is designed not to accept any old hash. It demands certain things from a block’s hash. There’s no way of knowing what a hash is going to look like before you create it, and as soon as you add a new piece of data in the mix, the hash becomes entirely different.

It can take a significant number of attempts to create a block’s hash that works, and all the miners in the Bitcoin network are trying to do this at the same time. First, one to succeed is rewarded. That’s how miners earn their rewards.

Learn more about BOScoin here – BOScoin ICO
Sign up for BOScoin updates here – Get BOScoin Updates

How to Buy, Sell and Trade Cryptocurrencies like Bitcoin or BOScoin

How to Buy, Sell and Trade Cryptocurrencies like Bitcoin or BOScoin

 

You may obtain Bitcoins by either mining or purchasing them through a legitimate exchange. Mining requires extensive investment into hardware and knowledge about setting up a mining rig. Henceforth, I shall direct towards how one could obtain Bitcoin through an Exchange safely.

There are numerous exchanges that say you could buy and trade bitcoin through their exchanges, but end up scamming majority of the people. It is extremely important that you deal with a legitimate establishment.

One must be able to acquire bitcoin on paying an equivalent amount in local currency after following the company’s respective laws and requirements.
Different countries have different laws that govern distribution, acquisition and regulate bitcoin usage within. You should be able to find if it is legal within your country at Legality of bitcoin by country – Wikipedia.

You would require a wallet nevertheless if you’d like to receive or send Bitcoin.
You should be able to create and operate a wallet amongst the numerous available out there.

We can buy Bitcoin through numerous exchanges available and transfer it to people as long as we know their bitcoin address.

Selling Bitcoin, however you are required to follow certain laws as deemed by the government within your country. Eg: Know Your customer Laws (KYC). It is very well recommended that you do look up laws that govern bitcoin trade within o, you may face serious legal consequences.

Bitcoin Trading requires that you have the wallet address of the person that you’re transferring the bitcoin to for services or products in exchange. Bitcoin traders are required to follow similar laws as one selling Bitcoin and Some countries even require people trading to get registered within their respective countries as well.

It is recommended again to look up and follow laws that govern bitcoin trade and sale within your respective country.

One might even consider safeguarding their private key by making a paper wallet to make it less accessible and to effectively prevent it from being compromised.

Local bitcoins is another platform where one would be able to directly interact with the person they are selling their bitcoin to.

I’ve known Bitcoin & Ethereum Wallet (Coinbase) to be a legitimate Bitcoin exchange that has been known to declare and pay their taxes effectively, but they are known to operate within the United States alone.

You shall be able to find a complete list of Bitcoin exchanges around the world at Top 40+ Bitcoin Exchange Sites inclusive of ratings and a relative trust scores.

References:

Top 40+ Bitcoin Exchange Sites
Bitcoin & Ethereum Wallet
Poloniex – Bitcoin/Cryptocurrency Exchange
Print Offline Tamper-Resistant Addresses
Fastest and easiest way to buy and sell bitcoins
Legality of bitcoin by country – Wikipedia

Learn more about BOScoin here – BOScoin ICO
Sign up for BOScoin updates here – Get BOScoin Updates

Why Cryptocurrencies Bitcoin and BOScoin are Valuable

Why Cryptocurrencies Bitcoin and BOScoin are Valuable

Bitcoin is a type of digital currency. It’s completely decentralized meaning that no one controls it. Bitcoins (BTC) aren’t printed and don’t exist in physical forms like dollars or euros – people produce them by running computers all around the world, using software that solves mathematical problems.

Bitcoin was the first example of money category known as a cryptocurrency. It was created by an anonymous software developer called Satoshi Nakamoto, which aimed to create a currency independent of any central authority, which could be transferred electronically in an instant, with very low transaction fees.

What makes Bitcoin/BOScoin Different from Traditional Currencies?

Bitcoin can be utilized for purchasing things online. In that sense, it’s like common currencies which can also be traded digitally.

However, bitcoin’s most important characteristic is that it is decentralized, unlike typical currencies. No one controls the Bitcoin network. Knowing this fact puts some people at ease because it means that large banks can’t get control their money.

The common currency is based on gold or silver. Bitcoin is not based on gold; it relies solely on mathematics.

All over the world, people are using software that follows a mathematical formula to mine Bitcoins.

The software is open-source, meaning that anyone can look at it to make sure that it does what it is supposed to.

Important Characteristics

Bitcoin has quite a few important features that set it apart from government-backed currencies.

1. Cryptocurrencies are Decentralized

The Bitcoin network isn’t controlled by anyone. Every machine that mines Bitcoin and processes transactions make up a part of the BTC network, meaning that all machines work together. If a part of the network goes offline for any reason, the money keeps on flowing.

2. Cryptocurrencies are Easy to Use

Conventional banks make you jump through hoops just to open a bank account. On the other hand, you can set up a Bitcoin address in seconds, no questions asked, and with zero fees.

3. Cryptocurrencies are Anonymous

Users can own multiple Bitcoin addresses, and they aren’t linked to any names, addresses, or other personally identifying information. However, total anonymity isn’t guaranteed by the network.

4. Cryptocurrencies are Transparent

Bitcoin stores details of every transaction that ever happened in the network in a ledger which is called the blockchain.

If you have a public Bitcoin address, anyone can see how many Bitcoins are stored at that address. However, no one will know that it’s yours.

5. Cryptocurrency Transaction Fees are Small

Your bank typically charges you a $10+ fee for international transfers. Bitcoin doesn’t, you can only pay a small fee if you want to speed up your transfer.

6. Cryptocurrency Transfers are Fast

You can send money anywhere on the planet (and soon in space too), and it will arrive within minutes, as soon as the Bitcoin network confirms the payment.

7. Cryptocurrency are Non-Repudiable

When your Bitcoins are sent, there’s no getting them back, unless the recipient sends them back to you. They are gone forever.

So, Bitcoin has a lot going for it. Hope this answer will help you get a better idea of Bitcoin significance.

Learn more about BOScoin here – BOScoin ICO
Sign up for BOScoin updates here – Get BOScoin Updates